HomeMy WebLinkAboutNS-2959 - Adding Article XX to Chapter 13 of Santa Ana Municipal Code to Establish a Cannabis Public Benefit FundSRC 11/20/18
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
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 -2959
Page 1 of 4
[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 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
Ordinance No. NS -2959
Page 2 of 4
authorized by the Santa Ana Municipal Code and approved by the City Council.
Tax revenue from Medicinal/Medical Cannabis shall not go into the Cannabis
Fund. Funds in 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 4t" day of December, 2018.
Ordinance No. NS -2959
Page 3 of 4
APPROVED AS TO FORM:
By: -,7d (P3 .GVi c
Sonia R. Carvalho
City Attorney
AYES: Councilmembers: Benavides Pulido Martinez, Solorio, Tinalero,
Villegas (6)
NOES: Councilmembers: None (0)
ABSTAIN: Councilmembers: None (0)
NOT PRESENT: Councilmembers: Sarmiento (1)
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 -2959 to be the original ordinance adopted by the City
Council of the City of Santa Ana on December 4, 2018, and that said ordinance was
published in accordance with the Charter of the City of Santa Ana.
Date: o/w/701E �a-"� /i✓�
Maria D. Huizar
Clerk of the Council
City of Santa Ana
Ordinance No. NS -2959
Page 4 of 4