HomeMy WebLinkAbout75B - PH CANNABIS TESTING LABSREQUEST FOR
COUNCIL ACTION
CITY.COUNCIL MEETING DATE:
MARCH 20, 2018
TITLE:
PUBLIC HEARING — ADOPT URGENCY
ORDINANCE ALLOWING COMMERCIAL
CANNABIS TESTING LABORATORIES AND
ORDINANCE AMENDMENT NO. 2018-01 TO
AMEND CERTAIN SECTIONS OF CHAPTERS 40
AND 18 OF THE SANTA ANA MUNICIPAL CODE
(COMMERCIAL CANNABIS) TO ALLOW
COMMERCIAL CANNABIS LABORATORY
TESTING AND ADOPT RESOLUTION TO
MODIFY CANNABIS- RELATED REGISTRATION
APPLICATION AND REGULATORY SAFETY
PERMIT FEES IN FISCAL YEAR 2017/18
MISCELLANEOUS FEE SCHEDULE
(STRATEGIC PLAN NOS. 3,2; 3,3; 3,5; 4, 21
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1" Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
�CfTY MANAGER
RECOMMENDED ACTION
1. Adopt an Urgency Ordinance to permit and regulate Commercial Cannabis Laboratory Testing
facilities in the Light and Heavy (M-1 and M-2) Industrial zoning districts.
2. Adopt Ordinance Amendment No. 2018-01 to permit and regulate Commercial Cannabis
Laboratory Testing facilities in the Light and Heavy (M-1 and M-2) Industrial zoning districts.
3. Adopt a resolution to modify the adult -use cannabis Registration Application (Phase 1) and
Regulatory Safety Permit (RSP/Phase 2) application fees for commercial cannabis business
activities to include cannabis testing facilities in the fiscal year 2017/18 Miscellaneous Fee
schedule for the Planning and Building Agency.
BACKGROUND
The California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act
(AUMA or Proposition 64), requires that all cannabis processed and sold in the state of California
be subject to professional laboratory testing for cannabinoid content, toxins, adulterants,
pesticides, potency, and other important elements that affect product safety. Testing must be done
7513-1
Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 —
Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial
Cannabis Application Fees
March 20, 2018
Page 2
at laboratories licensed by the Bureau of Cannabis Control (BCC). Pursuant to various State laws,
a cannabis testing laboratory may not hold any other license type, which is intended to ensure
neutrality and product safety.
Significance of cannabis testing
Cannabis testing is a critical component of the commercial cannabis supply chain. Voters in
Colorado, a state considered to be an early adopter of commercial cannabis regulations, approved
Colorado Amendment 64 in 2012 legalizing adult -use commercial cannabis in their state. Although
Amendment 64 permitted testing laboratories at the time, it did not require safety and potency
testing for all types of commercial cannabis products. In July 2016, Colorado adopted regulations
that required testing of all products, including medicinal products. Because the supply chain had
been largely established without an integrated testing stage, the supply chain was disrupted by
new and stringent requirements for product testing.
California voters approved Proposition 64 in November 2016, legalizing certain types of
commercial and adult use cannabis business activities. Proposition 64 requires testing for some
cannabis products by July 1, 2018 and for all products by January 1, 2019. This accelerated
timeline is based in part on lessons learned from supply chain disruptions in Colorado. The State
of California began issuing cannabis business licenses on January 1, 2018; since then, numerous
commercial cannabis testing laboratories have expressed interest in operating in Santa Ana's
industrial zoning districts. Nearby jurisdictions have adopted ordinances to allow cannabis testing
laboratories, including Bellflower, Costa Mesa, Irvine, Long Beach and Los Angeles, while the City
of La Habra is considering ordinances in the near term to allow various forms of commercial
cannabis business activity, including testing.
Local impacts
Testing laboratories are the least "public" of all the commercial cannabis business activities since
they are prohibited from holding any other commercial cannabis license and may not co -locate with
any other commercial cannabis business. Similar to other quality -control product testing facilities,
they require high-value, high-technology equipment and employ highly -educated and highly -
trained personnel. Because cannabis is a lightweight product, facilities may occupy as little as 500
square feet, although typical testing facilities range between 2,000 and 4,000 square feet. All
testing laboratories are subject to strict State regulations regarding the quantity of cannabis that
may be on the premises, the operation of equipment, and disposal of tested materials. The
proposed ordinance revisions will also include mandates to ensure safe laboratory testing
operations.
75B-2
Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 —
Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial
Cannabis Application Fees
March 20, 2018
Page 3
City Council Direction
On February 20, 2018, staff presented the proposed ordinance amendments and fee resolution to
the City Council. The City Council provided direction on the several items. These items have been
addressed in the draft ordinance and/or this Request for Council Action (RFCA), with descriptions
and addition information included below.
1. Areas allowed and sensitive land use buffers— Maintain 1,000 -foot buffers from residential
land uses/zones in place on November 4, 2014 when Measure BB was adopted.
The draft ordinance has been revised to reference residential land uses in place on
November 4, 2014 when Measure BB was approved by Santa Ana voters (Exhibit 1).
2. Fee rate and consistency with neighboring jurisdictions — Ensure that the proposed gross
receipts fees are fair and consistent with those of surrounding jurisdictions.
The proposed gross receipts fee has been reduced from eight (8) to six (6) percent, making
Santa Ana equal to or more competitive than other large jurisdictions in California, including
Bellflower, Long Beach, Los Angeles, and Oakland (Exhibit 2).
3. Application process and consistency with neighboring jurisdictions — Revise application
process to be efficient and not onerous for applicants; ensure process and application fees
are consistent with those of surrounding jurisdictions.
While legal statewide, cannabis is classified as a controlled substance at the federal level.
The City's RSP process ensures the safe handling and operations of cannabis by those
owning or operating commercial cannabis businesses in Santa Ana. Moreover, the City's
commercial cannabis ordinance requires community involvement, community benefits, and
sustainable business practices; the RSP process requires that operators and owners have
clean records as a condition of operating a commercial cannabis business and engaging in
the Santa Ana community.
In addition, the draft ordinance has been revised to allow Phase 1 and Phase 2 applications
to be submitted concurrently, saving approximately 60 days of processing time while still
recuperating implementation and administration costs. A review of application fees found
that Santa Ana's application processing fees are consistent with or below other Southern
California jurisdictions that permit commercial cannabis activities.
4. Revenue allocations — Incorporate language in the RFCA to recommend that application
and fee revenues be dedicated to administration (one-third), enforcement (one-third), and
community services (one-third).
75B-3
Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 —
Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial
Cannabis Application Fees
March 20, 2018
Page 4
The RFCA has been revised to include this language and to state that staff anticipates
bringing forward an appropriation adjustment for City Council consideration at a future date.
DESCRIPTION
Table 1 (Proposed Amendments to Chapter 18 and Chapter 40) describes the draft ordinance to allow
commercial cannabis testing facilities, including changes based on City Council direction.
Table 1 — Proposed Amendments to Chapter 18 and Cha ter 40
Item
Current Ordinances
Proposed Amendment
Impact
Definitions (chapters
Contain definitions for a
Amends Chapter 40 and
Enables compliance with
18 and 40)
variety of terms relating to
Chapter 18 to add definitions
State law and ensures
commercial cannabis.
for commercial cannabis
consistency between
businesses/activities and for
chapters 18 and 40.
cannabis testing
facilities/laboratories.
Separation criteria
Requires all commercial
Amends Chapter 40 to clarify
Provides certainty to existing
cannabis activities to be
that the 1,000 -foot buffer
property owners or those in
1,000 feet from any school,
required from residential
control of property to submit
park, or existing residential
zones is based on the original
applications for commercial
zone.
residential zones in place on
cannabis retail and testing
or before November 4, 2014.
based on residential land
uses at the time Measure BB
was adopted.
Uses permitted and
Contain operational
Amends Chapter 40 to allow
Ensures safe operations of
operational standards
standards addressing
and establish operational
cannabis testing laboratories
general operations and retail
standards for cannabis
in accordance with all
operations,
testing laboratories, including
applicable State laws.
prohibition against holding
other license types, requiring
inspections, and allowing
educational tours.
Application process
Require Registration
Requires Phase 1 and Phase
Streamlines the Phase 1 and
(Chapter 40)
Application (Phase 1) to verify
2 applications for cannabis
Phase 2 review process for
zoning, buffers, and
testing laboratories but allows
cannabis testing, saving
separation criteria, and
Phase 1 and Phase 2
approximately 60 days, and
Regulatory Safety Permit
applications to be submitted
allows cannabis testing
(Phase 2) for background
concurrently and for testing
laboratories to begin
checks processes for
laboratories to be approved
operating in Santa Ana's
commercial cannabis retail
without merit criteria
industrial zoning districts,
businesses.
consideration. Eliminates
subject to compliance with all
separation criteria for testing
applicable standards and
facilities.
regulations.
Chapter 18 edits
Chapters 18 and 40 prohibit
Amends Chapter 18 to
Ensures consistency
all other commercial cannabis
ensure consistency with
between various SAMC
business activities, including
Chapter 40 (Commercial
chapters and compliance with
cannabis testing laboratories.
Cannabis).
State law.
75B-4
Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 —
Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial
Cannabis Application Fees
March 20, 2018
Page 5
Staff has reviewed the proposed amendments to ensure consistency with other provisions of the
Santa Ana Municipal Code, including chapters 18, 40, and 41 (Zoning).
Similar to commercial cannabis retail businesses, commercial cannabis testing
facilities/laboratories will be required to enter into an operating agreement to pay fees to the City
based on gross receipts (6 percent) or facility square footages ($2.00 per square foot), whichever
is the greater of the two calculations. These operating agreements will ensure sustainable building
and business practices, local hiring and sourcing, labor peace agreements, and community/youth
benefit plans.
It is recommended that application and fee revenues be dedicated to administration (one-third),
enforcement (one-third), and community services (one-third), similarto commercial cannabis retail.
Staff anticipates bringing forward an appropriation adjustment for City Council consideration at a
future date. Based on the information and analysis in this report, staff recommends adopting
Ordinance Amendment No. 2018-01.
Uraencv Ordinance
The urgency ordinance would permit and regulate commercial cannabis laboratory testing facilities
immediately, subject to review and approval of the required Phase 1 and Phase 2 applications and
operating agreements and all applicable operational and location standards contained in the
ordinance. The urgency ordinance is identical to the permanent ordinance, including:
location/buffer criteria, operational standards, permitting and enforcement process, and the
requirement to enter into an operating agreement.
A permanent ordinance, if approved, would then take effect 30 days after its second reading. Based
on the current City Council meeting calendar, the permanent ordinance would take effect on
Monday, May 7, immediately following the 45 -day urgency ordinance period.
Resolution modifying application fees
The City of Santa Ana requires that all commercial cannabis retail businesses permitted in Chapter
18 and Chapter 40 submit a Registration Application and a Regulatory Safety Permit (RSP), the
latter of which is renewed annually. Currently, the fees may only be collected for applicants seeking
to apply for or renew those permits associated with retail businesses. Pursuant to Chapter 40, all
applicants for adult -use cannabis retail sales or testing laboratories must also submit a Registration
Application ($1,690, one-time) and RSP ($12,086, renewed annually). In order to collect fees for
these two applications, the existing fee description must be amended to apply to all commercial
cannabis applicants, including testing laboratories.
75B-5
Urgency Cannabis Testing Laboratories Ordinance and Ordinance Amendment No. 2018-01 —
Allow Commercial Cannabis Testing Laboratories and Resolution to Modify Commercial
Cannabis Application Fees
March 20, 2018
Page 6
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #3 - Economic Development,
Objective #2 (create new opportunities for business/job growth and encourage private
development through new General Plan and Zoning Ordinance policies), Objective #3 (promote a
solutions -based customer focus in all efforts to facilitate development and investment in the
community), and Objective #5 (leverage private investment that results in tax base expansion and
job creation citywide). Approval of this item also supports the City's efforts to meet Goal #4 - City
Financial Stability, Objective #3 (achieve a structurally balanced budget with appropriate reserve
levels).
FISCAL IMPACT
Approval of the ordinance and resolution is expected to generate an additional $8,450 in one-time
Registration Application fees (five initial applications) and $48,344 in annual Regulatory Safety
Permit fees for testing laboratories (four approved applications). Should the resolution allowing
application fees to be charged to commercial cannabis laboratories be approved, funds will be
deposited into the Adult -Use Commercial Cannabis Registration Fee account (01116002-51616)
and the Adult -Use Commercial Cannabis Regulatory Safety Permit account (01116002-51617).
Candida Neal, AICP
Acting Executive Director
Planning & Building Agency
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez M (7511
Executive Director
Finance & Management Services Agency
AP:rb
S:RFCA13-20-18\PBA OA No. 2018-01 cannabis testing u 03-20-2018 (Chapter 18-40)
Exhibits: 1. Existing Residential Zones on November 4, 2014
2. Sample of Cannabis Testing Facility Rates from California Jurisdictions
3. Ordinance A,
4. Resolution
75B-6
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75B-7
75B-8
Sample of Cannabis Testing Facility Rates
from California Jurisdictions
Jurisdiction
Rate
Notes
Adelanto
5% or $15 per square foot
Business can opt in to the $15/sq. ft.
alternative minimum tax; Council may
adjust 5% lower, but never higher
than 5%
Bellflower
5%, increased by 2.5% annually
beginning July 1, 2020 until 10%
maximum
California Cit
2%
Costa Mesa
6%
Davis
5% for receipts from $0-
$50,000/month; 4% for receipts from
$50,001 to
$100,000/month; 3% for receipts over
$100,001/month
Irvine
None
Long Beach
6%
Council can increase to 8%
Los Angeles (City)
10.% or $100 per $1,000 of gross
receipts
Monterey
5%
Oakland
Medicinal - 5% or $50 per $1,000 of
gross receipts
Adult -use - 10% or $100 per $1,000
of gross receipts
San Jacinto
$15 per square foot
Santa Ana - Proposed
6% or $2 per square foot
Sonoma(County)
None
EXHIBIT 2
75B-9
75B-10
LS 3.20.18
AN EMERGENCY ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA ANA PURSUANT TO CHARTER
SECTION 415 AMENDING CERTAIN SECTIONS OF
CHAPTER 40 TO ALLOW COMMERCIAL CANNABIS
TESTING LABORATORIES FOR MEDICINAL AND ADULT -
USE PURPOSES AND AMENDING CERTAIN SECTIONS
OF ARTICLE XIII OF CHAPTER 18 OF THE SANTA ANA
MUNICIPAL CODE . PERTAINING TO MEDICINAL
MARIJUANA TO ENSURE CONSISTENCY WITH
CHAPTER 40 OF THE MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. In 1996, the California electorate approved Proposition 215, the
Compassionate Use Act which allows a patient, with a doctor's recommendation, to
use cannabis for medical purposes without the fear of prosecution or arrest.
B. 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 cannabis dispensaries for the distribution of cannabis for
medical purposes.
C. In 2005, the California Board of Equalization began issuing seller's permits
for sales consisting of medical cannabis.
D. In 2008, the California Attorney General issued guidelines for the security
and non -diversion of cannabis grown for medical use.
E. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical
Marijuana Regulatory Program ordinance ("Measure BB") which was codified in
Chapters 18 and 21 of the Santa Ana Municipal Code. Such regulations govern
medicinal marijuana and the retail sale thereof.
F. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266,
and Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation
and Safety Act ("MMRSA") further amended in 2016 as the Medical Cannabis
Regulation and Safety Act ("MCRSA"), which established regulations and a state
Ordinance No. NS -XXX
Page 1 of 35
Exhibit 3A
75B-11
licensing system for medical cannabis cultivation, manufacturing, delivery, and
dispensing.
G. The California Marijuana Legalization Initiative, also known as the Adult
Use of Marijuana Act (AUMA or Proposition 64) which the voters of the State of
California approved and passed in 2016, requires that all cannabis processed and
sold in the state of California be subject to professional laboratory testing for
cannabinoid content, toxins, adulterants, pesticides, potency, and other important
elements that affect product safety. Testing must be done at laboratories licensed by
the Bureau of Cannabis Control (BCC) and testing laboratories cannot co -locate with
any other commercial cannabis business. Pursuant to various State laws, a cannabis
testing laboratory may not hold any other license type, which is intended to ensure
neutrality and product safety. Proposition 64 requires testing for some cannabis
products by July 1, 2018 and for all products by January 1, 2019.
H. In 2017, the Governor signed into law Senate Bill 94 also known as
Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA).
I. On November 9, 2017, the City Council created Chapter 40 of the Santa
Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in
the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana
Municipal Code to ensure consistency with State law and Chapter 40.
J. Chapter 40 of the Santa Ana Municipal Code is intended to contain
standards and regulations to address all commercial cannabis business activities in
Santa Ana, except that medicinal cannabis retail businesses are subject to the
standards and regulations in Article XII I of Chapter 18.
K. Since November 2014, the City of Santa Ana has permitted the retail sale
of cannabis for medicinal purposes and since January 2018 for adult -use purposes.
However, the City has not permitted the operation of testing laboratories/facilities in
Santa Ana since January 2018. As a result, cannabis sold in Santa Ana may be
untested.
L. If commercial cannabis retail sale is permitted in the City without required
quality -control testing, it will pose a serious threat to the public, health, safety and
welfare for the following reasons:
1. Cannabis products that are untested for cannabinoid content will not display
potency, dosage, and other important elements that affect the qualities of the
product. As with any other medicinal product, medicinal cannabis must be
tested to ensure the safety of those that use it for medicine. Pursuant to the
AUMA, adult -use cannabis must be tested for cannabinoid content to
guarantee the safety of its usage to consumers. Without allowing testing
laboratories/facilities in Santa Ana, the retail cannabis sold in the City will not
Ordinance No. NS -XXX
Page 2 of 35
75B-12
display important elements that guarantee the safety of cannabis for all
consumers.
Cannabis products that are untested for toxins, adulterants, and pesticides
will pose serious health risks to consumers. While the City has allowed
cannabis retail sales since 2014, products sold are not required to undergo
the same level of stringent testing now required by the State of California.
Without cannabis testing laboratories/facilities in Santa Ana, the retail
cannabis sold in the City may contain toxins, adulterants, pesticides, or other
harmful elements that pose serious threat to public health, safety, and welfare
of Santa Ana's residents and visitors.
M. Prevention of detrimental impacts to residents, the public interest, health,
safety and welfare requires the immediate enactment of this ordinance. The
untested commercial cannabis may
be in conflict with or frustrate other provisions of the SAMC intended to guarantee or
preserve the public peace, health, or safety. Moreover, permitting the sale of
commercial cannabis without allowing the required cannabis testing
laboratories/facilities would create impacts on the public health, safety and welfare
that the city council, in adopting this ordinance, has found to be unacceptable.
N. The Request for Council Action for this ordinance dated March 20, 2018
and duly signed by the Executive Director of the Planning and Building Agency shall,
by this reference, be incorporated herein, and together with this ordinance, any
amendments or supplements, and written and oral testimony constitute the
necessary findings for this ordinance.
O. The city council has held a duly noticed public hearing in connection with
consideration and adoption of this ordinance.
P. The city council finds, determines and declares that the current and
immediate threat to the public health, safety and welfare of the city and its citizens
necessitates the immediate enactment of the ordinance. The facts constituting such
urgency are set forth in paragraphs A -M of this ordinance.
Q. The city council of the City of Santa Ana intends that nothing in this article
shall be deemed to conflict with federal law as contained in the Controlled
Substances Act, nor to otherwise permit any activity that is prohibited under that Act
or other applicable law.
Section 2. Pursuant to the California Environmental Quality Act ("CEQA")
and the state CEQA Guidelines, the adoption of this Ordinance is exempt from CEQA
review pursuant to California Code of Regulations section 15061(b)(3), which is
Ordinance No. NS -XXX
Page 3 of 35
75B-13
applicable if it can be seen with certainty that there is no possibility that the project may
have a significant effect on the environment. As a result, a Notice of Exemption will be
filed upon adoption of this ordinance.
Section 3. Any ordinance declared by the City Council to be necessary as an
emergency measure for preserving the public peace, health and safety, and containing
a statement of the reasons for its urgency, may be introduced and adopted at one and
the same meeting if passed by the affirmative votes of at least two-thirds (2/3) vote of
the City Council members pursuant to Section 415 of the City Charter.
Section 4. The City Council finds that this Ordinance should be read in full and
shall be immediately effective pursuant to Section 417 of the City Charter.
Section 5: Article I of Chapter 40 of the Santa Ana Municipal Code is hereby
amended to read in full as follows:
Chapter 40
ARTICLE 1. REGULATION OF ADULT -USE RETAIL COMMERCIAL
CANNABIS RETA16 ACTIVITIES OTHER THAN MEDICINAL CANNABIS RETAIL
ACTIVITIES
Section 40-1. Purpose and Intent.
A. The purpose and intent of this article is to regulate Adultvse commercial
cannabis retail business activities, as defined in this article, in order to ensure the
health, safety and welfare of the residents of the City of Santa Ana by establishing
regulations necessary for an Adult Use commercial cannabis Few business operating
in the City of Santa Ana to obtain and maintain a Regulatory Safety Permit ("RSP"). Any
Adult Use commercial feta# cannabis businesses operating in the City of Santa Ana
shall at all times be in compliance with current State Law and this article. All commercial
Ad 'meq cannabis retail facilities shall operate in accordance with the regulations in
this article and with the conditions of approval associated with the applicable zone for
the parcel of real property upon which the commercial Adult Us cannabis retail
activities are conducted. Any commercial Adult _ Use cannabis business shall
qualify for and receive a Regulatory Safety Permit from the City of Santa Ana as
provided by this article and operate only in a zone in compliance with Santa Ana
Municipal Code before commencing with any commercial Ad, dt-lose cannabis retail
business activity. Any commercial A�'��'.-�.t-Ilse cannabis retail business without a
Regulatory Safety Permit is in violation of this article. The regulations in this article, in
compliance with the Compassionate Use Act, the Medicinal Marijuana Program Act, SB
94, AB 133, Proposition 64, and the California Health and Safety Code (collectively
referred to as "State Law") do not interfere with the right to use adult -use cannabis or
medicinal cannabis as authorized under State Law, nor do they criminalize the
possession of cannabis as authorized under State Law.
All other commercial cannabis activities, including but not limited to, cultivation,
Ordinance No. NS -XXX
Page 4 of 35
75B-14
manufacture, and distribution, and testing of GaRnabi are prohibited and banned in the
City of Santa Ana.
B. Any person operating a medicinal marijuana collective/cooperative (as
defined in Chapter 18 of this Code) as of December 14, 2017, or who has as RSP
application pending to operate a medicinal collective/cooperative, and has met all of the
requirements of Chapter 18, shall be allowed to apply for a Regulatory Safety Permit for
the sale of Adult -Use cannabis provided that they enter into the Adult -Use Cannabis
Retailer Operating Agreement with the City.
C. The Adult Use Commercial Cannabis Retailef Operating Agreement shall
be a legally binding written agreement between each Adult Use commercial cannabis
fetaN business operator and the City, executed by the City Manager, or his or her
designee, and in a form and substance satisfactory to the Executive Director of
Planning and Building and the City Attorney, and containing those provisions necessary
to ensure that the requirements of this article are satisfied.
Section 40-2. Definitions
The definitions are incorporated herein as fully set forth and are applicable to this
article. All definitions are intended to comply with those set forth by the State of
California for all commercial cannabis business Adult Use eannabic •a'^m' activities.
1. "Applicant' means a person who is required to file an application for a
permit under this article, including an individual owner, managing partner, officer of a
corporation, or any other operator, manager, employee, or agent of an ^a Adult Use
2. "Adult -Use" means cannabis or cannabis products that are intended to be
used for non -medicinal purposes by a person 21 years of age or older.
3. "Adult -Use Cannabis Retailer Operating Agreement," "Commercial
Cannabis Business Operating Agreement," or "Operating Agreement' means the
agreement entered into by and between the City and the commercial Adult Use
cannabis fetail business operator which will specify terms for local hiring and sourcing,
community benefit plans, and fees to compensate for authorized impacts on City
services.
4. "Adult -Use cannabis retail activity" includes the delivery, or sale of adult -
use cannabis or a cannabis product, except as set forth in Section 19319 of the
Business and Professions Code, related to qualifying patients and primary caregivers,
excepting medicinal cannabis retail.
Ordinance No. NS -XXX
Page 5 of 35
75B-15
5. "Adult -Use cannabis retail business" means an Adult -Use retail business
that obtains a Regulatory Safety Permit and engages in the delivery or sale of Adult -Use
cannabis, or an Adult -Use cannabis product, except as related Business and
Professions Code Section 19319, or Health and Safety Code Sections 11362.1 through
11362.45, as amended from time to time, excepting medicinal cannabis retail.
6. "Authorized City of Santa Ana representative" any police officer, city
employee or agent of the city designated by the director of any city department which
has the authority and responsibility to enforce provisions as set forth in this article.
7. 'Business owner' means any of the following:
a. A person with an aggregate ownership interest of 20 percent or more in
the person applying for a license or a licensee, unless the interest is solely
a security, lien, or encumbrance.
b. The chief executive officer of a nonprofit or other entity.
C. A member of the board of directors of a nonprofit.
d. An individual who will be participating in the direction, control, or
management of the person applying for a license.
8. "Cannabis' or "cannabis product" means all parts of the Cannabis sativa
Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds
thereof; the resin, whether crude or purified, extracted from any part of the plant; and
every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its
seeds, or resin. "Cannabis' also means the separated resin, whether crude or purified,
obtained from marijuana. "Cannabis' also means marijuana as defined by Section
11018 of the California Health and Safety Code as enacted by Chapter 14017 of the
Statutes of 1972. "Cannabis' does not include the mature stalks of the plant, fiber
produced from the stalks, oil or cake made from the seeds of the plant, any other
compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks
(except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the
plant which is incapable of germination. For the purpose of this chapter, "cannabis'
does not mean industrial hemp as that term is defined by Section 81000 of the
California Food and Agricultural Code or Section 11018.5 of the California Health and
Safety Code.
9. "City" means the City of Santa Ana, a charter city and municipal
corporation.
10. "Commercial cannabis activity" means the cultivation, Possession,
Chapter. Permitted commercial cannabis activities are listed in Land Use Table 40-5 of
this Chapter.
Ordinance No. NS -XXX
Page 6 of 35
75B-16
10.1. "Commercial cannabis business" means a facility, establishment, or other
entity that engages in commercial cannabis activity.
11. "Commercial vehicle" means a vehicle as defined in Vehicle Code section
260.
12. "Concentrated cannabis product' means a consolidation of cannabinoids
made by dissolving cannabis in its plant form into a solvent.
13. "Customer" means a natural person 21 years of age or over.
14. "Delivery" means the commercial transfer of cannabis or cannabis
products from a retail cannabis business to a customer up to an amount determined to
be authorized by the State of California, or any of its departments or divisions.
"Delivery" also includes the use by a retail cannabis business of any technology
platform owned, controlled, and/ or licensed by the retail cannabis business, or
independently licensed by the State of California under the State law (as amended from
time to time), that enables anyone to arrange for or facilitate the commercial transfer by
a licensed retail cannabis business of cannabis or cannabis products. For the purposes
of this article, "delivery" does not include distribution or purchase of cannabis from a
licensed cultivator, and cannabis products from a licensed manufacturer, for sale to a
licensed cannabis retail business.
15. "Delivery employee" means an individual employed by a licensed retail
cannabis business who delivers cannabis goods from the permitted retail premises to a
medicinal cannabis patient or primary caregiver or customer at a physical address.
16. "Display" means cannabis goods that are stored in the licensed retail
business during the hours of operation.
17. "Display case" means a container in the licensed retail business where
cannabis goods are stored and visible to customers.
18. "Edible cannabis product' means manufactured cannabis that is intended
to be used, in whole or in part, for consumption. An edible cannabis product is not
considered food as defined by Section 109935 of the California Health and Safety Code
or a drug as defined by Section 109925 of the California Health and Safety Code.
19. "Free sample" means any amount of commercial cannabis goods
provided to a purchaser of cannabis without cost or payment or exchange of any other
thing of value.
20. "Labor Peace Agreement' means a legally binding agreement between an
employer and a labor organization in which the employer agrees to remain neutral in the
event its employees wish to unionize.
Ordinance No. N8 -XXX
Page 7 of 35
75B-17
219. "License/Licensee" means a license issued by the State and includes both
an A -license (Adult -Use) and an M -license (Medicinal), and the holder of such license.
224. "Limited -access area" means an area in which cannabis goods are stored
or held and which is only accessible to a Licensee and the Licensee's employees and
contractors.
232. "Medicinal/medical cannabis" or "Medicinal cannabis product", means
cannabis or a product containing cannabis, including, but not limited to, concentrates,
and extractions, intended to be sold for use by medicinal cannabis patients in California
pursuant to the Compassionate Use Act of 1996, found at Section 11362.5 of the
California Health and Safety Code. Medicinal cannabis retail is regulated by Chapter 18
and Chapter 21 of the Santa Ana Municipal Code.
243. "Operating hours" means the hours within a day during which a permitted
commercial cannabis retail business may allow cannabis customers to enter the retail
premises and purchase cannabis goods.
25. "Ownership interest" means an interest held by a person who is an owner
as defined by State of California commercial cannabis regulations or who has a financial
interest in the commercial cannabis business of 5% or more.
26. "Package" and "Packaging" means any container or wrapper that may be
used for enclosing or containing any cannabis goods for final retail sale. "Package" and
"packaging" does not include a shipping container or outer wrapping used solely for the
transport of cannabis goods in bulk quantity to a Licensee.
27. "Person" includes any individual, firm, partnership, joint venture,
association, corporation, limited liability company, estate, trust, business trust, receiver,
syndicate, or any other group or combination acting as a unit, and the plural as well as
the singular.
28. "Premises" means the designated structure(s) and land specified in the
application that are in possession of and used by the applicant or Licensee to conduct
the commercial cannabis activity.
29. "Primary Caregiver" has the same meaning as that term is defined in
Section 11362.7 of the Health and Safety Code.
30. "Private Residence" shall have the same definition as that contained in
Health and Safety Code section 11362.2(5) and also means a lawfully established
structure, suitable for human occupancy as required by section 17922 and 17958 of the
California Health and Safety Code. A recreational vehicle does not constitute a lawfully
established structure for the purposes of this article.
Ordinance No. NS -XXX
Page 8 of 35
75B-18
31. "Private security officer" has the same meaning as that term as defined in
the State of California Business and Professions Code section 7574.01.
32. "Publicly owned land" means any building or real property that is owned by
a city, county, state, federal, or other government entity.
33. "Purchase" means obtaining cannabis goods in exchange for
consideration.
34. "Purchaser' means a person who is engaged in a transaction with a
Licensee for purposes of obtaining cannabis goods.
35. "Qualified patient" is a person whose physician has recommended the use
of cannabis to treat a serious illness, including cancer, anorexia, AIDS, chronic pain,
spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides
relief.
36. "Responsible person" means any of the following:
a) A person who causes a Code violation to occur.
b) A person who maintains or allows a Code violation to continue, his or her
action or failure to act.
c) A person whose agent, employee, or independent contractor causes a
Code violation by its failure to act.
d) A person who is the owner of, and/or a person who is a lessee or sub
lessee with the current right of possession of, real property where
property -related Code violation occurs.
e) A person who is the on-site manager of a business who normally works
daily at the site when the business is open and is responsible for the
activities of such premises. For the purposes of this article "person"
includes a natural person or legal entity, and the owners, majority
stakeholders, corporate officers, trustees, and general partners of a legal
entity.
37. "Retail area" means a building, room, or other area upon the licensed
cannabis retail business premises in which cannabis goods are sold or displayed.
38. "Retail business" means a premises where adult use cannabis, cannabis
products, or devices for the use of cannabis or cannabis products are offered, either
individually or in any combination for retail sale, including an establishment that delivers
cannabis or cannabis products as part of a retail sale.
39. "Regulatory Safety Permit (RSP)" means a permit issued by the City
pursuant to this article to An a commercial cannabis retail business.
Ordinance No. NS -XXX
Page 9 of 35
75B-19
40. "Security monitoring" means the continuous and uninterrupted attention to
potential alarm signals that can be transmitted from a security alarm system for the
purpose of summoning law enforcement.
41. "Sell," "sale," and "to sell" include any transaction whereby, for any
consideration, title to cannabis is transferred from one person to another, and includes
the delivery of cannabis goods pursuant to an order placed for the purchase of the
same and soliciting or receiving an order for the same, but does not include the return of
cannabis goods by a licensee to the licensee from whom such cannabis goods were
purchased.
42. "Sublet" means to lease or rent all or part of a leased or rented property.
43. "State" means the State of California.
44. "Testing Facility" or "Testing Laboratory" defined in the Business and
Professions Code section 26001, as amended from time to time, means a laboratory.
a) Accredited by an accrediting body that is independent from all other
persons involved in commercial cannabis activity in the State; and,
b) Licensed by the Bureau of Cannabis Control.
Section 40-3. Compliance with State and Local Licensing Requirements
Any Ad -It -13se commercial cannabis fetal business as defined by the State of
California and the City of Santa Ana shall operate in conformance with all regulations
and standards set forth in this article to assure that the operations of any commercial
Adult Use cannabis fetail business as defined by the State of California and allowed by
the City of Santa Ana are in compliance with local and State law and are established to
mitigate any adverse secondary effects from its operations.
Commercial Ad '..tee cannabis fetail businesses shall be required to obtain a
Regulatory Safety Permit (RSP) from the City of Santa Ana and a State license once
they become available, and shall comply with any applicable State licensing
requirements, such as operational standards and locational criteria.
Co -location of Ad, M -rase commercial cannabis businesses Feta" and MeElmeina4
eannadis fetail proposed on any one site shall occur only if authorized by the State and
the City of Santa Ana and only if allowed pursuant to the City's Zoning Code. Any
commercial cannabis activity not specifically permitted by this article is prohibited.
Ordinance No. NS -XXX
Page 10 of 35
75B-20
Section 40-4. Maximum Number of Regulatory Safety Permits
The total number of Adult Use cannabis retail businesses in operation shall be
determined based on the number of locations which have been issued a Regulatory
Safety Permit by the City of Santa Ana. In no case shall the City of Santa Ana allow
more the than the following commercial cannabis retail businesses to operate within
City limits, regardless of the location's compliance with any other Section specified in
this article:
A. 20 total medicinal cannabis retail businesses (as regulated by Article XIII
of Chapter 18);
B. 30 total adult -use cannabis retail businesses (which could include any or
all of the medicinal cannabis retail businesses)
Section 40-5. Zoning Compliance and Regulatory Safety Permit
Requirements
Commercial Ad, A Ilse cannabis fetall activities are expressly prohibited in all
zones in the City of Santa Ana; however, specific commercial cannabis fetall
businesses are allowed as a special use in the Industrial zone (M-1, M-2). The only
allowed current permit types P61FSuant to the ..,+,.. „ is f„F Adult Use ,.9FnFReFGiaI
shall apply for and- G-e-na, nt -business only an the , iate zeRes are described in
Table 40-5 and the City of Santa Ana's zoning ordinance as a requisite for obtaining a
Regulatory Safety Permit. No commercial Adult cannabis fetail business may
operate in the City of Santa Ana without a Regulatory Safety Permit.
This Land Use Table 40-5 shall be used to determine whether a commercial
cannabis business is permitted — "P", or not permitted — "X". Any commercial Adult Use
cannabis fetail business in the City of Santa Ana shall also operate in compliance with
the City's zoning ordinance. If a Zoning District is not listed in the Land Use Table in this
section then the use is expressly not permitted.
Ordinance No. NS -XXX
Page 11 of 35
75B-21
City, of Sauia.Vna Mnuietpai,
Code Table
40-5
ConnnerciaL_.
Cannabis
j'
M,1'
M-2
,
Regulatory
Land Use.Classification
Zone
Zone...
Perinit
X
X
Re u<red
NA
Cultivator
Indoor - Type A
Cultivator
Indoor - Type B
X
X
NA
Cultivator
Indoor - Type C
X
X
NA
Ordinance No. NS -XXX
Page 11 of 35
75B-21
Nursery
Indoor/Outdoor - Type D
X
X
NA
Manufacturing
Manufacturing
X
X
NA
Retail
Medicinal Retail
(SAMC Chapter 18)
P
P -
Yes
Retail
Adult -Use Retail
P
P
Yes
Testing Laboratory
Adult -Use and/or Medicinal No
P.E
NA -Yes
Retail -Industrial
Distribution
Freight/Transport
X
X
NA
Micro -Business
Cultivation / Retail / Manufacture /
Distribution
X
X`
NA
Section 40-6. Separation Requirements
(a) No Adult -Use commercial cannabis fetail business shall be located within
1,000 feet of any:
(1) School (K-12) as defined by Section 11362.768 of the Health and Safety
Code; or
(2) Park; or
(3) Existing Residential zones in place on November 4. 2014.
(b) No commercial Adak-tlse cannabis retail business shall be located within 500
feet of another retail cannabis business, except for permitted co -location.
Section 40-7. Exception
Commercial cannabis cultivation is expressly prohibited in all zones and all
specific plan areas in the City; provided, however, that six (6) plants per private
residence may be cultivated indoors within a legally permitted structure for personal use
in compliance with Section 18-620 (e) of the Santa Ana Municipal Code and all
applicable local and State regulations.
Section 40-8. General Provisions for Adult -Use Commercial Cannabis
Retail Activities in the City of Santa Ana
Regulatory Safety Permit Required
a. Each Adult Use commercial cannabis fetail business shall obtain a
Regulatory Safety Permit (RSP) specific to the business activity defined by the State
Ordinance No. NS -XXX
Page 12 of 35
75B-22
pertaining to that activity. The only allowed current permit type pursuant to this article is
for commercial cannabis Adult Use retail sales and testing laboratories/facilities.
b. It shall be unlawful for any person, association, partnership, limited liability
company, or corporation to engage in, conduct or carry on, in or upon any premises
within the City of Santa Ana any commercial Ad, A Use cannabis retail business without
a RSP. An Adult use A commercial cannabis fetail business shall register and obtain a
RSP from the City of Santa Ana prior to operation. The RSP applicant shall pay an
annual non-refundable application fee in an amount established by the City Council.
C. A copy of the RSP shall be displayed at all times in a place visible to the
public.
d. A RSP shall be valid for a period of one (1) year from the date of issuance,
unless sooner revoked. No permit granted herein shall confer any vested right to any
person or business for more than the above -referenced period.
2. Maintenance of Records and Reporting
All records shall be maintained by the commercial Adult Use cannabis fetal
business for a period of five (5) years and shall be made available by the commercial
cannabis businessto an authorized City of Santa
Ana representative 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
commercial cannabis business Adult Use GaRRabis •etail business may maintain, these
records shall be stored by the business at the location in a printed format in a fire -proof
safe or filing cabinet. Any loss, damage or destruction of the records shall be reported to
the Police Department within 24 hours of the loss, destruction or damage.
The business shall obtain and maintain a valid Seller's Permit from the
State Board of Equalization.
b. Financial records include, but are not limited to: bank statements, sales
invoices, receipts, tax records, and all records required by the Califomia
State Board of Equalization under Title 18 California Code of Regulations
section 1968.
C. Personnel records, including each employee's full name, address, phone
number, social security, or individual tax payer identification number, date
of beginning employment, and date of termination of employment if
applicable.
Training records, including but not limited to the content of the training
provided and the names of the employees that received the training.
Ordinance No. NS -XXX
Page 13 of 35
75B-23
e. Contracts with other businesses regarding commercial cannabis business
retail activity.
Permits, licenses, and other local authorizations to conduct the
commercial cannabis business retail activity.
g. Security records.
h. Proof of building ownership or landlord letter acknowledging business
type.
Proof of insurance.
3. Operational Standards for All Adult Use Commercial Cannabis
Business Retail Activities
a. 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 unaltered in a secure location for a period
of not less than ninety (90) days. The police department may request the recordings in
connection with an investigation.
b. All controlled access areas, security rooms and all points of
ingress/egress to limited access areas and all point of sale (POS) areas shall have fixed
camera coverage capable of identifying activity occurring within a minimum of twenty
(20) feet.
C. The surveillance system storage device or cameras shall be transmission
control protocol/TCP capable of being accessed through the internet by the police
department or their designee on request.
d. T v --If applicable, the applicant shall conduct and pay for any required
CEQA reviews and analyses, and pay for all costs, including those of the City,
associated with project review under CEQA.
e. Adult Use Commercial cannabis retail businesses shall create and
maintain an active account within the State's track and trace system prior to
commencing any commercial cannabis retail activity. In the event of system failure, the
business shall keep a hard copy record and transfer the information to the track and
trace system within 24 hours of the system being available.
Ordinance No. NS -XXX
Page 14 of 35
75B-24
f. No physical modification of the licensed premises is allowed without
written prior permission by the City of Santa Ana and payment of any additional fees
required by the City.
g. Commercial cannabis business Adult Use Gannabis bUSO.._.._ Fetal!
businesses shall provide adequate off-street parking and comply with the City of Santa
Ana Municipal Code parking requirements in order to service customers without causing
negative impact.
h. The commercial cannabis businessdull Use Gannahes retail business
shall provide adequate disabled access parking per the requirements in the California
Building Code.
L The commercial cannabis Adult Use Gannabos Fetawl business shall
minimize nuisances such as trash, litter, and graffiti.
j. Any and all signage, packaging, and facilities shall not be 'attractive', as it
is defined by the State, to minors.
k. Commercial cannabis Adult Use GaRnab-s Fetaffil business facilities shall be
required to provide an air treatment system that ensures off-site odors shall not result
from its operations. This requirement at a minimum means that the facility shall be
designed to provide sufficient odor absorbing ventilation and exhaust systems so that
any odor generated inside the location is not detected outside the building, !am
adiacent tenant suites, on adjacent properties or public rights-of-way, or within any other
unit located within the same building as the facility if the use occupies only a portion of a
building.
I. A permitted commercial cannabis Adult Use Gannab's •etail business
entity shall have 180 days after permit issuance by the City of Santa Ana to begin initial
operations, unless otherwise approved by the Director of Planning and/or his or her
designee. A permitted commercial cannabis Adult Use eannab'S Fetal! business entity
that ceases to operate for more than 180 calendar days shall be deemed "abandoned"
and the permit shall be forfeited. A business may temporarily suspend operations for a
period of time as may be reasonably required to affect upgrades, modifications, repairs,
or other property issue mitigations as approved by the Director of Planning or designee.
M. The commercial cannabis Adult Use cannabis Feta!! business shall comply
with all State regulations regarding:
L Testing, labeling and storage of all cannabis products.
ii. Use of appropriate weighing devices.
iii. Electrical and plumbing regulations subject to periodic and
unannounced inspections to ensure compliance.
iv. State deadlines for applying for a State license and receiving a
State license within six (6) months after the date the State begins
Ordinance No. NS -XXX
Page 15 of 35
75B-25
issuing licenses. This may be waived if the State has longer delays
in issuing licenses of the type the commercial cannabis business
seeks.
n. The commercial cannabis business shall
maintain a comprehensive general liability combined single occurrence insurance policy
issued by an "A" rated insurance carrier in an amount no less than Two Million Dollars,
with primary coverage, naming the City of Santa Ana as additional insured.
o. No free samples of any cannabis or cannabis product may be distributed
at any time.
P. All agents, private security officers or other persons acting for or employed
by as commercial cannabis A.di '* "se nannahis retail business shall display a laminated
identification badge at least 2" X 2" in size, issued by the business. The badge, at a
minimum, shall include the business's "doing business as" name and license number,
the employee's first and last name, and a color photo of the employee that shows the
full front of the employee's face.
q. All private security officers acting for or employed by an a commercial
cannabis Adult Use GaRRabis retail business shall be licensed by the State and issued a
business license from the City of Santa Ana.
r. The commercial cannabis Adult Wse Gannabate mt;W business shall have a
centrally -monitored fire and burglar alarm system which shall include all perimeter entry
points and perimeter windows and the building or portion of the building where the
business is located shall contain a fire -proof safe or fire proof filing cabinet and include
a safety and security plan.
S. The commercial cannabis ^moose Gannabis retail business shall ensure
a licensed alarm company operator or one or more of its registered alarm agents
installs, maintains, monitors and responds to the alarm system. The alarm company
shall obtain a City of Santa Ana business license.
t. The commercial cannabis Adult Use an ab g retail business shall provide
the name and phone number of an on-site staff person to the police department and the
Code Enforcement Division of the Planning and Building Agency for notification if there
are operational problems with the establishment.
U. The commercial cannabis business must obtain
and maintain a valid City business license at all times as a condition for receiving,
renewing, and maintaining its regulatory safety permit.
Ordinance No. NS -XXX
Page 16 of 35
75B-26
V. Occupancy shall not exceed that required under the Uniform Building
Code and Uniform Fire Code, and the maximum occupancy load shall be posted at the
main entrance.
W. For any commercial cannabis Adult Use Gannabis retail business with two
(2) or more employees, the business owner shall attest that he/she has entered into a
labor peace agreement and provide a copy of the agreement to the City.
X. Each commercial cannabis business owner,
operator(s) and employee(s) shall complete a criminal background check and wear a
visible photo ID at all times during working hours. Owners, operators, employees,
managers or volunteers may not have been convicted of, or pled guilty/no-contest to a
felony or misdemeanor drug charge within the past four (4) years; nor shall they be a
person required to register as a controlled substance offender pursuant to Health &
Safety Code section 11590.
V. All signage for the commercial cannabis business must comply with Article
XI of Chapter 41 of the Santa Ana Municipal Code.
4. Additional Operational Standards for Adult -Use Cannabis Retail
Business
a. At all times the Adult -Use cannabis retail business is open, it shall provide
at least one private security guard who is licensed, possesses a valid Department of
Consumer Affairs "security guard card", and has a valid business license from the City
of Santa Ana.
b. The private security guard and adult -use retail cannabis business
personnel shall monitor the site and the immediate vicinity of the site to ensure that
patrons immediately leave the site and do not consume cannabis in the vicinity of the
retail business or on the property or in the parking lot.
C. Exterior signage shall comply with Article XI of Chapter 41 of the Santa
Ana Municipal Code. Interior signage or advertising may not be visible from the exterior.
Retail cannabis businesses must comply with the advertising and marketing provisions
of Business and Professions Code §§ 26150-26155.
d. There shall be no on-site sales of alcohol or tobacco products, (excluding
rolling papers and lighters) and no on-site consumption of food, alcohol or tobacco by
patrons.
e. Hours of operation shall be limited to: 7 a.m. to 140 p.m. daily. No licensed
retail business shall be open to the public between the hours of 104:01 p.m. and 6:59
a.m. of any day.
Ordinance No. NS -XXX
Page 17 of 35
75B-27
f. The Adult -Use cannabis retail business shall notify patrons of the following
both verbally and through posting of a sign in a conspicuous location:
Secondary sale, barter or distribution of adult -use cannabis is a
crime and can lead to arrest.
ii. That loitering on and around the retail site is prohibited by California
Penal Code § 647(e) and that patrons must immediately leave the
site and not consume cannabis in the vicinity of the retail site or on
the property or in the parking lot.
iii. A warning that patrons may be subject to prosecution under federal
cannabis laws.
iv. That the use of cannabis may impair a person's ability to drive a
motor vehicle or operate machinery.
g. No one under the age of 21 shall be allowed to enter an Adult -Use
cannabis facility unless the licensed Adult -Use cannabis facility holds a medicinal use
cannabis RSP issued by the City and retail license issued by the State, and the licensed
premises for the adult -use cannabis license and medicinal cannabis license are the
same in accordance with Business and Professions Code section 26140.
h. If non -cannabis food is distributed, the retail business shall comply with all
relevant State laws, County and City ordinances pertaining to the preparation,
distribution and sale of food.
I. All Adult -Use cannabis retail businesses shall establish and implement a
program to incentivize the recycling of used containers. Failure to establish and
implement a program to incentivize the recycling of used containers will result in a
violation of the terms of the required commercial cannabis Operating Agreement
requiring sustainable building or business practices.
j. Adult -Use cannabis retail businesses shall also record on the video
surveillance system point-of-sale areas and areas where cannabis goods are displayed
for sale.
k. Adequate signage shall clearly state who has inspected any cannabis
product for pesticides, or other regulated contaminants, distributed at this location.
I. Shipments of cannabis goods may only be accepted during regular
business hours.
M. Inventory shall be secured using a lockable storage system during non-
business hours.
Ordinance No. NS -XXX
Page 18 of 35
75B-28
n. No cannabis product shall be visible from the exterior of the business.
o. All required labelling shall be maintained on all product, as required by
State law, at all times.
p. Educational tours of adult -use retail cannabis businesses shall be allowed.
5. Additional Operational Standards for Adult Use Commercial
Cannabis Retail Delivery Services
a. Adult Use Commercial cannabis retail deliveries may be made only from
as Adult Use commercial cannabis retail business permitted by the City in compliance
with this article, and in compliance with all State regulations.
b. All employees who deliver cannabis shall have valid identification and a
copy of the Adult Use commercial cannabis retail business' Regulatory Safety Permit
and State license at all times while making deliveries.
C. All Adulte commercial cannabis retail businesses shall maintain proof
of vehicle insurance for any and all vehicles being used to transport cannabis goods as
required by State law.
d. Deliveries may only take place during normal business hours of the Adult
Use commercial cannabis retail business.
e. During delivery, the delivery employee shall maintain a physical or
electronic copy of the delivery request and shall make it available upon request by the
licensing authority and law enforcement officers. The delivery request documentation
shall comply with State law.
f. A licensed delivery employee shall not leave the State of California while
possessing cannabis products.
g. An Adult Use commercial cannabis retail business shall maintain a list of
all deliveries, including the address delivered to, the amount and type of product
delivered, and any other information required by the State.
h. A manifest with all information required in this section shall accompany
any delivery person at all times during the delivery process and delivery hours.
L Any delivery method shall be made in compliance with State law, as
amended, including use of a vehicle that has a dedicated GPS device for identifying the
location of the vehicle (cell phones and tablets are not sufficient).
Ordinance No. NS -XXX
Page 19 of 35
75B-29
j. Each delivery request shall have a receipt prepared by the Ad'1i»e
commercial cannabis retail business with the following information:
i. Name and address of the Ad, -'. � t I Ise commercial cannabis retail
business
ii. The name of the employee who delivered the order
iii. The date and time the delivery request was made
iv. The complete delivery addresses
V. A detailed description of the cannabis goods requested for delivery
including the weight or volume, or any accurate measure of the
amount of cannabis goods requested.
vi. The total amount paid for the delivery including any fees or taxes.
k. At the time of the delivery, the date and time delivery was made, and the
signature of the person who received the delivery.
I. No cannabis delivery vehicle shall display signs, decals or any other form
of advertisement with the exception of a maximum four -inch by four -inch decal.
M. Inspections by an authorized City of Santa Ana representative may be
conducted anytime during regular business hours.
6. Additional Operational Standards for Commercial Cannabis Testinq
Facilities or Laboratories
testing laboratory business.
b. Inspections by an authorized City of Santa Ana representative may be
conducted anytime during the business's regular business hours.
C. Educational tours of cannabis testing facility/laboratory businesses shall
be allowed.
Section 40-9. A -'-,'r �..'ge Commercial Cannabis Retail Selection Process
1.—^'-,. 'tee Commercial Cannabis Retall — Registration Application
and Regulatory Safety Permit Required
a. Existing medicinal cannabis business operators, or those with pending
applications for a medicinal RSP, who desire to operate an adult cannabis retail
business shall apply for the cannabis Regulatory Safety Permit ("RSP") on or before
December 14, 2017. The Director of Planning and Building shall review such
Ordinance No. NS -XXX
Page 20 of 35
75B-30
application and issue the RSP, without consideration of the merit based point system,
so long as they satisfy all other requirements of this article and Chapter 18.
b. The Regulatory Safety Permit ("RSP") selection process will be conducted in
two phases, Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit
Application). Registration Applications will be reviewed by the Director of Planning and
Building or designees(s) for completeness and compliance, and if eligible, will be placed
on the "Regulatory Safety Permit ("RSP") Eligibility List" and entered into the Phase 2
Regulatory Safety Permit Application process. In Phase 2, the City of Santa Ana has
established a merit based point system to objectively award permits as described in the
Regulatory Safety Permit Application.
2. Phase 1 — Registration Application
a. Following the adoption of this article, the Director of Planning and Building
shall prepare Adult Use commercial cannabis retail business registration application
forms and a related administrative policy. Each Adult Use commercial cannabis retail
business interested in operating pursuant to this article may submit an application
together with a non-refundable processing fee in an amount established by the City
Council.
b. The Registration Application period shall be thirty (30) calendar days from
the date the applications are released. Following the application period, the Director of
Planning and Building or designee(s) shall stop accepting applications and review all
applications received in Phase 1. Each application that is complete and in compliance
with the application requirements in Phase 1 shall be placed on the "RSP Eligibility List"
and shall be notified in writing whether they are a "RSP Eligible Applicant" or not. Each
applicant on the RSP Eligibility List may then choose to file an application for a RSP in
Phase 2.
C. The requirements for Phase 1 include but are not limited to:
All application documents required in the City's Phase 1
Registration Application package.
ii. Application was submitted during the application period.
iii. Application forms are filled out completely.
iv. Business Owner(s)/Applicant(s) referenced on the application
provides a Live Scan that was conducted within 14 days prior to
submitting the application.
Phase 1 application fee is paid.
Ordinance No. NS -XXX
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75B-31
vi. A signed statement that the proposed location of the Adan -else
commercial cannabis reW business on the application meets the
zoning criteria established in this article including, but not limited to,
any and all sensitive use separation criteria required by this article.
d. The Director of Planning and Building or his or her designee(s) shall
determine whether each application demonstrates compliance with the minimum
requirements (above) and be placed on the RSP Eligibility List and entered into the
Phase 2 application and review process.
e. The Director of Planning and Building or his or her designee(s) shall review
each application upon submission and ensure that the application is complete.
Incomplete applications will be promptly rejected and the applicant shall be notified in
writing of the deficiencies. The applicant shall be given an opportunity to cure any
incomplete or deficient application prior to the conclusion of the application processing
term, if such time period is applicable.
3. Phase 2 - Regulatory Safety Permit Application
a. Each applicant identified on the RSP Eligibility List may choose to
complete and file a RSP application to the Director of Planning and Building. The
application shall be filed together with a nonrefundable fee as established by resolution
of the City Council, to defray the cost of investigation required by this article.
b. The RSP application period shall be open for thirty (30) calendar days and
may run concurrently with the Phase 1 review period. Following the RSP application
period, the Director of Planning and Building or designee(s) shall stop accepting
applications and review all applications received in Phase 2.
C. The Director of Planning and Building or designee(s) will review all
application documents required in the City's Phase 2 application package plus the
additional requirements in subsection (d) below. The Director of Planning and Building
or his or her designee(s) will use a merit based point system to review and rank each of
applications from the most to the least points and objectively award the top applicants a
RSP. A complete description of the merit based point system and all merit based point
considerations shall be included with the application forms.
d. Phase 2 requirements include but are not limited to:
I. All application documents required in the City's Phase 2 RSP
application package.
ii. Phase 2 application fee is paid and a comprehensive owner
background check is completed.
Ordinance No. NS -XXX
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75B-32
iii. The Building Official or designee has inspected all structures in
which the use is located to determine that all applicable standards
and requirements are met. If a building permit is required for site
improvements, Permit issuance will be deferred until a certificate of
occupancy or other building permit approval is issued. Additionally,
the Building Official has determined that there are no notices of
nuisance or other code compliance issues recorded or on the
property.
iv. The Planning Manager or designee has issued a Zoning Clearance
documenting compliance with the following:
1. The use is permitted;
2. All land use permits, if any, have been approved and all
conditions of approval have been met or are in good
standing; and,
3. No zoning violations exist on the property.
e. The Director of Planning and Building or his or her designee(s) shall
review each application upon submission and ensure that the application is complete.
Incomplete applications will be promptly rejected and the applicant shall be notified that
business day of the deficiencies. The applicant shall be given an opportunity to cure any
incomplete or deficient application prior to the conclusion of the application processing
term, if such time period is applicable.
4. Regulatory Safety Permit Annual Renewal
a. Applications for the renewal of a permit shall be filed with the Director of
Planning and Building or designee(s) at least sixty (60) calendar days before the
expiration of the current permit. Temporary permits will not be issued. Any permittee
allowing their permit to lapse or which permit expired during a suspension shall be
required to submit a new application, pay the corresponding original application fees
and be subject to all aspects of the selection process.
b. Any person desiring to obtain a renewal of their respective permit shall file
a written application under penalty of perjury on the required form with the Director of
Planning and Building or designee(s) who will conduct a review. The application shall be
accompanied by a nonrefundable filing fee established by the City Council to defray the
cost of the review required by this article. An applicant shall be required to update the
information contained in their original permit application and provide any new and/or
additional information as may be reasonably required by the Director of Planning and
Building or designee(s) in order to determine whether said permit should be renewed.
Ordinance No. NS -XXX
Page 23 of 35
75B-33
5. Appeal of Denial of Regulatory Safety Permit/ Denial of RSP Renewal
The City Manager or his or her designee(s) will review all Regulatory Safety
Permit applications and renewal requests, along with all other relevant information, and
determine if a RSP should be granted and/or renewed. If the City Manager determines
that the permit shall not be granted and/or renewed, the reasons for denial shall be
provided in writing to the applicant. No such denial shall become effective until the
applicant for the regulatory safety permit and/or renewal has been notified in writing by
certified mail of the right to appeal the denial decision pursuant to the provisions of
Chapter 3 of this Code. If a timely appeal is filed, the denial shall be effective only upon
decision of the City Council. Otherwise, the denial shall become effective after the
timely appeal period has passed. The matter may be subject to judicial review under
the provisions of California Code of Civil Procedure Sections 1094.5 and 1094.6.
Section 40-9.1. Commercial Cannabis Testing Facility/Laboratory Selection
Process
1. Commercial Cannabis Testing Facilities/Laboratories — Registration
Application (Phase 1) and Regulatory Safety Permit (Phase 2) Required
a. Every Commercial Cannabis Testing Facility/Laboratory shall apply for the
Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit Application)
in the manner described in Section 40-9 except that the Director of Planning and
Building may accept Phase 1 and Phase 2 applications for a Commercial Cannabis
Testing Facility/Laboratory concurrently, and shall review such applications and issue
Chapter 18.
Phase 1 or Phase 2 application periods.
Section 40-10. Audits.
Annual audits. No later than June 30th of every year, each licensed Adult Use
eannab*6Te-tai! business commercial cannabis business shall file with the City an audit
or financial review of its operations of the previous calendar year. The form and
contents of the document shall be specified by the Executive Director of Finance and
Management Services, or his or her designee(s).
Section 40-11. Inspection and enforcement responsibilities.
The Code Enforcement Division of the Planning and Building Agency may enter
and inspect the location of any commercial cannabis Adult Use eannab.s Fetail business
Ordinance No. NS -XXX
Page 24 of 35
75B-34
between the hours of 7:00 a.m. and 104:00 p.m., or at any reasonable time, to ensure
compliance with this article. In addition, any police officer may enter and inspect the
location of any commercial cannabis feted business 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, responsible person, 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 commercial cannabis fetall business 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.
Section 40-12. Violation and enforcement.
Viol ation/e nforceme nt.
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 Code.
Additionally, as a nuisance per se, any violation of this article shall be subject to
injunctive relief, revocation of the commercial cannabis business Adu 'ase Gannabis
re}^.�,,,"business Regulatory Safety Permit, 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 commercial cannabis Adult "5^ GanRab.s ret -ail business and persons
related or associated with the business.
2. Suspension or revocation.
When an authorized City of Santa Ana representative finds that any person
holding a Rfegulatory Ssafety Ppermit under the provisions of Chapter 40 has violated
the provisions of this chapter or is found guilty of conduct which would form the basis of
denial of the Rfegulatory Ssafety Ppermit as set forth in Article XIII of Chapter 18, s/he
may revoke or suspend the permit. No such revocation shall become effective until the
Rfegulatory Ssafety Ppermit holder has been notified in writing by certified mail of the
right to appeal the revocation decision pursuant to the provisions or Chapter 3 of this
Code. If a timely appeal is filed, the revocation shall be effective only upon decision of
the City Council. Otherwise, the revocation shall become effective after the timely
appeal period has passed.
ordinance No. NS -XXX
Page 25 of 35
75B-35
Section 40-13. Transfer of Ownership.
1. Upon the transfer of any interest in an commercial cannabis business
the Rregulatory Ssafety Ppermit shall be null and
void. Any person, firm or entity desiring to own and operate the commercial cannabis
business Adda;t-'—'segos retail business shall make a new Regulatory Safety Permit
application. Prior to or concurrent with the submission of said application the transferee
shall obtain all required business licenses, post all required security deposits, acquire all
necessary, certificates, permits or other licenses allowing the doing of any act which the
person paying or holding the same would not otherwise be entitled to do; and any
permit, license, variance or other instrument of approval or evidence that any conditions
exist as required by any other section of this Code or by any statute or code provisions
of the state must first be obtained or complied with before the doing of any act or thing
for which it is required. A fee as established by resolution of the City Council shall be
payable for each such application involving transfer of any interest in an existing
commercial cannabis retail business. The provisions of this section shall apply to any
person, firm, or entity applying for a Rregulatory Ssafety Ppermit for premises
previously used as such establishment.
2. Any such transfer of any interest in an existing commercial cannabis
business dl Q-"1^ ^^^^^-h'S •^'a" WS'Ress or any application for an extension or
expansion of the building or other place of business of the commercial cannabis retail
business shall require inspection and compliance with section 40-11 of this article.
3. The owner or operator of asenanRabisTetail bUG'Ress
commercial cannabis business shall be responsible for notifying the City of any intention
to rename, change management, or convey the business to another person/entity.
Notification to the City must be made a minimum of sixty (60) days prior to such
transfer.
Section 40-14. Limitations on the City's Liability
To the fullest extent permitted by law, the City shall not assume any liability
whatsoever, with respect to approving any Regulatory Safety Permits pursuant to this
article or the operation of any commercial cannabis Adult Use GaRRabis retail business
approved pursuant to this chapter. As a condition of approval of a Regulatory Safety
Permit as provided in this chapter, the applicant or its legal representative shall:
1. Execute an agreement indemnifying the City from any claims, damages,
injuries or liabilities of any kind associated with the registration or operation of the
commercial cannabis business facility or the prosecution of the
applicant or business or its members for violation of federal or State laws;
2. Maintain insurance in the amounts and types that are acceptable to the
City Attorney or designee;
Ordinance No. NS -XXX
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75B-36
Name the City as an additionally insured on all City required insurance
policies;
4. Agree to defend, at its sole expense, any action against the City, its
agents, officers, and employees related to the approval of a Regulatory Safety Permit;
and,
5. Agree to indemnify and reimburse the City for any court costs and attorney
fees that the City may be required to pay as a result of any legal challenge related to
this ordinance and/or the City's approval of a Regulatory Safety Permit. The City may,
at its sole discretion, participate at its own expense in the defense of any such action,
but such participation shall not relieve the operator of its obligation hereunder.
Section 40-15. Fees and Taxes
All commercial cannabis Adult Use eaRnabis retail businesses shall pay
applicable fees and taxes, which shall include one or more of the following:
1. Application Fees. The business owner shall submit a non-refundable fee
to cover the cost of processing an application for the commercial cannabis Adult t
cannabis rem„ business. These fees may be divided into two fees according to
Registration Application Fee (Phase 1) and RSP Application Fee (Phase 2).
2. Regulatory Safety Permit Renewal Fees. The business owner shall submit
a non-refundable fee to cover the cost of processing an application renewal annually.
3. Business License Taxes. The business owner shall at all times maintain a
current and valid City of Santa Ana business license and shall pay all business license
taxes, deposits, charges, fees, deficiencies, penalties, interest, and other associated
assessments as may be required pursuant to ordinances of the City of Santa Ana
and/or the Santa Ana Municipal Code.
4. Adult Use Cannabisretaile Operating Agreement Fees.
5. Additional cannabis -specific gross receipts, excise taxes, or other
municipal tax approved by the voters of the City of Santa Ana.
6. All required state taxes including sales and use taxes, business/franchise
or income taxes, payroll taxes, etc.
All required federal taxes.
Section 6. Section 18-611 of Article XIII of Chapter 18 of the Santa Ana
Municipal Code is hereby amended to read in full as follows:
Ordinance No. NS -XXX
Page 27 of 35
75B-37
Sec. 18-611. - Definitions. (Not in alphabetical order)
(a) "Cultivation" and/or "Cultivate" shall mean the planting, growing, harvesting, drying,
curing, grading or trimming of one (1) or more marijuana plants or any part thereof,
as set forth in Business and Profession Code § 26001 (1) as amended from time to
time.
(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
(1) 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. This term shall include any legal
form of business recognized in the State of California. 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 limited to, Health and Safety
Code Section 11362.5 et seq.
(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 (1) 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.
Ordinance No. NS -XXX
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75B-38
(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.
(i) "Private Residence" shall have the same definition as that contained in Health
and Safety Code sections 11362.2(5) and 17922. A recreational vehicle does not
constitute a lawfully established structure for the purposes of this article.
(j) "Premises" means a single, legal parcel of property. Where contiguous legal parcels
under common ownership or control, such contiguous legal parcels shall constitute
a single "premises" for purposes of this chapter.
(k) "Parcel" means property assigned a separate parcel number by the Orange County
assessor.
(1) "Marijuana Products" shall have the same definition as that contained in Health and
Safety Code section 11018.1.
(m) "Marijuana Accessories" shall have the same definition as that contained in Health
and Safety Code section 11018.2.
(n) "Personal Cultivation" shall mean the planting, growing, harvesting, drying, curing,
grading or trimming of marijuana plants for personal use within a private residence
or accessory structure to a private residence.
(o) "Commercial Cultivation' shall mean the planting, growing, harvesting, drying,
curing, grading or trimming of marijuana plants in any structure other than a private
residence.
(p) "Outdoor Cultivation' shall mean the planting, cultivating, growing, harvesting,
drying, curing, grading or trimming of marijuana plants in any location within the City
of Santa Ana that is not within a fully enclosed and secure structure.
(q) "Fully enclosed and secure structure" means a space within a building, greenhouse
or other structure which has a complete roof enclosure supported by connecting
walls extending from the ground to the roof, which is secure against unauthorized
entry, provides complete visual screening, and which is accessible only through one
or more lockable doors.
(r) "Delivery' means the commercial transfer of medical cannabis or medical cannabis
products from a dispensary, up to an amount determined to be authorized by the State
of California, or any of its departments or divisions, to qualified patients and their
caregivers. "Delivery" also includes the use by a dispensary of any technology platform
owned, controlled, and/or licensed by the dispensary, or independently licensed by the
State of California under the State law (as amended from time to time), that enables
anyone to arrange for or facilitate the commercial transfer by a licensed dispensary of
medical cannabis or medical cannabis products. For the purposes of this article,
"delivery" does not include distribution or purchase of cannabis from a licensed
Ordinance No. NS -XXX
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75B-39
cultivator, and cannabis products from a licensed manufacturer, for sale to a licensed
dispensary or a wholesale establishment.
(s) "Dispensary" means a premises where medical cannabis or medical cannabis
products, or devices for the use of medical cannabis or medical cannabis products are
offered, either individually or in any combination, for retail sale, including an
establishment that delivers, pursuant to Business and Professions Code § 19340,
medical cannabis and medical cannabis products as part of a retail sale.
(t) "Responsible person' means any of the following:
(1) A person who causes a Code violation to occur.
(2) A person who maintains or allows a Code violation to continue, by his or her
action or failure to act.
(3) A person whose agent, employee, or independent contractor causes a Code
violation by its action or failure to act.
(4) A person who is the owner of, and/or a person who is a lessee or sub lessee
with the current right of possession of, real property where a property -related
Code violation occurs.
(5) A person who is the on-site manager of a business who normally works daily
at the site when the business is open and is responsible for the activities of such
premises.
For the purposes of this section "person" includes a natural person or legal entity,
and the owners, majority stockholders, corporate officers, trustees, and general
partners of a legal entity.
(u) "Distribution" means the procurement, sale and transport of cannabis and cannabis
products between entities licensed pursuant to the Medicinal and Adult -Use of Cannabis
Regulation and Safety Act, and any subsequent State of California legislation regarding
the same.
(v) 'Testing Facility" or "Testing Laboratory" defined in the Business and Professions
Code section 26001, as amended from time to time, means a laboratory, facility, or
entity in the State that offers or performs tests of cannabis or cannabis products and
that is both of the following:
a) Accredited by an accrediting body that is independent from all other persons
involved in commercial cannabis activity in the State: and,
b) Licensed by the Bureau of Cannabis Control.
Section 7: Section 18-620 of Article XIII of Chapter 18 of the Santa Ana
Municipal Code is hereby amended to read in full as follows:
Sec. 18-620. - Compliance with this article and state law.
Ordinance No. NS -XXX
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75B-40
(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, responsible person 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.
(iii) The prohibition in subsection (ii) above includes, renting, leasing, or
otherwise permitting a medical marijuana business to occupy or use a
location, vehicle, or other mode of transportation.
(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.
(e) Cultivation of Marijuana.
(1) Personal Cultivation. Individuals 21 years of age or older may
plant, cultivate, harvest, dry, or process up to (6) living
marijuana plants for personal use in a private residence or
accessory structure to a single private residence in the City of
Santa Ana and must comply with the following requirements:
(i) The marijuana cultivation area shall be located indoors
within a private residence or accessory structure on a
single parcel of property;
Ordinance No. NS -XXX
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75B-41
(ii) No more than six (6) living marijuana plants is permitted
for indoor personal cultivation;
(iii) Marijuana in excess of 28.5 grams produced by plants
kept for indoor personal cultivation must be kept in a
locked space on the grounds of the private residence not
visible from the public right -of way.
(iv) There shall be no exterior visibility or evidence of
marijuana cultivation outside the private residence from
the public right-of-way, including but not limited to any
marijuana plants, equipment used in the growing and
cultivation operation, or any light emanating from the
cultivation; or
(v) The cultivation may not violate any California Building,
Electrical or Fire Codes or any other health and safety
standards.
(2) Commercial Cultivation. Commercial cultivation of marijuana or
medical marijuana is prohibited anywhere in the City. No
person, including a qualified patient or primary caregiver, shall
engage, permit, or participate in the commercial cultivation of
marijuana in the City.
(3) Outdoor Cultivation. Outdoor cultivation of marijuana or medical
marijuana is prohibited anywhere in the City. No person,
including a qualified patient or primary caregiver, shall engage,
permit, or participate in the outdoor cultivation of marijuana in
the City.
(4) Nuisance.
(i) It is hereby declared to be unlawful, a public nuisance, and a
violation of this Chapter for any person owning, leasing, occupying,
or having charge or possession of any parcel within the City to
cause or allow such parcel to be used for the cultivation of
marijuana, unless the person is authorized by state law to grow
marijuana within a private residence, and such authorized person is
complying with all requirements of this Chapter.
(5) Public Nuisance Prohibited.
(i) It is hereby declared to be unlawful and a public nuisance for
any person owning, leasing, occupying, or having charge or
possession of any parcel within the City to create a public nuisance
in the course of cultivating marijuana plants or any part thereof in
Ordinance No. NS -XXX
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75B-42
any location, indoor or outdoor. A public nuisance may be deemed
to exist, if such activity produces:
(1) Odors which are disturbing to people of
reasonable sensitivity residing or present on
adjacent or nearby property or areas open to the
public;
(2) Repeated responses to the parcel by law
enforcement personnel;
(3) A repeated disruption to the free passage of
persons or vehicles in the neighborhood,
excessive noise which.is disturbing to people of
normal sensitivity on adjacent or nearby property
or areas open to the public;
(4) Any other impacts on the neighborhood which
are disruptive of normal activity in the area
including, but not limited to, grow lighting visible
outside the dwelling, excessive vehicular traffic
or parking occurring at or near the dwelling, and
excessive noise emanating from the dwelling.
(5) Outdoor and Commercial growing and cultivation
of marijuana.
(f) A permitted medical marijuana dispensary may deliver medical marijuana
only to a qualified patient or caregiver. Medical marijuana delivery services by
dispensaries possessing regulatory safety permits must comply with Business
and Professions Code §19340. Delivery of cannabis from a dispensary permitted
pursuant to this Chapter can only be made in a city or county that does not
expressly prohibit it by ordinance. Delivery services by dispensaries not in
possession of regulatory safety permits is expressly prohibited.
(4) Testing Facilities/Laboratories for Medicinal and Adult -Use Cannabis as
defined in Chapters 18 and 40 of the Santa Ana Municipal Code (SAMC) are
permitted subject to the regulations and standards contained within Chapter 40 of
the SAMC.
Section 8. If any section, subsection, sentence, clause, phrase or portion of this
ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Santa Ana hereby
declares that it would have adopted this ordinance and each section, subsection,
sentence, clause, phrase or portion thereof irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
Ordinance No. NS -XXX
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75B-43
Section 9. This ordinance shall be adopted and thereafter immediately effective
by two-thirds (2/3) vote of the City Council members pursuant to Section 415 of the City
Charter.
Section 10. This ordinance is introduced, passed and adopted at one and the
same meeting and is thereafter immediately effective. The city council finds that this
ordinance is necessary as an emergency measure for preserving the public peace,
health or safety to protect the public. The reasons for the emergency are set forth in
Section 1, paragraphs A -M, inclusive.
ADOPTED this day of
Miguel A. Pulido
Mayor
APPROVED AS TO FORM
Sonia R. Carvalho, City Attorney
By:
Lisa Storck
Assistant City Attorney
AYES: Councilmembers:
NOES:
ABSTAIN:
NOT PRESENT:
Councilmembers:
Councilmembers:
Councilmembers:
75B-44
2018.
Ordinance No. NS -XXX
Page 34 of 35
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the
attached Ordinance No. NS- to be the original ordinance adopted by the
City Council of the City of Santa Ana on , and that said
ordinance was published in accordance with the Charter of the City of Santa Ana.
Date:
Clerk of the Council
City of Santa Ana
Ordinance No. NS -XXX
Page 35 of 35
75B-45
75B-46
LS 3.20.18
ORDINANCE NO. NS -XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA AMENDING CERTAIN SECTIONS OF
CHAPTER 40 TO ALLOW COMMERCIAL CANNABIS
TESTING LABORATORIES FOR MEDICINAL AND ADULT -
USE PURPOSES AND AMENDING CERTAIN SECTIONS
OF ARTICLE XIII OF CHAPTER 18 OF THE SANTA ANA
MUNICIPAL CODE PERTAINING TO MEDICINAL
MARIJUANA TO ENSURE CONSISTENCY WITH
CHAPTER 40 OF THE MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. In 1996, the California electorate approved Proposition 215, the
Compassionate Use Act which allows a patient, with a doctors recommendation, to
use cannabis for medical purposes without the fear of prosecution or arrest.
B. 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 cannabis dispensaries for the distribution of cannabis for
medical purposes.
C. In 2005, the California Board of Equalization began issuing seller's permits
for sales consisting of medical cannabis.
D. In 2008, the California Attorney General issued guidelines for the security
and non -diversion of cannabis grown for medical use.
E. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical
Marijuana Regulatory Program ordinance ("Measure BB") which was codified in
Chapters 18 and 21 of the Santa Ana Municipal Code. Such regulations govern
medicinal marijuana and the retail sale thereof.
F. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266,
and Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation
and Safety Act ("MMRSA") further amended in 2016 as the Medical Cannabis
Regulation and Safety Act ("MCRSA" ), which established regulations and a state
Exhibit 3B Ordinance Page of 33
75B-47
licensing system for medical cannabis cultivation, manufacturing, delivery, and
dispensing.
G. The California Marijuana Legalization Initiative, also known as the Adult
Use of Marijuana Act (AUMA or Proposition 64) which the voters of the State of
California approved and passed in 2016, requires that all cannabis processed and
sold in the state of California be subject to professional laboratory testing for
cannabinoid content, toxins, adulterants, pesticides, potency, and other important
elements that affect product safety. Testing must be done at laboratories licensed by
the Bureau of Cannabis Control (BCC) and testing laboratories cannot co -locate with
any other commercial cannabis business. Pursuant to various State laws, a cannabis
testing laboratory may not hold any other license type, which is intended to ensure
neutrality and product safety. Proposition 64 requires testing for some cannabis
products by July 1, 2018 and for all products by January 1, 2019.
H. In 2017, the Governor signed into law Senate Bill 94 also known as
Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA).
I. On November 9, 2017, the City Council created Chapter 40 of the Santa
Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in
the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana
Municipal Code to ensure consistency with State law and Chapter 40.
J. Chapter 40 of the Santa Ana Municipal Code is intended to contain
standards and regulations to address all commercial cannabis business activities in
Santa Ana, except that medicinal cannabis retail businesses are subject to the
standards and regulations in Article XIII of Chapter 18.
K. Since November 2014, the City of Santa Ana has permitted the retail sale
of cannabis for medicinal purposes and since January 2018 for adult -use purposes.
However, the City has not permitted the operation of testing laboratories/facilities in
Santa Ana since January 2018. As a result, cannabis sold in Santa Ana may be
untested.
L. The City Council of the City of Santa Ana intends that nothing in this
article shall be deemed to conflict with federal law as contained in the Controlled
Substances Act, nor to otherwise permit any activity that is prohibited under that Act
or other applicable law.
M. The City of Santa Ana has a compelling interest in ensuring that cannabis
is not sold in an illicit manner, in protecting the public health, safety and welfare of its
residents and businesses, in preserving the peace and quiet of the neighborhoods in
which these businesses may operate, and in providing access of cannabis to
residents.
Ordinance No. NS -XXX
Page 2 of 33
75B-48
N. The city council has held a duly noticed public hearing in connection with
the consideration and adoption of this ordinance.
Section 2. Pursuant to the California Environmental Quality Act ("CEQK)
and the state CEQA Guidelines, the adoption of this Ordinance is exempt from CEQA
review pursuant to California Code of Regulations section 15061(b)(3), which is
applicable if it can be seen with certainty -that there is no possibility that the project may
have a significant effect on the environment. As a result, a Notice of Exemption will be
filed upon adoption of this ordinance.
Section 3: Article I of Chapter 40 of the Santa Ana Municipal Code is hereby
amended to read in full as follows:
Chapter 40
ARTICLE 1. REGULATION OF ADULT USE RETAIL COMMERCIAL
CANNABIS RETA16 ACTIVITIES OTHER THAN MEDICINAL CANNABIS RETAIL
ACTIVITIES
Section 40-1. Purpose and Intent.
A. The purpose and intent of this article is to regulate Adult Use commercial
cannabis feW business activities, as defined in this article, in order to ensure the
health, safety and welfare of the residents of the City of Santa Ana by establishing
regulations necessary for an Adult Use commercial cannabis feta4 business operating
in the City of Santa Ana to obtain and maintain a Regulatory Safety Permit( RSP„). Any
Adult commercial feW cannabis businesses operating in the City of Santa Ana
shall at all times be in compliance with current State Law and this article. All commercial
Adult Use cannabis fetail facilities shall operate in accordance with the regulations in
this article and with the conditions of approval associated with the applicable zone for
the parcel of real property upon which the commercial Adult Use cannabis few
activities are conducted. Any commercial Adult UseTetail cannabis business shall
qualify for and receive a Regulatory Safety Permit from the City of Santa Ana as
provided by this article and operate only in a zone in compliance with Santa Ana
Municipal Code before commencing with any commercial Adak Use cannabis retail
business activity. Any commercial Adulte cannabis fetail business without a
Regulatory Safety Permit is in violation of this article. The regulations in this article, in
compliance with the Compassionate Use Act, the Medicinal Marijuana Program Act, SB
94, AB 133, Proposition 64, and the California Health and Safety Code (collectively
referred to as "State Law") do not interfere with the right to use adult -use cannabis or
medicinal cannabis as authorized under State Law, nor do they criminalize the
possession of Adult Use GanRabis eF medioal cannabis as authorized under State Law.
All other commercial cannabis activities, including but not limited to, cultivation,
manufacture, and distribution, and testing ^f GaRRab°are prohibited and banned in the
City of Santa Ana.
Ordinance No. NS -XXX
Page 3 of 33
75B-49
B. Any person operating a medicinal marijuana collective/cooperative (as
defined in Chapter 18 of this Code) as of December 14, 2017, or who has an RSP
application pending to operate a medicinal collective/cooperative, and has met all of the
requirements of Chapter 18, shall be allowed to apply for a Regulatory Safety Permit for
the sale of Adult -Use cannabis provided that they enter into the Adult -Use Cannabis
Retailer Operating Agreement with the City.
C. The Adult Use Commercial Cannabis Retailer Operating Agreement shall
be a legally binding written agreement between each Adult Use commercial cannabis
retail business operator and the City, executed by the City Manager, or his or her
designee, and in a form and substance satisfactory to the Executive Director of
Planning and Building and the City Attorney, and containing those provisions necessary
to ensure that the requirements of this article are satisfied.
Section 40-2. Definitions
The definitions are incorporated herein as fully set forth and are applicable to this
article. All definitions are intended to comply with those set forth by the State of
California for all commercial cannabis business Adult Use Gannabos Feta" activities.
1. "Applicant' means a person who is required to file an application for a
permit under this article, including an individual owner, managing partner, officer of a
corporation, or any other operator, manager, employee, or agent of an
GaF;nab*s retail business a commercial cannabis business.
2. "Adult -Use' means cannabis or cannabis products that are intended to be
used for non -medicinal purposes by a person 21 years of age or older.
3. "Adult -Use Cannabis Retailer Operating Agreement," "Commercial
Cannabis Business Operating Agreement," or "Operating Agreement' means the
agreement entered into by and between the City and the commercial Ach �', �e
cannabis reta4 business operator which will specify terms for local hiring and sourcing,
community benefit plans, and fees to compensate for authorized impacts on City
services.
4. "Adult -Use cannabis retail activity" includes the delivery, or sale of adult -
use cannabis or a cannabis product, except as set forth in Section 19319 of the
Business and Professions Code, related to qualifying patients and primary caregivers,
excepting medicinal cannabis retail.
5. "Adult -Use cannabis retail business" means an Adult -Use retail business
that obtains a Regulatory Safety Permit and engages in the delivery or sale of Adult -Use
cannabis, or an Adult -Use cannabis product, except as related Business and
Ordinance No. NS -XXX
Page 4 of 33
75B-50
Professions Code Section 19319, or Health and Safety Code Sections 11362.1 through
11362.45, as amended from time to time, excepting medicinal cannabis retail.
6. "Authorized City of Santa Ana representative" any police officer, city
employee or agent of the city designated by the director of any city department which
has the authority and responsibility to enforce provisions as set forth in this article.
7. `Business owner' means any of the following:
a. A person with an aggregate ownership interest of 20 percent or more in
the person applying for a license or a licensee, unless the interest is solely
a security, lien, or encumbrance.
b. The chief executive officer of a nonprofit or other entity.
C. A member of the board of directors of a nonprofit.
d. An individual who will be participating in the direction, control, or
management of the person applying for a license.
8. "Cannabis' or "cannabis product" means all parts of the Cannabis sativa
Linnaeus, Cannabis Indica, or Cannabis Ruderalis, whether growing or not; the seeds
thereof; the resin, whether crude or purified, extracted from any part of the plant; and
every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its
seeds, or resin. "Cannabis' also means the separated resin, whether crude or purified,
obtained from marijuana. "Cannabis' also means marijuana as defined by Section
11018 of the California Health and Safety Code as enacted by Chapter 14017 of the
Statutes of 1972. "Cannabis' does not include the mature stalks of the plant, fiber
produced from the stalks, oil or cake made from the seeds of the plant, any other
compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks
(except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the
plant which is incapable of germination. For the purpose of this chapter, "cannabis'
does not mean industrial hemp as that term is defined by Section 81000 of the
California Food and Agricultural Code or Section 11018.5 of the California Health and
Safety Code.
9. "City" means the City of Santa Ana, a charter city and municipal
corporation.
10. "Commercial cannabis activity" means the cultivation, possession,
manufacture, distribution, processing, storing laboratory testing, packaging, labeling,
transportation, delivery or sale of cannabis and cannabis products as provided for this
10.1. "Commercial cannabis business" means a facility, establishment, or other
entity that engages in commercial cannabis activity.
Ordinance No. NS -XXX
Page 5 of 33
75B-51
11. "Commercial vehicle" means a vehicle as defined in Vehicle Code section
260.
12. "Concentrated cannabis product" means a consolidation of cannabinoids
made by dissolving cannabis in its plant form into a solvent.
13. "Customer' means a natural person 21 years of age or over.
14. "Delivery" means the commercial transfer of cannabis or cannabis
products from a retail cannabis business to a customer up to an amount determined to
be authorized by the State of California, or any of its departments or divisions.
"Delivery" also includes the use by a retail cannabis business of any technology
platform owned, controlled, and/ or licensed by the retail cannabis business, or
independently licensed by the State of California under the State law (as amended from
time to time), that enables anyone to arrange for or facilitate the commercial transfer by
a licensed retail cannabis business of cannabis or cannabis products. For the purposes
of this article, "delivery" does not include distribution or purchase of cannabis from a
licensed cultivator, and cannabis products from a licensed manufacturer, for sale to a
licensed cannabis retail business.
15. "Delivery employee" means an individual employed by a licensed retail
cannabis business who delivers cannabis goods from the permitted retail premises to a
medicinal cannabis patient or primary caregiver or customer at a physical address.
16. "Display" means cannabis goods that are stored in the licensed retail
business during the hours of operation.
17. "Display case" means a container in the licensed retail business where
cannabis goods are stored and visible to customers.
18. "Edible cannabis product" means manufactured cannabis that is intended
to be used, in whole or in part, for consumption. An edible cannabis product is not
considered food as defined by Section 109935 of the California Health and Safety Code
or a drug as defined by Section 109925 of the California Health and Safety Code.
19. "Free sample" means any amount of commercial cannabis goods
provided to a purchaser of cannabis without cost or payment or exchange of any other
thing of value.
20. "Labor Peace Agreement" means a legally binding agreement between an
employer and a labor organization in which the employer agrees to remain neutral in the
event its employees wish to unionize.
210. "License/Licensee' means a license issued by the State and includes both
an A -license (Adult -Use) and an M -license (Medicinal), and the holder of such license.
Ordinance No. NS -XXX
Page 6 of 33
75B-52
224. "Limited -access area" means an area in which cannabis goods are stored
or held and which is only accessible to a Licensee and the Licensee's employees and
contractors.
232. "Medicinal/medical cannabis" or "Medicinal cannabis product", means
cannabis or a product containing cannabis, including, but not limited to, concentrates,
and extractions, intended to be sold for use by medicinal cannabis patients in California
pursuant to the Compassionate Use Act of 1996, found at Section 11362.5 of the
California Health and Safety Code. Medicinal cannabis retail is regulated by Chapter 18
and Chapter 21 of the Santa Ana Municipal Code.
243. "Operating hours" means the hours within a day during which a permitted
commercial cannabis retail business may allow cannabis customers to enter the retail
premises and purchase cannabis goods.
25. "Ownership interest" means an interest held by a person who is an owner
as defined by State of California commercial cannabis regulations or who has a financial
interest in the commercial cannabis business of 5% or more.
26. "Package" and "Packaging" means any container or wrapper that may be
used for enclosing or containing any cannabis goods for final retail sale. "Package" and
"packaging" does not include a shipping container or outer wrapping used solely for the
transport of cannabis goods in bulk quantity to a Licensee.
27. "Person" includes any individual, firm, partnership, joint venture,
association, corporation, limited liability company, estate, trust, business trust, receiver,
syndicate, or any other group or combination acting as a unit, and the plural as well as
the singular.
28. "Premises" means the designated structure(s) and land specified in the
application that are in possession of and used by the applicant or Licensee to conduct
the commercial cannabis activity.
29. "Primary Caregiver" has the same meaning as that term is defined in
Section 11362.7 of the Health and Safety Code.
30. "Private Residence" shall have the same definition as that contained in
Health and Safety Code section 11362.2(5) and also means a lawfully established
structure, suitable for human occupancy as required by section 17922 and 17958 of the
California Health and Safety Code. A recreational vehicle does not constitute a lawfully
established structure for the purposes of this article.
31. "Private security officer" has the same meaning as that term as defined in
the State of California Business and Professions Code section 7574.01.
Ordinance No. NS -XXX
Page 7 of 33
75B-53
32. "Publicly owned land" means any building or real property that is owned by
a city, county, state, federal, or other government entity.
33. "Purchase" means obtaining cannabis goods in exchange for
consideration.
34. "Purchaser' means a person who is engaged in a transaction with a
Licensee for purposes of obtaining cannabis goods.
35. "Qualified patient" is a person whose physician has recommended the use
of cannabis to treat a serious illness, including cancer, anorexia, AIDS, chronic pain,
spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides
relief.
36. "Responsible person' means any of the following:
a) A person who causes a Code violation to occur.
b) A person who maintains or allows a Code violation to continue, his or her
action or failure to act.
c) A person whose agent, employee, or independent contractor causes a
Code violation by its failure to act.
d) A person who is the owner of, and/or a person who is a lessee or sub
lessee with the current right of possession of, real property where
property -related Code violation occurs.
e) A person who is the on-site manager of a business who normally works
daily at the site when the business is open and is responsible for the
activities of such premises. For the purposes of this article "person"
includes a natural person or legal entity, and the owners, majority
stakeholders, corporate officers, trustees, and general partners of a legal
entity.
37. "Retail area" means a building, room, or other area upon the licensed
cannabis retail business premises in which cannabis goods are sold or displayed.
38. "Retail business" means a premises where adult use cannabis, cannabis
products, or devices for the use of cannabis or cannabis products are offered, either
individually or in any combination for retail sale, including an establishment that delivers
cannabis or cannabis products as part of a retail sale.
39. "Regulatory Safety Permit (RSP)" means a permit issued by the City
pursuant to this article to an Adult Use a commercial cannabis feta4 business.
40. "Security monitoring" means the continuous and uninterrupted attention to
potential alarm signals that can be transmitted from a security alarm system for the
purpose of summoning law enforcement.
Ordinance No. NS -XXX
Page 8 of 33
75B-54
41. "Sell," "sale," and "to sell' include any transaction whereby, for any
consideration, title to cannabis is transferred from one person to another, and includes
the delivery of cannabis goods pursuant to an order placed for the purchase of the
same and soliciting or receiving an order for the same, but does not include the return of
cannabis goods by a licensee to the licensee from whom such cannabis goods were
purchased.
42. "Sublet' means to lease or rent all or part of a leased or rented property.
43. "State" means the State of California.
44. "Testing Facilitv" or "Testing Laboratory" defined in the Business and
Professions Code section 26001, as amended from time to time, means a laboratory,
al Accredited by an accrediting body that is independent from all other
Section 40-3. Compliance with State and Local Licensing Requirements
Any Adult Use commercial cannabis fetait business as defined by the State of
California and the City of Santa Ana shall operate in conformance with all regulations
and standards set forth in this article to assure that the operations of any commercial
Adult Use cannabis feta4 business as defined by the State of California and allowed by
the City of Santa Ana are in compliance with local and State law and are established to
mitigate any adverse secondary effects from its operations.
Commercial °' ',Qo'r'�e cannabis fetail businesses shall be required to obtain a
Regulatory Safety Permit (RSP) from the City of Santa Ana and a State license once
they become available, and shall comply with any applicable State licensing
requirements, such as operational standards and locational criteria.
Co -location of Arli�'rvaTose commercial cannabis businesses retail and MediGina4
cannabis fetail proposed on any one site shall occur only if authorized by the State and
the City of Santa Ana and only if allowed pursuant to the City's Zoning Code. Any
commercial cannabis activity not specifically permitted by this article is prohibited.
Section 40-4. Maximum Number of Regulatory Safety Permits
The total number of Adult Use cannabis retail businesses in operation shall be
determined based on the number of locations which have been issued a Regulatory
Safety Permit by the City of Santa Ana. In no case shall the City of Santa Ana allow
more the than the following commercial cannabis retail businesses to operate within
Ordinance No. NS -XXX
Page 9 of 33
75B-55
City limits, regardless of the location's compliance with any other Section specified in
this article:
A. 20 total medicinal cannabis retail businesses (as regulated by Article XIII
of Chapter 18);
B. 30 total adult -use cannabis retail businesses (which could include any or
all of the medicinal cannabis retail businesses)
Section 40-5. Zoning Compliance and Regulatory Safety Permit
Requirements
Commercial Ad, -'tee cannabis retail activities are expressly prohibited in all
zones in the City of Santa Ana; however, specific commercial cannabis Petah
businesses are allowed as a special use in the Industrial zone (M-1, M-2). The only
allowed current permit types pursuant to the ^a.^'e 06 fGF Adult I ase. nernmemial
are described in
Table 40-5 and the City of Santa Ana's zoning ordinance as a requisite for obtaining a
Regulatory Safety Permit. No commercial Adult -else -cannabis retail business may
operate in the City of Santa Ana without a Regulatory Safety Permit.
This Land Use Table 40-5 shall be used to determine whether a commercial
cannabis business is permitted — "P", or not permitted — W'. Any commercial A`'. �', �e
cannabis fetail business in the City of Santa Ana shall also operate in compliance with
the City's zoning ordinance. If a Zoning District is not listed in the Land Use Table in this
section then the use is expressly not permitted.
Ordinance No. NS -XXX
Page 10 of 33
75B-56
Commercia
Cannabis
M-1.
M-2
Regulatory
Land Use Classification
Zone
Zone
Permit
X
X
Required
NA
Cultivator
Indoor - Type A
Cultivator
Indoor - Type B
X
X.
NA
Cultivator
Indoor - Type C
X
X
NA
Nursery
Indoor/Outdoor - Type D
X
X
NA
Manufacturing
Manufacturing
X
X
NA
Medicinal Retail
Yes
Retail
P
P
(SAMC Chapter 18)
Ordinance No. NS -XXX
Page 10 of 33
75B-56
Retail
Adult -Use Retail
P
P
Yes
Testing Laboratory
Adult -Use and/or Medicinal No
F P.P.
-X P
#A -Yes
Retail -Industrial
Distribution
Freight/Transport
X,
X
NA
Micro -Business
Cultivation/ Retail / Manufacture /
Distribution
XX
NA
Section 40-6. Separation Requirements
(a) No Adult Use commercial cannabis reta4 business shall be located within
1,000 feet of any:
(1) School (K-12) as defined by Section 11362.768 of the Health and Safety
Code; or
(2) Park; or
(3) Existing Residential zones in place on November 4. 2014.
(b) No commercial Ad, k-11se cannabis retail business shall be located within 500
feet of another retail cannabis business, except for permitted co -location.
Section 40-7. Exception
Commercial cannabis cultivation is expressly prohibited in all zones and all
specific plan areas in the City; provided, however, that six (6) plants per private
residence may be cultivated indoors within a legally permitted structure for personal use
in compliance with Section 18-620 (e) of the Santa Ana Municipal Code and all
applicable local and State regulations.
Section 40-8. General Provisions for Adult Use Commercial Cannabis
Retail Activities in the City of Santa Ana
Regulatory Safety Permit Required
a. Each Adult Use commercial cannabis retail business shall obtain a
Regulatory Safety Permit (RSP) specific to the business activity defined by the State
pertaining to that activity. The only allowed current permit type pursuant to this article is
for commercial cannabis Adult Use retail sales and testing laboratories/facilities.
b. It shall be unlawful for any person, association, partnership, limited liability
company, or corporation to engage in, conduct or carry on, in or upon any premises
within the City of Santa Ana any commercial Adult'� cannabis retail business without
Ordinance No. NS -XXX
Page 11 of 33
75B-57
a RSP. A^ ^. Adult use A commercial cannabis retail business shall register and obtain
RSP from the City of Santa Ana prior to operation. The RSP applicant shall pay an
annual non-refundable application fee in an amount established by the City Council.
C. A copy of the RSP shall be displayed at all times in a place visible to the
public.
d. A RSP shall be valid for a period of one (1) year from the date of issuance,
unless sooner revoked. No permit granted herein shall confer any vested right to any
person or business for more than the above -referenced period.
2. Maintenance of Records and Reporting
All records shall be maintained by the commercial Adult Use cannabis fetail
business for a period of five (5) years and shall be made available by the commercial
cannabis business Adult Use Gannab;s Fetal! business to an authorized City of Santa
Ana representative 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
commercial cannabis business Adult Use ^a^^ab'^ Fetal! businessmay maintain, these
records shall be stored by the business at the location in a printed format in a fire -proof
safe or filing cabinet. Any loss, damage or destruction of the records shall be reported to
the Police Department within 24 hours of the loss, destruction or damage.
a. The business shall obtain and maintain a valid Seller's Permit from the
State Board of Equalization.
b. Financial records include, but are not limited to: bank statements, sales
invoices, receipts, tax records, and all records required by the California
State Board of Equalization under Title 18 California Code of Regulations
section 1968.
C. Personnel records, including each employee's full name, address, phone
number, social security, or individual tax payer identification number, date
of beginning employment, and date of termination of employment if
applicable.
d. Training records, including but not limited to the content of the training
provided and the names of the employees that received the training.
e. Contracts with other businesses regarding commercial cannabis business
fetail activity.
Permits, licenses, and other local authorizations to conduct the
commercial cannabis business fetail activity.
Ordinance No. NS -XXX
Page 12 of 33
75B-58
g. Security records.
h. Proof of building ownership or landlord letter acknowledging business
type.
i. Proof of insurance.
3. Operational Standards for All Adult Use Commercial Cannabis
Business Retell Activities
a. 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 unaltered in a secure location for a period
of not less than ninety (90) days. The police department may request the recordings in
connection with an investigation.
b. All controlled access areas, security rooms and all points of
ingress/egress to limited access areas and all point of sale (POS) areas shall have fixed
camera coverage capable of identifying activity occurring within a minimum of twenty
(20) feet.
C. The surveillance system storage device or cameras shall be transmission
control protocol/TCP capable of being accessed through the internet by the police
department or their designee on request.
d. T4;ie-If applicable, the applicant shall conduct and pay for any required
CEQA reviews and analyses, and pay for all costs, including those of the City,
associated with project review under CEQA.
e. Ad, W-1 Ise Commercial cannabis feW businesses shall create and
maintain an active account within the State's track and trace system prior to
commencing any commercial cannabis retail activity. In the event of system failure, the
business shall keep a hard copy record and transfer the information to the track and
trace system within 24 hours of the system being available.
f. No physical modification of the licensed premises is allowed without
written prior permission by the City of Santa Ana and payment of any additional fees
required by the City.
g. Commercial cannabis business Adult Use oannab?s bUGiRec_ Feta!!
businesses shall provide adequate off-street parking and comply with the City of Santa
Ana Municipal Code parking requirements in order to service customers without causing
negative impact.
Ordinance No. NS -XXX
Page 13 of 33
75B-59
h. The commercial cannabis business
shall provide adequate disabled access parking per the requirements in the California
Building Code.
i. The commercial cannabis A.,'�I IRP PA naNsrpta" business shall
minimize nuisances such as trash, litter, and graffiti.
j. Any and all signage, packaging, and facilities shall not be 'attractive', as it
is defined by the State, to minors.
k. Commercial cannabis Adult Use GaRRabus Fetail business facilities shall be
required to provide an air treatment system that ensures off-site odors shall not result
from its operations. This requirement at a minimum means that the facility shall be
designed to provide sufficient odor absorbing ventilation and exhaust systems so that
any odor generated inside the location is not detected outside the building, jam
adjacent tenant suites, on adjacent properties or public rights-of-way, or within any other
unit located within the same building as the facility if the use occupies only a portion of a
building.
I. A permitted commercial cannabis Adult Use GaRnab:c; retail business
entity shall have 180 days after permit issuance by the City of Santa Ana to begin initial
operations, unless otherwise approved by the Director of Planning and/or his or her
designee. A permitted commercial cannabis Adult Use GaRnabis Fetail business entity
that ceases to operate for more than 180 calendar days shall be deemed "abandoned"
and the permit shall be forfeited. A business may temporarily suspend operations for a
period of time as may be reasonably required to affect upgrades, modifications, repairs,
or other property issue mitigations as approved by the Director of Planning or designee.
M. The commercial cannabis Adult Use Gannabos Fetaal business shall comply
with all State regulations regarding:
i. Testing, labeling and storage of all cannabis products.
ii. Use of appropriate weighing devices.
iii. Electrical and plumbing regulations subject to periodic and
unannounced inspections to ensure compliance.
iv. State deadlines for applying for a State license and receiving a
State license within six (6) months after the date the State begins
issuing licenses. This may be waived if the State has longer delays
in issuing licenses of the type the commercial cannabis business
seeks.
n. The commercial cannabis Adult Use GanRab s rp ta;l business shall
maintain a comprehensive general liability combined single occurrence insurance policy
issued by an "A" rated insurance carrier in an amount no less than Two Million Dollars,
with primary coverage, naming the City of Santa Ana as additional insured.
Ordinance No. NS -XXX
Page 14 of 33
75B-60
No free samples of any cannabis or cannabis product may be distributed
at any time.
P. All agents, private security officers or other persons acting for or employed
by an commercial cannabis Adult Use eaRnab 0 S Fetail business shall display a laminated
identification badge at least 2" X 2" in size, issued by the business. The badge, at a
minimum, shall include the business's "doing business as" name and license number,
the employee's first and last name, and a color photo of the employee that shows the
full front of the employee's face.
q. All private security officers acting for or employed by as a commercial
cannabis Adult Uc bisFizail business shall be licensed by the State and issued a
business license from the City of Santa Ana.
r. The commercial cannabis Adult Use oannabig retail business shall have a
centrally -monitored fire and burglar alarm system which shall include all perimeter entry
points and perimeter windows and the building or portion of the building where the
business is located shall contain a fire -proof safe or fire proof filing cabinet and include
a safety and security plan.
S. The commercial cannabis Ad '�seA;;;RgbwsTetai; business shall ensure
a licensed alarm company operator or one or more of its registered alarm agents
installs, maintains, monitors and responds to the alarm system. The alarm company
shall obtain a City of Santa Ana business license.
t. The commercial cannabis Adult Use GaRRabla ratail business shall provide
the name and phone number of an on-site staff person to the police department and the
Code Enforcement Division of the Planning and Building Agency for notification if there
are operational problems with the establishment.
U. The commercial cannabis Adult Use saRnab.s;etail business must obtain
and maintain a valid City business license at all times as a condition for receiving,
renewing, and maintaining its regulatory safety permit.
V. Occupancy shall not exceed that required under the Uniform Building
Code and Uniform Fire Code, and the maximum occupancy load shall be posted at the
main entrance.
W. For any commercial cannabis Adult Use Gannab sretail business with two
(2) or more employees, the business owner shall attest that he/she has entered into a
labor peace agreement and provide a copy of the agreement to the City.
X. Each commercial cannabis Ad u'�se nannahisret-ailbusiness owner,
operator(s) and employee(s) shall complete a criminal background check and wear a
Ordinance No. NS -XXX
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visible photo ID at all times during working hours. Owners, operators, employees,
managers or volunteers may not have been convicted of, or pled guilty/no-contest to a
felony or misdemeanor drug charge within the past four (4) years; nor shall they be a
person required to register as a controlled substance offender pursuant to Health &
Safety Code section 11590.
V. All signage for the commercial cannabis business must comply with Article
XI of Chapter 41 of the Santa Ana Municipal Code.
4. Additional Operational Standards for Adult -Use Cannabis Retail
Business
a. At all times the Adult -Use cannabis retail business is open, it shall provide
at least one private security guard who is licensed, possesses a valid Department of
Consumer Affairs "security guard card", and has a valid business license from the City
of Santa Ana.
b. The private security guard and adult -use retail cannabis business
personnel shall monitor the site and the immediate vicinity of the site to ensure that
patrons immediately leave the site and do not consume cannabis in the vicinity of the
retail business or on the property or in the parking lot.
C. Exterior signage shall comply with Article XI of Chapter 41 of the Santa
Ana Municipal Code. Interior signage or advertising may not be visible from the exterior.
Retail cannabis businesses must comply with the advertising and marketing provisions
of Business and Professions Code §§ 26150-26155.
d. There shall be no on-site sales of alcohol or tobacco products, (excluding
rolling papers and lighters) and no on-site consumption of food, alcohol or tobacco by
patrons.
e. Hours of operation shall be limited to: 7 a.m. to 104 p.m. daily. No licensed
retail business shall be open to the public between the hours of 104:01 p.m. and 6:59
a.m. of any day.
f. The Adult -Use cannabis retail business shall notify patrons of the following
both verbally and through posting of a sign in a conspicuous location:
Secondary sale, barter or distribution of adult -use cannabis is a
crime and can lead to arrest.
That loitering on and around the retail site is prohibited by California
Penal Code § 647(e) and that patrons must immediately leave the
site and not consume cannabis in the vicinity of the retail site or on
the property or in the parking lot.
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75B-62
iii. A warning that patrons may be subject to prosecution under federal
cannabis laws.
iv. That the use of cannabis may impair a person's ability to drive a
motor vehicle or operate machinery.
g. No one under the age of 21 shall be allowed to enter an Adult -Use
cannabis facility unless the licensed Adult -Use cannabis facility holds a medicinal use
cannabis RSP issued by the City and retail license issued by the State, and the licensed
premises for the adult -use cannabis license and medicinal cannabis license are the
same in accordance with Business and Professions Code section 26140.
h. If non -cannabis food is distributed, the retail business shall comply with all
relevant State laws, County and City ordinances pertaining to the preparation,
distribution and sale of food.
L All Adult -Use cannabis retail businesses shall establish and implement a
program to incentivize the recycling of used containers. Failure to establish and
violation of the terms of the required commercial cannabis Operating Agreement
requiring sustainable building or business practices.
j. Adult -Use cannabis retail businesses shall also record on the video
surveillance system point-of-sale areas and areas where cannabis goods are displayed
for sale.
k. Adequate signage shall clearly state who has inspected any cannabis
product for pesticides, or other regulated contaminants, distributed at this location.
I. Shipments of cannabis goods may only be accepted during regular
business hours.
M. Inventory shall be secured using a lockable storage system during non-
business hours.
No cannabis product shall be visible from the exterior of the business.
o. All required labelling shall be maintained on all product, as required by
State law, at all times.
p. Educational tours of adult -use retail cannabis businesses shall be allowed.
5. Additional Operational Standards for Adult Use Commercial
Cannabis Retail Delivery Services
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a. AAS �'r A"Re Commercial cannabis retail deliveries maybe made only from
an Ate' '.-,w,t Us commercial cannabis retail business permitted by the City in compliance
with this article, and in compliance with all State regulations.
b. All employees who deliver cannabis shall have valid identification and a
copy of the Adult Use commercial cannabis retail business' Regulatory Safety Permit
and State license at all times while making deliveries.
C. All Adult Use commercial cannabis retail businesses shall maintain proof
of vehicle insurance for any and all vehicles being used to transport cannabis goods as
required by State law.
d. Deliveries may only take place during normal business hours of the Adult
Use commercial cannabis retail business.
e. During delivery, the delivery employee shall maintain a physical or
electronic copy of the delivery request and shall make it available upon request by the
licensing authority and law enforcement officers. The delivery request documentation
shall comply with State law.
f. A licensed delivery employee shall not leave the State of California while
possessing cannabis products.
g. An Adult Use commercial cannabis retail business shall maintain a list of
all deliveries, including the address delivered to, the amount and type of product
delivered, and any other information required by the State.
h. A manifest with all information required in this section shall accompany
any delivery person at all times during the delivery process and delivery hours.
L Any delivery method shall be made in compliance with State law, as
amended, including use of a vehicle that has a dedicated GPS device for identifying the
location of the vehicle (cell phones and tablets are not sufficient).
j. Each delivery request shall have a receipt prepared by the Adult Use
commercial cannabis retail business with the following information:
i. Name and address of the Adult Use commercial cannabis retail
business
ii. The name of the employee who delivered the order
iii. The date and time the delivery request was made
iv. The complete delivery addresses
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V. A detailed description of the cannabis goods requested for delivery
including the weight or volume, or any accurate measure of the
amount of cannabis goods requested.
vi. The total amount paid for the delivery including any fees or taxes.
k. At the time of the delivery, the date and time delivery was made, and the
signature of the person who received the delivery.
I. No cannabis delivery vehicle shall display signs, decals or any other form
of advertisement with the exception of a maximum four -inch by four -inch decal.
M. Inspections by an authorized City of Santa Ana representative may be
conducted anytime during regular business hours.
6 Additional Operational Standards for Commercial Cannabis Testing
Facilities or Laboratories
b Inspections by an authorized City of Santa Ana representative may be
conducted anytime during the business's regular business hours.
C. Educational tours of cannabis testing facility/laboratoryfacility/laboratory businesses shall
be allowed.
Section 40-9. Adu#-Mise Commercial Cannabis Retail Selection Process
1. Adult Use Commercial Cannabis Retail — Registration Application
and Regulatory Safety Permit Required
a. Existing medicinal cannabis business operators, or those with pending
applications for a medicinal RSP, who desire to operate an adult cannabis retail
business shall apply for the cannabis Regulatory Safety Permit ("RSP") on or before
December 14, 2017. The Director of Planning and Building shall review such
application and issue the RSP, without consideration of the merit based point system,
so long as they satisfy all other requirements of this article and Chapter 18.
b. The Regulatory Safety Permit ("RSP") selection process will be conducted in
two phases, Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit
Application). Registration Applications will be reviewed by the Director of Planning and
Building or designees(s) for completeness and compliance, and if eligible, will be placed
on the "Regulatory Safety Permit ("RSP") Eligibility List" and entered into the Phase 2
Regulatory Safety Permit Application process. In Phase 2, the City of Santa Ana has
Ordinance No. NS -XXX
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established a merit based point system to objectively award permits as described in the
Regulatory Safety Permit Application.
2. Phase 1 — Registration Application
a. Following the adoption of this article, the Director of Planning and Building
shall prepare Adult Use commercial cannabis fetail business registration application
forms and a related administrative policy. Each A�'i'.-,�1 Ise commercial cannabis retail
business interested in operating pursuant to this article may submit an application
together with a non-refundable processing fee in an amount established by the City
Council.
b. The Registration Application period shall be thirty (30) calendar days from
the date the applications are released. Following the application period, the Director of
Planning and Building or designee(s) shall stop accepting applications and review all
applications received in Phase 1. Each application that is complete and in compliance
with the application requirements in Phase 1 shall be placed on the "RSP Eligibility List"
and shall be notified in writing whether they are a "RSP Eligible Applicant" or not. Each
applicant on the RSP Eligibility List may then choose to file an application for a RSP in
Phase 2.
C. The requirements for Phase 1 include but are not limited to:
All application documents required in the City's Phase 1
Registration Application package.
Application was submitted during the application period.
iii. Application forms are filled out completely.
iv. Business Owner(s)/Applicant(s) referenced on the application
provides a Live Scan that was conducted within 14 days prior to
submitting the application.
V. Phase 1 application fee is paid.
vi. A signed statement that the proposed location of the Ad, �'�e
commercial cannabis fetail business on the application meets the
zoning criteria established in this article including, but not limited to,
any and all sensitive use separation criteria required by this article.
d. The Director of Planning and Building or his or her designee(s) shall
determine whether each application demonstrates compliance with the minimum
requirements (above) and be placed on the RSP Eligibility List and entered into the
Phase 2 application and review process.
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e. The Director of Planning and Building or his or her designee(s) shall review
each application upon submission and ensure that the application is complete.
Incomplete applications will be promptly rejected and the applicant shall be notified in
writing of the deficiencies. The applicant shall be given an opportunity to cure any
incomplete or deficient application prior to the conclusion of the application processing
term, if such time period is applicable.
3. Phase 2 - Regulatory Safety Permit Application
a. Each applicant identified on the RSP Eligibility List may choose to
complete and file a RSP application to the Director of Planning and Building. The
application shall be filed together with a nonrefundable fee as established by resolution
of the City Council, to defray the cost of investigation required by this article.
b. The RSP application period shall be open for thirty (30) calendar days and
may run concurrently with the Phase 1 review period. Following the RSP application
period, the Director of Planning and Building or designee(s) shall stop accepting
applications and review all applications received in Phase 2.
C. The Director of Planning and Building or designee(s) will review all
application documents required in the City's Phase 2 application package plus the
additional requirements in subsection (d) below. The Director of Planning and Building
or his or her designee(s) will use a merit based point system to review and rank each of
applications from the most to the least points and objectively award the top applicants a
RSP. A complete description of the merit based point system and all merit based point
considerations shall be included with the application forms.
Phase 2 requirements include but are not limited to:
L All application documents required in the City's Phase 2 RSP
application package.
ii. Phase 2 application fee is paid and a comprehensive owner
background check is completed.
iii. The Building Official or designee has inspected all structures in
which the use is located to determine that all applicable standards
and requirements are met. If a building permit is required for site
improvements, Permit issuance will be deferred until a certificate of
occupancy or other building permit approval is issued. Additionally,
the Building Official has determined that there are no notices of
nuisance or other code compliance issues recorded or on the
property.
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75B-67
iv. The Planning Manager or designee has issued a Zoning Clearance
documenting compliance with the following:
1. The use is permitted;
2. All land use permits, if any, have been approved and all
conditions of approval have been met or are in good
standing; and,
3. No zoning violations exist on the property.
e. The Director of Planning and Building or his or her designee(s) shall
review each application upon submission and ensure that the application is complete.
Incomplete applications will be promptly rejected and the applicant shall be notified that
business day of the deficiencies. The applicant shall be given an opportunity to cure any
incomplete or deficient application prior to the conclusion of the application processing
term, if such time period is applicable.
4. Regulatory Safety Permit Annual Renewal
a. Applications for the renewal of a permit shall be filed with the Director of
Planning and Building or designee(s) at least sixty (60) calendar days before the
expiration of the current permit. Temporary permits will not be issued. Any permittee
allowing their permit to lapse or which permit expired during a suspension shall be
required to submit a new application, pay the corresponding original application fees
and be subject to all aspects of the selection process.
b. Any person desiring to obtain a renewal of their respective permit shall file
a written application under penalty of perjury on the required form with the Director of
Planning and Building or designee(s) who will conduct a review. The application shall be
accompanied by a nonrefundable filing fee established by the City Council to defray the
cost of the review required by this article. An applicant shall be required to update the
information contained in their original permit application and provide any new and/or
additional information as may be reasonably required by the Director of Planning and
Building or designee(s) in order to determine whether said permit should be renewed.
5. Appeal of Denial of Regulatory Safety Permit / Denial of RSP Renewal
The City Manager or his or her designee(s) will review all Regulatory Safety
Permit applications and renewal requests, along with all other relevant information, and
determine if a RSP should be granted and/or renewed. If the City Manager determines
that the permit shall not be granted and/or renewed, the reasons for denial shall be
provided in writing to the applicant. No such denial shall become effective until the
applicant for the regulatory safety permit and/or renewal has been notified in writing by
certified mail of the right to appeal the denial decision pursuant to the provisions of
Chapter 3 of this Code. If a timely appeal is filed, the denial shall be effective only upon
decision of the City Council. Otherwise, the denial shall become effective after the
Ordinance No. NS -XXX
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75B-68
timely appeal period has passed. The matter may be subject to judicial review under
the provisions of California Code of Civil Procedure Sections 1094.5 and 1094.6.
Section 40-9.1. Commercial Cannabis Testing Facility/Laboratory Selection
Process
1. Commercial Cannabis Testing Facilities/Laboratories — Registration
Application (Phase 1) and Regulatory Safety Permit (Phase 2) Required
in the manner described in Section 40-9, except that the Director of Planning and
system, insofar as the applications satisfy all other requirements of this article and
Chapter 18.
Phase 1 or Phase 2 application periods.
Section 40-10. Audits.
Annual audits. No later than June 30th of every year, each licensedd '. t Use
r,;;nn;;h sTPtAil hiss commercial cannabis business shall file with the City an audit
or financial review of its operations of the previous calendar year. The form and
contents of the document shall be specified by the Executive Director of Finance and
Management Services, or his or her designee(s).
Section 40-11. Inspection and enforcement responsibilities.
The Code Enforcement Division of the Planning and Building Agency may enter
and inspect the location of any commercial cannabis Adult Wse GaRRabis •etail business
between the hours of 7:00 a.m. and 104:00 p.m., or at any reasonable time, to ensure
compliance with this article. In addition, any police officer may enter and inspect the
location of any commercial cannabis fetail business 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, responsible person, 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 commercial cannabis fetail business 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
Ordinance No. NS -XXX
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75B-69
limited to, the concealment, destruction, and falsification of any recordings, records, or
monitoring.
Section 40-12. Violation and enforcement.
Violation/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 Code.
Additionally, as a nuisance per se, any violation of this article shall be subject to
injunctive relief, revocation of the commercial cannabis business
Fetail,Us RessRegulatory Safety Permit, 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 commercial cannabis Adult Use GannabiG Fetai; business and persons
related or associated with the business.
2. Suspension or revocation.
When an authorized City of Santa Ana representative finds that any person
holding a Rregulatory Ssafety Ppermit under the provisions of Chapter 40 has violated
the provisions of this chapter or is found guilty of conduct which would form the basis of
denial of the Rfegulatory Ssafety Ppermit as set forth in Article XIII of Chapter 18, s/he
may revoke or suspend the permit. No such revocation shall become effective until the
Rfegulatory Ssafety Ppermit holder has been notified in writing by certified mail of the
right to appeal the revocation decision pursuant to the provisions or Chapter 3 of this
Code. If a timely appeal is filed, the revocation shall be effective only upon decision of
the City Council. Otherwise, the revocation shall become effective after the timely
appeal period has passed.
Section 40-13. Transfer of Ownership.
1. Upon the transfer of any interest in an commercial cannabis business
Adult Use GaRnahis retail h, si„ess, the Rfegulatory Ssafety Ppermit shall be null and
void. Any person, firm or entity desiring to own and operate the commercial cannabis
business ^d -i " " e rA-Rnabis retail business shall make a new Regulatory Safety Permit
application. Prior to or concurrent with the submission of said application the transferee
shall obtain all required business licenses, post all required security deposits, acquire all
necessary, certificates, permits or other licenses allowing the doing of any act which the
person paying or holding the same would not otherwise be entitled to do; and any
permit, license, variance or other instrument of approval or evidence that any conditions
exist as required by any other section of this Code or by any statute or code provisions
Ordinance No. NS -XXX
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75B-70
of the state must first be obtained or complied with before the doing of any act or thing
for which it is required. A fee as established by resolution of the City Council shall be
payable for each such application involving transfer of any interest in an existing
commercial cannabis retail business. The provisions of this section shall apply to any
person, firm, or entity applying for a Rfegulatory Ssafety Ppermit for premises
previously used as such establishment.
2. Any such transfer of any interest in an existing commercial cannabis
business Adult Use eaRnabis Fetail business or any application for an extension or
expansion of the building or other place of business of the commercial cannabis retail
business shall require inspection and compliance with section 40-11 of this article.
3. The owner or operator of a
commercial cannabis business shall be responsible for notifying the City of any intention
to rename, change management, or convey the business to another person/entity.
Notification to the City must be made a minimum of sixty (60) days prior to such
transfer.
Section 40-14. Limitations on the City's Liability
To the fullest extent permitted by law, the City shall not assume any liability
whatsoever, with respect to approving any Regulatory Safety Permits pursuant to this
article or the operation of any commercial cannabis Adult Use GaARabis Fetail business
approved pursuant to this chapter. As a condition of approval of a Regulatory Safety
Permit as provided in this chapter, the applicant or its legal representative shall:
1. Execute an agreement indemnifying the City from any claims, damages,
injuries or liabilities of any kind associated with the registration or operation of the
commercial cannabis business Adult Use GanRabis fasi% or the prosecution of the
applicant or business or its members for violation of federal or State laws;
2. Maintain insurance in the amounts and types that are acceptable to the
City Attorney or designee;
3. Name the City as an additionally insured on all City required insurance
policies;
4. Agree to defend, at its sole expense, any action against the City, its
agents, officers, and employees related to the approval of a Regulatory Safety Permit;
and,
5. Agree to indemnify and reimburse the City for any court costs and attorney
fees that the City may be required to pay as a result of any legal challenge related to
this ordinance and/or the City's approval of a Regulatory Safety Permit. The City may,
Ordinance No. NS -XXX
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75B-71
at its sole discretion, participate at its own expense in the defense of any such action,
but such participation shall not relieve the operator of its obligation hereunder.
Section 40-15. Fees and Taxes
All commercial cannabis Adult Use Gannabis •e'a" businesses shall pay
applicable fees and taxes, which shall include one or more of the following:
1. Application Fees. The business owner shall submit a non-refundable fee
to cover the cost of processing an application for the commercial cannabis Adult Use
eann„abis Petail business. These fees may be divided into two fees according to
Registration Application Fee (Phase 1) and RSP Application Fee (Phase 2).
2. Regulatory Safety Permit Renewal Fees. The business owner shall submit
a non-refundable fee to cover the cost of processing an application renewal annually.
3. Business License Taxes. The business owner shall at all times maintain a
current and valid City of Santa Ana business license and shall pay all business license
taxes, deposits, charges, fees, deficiencies, penalties, interest, and other associated
assessments as may be required pursuant to ordinances of the City of Santa Ana
and/or the Santa Ana Municipal Code.
4 Adult Use r.,.,Ralg•s Retails Operating Agreement Fees.
5. Additional cannabis -specific gross receipts, excise taxes, or other
municipal tax approved by the voters of the City of Santa Ana.
6. All required state taxes including sales and use taxes, business/franchise
or income taxes, payroll taxes, etc.
7. All required federal taxes.
Section 4. Section 18-611 of Article XIII of Chapter 18 of the Santa Ana
Municipal Code is hereby amended to read in full as follows:
Sec. 18-611. - Definitions. (Not in alphabetical order)
(a) "Cultivation" and/or "Cultivate" shall mean the planting, growing, harvesting, drying,
curing, grading or trimming of one (1) or more marijuana plants or any part thereof,
as set forth in Business and Profession Code § 26001 (1) as amended from time to
time.
(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
Ordinance No. NS -XXX
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75B-72
(1) 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. This term shall include any legal
form of business recognized in the State of California. 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 limited to, Health and Safety
Code Section 11362.5 at seq.
(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 (1) 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.
(i) 'Private Residence' shall have the same definition as that contained in Health
and Safety Code sections 11362.2(5) and 17922. A recreational vehicle does not
constitute a lawfully established structure for the purposes of this article.
Ordinance No. NS -XXX
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75B-73
(j) "Premises' means a single, legal parcel of property. Where contiguous legal parcels
under common ownership or control, such contiguous legal parcels shall constitute
a single "premises" for purposes of this chapter.
(k) 'Parcel' means property assigned a separate parcel number by the Orange County
assessor.
(1) "Marijuana Products' shall have the same definition as that contained in Health and
Safety Code section 11018.1.
(m) "Marijuana Accessories' shall have the same definition as that contained in Health
and Safety Code section 11018.2.
(n) `Personal Cultivation" shall mean the planting, growing, harvesting, drying, curing,
grading or trimming of marijuana plants for personal use within a private residence
or accessory structure to a private residence.
(o) "Commercial Cultivation" shall mean the planting, growing, harvesting, drying,
curing, grading or trimming of marijuana plants in any structure other than a private
residence.
(p) "Outdoor Cultivation' shall mean the planting, cultivating, growing, harvesting,
drying, curing, grading or trimming of marijuana plants in any location within the City
of Santa Ana that is not within a fully enclosed and secure structure.
(q) "Fully enclosed and secure structure" means a space within a building, greenhouse
or other structure which has a complete roof enclosure supported by connecting
walls extending from the ground to the roof, which is secure against unauthorized
entry, provides complete visual screening, and which is accessible only through one
or more lockable doors.
(r) "Delivery" means the commercial transfer of medical cannabis or medical cannabis
products from a dispensary, up to an amount determined to be authorized by the State
of California, or any of its departments or divisions, to qualified patients and their
caregivers. "Delivery' also includes the use by a dispensary of any technology platform
owned, controlled, and/or licensed by the dispensary, or independently licensed by the
State of California under the State law (as amended from time to time), that enables
anyone to arrange for or facilitate the commercial transfer by a licensed dispensary of
medical cannabis or medical cannabis products. For the purposes of this article,
"delivery" does not include distribution or purchase of cannabis from a licensed
cultivator, and cannabis products from a licensed manufacturer, for sale to a licensed
dispensary or a wholesale establishment.
(s) "Dispensary" means a premises where medical cannabis or medical cannabis
products, or devices for the use of medical cannabis or medical cannabis products are
offered, either individually or in any combination, for retail sale, including an
establishment that delivers, pursuant to Business and Professions Code § 19340,
medical cannabis and medical cannabis products as part of a retail sale.
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75B-74
(t) "Responsible person" means any of the following:
(1) A person who causes a Code violation to occur.
(2) A person who maintains or allows a Code violation to continue, by his or her
action or failure to act.
(3) A person whose agent, employee, or independent contractor causes a Code
violation by its action or failure to act.
(4) A person who is the owner of, and/or a person who is a lessee or sub lessee
with the current right of possession of, real property where a property -related
Code violation occurs.
(5) A person who is the on-site manager of a business who normally works daily
at the site when the business is open and is responsible for the activities of such
premises.
For the purposes of this section "person"
and the owners, majority stockholders, ci
partners of a legal entity.
includes a natural person or legal entity,
rporate officers, trustees, and general
(u) "Distribution" means the procurement, sale and transport of cannabis and cannabis
products between entities licensed pursuant to the Medicinal and Adult -Use of Cannabis
Regulation and Safety Act, and any subsequent State of California legislation regarding
the same.
(v-) "Testing Facility" or "Testing Laboratory' defined in the Business and Professions
Code section 26001 as amended from time to time, means a laboratory, facility, or
entity in the State that offers or performs tests of cannabis or cannabis products and
that is both of the following:
b) Licensed by the Bureau of Cannabis Control.
Section 5: Section 18-620 of Article XIII of Chapter 18 of the Santa Ana
Municipal Code is hereby amended to read in full as follows:
Sec. 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, responsible person or volunteer of a
Ordinance No. NS -XXX
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75B-75
collective or cooperative, except as provided in this article, and pursuant
to any and all other applicable local and state laws.
(iii) The prohibition in subsection (ii) above includes, renting, leasing, or
otherwise permitting a medical marijuana business to occupy or use a
location, vehicle, or other mode of transportation.
(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.
(e) Cultivation of Marijuana.
(1) Personal Cultivation. Individuals 21 years of age or older may
plant, cultivate, harvest, dry, or process up to (6) living
marijuana plants for personal use in a private residence or
accessory structure to a single private residence in the City of
Santa Ana and must comply with the following requirements:
(i) The marijuana cultivation area shall be located indoors
within a private residence or accessory structure on a
single parcel of property;
(ii) No more than six (6) living marijuana plants is permitted
for indoor personal cultivation;
(iii) Marijuana in excess of 28.5 grams produced by plants
kept for indoor personal cultivation must be kept in a
locked space on the grounds of the private residence not
visible from the public right -of way.
(iv) There shall be no exterior visibility or evidence of
marijuana cultivation outside the private residence from
the public right-of-way, including but not limited to any
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75B-76
marijuana plants, equipment used in the growing and
cultivation operation, or any light emanating from the
cultivation; or
(v) The cultivation may not violate any California Building,
Electrical or Fire Codes or any other health and safety
standards.
(2) Commercial Cultivation. Commercial cultivation of marijuana or
medical marijuana is prohibited anywhere in the City. No
person, including a qualified patient or primary caregiver, shall
engage, permit, or participate in the commercial cultivation of
marijuana in the City.
(3) Outdoor Cultivation. Outdoor cultivation of marijuana or medical
marijuana is prohibited anywhere in the City. No person,
including a qualified patient or primary caregiver, shall engage,
permit, or participate in the outdoor cultivation of marijuana in
the City.
(4) Nuisance.
(i) It is hereby declared to be unlawful, a public nuisance, and a
violation of this Chapter for any person owning, leasing, occupying,
or having charge or possession of any parcel within the City to
cause or allow such parcel to be used for the cultivation of
marijuana, unless the person is authorized by state law to grow
marijuana within a private residence, and such authorized person is
complying with all requirements of this Chapter.
(5) Public Nuisance Prohibited.
(i) It is hereby declared to be unlawful and a public nuisance for
any person owning, leasing, occupying, or having charge or
possession of any parcel within the City to create a public nuisance
in the course of cultivating marijuana plants or any part thereof in
any location, indoor or outdoor. A public nuisance may be deemed
to exist, if such activity produces:
(1) Odors which are disturbing to people of
reasonable sensitivity residing or present on
adjacent or nearby property or areas open to the
public;
(2) Repeated responses to the parcel by law
enforcement personnel;
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75B-77
(3) A repeated disruption to the free passage of
persons or vehicles in the neighborhood,
excessive noise which is disturbing to people of
normal sensitivity on adjacent or nearby property
or areas open to the public;
(4) Any other impacts on the neighborhood which
are disruptive of normal activity in the area
including, but not limited to, grow lighting visible
outside the dwelling, excessive vehicular traffic
or parking occurring at or near the dwelling, and
excessive noise emanating from the dwelling.
(5) Outdoor and Commercial growing and cultivation
of marijuana.
(f) A permitted medical marijuana dispensary may deliver medical marijuana
only to a qualified patient or caregiver. Medical marijuana delivery services by
dispensaries possessing regulatory safety permits must comply with Business
and Professions Code §19340. Delivery of cannabis from a dispensary permitted
pursuant to this Chapter can only be made in a city or county that does not
expressly prohibit it by ordinance. Delivery services by dispensaries not in
possession of regulatory safety permits is expressly prohibited.
(g) Testinc Facilities/Laboratories for Medicinal and Adult -Use Cannabis as
defined in Chapters 18 and 40 of the Santa Ana Municipal Code (SAMC) are
Section 6. If any section, subsection, sentence, clause, phrase or portion of this
ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Santa Ana hereby
declares that it would have adopted this ordinance and each section, subsection,
sentence, clause, phrase or portion thereof irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
ADOPTED this day of 2018.
Miguel A. Pulido
Mayor
Ordinance No. NS -XXX
Page 32 of 33
75B-78
APPROVED AS TO FORM
Sonia R. Carvalho, City Attorney
By:�C
Lisa Storck
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 Ordinance No. NS- to be the original ordinance adopted by the
City Council of the City of Santa Ana on , and that said
ordinance was published in accordance with the Charter of the City of Santa Ana.
Date:
Clerk of the Council
City of Santa Ana
75B-79
Ordinance No. NS -XXX
Page 33 of 33
75B-80
LS 3.20.18
RESOLUTION NO. 2018 -XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA MODIFYING THE ADULT -USE CANNABIS
RETAIL REGISTRATION APPLICATION FEE AND
REGULATORY SAFETY PERMIT FEE TO APPLY TO ANY
COMMERCIAL CANNABIS BUSINESS IN ACCORDANCE
WITH CHAPTERS 18 AND 40 OF THE SANTA ANA
MUNICIPAL CODE
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. The City of Santa Ana ("City") currently requires that all medical marijuana
collectives/cooperatives permitted in Chapter 18 (Measure BB) and all adult -use
commercial cannabis retail businesses permitted in Chapter 40 submit a Registration
Application and a Regulatory Safety Permit (RSP), the latter of which is renewed annually.
Currently, the fees may only be collected for applicants seeking to apply for or renew those
permits associated for medical marijuana collectives/cooperatives and adult -use
commercial cannabis retail businesses.
B. On October 17, 2017, the City Council of the City of Santa Ana placed on
first reading and approved Ordinance No. NS -2929 adding Chapter 40 to the Santa Ana
Municipal Code to allow and regulate adult -use cannabis retail businesses.
C. On March 20, 2018, the City Council of the City of Santa Ana placed on
first reading and approved Ordinance No. NS-XXXX amending Chapter 18 and Chapter
40 of the Santa Ana Municipal Code to allow and regulate commercial cannabis testing
facilities and laboratories.
C. Section 40-9 of the Santa Ana Municipal Code authorizes a registration
application fee and regulatory safety permit fee related to the processing of applications
to open and operate an adult -use cannabis retail business.
D. Based on analysis and evaluation of staff time, equipment, and materials,
these fees are recommended as set forth below.
E. These fees shall become effective concurrently with the effective date of
Ordinance No. NS-XXXX and shall be incorporated into the City's Uniform Schedule of
Miscellaneous Fees for Fiscal Year 2017-18, as updated annually.
Exhibit 4
75B-81
Resolution No. 2018 -XXX
Page 1 of 3
LS 3.20.16
Section 2. The City Council hereby modifies the "Adult -Use Cannabis Retail
Registration Application Fee". This fee will now apply to all commercial cannabis
businesses permitted pursuant to Chapters 18 and 40 of the Santa Ana Municipal Code
to include City staff costs associated with reviewing the required Phase 1 application
pursuant to Chapters 18 and 40 and be referenced to as the "Commercial Cannabis
Registration Application Fee". City staff costs are $1,690.00 per application. The City
Council hereby also modifies the "Adult -Use Cannabis Retail Regulatory Safety Permit
(RSP) Fee" which will now be referenced to as the "Commercial Cannabis Regulatory
Safety Permit (RSP) Fee". This fee will apply to all commercial cannabis businesses
permitted pursuant to Chapters 18 and 40 of the Santa Ana Municipal Code to include
City staff costs associated with reviewing the required Phase 2 (RSP) application
pursuant to Chapters 18 and 40. City staff costs are $12,086.00 per application. The
dollar amounts attributed with these fees has not changed; merely the listing name of
the fee has changed so that it will include any allowed commercial cannabis business.
Section 3. Without further action of the City Council, the above -referenced
fees re -named and affirmed by this Resolution shall be incorporated into the City's
Uniform Schedule of Miscellaneous Fees for Fiscal Year 2017-18 and updated annually.
Section 4. 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 , 2018.
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
Lisa Storck
Assistant City Attorney
Miguel A. Pulido
Mayor
75B-82
Resolution No. 2018 -XXX
Page 2 of 3
LS 320.18
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No.
2018- to be the original resolution adopted by the City Council of the City of Santa
Ana on .2018.
Date:
Clerk of the Council
City of Santa Ana
75B-83
Resolution No. 2018 -XXX
Page 3 of 3
75B-84