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Irma Macias, shares her opposition to the ordinance and the activities that it pertains to. She feels that the City can gain revenue in other ways. Melahat Rafiei, from the Santa Ana Cannabis Association, inquires about the timeline in the application process, and asks for more time to obtain operational status. She also asks Staff to consider allowing volatile manufacturing. Tamara Bogosian responds to the inquiry about operational status, stating that Staff is considering that a business could be deemed operational when license is granted, for that particular cannabis activity. Robert Cortez further clarifies that the intent is that the application process would start when the ordinance gets its second reading, which would allow sufficient time to approve licenses by January 2, 2018. Chairman Solorio asks Melahat her opinion about whether or not she envisions retail businesses wanting cultivation licenses, to which she suggests Jayson Quinones and Jason Lily provide a response. Jayson Quinones, President of Santa Ana Cannabis Association, states that it is dependent on the size of the location, in determining cultivation. Jason Lilly, of Kannabis Works, adds that 40 would be an ideal amount of distribution licenses, stating that if 20 cultivation and 20 manufacturing licenses are granted, each would need to be distributed. Melahat Rafiei shares her opinion about taxation, stating that if too expensive, the potential for black market activity increases, and asks that consideration be made for determining taxation. Chad Wanke warns that if manufacturing licenses are limited and become maxed out, other cities will potentially take advantage and in tum get the tax revenue. ACTION: Chairman Solorio: Asks Staff to provide more clarity on when applications are due, when considering the timeline of operational status, and amend the labor agreement to apply to businesses with two or more employees. Additionally, Chairman Solorio directs Staff to consider permitting volatile manufacturing. Committee Member Tinajero: Prior to the October 17, 2017 City Council meeting, Committee Member Tinajero asks that research be conducted about volatile manufacturing and be proposed to City Council for consideration. Additionally, Committee Member Tinajero suggests consideration of increasing of the number of distribution licenses, to meet potential demand. 3 13A-23