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Ordinance Amendment No. 2018-02 — Allow Commercial Cannabis Cultivation, Manufacturing, <br />and Distribution Business Activities <br />April 17, 2018 <br />Page 3 <br />is well-positioned for this activity due to the existing retail sector and if cultivation and <br />manufacturing are approved. As a standalone activity, distribution is expected to occupy a <br />handful of industrial buildings; cheaper land values in the Inland Empire and the High Desert <br />regions are expected to attract the largest distribution center license types, which will be <br />permitted by the State in the coming years. <br />Review process <br />The proposed ordinance would allow and regulate commercial cannabis cultivation, <br />manufacturing, and distribution businesses subject to review and approval of a regulatory safety <br />permit (RSP). Similar to the RSP process for commercial cannabis testing laboratories, the <br />Phase 1 and Phase 2 components of the RSP can be submitted concurrently to streamline the <br />review process. Under the proposed ordinance, existing commercial cannabis operators with an <br />approved RSP for retail that are in good standing may apply for a single new RSP for cultivation, <br />manufacturing, or distribution. Further, existing cultivators, manufacturers, and/or distributors with <br />an existing approved RSP that are in good standing could add any combination of cultivation, <br />manufacturing, and/or distribution to their operations by only applying for a single RSP. In any <br />scenario when a new RSP is required to co -locate new uses at an existing facility, the <br />background checks would only be required for new staff, which will reduce processing times. For <br />all co -located facilities, a single RSP would be required annually for renewals. <br />Tahle 1 (Pronosed Amendments to Chanters 8. 18. and Chaoter 40) describes the draft ordinance. <br />Table 1 — Proposed Amendments to Cha ter 18 and Chapter 40 <br />Item <br />Proposed Amendment <br />Impact <br />Allowable uses <br />Amends Chapter 40 and Chapter 18 to <br />Establishes potential for complete commercial <br />allow commercial cannabis cultivation, <br />cannabis supply chain in Santa Ana subject to <br />manufacturing, and distribution activities. <br />operating standards and approval of an RSP. <br />Operating standards <br />Amends Chapter 40 to add operating <br />Ensures safe operations of all commercial <br />standards for all new uses, including <br />cannabis activities in Santa Ana subject to <br />safety, educational tours, odors, and <br />guidelines that may be updated from time to <br />compliance with guidelines on file with <br />time, including odor controls, fire safety, storage <br />OCFA. <br />guidelines, and construction standards. <br />Enforcement <br />Amends Chapter 8 to allow disconnection <br />Enhances code enforcement abilities to address <br />(Chapter 8) <br />of utilities for illegal operators and requires <br />illegal operators or those without a current <br />a certificate of occupancy to remain in <br />certificate of occupancy. <br />compliance with all applicable building <br />codes to ensure life safety. <br />Application process <br />Requires Phase 1 and Phase 2 (RSP) <br />Streamlines the Phase 1 and Phase 2 review <br />(Chapter 40) <br />applications but allows Phase 1 and <br />process, saving approximately 60 days, and <br />Phase 2 applications to be submitted <br />streamlines long-term RSP process for facilities <br />concurrently. Also, requires only a single <br />that co -locate activities, including those with retail <br />RSP for any combination of cultivation, <br />businesses. <br />manufacturing, and distribution activities, <br />and only one RSP if combined with retail <br />activities on an annual renewal basis. <br />75C-3 <br />