HomeMy WebLinkAbout55D - RESO - MEDICAL MARIJUANA REGULATIONREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JULY 1, 2014
TITLE:
SUBMISSION TO THE VOTERS AT THE
NOVEMBER 4, 2014 MUNICIPAL
ELECTION: CITY OF SANTA ANA
MEDICAL MARIJUANA REGULATION AND
LIMITATION INITIATIVE
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1" Reading
❑ Ordinance on 2ntl Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Adopt a resolution giving notice of the City's general municipal election to be held in the City
of Santa Ana on November 4, 2014 for the submission of a proposed ordinance and
requesting Board of Supervisors to consolidate election with the Statewide General Election.
2. Adopt a resolution on ballot question.
3. Adopt a resolution authorizing submittal of written arguments for or against the proposed City
Measure.
4. Approve guidelines for preparation of arguments for or against the proposed Ordinance, fix
the date for the submission of Direct Arguments and Rebuttal Arguments, and post the notice
for the argument process in accordance with the provisions of the California State Elections
Code.
5. Authorize the City Attorney to prepare an Impartial Analysis to be submitted for consideration
by the voters.
6. Direct staff to process all other documents required to proceed with the proposed City
Measure.
DISCUSSION
At the June 17, 2014 City Council meeting staff presented a report outlining the proposed City
Initiative on medical marijuana which included recommended development standards,
operational requirements and the establishment of taxing /regulatory fees. Following public
comments and council discussion of the proposed City Initiative, the City Council voted to
continue the item to the July 1, 2014 meeting to allow staff time to explore additional options and
make several recommended revisions to the proposed City Initiative.
Based on this discussion, the draft ordinance now reflects the following changes:
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Medical Marijuana Ballot Initiative
July 1, 2014
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1. Remove the cap on collectives which was previously set at twelve.
2. Limit the hours of operation from 10:00 a.m. to 8:00 p.m. Monday - Saturday and 11:00 a.m.
to 7:00 p.m. on Sundays.
3. Increase the age limit to enter a medical marijuana establishment to (21) years of age
unless accompanied by a primary care giver, licensed attending physician, parent(s) or
documented legal guardian.
4. Reduce the minimum separation requirement between collectives from 1,000 feet to 500
feet.
5. Pursuant to 9217 of the Election Code, the City Council may reserve the authority to make
future amendments to the voter approved initiative without voter approval.
6. Clarify that should the proposed measure pass, it will render competing measures null and
void.
7. Remove /amend items that may be subject to legal challenge:
a. Clarify that any request for video recordings must be by consent, through a warrant
or court order.
b. Clarify that agents, employees and volunteers can be cited for violations.
c. Clarify that the proposed gross receipts tax will not be adjusted by both a
percentage and inflation.
d. Provide that violations of the proposed ordinance are subject to Penal Code
penalties.
e. Modification requirements regarding the maintenance of records.
Additional Alternatives to Consider
Since the June 17th meeting the City has received further feedback from the medical marijuana
community and City Council members regarding additional items that may be considered and /or
added to the City Initiative. Staff has reviewed each of the requested items and provided a short
analysis. These items include:
1. In City Council wards where there are no industrially zoned properties (M -1, M -2), a
maximum of two collectives may operate in that Ward in a Professional (P) zone or an
Arterial Commercial (C -5) zone.
Analysis — This alternative addresses concerns that the permitted zones for medical
marijuana collectives /cooperatives proposed are too restrictive and would limit
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Medical Marijuana Ballot Initiative
July 1, 2014
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collectives /cooperatives to the primarily industrial areas in the southeast and southwest
portions of the City. Based on the revised 500 foot separation requirement between
collectives /cooperatives, staff estimates that as many as (18) collectives /cooperatives may
be able to locate in the proposed areas (refer to Alternative Section 18 -615).
Implement a cooperative /collective registration application and Regulatory Safety Permit.
In this process, the Director of Planning and Building or their designee will review and
process the registration application. If the application is deemed complete and in
compliance with the established standards the business will be able to apply for the
Regulatory Safety Permit which will be reviewed and issued by the Chief of Police,
Regulatory Safety Permits must be renewed annually unless revoked. This process would
replace the previously proposed Conditional Use Permit requirement.
Analysis — The development of a registration and Regulatory Safety Permit process to
replace the proposed Conditional Use Permit process addresses concerns regarding legal
challenge from the medical marijuana community. Additionally, requiring annual renewals
will provide the City with an opportunity to review and potentially revoke the Regulatory
Safety Permit in cases where a medical marijuana collective /cooperative is not operating
within the specified guidelines (refer to Alternative Section 18 -617).
3. Include a sunset provision to repeal the proposed ordinance unless it is readopted by the
City Council.
Analysis — The provision for a sunset on the proposed ordinance is an alternative to the
provision to allow the City Council to make future amendments to the ordinance without
requiring voter approval. Both options provide the City with a greater amount of flexibility
to make changes to the proposed ordinance should issues arise after its initial
implementation (refer to Alternative Section 6).
4. Remove language regarding medical marijuana testing and testing logs from the proposed
ordinance.
Analysis — The requirements regarding testing and testing logs are intended to protect the
end consumer of medical marijuana by ensuring that collectives /cooperatives are
maintaining a sufficiently high standard of product. The City is not equipped to address
issues relating to the testing of medical marijuana and would recommend removing this
language and deferring to these requirements to the state legislature.
5. Utilize Request for Proposals process to select medical marijuana
collectives /cooperatives.
Analysis — The proposed ordinance includes a provision for the use of a lottery in order to
allocate the final number of permitted collectives /cooperatives within the eligible zones
while implementing the separation requirements. In contrast to the lottery system to
allocate collectives /cooperatives, staff received feedback that the City could instead issue
requests for proposals to solicit applications from potential collectives /cooperatives and
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Medical Marijuana Ballot Initiative
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then select them based on a set of criteria. Staff does not recommend this approach due
to the strong potential for the selection process to be preferential and subject to challenge.
Potential Allocation of City Staff Resources for Enforcement
At the City Council meeting on June 17th the City Council directed staff to develop an
enforcement plan to address the negative effects resulting from medical marijuana
collective /cooperatives. A full enforcement plan is currently being developed in partnership with
the Police Department, Planning and Building Agency and City Attorney's Office and is scheduled
for City Council review on August 1, 2014.
For purposes of discussion, and considering that a full enforcement plan is still being developed,
staff has prepared the following preliminary staffing allocations based on three funding scenarios:
$1 million Scenario — The staffing allocation in this funding scenario focuses on enforcing
both legal and illegal medical marijuana collectives /cooperatives from a land use
perspective and as a result predominantly proposes the addition of Code Enforcement and
City Attorney staff. This scenario is developed to achieve compliance through the citation,
fines and litigation process and would include adding:
o (2) Code Enforcement Officers
o (1) Senior Code Enforcement Officer
o (1) Senior Office Assistant
o (2) Assistant City Attorneys
o (0.5) Combination Building Inspector
o (1) Police Officer
• $1.5 million Scenario —Similar to the above scenario, this funding allocation would serve
to enhance the land use enforcement model with additional Code Enforcement Inspectors,
Building Inspectors and Police Officers. This scenario would include adding:
o (3) Code Enforcement Officers
o (1) Senior Code Enforcement Officer
o (1) Senior Office Assistant
o (2) Assistant City Attorneys
o (1.5) Combination Building Inspector
o (2) Police Officers
$2 million Scenario —This funding scenario would provide sufficient resources to develop a
Vice unit within the Police Department to pursue investigations of illegal drug trafficking,
money laundering, and other related public safety issues in addition to the Code
Enforcement and Attorney's Office enforcement of land use violations. This scenario
would include adding:
o (3) Code Enforcement Officers
o (1) Senior Code Enforcement Officer
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Medical Marijuana Ballot Initiative
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o (1) Senior Office Assistant
o (2) Assistant City Attorneys
o (1.5) Combination Building Inspector
o (4) Vice Unit Police Officers
California Environmental Quality Act (CEQA) Analysis
The California Resources Code states that voter initiatives not sponsored by a public agency do
not constitute a "project' pursuant to CEQA and, as such, they are exempt from environmental
review (Public Resources Code Section 15378(b)(3)). The collective- backed voter initiative,
therefore, is not required to provide any environmental impact analysis. In contrast the City -
sponsored initiative is subject to CEQA review.
Therefore, in accordance with this requirement, staff reviewed the Environmental Checklist Form
(Appendix G of the CEQA Guidelines) to determine if there would be any possibility that the City -
sponsored initiative would have the possibility of creating any environmental impacts. Based on
this review, staff has determined that the establishment of regulations for medical marijuana
collectives does not meet any of the thresholds contained in the Checklist that would trigger an
environmental impact. According to the "general rule exemption" (Section 15061(b)(3)) of the
CEQA Guidelines, projects which have no potential for causing a significant effect on the
environment are not subject to CEQA. No further environmental analysis is required. A notice of
exemption will be filed for this project.
FISCAL IMPACT
The cost to consolidate the General Municipal Election is estimated to be $225,000. Funds for
these administrative costs are available in the General Non - Departmental, Contractual Services
account no. 01105015 62300, FY 2013 -2014 and 2014 -2015.
Karen Haluza
Interim Executive Director
Planning and Building Agency
MF:rb
MF:RFCA - 7-1-2014 Medical Marijuana Initiative
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance and Management Services
Exhibit: 1. Ordinance Amending Chapter 18 of the Santa Ana Municipal Code
2. Ordinance Amending Chapter 21 of the Santa Ana Municipal Code
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EXHIBIT 1
PROPOSED ORDINANCE
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ORDINANCE NO. _ SRC:06/25/15; V2
AN ORDINANCE OF THE PEOPLE OF THE CITY OF SANTA ANA AMENDING
CHAPTER 18 OF THE MUNICIPAL CODE TO DELETE AND REPLACE ARTICLE
XIII, TO DELETE SECTION 41 -121, DELETE SUBSECTION (B) OF SECTION 41.144,
AND AMEND ARTICLE XII OF CHAPTER 21 BY ADDING SECTIONS 21.126, 21-
127, 21 -128, 21 -129 and 21 -130 TO REGULATE THE ESTABLISHMENT,
OPERATION AND TAXATION OF MEDICAL MARIJUANA COLLECTIVES AND
COOPERATIVES
WHEREAS, in 1996, the California electorate approved Proposition 215, the
Compassionate Use Act of 1996, which allows a patient, with a doctor's
recommendation, to use marijuana for medical purposes without the fear of prosecution
or arrest; and
WHEREAS, in 2003, the California legislature passed Senate Bill 420 (Medical
Marijuana Program Act) which amended the Health and Safety Code to permit the
establishment of medical marijuana dispensaries for the distribution of marijuana for
medical purposes; and
WHEREAS, cities where medical marijuana dispensaries have been permitted to
operate have experienced significant problems, including burglaries and takeover
robberies of dispensaries, robberies of customers leaving dispensaries, an increase in
crime (especially thefts and robberies) in the vicinity of dispensaries, illegal re- selling of
marijuana obtained from dispensaries, physicians issuing apparently fraudulent
recommendations for the use of marijuana, collective staff selling marijuana to
customers with obviously counterfeit patient identification cards, street dealers
attempting to sell marijuana to collective customers, collective customers using
marijuana and then driving under the influence of marijuana, the sale of illegal drugs
other than marijuana in the dispensaries, sales of marijuana to minors; and
WHEREAS, after studying various alternatives for the regulation of medical
marijuana dispensaries, considering testimony from members of the public, and
reviewing the legal status of medical marijuana dispensaries under applicable law, the
City Council finds that the regulation and operation of medical marijuana dispensaries is
necessary to protect the public health, safety, and welfare by mitigating the adverse
secondary effects from the operations of medical marijuana dispensaries; and
WHEREAS, the City of Santa Ana has a compelling interest in ensuring that
marijuana is not distributed 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 which medical marijuana collectives operate, and in providing
compassionate access to medical marijuana to its seriously ill residents.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF SANTA ANA DO
ORDAIN AS FOLLOWS:
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SECTION 1. The People hereby adopt the recitals and findings set forth above and in
the request for Council action -staff report prepared in connection with this ordinance.
SECTION 2. Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby
deleted in its entirety and replaced with the following:
Chapter 18
ARTICLE XIII. MEDICAL MARIJUANA COLLECTIVES /COOPERATIVES
18.610. Purposes and intent.
It is the purpose and intent of this article to regulate the collective distribution of
medical marijuana 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 (collectively referred to as "State Law ") do not interfere with a patient's
right to use medical marijuana as authorized under State Law, nor do they criminalize
the possession or cultivation of medical marijuana by specifically defined classifications
of persons, as authorized under State Law. Under State Law, only qualified patients,
persons with identification cards, and primary caregivers may cultivate medical
marijuana collectively. Medical marijuana collectives shall comply with all provisions of
the Santa Ana Municipal Code ( "Code "), State Law, the 2008 California Attorney
General Guidelines for the Security and Non - Diversion of Marijuana Grown for Medical
Use, and all other applicable local and state laws. Nothing in this article purports to
permit activities that are otherwise illegal under state or local law.
18 -611. Definitions.
(a) "Cultivation" and /or "Cultivate" shall mean the planting, growing, harvesting,
drying, processing, or storage of one or more marijuana plants or any part thereof.
(b) "Medical Marijuana Collective" or "Cooperative" or "Collective' means any
facility or location where medical marijuana is made available and /or distributed by or to
one or more of the following: a primary caregiver, a qualified patient or a person with an
identification card in strict accordance with California Health and Safety Code Section
11362.5 et seq., as sometimes amended. A "medical marijuana collective" shall not
include the following uses, as long as the location of such uses are otherwise regulated
by this Code or applicable law: a clinic licensed pursuant to Chapter 1 of Division 2 of
the Health and Safety Code, a health care facility licensed pursuant to Chapter 2 of
Division 2 of the Health and Safety Code, a residential care facility for persons with
chronic life- threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the
Health and Safety Code, a residential care facility for the elderly licensed pursuant to
Chapter 3.2 of Division 2 of the Health and Safety Code, a residential hospice or a
home health agency licensed pursuant to Chapter 8 of Division 2 of the Health and
Safety Code, as long as such use complies strictly with applicable law including, but not
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limited to, Health and Safety Code Section 11362.5 et seq. For purposes of this
Municipal Code, "Dispensary" and "Dispensaries" have the same the same meaning as
Collective or Cooperative.
(c) "Identification Card" shall have the same definition as that contained in
Health and Safety Code § 11362.7 et seq., as sometimes amended.
(d) "Manager" means any person responsible for the establishment,
organization, supervision, or oversight of the operation of a Collective, including but not
limited to members who perform the functions of president, vice - president, director,
operating officer, financial officer, secretary, or treasurer. Ability to control one or more
of the following functions shall be prima facie evidence that such person is a manager:
(1) to hire, select, or separate employees or staff, including volunteers; (2) to acquire
facilities, furniture, equipment or supplies other than occasional replenishment of stock;
(3) to disburse funds of the business other than occasional expenditures for
replenishment of stock; or (4) to make, or participate in making, policy decisions relative
to the operations of the business.
(e) "Marijuana' shall have the same definition as that contained in Health and
Safety Code § 11018 as sometimes amended.
(f) "Medical Marijuana" shall have the same definition as that contained in
Health and Safety Code § 11362.5 et seq., as sometimes amended.
(g) "Primary Caregiver' shall have the same definition as that contained in
Health and Safety Code § 11362.5 and 11362.7, as sometimes amended.
(h) "Qualified Patient" shall have the same definition as that contained in
Health and Safety Code § 11362.5 as sometimes amended.
18 -612. Scope of article.
The operating standards established in this chapter apply to any site, facility,
location, use, cooperative or business currently operating in the City of Santa Ana, or
which commences operations after the effective date of this Article, that distributes,
dispenses, stores, sells, exchanges, processes, delivers, or gives away, medical
marijuana to qualified patients, health care providers, patients' primary caregivers, or
physicians, pursuant to Health & Safety Code § 11362.5 (adopted as Proposition 215,
the "Compassionate Use Act of 1996 ") or any state regulations adopted in furtherance
thereof. Any collective in the City of Santa Ana shall operate in conformance with the
operating standards set forth in section 18 -613 of this Code to assure that the
operations of the collective are in compliance with California law and to mitigate the
adverse secondary effects from operations of dispensaries.
18 -613. Operating standards.
(a) At all times the collective is open, a collective shall provide at least one
security guard who is licensed, possesses a valid Department of Consumer Affairs
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"security guard card ", and has a valid Santa Ana Business License. Security guards
shall not possess firearms.
(b) The security guard and collective personnel shall monitor the site and the
immediate vicinity of the site to assure that patrons immediately leave the site and not
consume medical marijuana in the vicinity of the collective or on the property or in the
parking lot.
(c) Exterior signage shall be limited to one wall sign not to exceed ten square
feet in area and may not be externally or internally illuminated. Interior signage or
advertising may not be visible from the exterior.
(d) No recommendations from a doctor for medical marijuana shall be issued
on -site.
(e) There shall be no on -site sales of alcohol or tobacco products, and no on-
site consumption of food, alcohol, tobacco or marijuana by patrons.
(f) Hours of operation shall be limited to: Monday -- Saturday 10 a.m. —and 8
p.m. midnight and Sunday 11a.m_ -7 p.m.
(g) The property provides a sufficient odor absorbing ventilation and exhaust
system so that odor generated inside the property is not detected outside the property,
anywhere on adjacent property or public rights -of -way, or within any other unit located
within the same building as the collective.
(h) A collective shall only dispense medical marijuana to qualified patients
and their caregivers as defined by California Health and Safety Code § 11362.5
(Proposition 215). This shall include possession of an original valid doctor's
recommendation, not more than one year old, for medical marijuana use by the patient.
(i) A collective shall notify patrons of the following both verbally and through
posting of a sign in a conspicuous location:
(1) Use of medical marijuana shall be limited to the patient identified on
the doctor's recommendation. Secondary sale, barter or distribution of medical
marijuana is a crime and can lead to arrest.
(2) That loitering on and around the collective site is prohibited by
California Penal Code § 647(e) and that patrons must immediately leave the site
and not consume medical marijuana in the vicinity of the collective or on the
property or in the parking lot.
(3) Forgery of medical documents is a felony crime.
(4) A warning that patrons may be subject to prosecution under federal
marijuana laws.
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55D -10
(5) That the use of medical marijuana may impair a person's ability to
drive a motor vehicle or operate machinery.
Q) A collective shall not provide marijuana to any individual in an amount not
consistent with personal medical use.
(k) A collective shall not store more than $200.00 in cash reserves overnight
on the premises and shall make at least one daily bank drop that includes all cash
collected on that business day.
(1) No one under 2148 years of age shall be permitted to enter establishment,
unless such person that rniaer is a qualified patient and is accompanied by his or her
Primary Caregiver, licensed Attending Physician, parent(s) or documented legal
guardian.
(m) A collective shall provide the name and phone number of an on -site staff
person to the Police Department and Community Preservation Division for notification if
there are operational problems with the establishment.
(n) Each collective operator(s) and employees shall complete a criminal
background check. Employees, managers or volunteers may not have been convicted
of, or plead guilty /no- contest to a felony or misdemeanor drug charge within the past
four years.
(o) Marijuana shall not be grown or cultivated at collective sites, except that
cuttings of the marijuana plant may be kept or maintained on -site for
distribution to qualified patients and primary caregivers as follows:
(1) The cuttings shall not be utilized by a collective as a source for the
provision of marijuana for consumption on -site, however, upon
provision to a qualified patient or primary caregiver, that person
may use the cuttings to cultivate marijuana plants off -site for their
own use and they may also return marijuana from the resulting
mature plant for distribution by the collective.
(2) For the purposes of this paragraph, the term "cutting" shall mean a
rootless piece cut from a marijuana plant, which is no more than six
inches in length, and which can be used to grow another plant in a
different location.
(p) A collective shall comply with applicable provisions of the California Health
and Safety Code §§ 11362.5 through 11362.83, inclusive.
(q) If food is distributed, the collective shall comply which all relevant state
laws and city ordinances pertaining to the preparation, distribution and
sale of food.
(r) The location, interior and exterior, shall be monitored at all times by web-
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55D -11
based closed- circuit television for security purposes. The camera and
recording system must be of adequate quality, color rendition and
resolution to allow the ready identification of any individual committing a
crime anywhere on or adjacent to the location. The recordings shall be
maintained for a period of not less than ninety days, The Police
Department may request the recordings in connection with an
investigation. If the recordings are not voluntarily provided, the Police
Department may seek a warrant or court order for the recordings.and -shah
he ads available by the elleatiye to the Pollee r1..pa Ft ent upon
Fequest..
(s) The location shall have a centrally- monitored fire and burglar alarm
system and the building or the portion of the building where the collective
is located shall contain a fire -proof safe;
(t) No manufacture of concentrated cannabis in violation of California Health
and Safety Code section 11379.6 is allowed;
(u) No collective shall operate for profit. Cash and in -kind contributions,
reimbursements, and reasonable compensation provided by members
towards the collective's actual expenses of the growth, cultivation, and
provision of medical marijuana shall be allowed provided that they are in
strict compliance with State Law. All such cash and in -kind amounts and
items shall be fully documented.
18 -614. Reserved. NUMeFiGal limit on dispen6aries-
- - - -- Formatted: Indent: First line: 0.5'
No meFe than twelve (12) Fnedieal .F..,F:..,r.. oolleGtiyes shall be permitted t_ - -__ Formatted: Left, Indent: First line: 0 .5"
to ,...,....t,...t .. ., t:...,.
18.615. Zones permitted.
No collective shall operate within a residential (R -1, R -2, R -3, R -4, RE, CR) zone,
Professional (P) zone, Arterial Commercial (C -5) zone, Planned Shopping Center (C -4)
zone, Specific Development (SD), Specific Plan (SP) or Agricultural (A -1) zone. A
Collective may only operate in an Industrial zone (M -1, M -2) in accordance with this
Article.
ALTERNATIVE SECTION 18 -615:
18 -615. Zones permitted; Wards permitted.
A Collective may only operate in an Industrial zone (M -1, M -2) in accordance with
this Article; unless an M -1 or M -2 Industrial Zone does not exist in one of the City's
existing six (6) Wards. If a Ward does riot have an Industrial Zone, a maximum of two
(2) collectives may operate in that Ward, in a Professional (P) zone or an Arterial
Commercial (C -5) zone. No collective shall operate within a residential (R -1, R -2, R -3,
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55D -12
R -4, RE, CR) zone under any circumstances.
18 -616. Separation requirements.
(a) No collective shall be located within 500 feet of another Medical Marijuana
Collective or Cooperative or within 1,000 feet of any:
(21) School;
(23) Park;
(3) Residential zone.
18 -617. Permit required.
A Conditional Use Permit shall be required for a Medical Marijuana Collective
Use and shall be reviewed and processed in accordance with Chapter 41 Division 1 of
this Municipal Code.
ALTERNATIVE SECTION 18-617:
18- 617.01 Cooperative/Collective registration required.
Within 30 days after the adoption of this chapter, the Director of Planning and Building
shall prepare Cooperative /Collective registration application forms and a related
administrative policy. Each collective interested in operating pursuant to this chapter
may submit an application together with a non - refundable processing fee in an amount
established by the City Council. The Director shall review each application in the order
in which it was received as evidenced by a time -stamp placed on the application when it
is submitted and received by a City staff person.
The Director or his or her designee shall determine whether each application
demonstrates compliance with this Chapter. Each application that is compliance with
this Chapter shall be placed on a qualified registration list and the Director shall notify
the applicant in writing of its qualified registration status. Once an applicant is informed
of its qualified registration status the applicant may apply for the Regulatory Safety
Permit provided for in Section _ of this Chapter.
The Director shall maintain the qualified registration Gist and update it on an annual
basis. Any applicant on the list must submit a written request each year to maintain its
status on the list and the Director may place new applicants on the list in order in which
the applications are received.
18- 617.01 Cooperative/Collective regulatory safety permit.
(a) Every Medical Marijuana Collective shall obtain a Regulatory Safety Permit
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55D -13
from the Police Department. It shall be unlawful for any person, association,
partnership or corporation to engage in, conduct or carry on, in or upon any premises
within the city a Medical Marijuana Collective without the required permit.
(b) A copy of the Regulatory Safety Permit shall be displayed at all times in a
place visible to the public
(c) A Regulatory Safety Permit shall be valid for a period of one (1) year, unless
sooner revoked. No permit granted herein shall confer any vested right to any person
or business for more than the above - referenced period.
18- 617.2. Medical marijuana collective — regulatory permit application
process.
(a) Any Medical Marijuana Collective desiring a regulatory safety permit required
by this chapter shall, prior to initiating operations and after receiving notice of its
successful registration under section , complete and file an application to the
chief of police on a form supplied by the Police Department. The application shall be
filed together with a nonrefundable fee as establish by resolution of the city council, to
defray, the cost of investigation required by this chapter. The application shall contain all
of the following:
(1) The address of the property where the proposed Medical Marijuana
Collective(s) will operate;
(2) A site plan describing the property with fully dimensioned interior
and exterior floor plans including electrical, mechanical, plumbing, and disabled
access compliance pursuant to Title 24 of the State of California Code of
Regulations and the federally mandated Americans with Disabilities Act;
(3) Exterior photographs of the entrance(s), exits(s), street frontage(s),
parking, front, rear and side(s) of the proposed property;
(4) Photographs depicting the entire interior of the proposed property;
(5) If the property is being rented or leased or is being purchased
under contract, a copy of such lease or contract;
(6) If the property is being rented or leased, written proof that the
property owner, and landlord if applicable, were given notice that the property will
be used as a Medical Marijuana Collective, and that the property owner, and
landlord if applicable, agree(s) to said operations;
(7) The name, address, telephone number, title and function(s) of each
manager, employee, volunteer, etc.;
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(8) For each manager, employee, volunteer, a fully legible copy of one
valid government issued form of photo identification, such as State Driver's
License or Identification Card;
(9) If the Medical Marijuana Collective is a corporation, a certified
copy of the Collective's Secretary of State Articles of Incorporation, Certificate(s)
of Amendment, Statement(s) of Information and a copy of the Collective's
Bylaws;
(10) If the Medical Marijuana Collective is an unincorporated association,
a copy of the Articles of Association;
(11) The name and address of the applicant's current agent for Service of
Process;
(12) A copy of the applicant's Board of Equalization Seller's Permit;
(13) A copy of the Medical Marijuana Collective Operating Standards,
listed in Section 18 -613, containing a statement dated and signed by the
responsible party on -site stating under penalty of perjury, that they read,
understand and shall ensure compliance with the aforementioned operating
standards.
The chief of police shall have thirty (30) calendar days in which to investigate the
application and background of the applicant. The department of building safety and
housing, the fire department and the Orange County Health Department shall inspect
the premises proposed to be devoted to the collective establishment and shall make
separate recommendations to the chief of police or designee concerning compliance
with the foregoing provisions. (f)
The chief of police or designee, after receiving the application and
aforementioned recommendations, shall grant the permit if he finds:
(1) The required fee has been paid.
(2) The application conforms in all respects to the provisions of this chapter.
(3) The applicant has not knowingly made a material misrepresentation in the
application.
(4) The applicant has fully cooperated in the investigation of his application.
(5) The applicant has not had a regulatory safety permit or other similar license
or permit denied or revoked for cause by this city or any other city located in or out of
this state within the five (5) years prior to the date of application,
(6) The collective as proposed by the applicant would comply with all applicable
laws including, but not limited to, health, zoning, fire and safety requirements and
55394.00000 \8922745.1 9
55D -15
(7) The applicant has demonstrated compliance with the California Department of
Justice, Office of the Attorney General, "Guidelines for the Security and Non - Diversion
of Marijuana Grown for Medical Use" standards.
18- 617.3. Medical marijuana collective — regulatory permit annual renewal
(a) Applications for the renewal of a permit shall be filed with the chief of police at
least sixty (60) calendar days before the expiration of the current permit. Temporary
permits will not be issued. Any permittee allowing his or her permit to lapse or which
permit expired during a suspension shall be required to submit a new registration
application and pay the corresponding original application fees.
(b) Any person desiring to obtain a renewal of his /her respective permit shall file
a written application under penalty of perjury on the required form with the chief of
police who shall conduct an investigation. The application shall be accompanied by a
nonrefundable filing fee established by separate resolution of the city council to help
defray the cost of the investigation required by this chapter. An applicant shall be
required to update the information contained in his /her original permit application and
provide any new and /or additional information as may be reasonably required by the
chief of police in order to determine whether said permit should be renewed.
18.617.4 Maintenance of records.
A Medical Marijuana Collective shall maintain records at the location accurately
and truthfully documenting: (1) the full name, address, and telephone number(s) of the
owner, landlord and /or lessee of the location; (2) the full name, address, and telephone
number(s) of all members who are engaged in the management of the collective and
the exact nature of each member's participation in the management of the collective; (3)
the full name, address, and telephone number(s) of all patient members to whom the
collective provides medical marijuana, a copy of a government- issued identification card
for all patient members,
(4) the full name, address, and telephone
number(s) of all primary caregiver members to whom the collective provides medical;
.. FeGeived, and mediGal . (56) all
receipts of the collective, including but not limited to all contributions, reimbursements,
and reasonable compensation, whether in cash or in kind, and all expenditures incurred
by the collective for the cultivation of medical marijuana; t" an'AyeAteFy FeGeF'
by the G911813tiVe, including the amounts of mai:ijuaRa StGFed at the leGatien Ell EIRY given
tFaRsferrerl the date tFa ..fewer Rd the full RAFAP .S the Fn ..+h..r ♦e.. hRm itwas
tFaneferred; (9) a I..g dGG erd'ne the date natuite, and r e by the collective to all
GemplaiRts FeGeived by the GelleGtive; (10) a Gepy ef the annual audit reports required by
55394.00000 \8932745.1 10
55D -16
Formatter]: Font: (Default) Nial, Fon[color.
Black
this arkle; (14) the testing log required to be maintained pursuant te thiR WtiSlp; and
(6642) proof of compliance with the California Attorney General Guidelines for the
Security and Non - Diversion of Marijuana Grown for Medical Use. These records shall
be maintained by the collective for a period of five years and shall be made available by
the collective to the Police Department and /or Community Preservation Division upon
request , exGept that pFivate mAdiARI FeggFds shall be made available by the nellestive t
the o..i:, a n, paFt.. ent If they are not produced as requested the City may seek a enty
PFGpe y exeGuted search warrant, subpoena, or court order. In addition to
all other formats that the collective may maintain, these records shall be stored by the
collective at the location in a printed format in its fire -proof safe. Any loss, damage or
destruction of the records shall be reported to the Police Department within 24 hours of
the loss, destruction or damage.
18 -617.5 Audits and testing.
(a) Annual Audits. No later than February 15 of every year, each collective shall
file with the City one copy of an audit of its operations of the previous calendar year,
completed and certified by an independent certified public accountant in accordance
with generally accepted auditing and accounting principles. The audit shall include but
not be limited to a discussion, analysis, and verification of each of the records required
to be maintained pursuant to this article.
(b) Testing of Medical Marijuana. The collective shall use an independent and
certified laboratory to analyze a representative sample of dried medical marijuana and
a representative sample of edible marijuana for pesticides and any other regulated
contaminants pursuant to established local, state, or federal regulatory or statutory
standards at levels of sensitivity established for the food and drug supply before
providing the medical marijuana to its members. Any medical marijuana from which the
representative sample analysis tested positive for a pesticide or other contaminant at a
level which exceeds the local, state, or federal regulatory or statutory standard for the
food and drug supply shall not be provided to members and shall be destroyed
forthwith. Any medical marijuana provided to members shall be properly labeled in strict
compliance with state and local laws.
(c) Testing Log. The collective shall maintain a written log at the location
documenting the date, type, and amount of marijuana tested; the name of the laboratory
where the marijuana was tested; the laboratory report containing the results of the
testing, including the name and level of the substance detected; and the disposition of
the marijuana from which the contaminated sample was obtained, including the amount
of marijuana and the date and manner of disposition.
18 -618. Inspection and enforcement responsibilities.
The Community Preservation Division may enter and inspect the location of any
collective between the hours of 10:00 a.m. and 8:00 p.m., or at any reasonable time, to
55394.00000 \8922745.1 11
55D -17
ensure compliance with this article. In addition, a designated unit within the Police
Department may enter and inspect the location of any collective and the recordings and
records maintained as required by this article, except that the inspection and copying of
private medical records shall be made available to the Police Department only pursuant
to a properly executed search warrant, subpoena, or court order. It is unlawful for any
owner, landlord, lessee, member (including but not limited to a member engaged in the
management), or any other person having any responsibility over the operation of the
collective to refuse to allow, impede, obstruct or interfere with an inspection, review or
copying of records and closed- circuit monitoring authorized and required under this
article, including but not limited to, the concealment, destruction, and falsification of any
recordings, records, or monitoring.
18 -619. Applicability to existing medical marijuana operations.
Any existing medical marijuana collective, dispensary, operator, establishment,
or provider that does not comply with the requirements of this article must immediately
cease operation until such time, if any, when it complies fully with the requirements of
this article. No medical marijuana collective, dispensary, operator, establishment, or
provider that existed prior to the enactment of this article shall be deemed to be a legally
established use under the provisions of this article, and such medical marijuana
collective, dispensary, operator, establishment, or provider shall not be entitled to claim
legal nonconforming status.
18.620. Compliance with this article and state law.
(a) It is unlawful for any person to (cause, permit or engage in the
cultivation, possession, distribution or giving away of marijuana for
(ii) own establish, operate. use or Permit the establishment or operation of a medical
marijuana collective or cooperative, or to participate as an employee, contractor, agent
or volunteer of a collective or cooperative, except as provided in this article, and
pursuant to any and all other applicable local and state laws.
(b) It is unlawful for any person to cause, permit or engage in any activity
related to medical marijuana except as provided in Health and Safety Code Sections
11362.5 et seq., and pursuant to any and all other applicable local and state laws.
(c) It is unlawful for any person to knowingly make any false, misleading or
inaccurate statements or representations in any forms, records, filings or documentation
required to be maintained, filed or provided to the City under this article, or to any other
local, state or federal government agency having jurisdiction over any of the activities of
collectives.
(d) It shall be the sole responsibility of the members engaged in the
management of the collective to ensure that the collective is at all times operating in a
manner compliant with all applicable state laws and this article. Nothing in this article
shall be construed as authorizing any actions which violate state law with regard to the
55394.00000 \8922745.1 12
55D -18
cultivation, transportation, provision, and sale of medical marijuana.
18.621. Violation and enforcement.
Each and every violation of this article shall constitute a separate violation and
shall be subject to all remedies and enforcement measures authorized by this
Municipal Code. Additionally, as a nuisance per se, any violation of this article shall be
subject to injunctive relief, revocation of the collective's registration, revocation of the
certificate of occupancy for the location, disgorgement and payment to the City of any
and all monies unlawfully obtained, costs of abatement, costs of investigation, attorney
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 any violations committed by the collective and persons related or associated
with the collective.
55394.00000\8922745.1 13
55D -19
SECTION 3. Section 41 -121 of the Santa Ana Municipal Code is hereby deleted
in its entirety.
SECTION 4. Subsection (b) of Section 41 -144 of the Santa Ana Municipal Code
is hereby deleted in its entirety.
SECTION 5. Chapter 21, Article XII of the Santa Ana Municipal Code, comprised
of sections 21 -126, 21 -127, 21 -128, 21 -129 and 21 -130, is hereby added such that it
reads as follows:
Sec. 21 -126. Purpose.
This article is required for the purpose of fixing the rate of taxation for Marijuana
Collectives /Cooperatives and for the purpose of providing a tax levy for the usual and
current expenses of the City of Santa Ana. 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. 21.127. Marijuana collectives /cooperatives — Annual business license
tax assessment.
(a) Annual business license tax assessment for Marijuana
Collectives/Cooperatives:
(1) Every Collective /Cooperative whether it is organized or conducted
as a "not for profit' business, a "non - profit' business, or a "for- profit business," shall pay
an annual business license tax in accordance with Chapter 21 of this Code and the
Sections and Subsections hereunder.
(2) For the purposes of this article, a Marijuana Collective /Cooperative
is defined in section 18 -611 of this Municipal Code and is considered to be a
business as that term is defined in Section 21 -3 of this Chapter.
(3) For the purposes of this article, a Collective /Cooperative is not
considered to be a religious or charitable organization.
(4) "Medical Marijuana Collective /Cooperative" or
"Collective /Cooperative" shall mean any activity regulated or permitted by Chapter 18 of
this Municipal Code.
(5) For the purposes of this article, a Marijuana Collective /Cooperative
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.
(6) For the purposes of this article, a "Nonprofit Organization" shall
mean any institution or organization that is exempted from taxes measured by
income or gross receipts pursuant to Article XIII, Section 26 of the California
55394.00000A8922745.1 14
55D -20
Constitution as codified under Chapter 4 (commencing with Section 23701) of
Part 11 of Division 2 of the Revenue and Taxation Code and Section 37101 (c) of
the Government Code or Sub - Chapter F (commencing with Section 501) of
Chapter 1 of Subtitle A of the Internal Revenue Code of 1986. An institution or
organization operating as a Collective /Cooperative and claiming a gross receipts
assessment business license tax exemption under this section shall have the
burden of furnishing to the collector such information as the collector may require
to validate the claim of exemption including but not limited to such a
determination by the California Franchise Tax Board or any other information
requested by the collector.
(7) For the purposes of this article, "gross receipts" shall mean any
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 marijuana whatsoever,
including, but not limited to, membership dues, reimbursements provided by
members, regardless of form, or the total amount, in any calendar year of cash or
in -kind contributions, including all operating costs related to the growth,
cultivation or provision of marijuana or any transaction related thereto. "Gross
receipts" shall also include without limitation anything else of value obtained by a
Collective /Cooperative. The term "gross receipts" shall also include the total
amount, in any calendar year, of the sale price of all sales, 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, merchandise,
for which a charge is made or credit allowed, including all refunds, cash credits
and properties of any amount or nature, 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. "Gross
receipts" shall also include 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. "Gross receipts" shall not
include the amount of any federal tax imposed on or with respect to retail sales
whether or not the amount of such tax is stated as a separate charge. "Gross
receipts" shall not include the amount of any federal tax imposed on or with
respect to retail sales whether imposed upon the retailer or the consumer and
regardless of whether or not the amount of federal tax is stated to customers as a
separate charge, or any California state, city or city and county sales or 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. "Gross receipts" shall be calculated without
any deduction on account of any of the following:
55394.00000 \8922745.1 15
55D -21
(i) The cost of tangible property sold or bartered;
(ii) The cost of materials or products used, labor or service cost,
interest paid, losses, or other expense; or
(iii) The cost of transportation of the marijuana, or other property
or product.
(b) Business license tax rates for Marijuana Collectives /Cooperatives.
(1) Every Collective /Cooperative, excepting a qualified "Nonprofit
Organization', whether it is organized or conducted as a "not for profit' business, a
"non- profit" business, a "for- profit business," shall pay a separate business license tax
at a rate of up to ten percent (10 %) of the gross receipts generated or otherwise
received for each branch establishment or separate property location of the business.
The gross receipts tax shall be initially set at a rate of five percent (5 %). The maximum
tax rate shall not exceed ten percent (10 %) of gross receipts. This tax shall not be
adjusted for inflation pursuant to Section 21 -121 of this Chapter.
(2) Notwithstanding the maximum tax rate of ten percent (10 %) of
gross receipts imposed under subsection (b)(1), the City Council may in its
discretion at any time by ordinance implement a lower gross receipts tax rate for
all Marijuana Collectives /Cooperatives, as defined in such ordinance, subject to
the maximum rate of ten percent (10 %) of gross receipts. The City Council may
by ordinance increase any such gross receipts tax rate from time to time, not to
exceed the maximum gross receipts tax rate established under subsection (b)(1).
(3) As part of the gross receipts tax imposed by this article, each
Collective /Cooperative shall pay a minimum basic rate of two thousand dollars
annually for each separate branch location or separate property location of the
business.
(c) 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.
(d) Administration - rules,
interpretation /clarification.
55394.00000 \9922745.1 16
regulations, and guidelines;
55D -22
In order to aid in the City's collection of taxes due under this article and to ensure
that all Marijuana Collectives /Cooperatives 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.
(e) Occasional transactions — Exemptions
(1) The provisions of this article shall not apply to persons having no
fixed place of business within the City of Santa Ana who come into the city for the
purpose of transacting a specific item of marijuana business at the request of a
specific patient, client or customer, provided that such person does not come into
the city for the purpose of transacting business on more than five days during
any calendar year.
(2) For any person not having a fixed place of business within the City
of Santa Ana who comes into the city for the purpose of transacting
Collective /Cooperative activities, the business tax payable by such
person may be apportioned by the collector in accordance with this Chapter.
(f) Reporting and Remittance
Beginning as set forth in subsection (k) below, and monthly thereafter, each
Marijuana Collectives /Cooperatives (except qualified Nonprofit Organizations exempt
from taxes measured by income or gross receipts) required to pay a tax based on gross
receipts under this article, shall report to the city any gross receipts received during the
preceding monthly reporting period and shall likewise remit to the city the taxes due and
owing during said period. For purposes of this section, month shall mean calendar
month, and taxes shall begin to accrue on the date that a person or entity first receives
a business license or other permit to operate as a Collective /Cooperative.
The payment of the two thousand dollars minimum basic rate gross receipts tax
required annually for each separate branch location or separate property location of the
business in accordance subsection (b)(3), shall be made annually prior to the beginning
of the fiscal year beginning April first of the current year and expiring on the thirty -first
day of March of the following year. In the case of a new Collective /Cooperative 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 (Ya) 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.
55394.00000A8922745.1 17
55D -23
(g) 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 Chapter and failure to send such notice or
bill shall not affect the validity of any tax or penalty due under the provisions of this
Chapter.
(h) Payment of tax does not authorize unlawful business.
(1) 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
Collective /Cooperative unless the person has complied with all of the
requirements of this code and all other applicable laws, nor to carry on any
Collective /Cooperative 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 Collective /Cooperative is in violation of any law.
(2) 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.
Nothing in this article implies or authorizes that any activity connected with the
distribution or possession of marijuana is legal unless otherwise authorized and allowed
by California and federal law. Nothing in this section shall be applied or construed as
authorizing the sale of marijuana.
(i) Business license tax certificate - Required.
There are imposed upon all persons engaged in transacting and carrying on any
Collective /Cooperative business activities 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 Collective /Cooperative without
complying with all the provisions of this article shall constitute a separate violation of this
Chapter for each and every day that such Collective /Cooperative is so carried on.
Q) Classification of business license assessment type — term and renewal.
The business license issued to Marijuana Collectives /Cooperatives shall be
classed as a gross receipts assessment type, issued for the same term of license as set
forth in Section 21 -71 (c) and shall be subject to renewal in accordance with Sections
21- 72(c), 21- 73(c), and 21 -77 of this Chapter.
(k) Operative Date.
55394.00000A8912745.1 18
55D -24
Upon the approval by the majority of the voters of the City of Santa Ana at the
November 4, 2014 general election, the taxes imposed by this article shall become
operative and shall be applied by the collector upon all Marijuana
Coll ectives /Cooperatives.
Sec. 21 -128. Effect of state and federal reference /authorization.
Unless specifically provided otherwise, any reference to a State or Federal
statute in this article or Chapter 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 -129. 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 Penal
Code section 19.—by a fine Of Rat FnGF., thAR fi -P a`upelFed dGlla -5 OF by iFR ...:.............t r..-
Sec. 21 -130. 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.
SECTION 6. Council to Make Future Amendments to Voter Approved
Ordinance. This is a City Council sponsored initiative ordinance t6i. t�s.,a,��" which
traditionally would only be subiect to amendmented by the Voters of the City of Santa
Ana. However, pursuant to Section 9217 cW the California Elections Code the and
Gannet be amended by the Santa Ana City Council except as speGifiGally pFevided
within the GFdinanee eF in this SeGtlen 6. The City Council reserves the right and
55394.00000 \8922745.1 19
55D -25
authority to amend or repeal the ordinance without any restrictions. at- aay-time afteFa
€ederaLlaws
ALTERNATIVE SECTION 6
SECTION 7. Severability. If any provision of this Ordinance or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of the Ordinance which can be given effect without the
invalid provision or application, and to this end the provisions of this ordinance are
severable. 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.
SECTION 8. 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.
SECTION 9. 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 appear on the same ballot, the provisions of the other measure or 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 required to pass than the other measure
or measures, the provisions of this measure shall prevail in their entirely over the
competing measure or measures, and the competing measure or measures shall be null
and void.
55794.00000 \8923745.1 20
55D -26
Formatted: Font: Italic, Underline
EXHIBIT 1
PROPOSED ORDINANCE
CLEAN COPY
55D -27
SRC:06/25/15; V1
ORDINANCE NO. NS -2846
AN ORDINANCE OF THE PEOPLE OF THE CITY OF
SANTA ANA AMENDING CHAPTER 18 OF THE
MUNICIPAL CODE TO DELETE AND REPLACE ARTICLE
XIII, TO DELETE SECTION 41 -121, DELETE SUBSECTION
(B) OF SECTION 41 -144, AND AMEND ARTICLE XII OF
CHAPTER 21 BY ADDING SECTIONS 21 -126, 21 -127, 21-
128, 21 -129 and 21 -130 TO REGULATE THE
ESTABLISHMENT, OPERATION AND TAXATION OF
MEDICAL MARIJUANA COLLECTIVES AND
COOPERATIVES
WHEREAS, in 1996, the California electorate approved Proposition 215, the
Compassionate Use Act of 1996, which allows a patient, with a doctor's
recommendation, to use marijuana for medical purposes without the fear of prosecution
or arrest; and
WHEREAS, in 2003, the California legislature passed Senate Bill 420 (Medical
Marijuana Program Act) which amended the Health and Safety Code to permit the
establishment of medical marijuana dispensaries for the distribution of marijuana for
medical purposes; and
WHEREAS, cities where medical marijuana dispensaries have been permitted to
operate have experienced significant problems, including burglaries and takeover
robberies of dispensaries, robberies of customers leaving dispensaries, an increase in
crime (especially thefts and robberies) in the vicinity of dispensaries, illegal re- selling of
marijuana obtained from dispensaries, physicians issuing apparently fraudulent
recommendations for the use of marijuana, collective staff selling marijuana to
customers with obviously counterfeit patient identification cards, street dealers
attempting to sell marijuana to collective customers, collective customers using
marijuana and then driving under the influence of marijuana, the sale of illegal drugs
other than marijuana in the dispensaries, sales of marijuana to minors; and
WHEREAS, after studying various alternatives for the regulation of medical
marijuana dispensaries, considering testimony from members of the public, and
reviewing the legal status of medical marijuana dispensaries under applicable law, the
City Council finds that the regulation and operation of medical marijuana dispensaries is
necessary to protect the public health, safety, and welfare by mitigating the adverse
secondary effects from the operations of medical marijuana dispensaries; and
WHEREAS, the City of Santa Ana has a compelling interest in ensuring that
marijuana is not distributed 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
1
55D -28
neighborhoods in which medical marijuana collectives operate, and in providing
compassionate access to medical marijuana to its seriously ill residents.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF SANTA ANA DO
ORDAIN AS FOLLOWS:
SECTION 1. The People hereby adopt the recitals and findings set forth above and in
the request for Council action -staff report prepared in connection with this ordinance.
SECTION 2. Article XIII of Chapter 18 of the Santa Ana Municipal Code is hereby
deleted in its entirety and replaced with the following:
Chapter 18
ARTICLE XIII. MEDICAL MARIJUANA COLLECTIVES /COOPERATIVES
18 -610. Purposes and intent.
It is the purpose and intent of this article to regulate the collective distribution of
medical marijuana 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 (collectively referred to as "State Law ") do not interfere with a patient's
right to use medical marijuana as authorized under State Law, nor do they criminalize
the possession or cultivation of medical marijuana by specifically defined classifications
of persons, as authorized under State Law. Under State Law, only qualified patients,
persons with identification cards, and primary caregivers may cultivate medical
marijuana collectively. Medical marijuana collectives shall comply with all provisions of
the Santa Ana Municipal Code ( "Code "), State Law, the 2008 California Attorney
General Guidelines for the Security and Non - Diversion of Marijuana Grown for Medical
Use, and all other applicable local and state laws. Nothing in this article purports to
permit activities that are otherwise illegal under state or local law.
18 -611. Definitions.
(a) "Cultivation" and /or "Cultivate" shall mean the planting, growing, harvesting,
drying, processing, or storage of one or more marijuana plants or any part thereof.
(b) "Medical Marijuana Collective" or "Cooperative" means any facility or location
where medical marijuana is made available and /or distributed by or to one or more of
the following: a primary caregiver, a qualified patient or a person with an identification
card in strict accordance with California Health and Safety Code Section 11362.5 et
seq., as sometimes amended. A "medical marijuana collective" shall not include the
following uses, as long as the location of such uses are otherwise regulated by this
Code or applicable law: a clinic licensed pursuant to Chapter 1 of Division 2 of the
Health and Safety Code, a health care facility licensed pursuant to Chapter 2 of Division
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2 of the Health and Safety Code, a residential care facility for persons with chronic life -
threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the Health and
Safety Code, a residential care facility for the elderly licensed pursuant to Chapter 3.2 of
Division 2 of the Health and Safety Code, a residential hospice or a home health agency
licensed pursuant to Chapter 8 of Division 2 of the Health and Safety Code, as long as
such use complies strictly with applicable law including, but not limited to, Health and
Safety Code Section 11362.5 et seq. For purposes of this Municipal Code,
"Dispensary" and "Dispensaries" have the same the same meaning as Collective or
Cooperative.
(c) "Identification Card" shall have the same definition as that contained in
Health and Safety Code § 11362.7 et seq., as sometimes amended.
(d) "Manager" means any person responsible for the establishment,
organization, supervision, or oversight of the operation of a Collective, including but not
limited to members who perform the functions of president, vice - president, director,
operating officer, financial officer, secretary, or treasurer. Ability to control one or more
of the following functions shall be prima facie evidence that such person is a manager:
(1) to hire, select, or separate employees or staff, including volunteers; (2) to acquire
facilities, furniture, equipment or supplies other than occasional replenishment of stock;
(3) to disburse funds of the business other than occasional expenditures for
replenishment of stock; or (4) to make, or participate in making, policy decisions relative
to the operations of the business.
(e) "Marijuana" shall have the same definition as that contained in Health and
Safety Code § 11018 as sometimes amended.
(f) "Medical Marijuana" shall have the same definition as that contained in
Health and Safety Code § 11362.5 et seq., as sometimes amended.
(g) "Primary Caregiver" shall have the same definition as that contained in
Health and Safety Code § 11362.5 and 11362.7, as sometimes amended.
(h) "Qualified Patient" shall have the same definition as that contained in
Health and Safety Code § 11362.5 as sometimes amended.
18 -612. Scope of article.
The operating standards established in this chapter apply to any site, facility,
location, use, cooperative or business currently operating in the City of Santa Ana, or
which commences operations after the effective date of this Article, that distributes,
dispenses, stores, sells, exchanges, processes, delivers, or gives away, medical
marijuana to qualified patients, health care providers, patients' primary caregivers, or
physicians, pursuant to Health & Safety Code § 11362.5 (adopted as Proposition 215,
the "Compassionate Use Act of 1996 ") or any state regulations adopted in furtherance
thereof. Any collective in the City of Santa Ana shall operate in conformance with the
operating standards set forth in section 18 -613 of this Code to assure that the
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operations of the collective are in compliance with California law and to mitigate the
adverse secondary effects from operations of dispensaries.
18 -613. Operating standards.
(a) At all times the collective is open, a collective shall provide at least one
security guard who is licensed, possesses a valid Department of Consumer Affairs
"security guard card ", and has a valid Santa Ana Business License. Security guards
shall not possess firearms.
(b) The security guard and collective personnel shall monitor the site and the
immediate vicinity of the site to assure that patrons immediately leave the site and not
consume medical marijuana in the vicinity of the collective or on the property or in the
parking lot.
(c) Exterior signage shall be limited to one wall sign not to exceed ten square
feet in area and may not be externally or internally illuminated. Interior signage or
advertising may not be visible from the exterior.
(d) No recommendations from a doctor for medical marijuana shall be issued
on -site.
(e) There shall be no on -site sales of alcohol or tobacco products, and no on-
site consumption of food, alcohol, tobacco or marijuana by patrons.
(f) Hours of operation shall be limited to: Monday -- Saturday 10 a.m. —and 8
p.m. and Sunday 11a.m. - -7 p.m.
(g) The property provides a sufficient odor absorbing ventilation and exhaust
system so that odor generated inside the property is not detected outside the property,
anywhere on adjacent property or public rights -of -way, or within any other unit located
within the same building as the collective.
(h) A collective shall only dispense medical marijuana to qualified patients
and their caregivers as defined by California Health and Safety Code § 11362.5
(Proposition 215). This shall include possession of an original valid doctor's
recommendation, not more than one year old, for medical marijuana use by the patient.
(i) A collective shall notify patrons of the following both verbally and through
posting of a sign in a conspicuous location:
(1) Use of medical marijuana shall be limited to the patient identified on
the doctor's recommendation. Secondary sale, barter or distribution of medical
marijuana is a crime and can lead to arrest.
(2) That loitering on and around the collective site is prohibited by
California Penal Code § 647(e) and that patrons must immediately leave the site
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and not consume medical marijuana in the vicinity of the collective or on the
property or in the parking lot.
(3) Forgery of medical documents is a felony crime.
(4) A warning that patrons may be subject to prosecution under federal
marijuana laws.
(5) That the use of medical marijuana may impair a person's ability to
drive a motor vehicle or operate machinery.
Q) A collective shall not provide marijuana to any individual in an amount not
consistent with personal medical use.
(k) A collective shall not store more than $200.00 in cash reserves overnight
on the premises and shall make at least one daily bank drop that includes all cash
collected on that business day.
(1) No one under 21 years of age shall be permitted to enter establishment,
unless such person is a qualified patient and is accompanied by his or her Primary
Caregiver, licensed Attending Physician, parent(s) or documented legal guardian.
(m) A collective shall provide the name and phone number of an on -site staff
person to the Police Department and Community Preservation Division for notification if
there are operational problems with the establishment.
(n) Each collective operator(s) and employees shall complete a criminal
background check. Employees, managers or volunteers may not have been convicted
of, or plead guilty /no- contest to a felony or misdemeanor drug charge within the past
four years.
(o) Marijuana shall not be grown or cultivated at collective sites, except that
cuttings of the marijuana plant may be kept or maintained on -site for
distribution to qualified patients and primary caregivers as follows:
(1) The cuttings shall not be utilized by a collective as a source for the
provision of marijuana for consumption on -site, however, upon
provision to a qualified patient or primary caregiver, that person
may use the cuttings to cultivate marijuana plants off -site for their
own use and they may also return marijuana from the resulting
mature plant for distribution by the collective.
(2) For the purposes of this paragraph, the term "cutting" shall mean a
rootless piece cut from a marijuana plant, which is no more than six
inches in length, and which can be used to grow another plant in a
different location.
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(p) A collective shall comply with applicable provisions of the California Health
and Safety Code §§ 11362.5 through 11362.83, inclusive.
(q) If food is distributed, the collective shall comply which all relevant state
laws and city ordinances pertaining to the preparation, distribution and
sale of food.
(r) The location, interior and exterior, shall be monitored at all times by web -
based closed- circuit television for security purposes. The camera and
recording system must be of adequate quality, color rendition and
resolution to allow the ready identification of any individual committing a
crime anywhere on or adjacent to the location. The recordings shall be
maintained for a period of not less than ninety days. The Police
Department may request the recordings in connection with an
investigation. If the recordings are not voluntarily provided, the Police
Department may seek a warrant or court order for the recordings.
(s) The location shall have a centrally- monitored fire and burglar alarm
system and the building or the portion of the building where the collective
is located shall contain a fire -proof safe;
(t) No manufacture of concentrated cannabis in violation of California Health
and Safety Code section 11379.6 is allowed;
(u) No collective shall operate for profit. Cash and in -kind contributions,
reimbursements, and reasonable compensation provided by members
towards the collective's actual expenses of the growth, cultivation, and
provision of medical marijuana shall be allowed provided that they are in
strict compliance with State Law. All such cash and in -kind amounts and
items shall be fully documented.
18 -614. Reserved.
18 -615. Zones permitted.
No collective shall operate within a residential (R -1, R -2, R -3, R -4, RE, CR) zone,
Professional (P) zone, Arterial Commercial (C -5) zone, Planned Shopping Center (C -4)
zone, Specific Development (SD), Specific Plan (SP) or Agricultural (A -1) zone. A
Collective may only operate in an Industrial zone (M -1, M -2) in accordance with this
Article.
18 -616. Separation requirements.
(a) No collective shall be located within 500 feet of another Medical Marijuana
Collective or Cooperative or within 1,000 feet of any:
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(1) School;
(2) Park;
(3) Residential zone.
18 -617. Permit required.
A Conditional Use Permit shall be required for a Medical Marijuana Collective
Use and shall be reviewed and processed in accordance with Chapter 41 Division 1 of
this Municipal Code.
18- 617.2. Medical marijuana collective — permit application process.
Any Medical Marijuana Collective desiring a permit required by this chapter
shall, prior to initiating operations, complete and file an application for each location on
a form supplied by the Planning and Building Agency, and shall submit with the
completed application payment of a nonrefundable processing and notification fee, as
established by the City Council.
(a) Filing. The Medical Marijuana Collective shall provide the following
information:
(1) The address of the property where the proposed Medical Marijuana
Collective(s) will operate;
(2) A site plan describing the property with fully dimensioned interior
and exterior floor plans including electrical, mechanical, plumbing, and disabled
access compliance pursuant to Title 24 of the State of California Code of
Regulations and the federally mandated Americans with Disabilities Act;
(3) Exterior photographs of the entrance(s), exits(s), street frontage(s),
parking, front, rear and side(s) of the proposed property;
(4) Photographs depicting the entire interior of the proposed property;
(5) If the property is being rented or leased or is being purchased
under contract, a copy of such lease or contract;
(6) If the property is being rented or leased, written proof that the
property owner, and landlord if applicable, were given notice that the property will
be used as a Medical Marijuana Collective, and that the property owner, and
landlord if applicable, agree(s) to said operations;
(7) The name, address, telephone number, title and function(s) of each
manager, employee, volunteer, etc.;
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(8) For each manager, employee, volunteer, a fully legible copy of one
valid government issued form of photo identification, such as State Driver's
License or Identification Card;
(9) If the Medical Marijuana Collective is a corporation, a certified
copy of the Collective's Secretary of State Articles of Incorporation, Certificate(s)
of Amendment, Statement(s) of Information and a copy of the Collective's
Bylaws;
(10) If the Medical Marijuana Collective is an unincorporated association,
a copy of the Articles of Association;
(11) The name and address of the applicant's current agent for Service of
Process;
(12) A copy of the Medical Marijuana Collective Operating Standards,
listed in Section 18 -613, containing a statement dated and signed by the
responsible party on -site stating under penalty of perjury, that they read,
understand and shall ensure compliance with the aforementioned operating
standards.
18 -617.3 Application timing and lottery selection.
(a) On November 18, 2014, at 8:00 a.m., the Planning and Building Agency
will make applications for a permit available at the planning counter in City Hall and
online on the City's website. On December 1, 2014, at 8:00 a.m., the Planning and
Building Agency will begin collecting applications at the planning counter or other
location at City Hall designated at least twenty -four (24) hours in advance by the
Executive Director of the Planning and Building Agency. Applications shall be
submitted in person during business hours until 5:00 p.m. on December 8, 2014.Multiple
submissions from the same applicant at the same location will result in immediate
disqualification from the registration process. Applications received within the time
period noted above will be placed into a lottery system which will be randomly selected
by the Executive Director or his /her designee.
(b) The lottery will be conducted in City Council Chambers or a City
conference room accessible to the public on December 22, 2014 at 3:00 p.m.
Applications will be selected through the lottery system at random by the Executive
Director of the Planning and Building Agency or his /her designee.
(c) After the lottery, if during review any application is determined to be
incomplete, the applicant shall be notified in writing within ten business days of the date
the application is determined to be incomplete.
(d) The Collective shall have 30 -days from the date of notice set forth in
subsection (c) to complete the application. Failure to do so within the time allotted shall
render the application null and void.
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(e) If applications are determined to be not complete after 30 days, permitted
collectives close, permits are revoked, or other circumstances occur which result in
permits becoming available, the Executive Director will give all remaining applicants
from the original application pool written notice of no less than five (5) calendar days' at
their address on the application of the permit(s). A lottery will then be held to pick
additional applicants from the original applicant pool. This procedure will be done until
the original applicant pool has been exhausted. Once the original applicant pool is
exhausted, a new application submission period will be established by the Executive
Director that complies with the procedures set forth in this section and with dates
determined by the Executive Director and notice of such will be published to the public
in a newspaper of general circulation at least 72 hours before applications are made
available.
18.617.4 Maintenance of records.
A Medical Marijuana Collective shall maintain records at the location accurately
and truthfully documenting: (1) the full name, address, and telephone number(s) of the
owner, landlord and /or lessee of the location; (2) the full name, address, and telephone
number(s) of all members who are engaged in the management of the collective and
the exact nature of each member's participation in the management of the collective; (3)
the full name, address, and telephone number(s) of all patient members to whom the
collective provides medical marijuana, a copy of a government- issued identification card
for all patient members; (4) the full name, address, and telephone number(s) of all
primary caregiver members to whom the collective provides medical; (5) all receipts of
the collective, including but not limited to all contributions, reimbursements, and
reasonable compensation, whether in cash or in kind, and all expenditures incurred by
the collective for the cultivation of medical marijuana; and (6) proof of compliance with
the California Attorney General Guidelines for the Security and Non - Diversion of
Marijuana Grown for Medical Use. These records shall be maintained by the collective
for a period of five years and shall be made available by the collective to the Police
Department and /or Community Preservation Division upon request. If they are not
produced as requested the City may seek a search warrant, subpoena, or court order.
In addition to all other formats that the collective may maintain, these records shall be
stored by the collective at the location in a printed format in its fire -proof safe. Any loss,
damage or destruction of the records shall be reported to the Police Department within
24 hours of the loss, destruction or damage.
18 -617.5 Audits and testing.
(a) Annual Audits. No later than February 15 of every year, each collective shall
file with the City one copy of an audit of its operations of the previous calendar year,
completed and certified by an independent certified public accountant in accordance
with generally accepted auditing and accounting principles. The audit shall include but
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not be limited to a discussion, analysis, and verification of each of the records required
to be maintained pursuant to this article.
(b) Testing of Medical Marijuana. The collective shall use an independent and
certified laboratory to analyze a representative sample of dried medical marijuana and
a representative sample of edible marijuana for pesticides and any other regulated
contaminants pursuant to established local, state, or federal regulatory or statutory
standards at levels of sensitivity established for the food and drug supply before
providing the medical marijuana to its members. Any medical marijuana from which the
representative sample analysis tested positive for a pesticide or other contaminant at a
level which exceeds the local, state, or federal regulatory or statutory standard for the
food and drug supply shall not be provided to members and shall be destroyed
forthwith. Any medical marijuana provided to members shall be properly labeled in strict
compliance with state and local laws.
(c) Testing Log. The collective shall maintain a written log at the location
documenting the date, type, and amount of marijuana tested; the name of the laboratory
where the marijuana was tested; the laboratory report containing the results of the
testing, including the name and level of the substance detected; and the disposition of
the marijuana from which the contaminated sample was obtained, including the amount
of marijuana and the date and manner of disposition.
18 -618. Inspection and enforcement responsibilities.
The Community Preservation Division may enter and inspect the location of any
collective between the hours of 10:00 a.m. and 8:00 p.m., or at any reasonable time, to
ensure compliance with this article. In addition, a designated unit within the Police
Department may enter and inspect the location of any collective and the recordings and
records maintained as required by this article, except that the inspection and copying of
private medical records shall be made available to the Police Department only pursuant
to a properly executed search warrant, subpoena, or court order. It is unlawful for any
owner, landlord, lessee, member (including but not limited to a member engaged in the
management), or any other person having any responsibility over the operation of the
collective to refuse to allow, impede, obstruct or interfere with an inspection, review or
copying of records and closed- circuit monitoring authorized and required under this
article, including but not limited to, the concealment, destruction, and falsification of any
recordings, records, or monitoring.
18 -619. Applicability to existing medical marijuana operations.
Any existing medical marijuana collective, dispensary, operator, establishment,
or provider that does not comply with the requirements of this article must immediately
cease operation until such time, if any, when it complies fully with the requirements of
this article. No medical marijuana collective, dispensary, operator, establishment, or
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5501-37
provider that existed prior to the enactment of this article shall be deemed to be a legally
established use under the provisions of this article, and such medical marijuana
collective, dispensary, operator, establishment, or provider shall not be entitled to claim
legal nonconforming status.
18 -620. Compliance with this article and state law.
(a) It is unlawful for any person to (i) cause, permit or engage in the
cultivation, possession, distribution or giving away of marijuana or (ii) own establish,
operate, use or permit the establishment or operation of a medical marijuana collective
or cooperative, or to participate as an employee, contractor, agent or volunteer of a
collective or cooperative, except as provided in this article, and pursuant to any and all
other applicable local and state laws.
(b) It is unlawful for any person to cause, permit or engage in any activity
related to medical marijuana except as provided in Health and Safety Code Sections
11362.5 et seq., and pursuant to any and all other applicable local and state laws.
(c) It is unlawful for any person to knowingly make any false, misleading or
inaccurate statements or representations in any forms, records, filings or documentation
required to be maintained, filed or provided to the City under this article, or to any other
local, state or federal government agency having jurisdiction over any of the activities of
collectives.
(d) It shall be the sole responsibility of the members engaged in the
management of the collective to ensure that the collective is at all times operating in a
manner compliant with all applicable state laws and this article. Nothing in this article
shall be construed as authorizing any actions which violate state law with regard to the
cultivation, transportation, provision, and sale of medical marijuana.
18 -621. Violation and enforcement.
Each and every violation of this article shall constitute a separate violation and
shall be subject to all remedies and enforcement measures authorized by this
Municipal Code. Additionally, as a nuisance per se, any violation of this article shall be
subject to injunctive relief, revocation of the collective's registration, revocation of the
certificate of occupancy for the location, disgorgement and payment to the City of any
and all monies unlawfully obtained, costs of abatement, costs of investigation, attorney
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 any violations committed by the collective and persons related or associated
with the collective.
SECTION 3. Section 41 -121 of the Santa Ana Municipal Code is hereby deleted
in its entirety.
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SECTION 4. Subsection (b) of Section 41 -144 of the Santa Ana Municipal Code
is hereby deleted in its entirety.
SECTION 5. Chapter 21, Article XII of the Santa Ana Municipal Code, comprised
of sections 21 -126, 21 -127, 21 -128, 21 -129 and 21 -130, is hereby added such that it
reads as follows:
Chapter 21
Sec. 21 -126. Purpose.
This article is required for the purpose of fixing the rate of taxation for Marijuana
Collectives /Cooperatives and for the purpose of providing a tax levy for the usual and
current expenses of the City of Santa Ana. 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 -127. Marijuana collectives /cooperatives — Annual business license
tax assessment.
(a) Annual business license tax assessment for Marijuana
Collectives /Cooperatives:
(1) Every Collective /Cooperative whether it is organized or conducted
as a "not for profit' business, a "non - profit' business, or a "for- profit business," shall pay
an annual business license tax in accordance with Chapter 21 of this Code and the
Sections and Subsections hereunder.
(2) For the purposes of this article, a Marijuana Collective /Cooperative
is defined in section 18 -611 of this Municipal Code and is considered to be a
business as that term is defined in Section 21 -3 of this Chapter.
(3) For the purposes of this article, a Collective /Cooperative is not
considered to be a religious or charitable organization.
(4) "Medical Marijuana Collective /Cooperative" or
"Collective /Cooperative" shall mean any activity regulated or permitted by Chapter 18 of
this Municipal Code.
(5) For the purposes of this article, a Marijuana Collective /Cooperative
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.
(6) For the purposes of this article, a "Nonprofit Organization" shall
mean any institution or organization that is exempted from taxes measured by
income or gross receipts pursuant to Article XIII, Section 26 of the California
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Constitution as codified under Chapter 4 (commencing with Section 23701) of
Part 11 of Division 2 of the Revenue and Taxation Code and Section 37101 (c) of
the Government Code or Sub - Chapter F (commencing with Section 501) of
Chapter 1 of Subtitle A of the Internal Revenue Code of 1986. An institution or
organization operating as a Collective /Cooperative and claiming a gross receipts
assessment business license tax exemption under this section shall have the
burden of furnishing to the collector such information as the collector may require
to validate the claim of exemption including but not limited to such a
determination by the California Franchise Tax Board or any other information
requested by the collector.
(7) For the purposes of this article, "gross receipts" shall mean any
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 marijuana whatsoever,
including, but not limited to, membership dues, reimbursements provided by
members, regardless of form, or the total amount, in any calendar year of cash or
in -kind contributions, including all operating costs related to the growth,
cultivation or provision of marijuana or any transaction related thereto. "Gross
receipts" shall also include without limitation anything else of value obtained by a
Collective /Cooperative. The term "gross receipts" shall also include the total
amount, in any calendar year, of the sale price of all sales, 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, merchandise,
for which a charge is made or credit allowed, including all refunds, cash credits
and properties of any amount or nature, 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. "Gross
receipts" shall also include 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. "Gross receipts" shall not
include the amount of any federal tax imposed on or with respect to retail sales
whether or not the amount of such tax is stated as a separate charge. "Gross
receipts" shall not include the amount of any federal tax imposed on or with
respect to retail sales whether imposed upon the retailer or the consumer and
regardless of whether or not the amount of federal tax is stated to customers as a
separate charge, or any California state, city or city and county sales or 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. "Gross receipts" shall be calculated without
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any deduction on account of any of the following:
(i) The cost of tangible property sold or bartered;
(ii) The cost of materials or products used, labor or service cost,
interest paid, losses, or other expense; or
(iii) The cost of transportation of the marijuana, or other property
or product.
(b) Business license tax rates for Marijuana Collectives /Cooperatives.
(1) Every Collective /Cooperative, excepting a qualified "Nonprofit
Organization ", whether it is organized or conducted as a "not for profit' business, a
"non- profit" business, or a "for- profit business," shall pay a separate business license
tax at a rate of up to ten percent (10 %) of the gross receipts generated or otherwise
received for each branch establishment or separate property location of the business.
The gross receipts tax shall be initially set at a rate of five percent (5 %). The maximum
tax rate shall not exceed ten percent (10 %) of gross receipts. This tax shall not be
adjusted for inflation pursuant to Section 21 -121 of this Chapter.
(2) Notwithstanding the maximum tax rate of ten percent (10 %) of
gross receipts imposed under subsection (b)(1), the City Council may in its
discretion at any time by ordinance implement a lower gross receipts tax rate for
all Marijuana Collectives /Cooperatives, as defined in such ordinance, subject to
the maximum rate of ten percent (10 %) of gross receipts. The City Council may
by ordinance increase any such gross receipts tax rate from time to time, not to
exceed the maximum gross receipts tax rate established under subsection (b)(1).
(3) As part of the gross receipts tax imposed by this article, each
Collective /Cooperative shall pay a minimum basic rate of two thousand dollars
annually for each separate branch location or separate property location of the
business.
(c) 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.
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(d) Administration rules, regulations, and guidelines;
interpretation /clarification.
In order to aid in the City's collection of taxes due under this article and to ensure
that all Marijuana Collectives /Cooperatives 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.
(e) Occasional transactions — Exemptions
(1) The provisions of this article shall not apply to persons having no
fixed place of business within the City of Santa Ana who come into the city for the
purpose of transacting a specific item of marijuana business at the request of a
specific patient, client or customer, provided that such person does not come into
the city for the purpose of transacting business on more than five days during
any calendar year.
(2) For any person not having a fixed place of business within the City
of Santa Ana who comes into the city for the purpose of transacting
Collective /Cooperative activities, the business tax payable by such person may
be apportioned by the collector in accordance with this Chapter.
(f) Reporting and Remittance
Beginning as set forth in subsection (k) below, and monthly thereafter, each
Marijuana Collectives /Cooperatives (except qualified Nonprofit Organizations exempt
from taxes measured by income or gross receipts) required to pay a tax based on gross
receipts under this article, shall report to the city any gross receipts received during the
preceding monthly reporting period and shall likewise remit to the city the taxes due and
owing during said period. For purposes of this section, month shall mean calendar
month, and taxes shall begin to accrue on the date that a person or entity first receives
a business license or other permit to operate as a Collective /Cooperative.
The payment of the two thousand dollars minimum basic rate gross receipts tax
required annually for each separate branch location or separate property location of the
business in accordance subsection (b)(3), shall be made annually prior to the beginning
of the fiscal year beginning April first of the current year and expiring on the thirty -first
day of March of the following year. In the case of a new Collective /Cooperative the
minimum basic rate gross receipts tax shall be paid in advance prior to any new
ti
55D -42
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.
(g) 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 Chapter and failure to send such notice or
bill shall not affect the validity of any tax or penalty due under the provisions of this
Chapter.
(h) Payment of tax does not authorize unlawful business.
(1) 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
Collective /Cooperative unless the person has complied with all of the
requirements of this code and all other applicable laws, nor to carry on any
Collective /Cooperative 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 Collective /Cooperative is in violation of any law.
(2) 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.
Nothing in this article implies or authorizes that any activity connected with the
distribution or possession of marijuana is legal unless otherwise authorized and allowed
by California and federal law. Nothing in this section shall be applied or construed as
authorizing the sale of marijuana.
(i) Business license tax certificate - Required.
There are imposed upon all persons engaged in transacting and carrying on any
Collective /Cooperative 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 Collective /Cooperative without
complying with all the provisions of this article shall constitute a separate violation of this
Chapter for each and every day that such Collective /Cooperative is so carried on.
Q) Classification of business license assessment type — term and renewal.
The business license issued to Marijuana Collectives /Cooperatives shall be
16
55D -43
classed as a gross receipts assessment type, issued for the same term of license as set
forth in Section 21 -71 (c) and shall be subject to renewal in accordance with Sections
21- 72(c), 21- 73(c), and 21 -77 of this Chapter.
(k) Operative Date.
Upon the approval by the majority of the voters of the City of Santa Ana at the
November 4, 2014 general election, the taxes imposed by this article shall become
operative and shall be applied by the collector upon all Marijuana
Col lectives /Cooperatives.
Sec. 21 -128. Effect of state and federal reference /authorization.
Unless specifically provided otherwise, any reference to a State or Federal
statute in this article or Chapter 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 -129. 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 Penal
Code section 19.
Sec. 21 -130. 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.
17
55D -44
SECTION 6. Council to Make Future Amendments to Voter Approved
Ordinance. This is a City Council sponsored initiative ordinance which traditionally
would only be subject to amendment by the Voters of the City of Santa Ana. However,
pursuant to Section 9217 of the California Elections Code the City Council reserves the
right and authority to amend or repeal the ordinance without any restrictions.
SECTION 7. Severability. If any provision of this Ordinance or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of the Ordinance which can be given effect without the
invalid provision or application, and to this end the provisions of this ordinance are
severable. 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.
SECTION 8. 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.
SECTION 9. 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 appear on the same ballot, the provisions of the other measure or 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 required to pass than the other measure
or measures, the provisions of this measure shall prevail in their entirely over the
competing measure or measures, and the competing measure or measures shall be null
and void.
18
55D -45
ATTACHMENT 1
RESOLUTION GIVING NOTICE OF THE CITY'S
GENERAL MUNICIPAL ELECTION AND
REQUESTING CONSOLIDATION WITH
COUNTY OF ORANGE
55D -46
RESOLUTION NO. 2014 -XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA CALLING FOR AND GIVING NOTICE OF A
GENERAL MUNICIPAL ELECTION TO BE HELD IN THE
CITY OF SANTA ANA ON NOVEMBER 4, 2014 FOR
SUBMISSION TO THE VOTERS OF A BALLOT MEASURE
RELATING TO THE ESTABLISHMENT, OPERATION AND
TAXATION OF MEDICAL MARIJUANA COLLECTIVES
AND COOPERATIVES AND REQUESTING THE BOARD
OF SUPERVISORS OF ORANGE COUNTY TO
CONSOLIDATE THE GENERAL MUNICIPAL ELECTION
WITH THE STATE'S GENERAL ELECTION
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 election of the City of Santa Ana will be held on November 4,
2014, for the purpose of voting on a ballot measures relating to
establishment, operation, and taxation of medical marijuana collectives
and cooperatives.
B. There will be a statewide general election held on November 4, 2014.
C. It is desirable that said general election of the City of Santa Ana 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 election officers 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.
Section 2. That pursuant to the requirements of Section 10403 of the Elections
Code of the State of California, the Board of Supervisors of the County of Orange is
hereby requested to consent to and order the consolidation of the November 4, 2014
general election of the City of Santa Ana for the purpose of voting on a ballot measure
relating to establishment, operation, and taxation of medical marijuana collectives and
cooperatives with the statewide general election to be held on the same date.
Section 3. The Board of Supervisors of the County of Orange is hereby
authorized to canvass the returns of said general municipal election pursuant to Section
10411 of the Elections Code of the State of California. The election will be held and
conducted in accordance with the provisions of law regulating the statewide election.
Resolution No. 2014 -XXX
55D -47 Page 1 of 2
Section 4. The City of Santa Ana recognizes that additional costs will be
incurred by the County by reason of this consolidation and agrees to reimburse the
County of Orange for any such costs.
Section 5. The Clerk of the Council is hereby directed to file a certified copy of
this resolution with the Board of Supervisors of the County of Orange and a certified
copy of this resolution with the Registrar of Voters of the County of Orange.
Section 6. 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 day of , 2014.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
Bv:
Jose Sandoval,
Chief Assistant City Attorney
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 that the
attached Resolution No. 2014 -XXX to be the original resolution adopted by the City
Council of the City of Santa Ana on
Date:
Resolution No. 2014 -XXX
Page 2 of 2
55D -48
Maria D. Huizar,
Clerk of the Council
ATTACHMENT 2
RESOLUTION CONTAINING
BALLOT QUESTION
55D -49
RESOLUTION NO. 2014 -xxx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA CALLING FOR THE PLACEMENT OF A
MEASURE TO BE PLACED ON THE BALLOT OF THE
GENERAL MUNICIPAL ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 4, 2014 FOR SUBMISSION TO
THE VOTERS OF A PROPOSED ORDINANCE TO
REGULATE THE ESTABLISHMENT, OPERATION AND
TAXATION OF MEDICAL MARIJUANA COLLECTIVES
AND COOPERATIVES; AND DIRECTING THE CITY
ATTORNEY TO DRAFT AN IMPARTIAL ANALYSIS
WHEREAS, in 1996, the California electorate approved Proposition 215, the
Compassionate Use Act of 1996, which allows a patient, with a doctor's
recommendation, to use marijuana for medical purposes without the fear of prosecution
or arrest; and
WHEREAS, in 2003, the California legislature passed SB 420 (Medical
Marijuana Program Act), which amended the Health and Safety Code to permit the
establishment of medical marijuana dispensaries for the distribution of marijuana for
medical purposes; and
WHEREAS, cities where medical marijuana dispensaries have been permitted to
operate have experienced significant problems, including burglaries and takeover
robberies of dispensaries, robberies of customers leaving dispensaries, an increase in
crime (especially thefts and robberies) in the vicinity of dispensaries, illegal re- selling of
marijuana obtained from dispensaries, physicians issuing apparently fraudulent
recommendations for the use of marijuana, collective staff selling marijuana to
customers with obviously counterfeit patient identification cards, street dealers
attempting to sell marijuana to collective customers, collective customers using
marijuana and then driving under the influence of marijuana, the sale of illegal drugs
other than marijuana in the dispensaries, sales of marijuana to minors; and
WHEREAS, after studying various alternatives for the regulation of medical
marijuana dispensaries, considering testimony from members of the public, and
reviewing the legal status of medical marijuana dispensaries under applicable law, the
City Council finds that the regulation and operation of medical marijuana dispensaries is
necessary to protect the public health, safety, and welfare by mitigating the adverse
secondary effects from the operations of medical marijuana dispensaries; and
WHEREAS, the City of Santa Ana has a compelling interest in ensuring that
marijuana is not distributed 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
55D -50 Resolution No. 2014 -XXX
Page 1 of 3
neighborhoods in which medical marijuana collectives operate, and in providing
compassionate access to medical marijuana to its seriously ill residents.
NOW, THEREFORE, the City Council of the City of Santa Ana hereby finds,
determines and declares as follows that:
Section 1. The foregoing recitals are true and correct and are hereby
incorporated by reference.
Section 2. Submission of Ordinance. Pursuant to the requirements of laws
of the State of California, the City Council hereby orders the following proposed
ordinance to be submitted to the voters of the City of Santa Ana at the general
municipal election to be held on November 4, 2014:
"Shall the City of Santa Ana amend the Municipal Code to limit YES
the establishment of medical marijuana collectives/
cooperatives in the City to only industrial zones, enforce strict
operating protocols, and impose a tax and regulatory fee upon NO
medical marijuana collectives /cooperatives as provided for in
Ordinance No. NS- 2864 ?"
Section 3. Text of Ordinance. The full text of the proposed ordinance to be
submitted to the voters is attached as Exhibit 1 (the "Ordinance ") hereto and shall be
made available to the public upon request. If a simple majority of the qualified voters
voting on the Measure vote in favor therefore, the Measure shall be deemed adopted
upon the City Council's declaration of the results of the election and effective 10 days
thereafter.
Section 4. Conduct of Election. The Clerk of the Council is authorized,
instructed and directed to procure and furnish any and all official ballots, printed matter
and all supplies, equipment and paraphernalia that may be necessary in order to
properly and lawfully conduct the election. In all particulars not recited in this
Resolution, the election shall be held and conducted as provided by law for holding
municipal elections.
Section 5. Notice of Election. Notice of time and place of holding the
election is hereby given, and the Clerk of the Council is authorized, instructed and
directed to five further or additional notice of the election, in time, form and manner as
required by law.
Section 6. Impartial Analysis. Pursuant to Elections Code section 9280, the
City Council hereby directs the Clerk of the Council to transmit a copy of the ordinance
to the City Attorney. The City Attorney shall prepare an impartial analysis of the
ordinance, not to exceed 500 words in length, showing the effect of the ordinance on
Resolution f 2No.2014 -XXX
Page 2t 55D -51
the existing law and the operation of the ordinance, and transmit such impartial analysis
to the Clerk of the Council within ten (10) days following the adoption of this Resolution.
Section 7. Certification. 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 day of 2014.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
in
Jose Sandoval,
Chief Assistant City Attorney
AYES:
NOES:
Councilmembers:
Councilmembers:
ABSTAIN: Councilmem
NOT PRESENT: Councilmembers:
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the
attached Resolution No. 2014 -XXX to be the original resolution adopted by the City
Council of the City of Santa Ana on
Date:
Maria D. Huizar,
Clerk of the Council
55D -52 Resolution No. 2014 -XXX
Page 3 of 3
ATTACHMENT 3
RESOLUTION AUTHORIZING SUBMITTAL OF
WRITTEN ARGUMENTS FOR OR AGAINST THE
CITY MEASURE
55D -53
RESOLUTION NO. 2014 -XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AUTHORIZING WRITTEN ARGUMENTS FOR
OR AGAINST THE PROPOSED ORDINANCE TO
REGULATE THE ESTABLISHMENT, OPERATION AND
TAXATION OF MEDICAL MARIJUANA COLLECTIVES
AND COOPERATIVES TO BE PLACED ON THE BALLOT
OF THE GENERAL MUNICIPAL ELECTION TO BE HELD
ON TUESDAY, NOVEMBER 4, 2014
WHEREAS, California Elections Code Section 9282 authorizes the filing of
written arguments for or against a voter initiative petition, and Elections Code Section
9287 establishes priorities for filing written arguments in favor of and against initiatives;
and
WHEREAS, on July 1, 2014, the City Council adopted Resolution No. 2014 -
authorizing the calling and placement on the ballot a proposed ordinance to regulate the
establishment, operation, and taxation of medical marijuana collectives and
cooperatives to be submitted to the electors at the November 4, 2014 general municipal
election; and
WHEREAS, the City Council desires to authorize the filing of written arguments
for and /or against the adoption of the following ballot question by the Mayor and /or other
members of the City Council in accordance with Elections Code section 9282(b):
"Shall the City of Santa Ana amend the Municipal Code to limit the YES
establishment of medical marijuana collectives/ cooperatives in the
City to only industrial zones, enforce strict operating protocols, and
impose a tax and regulatory fee upon medical marijuana NO
collectives /cooperatives as provided for in Ordinance No. NS- 2864 ?"
NOW, THEREFORE, the City Council of the City of Santa Ana hereby finds,
determines and declares as follows that:
Section 1. The foregoing recitals are true and correct and are hereby
incorporated by reference.
Section 2. Authorization to Submit Arguments. Section 9282(b) of the
Elections Code of the State of California provides that in a local election, the legislative
body may authorize any member(s) of the City Council to write arguments for or against
Resolution No, 2014 -XXX
Page 1 of 3
55D -54
any measure placed on the ballot by the City Council. The City Council hereby
authorizes the Mayor and /or City Council members to prepare and file written
arguments in favor of or against the proposed ordinance described above.
Section 3. Authors. That, in accordance with Section 9283 of the Elections
Code, the printed names and signatures of not more than five authors shall appear with
any argument submitted in accordance with this resolution.
Section 4. Argument not exceed 300 words. That, in accordance with
Section 9282(c) of the Elections Code, any written argument in favor of or against the
proposed ordinance described above shall not exceed 300 words.
Section 5. City Council Preference and Priority. The City Council hereby
authorizes and directs the Clerk of the Council to give preference and priority to any
written argument for or against the initiative set forth above that includes a member or
members of the City Council (up to five members), and then to other arguments as set
forth in California Elections Code section 9287.
Section 6. Deadline for Arguments. In accordance with California Elections
Code section 9286(b), the deadline for filing with the Clerk of the Council (and changing
or withdrawing) arguments for or against the proposed ordinance described above shall
be not later than 5:00 p.m. on July 15, 2014.
Section 7. Certification. 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 day of , 2014.
APPROVED AS TO FORM:
In
Jose Sandoval,
Chief Assistant City Attorney
Resolution No. 2014 -XXX
Page 2 of 3
55D -55
Miguel A. Pulido
Mayor
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 that the
attached Resolution No. 2014 -XXX to be the original resolution adopted by the City
Council of the City of Santa Ana on
Date:
55D -56
Maria D. Huizar,
Clerk of the Council
Resolution No. 2014 -XXX
Page 3 of 3
ATTACHMENT 4
GUIDELINES FOR PREPARATION OF
ARGUMENTS FOR OR AGAINST
THE PROPOSED
CITY MEASURE
55D -57
i
§� Y
City of S:
• • • •
,3
�Z [Iv ttn$
NOTICE OF ELECTION
2014 General Municipal Election
November 4, 2014
CITY MEASURE
TO BE VOTED ON
CITY OF SANTA ANA, CALIFORNIA
NOTICE IS HEREBY GIVEN that the following proposed ordinance will be voted on at
the General Municipal Election to be held in the City of Santa Ana, California on Tuesday, the
fourth (4th) day of November 2014:
"Shall the City of Santa Ana amend the Municipal Code to limit the YES
establishment of medical marijuana collectives/ cooperatives in the
City to only industrial zones, enforce strict operating protocols, and NO
impose a tax and regulatory fee upon medical marijuana
collectives /cooperatives as provided for in Ordinance No. NS- 2864 ?"
TIME LIMIT TO SUBMIT BALLOT ARGUMENTS
(California Elections Code §9280 -9287)
PLEASE TAKE NOTICE that Arguments with respect to the following ballot measure will
be received according to the following procedures:
The City Council or any member(s) of the Council authorized by the City Council, or bona
fide association of citizens, or any individual voter who is eligible to vote on the Measure,
or any combination of voters and associations, may file a written argument for or against
the measure on the ballot. No argument shall exceed 300 words in length.
A ballot argument shall not be accepted unless accompanied by the name(s) of the
person(s) submitting it, or, if submitted on behalf of an organization, the name of the
organization and the name of at least one of its principal officers.
No more than five authors may sign any argument. If an argument is signed by more
than five individuals, the names of only the first five persons signing, determined by the
55D -58
order in which their signatures appear, shall be printed on the argument appearing in the
Voter Information Pamphlet.
4. The Clerk of the Council shall cause an argument for and an argument against the
measure, if submitted, to be printed and shall transmit the arguments to the qualified
electors in addition to any necessary ballot materials. Arguments for and against the
measure shall be submitted to the Office of the Clerk of the Council, 20 Civic Center
Plaza, Santa Ana, California 92701, not later than 14 days after City Council calls for the
Election.
5. Arguments may be changed or withdrawn by their authors by specified date.
6. Printed arguments submitted to the voters shall be titled either "Argument In Favor of
Measure_" or "Argument Against Measure_ ", accordingly. The blank space will be
assigned a number or letter by the Orange County Registrar of Voters. Words used in
the title shall not be counted when determining the length of the argument.
7. If more than one argument for or more than one argument against the ballot measure is
submitted to the Clerk of the Council within the time prescribed above, the Clerk of the
Council shall select one of the arguments for printing and distribution to voters. In such
selection, preference and priority shall be given as follows: 1) member(s), of the
legislative body authorized by that body, 2) bona fide associations of citizens, and, 3)
individual voters who are eligible to vote on the measure. If more than one argument for
a measure is received from individuals or groups with the same preference and priority,
the first argument submitted to the Clerk of the Council will be selected if no other
arguments from an individual or group with a higher priority are received.
8. At the time of filing an argument, a certificate is also required that states that the facts
contained in the argument are true and correct. The certificate must be signed by each
author of the argument. (A certificate form is available from the Clerk of the Council)
9. Copies of arguments for and against the measure shall be open for public examination at
the Clerk of the Council Office, 20 Civic Center Plaza, Santa Ana, California, 92701
during normal business hours (Monday through Thursday and alternate Fridays, 8:00
A.M. to 5:00 P.M.) during the Public Review Period. Any individual may obtain a copy of
such materials for use outside of said office. A fee, not to exceed the actual costs
incurred in providing such copies, will be charged at the time of provision of such copies.
10. Questions concerning this notice shall be directed to the Clerk of the Council, City of
Santa Ana, telephone number (714) 647 -6520.
11. Copies of the text of the Measure to be submitted to the voters of the City of Santa Ana
may be obtained from the Clerk of the Council, telephone number (714) 647 -6520.
55D -59
WORD COUNT STANDARDS
(Elections Code §9)
§9.(a) Counting of words, for purposes of the Elections Code, shall be as follows:
(1) Punctuation is not counted.
(2) Each word shall be counted as one word except as specified in the Elections
Code section.
(3) All geographical names shall be considered as one word; for example, "City
and County of San Francisco' shall be counted as one word.
(4) Each abbreviation for a word, phrase, or expression shall be counted as one
word.
(5) Hyphenated words that appear in any generally available standard reference
dictionary, published in the United States at any time within the 10 calendar
years immediately preceding the election for which the words are counted,
shall be considered as one word. Each part of all other hyphenated words shall
be counted as a separate word.
(6) Dates consisting of a combination of words and digits shall be counted as two
words. Dates consisting only of a combination of digits shall be counted as
one word.
All Digits (8/08/07) one word
Words and digits (August 8, 2007) two words
(7) Any number consisting of a digit or digits shall be considered as one word.
Any number which is spelled, such as "one," shall be considered as a separate
word or words. "One" shall be counted as one word whereas 'one hundred"
shall be counted as two words. "100" shall be counted as one word.
(8) Telephone numbers shall be counted as one word.
(9) Internet web site addresses shall be counted as one word.
If the text exceeds the word limit, the author must delete or change a sufficient number of words,
or a sentence, to put the statement within the required word limit before the statement is filed.
The author should correct any misspellings before the statement is filed.
55D -60