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Ordinance Amendment No. 2018-01 —Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial Cannabis Application Fees February 20, 2018 Page 3 Table 1 — Proposed Amendments to Chapter 18 and Chapter 40 Item Current Ordinances Pro osed Amendment I Impact commercial cannabis Chapter 40 (Commercial chapters and compliance with business activities, including Cannabis). State law. cannabis testing laboratories. The proposed amendments allows cannabis testing laboratories to operate in the City's light and heavy (M-1 and M-2) industrial zoning districts. In addition, these facilities would be subject to the same sensitive land use separation requirements as commercial cannabis retail businesses, which are currently 1,000 feet from schools, parks, or residential areas, but would not be subject to the 500 -foot separation between facilities. All testing laboratories would be required to enter into an operating agreement to ensure sustainable building and business practices, local hiring and sourcing, labor peace agreements, and community/youth benefit plans. In addition to allowing cannabis testing laboratories, the proposed amendment includes minor administrative modifications to the existing ordinance. Finally, staff has reviewed the proposed amendments to ensure consistency with other provisions of the Santa Ana Municipal Code, including chapters 18, 40, and 41 (Zoning). Based on the information and analysis in this report, staff recommends adopting Ordinance Amendment No. 2018-01. Resolution modifying application fees The City of Santa Ana requires that all commercial cannabis retail businesses permitted in Chapter 18 and Chapter 40 submit a Registration Application and a Regulatory Safety Permit (RSP), the latter of which is renewed annually. Currently, the fees may only be collected for applicants seeking to apply for or renew those permits associated with retail businesses. Pursuant to Chapter 40, all applicants for adult -use cannabis retail sales or testing laboratories must also submit a Registration Application and RSP. In order to collect fees for these two applications, the existing fee description must be amended to apply to all commercial cannabis applicants, including testing laboratories. i STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Objective #3 (promote a solutions -based customer focus in all efforts to facilitate development and investment in the community), and Objective #5 (leverage private investment that results in tax base expansion and job creation citywide). Approval of this item also supports the City's efforts to meet Goal #4 - City Financial Stability, Objective #3 (achieve a structurally balanced budget with appropriate reserve levels). 75B-3