Laserfiche WebLink
“Pot Luck”: Santa Ana’s Monopoly on Licensed Retail Adult-Use Cannabis in Orange County <br /> <br />2020-2021 Orange County Grand Jury Page 3 <br /> <br />METHOD OF STUDY <br />The OCGJ conducted extensive internet research on the legal status of Retail Adult-Use <br />Cannabis, both nationwide and in California, by reviewing and analyzing relevant legislation as <br />well as the numerous California propositions that culminated in the passage of Proposition 64. In <br />addition, the OCGJ reviewed City of Santa Ana documents including staff reports, commission <br />reports, Requests for City Council Actions, and ordinances that authorized and established <br />conditions for the sale of cannabis products for Adult-Use. <br />The OCGJ also interviewed current and former Santa Ana City Council members and City <br />employees who work in agencies directly involved with or impacted by the licensing and sale of <br />Retail Adult-Use Cannabis products in Santa Ana. In addition, OCGJ interviewed professional <br />experts not employed by the City, including licensed Retail Adult-Use Cannabis dispensary <br />proprietors and employees. The OCGJ visited several licensed Retail Adult-Use Cannabis <br />dispensaries in Santa Ana to observe the facilities, amenities, staff, clientele, and operations. <br />INVESTIGATION AND ANALYSIS <br />Santa Ana City Council Says “Yes” <br />In response to the November 2016 passage of Proposition 64 in California, the Santa Ana City <br />Council began to consider licensing and regulating the retail sale of cannabis for adults. After <br />multiple meetings and discussions and after thorough staff analysis, on October 17, 2017, the <br />City Council introduced ordinance number NS-2929 for a first reading. The ordinance was <br />identified as “An Ordinance of the City Council of the City of Santa Ana creating Chapter 40 of <br />the Santa Ana Municipal Code, ‘Regulation of Commercial Cannabis’, to Regulate Commercial <br />Cannabis Activities, excepting Medicinal Retail.” <br />On November 9, 2017, the ordinance was introduced for a second reading and approved with <br />amendments by a vote of 5-0 (two City Council members were absent). Santa Ana has remained <br />the only city in Orange County issuing business licenses and regulating the retail sale of Adult- <br />Use Cannabis for the years 2018, 2019, and 2020. <br />Dispensary Application and Licensing Process <br />Santa Ana Ordinance number NS-2929 allows up to 30 Retail Adult-Use Cannabis stores within <br />the City. As of April 15, 2021, there were 23 dispensaries open and operating in the City of <br />Santa Ana (see Appendix 1). The ordinance sets forth operational standards, permit procedures, <br />and an operating agreement to address collection of operating fees. <br />To ensure fairness and impartiality in the selection process, the City devised a system of “Retail <br />Adult-Use Cannabis merit-based criteria and possible points” (see Appendix 2) to evaluate <br />applicants who sought to operate a dispensary offering Adult-Use Cannabis products. This led to <br />the Commercial Cannabis Application (Phase I and Phase II) and Permit Process (see Appendix <br />3), a comprehensive evaluation process that each Retail Adult-Use Cannabis dispensary <br />applicant had to follow and pass before being allowed to open for business.