19D - ACCEPT VERIFICATION VOTER INITIATIVE

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Title: Initiative Authorizing Regulated Operation of Medical Marijuana Facilities Summary; The Initiative proposes an ordinance ( "Proposed Ordinance ") amending several provisions of the of the Santa Ana Municipal Code, including Chapter 18, Article R)I, "Medical Marijuana Dispensaries," Chapter 41, "Zoning," and Chapter 21 "BusinessUcenses," to allow Medical Marijuana Collectives ( "MMCs "), as defined in the Proposed Ordinance, to operate in the City of Santa Ana. The stated purpose and intent of the Proposed Ordinance is to be compatible with federal and state enactments, while regulating MMCs so as not to interfere with a qualified patient's right to use medical marijuana as authorized by California. The Proposed Ordinance states that MMCs are prohibited, but actually authorizes them by providing limited immunity from the. prohibition for up to eleven (11) MMCs to operate within the City, if the MMC obtains a certificate of occupancy for a retail and service use, and complies with all operational requirements provided in the Proposed Ordinance, In order to obtain a certificate of occupancy and business license, the MMC must be located; (1) in a zone that allows retail and service uses; (2) 600 feet from a school; and (3) 500 feet from a public park or any other registered MMC. In addition, if the MMC provides delivery of marijuana, the MMC must have insurance for such activity. The City may only issue eleven (11) certificates of occupancy, however, the City Council may increase the number of collectives, without voter approval, in the future. The Proposed Ordinance also creates a priority registration system for the submission of applications for a MMC certificate of occupancy and business license. Beginning thirty (30) days after the effective date of the Proposed Ordinance, MMCs that met certain property, incorporation, permit and license requirements by October 1, 2013, may submit a priority application for a certificate of occupancy and business license. Otherwise, MMCs that were not established by October 1, 2013, but find a location that meets all requirements, may submit an application for a MMC occupancy certificate and business license forty -five (45) days after the effective date of the Proposed Ordinance. The Proposed Ordinance also establishes several operational requirements for MMC's including, but not limited to, the following: limitations on location, exclusion of minors; prohibition of alcohol; restrictions on consumption of marijuana on permitted premises; conducting Live Scan background checks on employees; required security and carneras; and mandatory analysis of products for contaminants. Finally, the Proposed Ordinance amends the City's Business License Ordinance to provide that MMCs pay a business license fee of $50.00 for every $1000.00 in gross sales of medical marijuana. 19D -17