65A - RPT - REGARDING MEDICAL MARIJUANA INITIATIVE

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ANALYSIS OF SANTA ANA MEDICAL CANNABIS RESTRICTION AND LIMITATION INITIATIVE EXECUTIVE SUMMARY On February 19, 2013 the City Council directed the City Manager to prepare a comprehensive analysis of the Santa Ana Medical Cannabis Restriction and Limitation Initiative. This report was prepared pursuant to California State Elections Code section 9212 and is divided into the following major sections: Introduction and Background, Legal Issues, Planning and Land Use Issues, Police and Code Enforcement Issues, Fiscal Impacts and Election Issues. This initiative measure would require the City to authorize at least twenty-two (22) medical marijuana dispensaries to operate in Santa Ana. The initiative would repeal the City's current ban on such dispensaries and replace it with a ministerial administrative process to govern the operations of medical marijuana collectives or cooperatives, including storefront dispensaries. The initiative imposes a gross receipts business tax on collectives and cooperatives. The initiative requires that dispensaries obtain a Notice of Completed Registration, issued on a first come, first served, basis. The issuance of a Registration is a ministerial process which allows no input from the City regarding location within the authorized zones. This could result in several dispensaries being located within close proximity to one another. Additionally, although applicants are required to provide minimal information regarding their operational and security plans, the initiative does not authorize City input regarding those plans. When an applicant has received a Registration, it is eligible to obtain a certificate of occupancy, also on a ministerial basis. The lack of review authority may result in building and fire safety issues at these locations. The proponents of the initiative presented the City Clerk with a Notice of Intent to Circulate a Petition on July 16, 2012. The City Attorney prepared a Ballot Title and Summary, which the City Clerk delivered to the proponents on July 31, 2012. The petition was then circulated by the proponents for signature. On January 24, 2013 the proponents submitted their petition to the City Clerk who transmitted it to the Orange County Registrar of Voters for signature verification. Based on a random sampling of three percent (3%) of the signatures, the Registrar projected a total of 13,240 signatures were valid, which represents at least 10% of the registered voters in Santa Ana. The Initiative therefore qualifies for the next general election. The Registrar's projection was certified and submitted to the City on February 4, 2013. 65A-5