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Ordinance Amendment No. 2022-01 - Commercial Cannabis Regulatory and Tax <br />Updates <br />May 3, 2022 <br />Page 8 <br />2 <br />5 <br />0 <br />8 <br />Table 2: Proposed Regulatory Amendments <br />Item Amendment and Impact <br />Updates application selection process for commercial cannabis <br />businesses and addresses consumption lounges. <br />Modifies various sections to remove references to now-defunct Article <br />XIII of Chapter 18. <br />Clarifies and enhances background check requirements for those <br />involved in commercial cannabis businesses in Santa Ana <br />Requires all pending medicinal and adult-use retail locations to submit <br />construction plans by December 31, 2022 and open within 180 days <br />of permit issuance. <br />Among the proposed amendments, the number of permitted retail locations and relocation <br />of pending/selected and existing retailers, termination of the Measure BB Waitlist, <br />changes to the buffer requirements from sensitive land uses, and consumption lounges <br />and temporary events represent substantive changes that are described in further detail <br />in the subsections below. These amendments are intended to address evolution in market <br />conditions for cannabis businesses in Santa Ana and maintain the City’s competitive <br />position in the regional cannabis industry. <br />Number of Permitted Retail Locations, Retail Relocation, and Termination of the Measure <br />BB Waitlist <br />Existing ordinance regulations permit up to 20 medicinal and 30 adult-use cannabis retail <br />locations; however, such facilities may be co-located in a single facility. The proposed <br />amendments would allow an additional five (5) retail locations, for a total of 35 storefronts <br />in the City. If approved, the amendments would allow all 35 retail licenses to sell both <br />medicinal and adult-use cannabis. <br />There are currently 27 operating storefront retailers in the City. Of these, 20 sell medicinal <br />and adult-use cannabis, and 7 sell adult-use only cannabis. In addition, there are 1 <br />pending/selected medicinal-only and 2 pending/selected adult-use retailers. The <br />amendment would incentivize the pending/unopened retailers to open sooner and provide <br />the retailers greater revenue-generating potential through both medicinal and adult-use <br />retail cannabis sales. <br />The amendments would also allow existing and pending/selected retailers to relocate <br />subject to full compliance with all zoning, buffer, and separation requirements from other <br />existing or pending/selected locations. This amendment is intended to address the SR- <br />55 widening project, which will result in physical impacts to at least one retailer, as well <br />as evolving market conditions as the industry matures in Santa Ana. Currently, relocation <br />is prohibited, and those businesses that have relocated have done so pursuant to various <br />agreements with the City. The amendments would standardize the process for all entities