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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />SEPTEMBER 19, 2017 <br />TITLE: <br />PUBLIC HEARING — ORDINANCE AMENDMENT <br />NO. 2017-02 TO AMEND CERTAIN SECTIONS <br />OF CHAPTER 18 OF THE SANTA ANA <br />MUNICIPAL CODE (MEDICAL MARIJUANA <br />COLLECTIVES/ COOPERATIVES) — CITY OF <br />SANTA ANA, APPLICANT <br />(STRATEGIC PLAN NOS. 3, 2, 3, 5 <br />0 <br />C MA AGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1 " Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt an ordinance approving Ordinance Amendment No. 2017-02. <br />BACKGROUND <br />On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana Regulatory <br />Program ordinance ("Measure BB") which was codified in sections of chapters 18 and 21 of the <br />Santa Ana Municipal Code (SAMC). Following the adoption of Measure BB, the City established <br />an implementation plan, enforcement program, administrative policies, and best practices. Since <br />then, 16 of the 20 permitted medical marijuana collectives/cooperatives have opened retail <br />dispensaries where medical marijuana is sold. <br />In May 2016, following initial implementation, the City Council amended Chapter 18 to require <br />that applicants identified on the Regulatory Safety Permit (RSP) Eligibility List following the <br />February 5, 2015 independent selection process (lottery) submit a completed RSP application <br />within four (4) months of April 5, 2016. Failure to submit a completed RSP application by that <br />deadline effectively disqualifies the applicant from the RSP Eligibility List and the waitlist. The <br />amendment also established a six (6) -month deadline to submit an RSP for any new <br />collective/cooperative selected from the waitlist after August 5, 2016. <br />As of July 2017, 16 of the 20 selected collectives/cooperatives have opened. The remaining four <br />(4) collectives/cooperatives have submitted the required RSP applications and/or project plans <br />required in order to open. No collective/cooperative from the selected 20 is outstanding as of this <br />writing. To facilitate activation of the waitlist in a timely manner for future entities listed on the <br />waitlist, the City of Santa Ana proposes to amend Chapter 18 to change the deadline to submit <br />an RSP application from six to three months following selection from the waitlist. <br />In addition, on June 5, 2017 the City Council amended Chapter 18 to streamline and clarify <br />administrative procedures, remove certain provisions, and treat collectives/cooperatives like other <br />7513-1 <br />