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Background Framework <br />■ Proliferation of illegal marijuana dispensaries in Santa Ana <br />■ Measure CC qualifies for Santa Ana ballot in Nov. 2014 — would have <br />resulted in further proliferation of marijuana dispensaries with little <br />regulation <br />■ Voters approve City -sponsored Measure BB instead <br />• Establishes framework for legalizing and taxing medical marijuana <br />col lectives/cooperatives <br />• Funds enforcement efforts (Code Enforcement, Police Department, <br />City Attorney's Office) <br />• Reduces number of illegal dispensaries by over 80% <br />• 17 of the 20 permitted collectives/cooperatives now open <br />■ California voters approve Prop. 64- Adult Use of Marijuana Act (AUMA) <br />in Nov. 2016 <br />What is the AUMA? <br />■ The AUMA allows: <br />• Anyone over the age of 21 to possess and use cannabis (age 18 <br />for medicinal cannabis) <br />• Home cultivation of up to 6 mature cannabis plants for personal use <br />■ The AUMA requires: <br />■ Local jurisdictions to adopt ordinances prohibiting or allowing <br />commercial cannabis activities for medicinal, adult, or combined <br />uses <br />■ Retail stores <br />■ Warehousing/distribution <br />■ Manufacturing/processing <br />■ Cultivation <br />■ Quality control testing <br />• January 1, 2018 deadline to comply or risk losing State grants for <br />code enforcement <br />Current Structure <br />■ Chapter 18 — Measure BB <br />• Applies to medicinal cannabis retail stores only <br />■ Chapter 21 — Business Licenses <br />• Taxes on the medicinal cannabis retail stores <br />■ Chapter 40 — Commercial Cannabis <br />• New commercial cannabis ordinance <br />• Covers adult -use cannabis retail stores and all other commercial <br />cannabis activities (medicinal and adult) <br />What have we accomplished? <br />■ Shut down over 90 illegal dispensaries across Santa Ana (over 80%) <br />■ Hired new staff in Code Enforcement, Police, and the City Attorney's <br />Office <br />■ Generated new revenue from gross receipts taxes <br />CITY COUNCIL MINUTES 2 NOVEMBER 9, 2017 <br />10C-2 <br />