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article may submit an application together with a non - refundable processing fee in an amount established by the City Council. Within 60 days after the adoption of this article, the Director shall stop accepting applications and process all applications received. (b) The Director or his or her designee shall determine whether each application demonstrates compliance with this article. Each application that is in compliance with this article shall be placed on the "Qualified Registration Applicant List" and the Director shall notify the applicant in writing that it is a "Qualified Registration Applicant." (c) Once all applications are processed, the Director shall hold an independent selection process ( "lottery") in an open and public location and select 20 applications. The 20 applications chosen through the independent selection process (lottery) will be placed on the "Regulatory Safety Permit ( "RSP ") Eligibility List." Each applicant on the RSP Eligibility List may then choose to file an application for a RSP pursuant to Section 18- 617.2. Applicants identified on the RSP Eligibility List following the February 5, 2015 independent selection process (lottery) must submit a completed RSP application within four (4) months of April 5, 2016 and no later than August 5, 2016. Failure to submit a completed RSP application by that deadline will disqualify the applicant from the RSP Eligibility List and the Waitlist described in subsection (d). (d) Qualified Registration Applicants will appear on the "Qualified Registration Applicant List" in the order that they are selected during the independent selection process (lottery). This list is the Waitlist. The Waitlist will become active if (1) an applicant on the RSP Eligibility List is disqualified from that List; (2) a location appearing on the RSP Eligibility List becomes available; or (3) a location not appearing on the RSP Eligibility List becomes available. A Qualified Registration Applicant's ability to move from the Waitlist to the RSP Eligibility List is determined by the applicant's proposed medical marijuana collective location and the applicant's position on the Waitlist. (e) A Qualified Registration Applicant that moves from the Waitlist to the RSP Eligibility List must submit a completed RSP application within six (6) months following issuance of a written notice advising the applicant of that opportunity. Failure to submit a completed RSP application by that deadline will disqualify the applicant from the RSP Eligibility List and the Waitlist. (f) The Director shall maintain the Waitlist and update it on an annual basis. A Qualified Registration Applicant on that Waitlist must submit a written request each year to maintain its status on the Waitlist. The Director may place new applicants on the Waitlist in the order in which the new registration applications are received. Section 4. Section 18- 617.01 entitled "Cooperative /Collective regulatory safety permit" of Chapter 18 of the Santa Ana Municipal Code is hereby amended to change the numbering of this code section and to add subsection (d) as follows: Ordinance No. NS -2896 Page 2 of 6