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Ordinance Amendment No. 2017-03 — Create Chapter 40 in the Santa Ana Municipal Code <br />(Commercial Cannabis Excepting Medicinal Retail) <br />October 17, 2017 <br />Page 4 <br />In addition to the provisions set forth in the Ordinance, Staff will develop administrative <br />procedures for the implementation of the Ordinance as well as for the inspection of new cannabis <br />facilities. This will include special handling procedures for cannabis waste byproduct and proper <br />disposal of hazardous materials to protect public health and safety. <br />Staff recommends the approval of Ordinance Amendment No. 2017-03 to create Chapter 40 <br />75B-4 <br />Permitted Zoning Districts <br />M-1 Light Industrial <br />M-2 Heavy Industrial <br />Cannabis Businesses are prohibited in all other zoning districts. <br />Maximum Number of Permits <br />A maximum number of permits will be issued for the various types of licenses. <br />23 Retail Sale — Adult <br />No cap Testing for quality control purposes — Adult and Medicinal <br />20 Indoor Cultivation —Adult and Medicinal <br />20 Manufacturing <br />20 Distribution <br />It is anticipated that a business may hold permits for multiple uses. <br />Testing facilities cannot hold any other license. <br />20 Medicinal Retail permits to continue under Measure BB <br />Separation Requirements <br />1,000 feet From schools, parks or existing residential zoning districts <br />500 feet Between retail cannabis businesses <br />No separation Between non -retail cannabis businesses <br />Commercial Cannabis Selection <br />Two Phase Selection Process: <br />Process <br />Phase 1 Registration Application. Applications will be reviewed for eligibility. <br />Eligible applications shall be placed on the Regulatory Safety <br />Permit (RSP) Eligibility list. <br />Phase 2 Regulatory Safety Permit (RSP) Application. RSP applications will <br />be evaluated via a merit based system for the issuance of a RSP. <br />Enforcement <br />The ordinance establishes a framework for inspection to ensure the <br />businesses are operating in compliance with state and local laws including: <br />Annual audits <br />Defining inspection and enforcement responsibilities and violations <br />Outlining a process for suspension or revocation of Regulatory Safety <br />Permits. <br />Revenues <br />Commercial Cannabis businesses shall be subject to the following applicable <br />fees: <br />Application Fees — Registration and Regulatory Safety Permit <br />Regulatory Safety Permit Renewal Fees <br />Business License Fee <br />In -Lieu Fees <br />Taxes — Approved by the voters of the City of Santa Ana <br />In addition to the provisions set forth in the Ordinance, Staff will develop administrative <br />procedures for the implementation of the Ordinance as well as for the inspection of new cannabis <br />facilities. This will include special handling procedures for cannabis waste byproduct and proper <br />disposal of hazardous materials to protect public health and safety. <br />Staff recommends the approval of Ordinance Amendment No. 2017-03 to create Chapter 40 <br />75B-4 <br />