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CHAPTER 1 <br />INTRODUCTION AND BACKGROUND <br />This chapter will provide an overview of the Santa Ana Medical Cannabis Restriction <br />and Limitation Initiative (the "initiative"), the chronology of events to date regarding the <br />proponent's efforts to qualify the initiative for the ballot, and an analysis of the <br />signatures obtained on the proponent's petition. <br />Overview of Initiative <br />The initiative, if approved, would repeal the City of Santa Ana's prohibition of medical <br />marijuana dispensaries, and replace it with a ministerial administrative process to <br />authorize medical marijuana dispensaries to operate in the City. The initiative requires <br />the City to authorize at least twenty-two (22) medical marijuana dispensaries to operate <br />in Santa Ana. The initiative authorizes the City Council to increase, but not decrease <br />that number, based on a formula of one dispensary for every 15,000 residents. <br />The initiative creates a ministerial administrative process for issuing a "Notice of <br />Completed Registration", allowing a collective or cooperative to provide medical <br />marijuana within the City. The initiative prohibits collectives and cooperatives in <br />residential zones and allows them in the C1, C4, C5, M1 P & C-SM zones, and provides <br />operating standards which collectives and cooperatives must meet. Finally, the initiative <br />imposes a two percent (2%) gross receipts tax on collectives and cooperatives. <br />All of these initiative provisions are discussed in greater detail throughout this report. <br />The full text of the Initiative ordinance can be found in Exhibit 1. <br />Chronology of Events <br />The following provides a summary of the key events that have occurred over the last <br />nine months regarding the Initiative. <br />July 16, 2012 The proponents of the Santa Ana Medical Cannabis Restriction <br />and Limitation Initiative presented the City Clerk with a Request <br />for Ballot Title and Summary and Notice of Intent to Circulate a <br />Petition. <br />July 31, 2012 The Ballot Title and Summary was prepared by the City Attorney <br />and given to the proponents by the City Clerk. <br />August 2, 2012 The Notice of Intent to Circulate was published by the proponents <br />in the Orange County Register. With the publication of the Intent <br />to Circulate, the proponents could commence circulation of the <br />petition. The California Elections Code provides 180 days from <br />the date of receipt of the title and summary by the proponents for <br />circulation of the petition. <br />65A-7