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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 20, 2018 <br />TITLE: <br />PUBLIC HEARING — ADOPT ORDINANCE <br />AMENDMENT NO. 2018-01 TO AMEND CERTAIN <br />SECTIONS OF CHAPTERS 40 AND 18 OF THE <br />SANTA ANA MUNICIPAL CODE (COMMERCIAL <br />CANNABIS) TO ALLOW FOR PROFESSIONAL <br />CANNABIS LABORATORY TESTING AND <br />ADOPT RESOLUTION TO MODIFY CANNABIS - <br />RELATED REGISTRATION APPLICATION AND <br />REGULATORY SAFETY PERMIT FEES IN <br />FISCAL YEAR 2017/18 MISCELLANEOUS FEE <br />SCHEDULE <br />(STRATEGIC PLAN NOS. 3,2; 3,3; 3,5; 4,3) <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1't Reading <br />❑ Ordinance on 2M Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />1. Adopt Ordinance Amendment No. 2018-01 to allow for Laboratory Testing. <br />2. Adopt a resolution to modify the adult -use cannabis Registration Application and Regulatory <br />Safety Permit (RSP) application fees for commercial cannabis business activities in the <br />fiscal year 2017/18 Miscellaneous Fee schedule for the Planning and Building Agency. <br />BACKGROUND <br />The California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act <br />(AUMA or Proposition 64), requires that all cannabis processed and sold in the State of California <br />be subject to professional laboratory testing for cannabinoid content, toxins, adulterants, <br />pesticides, potency, and other important elements that affect product safety. Testing must be done <br />at laboratories licensed by the Bureau of Cannabis Control (BCC). Pursuant to various State laws, <br />a cannabis testing laboratory may not hold any other license type, which is intended to ensure <br />neutrality and product safety. <br />Significance of cannabis testing <br />Cannabis testing is a critical component of the commercial cannabis supply chain. Voters in <br />Colorado, a state considered to be an early adopter of commercial cannabis regulations, approved <br />Colorado Amendment 64 in 2012 legalizing adult -use commercial cannabis in their state. Although <br />7513-1 <br />