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Ordinance Amendment No. 2017-04 — Amending Certain Sections of Chapter 18 (Medical <br />Marijuana Collectives/Cooperatives) and Chapter 21 of the Santa Ana Municipal Code <br />November 7, 2017 <br />Page 2 <br />DESCRIPTION <br />, °l Tatile`JiMPTo os_ed('AmeniimentsltolMeasu[eeBB <br />Item Current Ordinance Proposed Amendment <br />Impact <br />Definitions <br />Contains definitions for a <br />Amend certain definitions to <br />Enables compliance with <br />variety of medical -marijuana <br />comply with State law. <br />State law. <br />terms. <br />Operational standards <br />Contains operational <br />Amends Chapter 18 to <br />Enables compliance with <br />standards to ensure safe <br />ensure compliance with <br />State law. <br />operation such that medical <br />State law. <br />marijuana retail <br />establishments do not <br />negatively impact the <br />surrounding community. <br />Regulatory safety <br />Requires RSP applications <br />Requires RSP applications <br />Transfers review and <br />permit (RSP) process <br />be submitted to the Police <br />be submitted to the Planning <br />approval authority of RSP <br />Department for review and <br />and Building Agency for <br />applications from the Police <br />approval. <br />review and approval. <br />Department to the Planning <br />and Building Agency. <br />Chapter 18 <br />Contains provisions to <br />Amends Chapter 18 to <br />Ensures consistency <br />compliance with State <br />ensure Chapter 18's <br />ensure compliance with <br />between various SAMC <br />law <br />compliance with State law <br />State law and consistency <br />chapters and compliance <br />and consistency with <br />with Chapter 40 (Commercial <br />with State law. <br />Chapter 40 (Commercial <br />Cannabis). <br />Cannabis). <br />Gross receipts tax rate <br />Establishes gross receipts <br />Raises gross receipts tax <br />Ensures adequate revenue <br />tax rate at 5%. <br />rate to 6%. <br />stream due to changes in <br />State laws on taxing medical <br />cannabis. <br />Staff has reviewed the proposed amendments to ensure consistency with other provisions of the <br />Santa Ana Municipal Code, including Chapters 40 (Commercial Cannabis) and 41 (Zoning). <br />The proposed amendments would raise the current gross receipts tax rate for sale of medicinal <br />cannabis by marijuana collectives/cooperatives from 5% to 6%. Adoption of this 1% increase is <br />estimated to generate additional general fund revenue from $300,000 to $500,000 annually. It is <br />recommended that the additional general fund be dedicated to enforcement (one-third), <br />administration (one-third), and community services (one-third). Staff anticipates bringing forward <br />an appropriation adjustment for City Council consideration at a future date. Based on the <br />information and analysis in this report, staff recommends adopting Ordinance Amendment No. <br />2017-04. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, <br />Objective #2 (create new opportunities for business/job growth and encourage private <br />development through new General Plan and Zoning Ordinance policies), Objective #3 (promote a <br />75E-1-2 <br />