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Ordinance No. NS-XXX <br />Page 4 of 73 <br />nor shall it be interpreted, as constituting a new action or decision of the City Council, but <br />rather such provisions are repeated for tracking purposes only in conformance with the <br />Charter. <br />Section 5. The title of Chapter 40 of the Santa Ana Municipal Code is hereby <br />amended to read in its entirety as follows: <br />Chapter 40 - REGULATION OF COMMERCIAL CANNABIS BUSINESS <br />ACTIVITIES OTHER THAN MEDICINAL CANNABIS RETAIL ACTIVITIES <br />Section 6. Article I of Chapter 40 of the Santa Ana Municipal Code is hereby <br />amended to read in its entirety as follows: <br />Sec. 40-1. Purpose and intent, intent, and community benefits required. <br />A.The purpose and intent of this article is to regulate commercial cannabis business <br />activities, as defined in this article, in order to ensure the health, safety and welfare of <br />the residents of the City of Santa Ana by establishing regulations necessary for <br />commercial cannabis business operating in the City of Santa Ana to obtain and <br />maintain a Regulatory Safety Permit ("RSP"). Any commercial cannabis businesses <br />operating in the City of Santa Ana shall at all times be in compliance with current State <br />Law and this article. All commercial cannabis facilities shall operate in accordance <br />with the regulations in this article and with the conditions of approval associated with <br />the applicable zone for the parcel of real property upon which the commercial <br />cannabis activities are conducted. Any commercial cannabis business shall qualify for <br />and receive a Regulatory Safety Permit from the City of Santa Ana as provided by this <br />article and operate only in a zone in compliance with Santa Ana Municipal Code before <br />commencing with any commercial cannabis business activity. Any commercial <br />cannabis business without a Regulatory Safety Permit is in violation of this article. The <br />regulations in this article, in compliance with the Compassionate Use Act, the <br />Medicinal Marijuana Program Act, SB 94, AB 133, Proposition 64, and the California <br />Health and Safety Code (collectively referred to as "State Law") do not interfere with <br />the right to use adult-use cannabis or medicinal cannabis as authorized under State <br />Law, nor do they criminalize the possession of cannabis as authorized under State <br />Law. <br />B.Any person operating a medicinal marijuana collective/cooperative (as defined in <br />Chapter 18 Article II of this Code Chapter) as of December 14, 2017, or who has a <br />RSP application pending to operate a medicinal collective/cooperative, and has met <br />all of the requirements of Chapter 18 Article II, shall be allowed to apply for a <br />Regulatory Safety Permit for the sale of Adult-Use cannabis provided that they enter <br />into the Commercial Cannabis Operating Agreement with the City. <br />C.The Commercial Cannabis Operating Agreement shall be a legally binding written <br />agreement between each commercial cannabis business operator and the City, <br />executed by the City Manager, or his or her designee, and in a form and substance <br />Exhibit 1