HomeMy WebLinkAbout2022-080 - The Community Benefit, Sustainable Business Practices, and Social Equity PlanRESOLUTION NO. 2022-080
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA ESTABLISHING: (1) A MAP OF COMMERCIAL
CANNABIS ELIGIBLE AREAS IN WHICH COMMERCIAL
CANNABIS BUSINESSES AS DEFINED AND REGULATED
BY CHAPTERS 21 AND 40 OF THE SANTA ANA MUNICIPAL
CODE MAY OPERATE; (2) THE NUMBER OF ANNUALLY
PERMISSIBLE TEMPORARY CONSUMPTION EVENTS;
AND (3) THE COMMUNITY BENEFIT, SUSTAINABLE
BUSINESS PRACTICES, AND SOCIAL EQUITY PLAN
TEMPLATE
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. On December 9, 2014, following voter approval, the City Council adopted
Ordinance No. NS-2864 to regulate the establishment, operation, and taxation of medical
marijuana collectives and cooperatives in the City. The ordinance was originally known as
and subsequently became referred to as "Measure BB."
B. 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 specified personal use and cultivation of marijuana
for adults 21 years of age or older.
C. 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.
D. On November 21, 2017, the City Council adopted Ordinance No. NS-2929,
creating Chapter 40 of the Santa Ana Municipal Code and 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.
E. Since its inception, Chapter 40 has required all commercial cannabis business
operators to engage in providing community benefits and sustainable business practices
Resolution No. 2022-080
Page 1 of 5
through execution of an operating agreement and accompanying Community Benefit and
Sustainable Business Practices plan, with the intent of ensuring commercial cannabis
businesses remain engaged in providing direct benefits to the Santa Ana community.
F. In 2018, the City Council adopted Ordinance Nos. NS-2941 and NS-2942,
allowing and regulating commercial cannabis testing laboratories, and Ordinance No. NS-
2944, allowing commercial cannabis cultivation, manufacturing, and distribution activities.
G. The City of Santa Ana desires to remain at the forefront of commercial cannabis
by allowing and regulating commercial cannabis business activities, routinely updating
and amending its ordinances, and establishing commercial cannabis gross receipts tax
rates that are competitive and provide for the needs of the Santa Ana community.
H. Measure BB and subsequent ordinances specified that commercial cannabis
business activity is permitted in the City's light and heavy industrial zoning districts (M1
and M2) and must be located 1,000 feet from schools, parks, and properties zoned for
residential uses. Proposition 64 subsequently set a minimum separation of 600 feet but
allowed local jurisdictions to adopt lower or higher separation requirements.
I. The City Council recognizes those entities that have remained on the Medicinal
Cannabis Waitlist pursuant to Santa Ana Municipal Code Section 40-104, and those entities
that were scored as part of the merit -based selection process in Section 40-9.
J. Following redevelopment of industrial properties east of the Costa Mesa (SR-
55) Freeway, the City Council adopted a map of commercial cannabis eligible areas on
March 20, 2018 in which commercial cannabis business activities could locate subject to
full compliance with applicable local, County, and State regulations.
K. Since the last adoption of the map, the increasing demand for industrial
properties in Santa Ana following the COVID-19 pandemic has reduced the availability of
commercial cannabis eligible properties in the industrial zoning districts, creating strain
on cannabis business applicants, other business types, tenants, and property owners. In
order to offer clarity and expansion opportunities to commercial cannabis business
owners, the City desires to update the map to specify the exact parcels on which
commercial cannabis business activities are permitted. The map is based on the original
1,000-foot buffer from sensitive land uses, including schools, parks, and residential
zoning districts.
L. The City of Santa Ana desires to maintain commercial cannabis businesses in
locations adequately buffered from sensitive land uses such as schools, parks, and
properties zoned for residential uses, while maintaining a sufficient amount of properties
eligible to apply for and operate a commercial cannabis business.
M. The City of Santa Ana has a compelling interest in ensuring that cannabis is
not sold in an illicit manner, in protecting the public health, safety and welfare of its
residents and businesses, in preserving the peace and quiet of the neighborhoods in
Resolution No. 2022-080
Page 2 of 5
which these businesses may operate, and in providing access to safe, locally produced
and retailed, and tested cannabis to residents and visitors.
N. The rise in commercial cannabis business activity in California, coupled with an
increase in consumer base both Citywide and regionally, requires the City to adopt a
proactive approach to allowing and regulating commercial cannabis business activity,
including ensuring that consumers of commercial cannabis retail products are educated
in responsible consumption and have safely designed and monitored settings in which
retail cannabis may be purchased and consumed.
O. The City Council has held a duly noticed public hearing on September 20, 2022
in connection with consideration and adoption of this resolution, during which comments
were provided by the City Council and members of the public on additional retail storefronts,
reduction of retail tax rates, community benefits and social equity, the map of commercial
cannabis eligible areas, and priority processing for commercial cannabis consumption
lounges that opt in to social equity measures.
Section 2. Pursuant to the California Environmental Quality Act ("CEQA") and the
State CEQA Guidelines, the adoption of the accompanying ordinance and accompanying
resolutions is exempt from further CEQA analysis pursuant to CEQA Guidelines Section
15061(b)(3), as the proposed amendments address business activities already permitted in
the City and will not result in any significant physical effect on the environment. Because
Santa Ana is a built -out, urbanized community, and the uses permitted and regulated by the
cannabis ordinance are already allowed by the underlying zoning designations and the
development standards in Chapter 41 (Zoning) of the Santa Ana Municipal Code, the
updates to the ordinance will not lead to any cumulative or unforeseen impacts. A Notice of
Exemption, Environmental Review (ER) No. 2022-15, was filed for these actions within five
days of first reading, which took place on September 20, 2022
Section 3. The City Council hereby establishes the map of commercial
cannabis eligible areas, included here as Attachment A, and referenced in Santa Ana
Municipal Code Sections 40-2, 40-5, and 40-6. This map reflects the original 1,000-foot
distance from properties containing schools, parks, and properties zoned for residential
uses, and includes eligible properties in the Light Industrial (M1), Heavy Industrial (M2),
and select Specific Development and Professional zoning districts of an industrial nature,
but is now parcel -specific to offer clarity to property and business owners.
Section 4. The City Council hereby establishes the maximum number of
temporary consumption events, as defined by Santa Ana Municipal Code Section 40-2
(39.2) and regulated by Santa Ana Municipal Code Section 40-8 (11), as two (2) per
commercial cannabis retail business per calendar year.
Section 5. The City Council hereby adopts the Community Benefit, Sustainable
Business Practices, and Social Equity Plan template, attached hereto as Attachment B.
Resolution No. 2022-080
Page 3 of 5
Section 6. This Resolution shall take effect upon the effectiveness of Ordinance
No. NS-3026 on January 1, 2023.
ADOPTED this 4th day of October, 2022.
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:l�
vml—
Jo(/n Funk
Chief Assistant City Attorney
AYES:
Councilmembers
Hernandez Lopez Mendoza Penaloza
Phan
Bacerra Sarmiento (7)
NOES:
Councilmembers
None
(0)
ABSTAIN:
Councilmembers
None
(0)
NOT PRESENT:
Councilmembers
None
(0)
Resolution No. 2022-080
Page 4 of 5
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2022-
080 to be the original Resolution adopted by the City Council of the City of Santa Ana on
October 4, 2022.
Date: tol�lZo�z �- 54 �2�
Clerk of the Council
City of Santa Ana
Resolution No. 2022-080
Page 5 of 5
Attachment A
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building, the entire building remains eligible. Map Creation Date: 9/13/2022
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Attachment B
Planning and Building Agency
Planning Division
20 Civic Center Plaza
P.O. Box 1988
Santa Ana, CA 927022702 Commercial Cannabis Business
(714) 647-5804 Community Benefit, Sustainable Business
www.santa-ana.org Practices, and Social Equity Plan
This Plan is a public record
Section 1: Business Information
Table 1
Item
Information
Business Information
Business Legal Name
Business Doing Business As (DBA)
Business Address in Santa Ana
Regulatory Safety Permit (RSP) No.
RSP Issuance Date
RSP Expiration Date
Business Owner Name
Contact Information
Primary Contact Person Name
Primary Contact Person Phone
Primary Contact Person Email
Section 2: Community Benefit, Sustainable Business Practices, and Social
Equity Plan
Pursuant to Santa Ana Municipal Code (SAMC) Section 40-1(C), all commercial cannabis
businesses operating in Santa Ana are required to maintain a Community Benefit,
Sustainable Business Practices, and Social Equity Plan ("Plan") on file with the City in a
format acceptable to the Executive Director of the Planning and Building Agency. Failure
to maintain a plan and satisfy the obligations specified therein will result in review and
possible suspension, revocation, citation, or other enforcement action. For more
information on the City's requirements for Community Benefit, Sustainable Business
Practices, and Social Equity, please review SAMC Section 40-1(C).
Beginning January 1, 2023, all commercial cannabis businesses are required to commit
to spending one-half of one percent (0.50%) of gross reported earnings for the previous
reporting year towards community benefit, sustainable business practices, and social
equity obligations. Beginning January 1, 2024, all commercial cannabis businesses are
required to commit to spending one percent (1.00%) of gross reported earnings for the
previous reporting year towards community benefit, sustainable business practices, and
social equity obligations.
Note: This is not a Regulatory Safety Permit (RSP) to legally operate a Commercial Cannabis Business. DO NOT
OPERATE unless a valid RSP is issued.
Page 1 of 5
Planning and Building Agency
Planning Division' r
20 Civic Center Plaza
(714) 647-5804 Community Benefit, Sustainable Business
www.santa-ana.org Practices, and Social Equity Plan
This Plan is a public record.
Required annual spending must be equitably distributed among the three Section
categories described in Table 2 and is subject to review and approval by the City. A Plan
that does not indicate satisfactory and equitably -distributed commitments will be rejected
and corrections issued to the business owner. Approval and renewal of a Regulatory
Safety Permit is contingent upon Plan approval.
Please utilize the following sections to detail the business's commitments to community
benefits, sustainable business practices, and social equity measures. If additional space
is required, please attach supplemental sheets to this form using the same format as
Table 2 of this packet.
Table 2
Item
Frequency or
Equivalent
Detailed Description of
Timeframe
Monetary Value
Measure or Activity
Section 1: Community Benefits*
CB-1. Local hiring
(Required)'
CB-2. Local sourcing
(Required )2
CB-3. Contributions
to local charitable or
not -for -profit
organizations
(Required)3
' Describe measures to hire managers, staff, volunteers from within the City of Santa Ana. Details shall be provided on
local job posting methods, and annual data shall be provided indicating the means utilized to advertise jobs and on the
amount of managers, staff, and volunteers residing in Santa Ana. Beginning January 1, 2023, the cannabis retail
business owner must demonstrate that twenty percent (20%) of its employees reside within the City of Santa Ana, then
beginning January 1, 2024, the cannabis retail business owner must demonstrate that forty percent (40%) of its
employees reside within the City of Santa Ana
2 Describe measures to obtain construction materials and inventory from within the City of Santa Ana. Details shall be
provided on local posting methods, and annual data shall be provided indicating the means utilized to source locally
from businesses in Santa Ana.
3 Describe measures to engage with local charitable or not -for -profit organizations located within Santa Ana or carrying
out operations in Santa Ana. Measures may include volunteering, financial contributions, or material contributions.
Describe the frequency and value of all such contributions.
Note: This is not a Regulatory Safety Permit (RSP) to legally operate a Commercial Cannabis Business. DO NOT
OPERATE unless a valid RSP is issued.
Page 2 of 5
Planning and Building Agency
Planning Division' r
20 Civic Center Plaza
(714) 647-5804 Community Benefit, Sustainable Business
www.santa-ana.org Practices, and Social Equity Plan
This Plan is a public record.
Item
Frequency or
Equivalent
Detailed Description of
Timeframe
Monetary Value
Measure or Activity
Section 2: Social Equity Measures (Beginning January 1, 2025) **
SE-1. Employment
compensation for full-
time employees
above minimum
wage (Required)4
SE-2. Measures to
hire part- and full-
time staff from
disadvantaged
communities
(Required)5
SE-3. Expenditures
on safety -related
equipment, training,
and services
(Required)6
4 Employment compensation for the full-time employees of the qualified taxpayer. For purposes of this Plan,
"employment compensation" means wages paid to full-time employees who are paid no less than 115 percent
(beginning January 1, 2024) and no less than 120 percent (beginning January 1, 2026) of the applicable minimum
wage. The calculation of wages may include the monetary value to the full-time employee of employer -provided group
health insurance benefits, childcare benefits, employer contributions to employer -provided retirement benefits, or
employer contributions to pension benefits.
5 Includes measures that the business will take to recruit, hire, and retain employees who reside in low-income census
tracts in Santa Ana where at least fifty-one percent (51 %) of the current residents have a household income at or below
eighty percent (80%) of the Orange County Area Median Income (AMI), or from Environmental Justice communities as
specified by the General Plan.
6 For purposes of this Plan, "safety -related equipment, training, and services" means equipment primarily used by
employees of cannabis licensees to ensure their personal and occupational safety or the safety of customers of the
cannabis licensees; training for non -management employees on workplace hazards, including, but not limited to,
training required pursuant to subparagraph (A) of paragraph (11) of subdivision (a) of Section 26051.5 of the California
Business and Professions Code as amended from time to time; and services, including, but not limited to, safety audits,
security guards, security cameras, and fire risk mitigation.
Note: This is not a Regulatory Safety Permit (RSP) to legally operate a Commercial Cannabis Business. DO NOT
OPERATE unless a valid RSP is issued.
Page 3 of 5
Planning and Building Agency
Planning Division' r
20 Civic Center Plaza
(714) 647-5804 Community Benefit, Sustainable Business
www.santa-ana.org Practices, and Social Equity Plan
This Plan is a public record.
Item
Frequency or
Equivalent
Detailed Description of
Timeframe
Monetary Value
Measure or Activity
SE-4. Workforce
development and
safety training for
employees
(Required)'
Section 3: Sustainable Business Practices***
SP-1. Energy Saving
(Required)
SP-2. Water Saving
(Required)
*Additional measures are permissible, such as direct engagement with local charitable or not -for -profit
organizations, volunteer activities, etc.
**Social equity measures are intended to result in improvements to disadvantaged communities, aiding
those systemically and negatively affected by prior criminal or misdemeanor drug convictions, and
creating new opportunities among owners, managers, employees, and other staff employed by the
cannabis industry.
***Minimum "green" technologies such as energy and water saving measures are required. However,
other measures are permissible, such as transit and carpool incentives, healthy living practices, etc.
Workforce development and safety training for employees of the qualified taxpayer. For purposes of this Plan,
"workforce development" includes, but is not limited to, joint labor management training programs, membership in a
joint apprenticeship training committee registered by the Division of Apprenticeship Standards, and a state -recognized
high road training partnership as defined in Section 14005 of the California Unemployment Insurance Code as amended
from time to time.
Note: This is not a Regulatory Safety Permit (RSP) to legally operate a Commercial Cannabis Business. DO NOT
OPERATE unless a valid RSP is issued.
Page 4 of 5
Planning and Building Agency
Planning Division
20 Civic Center Plaza
(714) 647-5804 Community Benefit, Sustainable Business
www.santa-ana.org Practices, and Social Equity Plan
This Plan is a public record
Section 3: Acknowledgement
I, , primary contact for business
owner for the commercial cannabis business named located at
in Santa Ana,
California, hereby acknowledge that the information presented on this Community
Benefit, Sustainable Business Practices, and Social Equity Plan is accurate and
enforceable by the City of Santa Ana pursuant to Chapter 40 of the Santa Ana Municipal
Code as a condition of Regulatory Safety Permit issuance, renewal, and maintenance of
the Regulatory Safety Permit in good standing. I also understand that documentation of
gross reported annual earnings from the prior reporting year and satisfaction of these
commitments is required as part of the annual Regulatory Safety Permit renewal process.
Primary Contact Date
Signature
Business Owner Date
Signature
Approved:
Executive Director Executive Director Date
Name Signature
Note: This is not a Regulatory Safety Permit (RSP) to legally operate a Commercial Cannabis Business. DO NOT
OPERATE unless a valid RSP is issued.
Page 5 of 5