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with lab testing facilities. Expressed support for a 5% tax rate. Opined lower <br />tax rate would attract businesses, jobs created would be good jobs, and <br />competitive advantage to lower rate to 5%. Directed staff to issue a cease <br />and desist letter orto join the State's efforts in advertising illegal businesses. <br />Councilmember Benavides, asked if there are regulations or guidelines <br />from the State. Expressed support to reduce tax rate to 5%, opined lower <br />tax rate would make City of Santa Ana more competitive, and need to revisit <br />insurance requirements. <br />Mayor Pro Tem Martinez, stated that State requirements are high and <br />necessary steps for existing testing facilities to be notified of State <br />requirements and regulations. Directed staff to mirror State requirements <br />and to notify existing illegal operators of the City Council's action to require <br />a license. Friendly amendment introduced to square footage cost to be 5% <br />or $1.50 p/ sq. ft. <br />Councilmember Tinajero, noted that Cityis one of the few cities that allows <br />industry, need to generate income for the City, and to keep the tax rate 6%. <br />Councilmember Sarmiento, requested that staff address social media sites <br />and weed maps that promote unlicensed operators. <br />City Manager Godinez, noted that report included list of States and current <br />tax rates. <br />MOTION: Adopt an Urgency Ordinance to permit and regulate <br />Commercial Cannabis Laboratory Testing facilities in the Light and <br />Heavy (M-1 and M-2) Industrial zoning districts. (Requires five <br />affirmative votes.) <br />ORDINANCE NO. NS -2941 - AN EMERGENCY ORDINANCE OF THE <br />CITY COUNCIL OF THE CITY OF SANTA ANA PURSUANT TO <br />CHARTER SECTION 415 AMENDING CERTAIN SECTIONS OF <br />CHAPTER 40 TO ALLOW COMMERCIAL CANNABIS TESTING <br />LABORATORIES FOR MEDICINAL AND ADULT -USE PURPOSES AND <br />AMENDING CERTAIN SECTIONS OF ARTICLE XIII OF CHAPTER 18 OF <br />THE SANTA ANA MUNICIPAL CODE PERTAINING TO MEDICINAL <br />MARIJUANA TO ENSURE CONSISTENCY WITH CHAPTER 40 OF THE <br />MUNICIPAL CODE <br />MOTION: Villegas SECOND: Solorio <br />VOTE: AYES: Benavides, Martinez, Solorio, Tinajero, Villegas <br />(5) <br />NOES: None (0) <br />CITY COUNCIL MINUTES 16 MARCH 20, 2018 <br />10A-16 <br />