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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />APRIL 5, 2016 <br />TITLE; <br />UPDATE ON THE MEDICAL MARIJUANA <br />REGULATORY PROGRAM AND <br />AMENDMENTS TO ORDINANCE <br />NO. NS -2864 (MEASURE BB) <br />(STRATEGIC PLAN NO. 1; 4; 5) <br />CITY MANAGEA <br />12* i7M&ML11047_[�3�C�7�1 <br />CLERK OF COUNCIL USE ONLY: <br />r'J.T7"d*M� W* <br />❑ <br />As Recommended <br />❑ <br />As Amended <br />Cl <br />Ordinance on 1 ®' Reading <br />❑ <br />Ordinance on 20d Reading <br />❑ <br />Implementing Resolution <br />❑ <br />Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />1. Receive and file an update on the Medical Marijuana Regulatory Program. <br />2. Adopt ordinance amending Chapter 18 of the Santa Ana Municipal Code to remove <br />requirement that security guards be unarmed. <br />3. Adopt ordinance amending Chapter 18 of the Santa Ana Municipal Code to establish <br />deadlines for submitting a regulatory safety permit application and obtaining a Certificate <br />of Occupancy. <br />4. Adopt ordinance amending Chapter 18 of the Santa Ana Municipal Code to prohibit <br />narcotics registrants from obtaining a regulatory safety permit. This will be applicable to all <br />new registration applications received after April 5, 2016. <br />DISCUSSION <br />On November 4, 2014, the voters of the City of Santa Ana approved Measure BB (Ordinance No. <br />NS -2864) to regulate the establishment, operation, and taxation of Medical Marijuana <br />Collectives /Cooperatives. The Measure regulates medical marijuana collectives /cooperatives to <br />provide compassionate access to medical marijuana, and seeks to protect the public's health, <br />safety, and welfare. On February 5, 2015, twenty (20) registered applicants were selected <br />through an independent lottery process to proceed and apply for a Regulatory Safety Permit to <br />operate a medical marijuana collective in specific industrial zones within the City. As of March <br />2016, ten (10) applicants have completed the Regulatory Safety Permit (RSP) process and are <br />currently operating in the City. Six (6) applicants are in various stages of the RSP process, two <br />(2) applicants have contacted the City and expressed an interest in applying in the future, and <br />two (2) applicants have not contacted the City. <br />Approximately $1.7 million in application and permit fees, and tax receipts have funded program <br />costs and enforcement efforts since approval of the Measure. The City expects to collect <br />approximately $710,000 in sales and gross receipt taxes from the ten (10) permitted collectives <br />50A -1 <br />