Item 28 - OC Grand Jury's Report, Findings, Recs. Regarding Santa Ana's Cannabis Program

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Exhibit 2 Grand Jury Findings and City Responses Finding Response to Finding F1 There is no clearly identifiable accounting of where all the Enforcement Services money received from Retail Adult-Use Cannabis licensing in accordance with Santa Ana Municipal Ordinance number NS-2959, section 13-203 was spent. The City disagrees with this finding. The Budget Documents on the City’s website include the planned spending as well as historical spending. FY19-20 pages 2-1 through 2-12, FY20-21 pages 2-4 through 2-18, and FY21-22 pages 5-14, 7-21, 10-41, and 12-22. In addition, actual and budget spending data can be found in the City’s OpenBook portal. The specific link for the Cannabis Public Benefit fund is https://santaana.openbook.questica.com/#/visualization/78ea955f-018b-4bb4-b163- dd46b21f004c?ID110_ID2534_ID591_FundDisplayName=012%20-%20CANNABIS%20PUBLIC%20BENEFIT&h=Fund&hl=2 F2 The legalization of Retail Adult-Use Cannabis by the City of Santa Ana and the resulting increase in city revenue have allowed the city to significantly expand its youth services programs. The City agrees with the Grand Jury’s finding. F3 There are multiple departments within the City of Santa Ana responsible for various aspects of Retail Adult-Use Cannabis oversight. The decentralized nature of the oversight within the City makes information difficult to obtain. The City disagrees with this finding. The City Council has funded key staff positions in the Planning and Building Agency, Police Department, Finance and Management Services, and the City Attorney’s Office for commercial cannabis program administration; the oversight of this industry is performed by key personnel that provides expertise in their area of public administration. As such, the City of Santa Ana has developed its approach to address cannabis commerce no different than any other approved industry or business operating within the City. This multi-agency organizational approach allows for checks and balances, ensures accuracy in the information provided, and further enhances efficiency protocols to provide essential customer service. More importantly, it limits bureaucratic delays and provides direct departmental-related expertise in the assistance of any query while also providing the capability for quick remedial action in the resolution of any concern. As an example, Planning and Building personnel understandably address zoning and tenant improvement inquiries, while business license related concerns are promptly addressed by the Finance and Management Services Agency. This approach in developing and governing of the cannabis regulatory program has placed Santa Ana at the forefront of the cannabis growth industry in Orange County and in the State, allowing the City to efficiently administer the program. F4 The number of unlicensed cannabis dispensaries in Santa Ana has significantly declined since the business licensing of Retail Adult-Use Cannabis dispensaries. The City agrees with the Grand Jury’s finding. F5 The Orange County Grand Jury did not receive evidence of an increase in crime as a result of the licensing of Retail Adult-Use Cannabis dispensaries. The City agrees with the Grand Jury’s finding. F6 The Cannabis Community Benefits Program motivates local dispensaries to contribute funds and/or staff volunteer hours for the benefit of the City of Santa Ana. The City agrees with the Grand Jury’s finding.