HomeMy WebLinkAbout11B - 2ND READ ORD - CANNABIS FUNDCITY COUNCIL MEETING DATE:
DECEMBER 4, 2015
TITLE:
ORDINANCE SECOND READING: ADDING
ARTICLE XX TO CHAPTER 13 OF THE
SANTA ANA MUNICIPAL CODE TO
ESTABLISH A CANNABIS PUBLIC BENEFIT
FUND (STRATEGIC PLAN NO. 5,1)
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CIT ANAGER
Place ordinance on second reading and adopt.
DISCUSSION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 151 Reading
❑ Ordinance on 2n' Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
On November 20, 2018, the following ordinance was introduced for first reading and City Council
authorized publication of title by a vote of 5-0 (Pulido and Sarmiento abstained):
ORDINANCE NO. NS -2959 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA, CALIFORNIA, ADDING ARTICLE XX TO CHAPTER 13 OF THE SANTA ANA
MUNICIPAL CODE TO ESTABLISH A CANNABIS PUBLIC BENEFIT FUND
In summary, the Cannabis Fund will be used to fund new or additional Youth Services but, will
not be used to supplement existing Youth Services. The Cannabis Fund will also be used to fund
community enforcement and code enforcement.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability,
Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement
initiative to expand access to information and create opportunities for stakeholders to play an
active role in discussing public policy and setting priorities).
FISCAL IMPACT
There is no fiscal impact associated with this action.
Maria 0. Huizar
Clerk of the Council
Exhibit: 1. Ordinance No. NS -2959
11B-1
11 B-2
11 B-3
11 B-4
SRC 11/20/18
ORDINANCE NO. NS -XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA,
CALIFORNIA, ADDING ARTICLE XX TO CHAPTER 13 OF THE SANTA ANA
MUNICIPAL CODE TO ESTABLISH A CANNABIS PUBLIC BENEFIT FUND
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS
FOLLOWS:
Section 1. Section XX is hereby added to Chapter 13 of the Santa Ana Municipal
Code and shall read as follows:
ARTICLE XX.- CANNABIS PUBLIC BENEFIT FUND.
Sec. 13-200. - Establishment of the Fund.
There is hereby established within the City of Santa Ana the "Cannabis
Public Benefit Fund", which shall be two sub -funds, one for Enforcement
Services and one for Youth Services, within the City's General Fund (the
"Cannabis Fund").
Sec. 13-201.- Purpose.
The Cannabis Fund shall be used to fund new or additional Youth
Services, as of the date of the fund creation, for City of Santa Ana
residents. The Cannabis Fund shall not be used to supplement existing
Youth Services. The Cannabis Fund shall also be used to fund
community enforcement and code enforcement.
Sec. 13-202.- Definitions.
For the purposes of this Article, the following words and phrases shall
be construed as having the following definitions:
Adult Use- shall have the same meaning as that set forth in Santa Ana
Municipal Code ("SAMC") section 40-2(2) as may be periodically amended. At
the time of adoption of this Article, meaning cannabis or cannabis products that
are intended to be used for non -medicinal purposes by a person twenty-one (21)
years of age or older.
Commercial Cannabis Activity — shall have the same meaning as that
set forth in SAMC section 40-2(9) as may be periodically amended. At the time
of adoption of this Article, meaning the cultivation, possession, manufacture,
distribution, processing, storing, laboratory, packaging, labeling, transportation,
delivery or sale of cannabis or cannabis products as provided for in this Chapter
Ordinance No. NS -XXX
Page 1 of 4
11B-5
[Chapter 40]. Permitted commercial cannabis activities are listed in Land Use
Table 40-5 of this Chapter [Chapter 40].
Enforcement Services — any and all services provided by City staff for
the prevention, detection, investigation and violations of the City's codes and
ordinances intended to prevent public nuisances or activities that are detrimental
to the health, safety and welfare of the community.
Medicinal/Medical Cannabis- shall have the same meaning as that set
forth in SAMC section 40-2(27) as may be periodically amended. At the time of
adoption of this Article, meaning 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. Medical cannabis retail is regulated by Chapter 18 and
Chapter 21 of the Santa Ana Municipal Code.
Operating Agreement- shall have the same meaning as that set forth in
SAMC section 40-1C as may be periodically amended. At the time of adoption
of this Article, meaning a legally binding written agreement between each
commercial cannabis business operator and the City, executed by the City
Manager, or his or her designee, and in a form or 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. A distinct Commercial Cannabis Operating Agreement shall be
required for each location and type of commercial cannabis business activity
taking place at an approved Commercial Cannabis Business.
Youth Services- any and all services provided to residents of the City
under the age of 24 for athletic, recreational, health, educational, or human
services, directly by City staff or through partnerships with third parties. This may
include City facility improvements, maintenance and equipment needs related to
youth services.
Sec. 13-203. - Cannabis Revenue Funding.
A. Automatic Deposit of Cannabis Tax Revenues into the
Cannabis Fund. The Cannabis Fund shall be funded by an automatic
deposit of twe *n.� (213) one-third (1/3) of all cannabis tax revenues
generated each year for Enforcement Services and one-third (1/3) of all
cannabis tax revenues generated each year for Youth Services,
commencing with the Fiscal Year Budget for 2018-20 and continuing
thereafter in the budget for each Fiscal Year, from all of the following: 1)
Operating Agreements for Commercial Cannabis businesses and 2) Any
newly adopted Cannabis Business License Tax. For purposes of this
subsection, in addition to the descriptions provided directly above in this
paragraph, the phrase "cannabis tax revenues' means all revenues
generated from any new or increased cannabis tax which has been
approved by the voters of the City on or after the effective date of this
Chapter and any increase of the cannabis tax authorized by the Santa
2 Ordinance No. NS -XXX
11 B-6 Page 2 of 4
Ana Municipal Code and approved by the City Council. Tax revenue from
Medicinal/Medical Cannabis shall not go into the Cannabis Fund. Funds
in this these sub -funds shall be carried over from year-to-year.
B. Discretionary Deposits into Cannabis Fund not Prohibited.
Nothing in this Chapter shall prohibit the City Council, as part of the
budgeting process, from contributing additional revenues to the Cannabis
Fund, as determined in the City Council's sound legislative discretion.
C. Expenditures from the Cannabis Fund. Funds in the
Cannabis Fund shall be restricted to 1) Youth Services: expenditures for
new, additional or enhanced, as of the date the Cannabis Fund is created,
Youth Services for City of Santa Ana residents and 2) Enforcement
Services: expenditures for Enforcement Services.
Sec. 13-204.- Presentation to City Council.
At least two times per year the City Manager shall make a presentation
to the City Council and report on the revenue that has been deposited in
the Cannabis Fund and expenditures from the Cannabis Fund.
Sec. 13-205. - Procedure for Amending, Suspending or Rescinding
Ordinance.
This ordinance may only be amended, suspended or rescinded by an
affirmative vote of at least two-thirds of the City Council after making
findings that a structural deficit exists in the same manner as required to
access the Economic Uncertainty Account as set forth in the City's Budget
and Financial Policy.
Section 2. 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 3
Page 3 of 4 11 B-7
APPROVED AS TO FORM
//Sonia R. Carvalho//
SONIA R. CARVALHO
City Attorney
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Councilmembers:
Councilmembers:
Councilmembers:
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 -XXX to be the original ordinance adopted by the
City Council of the City of Santa Ana on , 2018, 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
11 B-8
Ordinance No. NS -XXX
Page 4 of 4
CLEAN VERSION
11 B-9
11B-10
SRC 11/20/18
ORDINANCE NO. NS -XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA,
CALIFORNIA, ADDING ARTICLE XX TO CHAPTER 13 OF THE SANTA ANA
MUNICIPAL CODE TO ESTABLISH A CANNABIS PUBLIC BENEFIT FUND
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS
FOLLOWS:
Section 1. Section XX is hereby added to Chapter 13 of the Santa Ana Municipal
Code and shall read as follows:
ARTICLE XX.- CANNABIS PUBLIC BENEFIT FUND.
Sec. 13-200. - Establishment of the Fund.
There is hereby established within the City of Santa Ana the "Cannabis
Public Benefit Fund", which shall be two sub -funds, one for Enforcement
Services and one for Youth Services, within the City's General Fund (the
"Cannabis Fund").
Sec. 13-201.- Purpose.
The Cannabis Fund shall be used to fund new or additional Youth
Services, as of the date of the fund creation, for City of Santa Ana
residents. The Cannabis Fund shall not be used to supplement existing
Youth Services. The Cannabis Fund shall also be used to fund
community enforcement and code enforcement.
Sec. 13-202.- Definitions.
For the purposes of this Article, the following words and phrases shall
be construed as having the following definitions:
Adult Use- shall have the same meaning as that set forth in Santa Ana
Municipal Code ("SAMC") section 40-2(2) as may be periodically amended. At
the time of adoption of this Article, meaning cannabis or cannabis products that
are intended to be used for non -medicinal purposes by a person twenty-one (21)
years of age or older.
Commercial Cannabis Activity — shall have the same meaning as that
set forth in SAMC section 40-2(9) as may be periodically amended. At the time
of adoption of this Article, meaning the cultivation, possession, manufacture,
distribution, processing, storing, laboratory, packaging, labeling, transportation,
delivery or sale of cannabis or cannabis products as provided for in this Chapter
Ordinance No. NS -XXX
Page 1 of 4
11B-11
[Chapter 401. Permitted commercial cannabis activities are listed in Land Use
Table 40-5 of this Chapter [Chapter 40].
Enforcement Services — any and all services provided by City staff for
the prevention, detection, investigation and violations of the City's codes and
ordinances intended to prevent public nuisances or activities that are detrimental
to the health, safety and welfare of the community.
Medicinal/Medical Cannabis- shall have the same meaning as that set
forth in SAMC section 40-2(27) as may be periodically amended. At the time of
adoption of this Article, meaning 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. Medical cannabis retail is regulated by Chapter 18 and
Chapter 21 of the Santa Ana Municipal Code.
Operating Agreement- shall have the same meaning as that set forth in
SAMC section 40-1 C as may be periodically amended. At the time of adoption
of this Article, meaning a legally binding written agreement between each
commercial cannabis business operator and the City, executed by the City
Manager, or his or her designee, and in a form or 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. A distinct Commercial Cannabis Operating Agreement shall be
required for each location and type of commercial cannabis business activity
taking place at an approved Commercial Cannabis Business.
Youth Services- any and all services provided to residents of the City
under the age of 24 for athletic, recreational, health, educational, or human
services, directly by City staff or through partnerships with third parties. This may
include City facility improvements, maintenance and equipment needs related to
youth services.
Sec. 13-203. - Cannabis Revenue Funding.
A. Automatic Deposit of Cannabis Tax Revenues into the
Cannabis Fund, The Cannabis Fund shall be funded by an automatic
deposit of one-third (1/3) of all cannabis tax revenues generated each
year for Enforcement Services and one-third (1/3) of all cannabis tax
revenues generated each year for Youth Services, commencing with the
Fiscal Year Budget for 2018-20 and continuing thereafter in the budget for
each Fiscal Year, from all of the following: 1) Operating Agreements for
Commercial Cannabis businesses and 2) Any newly adopted Cannabis
Business License Tax. For purposes of this subsection, in addition to the
descriptions provided directly above in this paragraph, the phrase
"cannabis tax revenues" means all revenues generated from any new or
increased cannabis tax which has been approved by the voters of the City
on or after the effective date of this Chapter and any increase of the
cannabis tax authorized by the Santa Ana Municipal Code and approved
2 Ordinance No. NS -XXX
11B-12 Page 2 of 4
by the City Council. Tax revenue from Medicinal/Medical Cannabis shall
not go into the Cannabis Fund. Funds in this these sub -funds shall be
carried over from year-to-year.
B. Discretionary Deposits into Cannabis Fund not Prohibited.
Nothing in this Chapter shall prohibit the City Council, as part of the
budgeting process, from contributing additional revenues to the Cannabis
Fund, as determined in the City Council's sound legislative discretion.
C. Expenditures from the Cannabis Fund. Funds in the
Cannabis Fund shall be restricted to 1) Youth Services: expenditures for
new, additional or enhanced, as of the date the Cannabis Fund is created,
Youth Services for City of Santa Ana residents and 2) Enforcement
Services: expenditures for Enforcement Services.
Sec. 13-204.- Presentation to City Council.
At least two times per year the City Manager shall make a presentation
to the City Council and report on the revenue that has been deposited in
the Cannabis Fund and expenditures from the Cannabis Fund.
Sec. 13-205. - Procedure for Amending, Suspending or Rescinding
Ordinance.
This ordinance may only be amended, suspended or rescinded by an
affirmative vote of at least two-thirds of the City Council after making
findings that a structural deficit exists in the same manner as required to
access the Economic Uncertainty Account as set forth in the City's Budget
and Financial Policy.
Section 2. 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 3
Page 3 of 4 11B-13
APPROVED AS TO FORM
//Sonia R. Carvalho//
SONIA R. CARVALHO
City Attorney
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Councilmembers:
Councilmembers:
Councilmembers:
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 -XXX to be the original ordinance adopted by the
City Council of the City of Santa Ana on , 2018, 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
4 Ordinance No. NS -XXX
11B-14 Page 4of4