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health, safety and welfare of the residents of the City of Santa Ana by establishing regulations necessary for an Adult -Use cannabis retail business to obtain and maintain a Regulatory Safety Permit. Any Adult -Use retail cannabis businesses operating in the City of Santa Ana shall at all times be in compliance with current State Law and this article. All Adult -Use cannabis retail facilities shall operate in accordance with the regulations in this article and with the conditions of approval associated with the applicable zone for the parcel of real property upon which the Adult -Use cannabis retail activities are conducted. Any Adult -Use retail cannabis business shall qualify for and receive a Regulatory Safety Permit from the City of Santa Ana as provided by this article and operate only in a zone in compliance with Santa Ana Municipal Code before commencing with any Adult -Use cannabis retail activity. Any Adult -Use cannabis retail business without a Regulatory Safety Permit is in violation of this article. The regulations in this article, in compliance with the Compassionate Use Act, the Medicinal Marijuana Program Act, SB 94, AB 133, Proposition 64, and the California Health and Safety Code (collectively referred to as "State Law") do not interfere with the right to use cannabis or medicinal cannabis as authorized under State Law, nor do they criminalize the possession of Adult -Use commercial cannabis or medicinal cannabis as authorized under State Law. All other commercial cannabis activities, including but not limited to, cultivation, manufacture, distribution, and testing of cannabis are prohibited and banned in the City of Santa Ana. B. Any person operating a medicinal marijuana collective/cooperative (as defined in Chapter 18 of this Code) as of December 14, 2017, or who has a RSP application pending to operate a medicinal marijuana collective/cooperative, and has met all of the requirements of Chapter 18, shall be allowed to apply for a Regulatory Safety Permit for the sale of Adult -Use cannabis provided that they enter into the Adult - Use Cannabis Retailer Operating Agreement with the City. C. The Adult -Use Cannabis Retailer Operating Agreement shall be a legally binding written agreement between each Adult -Use cannabis retail business operator and the City, executed by the City Manager, or his or her designee, and in a form and substance satisfactory to the Executive Director of Planning and Building and the City Attorney, and containing those provisions necessary to ensure that the requirements of this article are satisfied. Section 40-2. Definitions The definitions are incorporated herein as fully set forth and are applicable to this article. All definitions are intended to comply with those set forth by the State of California for all Adult -Use cannabis retail activities. 1. "Applicant" means a person who is required to file an application for a permit under this article, including an individual owner, managing partner, officer of a corporation, or any other operator, manager, employee, or agent of an Adult -Use cannabis retail business. Ordinance No. NS -2929 Page 3 of 24