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REQUEST FOR <br />COUNCIL ACTION <br />CITY.COUNCIL MEETING DATE: <br />MARCH 20, 2018 <br />TITLE: <br />PUBLIC HEARING — ADOPT URGENCY <br />ORDINANCE ALLOWING COMMERCIAL <br />CANNABIS TESTING LABORATORIES AND <br />ORDINANCE AMENDMENT NO. 2018-01 TO <br />AMEND CERTAIN SECTIONS OF CHAPTERS 40 <br />AND 18 OF THE SANTA ANA MUNICIPAL CODE <br />(COMMERCIAL CANNABIS) TO ALLOW <br />COMMERCIAL CANNABIS LABORATORY <br />TESTING AND ADOPT RESOLUTION TO <br />MODIFY CANNABIS- RELATED REGISTRATION <br />APPLICATION AND REGULATORY SAFETY <br />PERMIT FEES IN FISCAL YEAR 2017/18 <br />MISCELLANEOUS FEE SCHEDULE <br />(STRATEGIC PLAN NOS. 3,2; 3,3; 3,5; 4, 21 <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />�CfTY MANAGER <br />RECOMMENDED ACTION <br />1. Adopt an Urgency Ordinance to permit and regulate Commercial Cannabis Laboratory Testing <br />facilities in the Light and Heavy (M-1 and M-2) Industrial zoning districts. <br />2. Adopt Ordinance Amendment No. 2018-01 to permit and regulate Commercial Cannabis <br />Laboratory Testing facilities in the Light and Heavy (M-1 and M-2) Industrial zoning districts. <br />3. Adopt a resolution to modify the adult -use cannabis Registration Application (Phase 1) and <br />Regulatory Safety Permit (RSP/Phase 2) application fees for commercial cannabis business <br />activities to include cannabis testing facilities in the fiscal year 2017/18 Miscellaneous Fee <br />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 />7513-1 <br />