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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />OCTOBER 17, 2017 <br />TITLE: <br />PUBLIC HEARING — ORDINANCE AMENDMENT <br />NO. 2017-03 TO CREATE CHAPTER 40 IN THE <br />SANTA ANA MUNICIPAL CODE (COMMERCIAL <br />CANNABIS EXCEPTING MEDICINAL RETAIL) <br />(STRATEGIC PLAN NOS. 3, 2, 3, , 4, 3) <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ ordinance on 1s' Reading <br />❑ Ordinance on 2n" Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />/ CONTINUED TO <br />FILE NUMBER <br />ER <br />RECOMMENDED ACTION <br />Adopt an ordinance approving Ordinance Amendment No. 2017-03 creating Chapter 40 in the <br />Santa Ana Municipal Code (Commercial Cannabis Excepting Medicinal Retail). Chapter 40 will <br />regulate adult use retail sales and expand cannabis commercial activities in Santa Ana to include <br />in -door cultivation, distribution, manufacturing and testing. <br />PUBLIC SAFETY, CODE ENFORCEMENT AND NEIGHBORHOOD <br />EMPOWERMENT COUNCIL COMMITTEE <br />At the Special Public Safety, Code Enforcement and Neighborhood Empowerment meeting on <br />October 10, 2017, the Committee approved by a vote of 2-1 the draft Ordinance with the following <br />recommendations: 1) add a provision requiring labor peace agreements for businesses with more <br />than two employees, and 2) staff to further review the use of volatile solvents consistent with current <br />permitted manufacturing activities. <br />BACKGROUND <br />Legislative Framework <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 dispensed. <br />In November 2016, the majority of voters in California (57%) and Orange County and (52%) in <br />Santa Ana approved Proposition -64, the California marijuana legalization initiative, also known as <br />75B-1 <br />