HomeMy WebLinkAbout11B - ORD CANNABIS USELS 9.3.19
ORDINANCE NO. NS-2973
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AMENDING CERTAIN SECTIONS OF ARTICLE XIII
OF CHAPTER 18 OF THE SANTA ANA MUNICIPAL CODE
PERTAINING TO MEDICINAL MARIJUANA AND CHAPTER 40
OF THE MUNICIPAL CODE PERTAINING TO COMMERCIAL
CANNABIS TO UPDATE AND STREAMLINE IMPLEMENTATION
OF COMMERCIAL CANNABIS, INCLUDING MEDICINAL
CANNABIS PURCHASING AGE (SECTION 18-613), EMPLOYEE
BADGES (SECTIONS 18-613 AND 40-8), MANUFACTURING
PERMIT REQUIREMENTS (SECTION 40-8), AND
ADMINISTRATION AND IMPLEMENTATION AMENDMENTS
(SECTIONS 18-617.5, 40-1, 40-2, 40-5. 40-8. 40-9.1, AND 40-10)
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. 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.
B. 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 further amended in 2016 as the Medical Cannabis Regulation and Safety Act which
established regulations and a state licensing system for medical cannabis cultivation,
manufacturing, delivery, and dispensing.
C. In November 2016, the voters of the State of California approved Proposition 64,
the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana
Act.
D. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal
and Adult -Use Cannabis Regulation and Safety Act.
E. 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.
F. 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. On March
PI
11 B-1
20, 2018, the City Council adopted Ordinance NS-2941 and NS-2942, allowing and
regulating commercial cannabis testing laboratories.
G. On April 17, 2018, the City Council adopted Ordinance NS-2944 allowing and
regulating commercial cannabis cultivation, distribution, and manufacturing activities.
H. On November 6, 2018, the voters of the City of Santa Ana approved Measure Y
(Ordinance NS-2962), establishing a tax on commercial cannabis business activities except
medicinal cannabis retail sales, which continue to be subject to taxes under Measure BB.
I. The State of California continues to update its regulations on commercial cannabis
business licensing, resulting in the need for local jurisdictions to update and amend local
commercial cannabis ordinances from time to time.
J. 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.
K. The City of Santa Ana has a compelling interest in ensuring that cannabis is not
cultivated, manufactured or distributed in an illicit manner, in protecting the public health,
safety and welfare of its residents and businesses, in preserving the peace and quiet of the
neighborhoods in which these uses may operate, and in providing access of cannabis to
residents.
L. The City Council has held a duly noticed public hearing on August 20, 2019 in
connection with consideration and adoption of this ordinance.
Section 2. This Ordinance is adopted pursuant to the authority granted by the
California Constitution and State law, including but not limited to: Article IX, Section 7 of the
California Constitution, the Compassionate Use Act of 1996 (California Health and Safety Code
Section 11362.5), the Medical Marijuana Program (California Health and Safety Code Section
11362.7 at seq.), the Medical Marijuana Regulation and Safety Act (AS 266, AB 243, and SB
643; hereafter "MMRSA"), the Adult Use of Marijuana Act (Proposition 64), and the Medical and
Adult Use Cannabis Regulation and Safety Act (SB 94; hereafter "MAUCRSA").
Section 3. 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 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 the adoption of this
ordinance.
Section 4. All provisions of the Santa Ana Municipal Code which are repeated herein
are repeated solely in order to comply with the provisions of Section 418 of the City Charter.
Any such restatement of existing provisions of the Code is not intended, nor shall it be
interpreted, as constituting a new action or decision of the City Council, but rather such
provisions are repeated for tracking purposes only in conformance with the Charter.
2
11 B-2
Section 5. Section 18-613 of Article XIII of Chapter 18 of the Santa Ana
Municipal Code is hereby amended to read in full as follows:
Sec. 18-613. - Operating Standards.
(a) At all times the collective is open, a collective shall provide at least one (1) security
guard who is licensed, possesses a valid department of consumer affairs "security
guard card", and has a valid Santa Ana Business License. In the event that the
security guard is employed by an outside security guard company; such security
guard company shall maintain a valid Santa Ana Business License.
(b) The security guard and collective personnel shall monitor the site and the
immediate vicinity of the site to assure that patrons immediately leave the site and
not consume medical marijuana in the vicinity of the collective or on the property or
in the parking lot.
(c) Exterior signage shall comply with Article XI of Chapter 41. Interior signage or
advertising may not be visible from the exterior. Collectives and dispensaries must
comply with the advertising and marketing provisions of Business and Professions
Code §§ 26150-26155.
(d) No recommendations from a doctor for medical marijuana shall be issued on -site.
(e) There shall be no on -site sales of alcohol or tobacco products, and no on -site
consumption of food, alcohol, tobacco or marijuana by patrons.
(f) Hours of operation shall be limited to: 7:00 a.m. to 11:00 p.m. daily. No licensed
dispensary/collective shall be open to the public between the hours of 11:01 p.m.
and 6:59 a.m. of any day.
(g) The property shall provide an air treatment system with sufficient odor absorbing
ventilation and exhaust systems so that odor generated inside the location is not
detected outside the building, anywhere on adjacent property or public rights -of -
way, or within any other unit located within the same building as the collective if the
use only occupies a portion of a building.
(h) A collective shall only dispense medical marijuana to qualified patients and their
caregivers as defined by California Health and Safety Code § 11362.5 (Proposition
215). This shall include possession of an original valid doctor's recommendation,
not more than one (1) year old, for medical marijuana use by the patient.
(1) A collective shall notify patrons of the following both verbally and through posting
of a sign in a conspicuous location:
(1) Use of medical marijuana shall be limited to the patient identified on the
doctor's recommendation. Secondary sale, barter or distribution of medical
marijuana is a crime and can lead to arrest.
(2) That loitering on and around the collective site is prohibited by California
Penal Code § 647(e) and that patrons must immediately leave the site and not
consume medical marijuana in the vicinity of the collective or on the property or in
the parking lot.
(3) Forgery of medical documents is a felony crime.
(4) A warning that patrons may be subject to prosecution under federal
marijuana laws.
(5) That the use of medical marijuana may impair a person's ability to drive a
motor vehicle or operate machinery.
11 B-3
Q) A collective shall not provide marijuana to any individual in an amount not
consistent with personal medical use.
(k) All agents, private security officers or other persons acting for or employed by a
collective shall display a laminated identification badge at least two (2) inches by
two (2) inches in size, issued by the City. The badge, at a minimum, shall include
the employee's first and last name, date of most recent Live Scan, expiration date
of Live Scan results after the one-year period, and a color photo of the employee
that shows the full front of the employee's face.
(1) No one under eighteen (18) years of age shall be permitted to enter establishment,
unless such person is a qualified patient and is accompanied by his or her primary
caregiver, licensed attending physician, parent(s) or documented legal guardian.
(m) A collective shall provide the name and phone number of an on -site staff person to
the police department and the code enforcement division of the planning and
building agency for notification if there are operational problems with the
establishment.
(n) Each collective owner, operator(s) and employees shall complete a criminal
background check and wear a visible photo ID at all times during operating hours.
Owners, operator(s), employees, managers or volunteers may not have been
convicted of, or pleaded 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 and Safety Code section 11590.
(o) Marijuana shall not be grown or cultivated at collective sites, except that cuttings of
the marijuana plant may be kept or maintained on -site for distribution to qualified
patients and primary caregivers as follows:
(1) The cuttings shall not be utilized by a collective as a source for the provision
of marijuana for consumption on -site, however, upon provision to a qualified
patient or primary caregiver, that person may use the cuttings to cultivate
marijuana plants off -site for their own use and they may also return marijuana from
the resulting mature plant for distribution by the collective.
(2) For the purposes of this paragraph, the term "cutting" shall mean a rootless
piece cut from a marijuana plant, which is no more than six (6) inches in length,
and which can be used to grow another plant in a different location.
(p) A collective shall comply with applicable provisions of the California Health and
Safety Code §§ 11362.5 through 11362.83, inclusive.
(q) If food is distributed, the collective shall comply with all relevant state laws and city
and/or county ordinances pertaining to the preparation, distribution and sale of
food.
(r) The location, interior and exterior, shall be monitored at all times by web -based
closed-circuit television for security purposes. The camera and recording system
must be of adequate quality, color rendition and resolution to allow the ready
identification of any individual committing a crime anywhere on or adjacent to the
location. The recordings shall be maintained for a period of not less than ninety
(90) days. The police department may request the recordings in connection with an
investigation. If the recordings are not voluntarily provided, the police department
may seek a warrant or court order for the recordings.
11 B-4
(s) The location shall have a centrally -monitored fire and burglar alarm system which
shall include all perimeter entry points and perimeter windows and the building or
the portion of the building where the collective is located shall contain a fire -proof
safe or fire -proof filing cabinet and include a safety and security plan.
(t) Reserved.
(u) Reserved.
(v) If the collective operator is not the owner of the property where the collective is to
operate, the operator shall provide evidence that the property owner(s) consent to
the operation of a collective on the property.
(w) Collectives must obtain and maintain a valid city business license at all times as a
condition for receiving, renewing, and maintaining their regulatory safety permit.
(x) 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.
Section 6. Section 18-617.5 of Article XIII of Chapter 18 of the Santa Ana
Municipal Code is hereby amended to read in full as follows:
Sec. 18.617.5. - Audits.
Annual audits. No later than September 30w of every year, each collective 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/her designee(s).
Section 7. Section 40-1 of Article I of Chapter 40 of the Santa Ana Municipal
Code is hereby amended to read in full as follows:
Sec. 40-1. — Purpose and intent.
A. The purpose and intent of this article is to regulate commercial cannabis 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
commercial cannabis business operating in the City of Santa Ana to obtain and maintain
a Regulatory Safety Permit ("RSP"). Any commercial 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 cannabis 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 cannabis
activities are conducted. Any commercial 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 cannabis business activity. Any commercial cannabis
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
s
11 B-5
(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.
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 a 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 Commercial Cannabis
Operating Agreement with the City.
C, The Commercial Cannabis Operating Agreement shall be 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 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. A distinct Commercial Cannabis Operating Agreement shall be required
for each location of commercial cannabis business activity taking place at an approved
Commercial Cannabis Business.
Section 8. Section 40-2 of Article I of Chapter 40 of the Santa Ana Municipal
Code is hereby amended to read in full as follows:
Sec. 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 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 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 twenty-one (21) years of age or older.
3. "Adult -Use Cannabis Retailer Operating Agreement' or "Operating Agreement'
means the agreement entered into by and between the City and the commercial
cannabis 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 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
0
11 B-6
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.
5. "Authorized City of Santa Ana representative" means any police officer, city
employee, contractor 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.
6. "Business owner" means any of the following:
a. A person with an aggregate ownership interest of twenty (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.
7. "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.
8. "City" means the City of Santa Ana, a charter city and municipal corporation.
9. "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 Chapter.
Permitted commercial cannabis activities are listed in Land Use Table 40-5 of this
Chapter.
10. "Commercial cannabis business" means a business that obtains a Regulatory
Safety Permit and engages in the cultivation, possession, manufacture, processing,
storing, laboratory testing, labeling, distribution, delivery, or sale of adult -use cannabis,
7
11 B-7
medicinal cannabis or an adult -use cannabis or medicinal 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.
11. "Cultivation" means to plant, grow, harvest, dry, cure, grade or trim cannabis, as
defined by California Business and Professional Code Section 26001, as amended from
time to time.
12. "Customer" means a natural person twenty-one (21) years of age or over.
13. "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.
14. "Delivery employee" means an individual employed by a licensed retail cannabis
business who delivers cannabis goods from the permitted retail premises to a customer
at a physical address.
15. "Display" means cannabis goods that are stored in the licensed retail business
during the hours of operation.
16. "Distribution" means the procurement, sale, and transport of cannabis or cannabis
products between Licensees.
17. "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.
18. "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.
19. "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, as described more fully in Business and
Professions Code 26001(x), as amended from time to time.
20. "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.
e
11 B-8
21. "Manufacturer" means a Licensee that conducts the production, preparation,
propagation, or compounding of cannabis or cannabis products either directly or
indirectly or by extraction methods, or independently by means of chemical synthesis, or
by a combination of extraction and chemical synthesis at a fixed location that packages
or repackages cannabis or cannabis products or labels or relabels its container.
22. "Manufacturing" means all aspects of the extraction and/or infusion processes, .
including processing, preparing, holding, storing, packaging, or labeling of cannabis
products. Manufacturing also includes any processing, preparing, propagating, holding,
or storing of components and ingredients.
23. "Medicinal cannabis 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.
24. "Micro -Business" means a commercial cannabis business that cultivates cannabis
on an area less than ten thousand (10,000) square feet and acts as a licensed
distributor, Level 1 manufacturer, and retailer.
25. "Nursery" means a commercial cannabis Licensee that produces only clones,
immature plants, seeds, and other agricultural products used specifically for the
planting, propagation, and cultivation of cannabis.
26. "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.
27. "Outdoor cultivation" means the cultivation of cannabis outside a permanent
enclosed building. Outdoor cultivation is prohibited within the City of Santa Ana.
28. "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 twenty (20) percent or more.
29. '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.
30. '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.
W
11 B-9
31. "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.
32. "Primary Caregiver" has the same meaning as that term is defined in Section
11362.7 of the Health and Safety Code, as amended from time to time.
33. "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.
34. "Private security officer' has the same meaning as that term as defined in the
State of California Business and Professions Code section 7574.01.
35. "Purchase" means obtaining cannabis goods in exchange for consideration
36. "Purchaser" means a person who is engaged in a transaction with a Licensee for
purposes of obtaining cannabis goods.
37. "Qualified patient" has the same meaning as such term is defined in California
Health and Safety Code section 11362.5, as amended from time to time, and means 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.
38. "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 by way of 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.
39. "Retail business" means a premises where 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.
10
11 B-10
40. "Regulatory Safety Permit (RSP)" means a permit issued by the City pursuant to
this article to a commercial cannabis business.
41. "Sell," "sale," and "to sell" include any transaction whereby, for any consideration,
title to cannabis is transferred from one (1) 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. "State" means the State of California.
43. "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.
44. "Wholesale" means the sale of cannabis goods to a distributor for resale to one
(1) or more retail cannabis businesses.
Section 9. Section 40-5 of Article I of Chapter 40 of the Santa Ana Municipal
Code is hereby amended to read in full as follows:
Sec. 40-5. - Zoning compliance and regulatory safety permit requirements.
Commercial cannabis activities are expressly prohibited in all zones in the City of Santa
Ana; however, specific commercial cannabis businesses are allowed in the Industrial
zoning districts (M-1, M-2). The allowed current permit types 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 cannabis 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 cannabis 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.
11
11B-11
City of Santa Ana Municipal Code Table 40-5
_
Commercial
Cannabis
i
Regulatory
Business
Land Use
I
, M-1
M-2
i Safety
Activities Use
Classification
I Zone
Zone
Permit
Type
Required j
Cultivator/Nursery
Indoor only
IP
IP
(Yes
utdoor or mixed-
Cultivator/Nurser) ,T6
9ht
X
!X
NA
Indoor/Outdoor
Type 5 (Large
land
Cultivator/Nursery
Grows, as defined
amended by
X
ix
NA j
the State)
I
f
Manufacturing
Manufacturing
P
!P
Yes
Medicinal RetailT
Retail
(SAMC Chapterlp
P
Yes I
I18)
Retail
Adult -Use Retail
IP
P
Yes !
Adult -Use and/or'v
Testing Laboratory Medicinal 1'
P I P
Yes
Industrial
�P
Distribution Freight/Transport [P
JYes
P — only as part of i P — only as part
!a
jof a vertically -
vertically-
j !
linte ratedlco-
integrated/co- g I
.Cultivation/Retail/
located business ( located
business in full
Micro Business ,Manufacturing)
in full; conformance
Yes
Distribution
conformance with;
the requirements) eituirements of',
of this article and ith
s article and
Chapter
18.
CChapter 18.
12
11 B-12
Section 10. Section 40-8 of Article I of Chapter 40 of the Santa Ana Municipal
Code is hereby amended to read in full as follows:
Sec. 40-8. - General provisions for commercial cannabis activities in the City of Santa
Ana.
1. Regulatory Safety Permit Required.
a. Each commercial cannabis business shall obtain a Regulatory Safety Permit
(RSP) specific to the business activity or activities defined by the State pertaining
to that activity. The only allowed current activity types pursuant to this article are
for commercial cannabis retail sales and cultivation, distribution, manufacturing,
and testing laboratories/facilities. Co -location is permitted pursuant to Section 40-
9.3.1.
b. It shall be unlawful for any person, as defined by this ordinance, to engage
in, conduct or carry on, in or upon any premises within the City of Santa Ana any
commercial cannabis business without a RSP. A commercial cannabis 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 cannabis business for a period of five (5) years and shall be made available
by the commercial cannabis 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 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 twenty-four
(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.
13
11 B-13
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
activity.
f. Permits, licenses, and other local authorizations to conduct the commercial
cannabis business activity.
g. Security records, as outlined in the Operational Standards for All
Commercial Cannabis Business Activities.
h. Proof of building ownership or landlord letter acknowledging business type.
i. Proof of insurance.
3. Operational Standards for Ali Commercial Cannabis Business 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. 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. Commercial cannabis 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 twenty-four (24) hours of the system being available.
14
11 B-14
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 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 business shall provide adequate disabled access
parking per the requirements in the California Building Code.
i. The commercial cannabis 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 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, in any
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. The commercial cannabis business shall comply with all State regulations
regarding:
i. Testing, labeling and storage of all cannabis products.
H. 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.
m. 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 ($2,000,000.00),
with primary coverage, naming the City of Santa Ana as additional insured.
n. No free samples of any cannabis or cannabis product may be distributed at
any time.
15
11B-15
o. All agents, private security officers or other persons acting for or employed
by a collective shall display a laminated identification badge at least two (2)
inches by two (2) inches in size, issued by the City. The badge, at a minimum,
shall include the employee's first and last name, date of most recent Live Scan,
expiration date of Live Scan results after the one-year period, and a color photo
of the employee that shows the full front of the employee's face.
p. All private security officers acting for or employed by a commercial cannabis
business shall be licensed by the State and issued a business license from the
City of Santa Ana.
q. The commercial cannabis 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.
r. The commercial cannabis business shall ensure a licensed alarm company
operator or one (1) 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.
S. The commercial cannabis 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.
t. 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.
u. 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.
v. For any commercial cannabis 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.
w. 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
and Safety Code section 11590.
16
11 B-16
x. All signage for the commercial cannabis business must comply with Article
XI of Chapter 41 of the Santa Ana Municipal Code.
y. Inspections by an authorized City of Santa Ana representative may be
conducted anytime during the business's regular business hours.
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 (1) 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: 7:00 a.m. to 10:00 p.m. daily. No
licensed retail business shall be open to the public between the hours of 10:01
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:
I. 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.
Ill. A warning that patrons and/or employees 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.
17
11 B-17
g. No one under the age of twenty-one (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.
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.
q. A permitted commercial cannabis retail business shall have one hundred
eighty (180) days after permit issuance by the City of Santa Ana to operate. A
permitted commercial cannabis retail business that ceases to operate for more
than ninety (90) calendar days shall be deemed "abandoned" and the permit
shall be forfeited. A permitted commercial cannabis 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 and Building or his or her designee. For the purposes
of this section, 'operate" shall mean that the gross receipts fees charged for the
R-3
11 B-18
business exceed the fee per square foot calculations by the end of the one
hundred eighty (180) day period.
5. Additional Operational Standards for Commercial Cannabis Retail Delivery
Services.
a. Commercial cannabis retail deliveries may be made only from a 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 commercial cannabis retail business' Regulatory Safety Permit and
State license at all times while making deliveries.
c. All 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
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. A 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.
i. 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 commercial
cannabis retail business with the following information:
i. Name and address of the 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.
ES:]
11 B-19
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.
a. A licensed cannabis testing facility or laboratory business, its owners and
employees may not hold an interest in any other cannabis business except
another 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.
7. Additional Operational Standards for Commercial Cannabis Manufacturing
Facilities.
a. A licensed commercial cannabis manufacturing facility may conduct all
activities permitted by the State. This includes, but is not limited to: nen volatile
extractions, repackaging and relabeling, infusions and extractions.
b. Any manufacturing that will be conducted by the commercial cannabis
business shall be included on the application. No additional manufacturing
activity can be conducted without notifying the Executive Director of the Planning
and Building Agency or his or her designee, after which a determination will be
made if the new activity may commence with or without modification to the RSP
or if a new RSP is required.
c. At all times, the commercial cannabis manufacturing facility will be compliant
with all State regulations for cannabis manufacturing including Health and Safety
Code § 11362.775, as amended from time to time. Signage shall be posted
regarding the type(s) of chemicals being used at the manufacturing facility.
d. Cannabis manufacturing facilities shall not contain an exhibition or product
sales area or allow for retail distribution of products at that location unless the
PRE
11 B-20
facility is co -located with an approved commercial cannabis retail business with a
RSP.
e. Extraction equipment and extraction process utilizing hydrocarbon solvents
shall be located in a room or area dedicated to extraction.
f. All commercial cannabis manufacturing/processing facilities shall comply
with any and all applicable safety guidelines adopted by the Orange County Fire
Authority, the State of California, and/or the City of Santa Ana for cannabis plant
processing and extraction.
8. Additional Operational Standards for Indoor Commercial Cannabis Cultivation
Facilities.
a. There shall be no exterior evidence of cannabis cultivation from a public
right-of-way.
b. The Building Official may require additional specific standards to meet the
California Building Code and Fire Code, including but not limited to installation of
fire suppression sprinklers.
c. Compliance with Section 13149 of Water Code as enforced by the State
Water Resources Control Board is required.
d. All commercial cannabis cultivation facilities shall comply with any and all
applicable safety guidelines adopted by the Orange County Fire Authority, the
State of California, and/or the City of Santa Ana for cannabis carbon dioxide
enrichment systems.
e. Cannabis cultivation facilities shall not contain an exhibition or product sales
area or allow for retail distribution of products at that location unless the facility is
co -located with an approved commercial cannabis retail business with a RSP.
9. Additional Operational Standards for Commercial Cannabis Distribution Facilities.
a. Inspections by an authorized City of Santa Ana representative may be
conducted anytime during the business's regular business hours.
b. A distributor shall ensure that all cannabis goods stored in compliance with
all applicable State regulations to ensure conformance to any and all applicable
Track and Trace systems required by the State.
c. Employee breakrooms, eating areas, changing facilities, locker rooms and
bathrooms shall be completely separated from the storage areas.
Section 10. Sections 40-9 and 40-9.1 of Article I of Chapter 40 of the Santa Ana
Municipal Code are hereby amended to read in full as follows:
21
11 B-21
Sec. 40-9. - Commercial cannabis selection process.
2.
Commercial Cannabis — 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 (2) 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 for commercial cannabis retail businesses to objectively
award permits as described in the Regulatory Safety Permit Application.
Phase 1— Registration Application.
a. Following the adoption of this article, the Director of Planning and Building shall
prepare commercial cannabis business registration application forms and a
related administrative policy. Each commercial cannabis 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:
I. 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. Phase 1 application fee is paid.
v. A signed statement that the proposed location of the commercial cannabis
business on the application meets the zoning criteria established in this
22
11 B-22
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 zoning clearance
documenting compliance with the following:
The use is permitted;
All land use permits, if any, have been approved and all conditions of
approval have been met or are in good standing; and,
No zoning violations exist on the property.
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.
3.1 Commercial Cannabis — Registration Application and Regulatory Safety Permit
for Additional Commercial Cannabis Business Activities on the Same Premises (Co -
Location).
a. An existing commercial cannabis business with an RSP may co -locate
additional non -retail commercial cannabis business activities (cultivation,
distribution, and/or manufacturing) by applying for a new RSP for the additional
use(s). The new RSP must meet the all requirements of the Santa Ana
Municipal Code except that background checks (live scans) shall only be
required for any new staff as outlined in Section 40-8. A single RSP that lists
any and all approved cannabis business activity/activities may be renewed
annually thereafter.
b. New or pending RSP applicants wishing to co -locate additional non -retail
(cultivation, distribution, and/or manufacturing) uses may submit a new RSP for
any of the non -retail commercial cannabis business activities. The additional
RSP must meet the all requirements of the RSP except that background checks
(live scans) shall only be required for any new staff as outlined in Section 40-8.
A single RSP that lists any and all approved cannabis business activity/activities
may be renewed annually thereafter.
c. New commercial cannabis business applicants — co -location
New commercial cannabis retail applicants wishing to co -locate additional
non -retail (cultivation, distribution, and/or manufacturing) uses shall submit
separate RSPs for the proposed retail activity and another RSP for any of
the non -retail (cultivation, distribution, and/or manufacturing) commercial
cannabis business activities. Each RSP application will be evaluated
independently and must meet any applicable requirements of the RSP as
outlined in Sections 40-8 and 40-9, including, but not limited to, merit
evaluation and additional separation requirements for the retail RSP. A
24
11 B-23
single RSP that lists any and all approved cannabis business
activity/activities may be renewed annually thereafter.
2. New non -retail commercial cannabis applicants wishing to co -locate
additional non -retail (cultivation, distribution, and/or manufacturing) uses
may submit a single RSP for the proposed activity or activities. The RSP
application must meet any applicable requirements of the RSP as outlined
in Sections 40-8 and 40-9. A single RSP that lists any and all approved
cannabis business activity/activities may be renewed annually thereafter.
4. Regulatory Safety Permit Annual Renewal.
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 his or her 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 based on compliance with all applicable provisions of the Santa Ana
Municipal Code.
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 based on compliance with all
applicable provisions of the Santa Ana Municipal Code. 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 a hearing officer as provided for in Chapter 3 of
the Santa Ana Municipal Code. 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.
Sec. 40-9.1. - Non -retail commercial cannabis business (cultivation,
manufacturing, distribution, and testing facility/laboratory) selection process.
25
11 B-24
1. Non -Retail Commercial Cannabis Businesses — Registration Application (Phase
1) and Regulatory Safety Permit (Phase 2) Required.
a. Every Non -Retail Commercial Cannabis Business 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 or his or her designee _may accept Phase 1 and Phase 2 applications
for a Non -Retail Commercial Cannabis Business concurrently, and shall review
such applications and issue the Regulatory Safety Permit Application without
consideration of the merit based point system, insofar as the applications satisfy
all other requirements of this article and Chapter 18.
b. Applications for a Non -Retail Commercial Cannabis Business shall be
accepted during normal City Hall business hours and are not subject to the
thirty (30) day Phase 1 or Phase 2 application periods.
Section 11. Sections 40-10 of Article I of Chapter 40 of the Santa Ana Municipal
Code are hereby amended to read in full as follows:
Sec. 40-10. - Audits.
Annual audits. No later than September 30t' of every year, each licensed 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 12. Severability. 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.
N
N
010
11 B-25
ADOPTED this day of 2019.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM
Sonia R. Carvalho, City Attorney
By:
Lisa Storck
Assistant City Attorney
AYES: Councilmembers:
NOES: Cou
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, DAISY GOMEZ, 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 , 2019 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
27
11 B-26