HomeMy WebLinkAbout55A - RESO - CERTIFY 2018 ELECTIONREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
DECEMBER 11, 2018
TITLE:
RESOLUTION DECLARING THE
NOVEMBER 6, 2018 GENERAL MUNICIPAL
ELECTION RESULTS - CHARTER
AMENDMENT, MEASURE X, Y, Z AND AA
AND THE ELECTION OF CERTAIN
OFFICERS (STRATEGIC PLAN NO. 5, 1)
CI � / ANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
❑ As Recommended
❑ As Amended
❑ Ordinance on 181 Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Adopt a resolution declaring the results of the General Municipal Election held in the City on
November 6, 2018.
2. Execute Ordinance No. NS -2952 approved by the voters adding Article VII to Chapter 35 of
the Santa Ana Municipal Code related to a transactions and use tax to be administered by
the California Department of tax and fee administration
3. Execute Ordinance No. NS -2962 approved by the voters adding Article XIII to Chapter 21 of
the City of Santa Ana Municipal Code related to a commercial cannabis business license tax
imposed for general municipal purposes, subject to the approval of a majority of the voters
voting at the general municipal election held on November 6, 2018
DISCUSSION
On December 3, 2018 the Orange County Registrar of Voters certified the results of the canvass
of the Santa Ana General Municipal Election returned for Measures X, Y, Z and AA and the
election of certain officers.
Pursuant to State Elections Code Sections 9217, 10263 and 10264, the City Council must adopt
a resolution reciting the fact of the election results as follow: (a) The whole number of votes cast
in the city; (b) The names of the persons voted for; (c) The measures voted upon; (d) For what
office each person was voted for; (e) The number of votes given at each precinct to each person
and for and against each measure; and (f) The number of votes given in the city to each person
and for and against each measure.
55A-1
Certification of the General Municipal Election
December 11, 2018
Page 2
Also on the Results of the Canvass of the General Election Returns are the results of the
election of certain officers. The accompanying Resolution and Certificate of Voters to Result of
the Canvass of the General Election Returns identify the results of the balloting. By adopting the
resolution, the City Council declares elected the following individuals:
• Miguel A. Pulido, Mayor
• David Penaloza, Councilmember Ward 2
• Roman Reyna, Councilmember Ward 4, and
• Cecilia Iglesias, Councilmember Ward 6.
The resolutions placing the Measures on the ballot are also provided as reference and included
as exhibits.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability,
Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement
initiative to expand access to information and create opportunities for stakeholders to play an
active role in discussing public policy and setting priorities).
FISCAL IMPACT
There is no fiscal impact associated with this action.
M ria D. Huizar
Clerk of the Council
Exhibits: 1.
Resolution Certifying Elections
2.
Certificate of Registrar of Voters
3.
Ordinance No.
NS -2952 for Sales Tax Measure (Measure X)
4.
Ordinance No.
NS -2962 for Cannabis Fee (Measure Y)
5.
Resolution No.
2018-058 (Measure X regarding Sales Tax)
6.
Resolution No.
2018-049 (Measure Y regarding Cannabis License Tax)
7
Resolution No.
2018-047 (Measure Z regarding Charter Modernization)
8.
Resolution No.
2018-056 (Measure AA regarding by -Ward Elections)
55A-2
RESOLUTION NO. 2018 -XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA DECLARING THE RESULTS OF THE
GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER
6,201$.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. Pursuant to the Charter of the City of Santa Ana, a general municipal
election was held in the City of Santa Ana on November 6, 2018, to FII the
office of Mayor and offices of members of the City Council nominated from
Wards 2, 4 and 6 of the City, and to consider four (4) measures.
B. The results of the said election, including the whole number of votes cast
in the City, the names of the persons voted for, for what office each
person was voted for, and the number of votes given in the City to each
person, are set forth in the Certificate of Registrar of Voters to Result of
the Canvass of the General Election Returns attached hereto as Exhibit A
and incorporated herein by this reference as though fully set forth.
C. City Charter' Section 406 provides that "[t]he City Council shall be the
judge of the election and qualifications of its members as defined in
section 401 of this charter and shall meet on the first regularly scheduled
meeting after election returns are certified for any municipal election at
which members of the City Council are elected, declare the results
thereof, and installed elected members, if any."
D. The City Council determines in accordance with Section 406 of the City
Charter that Miguel A. Pulido is entitled to hold the office of Mayor. The
City Council also declares Miguel A. Pulido elected to the office of Mayor
of the City of Santa Ana for a two-year term.
E. The City Council determines in accordance with Section 406 of the City
Charter that David Penaloza is entitled to hold the office of
Counci[member for Ward 2. The City Council also declares David
Penaloza elected to the office of Councilmember for Ward 2 of the City of
Santa Ana for a four-year term.
F. The City Council determines in accordance with Section 406 of the City
Charter that Roman Reyna is entitled to hold the office of Councilmember
EXHIBIT 7 Resolution No. 2018 -XXX
Page 1 of 3
55A-3
for Ward 4. The City Council also declares Roman Reyna elected to the
office of Councilmember for Ward 4 of the City of Santa Ana for a four-
yearterm.
G. The City Council determines in accordance with Section 406 of the City
Charter that Cecilia Iglesias is entitled to hold the office of Councilmember
for Ward 6. The City Council also declares Cecilia Iglesias elected to the
office of Councilmember for Ward 6 of the City of Santa Ana for a four-
yearterm.
H. That based upon said results, the following ballot measures shall become
effective after acceptance and filing by the Secretary of State:
• Measure X: Santa Ana Neighborhood Safety, Homeless Prevention
and Essential City Services Enhancement Measure.
• Measure Y: Approve Ordinance Regarding a Marijuana/Commercial
Cannabis Business License Tax
• Measure Z: City Charter Modernization and Update Of Administrative
Provisions
• Measure AA: Require By -Ward Nomination and Election Of
Councilmembers, and Redrawing of Ward Boundaries to Comply with
State And Federal Law
Section 2. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this 11 th day of December, 2018.
APPROVED AS TO FORM:
By: LMC6- X. C5 9�yJ tll u
A Sonia R. Carvalho
City Attorney
Resolution No. 2018 -XXX
Page 2 of 3
Miguel A. Pulido
Mayor
55A-4
AYES Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council do hereby attest to and certify the attached
Resolution No 201 B-)= to be the original resolution adopted by the City Council of the
City of Santa Ana on December 11, 2018.
Date
Clerk of the Council
City of Santa Ana
55A-5
Resolution No. 201 B-)00(
Page 3 of 3
`?
EXHIBIT A
y
CERTIFICATE OF REGISTRAR OF VOTERS TO RESULT
OF THE CANVASS OF THE GENERAL ELECTION RETURNS
STATE OF CALIFORNIA)
)ss.
COUNTY OF ORANGE )
I, Neal Kelley, Registrar of Voters of Orange County, do hereby certify the
following to be a full, true and correct Statement of the Vote of the election listed
below, consolidated with the General Election held on November 6, 2018.
CITY OF SANTA ANA
MAYOR
MIGUEL A. PULIDO
SAL TINAJERO
28,360
27,674
MEMBER OF THE CITY COUNCIL, WARD 2
DAVID PENALOZA
14,549
SANDRA PERA SARMIENTO
10,990
MIGUEL "MIKE" GONZALEZ.
8,610
ALFONSO CEJA-VILLA
7,475
PAUL GONZALEZ
7,472
IRMA MACIAS
4,536
MEMBER OF THE CITY COUNCIL. WARD 4
ROMAN REYNA 29,863
PHIL BACERRA 23,613
MEMBER OF THE CITY COUNCIL, WARD 6
CECILIA "CECT" IGLESIAS
21,077
NELIDA MENDOZA
18,363
MIRNA VELASQUEZ
14,534
MEASURE
YES
33,462
NO
24,542
MEASURE Y
YES
40,753
NO
16,973
MEASURE
YES
37,066
NO
18,224
MEASURE AA
YES
35,027
NO
20,351
EARLY VOTING BALLOTS CAST:
902
PRECINCT BALLOTS CAST:
23,878
VOTE -BY -MAIL BALLOTS CAST:
37,880
TOTAL BALLOTS CAST:
62,660
55A-7
I hereby certify that the number of votes cast for each candidate and
measure is as set forth above and appears in the Certified Statement of the Vote.
WITNESS my hand and Official Seal this 30th day of November, 2018.
55A-8
NEAL KELLEY
Registrar of Voters
Orange County
CERTIFICATE OF REGISTRAR OF VOTERS TO RESULT
OF THE CANVASS OF THE GENERAL ELECTION RETURNS
STATE OF CALIFORNIA)
)ss.
COUNTY OF ORANGE )
I, Neal Kelley, Registrar of Voters of Orange County, do hereby certify the
following to be a full, true and correct Statement of the Vote of the election listed
below, consolidated with the General Election held on November 6, 2018.
CITY OF SANTA ANA
MAYOR
MIGUEL A. PULIDO
SAL TINAJERO
28,360
27,674
MEMBER OF THE CITY COUNCIL WARD 2
DAVID PENALOZA
14,549
SANDRA PENA SARMIENTO
10,990
MIGUEL "MIKE" GONZALEZ
8,610
ALFONSO CEJA-VILLA
7,475
PAUL GONZALEZ
7,472
IRMA MACIAS
4,536
MEMBER OF THE CITY COUNCIL. WARD 4
ROMAN REYNA 29,863
PHIL SACERRA 23,613
MEMBER OF THE CITY COUNCIL, WARD 6
CECILIA "CECT" IGLESIAS
21,077
NELIDA MENDOZA
18,363
MIRNA VELASQUEZ
14,534
MEASURE
YES
33,462
NO
24,542
MEASURE Y
YES
40,753
NO
16,973
MEASURE Z
YES
37,066
NO
18,224
MEASURE AA
YES
35,027
NO
20,351
EARLY VOTING BALLOTS CAST:
902
PRECINCT BALLOTS CAST:
23,878
VOTE -BY -MAIL BALLOTS CAST:
37,880
TOTAL BALLOTS CAST:
62,660
EXHIBIT 2
55A-9
I hereby certify that the number of votes cast for each candidate and
measure is as set forth above and appears in the Certified Statement of the Vote.
WITNESS my hand and Official Seal this 30th day of November, 2018.
55A-10
NEAL KELLEY
Registrar of Voters
Orange County
ORDINANCE NO. NS -2952
AN ORDINANCE OF THE CITY OF SANTA ANA ADDING
ARTICLE VII TO CHAPTER 35 OF THE SANTA ANA
MUNICIPAL CODE RELATED TO A TRANSACTIONS AND
USE TAX TO BE ADMINISTERED BY THE CALIFORNIA
DEPARTMENT OF TAX AND FEE ADMINISTRATION
The City Council of the City of Santa Ana does ordain as follows:
SECTION 1. Authority. The City Council and the Voters of the City of Santa Ana
enact this ordinance in accordance with the authority granted to cities by Article XI,
Section 7 of the California Constitution and Section 7285.9 of the California Revenue and
Taxation Code.
SECTION 2. Addition of article. Article VII is hereby added to Chapter 35 of the
Santa Ana Municipal Code to read as follows:
CHAPTER 35- TAXATION
ARTICLE VII. - TRANSACTIONS AND USE TAX.
Sec. 35-200. - Short title.
This article shall be known as the `Transactions and Use Tax" and shall be
applicable in the incorporated territory of the City of Santa Ana ('city").
Sec. 35-201. - Definitions.
For the purpose of this article the following words terms shall have
the meaning given in this section:
"In the city" means and includes all territory within the city limits.
"Operative Date" means the first day of the first calendar quarter
commencing more than 110 days after the later of the adoption of this
chapter and the approval by the voters of the city of a measure approving
the imposition of an increased transactions and use tax; provided that, if the
city shall not have entered into a contract with the California Department of
Tax and Fee Administration as required by section 35-203. prior to such
date, the operative date shall be the first day of the first calendar quarter
following the execution of such a contract.
Sec. 35-202. - Purpose.
This article of the Santa Ana Municipal Code has been adopted for
the following purposes, and directs that the provisions hereof be interpreted
EXHIBIT 3 Ordinance No. NS -2952
55A-11 Page 1 of 9
in order to accomplish those purposes:
(1) To impose a retail transactions and use tax in accordance with
the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of
the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division
2, which authorizes the city to adopt this tax. This article shall be operative
if a majority of the electors voting on the measure vote to approve the
imposition of the tax at an election called for that purpose.
(2) To adopt a retail transactions and use tax that incorporates
provisions identical to those of the Sales and Use Tax Law of the State of
California insofar as those provisions are not inconsistent with the
requirements and limitations contained in Part 1.6 of Division 2 of the
Revenue and Taxation Code.
(3) To adopt a retail transactions and use tax that imposes a tax
and provides a measure therefor that can be administered and collected by
the California Department of Tax and Fee Administration in a manner that
adapts itself as fully as practicable to, and requires the least possible
deviation from, the existing statutory and administrative procedures
followed by the California Department of Tax and Fee Administration in
administering and collecting the California State Sales and Use Taxes.
(4) To adopt a retail transactions and use tax that can be
administered in a manner that will, to the greatest degree possible, be
consistent with the provisions of Parts 1.6 of Division 2 of the said Revenue
and Taxation Code, and thereby minimize the cost of collecting city
transactions and use taxes, and at the same time minimize the burden of
record keeping upon persons subject to taxation under the provisions
thereof.
Sec. 35-203. - Contract with state.
Prior to the operative date, the city shall contract with the California
Department of Tax and Fee Administration to perform all functions
incidental to the administration and operation of this transactions and use
tax ordinance. If the city has not contracted with the California Department
of Tax and Fee Administration prior to the operative date, it shall
nevertheless so contract and in such a case the operative date shall be the
first day of the first calendar quarter following the execution of such a
contract. The city council may make any technical amendments to this
chapter required by the California Department of Tax and Fee
Administration, except for any changes affecting the tax rate, tax
methodology, or its manner of collection.
Sec. 35-204. - Imposition of transactions and use tax — Rate.
Ordinance No. NS -2952
Page 2 of 9 55A-1 2
For the privilege of selling tangible personal property at retail, a tax
is hereby imposed upon all retailers in the incorporated territory of the city
at the rate of one and one half cents (1.5) of any gross receipts of the retailer
from the sale of all tangible personal property sold at retail in the city on and
after the operative date of this article until March 31, 2029 and then at the
rate of one cent (1) until March 31, 2039.
Sec. 35-205. - Place of sale.
For the purposes of this article, all retail sales are consummated at
the place of business of the retailer, unless the tangible personal property
sold is delivered by the retailer or his agent to an out-of-state destination or
to a common carrier for delivery to an out-of-state destination. The gross
receipts from such sales shall include delivery charges, when such charges
are subject to the state sales and use tax, regardless of the place to which
delivery is made. In the event a retailer has no permanent place of business
in the state or has more than one place of business, the place or places at
which the retail sales are consummated shall be determined under rules
and regulations to be prescribed and adopted by the California Department
of Tax and Fee Administration.
Sec. 35-206.- Imposition of use tax — Use tax rate.
An excise tax is hereby imposed on the storage, use, or other
consumption in the city of tangible personal property purchased from any
retailer on or after the operative date of this article, at the rate of one and
one-half cents (1.5) of the sales price of the property subject to the tax until
March 31, 2029 and then at the rate of one cent (1) of the sales price of the
property subject to the tax until March 31, 2039. The sales price shall
include delivery charges when such charges are subject to state sales or
use tax regardless of the place to which delivery is made.
Sec. 35-207. - Adoption of provisions of state law — Generally.
Except as otherwise provided in the article and except insofar as they
are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue
and Taxation Code, all of the provisions of Part 1 (commencing with § 6001)
of Division 2 of the Revenue and Taxation Code are hereby adopted and
made a part of this article as though fully set forth herein.
Sec. 35-208. - Adoption of provisions of state law — Limitations; Limitations
on collection of use taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and
Taxation Code:
Ordinance No. NS -2952
55A-13 Page 3 of 9
(1) Wherever the State of California is named or referred to as
the taxing agency, the name of this city shall be substituted therefor.
However, the substitution shall not be made when:
(A) The word "State" is used as a part of the title of the
State Controller, State Treasurer, State Board of Control, State Board of
Equalization, State Treasury, or the Constitution of the State of California;
(B) The result of that substitution would require action to
be taken by or against this city or any agency, officer, or employee thereof
rather than by or against the California Department of Tax and Fee
Administration, in performing the functions incident to the administration or
operation of this article.
(C) In those sections, including, but not necessarily limited
to sections referring to the exterior boundaries of the State of California,
where the result of the substitution would be to:
(i) Provide an exemption from this tax with respect
to certain sales, storage, use or other consumption of tangible personal
property which would not otherwise be exempt from this tax while such
sales, storage, use or other consumption remain subject to tax by the state
under the provisions of Part 1 of Division 2 of the Revenue and Taxation
Code, or;
(ii) Impose this tax with respect to certain sales,
storage, use or other consumption of tangible personal property which
would not be subject to tax by the state under the said provision of that
code.
(D) In Sections 6701, 6702 (except in the last sentence
thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation
Code.
(2) The word 'city" shall be substituted for the word "State" in the
phrase 'retailer engaged in business in this State" in Section 6203 and in
the definition of that phrase in Section 6203.
Sec. 35-209. - Permit not required.
If a sellers permit has been issued to a retailer under Section 6067
of the Revenue and Taxation Code, an additional transactor's permit shall
not be required by this article.
Sec. 35-210. - Exemptions and exclusions.
(1) Measure of Tax. There shall be excluded from the measure
of the transactions and use tax the amount of any sales tax or use tax
Ordinance No. NS -2952
Page 4 of 9 55A-14
imposed by the State of California or by any city, city and county, or county
pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the
amount of any state -administered transactions or use tax.
(2) Transactions Tax Exemptions. There are exempted from the
computation of the amount of transactions tax the gross receipts from:
(A) Sales of tangible personal property, other than fuel or
petroleum products, to operators of aircraft to be used or consumed
principally outside the county in which the sale is made and directly and
exclusively in the use of such aircraft as common carriers of persons or
property under the authority of the laws of this State, the United States, or
any foreign government.
(B) Sales of property to be used outside the city which is
shipped to a point outside the city, pursuant to the contract of sale, by
delivery to such point by the retailer or his agent, or by delivery by the
retailer to a carrier for shipment to a consignee at such point. For the
purposes of this paragraph, delivery to a point outside the city shall be
satisfied:
(i) With respect to vehicles (other than commercial
vehicles) subject to registration pursuant to Chapter 1 (commencing with
Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in
compliance with Section 21411 of the Public Utilities Code, and
undocumented vessels registered under Division 3.5 (commencing with
Section 9840) of the Vehicle Code by registration to an out -of -city address
and by a declaration under penalty of perjury, signed by the buyer, stating
that such address is, in fact, his or her principal place of residence; and
(ii) With respect 'to commercial vehicles, by
registration to a place of business out -of -city and declaration under penalty
of perjury, signed by the buyer, that the vehicle will be operated from that
address.
(C) The sale of tangible personal property if the seller is
obligated to furnish the property for a fixed price pursuant to a contract
entered into prior to the operative date.
(D) A lease of tangible personal property which is a continuing
sale of such property, for any period of time for which the lessor is obligated
to lease the property for an amount fixed by the lease prior to the operative
date.
For the purposes of subsections (2)(C) and (2)(D) of this section, the
sale or lease of tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for which
Ordinance No. NS -2952
55A-15 Page 5 of 9
any party to the contract or lease has the unconditional right to terminate
the contract or lease upon notice, whether or not such right is exercised.
(3) Use Tax Exemptions. There are exempted from the use tax
imposed by this chapter, the storage, use or other consumption in this city
of tangible personal property:
(A) The gross receipts from the sale of which have been
subject to a transactions tax under any state -administered transactions and
use tax ordinance.
(B) Other than fuel or petroleum products purchased by
operators of aircraft and used or consumed by such operators directly and
exclusively in the use of such aircraft as common carriers of persons or
property for hire or compensation under a certificate of public convenience
and necessity issued pursuant to the laws of this State, the United States,
or any foreign government. This exemption is in addition to the exemptions
provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code
of the State of California.
(C) If the purchaser is obligated to purchase the property
for a fixed price pursuant to a contract entered into prior to the operative
date.
(D) If the possession of, or the exercise of any right or
power over, the tangible personal property arises under a lease which is a
continuing purchase of such property for any period of time for which the
lessee is obligated to lease the property for an amount fixed by a lease prior
to the operative date.
For the purposes of subsections (3)(C) and (3)(D) of this section, storage,
use, or other consumption, or possession of, or exercise of any right or
power over, tangible personal property shall be deemed not to be obligated
pursuant to a contract or lease for any period of time for which any party to
the contract or lease has the unconditional right to terminate the contract or
lease upon notice, whether or not such right is exercised.
(4) Exemption from Collection of Use Tax. Except as provided in
subsection (5), a retailer engaged in business in the city shall not be
required to collect use tax from the purchaser of tangible personal property,
unless the retailer ships or delivers the property into the city or participates
within the city in making the sale of the property, including, but not limited
to, soliciting or receiving the order, either directly or indirectly, at a place of
business of the retailer in the city or through any representative, agent,
canvasser, solicitor, subsidiary, or person in the city under the authority of
the retailer.
Ordinance No. NS -2952
Page 6 of 9 55A-16
(5) Retailer Not Exempt from Collection of Use Tax. "A retailer
engaged in business in the city' shall also include any retailer of any of the
following: vehicles subject to registration pursuant to Chapter 1
(commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft
licensed in compliance with Section 21411 of the Public Utilities Code, or
undocumented vessels registered under Division 3.5 (commencing with
Section 9840) of the Vehicle Code. That retailer shall be required to collect
use tax from any purchaser who registers or licenses the vehicle, vessel, or
aircraft at an address in the city.
(6) Credit Against Use Tax for Transactions Tax Paid Elsewhere.
Any person subject to use tax under this chapter may credit against that tax
any transactions tax or reimbursement for transactions tax paid to a district
imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of
Division 2 of the Revenue and Taxation Code with respect to the sale to the
person of the property the storage, use or other consumption of which is
subject to the use tax.
Sec. 35-211. - Adoption of amendments to state law.
All amendments subsequent to the effective date of this chapter to
Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and
use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of
Division 2 of the Revenue and Taxation Code, and all amendments to Part
1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall
automatically become a part of this article, provided however, that no such
amendment shall operate so as to affect the rate of tax imposed by this
article.
Sec. 35-212. - Enjoining collection prohibited.
No injunction or writ of mandate or other legal or equitable process
shall issue in any suit, action, or proceeding in any court against the State
or the city, or against any officer of the State or the city, to prevent or enjoin
the collection hereunder, or Parts 1.6 of Division 2 of the Revenue and
Taxation Code, of any tax or any amount of tax required to be collected.
Sec. 35-213. — Termination.
The authority set forth in this Article VII to impose a retail transactions
and use tax shall continue until March 31. 2039.
Sec. 35-214. - Oversight committee.
The City Council shall, by resolution establish as citizen oversight
committee to act in an advisory role to the City Council in reviewing the annual
revenue and expenditures of funds from the tax authorized by this article. The
Ordinance No. NS -2952
55A-17 Page 7 of 9
resolution shall establish the committee members' terms, qualifications and duties,
and the committee's scope of authority.
Sec. 35-215. - Annual Audit.
An annual audit of the revenue generated by the sales and use tax and the
expenditures made will be conducted by an independent certified public
accountant.
Sec. 35-216. - Annual Expenditures Disclosure.
The City of Santa Ana will publically disclose on an annual basis a list of
expenditures made with sales and use tax monies for the preceding fiscal year.
Sec. 35-217. — Sunset Provision.
On March 31, 2029, the rate of one and one half cents (1.5) will be reduced
to one cent (1) until March 31, 2039 for a total of twenty (20) years.
SECTION 3. Effective Date. Pursuant to the California Constitution Article
XIIIC(2)(b) and California Elections Code 9217, if the requisite number of qualified voters
voting in the election on Measure " " vote in favor of the adoption of such measure,
this ordinance shall be deemed valid and binding and shall be considered adopted upon
the date that the vote is declared by the City Council, and shall go into effect ten (10) days
after that date.
SECTION 4. Severability. If any section, sentence, clause or phrase of this
ordinance is for any reason held to be invalid or unconstitutional by a decision of a court
of competent jurisdiction, such decision shall not affect the validity of the remaining
provisions of this Ordinance. The People of the City of Santa Ana hereby declare that
they would have adopted this Ordinance irrespective of the invalidity of any particular
portion thereof and intends that the invalid portions should be severed and the balance
of the Ordinance be enforced.
SECTION 5. Certification/Summary. Following the City Clerk's certification
that the citizens of Santa Ana have approved this Ordinance, the Mayor shall sign this
Ordinance and the City Clerk shall cause the same to be entered in the book or original
ordinance of said City; and shall cause the same, or a summary thereof, to be published
as required by law.
PASSED, APPROVED, and ADOPTED by the People of the City of Santa Ana this
6'h day of November, 2018.
Miguel A. Pulido
Mayor
Ordinance No. NS -2952
Page 8 of 9 55A-18
ATTEST:
Maria D. Huizar
City Clerk
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
Ordinance No. NS -2952
55A-19 Page 9 of 9
55A-20
ORDINANCE NO. NS -2962
AN ORDINANCE OF THE CITY OF SANTA ANA CITY
COUNCIL ADDING ARTICLE XIII TO CHAPTER 21 OF THE
CITY OF SANTA ANA MUNICIPAL CODE RELATED TO A
COMMERCIAL CANNABIS BUSINESS LICENSE TAX
IMPOSED FOR GENERAL MUNICIPAL PURPOSES,
SUBJECT TO THE APPROVAL OF A MAJORITY OF THE
VOTERS VOTING AT THE GENERAL MUNICIPAL
ELECTION HELD ON NOVEMBER 6, 2018
WHEREAS, in November 2016, the California Marijuana Legalization Initiative,
also known as the Adult Use of Marijuana Act (AUMA or Proposition 64) was approved
by the
voters of the State of California. The AUMA legalized recreational marijuana.
WHEREAS, in 2017, the Governor signed into law Senate Bill 94 also known as
Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA) establishing
state regulations and licensing for retail sales, manufacturing, distribution, delivery and
testing of adult -use (also called recreational) marijuana.
WHEREAS, on November 9, 2017, the City Council created Chapter 40 of the
Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in
the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal
Code to ensure consistency with State law and Chapter 40. Since 2014, the City has
allowed medicinal marijuana collectives/cooperatives to operate within the City pursuant
to regulations set forth in Chapter 18 and Chapter 21 of the Santa Ana Municipal Code.
WHEREAS, on March 20, 2018, the City Council adopted Ordinance NS -2941 and
NS -2942, allowing and regulating commercial cannabis testing laboratories.
WHEREAS, on May 1, 2018, the City Council adopted Ordinance NS -2944
allowing and regulating commercial cannabis manufacturing, distribution, and cultivation.
WHEREAS, a general business license tax based on the gross receipts derived
from commercial cannabis businesses and gross square footage would generate
essential funds for protecting vital City services and facilities and place such businesses
on more equal footing with existing City businesses, including medical marijuana
businesses which already pay a business license tax; and
WHEREAS, the City Council is authorized to impose general and special taxes in
order to fund municipal services and facilities, subject to requisite voter approval as set
forth in Government Code section 53720.
NOW, THEREFORE, the City of Santa Ana City Council does hereby ordain as
follows:
EXHIBIT 4
Ordinance No. NS -2962
Page 1 of 10 55A-21
SECTION 1. Recitals. The above recitals are hereby found to be true and
accurate and are incorporated into this Ordinance by this reference.
SECTION 2. Amendment. Article XIII is hereby added to Chapter 21 of the City
of Santa Ana Municipal Code to read in full as set forth in Exhibit A-1, attached hereto
and incorporated by reference.
SECTION 3. Voter Approval. Article XIII as added to Chapter 21 of the Santa Ana
Municipal Code by this proposed Ordinance shall impose a general tax as defined by
Government Code section 53723, and therefore must be approved by a majority of voters
voting in an election on the tax. Approval of this Ordinance is therefore subject to and
conditioned upon the approval by the voters of the imposition of the general tax imposed
by this Ordinance. If a majority of the voters voting in the election do not vote in favor of
the imposition of the tax, this ordinance shall not take effect.
SECTION 4. Severability. If any provision of this Ordinance or the application
thereof to any person or circumstances is held invalid, such invalidity shall not affect other
provisions of applications of the Ordinance that can be given effect without the invalid
provision or application, and to this end the provisions of this Ordinance are severable.
This City Council hereby declares that it would have adopted this Ordinance irrespective
of the invalidity of any particular portion thereof and intends that the invalid portions should
be severed and the balance of the Ordinance be enforced.
SECTION 5. Effective Date. After its adoption by the voters, this Ordinance shall
be in full force and effect ten (10) days after the vote is declared by the legislative body,
pursuant to the provisions of Elections Code sections 9217 and 15400 and as provided
by law.
PASSED, APPROVED, and ADOPTED by the People of the City of Santa Ana this
6th day of November, 2018.
ATTEST:
Maria D. Huizar
Clerk of Council
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
Miguel A. Pulido
Mayor
Ordinance No. NS -2962
55A-22 Page 2 of 10
EXHIBIT A-1
ARTICLE XIII. COMMERCIAL CANNABIS BUSINESSES
Sec. 21-132. Purpose.
This article is required for the purpose of fixing the rate of taxation for commercial
cannabis businesses including delivery, distribution, manufacturing, cultivation, testing
and retail sales of cannabis and related products. This article does not apply to medical
marijuana collectives/cooperatives (also referred to as medicinal cannabis retail
businesses) which are subject to a business license tax under article XII of this chapter.
The taxes required to be paid under this article are declared to be required pursuant to
the taxing power of the City of Santa Ana solely for the purpose of obtaining revenue and
are not regulatory permit fees.
Sec. 21-133. Commercial cannabis businesses—Annual business license tax
assessment.
Every person engaged in a 'commercial cannabis business" or "commercial
cannabis activity" shall pay an annual business license tax as outlined below. This article
shall not apply to medical marijuana cooperatives/collectives also referred to as medicinal
cannabis retail businesses which are governed by article XII of this chapter or to personal
cultivation as defined in section 18-611(n) of this code.
(a) For each branch establishment or separate property location of a commercial
cannabis business transacted and carried on in the city, and for each separate type
of commercial cannabis business conducted at the same location, the higher of the
two (2) following tax rates shall be due to the city for each monthly reporting period:
(1) Up to ten percent (10%) of each dollar of gross receipts received or
generated for each monthly reporting period.
(2) Up to $35.00 per square foot (annual tax rate) prorated monthly to one -
twelfth (1/12th) of the annual tax rate amount.
(b) These tax rates shall not be adjusted for inflation pursuant to section 21-121 of this
chapter.
(c) Notwithstanding the tax rates imposed herein under subsection (a), the city council
may, in its discretion, at any time by resolution implement any lower tax rate it deems
appropriate, and may by resolution increase such tax rate from time to time, not to
exceed the maximum rates established by subsection (a).
(d) As of the operative date of this article, the business license gross receipts tax rates
and square footage tax rates application to specific commercial cannabis business
activities shall be established as follows:
Commercial Cannabis Business
Gross Receipts
Gross Square
Activity
Tax Rate
Footage Tax Rate
Adult -use Cannabis Retail
8%
$ 25.00
Business (including Delivery)
Cultivation
6%
$ 10.00
Ordinance No. NS -2962
Page 3 of 10 55A-23
Commercial Cannabis Business
Gross Receipts
Gross Square
Activity
Tax Rate
Footage Tax Rate
Distribution
6%
$ 4.00
Manufacturing
6%
$ 10.00
Testing Facility or Testing
5%
$ 1.50
Laboratory
Commercial cannabis businesses not having a fixed place of business within the city
but conducting regular, non -incidental commercial cannabis business activities
within the city shall be subject to the gross receipts tax rate(s) as set out in the table
above based on the category/categories of commercial cannabis activity conducted.
However, such out-of-town commercial cannabis businesses shall not be subject to
any gross square footage tax rate(s).
(e) As part of the annual gross receipts/square footage tax(es) imposed by this article,
each commercial cannabis business located within the city shall pay a minimum
basic rate of two thousand dollars ($2,000.00) annually for each branch
establishment or separate property location of the commercial cannabis business
transacted and carried on in the city, and for each separate type of commercial
cannabis business conducted at the same location. Commercial cannabis
businesses having no fixed place of business within the city shall be exempted from
this requirement.
(f) In the event the city should in the future permit additional categories of commercial
cannabis business activity, as may from time to time be licensed by the State of
California, such categories of commercial cannabis activities shall be subject to the
same maximum tax rates as imposed herein. The city may by ordinance of the city
council initially set the required gross receipts/gross square footage tax rates based
on category of cannabis business activity at lesser rates as may be deemed
appropriate by the city council.
(g) For purposes of this article, a commercial cannabis business is not considered to be
a business or person having a "specified exemption" or "specified exclusion" from
business license taxation as set forth in sections 21-48 and 21-49 of this chapter.
(h) For purposes of this article any person claiming an exemption from the gross
receipts tax rate component of the combined gross receipts/square footage tax
imposed under this article on the basis of a claim of being a qualified "nonprofit
organization" shall have the burden of substantiating their claim to the same extent
and in the same manner as a marijuana collective/cooperative in accordance with
section 21-127(a)(6) of this chapter.
(i) Cannabis businesses shall not pass the taxes imposed by this article through to an
adult -use cannabis retail business customer or commercial cannabis business
customer in any fashion except as part of the basic product sales and/or service
price.
Q) Definitions. For purposes of this article, the following terms have the following
meanings:
Ordinance No. NS -2962
55A-24 Page 4 of 10
(1) "Adult -Use cannabis retail business" as defined in section 40-2(4) of this
code.
(2) "Commercial Cannabis Activity as defined in section 40-2(9) of this code.
(3) "Commercial cannabis business" as defined in section 40-2(10) of this
code excluding medical marijuana collectives/cooperatives also referred
to as medicinal cannabis retail sales.
(4) "Cultivation" as defined in section 40-2(11) of this code.
(5) "Delivery' as defined in section 40-2(13) of this code.
(6) "Distribution" as defined in section 40-2(16) of this code.
(7) "Gross receipts" — section 21-3 of this chapter notwithstanding, "gross
receipts" for the purposes of this article shall mean:
(A) Transfer of title or possession, exchange or barter, conditional or
otherwise, in any manner or by any means whatsoever, of tangible
personal property for a consideration including any monetary
consideration for cannabis, including, but not limited to, membership
dues, reimbursements provided by members, regardless of form, or
the total amount of cash or in-kind contributions, including all
operating costs related to the growth, cultivation, manufacturing,
distribution, testing, or provision of cannabis or any transaction
related thereto.
(B) Anything else of value obtained by an a cannabis business;
(C) The total amount of the sale price of all sales and services;
(D) The total amount charged or received for the performance of any act,
service or employment of whatever nature it may be, whether or not
such service, act or employment is done as a part of or in connection
with the sale of goods, wares, or merchandise (whether at wholesale
or retail), for which a charge is made or credit allowed, including all
refunds, cash credits and properties of any amount or nature;
(E) Any amount for which credit is allowed by the seller to the purchaser
without any deduction therefrom, on account of the cost of the
property sold, the cost of materials used, the labor or service cost,
interest paid or payable, losses, or any other expense whatsoever;
provided that cash discounts allowed or payment on sales shall not
be included;
(F) The amount of any federal manufacturer's or importer's excise tax
included in the price of property sold, even though the manufacturer
or importer is also the retailer thereof and whether or not the amount
of such tax is stated as a separate charge.
(G) The amount of any California state cannabis excise tax or state
cannabis cultivation tax regardless of whether or not the amount of
such excise tax or cultivation tax is included in the price of the
product or stated to customers as a separate charge,
(H) "Gross receipts" shall not include the following:
i. The amount of any federal tax imposed on or with respect to retail
or wholesale sales or the sale of services whether imposed upon
the cannabis business or the consumer whenever the amount of
federal tax is authorized by law to be stated and passed through
to customers as a separate charge.
Ordinance No. NS -2962
Page 5 of 10 55A-25
ii. Any California state, county, or city sales or use tax, including any
add-on, district, or transaction and use tax, required by law to be
included in or added to the purchase price and collected from the
consumer or purchaser, or such part of the sales price of any
property previously sold and returned by the purchaser to the
seller which is refunded by the seller by way of cash or credit
allowances given or taken as part payment on any property so
accepted for resale; or
iii. The amount of the sale price of business personal property (all
property owned or leased by a cannabis business operator used
in the operation cannabis business activities, including but not
limited to: furniture, fixtures, and business equipment); real
property, including land, buildings and other improvements.
iv. The amount of equity contributions, investments, and/or loan
proceeds to cannabis business' operation, and/or proceeds from
the sale or transfer of cannabis business' retail or commercial
cannabis business.
(1) "Gross receipts" shall be calculated without any deduction on
account of any of the following:
I. The cost of tangible or intangible property sold or bartered;
ii. The cost of materials or products used, labor or service cost,
interest paid, losses, or other expense;
iii. The cost of transportation of cannabis, or other property or
product;
iv. The amount of anyfederal or state income orfranchise taxes; and
v. Any other business costs or expenses, unless otherwise
specifically exempted.
(8) "Manufacturing" as defined in section 40-2(22) of this code.
(9) "Retail businesses" as defined in section 40-2(40) of this code.
(10) "Gross Square foot" or "gross square footage" for the purposes of this
article shall mean:
(A) The gross number of square feet comprising a commercial cannabis
business' property location (as confirmed by the corresponding
"approved building set" or "approved certificate of occupancy' on file
with the City of Santa Ana Planning and Building Agency) whichever
is the greater of any square footage indicated.
(B) In the case of commercial cannabis businesses licensed by the state
to engage in cultivation "gross square foot" or "gross square footage"
shall mean the aggregate sum of the number of square feet
comprising all areas of the premises under "canopy", whether such
sum is greater or lesser than the gross square footage as stated in
the "approved building set" or "approved certificate of occupancy'.
"Canopy," shall mean the designated area(s) of a premise that will
contain mature plants at any point in time. Canopy shall be calculated
in square feet and measured using clearly identifiable boundaries of
all area(s) that will contain mature plants at any point in time,
including all of the space(s) within the boundaries. Canopy may be
noncontiguous, but each unique area included in the total canopy
Ordinance No. NS -2962
55A-26 Page 6 of 10
calculation shall be separated by an identifiable boundary which
includes interiorwalls, shelves, greenhouse walls, hoop house walls,
garden benches, hedgerows, fencing, garden beds, or garden plots;
and if mature plants are being cultivated using a shelving system, the
surface area of each level shall be included in the total canopy
calculation.
(11) "Testing Facility" or "Testing Laboratory" as defined in section 40-2(44) of
this code.
(12) "Wholesale" as defined in section 40-(46) of this code.
(k) Modification, repeal or amendment. The city council may repeal the ordinance
codified in this article, or amend it in a manner which does not result in an increase
in the tax or taxes imposed herein, without further voter approval. The city council
may likewise by ordinance adopt and add additional provisions to any other article
of this chapter and relate them to this article, or amend any existing provisions of
any article of this chapter as they may already relate to this article in any manner
which does not result in an increase in the tax or taxes imposed herein, without
further voter approval. If the city council repeals said ordinance or any provision of
this article, it may subsequently reenact it without voter approval, as long as the
reenacted ordinance or section does not result in an increase in the tax or taxes
imposed herein.
(1) Administration—Rules, regulations and guidelines. In order to aid in the city's
collection of taxes due under this article and to ensure that all commercial cannabis
businesses are taxed consistently to the best of the city's ability, the collector, with
the concurrence of the city attorney, may promulgate rules, regulations, and
guidelines, to implement and administer this article including, but not limited to rules,
regulations, and guidelines harmonizing other provisions of this chapter with the
provisions of this article in any manner not inconsistent with the intent of this article
and which does not result in an increase in the tax or taxes imposed herein. The
collector may also, with the concurrence of the city attorney, interpret or clarify the
methodology of the tax, or any definition applicable to the tax, so long as such
interpretation or clarification (even if contrary to some prior interpretation or
clarification) is not inconsistent with the language of this article.
(m) Occasional transactions—Exemptions.
(1) The provisions of this article shall not apply to persons having no fixed
place of business within the city who come into the city for the purpose
of transacting a specific item of commercial cannabis business at the
request of a specific client or customer, incidental to a commercial
cannabis business principally established elsewhere, provided that such
person does not come into the city for the purpose of transacting such
business on more than three (3) days during any calendar year.
(2) For any person not having a fixed place of business within the city,who
comes into the city for the purpose of transacting commercial can6abis
business activities, the business license tax(es) payable by such person
may be apportioned by the collector in accordance with this chapter.
(n) Reporting and remittance.
1. Beginning as set forth in subsection (q) below, and monthly thereafter,
each commercial cannabis business required to pay a tax or taxes based
on gross receipts under this article (except qualified nonprofit
Ordinance No. NS -2962
Page 7 of 10 55A-27
(o)
(p)
organizations exempt from taxes measured by income or gross receipts),
shall report to the city any gross receipts received during the preceding
monthly reporting period. In addition, each cannabis business (including
qualified nonprofit organizations) required to pay a tax or taxes based on
square footage shall report to the city the gross square footage of the
cannabis business' property location. Every cannabis business shall then
compute the business license taxes at both the gross receipts rate and
the gross square footage rate - prorated monthly to one -twelfth (1/12th) of
the annual tax rate amount - and shall then remit to the city the amount of
the higher of the two tax calculations due and owing during said period in
accordance with section 21-133, subsection (d). In the case of a qualified
nonprofit organization only the gross square footage computation shall be
made and the amount of such calculation shall represent the amount due
and owing during said period. All reporting and remitting made shall be
done in accordance with instructions from the collector and shall be made
using forms provided or approved by the collector.
2. For purposes of this section, month shall mean calendar month and shall
include any fraction of a month. Taxes shall begin to accrue on the date
that a person or entity first receives a business license or other city permit
to operate as a commercial cannabis business or upon the operative date
of this article should a person or entity already possess a commercial
cannabis business license or other city permit to operate as a commercial
cannabis business.
3. The payment of the two thousand dollars ($2,000.00) minimum basic rate
gross receipts tax required annually for each separate branch location or
separate property location of the business in accordance with this section,
shall be made annually prior to the beginning of the fiscal year beginning
April first of the current year and expiring on the 31 st day of March of the
following year. In the case of a new commercial cannabis business the
minimum basic rate gross receipts tax shall be paid in advance prior to
any new business activity being undertaken. Every new licensee shall pay
in advance an amount equal to one-quarter ('/) of the annual minimum
basic rate gross receipts tax, for each quarter and fraction of a quarter
remaining during the period for which the new license is issued.
Delinquent date—Penalty. Any individual or entity who fails to pay the taxes required
by this article when due shall be subject to penalties and interest as set forth in
accordance with this chapter. The collector is not required to send a delinquency or
other notice or bill to any person subject to the provisions of this article and failure
to send such notice or bill shall not affect the validity of any tax or penalty due under
the provisions of this article.
Business license tax certificate—Required. There are imposed upon all persons
engaged in transacting and carrying on any commercial cannabis business activity
in the city taxes in the amounts prescribed in this article. It shall be unlawful for any
person, either for him or herself or for any other person, to commence, transact or
carry on any business in the city without first having procured a business license
from the city under this chapter and having paid the taxes set forth in this article, and
without complying with any and all applicable provisions contained in this chapter.
The carrying on of any commercial cannabis business activity without complying with
Ordinance No. NS -2962
55A-28 Page 8 of 10
all the provisions of this article shall constitute a separate violation of this chapter for
each and every day that such commercial cannabis activity is so carried on.
(q) Classification of business license assessment type—Term and renewal. The
business license issued to commercial cannabis businesses shall be classed as a
gross receipts assessment type, issued for the same term of license as set forth in
subsection 21-71(c) of this chapter and shall be subject to renewal in accordance
with sections 21-72(c), 21-73(c), and 21-77.
(r) Operative date. Upon the approval by the majority of the voters of the city at the
November 6, 2018 general election, the taxes imposed by this article shall become
operative and shall be applied by the collector upon all commercial cannabis
businesses.
Sec. 21-134. Payment of tax does not authorize unlawful business.
(a) The payment of a business tax required by this article, and its acceptance by the
city, shall not entitle any person to carry on any commercial cannabis business
unless the person has complied with all of the requirements of this code and all other
applicable laws, nor to carry on any commercial cannabis business in any building
or on any premises in the event that such building or premises are situated in a zone
or locality in which the conduct of such commercial cannabis business is in violation
of any law.
(b) No tax paid under the provisions of this article shall be construed as authorizing the
conduct or continuance of any illegal or unlawful business, or any legal business in
an illegal manner, or any business in violation of any ordinance of the city, state or
federal law.
Sec. 21-135. Single property location; multiple state licenses; separate city business
licenses.
Sections 21-7, 21-8, and 21-9 of this chapter notwithstanding, separate city business
licenses, issuable to commercial cannabis businesses pursuant to this article, shall be
required for each separate type of commercial cannabis business activity transacted and
carried on at a single city property location for which a commercial cannabis business
may seek licensure by the state, or forwhich a state license has been approved or issued.
Sec. 21-136. Security for collection of commercial cannabis business' business license
tax.
To ensure compliance with business license tax payment requirements established
pursuant to this article, the collector shall require, beginning on the operative date of this
article, that each commercial cannabis business owner (including but not limited to each
transferee, assignee, or purchaser of a commercial cannabis business subject to the
business licensing requirements of this article) deposit within thirty (30) days such security
(per individual business license) in a form acceptable to the collector in an amount not
larger than the cannabis business owner's estimated average monthly tax liability as
determined by the collector or the sum of ten thousand dollars ($10,000.00), whichever
is the greater. Each new city commercial cannabis business licensee shall upon obtaining
Ordinance No. NS -2962
Page 9 of 10 55A-29
their city business license(s) deposit a similar security per business license within thirty
(30) days after commencing business.
Sec. 21-137. Effect of state and federal reference/authorization.
Unless specifically provided otherwise, any reference to a state or federal statute
in this article or chapter (whether by direct citation or by definitional reference to another
chapter of this code) shall mean such statute as it may be amended from time to time,
provided that such reference to a statute herein shall not include any subsequent
amendment thereto, or to any subsequent change of interpretation thereto by a state or
federal agency or court of law with the duty to interpret such law, to the extent that such
amendment or change of interpretation would require voter approval under California law,
or to the extent that such change would result in a tax decrease. Only to the extent voter
approval would otherwise be required or a tax decrease would result, the prior version of
the statute (or interpretation) shall remain applicable; for any application or situation that
would not require voter approval or result in a decrease of a tax, provisions of the
amended statute (or new interpretation) shall be applicable to the maximum possible
extent.
To the extent that the city's authorization to collect or impose any tax imposed
under this article is expanded or limited as a result of changes in state or federal law, no
amendment or modification of this article shall be required to conform the tax to those
changes, and the tax shall be imposed and collected to the full extent of the authorization
up to the full amount of the tax imposed under this article.
Sec. 21-138. Violation deemed misdemeanor—Penalty
Any person violating any of the provisions of this article or any regulation or rule
passed in accordance herewith, shall be deemed guilty of a misdemeanor, and upon
conviction thereof shall be punishable by the maximum penalties provided for in California
Penal Code Section 19. The penalties under this section are in addition to any other
penalties available pursuant to this code.
Sec. 21-139. Transferability of commercial cannabis business license.
Section 21-67 of this chapter notwithstanding, business licenses issued to
commercial cannabis businesses pursuant to this article shall be transferable or
assignable upon presentation of a valid regulatory safety permit issued in the name of the
transferee or assignee.
Sec. 21-140. Severability.
Should any provision of this article, or its application to any person or
circumstance, be determined by a court of competent jurisdiction to be unlawful,
unenforceable or otherwise void, that determination shall have no effect on any other
provision of this article or chapter or the application of this article or chapter to any other
person or circumstance and, to that end, the provisions hereof are severable.
Ordinance No. NS -2962
55A-30 Page 10 of 10
RESOLUTION NO. 2018-058
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA CALLING FOR THE PLACEMENT ON THE
BALLOT OF A MEASURE FOR THE NOVEMBER 6, 2018
GENERAL MUNICIPAL ELECTION FOR THE SUBMISSION
TO THE QUALIFIED VOTERS OF A PROPOSED
ORDINANCE REGARDING A GENERAL SALES TAX
MEASURE AND PROVIDING' FOR THE FILING OF
ARGUMENT AND REBUTTAL STATEMENTS
WHEREAS, pursuant to California Elections Code section 9222, the City Council
has authority to place measures on the ballot to be considered at a General Municipal
Election; and
WHEREAS, pursuant to the law of the State of California, the City Council has
called and ordered to be held in the City of Santa Ana, California, on Tuesday, November
6, 2018, a General Municipal Election; and
WHEREAS, Revenue and Taxation Code section 7285.9 authorizes the City of
Santa Ana ("City"), subject to approval by a majority vote of the qualified voters of the City
voting in an election on the issue, to levy a transactions and use tax pursuant to the
Transactions and Use Tax Law at a rate of 0.125% or any multiple thereof for general
purposes and projects; and
WHEREAS, Section 2(b) of Article XIII C of the California Constitution, added by
Proposition 218 effective November, 1996, requires that the measure proposing a
general tax be submitted to the voters at an election consolidated with a regularly
scheduled general election for members of the governing body of the local government;
and
WHEREAS, pursuant to California Constitution Article XIII C, section 2 and
Elections Code section 10201, the City has determined to submit a proposition to enact
an ordinance establishing a transactions and use tax to the voters at the City's next
regular election;
NOW, THEREFORE the City Council of the City of Santa Ana does hereby resolve
as follows:
Section 1. The City Council hereby finds and determines that the foregoing recitals
are true and correct and are hereby incorporated by reference.
Section 2. Under the provisions of the California Elections Code, the following
proposed amendment to the Santa Ana Municipal Code shall be submitted to the voters
at the General Municipal Election to be held on November 6, 2018:
EXHIBIT 5
Resolution No. 2018-058
Page 1 of 14
55A-31
Yes
To maintain effective 9-1-1 response; retaining firefighters and police
officers; addressing homelessness; fixing streets; maintaining parks,
youth and senior services, and unrestricted general revenue
purposes; shall the sales tax be increased one and one half (1.5) No
cents until 2029 providing approximately $60 million dollars annually,
then reduced to one (1) cent providing approximately $40 million
dollars annually, until 2039, requiring annual audits, citizens
oversight and for Santa Ana use only?
Section 3. Should said measure be approved by the requisite vote, the ordinance
attached hereto as Exhibit A and incorporated by this reference shall be enacted.
Section 4. That the text of the Ordinance to be submitted to the voters is attached
to this Resolution as Exhibit "A" and incorporated herein by this reference ("Ordinance").
Section 5. That pursuant to Elections Code Section 9280, the City Council hereby
directs the City Clerk to transmit a copy of the Ordinance to the City Attorney to prepare
an impartial analysis of the Ordinance which shall not exceed 500 words in length.
Section 6. That pursuant to Elections Code Section 9282, the City Council may file
a written argument in favor of the Ordinance in accordance with Article 4, Chapter 3,
Division 9 of the Elections Code and may.change the argument as allowed by law.
Section 7. That pursuant to Elections Code Section 9287, if more than one
argument for or more than one argument against the Ordinance is submitted to the City
Clerk within the time prescribed by law, he or she shall select one of the arguments in
favor and one of the arguments against the Ordinance for printing and distribution to the
voters, giving preference in such selection in the following order:
1, The City Council, or a member or members of the City Council authorized by
the City Council.
2. Bona fide associations of citizens.
3. Individual voters who are eligible to vote on the Ordinance.
Section 8. That pursuant to Elections Code Sections 9220 and 9285, when the City
Clerk has selected the arguments for and against the Ordinance which will be printed and
distributed to the voters, the City Clerk shall send copies of the argument in favor of the
Ordinance to the author or authors of the argument against; and copies of the argument
against the Ordinance to the author or authors of the argument in favor, The author or
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authors may submit a rebuttal argument to the direct argument not exceeding 250 words.
Rebuttal arguments shall be printed in the same manner as the direct arguments and
shall immediately follow the direct argument which it seeks to rebut. All previous
resolutions providing for the filing of rebuttal arguments for City measures are repealed,
and this Section shall only apply to the election on the Ordinance to be held on November
6, 2018.
Section 9. In accordance with Section 10002 of the Elections Code, the Board of
Supervisors Orange County Is hereby requested to consent to the Registrar of Voters
rendering election services to the City as may be requested by the City Clerk of said City,
the County of Orange to be reimbursed in full for such services as are performed. The
Board of Supervisors of Orange County is also requested to consent and agree to the
consolidation of the General Election with any other election occurring on November 6,
2018, and the City hereby consents to any such consolidation.
Section 10. The election services which the City requests of the Registrar of
Voters, or such other official as may be appropriate to perform, and which such officer is
hereby authorized and directed to perform if the said Board of Supervisors consents,
include: the preparation, printing and mailing of sample ballots and polling place cards,
the establishment or appointment of precincts, polling places, and election officers,
opening and closing of polling places, and making such publications as are required by
law in connection therewith; the furnishing of ballots, voting booths and other necessary
supplies or materials for polling places, the canvassing of the returns of the election and
the furnishing of the results of such canvassing to the City Clerk, and the performance of
such other election services as may be requested by said City Clerk.
Section 11. That the polls for the election shall be open at seven o'clock a.m. of
the day of the election and shall remain open continuously from that time until eight o'clock
p.m. of the same day when the polls shall be closed, pursuant to California Elections
Code Section 10242 and Section 14212, except as provided in California Elections Code
Section 14401 or any other provision of law.
Section 12. All persons qualified to vote at municipal elections in the City on the
day of the election herein provided for shall be qualified to vote on the Ordinance hereby
submitted at the General Municipal Election.
Section 13. In all particulars not recited in this Resolution, the election shall be held
and conducted as provided by law for holding general municipal elections in the City.
Section 14. Notice of the time and place of holding the General Municipal Election
is given and the City Clerk is authorized, instructed and directed to give further or
additional notice of the election, in the time, form and manner as required by law.
Section 15. The City Clerk shall receive the canvass as it pertains to the General
Municipal Election, and shall certify the results to this City Council, as required by law.
Section 16. If any section, subsection, sentence, clause, phrase or provision of this
Resolution or the application thereof to any person or circumstances is held invalid or
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unconstitutional by any court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity of any other provision or applications, and
to this end the provisions of this Resolution are declared to be severable. The City Council
hereby declares that it would have passed this Resolution and each section, subsection,
sentence, clause, phrase or provision thereof, irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases or provisions thereof be declared
invalid or unconstitutional.
Section 17. Pursuant to California Elections Code 'section 9295, this Resolution
and the attached Ordinance will be available for public examination for no fewer than ten
(10) calendar days prior to being submitted for printing in the sample ballot. The
examination period will end on the day that is seventy-five (75) days prior to the date set
for the election.
Section 18, This Resolution shall take effect immediately upon its adoption by a
majority of the City Council.
Section 19. The City Clerk of the City of Santa Ana is hereby directed to certify to
the passage and adoption of this Resolution and to file a certified copy of this Resolution
with the Board of Supervisors of Orange County and the Registrar of Voters of Orange
County at least eighty-eight (88) days before the date of the election.
ADOPTED this 17 day of July , 2018.
APPROVED AS TO FORM:
For Sonia R. Carvalho
City Attorney
�_ �W-s -
Laura Rossini
Senior Assistant City Attorney
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AYES: Councilmembers: Benavides, Sarmiento, Tinaiero. Villegas (4)
NOES Councilmembers: Pulido. Solorio (2)
ABSENT: Councilmembers: Martinez(1)
ABSTENTIONS: Councilmembers: None (0)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2018-058 to be the original resolution adopted by the City Council of the
City of Santa Ana on July 17th, 2018.
Date: %I�ylj,/i3� �1)jyirti
Maria D. Huizar
Clerk of the Council
City of Santa Ana
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EXHIBIT A
ORDINANCE NO.2952
AN ORDINANCE OF THE CITY OF SANTA ANA ADDING ARTICLE
VII TO CHAPTER 35 OF THE SANTA ANA MUNICIPAL CODE
RELATED TO A TRANSACTIONS AND USE TAX TO BE
ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
The City Council of the City of Santa Ana does ordain as follows:
Section 1. Authority. The City Council and the Voters of the City of Santa Ana enact this
ordinance in accordance with the authority granted to cities by Article XI, Section 7 of the
California Constitution and Section 7285.9 of the California Revenue and Taxation Code.
Section 2. Addition of article. Article VI I is hereby added to Chapter 35 of the Santa Ana
Municipal Code to read as follows:
CHAPTER 35 -TAXATION
ARTICLE VII. - TRANSACTIONS AND USE TAX.
Sec. 35-200. - Short title.
This article shall be known as the "Transactions and Use Tax' and shall be
applicable in the incorporated territory of the City of Santa Ana ('city").
Sec. 35-201. - Definitions.
For the purpose of this article the following words terms shall have
the meaning given in this section:
"In the city" means and includes all territory within the city limits.
"Operative Date" means the first day of the first calendar quarter
commencing more than 110 days after the later of the adoption of this
chapter and the approval by the voters of the city of a measure approving
the imposition of an increased transactions and use tax; provided that, if the
city shall not have entered into a contract with the California Department of
Tax and Fee Administration as required by section 35-203. prior to such
date, the operative date shall be the first day of the first calendar quarter
following the execution of such a contract.
Sec. 35-202. - Purpose.
This article of the Santa Ana Municipal Code has been adopted for
the following purposes, and directs that the provisions hereof be interpreted
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in order to accomplish those purposes:
(1) To impose a retail transactions and use tax in accordance with
the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of
the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division
2, which authorizes the city to adopt this tax. This article shall be operative
if a majority of the electors voting on the measure vote to approve the
imposition of the tax at an election called for that purpose.
(2) To adopt a retail transactions and use tax that incorporates
provisions identical to those of the Sales and Use Tax Law of the State of
California insofar as those provisions are not inconsistent with the
requirements and limitations contained in Part 1.6 of Division 2 of the
Revenue and Taxation Code.
(3) To adopt a retail transactions and use tax that imposes a tax
and provides a measure therefor that can be administered and collected by
the California Department of Tax and Fee Administration in a manner that
adapts itself as fully as practicable to, and requires the least possible
deviation from, the existing statutory and administrative procedures
followed by the California Department of Tax and Fee Administration in
administering and collecting the Califomia State Sales and Use Taxes.
(4) To adopt a retail transactions and use tax that can be
administered in a manner that will, to the greatest degree possible, be
consistent with the provisions of Parts 1.6 of Division 2 of the said Revenue
and Taxation Code, and thereby minimize the cost of collecting city
transactions and use taxes, and at the same time minimize the burden of
record keeping upon persons subject to taxation under the provisions
thereof.
Sec. 35-203. - Contract with state.
Prior to the operative date, the city shall contract with the California
Department of Tax and Fee Administration to perform all functions
incidental to the administration and operation of this transactions and use
tax ordinance. If the city has not contracted with the California Department
of Tax and Fee Administration prior to the operative date, it shall
nevertheless so contract and in such a case the operative date shall be the
first day of the first calendar quarter following the execution of such a
contract. The city council may make any technical amendments to this
chapter required by the California Department of Tax and Fee
Administration, except for any changes affecting the tax rate, tax
methodology, or its manner of collection.
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Sec. 35-204. - Imposition of transactions and use tax — Rate.
For the privilege of selling tangible personal property at retail, a tax
is hereby imposed upon all retailers in the incorporated territory of the city
at the rate of one and one half cents (1.5) of any gross receipts of the retailer
from the sale of all tangible personal property sold at retail in the city on and
after the. operative date of this article until March 31, 2029 and then at the
rate of one cent (1) until March 31, 2039.
Sec. 35-205. - Place of sale.
For the purposes of this article, all retail sales are consummated at
the place of business of the retailer, unless the tangible personal property
sold is delivered by the retailer or his agent to an out-of-state destination or
to a common carrier for delivery to an out-of-state destination. The gross
receipts from such sales shall include delivery charges, when such charges
are subject to the state sales and use tax, regardless of the place to which
deliveryis made. In the event a retailer has no permanent place of business
in the state or has more than one place of business, the place or places at
which the retail sales are consummated shall be determined under rules
and regulations to be prescribed and adopted by the California Department
of Tax and Fee Administration.
Sec. 35-206.- Imposition of use tax — Use tax rate.
An excise tax is hereby imposed on the storage, use, or other
consumption in the city of tangible personal property purchased from any
retailer on or after the operative date of this article, at the rate of one and
one-half cents (1.5) of the sales price of the property subject to the tax until
March 31, 2029 and then at the rate of one cent (1) of the sales price of the
property subject to the tax until March 31, 2039. The sales price shall
include delivery charges when such charges are subject to state sales or
use tax regardless of the place to which delivery is made.
Sec. 35-207. - Adoption of provisions of state law — Generally.
Except as otherwise provided in the article and except insofar as they
are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue
and Taxation Code, all of the provisions of Part 1 (commencing with § 6001)
of Division 2 of the Revenue and Taxation Code are hereby adopted and
made a part of this article as though fully set forth herein.
Sec. 35-208. - Adoption of provisions of state law — Limitations; Limitations
on collection of use taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and
Taxation Code:
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(1) Wherever the State of California is named or referred to as
the taxing agency, the name of this city shall be substituted therefor.
However, the substitution shall not be made when:
(A) The word "State" is used as a part of the title of the
State Controller, State Treasurer, State Board of Control, State Board of
Equalization, State Treasury, or the Constitution of the State of California;
(B) The result of that substitution would require action to
be taken by or against this city or any agency, officer, or employee thereof
rather than by or against the California Department of Tax and Fee
Administration, in performing the functions incident to the administration or
operation of this article.
(C) In those sections, including, but not necessarily limited
to sections referring to the exterior boundaries of the State of California,
where the result of the substitution would be to:
(i) Provide an exemption from this tax with respect
to certain sales, storage, use or other consumption of tangible personal
property which would not otherwise be exempt from this tax while such
sales, storage, use or other consumption remain subject to tax by the state
under the provisions of Part 1 of Division 2 of the Revenue and Taxation
Code, or;
(ii) Impose this tax with respect to certain sales,
storage, use or other consumption of tangible personal property which
would not be subject to tax by the state under- the said provision of that
code.
(D) In Sections 6701, 6702 (except in the last sentence
thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation
Code.
(2) The word "city' shall be substituted for the word "State' in the
phrase "retailer engaged in business in this State' in Section 6203 and in
the definition of that phrase in Section 6203.
Sec. 35-209. - Permit not required.
If a seller's permit has been issued to a retailer under Section 6067
of the Revenue and Taxation Code, an additional transactors permit shall
not be required by this article.
Sec. 35-210. - Exemptions and exclusions.
(1) Measure of Tax. There shall be excluded from the measure
of the transactions and use tax the amount of any sales tax or use tax
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imposed by the State of California or by any city, city and county, or county
pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the
amount of any state -administered transactions or use tax.
(2) Transactions Tax Exemptions. There are exempted from the
computation of the amount of transactions tax the gross receipts from:
(A) Sales of tangible personal property, other than fuel or
petroleum products, to operators of aircraft to be used or consumed
principally outside the county in which the sale is made and directly and
exclusively in the use of such aircraft as common carriers of persons or
property under the authority of the laws of this State, the United States, or
any foreign government.
(B) Sales of property to be used outside the city which is
shipped to a point outside the city, pursuant to the contract of sale, by
delivery to such point by the retailer or his agent, or by delivery by the
retailer to a carrier for shipment to a consignee at such point. For the
purposes of this paragraph, delivery to a point outside the city shall be
satisfied:
(i) With respect to vehicles (other than commercial
vehicles) subject to registration pursuant to Chapter 1 (commencing with
Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in
compliance with Section 21411 of the Public Utilities Code, and
undocumented vessels registered under Division 3.5 (commencing with
Section 9840) of the Vehicle Code by registration to an out -of -city address
and by a declaration under penalty of perjury, signed by the buyer, stating
that such address is, in fact, his or her principal place of residence; and
(ii) With respect to commercial vehicles, by
registration to a place of business out -of -city and declaration under penalty
of perjury, signed by the buyer, that the vehicle will be operated from that
address.
(C) The sale of tangible personal property if the seller is
obligated to furnish the property for a fixed price pursuant to a contract
entered into prior to the operative date.
(D) A lease of tangible personal property which is a continuing
sale of such property, for any period of time for which the lessor is obligated
to lease the property for an amount fixed by the lease prior to the operative
date.
For the purposes of subsections (2)(C) and (2)(D) of this section, the
sale or lease of tangible personal property shall be deemed not to be
obligated pursuant to a contract or lease for any period of time for which
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any parry to the contract or lease has the unconditional right to terminate
the contract or lease upon notice, whether or not such right is exercised.
(3) Use Tax Exemptions. There are exempted from the use tax
imposed by this chapter, the storage, use or other consumption in this city
of tangible personal property:
(A) The gross receipts from the sale of which have been
subject to a transactions tax under any state -administered transactions and
use tax ordinance.
(B) Other than fuel or petroleum products purchased by
operators of aircraft and used or consumed by such operators directly and
exclusively in the use of such aircraft as common carriers of persons or
property for hire or compensation under a certificate of public convenience
and necessity issued pursuant to the laws of this State, the United States,
or any foreign government. This exemption is in addition to the exemptions
provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code
of the State of California.
(C) If the purchaser is obligated to purchase the property
for a fixed price pursuant to a contract entered into prior to the operative
date.
(D) If the possession of, or the exercise of any right or
power over, the tangible personal property arises under a lease which is a
continuing purchase of such property for any period of time for which the
lessee is obligated to lease the property for an amount fixed by a lease prior
to the operative date.
For the purposes of subsections (3)(C) and (3)(D) of this section, storage,
use, or other consumption, or possession of, or exercise of any right or
power over, tangible personal property shall be deemed not to be obligated
pursuant to a contract or lease for any period of time for which any party to
the contract or lease has the unconditional right to terminate the contract or
lease upon notice, whether or not such right is exercised.
(4) Exemption from Collection of Use Tax. Except as provided in
subsection (5), a retailer engaged in business in the city shall not be
required to collect use tax from the purchaser of tangible personal property,
unless the retailer ships or delivers the property into the city or participates
within the city in making the sale of the property, including, but not limited
to, soliciting or receiving the order, either directly or indirectly, at a place of
business of the retailer in the city or through any representative, agent,
canvasser, solicitor, subsidiary, or person in the city under the authority of
the retailer.
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(5) Retailer Not Exempt from Collection of Use Tax. "A retailer
engaged in business in the city" shall also include any retailer of any of the
following: vehicles subject to registration pursuant to Chapter 1
(commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft
licensed in compliance with Section 21411 of the Public Utilities Code, or
undocumented vessels registered under Division 3.5 (commencing with
Section 9840) of the Vehicle Code. That retailer shall be required to collect
use tax from any purchaser who registers or licenses the vehicle, vessel, or
aircraft at an address in the city.
(6) Credit Against Use Tax for Transactions Tax Paid Elsewhere.
Any person subject to use tax under this chapter may credit against that tax
any transactions tax or reimbursement for transactions tax paid to a district
imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of
Division 2 of the Revenue and Taxation Code with respect to the sale to the
person of the property the storage, use or other consumption of which is
subject to the use tax.
Sec. 35-211. - Adoption of amendments to state law.
All amendments subsequent to the effective date of this chapter to
Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and
use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of
Division 2 of the Revenue and Taxation Code, and all amendments to Part
1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall
automatically become a part of this article, provided however, that no such
amendment shall operate so as to affect the rate of tax imposed by this
article.
Sec. 35-212. - Enjoining collection prohibited.
No injunction or writ of mandate or other legal or equitable process
shall issue in any suit, action, or proceeding in any court against the State
or the city, or against any officer of the State or the city, to prevent or enjoin
the collection hereunder, or Parts 1.6 of Division 2 of the Revenue and
Taxation Code, of any tax or any amount of tax required to be collected.
Sec. 35-213. —Termination.
The authority set forth in this Article VII to impose a retail transactions
and use tax shall continue until March 31, 2039,
Sec. 35-214. - Oversight committee.
The City Council shall, by resolution establish as citizen oversight
committee to act in an advisory role to the City Council in reviewing the annual
revenue and expenditures of funds from the tax authorized by this article. The
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resolution shall establish the committee members' terms, qualifications and duties,
and the committee's scope of authority.
Sec. 35-215. - Annual Audit.
An annual audit of the revenue generated by the sales and use tax and the
expenditures made will be conducted by an Independent certified public
accountant.
Sec. 35-216. - Annual Expenditures Disclosure.
The City of Santa Ana will publically disclose on an annual basis a list of
expenditures made with sales and use tax monies for the preceding fiscal year.
Sec. 35-217. — Sunset Provision.
On March 31, 2029, the rate of one and one half cents (1.5) will be reduced
to one cent (1) until March 31, 2039 for a total of twenty (20) years.
SECTION 3. Effective Date. Pursuant to the California Constitution Article
XIIIC(2)(b) and California Elections Code 9217, if the requisite number of qualified voters
voting in the election on Measure " " vote in favor of the adoption of such measure,
this ordinance shall be deemed valid and binding and shall be considered adopted upon
the date that the vote is declared by the City Council, and shall go into effect ten (10) days
after that date.
SECTION 4. Severability. If any section, sentence, clause or phrase of this
ordinance is for any reason held to be Invalid or unconstitutional by a decision of a court
of competent jurisdiction, such decision shall not affect the validity of the remaining
provisions of this Ordinance. The People of the City of Santa Ana hereby declare that
they would have adopted this Ordinance irrespective of the invalidity of any particular
portion thereof and intends that the invalid portions should be severed and the balance
of the Ordinance be enforced.
SECTION 5. Certification/Summary. Following the City Clerk's certification that the
citizens of Santa Ana have approved this Ordinance, the Mayor shall sign this Ordinance
and the City Clerk shall cause the same to be entered in the book or original ordinance
of said City; and shall cause the same, or a summary thereof, to be published as required
by law.
PASSED, APPROVED, and ADOPTED by the People of the City of Santa Ana this 6t'
day of November, 2018.
Mayor
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ATTEST:
Maria D. Huizar
City Clerk
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
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RESOLUTION NO. 2018-049
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA CALLING FOR A GENERAL MUNICIPAL
ELECTION ON NOVEMBER 6, 2018 AND THE PLACEMENT
ON THE BALLOT OF A MEASURE FOR THE NOVEMBER
6, 2018 GENERAL MUNICIPAL ELECTION FOR THE
SUBMISSION TO THE QUALIFIED VOTERS OF A
PROPOSED ORDINANCE REGARDING A COMMERCIAL
CANNABIS BUSINESS LICENSE TAX AND REQUESTING
THAT THE ORANGE COUNTY BOARD OF SUPERVISORS
CONSOLIDATE THE CITY'S GENERAL MUNICIPAL
ELECTION WITH THE STATEWIDE GENERAL ELECTION
TO TAKE PLACE ON NOVEMBER 6, 2018; AND
PROVIDING FOR THE FILING OF ARGUMENT AND
REBUTTAL STATEMENTS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines and
declares as follows:
A. A general municipal election of the City of Santa Ana will be held on November
6, 2018, for the purposes of electing the Mayor and Councilmembers from Wards
2, 4, and 6.
B. There will be a statewide general election held on November 6, 2018.
C. It is desirable that the general municipal election of the City of Santa Ana on
November 6, 2018 be consolidated with the statewide general election to be held
on the same date and; that within the City of Santa Ana, the precincts, polling
places and charter amendment be the same, and that the Board of Supervisors of
the County of Orange canvass the returns of both elections, in all respects as if
there were only one election,
D. The Clerk of Council is authorized, instructed, and directed to give further notice
of the election, in time, form and manner as required by law.
Section 2. The California Elections Code directs the City Council approve the form
of the ballot question to be submitted to the voters and the City of Santa Ana desires, on
its own motion, to submit to the voters a question of whether the City should place on the
ballot a measure for a proposed Ordinance regarding a commercial cannabis business
license tax, to be submitted to the voters at the General Election to be held on Tuesday,
November 6, 2018.
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EXHIBIT 6
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Section 3. The ballot question forthe proposed Ordinance shall be as follows, with
identification as determined in accordance with the California Elections Code:
MEASURE # I Yes
Shall Chapter 21 of the Santa Ana Municipal Code be amended to
enact both a gross square footage tax of between 25 cents to $35.00
and a gross receipts tax rate up to 10% for cultivating,
manufacturing, distributing, selling or testing cannabis and related
products to raise between $8 to $12 million to fund public safety, No
parks, youth and senior services, among other general City
services?
Section 4. Should said measure be approved by the requisite vote, the Ordinance
adding Article XIII to Chapter 21 attached hereto as Exhibit A and incorporated by this
reference shall be enacted.
Section 5. That the text of the Ordinance to be submitted to the voters is attached
to this Resolution as Exhibit A and incorporated herein by this reference ("Ordinance").
Section 6. That pursuant to Elections Code Section 9280, the City Council hereby
directs the City Clerk to transmit a copy of the Ordinance to the City Attorney to prepare
an impartial analysis of the Ordinance which shall not exceed 500 words in length.
Section 7. That pursuant to Elections Code Section 9282, the City Council may file
a written argument in favor of the Ordinance in accordance with Article 4, Chapter 3,
Division 9 of the Elections Code and may change the argument as allowed by law.
Section 8. That pursuant to Elections Code Section 9287, if more than one
argument for or more than one argument against the Ordinance is submitted to the City
Clerk within the time prescribed by law, he or she shall select one of the arguments in
favor and one of the arguments against the Ordinance for printing and distribution to the
voters, giving preference in such selection in the following order:
1. The City Council, or a member or members of the City Council authorized by
the City Council.
2. Bona fide associations of citizens.
3. Individual voters who are eligible to vote on the Ordinance.
Section 9. That pursuant to Elections Code Sections 9220 and 9285, when the City
Clerk has selected the arguments for and against the Ordinance which will be printed and
distributed to the voters, the City Clerk shall send copies of the argument in favor of the
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Ordinance to the author or authors of the argument against, and copies of the argument
against the Ordinance to the author or authors of the argument in favor. The author or
authors may submit a rebuttal argument to the direct argument not exceeding 250 words.
Rebuttal arguments shall be printed in the same manner as the direct arguments and
shall immediately follow the direct argument which it seeks to rebut. All previous
resolutions providing for the filing of rebuttal arguments for City measures are repealed,
and this Section shall only apply to the election on the Ordinance to be held on November
6, 2018.
Section 10. In accordance with Section 10002 of the Elections Code, the Board of
Supervisors Orange County is hereby requested to consent to the Registrar of Voters
rendering election services to the City as may be requested by the City Clerk of said City,
the County of Orange to be reimbursed in full for such services as are performed. The
Board of Supervisors of Orange County is also requested to consent and agree to the
consolidation of the General Election with any other election occurring on November 6,
2018, and the City hereby consents to any such consolidation.
Section 11. The election services which the City requests of the Registrar of
Voters, or such other official as may be appropriate to perform, and which such officer is
hereby authorized and directed to perform if the said Board of Supervisors consents,
include: the preparation, printing and mailing of sample ballots and polling place cards,
the establishment or appointment of precincts, polling places, and election officers,
opening and closing of polling places, and making such publications as are required by
law in connection therewith; the furnishing of ballots, voting booths and other necessary
supplies or materials for polling places, the canvassing of the returns of the election and
the furnishing of the results of such canvassing to the City Clerk, and the performance of
such other election services as may be requested by said City Clerk.
Section 12. That the polls for the election shall be open at seven o'clock a.m. of
the day of the election and shall remain open continuously from that time until eight o'clock
p.m. of the same day when the polls shall be closed, pursuant to California Elections
Code Section 10242 and Section 14212, except as provided in California Elections Code
Section 14401 or any other provision of law.
Section 13. All persons qualified to vote at municipal elections in the City on the
day of the election herein provided for shall be qualified to vote on the Ordinance hereby
submitted at the General Municipal Election.
Section 14. In all particulars not recited in this Resolution, the election shall be held
and conducted as provided by law for holding general municipal elections in the City.
Section 15. Notice of the time and place of holding the General Municipal Election
is given and the City Clerk is authorized, instructed and directed to give further or
additional notice of the election, in the time, form and manner as required by law.
Section 16. The City Clerk shall receive the canvass as it pertains to the General
Municipal Election, and shall certify the results to this City Council, as required by law.
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Section 17. If any section, subsection, sentence, clause, phrase or provision of this
Resolution or the application thereof to any person or circumstances is held invalid or
unconstitutional by any court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity of any other provision or applications, and
to this end the provisions of this Resolution are declared to be severable. The City Council
hereby declares that it would have passed this Resolution and each section, subsection,
sentence, clause, phrase or provision thereof, irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases or provisions thereof be declared
invalid or unconstitutional.
Section 18. Pursuant to California Elections Code section 9295, this Resolution
and the attached Ordinance will be available for public examination for no fewer than ten
(10) calendar days prior to being submitted for printing in the sample ballot. The
examination period will end on the day that is seventy-five (75) days prior to the date set
for the election.
Section 19. This Resolution shall take effect immediately upon its adoption by a
majority of the City Council.
Section 20. The City Clerk of the City of Santa Ana is hereby directed to certify to
the passage and adoption of this Resolution and to file a certified copy of this Resolution
with the Board of Supervisors of Orange County and the Registrar of Voters of Orange
County at least eighty-eight (88) days before the date of the election.
ADOPTED this 3b day of July, 2018.
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By:A _CaladXla
Laura A. Rossini
Senior Assistant City Attorney
ri�
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Uel
55A-48
Resolution 2018-049
Page 4 of 16
AYES: Councilmembers Benavides, Solorio, Tinaiero, Villeaas (4)
NOES: Councilmembers None (0)
ABSTAIN: Councilmembers Pulido, Sarmiento (2)
NOT PRESENT: Councilmembers Martinez (1)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2018-049 to be the original resolution adopted by the City Council of the
City of Santa Ana on July 3, 2018.
Date: b. / 5;�
Maria D. Huizar
Clerk of the Council
City of Santa Ana
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Exhibit A
CITY OF SANTA ANA PROPOSED ORDINANCE NO. NS -
AN ORDINANCE OF THE CITY OF SANTA ANA CITY
COUNCIL ADDING ARTICLE XIII TO CHAPTER 21 OF THE
CITY OF SANTA ANA MUNICIPAL CODE RELATED TO A
COMMERCIAL CANNABIS BUSINESS LICENSE TAX
IMPOSED FOR GENERAL MUNICIPAL PURPOSES,
SUBJECT TO THE APPROVAL OF A MAJORITY OF THE
VOTERS VOTING AT THE GENERAL MUNICIPAL
ELECTION HELD ON NOVEMBER 6, 2018
WHEREAS, in November 2016, the California Marijuana Legalization Initiative,
also known as the Adult Use of Marijuana Act (AUMA or Proposition 64) was approved
by the voters of the State of California. The AUMA legalized recreational marijuana.
WHEREAS, in 2017, the Governor signed into law Senate Bill 94 also known as
Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA) establishing
state regulations and licensing for retail sales, manufacturing, distribution, delivery and
testing of adult -use (also called recreational) marijuana. .
WHEREAS, on November 9, 2017, the City Council created Chapter 40 of the
Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in
the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana
Municipal Code to ensure consistency with State law and Chapter 40. Since 2014, the
City has allowed medicinal marijuana collectives/cooperatives to operate within the City
pursuant to regulations set forth in Chapter 18 and Chapter 21 of the Santa Ana
Municipal Code.
WHEREAS, on March 20, 2018, the City Council adopted Ordinance NS -2941
and NS -2942, allowing and regulating commercial cannabis testing laboratories.
WHEREAS, on May 1, 2018, the City Council adopted Ordinance NS -2944
allowing and regulating commercial cannabis manufacturing, distribution, and
cultivation.
WHEREAS, a general business license tax based on the gross receipts derived
from commercial cannabis businesses and gross square footage would generate
essential funds for protecting vital City services and facilities and place such businesses
on more equal footing with existing City businesses, including medical marijuana
businesses which already pay a business license tax; and
WHEREAS, the City Council is authorized to impose general and special taxes in
order to fund municipal services and facilities, subject to requisite voter approval as set
forth in Government Code section 53720.
NOW, THEREFORE, the City of Santa Ana City Council does hereby ordain as
follows:
SECTION 1. Recitals. The above recitals are hereby found to be true and
accurate and are incorporated into this Ordinance by this reference.
SECTION 2. Amendment. Article XIII is hereby added to Chapter 21 of the City
of Santa Ana Municipal Code to read in full as set forth in Exhibit A-1, attached hereto
and incorporated by reference.
SECTION 3. Voter Approval. Article XII I as added to Chapter 21 of the Santa
Ana Municipal Code by this proposed Ordinance shall impose a general tax as defined
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by Government Code section 53723, and therefore must be approved by a majority of
voters voting in an election on the tax. Approval of this Ordinance is therefore subject to
and conditioned upon the approval by the voters of the imposition of the general tax
imposed by this Ordinance. If a majority of the voters voting in the election do not vote
in favor of the imposition of the tax, this ordinance shall not take effect.
SECTION 4. Severability. If any provision of this Ordinance or the application
thereof to any person or circumstances is held invalid, such invalidity shall not affect
other provisions of applications of the Ordinance that can be given effect without the
invalid provision or application, and to this end the provisions of this Ordinance are
severable. This City Council hereby declares that it would have adopted this Ordinance
irrespective of the invalidity of any particular portion thereof and intends that the invalid
portions should be severed and the balance of the Ordinance be enforced.
SECTION 5. Effective Date. After its adoption by the voters, this Ordinance
shall be in full force and effect ten (10) days after the vote is declared by the legislative
body, pursuant to the provisions of Elections Code sections 9217 and 15400 and as
provided by law.
PASSED, APPROVED, and ADOPTED by the People of the City of Santa Ana
this 6th day of November, 2018.
ATTEST:
Maria D. Huizar
Clerk of Council
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
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Miguel A. Pulido
Mayor
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EXHIBIT A-1
ARTICLE XIII. COMMERCIAL CANNABIS BUSINESSES
Sec. 21-132. Purpose.
This article is required for the purpose of fixing the rate of taxation for commercial
cannabis businesses including delivery, distribution, manufacturing, cultivation, testing
and retail sales of cannabis and related products. This article does not apply to medical
marijuana collectives/cooperatives (also referred to as medicinal cannabis retail
businesses) which are subject to a business license tax under article XII of this chapter.
The taxes required to be paid under this article are declared to be required pursuant to
the taxing power of the City of Santa Ana solely for the purpose of obtaining revenue and
are not regulatory permit fees.
Sec. 21-133. Commercial cannabis businesses—Annual business license tax
assessment.
Every person engaged in a "commercial cannabis business" or "commercial
cannabis activity" shall pay an annual business license tax as outlined below. This article
shall not apply to medical marijuana cooperatives/collectives also referred to as medicinal
cannabis retail businesses which are governed by article XII of this chapter or to personal
cultivation as defined in section 18-611(n) of this code.
(a) For each branch establishment or separate property location of a commercial
cannabis business transacted and carried on in the city, and for each separate type
of commercial cannabis business conducted at the same location, the higher of the
two (2) following tax rates shall be due to the city for each monthly reporting period:
(1) . Up to ten percent (10%) of each dollar of gross receipts received or
generated for each monthly reporting period.
(2) Up to $35.00 per square foot (annual tax rate) prorated monthly to one -
twelfth (1/12th) of the annual tax rate amount.
(b) These tax rates shall not be adjusted for inflation pursuant to section 21-121 of this
chapter.
(c) Notwithstanding the tax rates imposed herein under subsection (a), the city council
may, in its discretion, at any time by resolution implement any lower tax rate it deems
appropriate, and may by resolution increase such tax rate from time to time, not to
exceed the maximum rates established by subsection (a).
(d) As of the operative date of this article, the business license gross receipts tax rates
and square footage tax rates application to specific commercial cannabis business
activities shall be established as follows:
Commercial Cannabis Business
Gross Receipts
Gross Square
Activity
Tax Rate
Footage Tax Rate
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Adult -use Cannabis Retail
8%
$ 25.00
Business (including Delivery)
Cultivation
6%
$ 10.00
Distribution
6%
$ 4.00
Manufacturing
6%
$ 10.00
Testing Facility or Testing
5%
$ 1.50
Laboratory.
Commercial cannabis businesses not having a fixed place of business within the city
but conducting regular, non -incidental commercial cannabis business activities
within the city shall be subject to the gross receipts tax rate(s) as set out in the table
above based on the category/categories of commercial cannabis activity conducted.
However, such out-of-town commercial cannabis businesses shall not be subject to
any gross square footage tax rate(s).
(e) As part of the annual gross receipts/square footage tax(es) imposed by this article,
each commercial cannabis business located within the city shall pay a minimum
basic rate of two thousand dollars ($2,000.00) annually for each branch
establishment or separate property location of the commercial cannabis business
transacted and carried on in the city, and for each separate type of commercial
cannabis business conducted at the same location. Commercial cannabis
businesses having no fixed place of business within the city shall be exempted from
this requirement.
(f) In the event the city should in the future permit additional categories of commercial
cannabis business activity, as may from time to time be licensed by the State of
California, such categories of commercial cannabis activates shall be subject to the
same maximum tax rates as imposed herein. The city may by ordinance of the city
council initially set the required gross receipts/gross square footage tax rates based
on category of cannabis business activity at lesser rates as may be deemed
appropriate by the city council.
(g) For purposes of this article, a commercial cannabis business is not considered to be
a business or person having a "specified exemption" or "specified exclusion" from
business license taxation as set forth in sections 21-48 and 21-49 of this chapter.
(h) For purposes of this article any person claiming an exemption from the gross
receipts tax rate component of the combined gross receipts/square footage tax
imposed under this article on the basis of a claim of being a qualified "nonprofit
organization" shall have the burden of substantiating their claim to the same extent
and in the same manner as a marijuana collective/cooperative in accordance with
section 21-127(a)(6) of this chapter.
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(i) Cannabis businesses shall not pass the taxes imposed by this article through to an
adult -use cannabis retail business customer or commercial cannabis business
customer in any fashion except as part of the basic product sales and/or service
price.
(j) Definitions. For purposes of this article, the following terms have the following
meanings:
(1) "Adult -Use cannabis retail business" as defined in section 40-2(4) of this
code.
(2) "Commercial Cannabis Activity" as defined in section 40-2(9) of this code.
(3) "Commercial cannabis business" as defined in section 40-2(10) of this
code excluding medical marijuana collectives/cooperatives also referred
to as medicinal cannabis retail sales.
(4) "Cultivation" as defined in section 40-2(11) of this code.
(5) "Delivery" as defined in section 40-2(13) of this code.
(6) 'Distribution" as defined in section 40-2(16) of this code.
(7) "Gross receipts" — section 21-3 of this chapter notwithstanding, "gross
receipts" for the purposes of this article shall mean:
(A) Transfer of title or possession, exchange or barter, conditional or
otherwise, in any manner or by any means whatsoever, of tangible
personal property for a consideration including any monetary
consideration for cannabis, Including, but not limited to, membership
dues, reimbursements provided by members, regardless of form, or
the total amount of cash or in-kind contributions, including all
operating costs related to the growth, cultivation, manufacturing,
distribution, testing, or provision of cannabis or any transaction
related thereto.
(B) Anything else of value obtained by an a cannabis business;
(C) The total amount of the sale price of all sales and services;
(D) The total amount charged or received for the performance of any act,
service or employment of whatever nature it may be, whether or not
such service, act or employment is done as a part of or in connection
with the sale of goods, wares, or merchandise (whether at wholesale
or retail), for which a charge is made or credit allowed, including all
refunds, cash credits and properties of any amount or nature;
(E) Any amount for which credit is allowed by the seller to the purchaser
without any deduction therefrom, on account of the cost of the
property sold, the cost of materials used, the labor or service cost,
interest paid or payable, losses, or any other expense whatsoever;
provided that cash discounts allowed or payment on sales shall not
be included;
(F) The amount of any federal manufacturer's or importer's excise tax
included in the price of property sold, even trough the manufacturer
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or importer is also the retailer thereof and whether or not the amount
of such tax is stated as a separate charge.
(G) The amount of any California state cannabis excise tax or state
cannabis cultivation tax regardless of whether or not the amount of
such excise tax or cultivation tax is included in the price of the
product or stated to customers as a separate charge,
(H) "Gross receipts" shall not include the following:
1. The amount of any federal tax imposed on or with respect to retail
or wholesale sales or the sale of services whether imposed upon
the cannabis business or the consumer whenever the amount of
federal tax is authorized by law to be stated and passed through
to customers as a separate charge.
ii. Any California state, county, or city sales or use tax, including any
add-on, district, or transaction and use tax, required by law to be
included in or added to the purchase price and collected from the
consumer or purchaser, or such part of the sales price of any
property previously sold and returned by the purchaser to the
seller which is refunded by the seller by way of cash or credit
allowances given or taken as part payment on any property so
accepted for resale; or
iii. The amount of the sale price of business personal property (all
property owned or leased by a cannabis business operator used
in the operation cannabis business activities, including but not
limited to: furniture, fixtures, and business equipment); real
property, including land, buildings and other improvements.
iv. The amount of equity contributions, investments, and/or loan
proceeds to cannabis business' operation, and/or proceeds from
the sale or transfer of cannabis business' retail or commercial
cannabis business.
(1) "Gross receipts" shall be calculated without any deduction on
account of any of the following:
i. The cost of tangible or intangible property sold or bartered;
ii. The cost of materials or products used, labor or service cost,
interest paid, losses, or other expense;
iii. The cost of transportation of cannabis, or other property or
product;
iv. The amount of any federal or state income or franchise taxes; and
v. Any other business costs or expenses, unless otherwise
specifically exempted.
(8) "Manufacturing" as defined in section 40-2(22) of this code.
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(9) "Retail businesses" as defined in section 40-2(40) of this code.
(10) "Gross Square foot" or "gross square footage" for the purposes of this
article shall mean:
(A) The gross number of square feet comprising a commercial cannabis
business' property location (as confirmed by the corresponding
"approved building set" or "approved certificate of occupancy" on file
with the City of Santa Ana Planning and Building Agency) whichever
is the greater of any square footage indicated.
(B) In the case of commercial cannabis businesses licensed by the state
to engage in cultivation "gross square foot" or "gross square footage"
shall mean the aggregate sum of the number of square feet
comprising all areas of the premises under "canopy', whether such
sum is greater or lesser than the gross square footage as stated in
the "approved building set" or "approved certificate of occupancy".
"Canopy," shall mean the designated area(s) of a premise that will
contain mature plants at any point in time. Canopy shall be calculated
in square feet and measured using clearly identifiable boundaries of
all area(s) that will contain mature plants at any point in time,
including all of the space(s) within the boundaries. Canopy may be
noncontiguous, but each unique area included in the total canopy
calculation shall be separated by an identifiable boundary which
includes interiorwalls, shelves, greenhouse walls, hoop house walls,
garden benches, hedgerows, fencing, garden beds, or garden plots;
and if mature plants are being cultivated using a shelving system, the
surface area of each level shall be included in the total canopy
calculation.
(11) "Testing Facility' or "Testing Laboratory" as defined in section 40-2(44) of
this code.
(12) "Wholesale" as defined in section 40-(46) of this code.
(k) Modification, repeal or amendment. The city council may repeal the ordinance
codified in this article, or amend it in a manner which does not result in an increase
in the tax or taxes imposed herein, without further voter approval. The city council
may likewise by ordinance adopt and add additional provisions to any other article
of this chapter and relate them to this article, or amend any existing provisions of
any article of this chapter as they may already relate to this article in any manner
which does not result in an increase in the tax or taxes imposed herein, without
further voter approval. If the city council repeals said ordinance or any provision of
this article, it may subsequently reenact it without voter approval, as long as the
reenacted ordinance or section does not result in an increase in the tax or taxes
imposed herein.
(1) Administration—Rules, regulations and guidelines. In order to aid in the city's
collection of taxes due under this article and to ensure that all commercial cannabis
businesses are taxed consistently to the best of the city's ability, the collector, with
the concurrence of the city attorney, may promulgate rules, regulations, and
guidelines, to implement and administer this article including, but not limited to rules,
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regulations, and guidelines harmonizing other provisions of this chapter with the
provisions of this article in any manner not inconsistent with the intent of this article
and which does not result in an increase in the tax or taxes imposed herein. The
collector may also, with the concurrence of the city attorney, interpret or clarify the
methodology of the tax, or any definition applicable to the tax, so long as such
interpretation or clarification (even if contrary to some prior interpretation or
clarification) is not inconsistent with the language of this article.
(m) Occasional transactions—Exemptions.
(1) The provisions of this article shall not apply to persons having no fixed
place of business within the city who come into the city for the purpose
of transacting a specific item of commercial cannabis business at the
request of a specific client or customer, incidental to a commercial
cannabis business principally established elsewhere, provided that such
person does not come into the city for the purpose of transacting such
business on more than three (3) days during any calendar year.
(2) For any person not having a fixed place of business within the city who
comes into the city for the purpose of transacting commercial cannabis
business activities, the business license tax(es) payable by such person
may be apportioned by the collector in accordance with this chapter.
(n) Reporting and remittance.
1. Beginning as set forth in subsection (q) below, and monthly thereafter,
each commercial cannabis business required to pay a tax or taxes based
on gross receipts under this article (except qualified nonprofit
organizations exempt from taxes measured by income or grossreceipts),
shall report to the city any gross receipts received during the preceding
monthly reporting period. In addition, each cannabis business (including
qualified nonprofit organizations) required to pay a tax or taxes based on
square footage shall report to the city the gross square footage of the
cannabis business' property location. Every cannabis business shall then
compute the business license taxes at both the gross receipts rate and
the gross square footage rate - prorated monthly to one -twelfth (1/12th) of
the annual tax rate amount - and shall then remit to the city the amount of
the higher of the two tax calculations due and owing during said period in
accordance with section 21-133, subsection (d). In the case of a qualified
nonprofit organization only the gross square footage computation shall be
made and the amount of such calculation shall represent the amount due
and owing during said period. All reporting and remitting made shall be
done in accordance with instructions from the collector and shall be made
using forms provided orapproved by the collector.
2. For purposes of this section, month shall mean calendar month and shall
include any fraction of a month. Taxes shall begin to accrue on the date
that a person or entity first receives a business license or other city permit
to operate as a commercial. cannabis business or upon the operative date
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of this article should a person or entity already possess a commercial
cannabis business license or other city permit to operate as a commercial
cannabis business.
3. The payment of the two thousand dollars ($2,000.00) minimum basic rate
gross receipts tax required annually for each separate branch location or
separate property location of the business in accordance with this section,
shall be made annually prior to the beginning of the fiscal year beginning
April first of the current year and expiring on the 31 st day of March of the
following year. In the case of a new commercial cannabis business the
minimum basic rate gross receipts tax shall be paid in advance prior to
any new business activity being undertaken. Every new licensee shall pay
in advance an amount equal to one-quarter ('/a) of the annual minimum
basic rate gross receipts tax, for each quarter and fraction of a quarter
remaining during the period for which the new license is issued.
(o) Delinquent date—Penalty. Any individual or entity who fails to pay the taxes required
by this article when due shall be subject to penalties and interest as set forth in
accordance with this chapter. The collector is not required to send a delinquency or
other notice or bill to any person subject to the provisions of this article and failure
to send such notice or bill shall not affect the validity of any tax or penalty due under
the provisions of this article.
(p) Business license tax certificate—Required. There are imposed upon all persons
engaged in transacting and carrying on any commercial cannabis business activity
in the city taxes in the amounts prescribed in this article. It shall be unlawful for any
person, either for him or herself or for any other person, to commence, transact or
carry on any business in the city without first having procured a business license
from the city under this chapter and having paid the taxes set forth in this article, and
without complying with any and all applicable provisions contained in this chapter.
The carrying on of any commercial cannabis business activity without complying with
all the provisions of this article shall constitute a separate violation of this chapter for
each and every day that such commercial cannabis activity is so carried on.
(q) Classification of business license assessment type—Term and renewal. The
business license issued to commercial cannabis businesses shall be classed as a
gross receipts assessment type, issued for the same term of license as set forth in
subsection 21-71(c) of this chapter and shall be subject to renewal in accordance
with sections 21-72(c), 21-73(c), and 21-77.
(r) Operative date. Upon the approval by the majority of the voters of the city at the
November 6, 2018 general election, the taxes imposed by this article shall become
operative and shall be applied by the collector upon all commercial cannabis
businesses.
Sec. 21-134. Payment of tax does not authorize unlawful business.
(a) The payment of a business tax required by this article, and its acceptance by the
city, shall not entitle any person to carry on any commercial cannabis business
unless the person has complied with all of the requirements of this code and all other
applicable laws, nor to carry on any commercial cannabis business in any building
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or on any premises in the event that such building or premises are situated in a zone
or locality in which the conduct of such commercial cannabis business is in violation
of any law.
(b) No tax paid under the provisions of this article shall be construed as authorizing the
conduct or continuance of any illegal or unlawful business, or any legal business in
an illegal manner, or any business in violation of any ordinance of the city, state or
federal law.
Sec. 21-135. Single property location; multiple state licenses; separate city business
licenses.
Sections 21-7, 21-8, and 21-9 of this chapter notwithstanding, separate city business
licenses, issuable to commercial cannabis businesses pursuant to this article, shall be
required for each separate type of commercial cannabis business activity transacted and
carried on at a single city property location for which a commercial cannabis business
may seek licensure by the state, orforwhich a state license has been approved or issued.
Sec. 21-136. Security for collection of commercial cannabis business' business license
tax.
To ensure compliance with business license tax payment requirements established
pursuant to this article, the collector shall require, beginning on the operative date of this
article, that each commercial cannabis business owner (including but not limited to each
transferee, assignee, or purchaser of a commercial cannabis business subject to the
business licensing requirements of this article) deposit within thirty (30) days such security
(per individual business license) in a form acceptable to the collector in an amount not
larger than the cannabis business owner's estimated average monthly tax liability as
determined by the collector or the sum of ten thousand dollars ($10,000.00), whichever
is the greater, Each new city commercial cannabis business licensee shall upon obtaining
their city business license(s) deposit a similar security per business license within thirty
(30) days after commencing business.
Sec. 21-137. Effect of state and federal reference/authorization.
Unless specifically provided otherwise, any reference to a state or federal statute
in this article or chapter (whether by direct citation or by definitional reference to another
chapter of this code) shall mean such statute as it may be amended from time to time,
provided that such reference to a statute herein shall not include any subsequent
amendment thereto, or to any subsequent change of interpretation thereto by a state or
federal agency or court of law with the duty to interpret such law, to the extent that such
amendment or change of interpretation would require voter approval under California law,
or to the extent that such change would result in a tax decrease. Only to the extent voter
approval would otherwise be required or a tax decrease would result, the prior version of
the statute (or interpretation) shall remain applicable; for any application or situation that
would not require voter approval or result in a decrease of a tax, provisions of the
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amended statute (or new interpretation) shall be applicable to the maximum possible
extent.
To the extent that the city's authorization to collect or impose any tax imposed
under this article is expanded or limited as a result of changes in state or federal law, no
amendment or modification of this article shall be required to conform the tax to those
changes, and the tax shall be imposed and collected to the full extent of the authorization
up to the full amount of the tax imposed under this article.
Sec. 21-138. Violation deemed misdemeanor—Penalty.
Any person violating any of the provisions of this article or any regulation or rule
passed in accordance herewith, shall be deemed guilty of a misdemeanor, and upon
conviction thereof shall be punishable bythe maximum penalties provided for in California
Penal Code Section 19. The penalties under this section are in addition to any other
penalties available pursuant to this code.
Sec. 21-139. Transferability of commercial cannabis business license.
Section 21-67 of this chapter notwithstanding, business licenses issued to
commercial cannabis businesses pursuant to this article shall be transferable or
assignable upon presentation of a valid regulatory safety permit issued in the name of the
transferee or assignee.
Sec. 21-140. Severability.
Should any provision of this article, or its application to any person or
circumstance, be determined by a court of competent jurisdiction to be unlawful,
unenforceable or otherwise void, that determination shall have no effect on any other
provision of this article or chapter or the application of this article or chapter to any other
person or circumstance and, to that end, the provisions hereof are severable.
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RESOLUTION NO. 2018-047
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA SETTING FORTH THE LANGUAGE OF A
BALLOT TITLE REGARDING WHETHER THE CITY
CHARTER SHOULD BE AMENDED TO MODERNIZE AND
REMOVE OUTDATED LANGUAGE TO REFLECT
CHANGES OR CONFLICTS IN THE CITY OR STATE LAW
CONCERNING GIFTS AND CAMPAIGN CONTRIBUTIONS
AND DESIGNATED CITY FUNDS; CREATE CONSISTENCY
IN THE MUNICIPAL CODE REGARDING BOARDS AND
COMMISSIONS; AND MOVE THE QUALIFIFCATIONS FOR
THE FINANCE DIRECTOR TO THE MUNICIPAL CODE TO
BE INCLUDED ON THE BALLOT FOR THE 2018 GENERAL
ELECTION TO BE HELD ON NOVEMBER 6, 2018
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. By Resolution No. 2018-046, the City Council of the City of Santa Ana
has called for a its general election to be held on November 6, 2018 and submitted to the
voters an amendment to sections of the Santa Ana City Charter.
Section 2. The California Elections Code directs that the City Council approve the
form of the ballot question to be submitted to the voters and the City Council of the City
of. Santa Ana desires, on its own motion, to submit to the voters of the City a. question
relating to whether the City Charter should be amended to modernize and remove
outdated language to reflect changes or conflicts in the City or State law concerning gifts
and campaign contributions and designated city funds; create consistency in the
municipal code regarding boards and commissions; and move the qualifications for the
finance director to the municipal code to be submitted to the voters at the General Election
to be held on Tuesday, November 6, 2018.
Section 3. The ballot question for the amendment called for in Resolution No.
2018-048 shall be proposed as follows, with identification as determined in accordance
with the California Elections Code:
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EXHIBIT 7
55A-61
Measure I YES
Shall the Charter be amended to: modernize and remove outdated
language to reflect changes or conflicts in the City or State law
concerning gifts and campaign contributions and designated City funds;
create consistency in the Municipal Code regarding boards or NO
commissions; and move the qualifications for the Finance Director to the
Municipal Code?
Section 4. The text of the amendments to article IX, section 425, section 610,
section 704, and section 1107 of the Santa Ana City Charter to be submitted to the voters
are attached as Exhibit A and incorporated by reference.
Section 5. The vote requirement for the measure to pass is a majority (50%+ 1) of
the votes cast.
Section 6. The City Clerk is hereby directed to transmit a copy of the measure set
forth in Section 3 above to the City Attorney, who shall prepare an impartial analysis of
the measure in accordance with Section 9280 of the Elections Code. The impartial
analysis shall include a statement indicating whether the measure was placed on the
ballot by a petition signed by the requisite number of voters or by the City Council. In
addition, the Clerk of the Council is directed to fix a deadline for submission of arguments
and rebuttals for or against the measure pursuant to Sections 9223 and 9285 of the
Elections Code, the provisions of which are hereby adopted by the City Council.
Section 7. This Resolution shall take effect immediately upon its adoption by the
City Council, and the Clerk of the Council shall attest to and certify the vote adopting this
Resolution.
ADOPTED this 3rd day of July, 2018.
Resolution 2018-047
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APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By:Il {
Laura A. Rossini
Senior Assistant City Attorney
AYES: Councilmembers Benavides, Pulido, Sarmiento, Solodo, Tinaiero,
Villeoas (6)
NOES: Councilmembers None (0)
ABSTAIN: Councilmembers None (0)
NOT PRESENT: Councilmembers Martinez (1)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2018-047 to be the original resolution adopted by the City Council of the
-City of Santa Ana on Julv 3, 2018.
Date: 7 iDLY�i.�1�• g7i
Mana D. Huizar
Clerk of the Council
City of Santa Ana
Resolution 201 M47
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Exhibit A- Charter Amendments (deletions underlined and additions in red)
ARTICLE IX. - APPOINTIVE BOARDS AND COMMISSIONS
Sec. 900. - Established; enumerated.
The City Council shall establish following enumerated appointive boards
and commissions by ordinance and shall specify in such ordinance are here
established and shall have the powers and duties of each. contained in this
article:
(a) Board of recreation and parks
(b) Planning commission
(c) Personnel board
The City Council may create by ordinance such other appointive boards or
commissions as in its judgment are required and may grant to them powers and
duties as are consistent with the provisions of this charter. The City Council, by
motion adopted by the affirmative votes of at least a majority of its members, may
appoint from time to time temporary committees as deemed advisable to render
counsel and advice to the appointing authorities on any designated matters or
subjects within the jurisdiction of such authorities.
Sec. 901. — Reserved. Appointments, removals, vacancies, terms.
(a) Except as otherwise specified in this charter, the member of each of the appointive
boards and commissions shall be appointed and may be removed, by the City
council member. At the request of a council member, this rule may be waived by a
(b) Vacancies from whatever cause arising shall be filled in the same manner. Upon a
same date as City Councilmember terms as provided in section 400 of this Charter.
Resolution 2018-047
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(c) If a member of a board or commission absents himself from two (2) regular meetings
the City, the office shall become vacant and shall be so declared by the City Council
irrespective of what seat or seats the member is appointed to by the City Council
of the term of office of council members elected at every second general election
immediately preceding that board or commission term.
(e) The City Council shall determine which members of such boards and commissions
General Election, for board and commissions with at least seven (7) members the
City Council shall designate seven (7) board and commission seats by ward, and one
required.
Sec. 901.1. — Reserved. Prohibition against serving as treasurer for campaiqn
committee.
If any member of an appointive board or commission shall become the
treasurer of a campaign committee which receives contributions for any
candidate for mayor or councilmember, his or her office shall become vacant and
shall be so declared by the City Council. Any provisions of this Article IX
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notwithstanding, no person who serves as the treasurer of a campaign
committee which receives contributions for any candidate for mavor or
councilmember shall be eligible for appointment to any appointive board or
commission.
Sec. 902. —Reserved. Appropriations therefor.
The City Council shall include in its annual budget such appropriations of
funds as, in its opinion, shall be sufficient for the efficient and proper functioning-
of
unctioningof such appointive boards and commissions.
Sec. 903.- Reserved. Existing boards and commissions.
Members of existing appointive boards and commissions at the time this
charter takes effect shall continue in office and shall perform their duties until
other provisions shall have been made as provided in this charter for the
performance of such duties and for the discontinuance of such boards or
commissions.
Sec. 904. —Reserved. Meetings; chairman.
The election of each chairman and vice-chairman shall be held at the
meetings of the respective boards and commissions during the month of July of
each year. The board or commission, in the event of a vacancy in the office of
the chairman or vice-chairman shall elect one of its members for the unexpired
term. The chairman shall have the responsibility for informing the City Council of
board, commission or committee actions or inactions and the reasons therefor.
Each board or commission other than the personnel board, shall hold a
regular meeting at least once a month with reasonable provision for attendance
by the public. The City Manager shall designate a secretary for the recording of
minutes for each of such boards and commissions who shall keep a record of its
proceedings and transactions. Each board and commission shall prescribe rules
and regulations governing its operations which shall be consistent with this
charter and shall be filed with the Clerk of the Council for public inspection. The
personnel board shall meet monthly, provided there is business on the agenda to
come before it. In the event no business is placed on the board's agenda before
the Friday preceding the tentative Wednesday meeting date, no meeting need be
held; provided however, that in no event shall more than three (3) months
intervene between meetings of such board.
Sec. 905. — Reserved. Compensation.
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The members of appointive boards and commissions shall receive such
compensation, if any, as may be prescribed by ordinance and may receive
reimbursement for necessary traveling and other expenses when on official dutv
of the City when such expenditure has been so authorized by the board or
commission and subiect to rules and regulations prescribed by ordinance on
order of the City Council.
Sec. 906. — Reserved. Attendance of witnesses; oaths and affirmations.
Each appointive board or commission shall have the same power as the
City Council to compel the attendance of witnesses, to examine them under oath,
and to compel the production of evidence before it. Each member of any such
board or commission shall have the power to administer oaths and affirmations in
any investigation or proceeding pending before such board or commission.
Sec. 907. — Reserved. Board of recreation and parks—Membership.
The members of the board of recreation and parks shall be appointed from
the qualified electors of the City. Seven (7) members shall be appointed as
required by this charter.
One additional member shall be appointed by the governing board of each
school district operating one or more elementary schools located within the Citv
of Santa Ana, except that there shall not be more than four (4) such additional
members. If more than four (4) school districts operate elementary schools within
the City, appointment of the additional members shall be made by the governing
boards of those districts having the largest assessed value of property lying
within the City of Santa Ana. No member of the board of recreation and parks
shall hold any paid office or employment in the City govemment.
Sec. 908. — Reserved. Same—Powers and duties.
The board of recreation and parks shall have power and be required to:
(a) Consider matters that may be referred to it by the City Council the City Manager,
other than administrative matters;
(b) By its own motion, make such studies and investigations as it may deem necessary
Resolution 2018-047
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Manager or the director of recreation and parks or to any or all such authorities as it
may see fit;
(c) Recommend to the City Council and the City Manager as to the acceptance or
on the sale transfer, or usage of existing or future park property;
(d) Consider the annual budget during the process of its preparation by the director of
recreation and parks and make recommendations with respect thereto to the City
Manager and the City Council;
(e) Solicit to the fullest extent possible the cooperation of school authorities and other
public and private agencies concerned with recreation and park programs of the City.
Sec. 909. — Reserved. Planning commission—Membership.
The planning commission shall consist of seven (7) members to be
appointed by the City Council from the qualified electors of the City, and no
member of said commission shall hold any paid office or employment in the City
government.
Sec. 910. — Reserved. Planning commission—Powers and duties.
The planning commission shall have power and be required to:
(a) Periodically review the City's General Plan;
(b) Make studies and plans for future civic land use including use as public
recreation facilities;
(c) Annually review the City's capital improvement program solely for consistency
with the General Plan;
(e) BV its own motion make such studies and investigations as it may deem
such authorities, as it may see fit.
Sec. 911. — Reserved. Personnel board—Membership.
The personnel board shall consist of seven (7) members to be appointed
by the City Council from the qualified electors of the City. None of the members
shall be removed from office without reasonable and sufficient cause, in
accordance with procedures as provided by ordinance. None of the members
shall hold public office or employment in the city government or be a candidate
for any other public office or position, be an officer of any local, state or national
partisan political club or organization or while a member of the personnel board
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or for a period of one (1) year after he has ceased for any reason to be a
member, be eligible for appointment to any salaried office or employment in the
service of the City.
Sec. 912. – Reserved. Same—Powers and duties.
The personnel board shall have power and be required to:
rules and regulations;
(d) Conduct public hearings on all proposed amendments to or repeal of civil
service rules and regulations in the manner as prescribed by ordinance and
advise the council of its findings in such matters within sixty (60) days.
Sec. 425. Reserved. –
portion thereof, on a recent major campaign contributor. As used herein. "recent major
preceding the date of the decision. The mayor is a councilmember for the purposes of
this section.
Sec. 610. Reserved. - Funds—General fund: stabilization fund.
All money paid into the City treasury shall be credited to and kept in separate funds in
accordance with the provisions of this charter, state law, or ordinance. For the purpose
of this charter. the "General Fund" is established as a medium of control and accounting
for City activities other than activities authorized or contemplated by special funds All
The City Council shall maintain a revolving fund to be known as the "Stabilization Fund"
for the purpose of placing the payment of running expenses of the City during the fiscal
Resolution No. 2018-047
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Sec. 704. — Reserved. Director of finance; qualifications, powers and duties.
direction of the City Manaqer;
(b) Supervise and be responsible for the disbursement of all moneys and have control
correctness of such charges;
(d) Settle claims demands, or other charges, including the issuing of warrants
therefor;
at such intervals as he may deem expedient;
financial condition of the City, and as of the end of each fiscal year, submit a complete
revenues and receipts from whatever source• have custody of all public funds belonging
to or under the control of the City or any office department, or other agency of the City
Sec. 1107. —Reserved. Gifts to officers and employees prohibited.
It shall be unlawful for any person or organization that is financially interested in any
decision pending action by any agency, officer or employee of the City or in any
contract to which the City is a party to make any gifts aggregating in value more than
Resolution No. 2018-047
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the general public. No gift is unlawful which is similarly made or offered to a significant
Resolution No. 2018-047
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RESOLUTION NO. 2018-056
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA SETTING FORTH THE LANGUAGE OF A
BALLOT TITLE FOR A CITY CHARTER AMENDMENT
REGARDING WHETHER CITY CHARTER SECTION 400
SHALL BE AMENDED REQUIRING CITY
COUNCILMEMBER ELECTION FROM HIS OR HER
RESIDENCY WARD AND ONLY BY REGISTERED
VOTERS OF THAT WARD, INSTEAD OF CITY
COUNCILMEMBER ELECTION BY REGISTERED VOTERS
OF THE ENTIRE CITY, AND TO REQUIRE WARD
BOUNDARIES TO BE DRAWN IN ACCORDANCE WITH
LAW, TO BE INCLUDED ON THE BALLOT FOR THE 2018
GENERAL MUNICIPAL ELECTION TO BE HELD ON
NOVEMBER 6, 2018
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. Changing from at -large City Councilmember elections to ward -based
City Councilmember elections requires a Charter amendment approved by the voters.
Section 2. Ward boundaries should be drawn and adjusted in accordance with
the requirements of state and federal law.
Section 3. The City Council has considered the issue of changing from at -large
City Councilmember elections to by -district City Councilmember elections and has
determined that the voters of the City of Santa Ana should decide whether City
Councilmembers should be elected using the by -ward voting method rather than the at -
large voting method, and requiring ward boundaries to be drawn and adjusted according
to the requirements of state and federal law.
Section 4. There is a General Municipal Election scheduled for November 6,
114111-1111
Section 5. The California Elections Code directs that the City Council approve
the form of the ballot question to be submitted to the voters and the City Council of the
City of Santa Ana desires, on its own motion, to submit to the voters of the City a
question relating to whether City of Santa Ana Charter section 400 shall be amended
requiring City Councilmember election from his or her residency ward and only by
registered voters of that ward, instead of City Councilmember elections by registered
voters of the entire City,
Section 6. Under the provisions of the Charter of the City of Santa Ana and the
Califomia Elections Code, at the General Municipal Election to be held on November 6,
EXHIBIT 8
Resolution No. 2018-056 4
Page 1 of 4 55A-73
2018, the following proposed amendments to the City Charter shall be submitted to the
voters:
MEASURE % REQUIRE BY -WARD NOMINATION AND YES
ELECTION OF COUNCILMEMBERS, AND REDRAWING OF WARD
BOUNDARIES TO COMPLY WITH STATE AND FEDERAL LAW
Shall City of Santa Ana Charter sections 101.2 and 400 be amended NO
requiring City Councilmember election from his or her residency ward
and only by registered voters of that ward, instead of City
Councilmember elections by registered voters of the entire City, with
ward boundaries to be drawn as required by law?
Section 7. The text of the Charter amendment to Charter sections 101.2 and 400
to be submitted to the voters is attached as Exhibit A and incorporated by reference.
Section 8. The vote requirement for the measure to pass is a majority (50% +
1) of the votes cast.
Section 9. The City Clerk is hereby directed to transmit a copy of the measure set
forth in Section 2 above to the City Attorney, who shall prepare an impartial analysis of
the measure in accordance with Section 9280 of the Elections Code. The impartial
analysis shall include a statement Indicating whether the measure was placed on the
ballot by a petition signed by the requisite number of voters or by the City Council. In
addition, the Clerk of the Council is directed to fix a deadline for submission of
arguments and rebuttals for or against the measure pursuant to Sections 9223 and
9285 of the Elections Code, the provisions of which are hereby adopted by the City
Council.
Section 10. This Resolution shall take effect immediately upon its adoption by the
City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this 17th day of July, 2018.
Resolution No. 2018-056
Page 2 of 4
55A-74
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By: QL.xs,o-- k. r4 6' -L
Laura A. Rossini
Senior Assistant City Attorney
AYES: Councilmembers Benavides, Pulido. Sarmiento, Solorio,
Tinaiero, Villeaas (6)
NOES: Councilmembers None (0)
ABSTAIN: Councilmembers None (0)
NOT PRESENT: Councilmembers Martinez (1)
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No.
2018 -056 to be the original resolution adopted by the City Council of the City of Santa
Ana on July 17, 2018.
Date: 7��a%a o/$ 44419-
Maria D. Huizar
Clerk of the Council
City of Santa Ana
Resolution No. 2018-056
Page 3 of 4 55A-75
Exhibit A -City of Santa Ana Charter Sections 101.2 and 400
(Deleted language is stricken and new language is in red)
Sec. 101.2
Ward boundaries shall not be altered except as reasonably necessary to comply with
the requirements of state and federal law and to promote greater equality of population
among the wards when such necessity is shown by the most recent federal decennial
census, or by more current census data certified by the City Council as sufficiently
reliable and detailed to serve as a basis for ward boundary alteration, or by annexation
or consolidation of territory. Such boundary alteration shall be made only by ordinance
adopted by affirmative vote of at least two-thirds (2l3 ) of lne cull membership of the
City Council in accordance with section 101.4. Any such ordinance adopted within one
hundred twenty (120) days immediately preceding any election of council members
shall not become effective until the day following such election.
Sec. 400. - Number, selection and terms of members.
The City Council shall consist of seven (7) members elected at the times and in the
manner provided in this charter, each of whom, except for the mayor, shall serve a term
of four (4) years. The term of each member shall begin at 6:00 p.m. on the second
Tuesday of December following certification of election results, and each shall serve
except as otherwise provided for in this charter, until his or her successor Is elected and
qualified. Each office of councilmember shall be a separate office and one (1) of such
offices shall be assigned to each of the wards of the City. Councilmembers shall be
residents of their respective wards, and nominated and elected only by the voters of
their respective wards. The Mayor shall be elected from the City at large. Gandidates
10F eaGh effiGe 91! GaunGlimembeF Other n the rna-1-1 L-111111 -1-4-A I'- M Such.
ward -by -the -electors of s
electer&e� bebythewete-ef-the-elesters
Resolution No. 2018-056
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