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Ordinance No. NS-XXX <br />Page 1 of 2 <br />ORDINANCE NO. NS-XXX <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA , <br />CALIFORNIA, AMENDING ARTICLE XX OF CHAPTER 13 OF THE SANTA ANA <br />MUNICIPAL CODE TO AUTHORIZE DISCRETIONARY ALLOCATIONS BETWEEN <br />YOUTH SERVICES AND ENFORCEMENT SERVICES FROM THE CANNABIS FUND <br />THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS <br />FOLLOWS: <br /> Section 1. Section 13-203 of Article XX of Chapter 13 of the Santa Ana Municipal <br />Code is hereby amended to read as follows: <br />Sec. 13-203. - Cannabis Revenue Funding. <br />A.Automatic Deposit of Cannabis Tax Revenues into the Cannabis <br />Fund. The Cannabis Fund shall be funded by an automatic deposit of two- <br />thirds (2/3) of all cannabis tax revenues generated each year, <br />commencing with the Fiscal Year Budget for 2019-2020 and continuing <br />thereafter in the budget for each Fiscal Year, from all of the following: 1) <br />Operating Agreements for Commercial Cannabis businesses and 2) Any <br />newly adopted Cannabis Business License Tax. For purposes of this <br />subsection, in addition to the descriptions provided directly above in this <br />paragraph, the phrase “cannabis tax revenues” means all revenues <br />generated from any new or increased cannabis tax which has been <br />approved by the voters of the City on or after the effective date of this <br />Chapter and any increase of the cannabis tax authorized by the Santa <br />Ana Municipal Code and approved by the City Council. Tax revenue from <br />Medicinal/Medical Cannabis shall not go into the Cannabis Fund. Funds <br />in the Cannabis Fund shall be carried over from year-to-year. <br />B. Discretionary Deposits into Cannabis Fund not Prohibited. <br />Nothing in this Chapter shall prohibit the City Council, as part of the <br />budgeting process, from contributing additional revenues to the Cannabis <br />Fund, as determined in the City Council’s sound legislative discretion. <br />C. Expenditures from the Cannabis Fund. Funds in the <br />Cannabis Fund shall be restricted to 1) Youth Services: expenditures for <br />new, additional or enhanced, as of the date the Cannabis Fund is created, <br />for Youth Services for City of Santa Ana residents and 2) Enforcement <br />Services: expenditures for Enforcement Services to enforce cannabis <br />regulations and other nuisance laws to improve the quality of life of <br />residents. Specific allocations for Youth Services and Enforcement <br />Services shall be made at the sole discretion of the City Council. <br />EXHIBIT 1