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“Pot Luck”: Santa Ana’s Monopoly on Licensed Retail Adult-Use Cannabis in Orange County <br /> <br />2020-2021 Orange County Grand Jury Page 5 <br /> <br />Building and the City Attorney’s Office, also receive funding because of their role in ensuring <br />Retail Adult-Use Cannabis compliance with regulations. <br />The reality is that shutting down the unlicensed, illegally operating dispensaries will increase <br />business for the licensed facilities, thereby increasing the City’s tax revenues. Closing unlicensed <br />facilities is a win-win for both the licensed dispensaries and the City of Santa Ana. <br />It should be noted that the licensed Retail Adult-Use Cannabis dispensaries must meet the quality <br />standards for their merchandise that comply with requirements set forth by the State of <br />California’s Bureau of Cannabis Control (BCC). Consumers have no such protections when <br />products are purchased from unlicensed shops. <br />Ordinance number NS-2929, Section 1, subparagraph K, states: “The City of Santa Ana has a <br />compelling interest in ensuring that cannabis is not sold in an illicit manner, in protecting the <br />public health, safety, and welfare of its residents and businesses, in preserving the peace and <br />quiet of the neighborhoods in which these businesses may operate, and in providing access of <br />cannabis to residents.” <br />The OCGJ further learned through interviews with both Police Department and Code <br />Enforcement staff that there has been no apparent increase in criminal activity in the areas <br />surrounding the Retail Adult-Use Cannabis dispensaries. It should be noted that all licensed <br />dispensaries are required to have security guards in place during hours of operations, and 24/7 <br />video surveillance protecting their facilities, employees, and customers. Additionally, all <br />dispensaries are required to secure all inventory in a locked safe, unless open for business. <br />Site Visits <br />During its investigation, the OCGJ interviewed cannabis dispensary owners and visited Retail <br />Adult-Use dispensary sites. The OCGJ would like to note that it received full cooperation from <br />the dispensary owners and staff while touring their locations. <br />The dispensary sites the OCGJ visited appeared to be well managed, with clean public areas that <br />were adequately illuminated and well-appointed. The shelves were fully stocked with products. <br />All products were marked with California approval code stamps, indicating that the products <br />conformed to quality control standards approved by the BCC. <br />Sites visited had the required security guards; the OCGJ noted that there were two security <br />guards at each site visited. Each store had 24-hour video surveillance cameras covering the <br />interior and exterior. One of the store owners mentioned that their external video surveillance is <br />so extensive and of such high quality that they were able to assist law enforcement with <br />investigations into criminal activities at nearby properties. Inside, stores were well furnished, had <br />appropriate security doors, and all products were locked up at night in secured structures, vaults, <br />or safes.