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Section 3: Article I of Chapter 40 of the Santa Ana Municipal Code is hereby <br />amended to read in full as follows: <br />Chapter 40 <br />ARTICLE 1. REGULATION OF COMMERCIAL CANNABIS ACTIVITIES <br />OTHER THAN MEDICINAL CANNABIS RETAIL ACTIVITIES <br />Section 40-1. Purpose and Intent. <br />A. The purpose and intent of this article is to regulate commercial cannabis <br />business activities, as defined in this article, in order to ensure the health, safety and <br />welfare of the residents of the City of Santa Ana by establishing regulations necessary <br />for commercial cannabis business operating in the City of Santa Ana to obtain and <br />maintain a Regulatory Safety Permit ('RSP"). Any commercial cannabis businesses <br />operating in the City of Santa Ana shall at all times be in compliance with current State <br />Law and this article. All commercial cannabis facilities shall operate in accordance with <br />the regulations in this article and with the conditions of approval associated with the <br />applicable zone for the parcel of real property upon which the commercial cannabis <br />activities are conducted. Any commercial cannabis business shall qualify for and <br />receive a Regulatory Safety Permit from the City of Santa Ana as provided by this <br />article and operate only in a zone in compliance with Santa Ana Municipal Code before <br />commencing with any commercial cannabis business activity. Any commercial cannabis <br />business without a Regulatory Safety Permit is in violation of this article. The regulations <br />in this article, in compliance with the Compassionate Use Act, the Medicinal Marijuana <br />Program Act, SB 94, AB 133, Proposition 64, and the California Health and Safety Code <br />(collectively referred to as "State Law") do not interfere with the right to use adult -use <br />cannabis or medicinal cannabis as authorized under State Law, nor do they criminalize <br />the possession of cannabis as authorized under State Law. All other commercial <br />cannabis activities, including but not limited to, cultivation, manufacture, and distribution <br />are prohibited and banned in the City of Santa Ana. <br />B. Any person operating a medicinal marijuana collective/cooperative (as <br />defined in Chapter 18 of this Code) as of December 14, 2017, or who has a RSP <br />application pending to operate a medicinal collective/cooperative, and has met all of the <br />requirements of Chapter 18, shall be allowed to apply for a Regulatory Safety Permit for <br />the sale of Adult -Use cannabis provided that they enter into the Adult -Use Cannabis <br />Retailer Operating Agreement with the City. <br />C. The Commercial Cannabis Operating Agreement shall be a legally binding <br />written agreement between each commercial cannabis business operator and the City, <br />executed by the City Manager, or his or her designee, and in a form and substance <br />satisfactory to the Executive Director of Planning and Building and the City Attorney, <br />and containing those provisions necessary to ensure that the requirements of this article <br />are satisfied. <br />Section 40-2. Definitions. <br />Ordinance No. NS -2942 <br />Page 3 of 31 <br />