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Ordinance No. NS-XXX <br />Page 6 of 73 <br /> <br /> <br />3. City Option to Satisfy Community Benefits and Sustainable Business Practices. <br />a) A commercial cannabis business may opt to allow the City to satisfy community <br />benefits obligations through execution of an operating agreement in a form to <br />the satisfaction of the City Manager, City Attorney, and Executive Directors of <br />the Planning and Building and Community Development agencies. <br />b) Said operating agreement shall detail the City’s program to provide community <br />benefits supported by the commercial cannabis business’ opting in to <br />reimburse the City through reimbursement of expenses based on a percentage <br />of gross receipts established by the City. <br />c) The operating agreement shall be binding and enforceable, and fully executed <br />prior to issuance of the RSP. All terms shall be satisfied and reviewed on an <br />annual basis as part of the annual RSP renewal process. <br />Sec. 40-2. Definitions. <br />The definitions are incorporated herein as fully set forth and are applicable to this article. <br />All definitions are intended to comply with those set forth by the State of California for all <br />commercial cannabis business activities. <br />1. "Applicant" means a person who is required to file an application for a permit under <br />this article, including an individual owner, managing partner, officer of a corporation, <br />or any other operator, manager, employee, or agent of a commercial cannabis <br />business. <br />2. "Adult-Use" means cannabis or cannabis products that are intended to be used for <br />non-medicinal purposes by a person twenty-one (21) years of age or older. <br />3. "Adult-Use Cannabis Retailer Operating Agreement" or "Operating Agreement" <br />means the agreement entered into by and between the City and the commercial <br />cannabis business operator which will specify terms for local hiring and sourcing, <br />community benefit plans, and fees to compensate for authorized impacts on City <br />services. <br />4. "Adult-Use cannabis retail business" means an Adult-Use retail business that obtains <br />a Regulatory Safety Permit and engages in the delivery or sale of Adult-Use cannabis, <br />or an Adult-Use cannabis product, except as related Business and Professions Code <br />Section 19319, or Health and Safety Code Sections 11362.1 through 11362.45, as <br />amended from time to time, excepting medicinal cannabis retail. <br />5. "Authorized City of Santa Ana representative" means any police officer, city employee, <br />contractor or agent of the city designated by the director of any city department which <br />has the authority and responsibility to enforce provisions as set forth in this article. <br />6. "Business owner" means any of the following: <br />Exhibit 1