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cooperatives is based on the City's population (1 dispensary per 15,000 <br />residents). The authorized number may be increased by the City Council, but it <br />may not be decreased below twenty-two. <br />3. Establishes the zoning districts in which collectives and cooperatives may be <br />located. <br />4. Provides a ministerial administrative process for applying for and obtaining a <br />"Notice of Completed Registration" which authorizes the applicant to operate a <br />medical marijuana collective or cooperative within the City. <br />5. Provides that a successful applicant, after it obtains a Notice of Completed <br />Registration, may receive a Certificate of Occupancy and a business license on a <br />ministerial basis without complying with special or conditional use requirements, <br />specifically including parking standards. <br />6. Provides for operating standards including security such as lighting and alarms, <br />membership guidelines and record keeping, prohibition on possessing a license <br />from the State Department of Alcohol Control, and signage requirements. <br />7. Prohibits the City, its officers and employees from accepting federal funds to <br />assist in the enforcement of the CSA or to investigate, prosecute, or participate in <br />any task force which investigates or prosecutes offenses that are legal under <br />California medical marijuana laws. <br />Section 4 of the initiative repeals Santa Ana Municipal Code § 41-121, defining "medical <br />marijuana dispensary". <br />Section 5 of the initiative amends Santa Ana Municipal Code § 41-144, to remove the <br />designation of "medical marijuana dispensary" as a land use which is specifically not a <br />retail and service use. <br />Section 6 of the initiative amends Santa Ana Municipal Code § 21-119, to establish an <br />additional gross receipts tax classification for "cannabis business" and imposes a two <br />percent (2%) gross receipts tax on those businesses. <br />If approved, Elections Code Section 9217 provides that the initiative will go into effect <br />10 days after the election results are declared by the governing body. <br />If the City Council adopts the Santa Ana Medical Cannabis Restriction and Limitation <br />Initiative, or in the alternative, submits the initiative to the electorate and it passes, you <br />should be aware of the following legal implications: <br />Issue: Initiative must be consistent with constitutional requirements <br />An initiative is subject to constitutional requirements. The doctrine of equal protection <br />requires that parties similarly situated must be treated alike under the law. However <br />absolute equality is not required. In areas of social and economic policy, not involving a <br />suspect class or fundamental right, the court will uphold the classification as long as <br />there is a reasonably conceivable set of facts that provides a rational basis for the <br />7 <br />65A-13