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Ordinance Amendment No. 2017-03 — Create Chapter 40 in the Santa Ana Municipal Code (Commercial Cannabis Excepting Medicinal Retail) October 17, 2017 Page 3 In addition, the City met with the Santa Ana Chamber of Commerce, Com -Link Executive Board, Com -Link general meeting, and the Santa Ana Cannabis Association (SACA). Both SACA and the Chamber of Commerce were supportive of additional commercial cannabis activities, although some members of the Chamber of Commerce expressed concerns over the impacts of additional uses on real estate values both positively or negatively. Moreover, Com -Link Executive Board and general meeting members questioned how other cities in Orange County are addressing Proposition 64/commercial cannabis activity, impacts on minors, the potential positive impacts for the local jobs market and additional revenue opportunities. Individuals attending the outreach meetings received an informational flyer prepared by the City. The flyer provided background on Proposition 64, why the City was required to take some action prior to January 1, 2018, the options available for City consideration and related impacts. Further, the flyer provided the name and contact information of Planning & Building staff so the community could directly provide feedback. Additionally, staff prepared a presentation at the Public Safety, Code Enforcement and Neighborhood Empowerment Council Committee meetings on May 9, July 11, October 2 and October 10 to discuss adult use and commercial cannabis. Based on the feedback received from various neighborhood/stakeholder groups and recommendations received from the Public Safety, Code Enforcement and Neighborhood Empowerment Council Committee, staff prepared a draft ordinance that responds to the City and community needs. On October 10th, the Public Safety, Code Enforcement and Neighborhood Empowerment Council Committee approved the draft ordinance with recommendations. The recommendations include: 1) adding a provision requiring labor peace agreements for businesses with more than two employees, and 2) staff to further review the use of volatile solvents consistent with current permitted manufacturing activities. The draft ordinance will create a new chapter (Chapter 40) to regulate adult use (retail) and commercial cannabis. Highlights of the Ordinance are provided in Table 2. Permitted Cannabis Uses Retail Sale — Adult Use Testing for quality control purposes — Adult and Medicinal Indoor Cultivation —Adult and Medicinal Manufacturing Distribution • Medicinal Use Retail Sales will continue to be regulated by Measure BB • All other uses will be regulated through Chapter 40 UsesIOutdoor Cultivation —Adult and Medicir Microbusinesses —Adult and Medicinal 75B-3