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HomeMy WebLinkAboutPRESENTATION - 75ACOMMERCIAL CANNABIS ORDINANCE AMENDMENTS ORDINANCE AMENDMENT NO. 2019-01 August 20, 2019 City Council Meeting Evaluating the City's cannabis program for best practices requires a proactive approach with ordinance amendments Regular review of ordinances helps the City: Ensure that Santa Ana maintains its competitiv( position in the region Remain compliant with applicable State Streamline its imp taxation aws Financial updates Taxes and security deposits Vertical/horizontal business integration Responses to State level changes Self-examination to ensure best practices Reviewing the code to ensure internal consistency and implementation consistency with current practices Facilitate cannabis business operations in Santa Ana Support a regulatory ordinance, which location of multiple cannabis business the same site allows co - activities Establish a maximum security deposit requirement of $10,000 for integrated activities at {Alternate Square Footage Calculation using gross allocated SF vs. gross SF for vertically and horizontally integrated cannabis businesses Reduce tax rates for testing laboratories from 5% to 2% of gross receipts State -Level Changes Improve patient access cannabis by amending years old to medicinal purchasing a Allow microbusiness licenses for co -located businesses Best Practices Create badge "portability" by allowing screened employees to work at multiple cannabis businesses within the City M T preOKW - Remove zoning distinction between volatile & non-volatile cannabis manufacturing M Operating Agreement is required for each commercial cannabis business Emphasize Community Benefits and Investments Local sourcing of materials and labor Community engagement programs Sustainable business practices Creation of opportunities for disadvantaged communities through job creation, community investments, mentorship and education programs, and ownership pathway opportunities Revisions to this requirement will strengthen and enhance commitments to the community chieve measurable results critical to social equity goals 6 Require 50% local hire Require submission of a plan for community reinvestment & commitments identifying: Equitable ownership and employee investment opportunities Social equity goals and implementation measures Job opportunities & coordinating with City's Workfor Development Program A commitment and assistance to implement future City prog measures should the competitive licensing program be expanded Qualifying low-income and resident applicants Expedited processing & renewal assistance Potential deferral of fees Staff and technical assistance 7 Reduce processing background checks process delays by requiring during the Phase 2 Matches existing requirements in Chapter 18 (medical marijuana collectives/cooperatives) Set annual audit deadline to September 30th for medicinal and adult -use businesses MONEMNOW 0