Item 35 - Ordinance Amendment No. 2022-01 - Commercial Cannabis Regulatory and Tax Updates

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Ordinance No. NS-XXX Page 38 of 73 1. Application Fees. The business owner shall submit a non-refundable fee to cover the cost of processing an application for the commercial cannabis business. These fees may be divided into two (2) fees according to Registration Application Fee (Phase 1) and RSP Application Fee (Phase 2). 2. Regulatory Safety Permit Renewal Fees. The business owner shall submit a non- refundable fee to cover the cost of processing an application renewal annually. 3. Business License Taxes. The business owner shall at all times maintain a current and valid City of Santa Ana business license and shall pay all business license taxes, deposits, charges, fees, deficiencies, penalties, interest, and other associated assessments as may be required pursuant to ordinances of the City of Santa Ana and/or the Santa Ana Municipal Code. 4. Operating Agreement Fees. 5. Additional cannabis-specific gross receipts, excise taxes, or other municipal tax approved by the voters of the City of Santa Ana. 6. All required state taxes including sales and use taxes, business/franchise or income taxes, payroll taxes, etc. 7. All required federal taxes. Section 7. Article XIII of Chapter 18 of the Santa Ana Municipal Code (Medicinal Marijuana Collectives/Cooperatives) is hereby deleted in its entirety, renamed “Reserved,” and re-adopted and amended as Article II of Chapter 40 of the Santa Ana Municipal Code to read as “Regulation of Commercial Cannabis Medicinal Retail Activities” as follows: ARTICLE II. – REGULATION OF COMMERCIAL CANNABIS MEDICINAL RETAIL ACTIVITIES Sec. 40-100. Purposes and intent. It is the purpose and intent of this article to regulate the collective distribution of medical marijuana in order to ensure the health, safety and welfare of the residents of the City of Santa Ana. The regulations in this article, in compliance with the Compassionate Use Act, the Medical Marijuana Program Act, and the California Health and Safety Code (collectively referred to as "State Law") do not interfere with a patient's right to use medical marijuana as authorized under State Law, nor do they criminalize the possession or cultivation of medical marijuana by specifically defined classifications of persons, as authorized under State Law. Under State Law, only qualified patients, persons with identification cards, and primary caregivers may cultivate medical marijuana collectively. Medical marijuana collectives shall comply with all provisions of the Santa Ana Municipal Code ("Code"), State Law, the 2008 California Attorney General Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use, and all other applicable Exhibit 1