HomeMy WebLinkAbout19D - ACCEPT VERIFICATION VOTER INITIATIVEiA ry',I
REQUEST • •
COUNCIL ACTION
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COUNCIL DATE:
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APRIL 15, 2014
TITLE:
ACCEPT CERTIFICATE OF
VERIFICATION AND INSUFFICIENCY -
VOTER INITIATIVE MEASURE:
AUTHORIZING REGULATED
OPERATION OF MEDICAL MARIJUANA
FACILITIES
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 18t Reading
❑ Ordinance on 2 "d Reading
❑ Implementing Resolution
❑ Set Public Hearing
For
CONTINUED TO
FILE NUMBER
1. Accept the Certificate of Verification and Insufficiency issued by the County of Orange
Registrar of Voters regarding the Medical Marijuana Control Act Initiative.
2. Approve reimbursement to the County of Orange, Registrar of Voters Office in the
amount of $1,700 for verifying signatures on the petition.
BACKGROUND
The procedures for placing an initiative to enact an ordinance on the ballot are established
in California Elections Code §9200 -9226 and is the right of the voters to bring upon for
consideration.
On January 2, 2014, the City of Santa Ana, Clerk of the Council, received a voter initiative
petition by the Proponents to Support Medical Marijuana Control Act (Exhibit 1). As
required by the California Elections Code, the City Attorney's Office provided a title and
summary (Exhibit 2).
The Proponents of the initiative published the Notice of Intent to Circulate and were legally
permitted to circulate the petition between January 8, 2014 and July 1, 2014.
The petition required 8,738 valid signatures to qualify for the 2014 General Election ballot.
At the time the Notice of Intention was filed, the voter registration report on file with the
California Secretary of State revealed 87,337 registered voters within Santa Ana. California
Elections Code § 9215 requires that an initiative petition be signed by at least ten percent
(10 %) of the total number of eligible registered voters to qualify for the next General
Municipal Election.
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Medical Marijuana Control Act - Petition
April 15, 2014
Page 2
On March 17, 2014, the proponents of the initiative petition filed their signed petitions. The
Clerk of the Council Office conducted a prima facie review and raw count of the petition and
determined that a sufficient number of signatures to proceed, 9,706 total tally. On March
18, 2014, the petition was delivered to the County of Orange Registrar of Voters Office for
signature verification. The Orange County Registrar of Voters Office used the random
sample method of verifying 500 signatures on the petition, permissible and consistent with
the California Elections Code. Based on this sample, the Registrar determined that of the
500 signatures examined, 262 were valid (52.4 %) and 238 were invalid (47.6°/x). Therefore,
the Orange County Registrar of Voters Office determined that an insufficient number of
valid signatures were obtained; thus disqualifying the petition for the 2014 General
Municipal Election. The Certificate of Verification is attached as Exhibit 3.
ANALYSIS
The initiative process in the City of Santa Ana is conducted in accordance with the
California Elections Code. Pursuant to Elections Code Sections 9114 and 9211, the Clerk of
the Council is submitting the Certificate of Verification to the City Council for approval; no
further action is required.
FISCAL IMPACT
The cost for the signature verification of the initiative by the Orange County Registrar of
Voters Office is $1,700; funds are available in Account No. 011 - 05015 - 62300,
Maria D. Huizar,
Clerk of the Council
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance & Mgmt Services Agency,
Attachments: Exhibit 1 — Proposed Initiative
Exhibit 2 — Title and Summary
Exhibit 3 — Certificate of Verification
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EXHIBIT 1
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INI'T'IATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
Committee of proponents, who are registered voters of the City of Santa Ana, sponsoring the
petition;
Cheyenne Kutil Dennis Kutil
TEXT OF THE PROPOSED MEASURE:
MEDICAL MARIJUANA CONTROL ACT:
Pursuant to, and consistent with California taw concerning medical marijuana, the City of Santa
Ana shall enact an ordinance amending in its entirety Article XIII of Chapter 18 of the Santa
Ana Municipal Code, in order to impose strict regulations on medical marijuana collectives to
protect the health, safety, and welfare of the community,
WHEREAS, the Compassionate Use Act ( "CUA "), adopted by California voters in
1996, and the Medical Marijuana Program Act ( "MMPA "), enacted by the State Legislature in
2003, decriminalized the cultivation and use of marijuana by seriously ill individuals upon
a physician's recommendation and provided California's qualified patients and their primary
caregivers with specified immunities under state law, thereby helping to ensure that
qualified patients and their primary caregivers, who possess and use marijuana for medical
purposes, are not subject to criminal prosecution or sanction;
WHEREAS, the Santa Ana Police Department ( "SAPD ") has reported that at one
time there were over sixty (60) marijuana dispensaries in the City of Santa Ana and that as the
number of marijuana, dispensaries and commercial growing operations proliferated without
sufficient legal oversight, the City and its neighborhoods have experienced negative secondary
effects, including an increase in crime at certain locations associated with unregulated
marijuana collectives;
WHEREAS, there presently are no ordinances in the City of Santa Ana specifically
regulating or monitoring the location, zoning standards, or other aspects of the locations and
facilities where medical marijuana will be dispensed to eligible persons under state law;
WHEREAS, medical marijuana facilities must operate with reasonable regulation, to
ensure that those who are seriously ill residents of the City benefit from the palliative effects of
medical marijuana have access they are provided under state law;
WHEREAS, by implementing a fair and reasonable registration process for medical
marijuana collectives, the City will be able to maintain order while avoiding undue burdens on
its already strained financial resources;
WHEREAS, the City has a substantial and clear interest in ensuring that medical
marijuana is distributed in an orderly manner, and in protecting the public health, safety and
welfare of its residents, its businesses, the neighborhoods in which medical marijuana collectives
operate, while ensuring compassionate access by seriously ill residents to medical marijuana in
accordance with the CUA and the MMPA;
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WHEREAS, the regulations in this initiative do not interfere with a qualified patient's
right to use medical marijuana as authorized under California law, nor do they criminalize the
possession or cultivation of medical marijuana by specifically defined classifications of persons,
as authorized under California law;
WHEREAS, medical marijuana collectives shall comply with all provisions of the Santa
Ana Municipal Code ( "Code "), California law, and all other applicable local laws; nothing in this
initiative purports to permit activities that are otherwise illegal under state or local law;
WHEREAS, this initiative is not intended to conflict with federal or state law, nor is it
intended to respond to or invite litigation over any unresolved legal questions posed by the
California Attorney General or by case law regarding the scope and application of state law; it is
intended that this initiative be interpreted to be compatible with federal and state enactments and
in furtherance of the public purposes that those enactments encompass;
NOW, THEREFORE,
THE PEOPLE OF THE CITY OF SANTA ANA DO ORDAIN AS FOLLOWS:
SECTION 1.
Article X111 of Chapter 18, Part I1 of the Santa Ana Municipal Code is amended in its entirety to
read:
ARTICLE XIII
MEDICAL MARIJUANA
SEC. 18 -610. PURPOSES AND INTEN'T'.
It is the purpose and intent of this Article to limit the maxiinum number and concentration of
medical marijuana collectives in the City, to provide needed tax revenue to the City, and to
regulate the operation of medical marijuana collectives in order to ensure the health, safety and
welfare of the residents of the City of Santa Ana. The regulations in this Article, in compliance
with the Compassionate Use Act, the Medical Marijuana Program Act, and the California Health
and Safety Code do not interfere with a qualified patient's right to use medical marijuana as
authorized Linder California law, nor do they criminalize the possession or cultivation of medical
marijuana by specifically defined classifications of persons, as authorized under California law.
Medical marijuana collectives shall comply with all provisions of the Santa Ana Municipal Code
( "Code "), California law, and all other applicable laws. Nothing in this Article purports to
permit activities that are otherwise illegal under federal, state or local law. This Article is not
intended to conflict with federal or state law, nor is this Article intended to respond to or invite
litigation over any unresolved legal questions posed by the California Attorney General or by
case law regarding the scope and application of state law. It is intended that this Article be
interpreted to be compatible with federal and state enactments and in furtherance of the public
purposes that those enactments encompass.
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SEC. 18 -611. DEFINITIONS
A. The following phrases and words, when used in this section, shall be construed as defined.
below. Words and phrases not defined here shall be. construed as defined in Santa Aria
municipal code or state law.
"Building" means any structure having a roof supported by columns or walls, for the housing,
shelter or enclosure of persons, animals, chattels, or property of any Kind.
"Live Scan" means a system for inkless electronic fingerprinting and the automated background
check developed by the California Department of Justice ( "DOJ") which involves digitizing
fingerprints and electronically transmitting the fingerprint 'image data along with personal
descriptor 'information to computers at the DOJ for completion of a criminal record check; or
such other comparable inkless electronic fingerprinting and automated background check process
as determined by the City Council.
"Live Scan appl'icat'ion" means a form developed by the City Clerk to request Live Scan services
and to contain information relevant to the Live Scan process.
"Location" means any parcel of land, whether vacant or occupied by a building, group of
buildings, or accessory buildings, and includes the buildings, structures, yards, open spaces, lot
width, and lot area.
"Manager" means any person with responsibility for the establishment, organization,
registration, supervision, or oversight of a medical marijuana collective, including but not limited
to any person who performs the functions of president, vice president, board member, director,
owner, operating officer, financial officer, secretary, or treasurer of the medical marijuana
collective.
"Marijuana" shall be construed as defined in California Health and Safety Code Section 11018
and further shall specifically include any product that contains marijuana or a derivative of
marijuana.
"Medical marijuana collective" means the following; an unincorporated or incorporated entity or
association of qualified patients and /or primary caregivers and /or persons with identification
cards, who provide money and in -kind contributions, reimbursernents, and reasonable
compensation towards the aforementioned entity's actual expenses for activities including, but
not limited to; planting, cultivation, harvesting, transporting, manufacturing, compounding, .
converting, processing, preparing, storing, packaging, providing and /or retail sales of medical
marijuana. A medical marijuana collective may provide medical marijuana, products, services
and assistance to qualified patients, persons with a medical marijuana identification card (as set
forth in the MMPA), or the primary caregiver of such persons. Medical marijuana collectives
may assist with the acquisition of skills necessary to cultivate or provide marijuana for medical
purposes in compliance with State Law. A medical marijuana collective includes any facility,
building, structure or location, whether permanent, or temporary, where marijuana is made
available, sold, given away, distributed, or otherwise provided in accordance with health and
Safety Code section 11362.5 et seq. A medical marijuana collective includes medical marijuana
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"cooperatives" as defined in Santa Ana Municipal Code section 41 -121 and marijuana delivery
services.
(1) "Medical marijuana collectives" shall not include, nor be interpreted to include, any
of the following:
a. Any location which is a legal dwelling zoned exclusively for residential use
and not permitted for any commercial activity where three (3) or less people
who reside at a property cultivate marijuana.
b. The location of any clinic licensed pursuant to Chapter 1 (commencing
with Section 1200), a health care facility licensed pursuant to Chapter 2
(commencing with Section 1250), a residential care facility for persons with
chronic life- threatening illness 'licensed pursuant to Chapter 3.01
(commencing with Section 1.568.01), a residential care facility for the elderly
licensed pursuant to Chapter 3.2 (commencing with Section 1569), a hospice,
or a home health agency licensed pursuant to Chapter 8 (commencing with
Section 1725), any facility specified in Division 2 of the California Health and
Safety Code where: (i) a qualified patient or person with an identification carol
receives medical care or supportive services, or both, from the clinic, facility,
hospice, or home health agency; and (ii) the owner or operator, or one of not
more than three employees designated by the owner or operator, of the clinic,
facility, hospice, or home health agency has been designated as a primary
caregiver pursuant to California Health and Safety Code Section I I362.7(d)
by that qualified patient or person with an identification card.
"Premises" means the space in any buildings of a medical marijuana collective together with the
spaces within any structures, yards, open spaces, lot width, and lot area at a location that is
occupied or used in the operation of the medical marijuana collective.
"Reasonable compensation" means compensation commensurate with reasonable wages and
benefits paid to employees of IRS - qualified non -profit organizations who have similar job
descriptions and duties, required level of education and experience, prior individual earnings
history, and number of hours worked.
"Religious institution" means a building which is used primarily for religious worship and
related religious activities and which possesses all necessary permits, eerti'Heates of occupancy
and licensing to operate within the City of Santa Ana.
"Structure" means anything constructed or erected which is supported directly or indirectly on
the ground, but not including any vehicle.
"Vehicle" means a conveyance or device by which any person or property may be propelled,
moved, or drawn upon a street, sidewalk or waterway, including but not limited to a device
moved exclusively by human power.
B. The following words or phrases when used in this section shall be construed as defined
in California Health and Safety Code Sections 1746, 11362.5, and 11362.7.
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"Hospice"; "Identification card"; "Person with an identification card;" "Primary caregiver"; and
"Qualified patient."
SEC. 18 -612. MEDICAL MARIJITANA COLLECTIVES PROHIBITED.
A. It shall be unlawful to own, establish, operate, use, or permit the establishment or
operation of a medical marijuana collective, or to participate as an employee, contractor,
agent, volunteer, or in any manner or capacity other than as provided in this Article XIII.
B. The general prohibition contained in this section shall include renting, leasing, or
otherwise permitting a medical marijuana collective to occupy or use a location, vehicle,
or other mode of transportation.
SEC. 18 -613. LIMITED IMMUNITY.
A medical marijuana collective shall be immune to the prohibition set out in Section 18-
612 and the remedies set forth in Santa Ana Municipal Code, including criminal
prosecution, so long as that medical marijuana collective obtains a certificate of
occupancy for the operation of a "retail and service use" as defined in Santa Ana
Municipal Code section 41.144 from the City Planning and Building Agency as well as
complies with all operational requirements provided in this section.
A. CERTIFICATE OF OCCUPANCY.
Planning and Building Agency shall issue a certificate of occupancy and
business license for a medical marijuana collective that meets the
requirements detailed in Section 1.8 -613 (A)(1)(a) -(c).
a. Priority Registration.
Beginning on the date that is thirty (30) days after the effective
date of this ordinance, and lasting for ten (10) business days, a
medical marijuana collective may submit a priority registration
application if such applicant: (:l) possesses a valid lease for
property in the City of Santa Ana dated on or before October 1,
2013; (2) has incorporated within the state of California for the
purpose of operating a medical marijuana. collective, on or
before October 1, 2013; (3) possesses a valid State Board of
Equalization Seller's permit for the sale of medical marijuana
which was applied for or issued on or before October 1, 2013;
(4) possesses a valid License to sell nursery stock which was
applied for or issued by the Department of Food and
Agriculture on or before October 1, 2013; and (5) identifies a
location that it will occupy after registration that meets the
requirements of this Article, the Planning and Building Agency
shall grant a certificate of occupancy and business license to
the applicant.
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ii. Any medical marijuana collective that possesses a certificate of
occupancy and business license issued under this section and
meets the operational requirements in Section 1.8- 613(B) shall
be provided priority by Planning and Building Agency in its
review of the medical marijuana collective's certificate of
occupancy application in the event the medical marijuana
colleotive seeks to relocate or transfer.
b. Non - Priority Registration:
Beginning on the date that is thirty (30) days after the effective
date of this ordinance plus ten (10) business days, any medical
marijuana collective may submit a non - priority registration
application to the Planning and Building Agency for a
certificate of occupancy and business license provided the
medical marijuana collective meets the following criteria: (1) it
possesses a valid lease for property in the City of Santa Ana;
(2) it has incorporated within the state of California for the
purpose of operating a medical marijuana collective; (3) it
possesses a valid State Board of Equalization Seller's permit
for the sale of medical marijuana; (4) it possesses a valid
License to sell nursery stock; and (5) it identifies a location that
it will occupy after registration that meets the requirements of
this Article.
c. A medical marijuana collective that receives a certificate of occupancy
may relocate within the City pursuant to this Article.
d. The Planning and Building Agency shall issue a certificate of
occupancy or a rejection, with a written explanation, to an applicant
within 45 days of the applicant's written request for a certificate of
occupancy. The failure of the Planning and Building Agency to issue a
certificate of occupancy within the 45 day period shall be deemed an
acceptance of the application for certificate of occupancy and the
medical marijuana collective shall be permitted to operate.
2. Maximum Number of Collectives: City shall issue no more than eleven (11)
certificates of occupancy for the operation of medical marijuana collectives,
subject to Subsections 2(a) and 2(b) below. if the number of certified medical
marijuana collectives falls 'below e'leve'n (11), then the City shall issue
additional certificates of occupancy pursuant to the terms of this Article.
a. City council shall have the discretion to increase but not decrease the
number of certificates of occupancy issued by the Planning and
Building Agency to medical marijuana collectives pursuant to the
terms of this Article.
b. Any such exercise of discretion under Section 2(a) increasing the
number of new certificates of occupancy above the current maximmn
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number of eleven (11) shall comply with the minimum non - priority
registration standards enumerated in 18 -613 (A)(1)(c)(i).
B. OPERATIONAL REQUIREMENTS.
A medical marijuana collective shall be immune to the prohibition set out in Section 18-
612 and the remedies set forth in Santa Ana Municipal Code, so long as that medical
marijuana collective obtains a certificate of occupancy and complies with the following
operational requirements:
SAFE RADWS RESTRICTIONS: The medical marijuana collective is not located
within:
A 600 -foot radius of a school as defined. under Health and Safety Code
§11362.768 (h);
ii. A 500 -foot radius of a public park;
iii. The distances specified in this paragraph shall be the horizontal distance
measured in a straight line from the property line of the school or public park to
the front door of the medical marijuana collective without regard to intervening
structures;
iv. Medical marijuana collectives are prohibited in all use districts in the City except
for the C'1, C4, C5, M1, P, and C -SM use districts where they are neither
prohibited nor authorized. They are explicitly prohibited in the residential use
districts: RE, R',1, R2, R3, R4, and CR.
2. NON - CONCENTRATION OF COLLECTIVES REQUIREMENT: The medical
marijuana collectives shall be disbursed in accordance with the following:
There shall be no more than one registered certified medical marijuana collective
within any single retail or business property.
DELIVERY RESTRICTIONS: The medical marijuana collective shall not deliver
marijuana to its members within the City of Santa Ana unless the medical marijuana
collective maintains insurance for its managers, volunteers or employees who deliver the
marijuana and the medical marijuana collective maintains a location within the city of
Santa Ana which possesses both a certificate of occupancy and business license under this
Article.
4. LICENSE REQUIREMENTS: The medical marijuana collective shall maintain a valid
state Board of Equalization state Seller's permit in the name of the collective.
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RESTRICTION OF MINORS ON PREMISES: The medical marijuana collective
shall not allow minors under the age of 18 years to enter its premises during any hours of
operation.
6. RESTRICTION OF MINORS AS EMPLOYEES: it shall be unlawful for any medical
marijuana collective to employ any person who is not at least 18 years of age.
VISIBLE MARIJUANA RESTRICTION: Any marijuana within a medical marijuana
collective shall not be visible with the naked eye from the exterior of the business's
premises.
8. ALCOHOL RESTRICTIONS: The medical marijuana collective shall prohibit the sale,
dispensing, or consumption of alcoholic beverages at its location, in the parking area of
the location, or within fifty (50) feet of the collective.
9. PREMISES USE RESTRICTIONS: The medical marijuana collective shall not allow
any persons to inhale, smoke, eat, ingest, or otherwise consume marijuana at the location,
In the parking areas of the location, within fifty (50) feet of the premises, or In those areas
restricted under the provisions of California Health and Safety Code section 11362.79.
This prohibition shall not apply to a qualified patients use of marijuana for his or her own
medical needs if the qualified patient's permanent legal residence is at the medical
marijuana collective's location, nor shall this prohibition limit or conflict with the
exceptions provided in local and state law that permit smoking in designated areas within
licensed residential medical and elder care facilities.
10. LEGAL NOTICE REQUIREMENTS: A sign shall be posted inside collectives and
cooperatives, stating substantially as follows: "The diversion of cannabis for non- medical
purposes is a violation of State Law. Loitering at the location of a medical marijuana
dispensing or collective for an illegal purpose is prohibited by California Penal Code
section 647(h). No medical marijuana shall be smoked, ingested or otherwise consumed
on the premises of the collective or within fifty (50) feet of a medical marijuana.
collective" Such sign shall be printed in 14 -point font or larger upon 8 % by 11 paper and
posted at some conspicuous part of such site.
11, CULTIVATION, MANUFACTURING, AND PROCESSING RESTRICTIONS:
Medical marijuana collectives shall exchange, sell, transfer, and distribute only marijuana
or cannabis Cultivated, manufactured, or processed in the State of California and that has
not left the State before arriving at the collective and that has been cultivated only by, and
provided only to, its verified members in a closed - circuit of production and consumption.
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12. MEDICINE INVENTORY RESTRICTIONS: The medical marijuana collective shall
possess only a reasonable quantity of dried marijuana and marijuana plants to meet the
personal medical needs of their members.
13. EMPLOYEE BACKGROUND REQUIREMENTS: The medical marijuana collective
shall utilize the Live Scan background check system as set forth in this Article prior to
employing any manager, volunteer or employee. The medical marijuana collectives'
managers must be registered members of the medical marijuana collective. Verification
of all Live Scan applications received by a medical marijuana collective shall be
processed and received by the Santa Ana Police Department in accordance with
California Department of Justice guidelines;
14. EMPLOYEE BACKGROUND RESTRICTIONS: Prior to being offered a position of
management or employment at a medical marijuana collective, an applicant for a position
of manager, volunteer, or employee of the medical marijuana collective who dispenses
medical marijuana must submit and successfully pass an annual Live Scan background
check by December 31 of each year in order to be employed at the medical marijuana
collective. A failed Live Scan is any Live Scan that shows a felony conviction having
occurred within the past 7 years and /or shows that the manager, volunteer or employee is
currently on parole or probation for the sale or distribution of a controlled substance;
15. PATIENT CONFIDENTIALITY: In order to protect confidentiality, the medical
marijuana collective may maintain records of all qualified patients with a valid
identification card and primary caregivers with a valid identification card using only the
identification card number issued by the State or County pursuant to California Health
and Safety Code section 113623, et seq.
16. MANUFACTURE OF CONCENTRATED CANNABIS RESTRICTION: The
medical marijuana collective shall not participate in or otherwise engage in the
manufacture of concentrated cannabis in violation of California Health and Safety Code
section 11379.6.
17. SECURITY REQUIREMENTS: The medical marijuana collective shall provide the
Following security measures:
the medical marijuana collective shall maintain an alarm system reasonably
designed to ensure the safety of persons and to protect the premises from theft;
the collective shall provide a security guard patrol for the premises during all
hours of operation;
iii. the security guard patrol shall be a duly- licensed and uniformed security guard
patrol;
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18. CHILD - PROOF SAFETY CONTAINER REQUIREMENT: All medical marijuana
collectives shall distribute marijuana in only "Child Proof' equipped with either a "Push
or Turn ", "Reversible" top vial, or "Pop Top" ov "Squeeze Top" locking mechanism.
19. SIGNAGE RESTRICTIONS: Outdoor signage on medical marijuana collective
premises shall not contain pictorial representations of the marijuana plant or pictorial
representations of marijuana use.
20, EDIBLE RESTRICTIONS: Medical marijuana dispensaries that prepare, dispense or
sell edible medical marijuana products, or food containing any form of medical
marijuana, must comply with and are subject to the provisions of all relevant state and
local laws regarding the preparation, distribution, and sale of food. Failure to obtain and
comply with all necessary permits related to the preparation, distribution, and sale of food
will be an express violation of this Article.
21. ODOR RESTRICTIONS: A dispensary shall have an air treatment filtration or
ventilation system that reasonably prevents odors generated from the storage of marijuana
on the dispensary property.
SEC. 18 -614. VIOLATION AND ENFORCEMENT.
Each violation of this Article shall constitute a separate violation and shall be subject to all
remedies and enforcement measures authorized by Santa Ana Municipal Code. Additionally, as
a nuisance per se, any violation of this Article shall be subject to legally authorized remedies,
including procedures for injunctive relief, as well as procedures to revolve the medical marijuana
collective's registration, certificate of occupancy for the business's location, disgorgement and
payment to the City of any and all monies unlawfully obtained, costs of abatement, costs of
investigation, attorney's ,fees, and any other relief or remedy available at law or equity, The City
may also pursue any and all remedies and actions available and applicable under local and state
laws for guy violations committed by the medical marijuana collective and persons related or
associated with such medical marijuana collective.
SECTION 2.
Santa Ana Municipal Code Part Il, Chapter 41, Article 1, Division 2, Scotion 41 -144 of is
amended in its entirety to read:
SEC. 41 -144. — RETAIL AND SERVICE USES.
Retail and service uses include any use of property for the purpose of offering merchandise or
services to the public for compensation, and include banks, savings and loan associations, and
similar financial institutions, but do not include the following:
(a) Sheet metal shops, body - fender works, automobile paint shops, repair garages,
and any activity which includes the processing, treatment, manufacturing,
assembling or compounding of any product, other than that which is clearly and
traditionally incidental and essential to a particular retail activity.
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(b) A hookah parlor as defined in section 41 -73.5 of this Code.
(c) Any use which is more specifically identified as a permitted use or as a use which
may be permitted subject to the issuance of a conditional use permit in one or
more uses districts to Article III of this chapter.
SECTION 3. AMENDMENTS TO SANTA ANA MUNICIPAL CODE 21 -119
The people of the city of Santa Ana do hereby enact and ordain that Section 21 -119 of the Santa
Ana Municipal Code is hereby amended to add the following: (All underlined language is new
and to be inserted):
Section 21 -119 — Gross receipts tax rates
{5 Classification "I"'— "MarijuanaBusinesses"
(a) — Every person engaged in the marfluann business not otherwise specifically taxed
other provisions of this cha tep r shall pay a business tax of 150.00 for each Ji,000.00 of
gross sales receipts or fractional parts thereof:
(b ) - For the purpose of this section "marijuana businesses" includes "medical marijuana
collectives" and means business activity including but not limited to planting,
cultivation harvesting transporting manufacturing, compounding converting,
processing, preparing, storing, packaging, wholesale, and /or retail sales of marijuana, any
part of the plant Cannabis sativa L or its derivatives. It specifically includes medical
marijuana or cannabis transfers by collectives and cooperatives and it specifically
excludes medical mariivana or cannabis transfers by primary caregivers to their qualified
patients as defined in Chapter 18 Article X1.11 of this Code;
{c ) - For purposes of this section, a "medical marijuana collective" means ally activit -y
regulated or }permitted by Article XIiI of this Code and California Health and Safety
Code sections 11362 .5, et sect that involves transporting dispensing delivering,
providing or manufaCtUring. compounding, converting, processing, _paring, storing
packaging, or, testing harvesting, g ransporting dispensing delivering providing
manufacturing, compounding, converting processing preparing storing Packaging, o
testing any part of the marijuana plant for medical pur op ses•
(d) _For the pupose of this Section tine above taxes aply only prospectively. The city,
shall make no claim, current, retroactive, or prospective for payment by medical
marijuana collective or any other City tax except for the City portion of any Sales Tax
collected by the California State Board of Equalization;
(e) — This tax shall be payable in quarterly installment payments by any organization
falling under this Classification "F".
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SECTION 4.
Majority Approval; Effective Date. This ordinance shall be effective only if approved by a
majority of voters and shall go into effect immediately upon passage,
SECTION S.
Competing Measures. In the event that this measure and another measure or measures relating
to the regulation of medical marijuana in the City of Santa Ana shall appear on the same ballot,
the provisions of the other measures shall be deemed to be in conflict with this measure. In the
event that this measure shall receive a greater number of affirmative votes, the provisions of this
measure shall prevail in their entirety, and the provisions of the other relating to the regulation of
medical marijuana in the City of Santa Ana shall be null and void.
SECTION 6.
Amendment and Repeal. The provisions of the Santa Ana Mumicipal Code added by, amended .
by, or contained in this initiative measure may be amended only as provided in each section.
The provisions of the Santa Ana Municipal Code added by, amended by, or contained in this
initiative measure shall not be repealed, except by an ordinance adopted either by petition or by
the Council at its own instance and adopted by a majority vote of the electors.
SECTION 7.
Severability. If any portion of this ordinance is for any reason held to be unconstitutional,
invalid or unenforceable by a court of competent jurisdiction, that invalidity shall not affect the
remaining portions of this ordinance which can be implemented without the invalid provision,
and, to this end, the provisions of this ordinance are severable.
SECTION 8.
Statewide Regulation, This ordinance, and the provisions herein, shall be read consistent with
any statewide regulation of medical marijuana that is promulgated by the' legislature or by voter
approval in the future.
SECTION 9.
Special or General Election. This initiative ordinance shall be set for a special or regular
election at the earliest time allowed by law.
19D -15
EXHIBIT 2
19D -16
Title: Initiative Authorizing Regulated Operation of Medical Marijuana Facilities
Summary; The Initiative proposes an ordinance ( "Proposed Ordinance ") amending
several provisions of the of the Santa Ana Municipal Code, including Chapter 18,
Article R)I, "Medical Marijuana Dispensaries," Chapter 41, "Zoning," and Chapter 21
"BusinessUcenses," to allow Medical Marijuana Collectives ( "MMCs "), as defined
in the Proposed Ordinance, to operate in the City of Santa Ana. The stated purpose
and intent of the Proposed Ordinance is to be compatible with federal and state
enactments, while regulating MMCs so as not to interfere with a qualified patient's
right to use medical marijuana as authorized by California.
The Proposed Ordinance states that MMCs are prohibited, but actually authorizes
them by providing limited immunity from the. prohibition for up to eleven (11) MMCs
to operate within the City, if the MMC obtains a certificate of occupancy for a retail
and service use, and complies with all operational requirements provided in the
Proposed Ordinance, In order to obtain a certificate of occupancy and business
license, the MMC must be located; (1) in a zone that allows retail and service uses;
(2) 600 feet from a school; and (3) 500 feet from a public park or any other registered
MMC. In addition, if the MMC provides delivery of marijuana, the MMC must have
insurance for such activity. The City may only issue eleven (11) certificates of
occupancy, however, the City Council may increase the number of collectives,
without voter approval, in the future.
The Proposed Ordinance also creates a priority registration system for the submission
of applications for a MMC certificate of occupancy and business license. Beginning
thirty (30) days after the effective date of the Proposed Ordinance, MMCs that met
certain property, incorporation, permit and license requirements by October 1, 2013,
may submit a priority application for a certificate of occupancy and business license.
Otherwise, MMCs that were not established by October 1, 2013, but find a location
that meets all requirements, may submit an application for a MMC occupancy
certificate and business license forty -five (45) days after the effective date of the
Proposed Ordinance.
The Proposed Ordinance also establishes several operational requirements for MMC's
including, but not limited to, the following: limitations on location, exclusion of
minors; prohibition of alcohol; restrictions on consumption of marijuana on permitted
premises; conducting Live Scan background checks on employees; required security
and carneras; and mandatory analysis of products for contaminants.
Finally, the Proposed Ordinance amends the City's Business License Ordinance to
provide that MMCs pay a business license fee of $50.00 for every $1000.00 in gross
sales of medical marijuana.
19D -17
EXHIBIT 3
19D -18
April 2, 2014
REGISTRAR OF VOTERS
1300 South Grand Avenue, Bldg. C
Santa Ana, California 92705
(714) 567 -7600
TDD (714) 567.7608
FAX (714) 567 -7627
www.ocvote.com
NEAL KELLEY
Registrar of Voters
Mailing Address:
P.O. Box 11298
Santa Ana, California 92711
Ms. Maria D. Huizar
Clerk of the Council
City of Santa Ana
20 Civic Center Plaza
P.O. Box 1988, M30
Santa Ana, CA 92702
Dear Ms. Huizar:
Enclosed is the Certificate as to Verification of Signatures for the petition entitled "Initiative
Authorizing Regulated Operation of Medical Marijuana Facilities ".
The Registrar of Voters verified 500 signatures. The cost per signature verified is $3.40 for a total
cost of $1,700.00. An invoice is enclosed.
If you have any questions, please feel free to contact me at 714. 567 -7606.
Sincerely,
Kay Cotton
Candidate and Voter Services Manager
kc
Enclosure
19D -19
CERTIFICATE AS TO VERIFICATION
OF SIGNATURES ON PETITION
State of California)
)ss.
County of Orange
I, Neal Kelley, Registrar of Voters of the County of Orange, do hereby
certify that I am the county officer having charge of the registration of voters in
the County of Orange, and I have examined, or caused to be examined, the
petition submitted to the City of Santa Ana entitled "Initiative Authorizing
Regulated Operation of Medical Marijuana Facilities ".
I further certify that from said examination I have determined the following
facts regarding this document:
Number of signatures filed: 10,007
Number of signatures required:
8,738
Number of signatures verified:
500
Number of signatures found valid:
262
Number of signatures found invalid:
238
Invalid because of Duplicate: 1 1
WITNESS my hand and Official Seal this 2nd Day of April, 2014.
NEAL KEL
Registra oters
Orange County
19D -20
RANDOM SAMPLING VERIFICATION OF SIGNATURES
The Irvine Support Our Schools Initiative of 2012
V = Number of Valid Signatures
A = Value of Each Signature
B = Extra Value of Each Duplicate Signature
C = B x the Number of Duplicates
1. Calculate:
l
Raw Count (10,007) x Sufficient in Sample (262) = V (5,243.668); rounded to 5,244
Sample (500)
2. Divide:
Raw Count (10.007) = A (20.014)
Sample (500)
3. Multiply:
A (20.014) x A -1 (19.014) = B (380.546)
4. Multiply:
B (380.546) x Number of Duplicates (1) = C (380.546)
5. Subtract:
V (5,244) — C (380.546) = Corrected Value (4,864)
The petition is considered qualified, without further verification, if the random
sampling determines that the number of valid signatures is over 110% of the
number of signatures required.
The number of signatures required: 8,738
110% of number of signatures required: 9,612
Random sampling
19D -21
am
101 FINAL Petition Result Breakdown
NotReg
OutOfDlst
Duplicate
RegOlffAdd
NoResAdd
SigNoMatch
WrongCnty
Signatures Required
8738
Raw Count
10,007
Sample Size
500
Percent of
percent of
Slgs Checked
500
sigs Checked
sample size
Sigs .Not Chocked
0
0.0%
Sigs Valid
262
52.4%
52.4%
Sigs Invalid
238
47.6%
47.6%
Duplicated
1
0:0 %
0.2 %
Non - duplicate Invalids
237
47,0%
47.4%
�y
Approved
262
52.4%
Not Registered
188
37.6%
Out of District
13
2.6%
Signed more than once
1
0.2%
Registered at a Different Address
27
5.4%
No Residence Address Given
1
0,2
Signatures Don't Match
7
1.4%
Page Filed In Wrong County
1
0.2%
Total pages
Circulators Checked
cc: N. Kelley
J. Berardino
L.Strickland
N. Mendoza
K. Cotton
M. Nielson
J. Martinez
M.Tn
J. Boiarsky
2,223
No
ICMR012 - Petition Result Breakdown 19D-22 Page 1 of -I
Tinted: 3/25/2014 11:36:34AM