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HomeMy WebLinkAbout65A - RPT - ACCEPT CERT OF SUFFICIENCY OF PETITION MEDICAL CANNABISREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 19, 2013 TITLE: ACCEPT CERTIFICATE OF SUFFICIENCY OF PETITION REGARDING THE MEDICAL CANNABIS RESTRICTION AND LIMITATION INITIATIVE PETITION AND OTHER RELATED ACTIONS CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 15f Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER 1. Accept the Certificate of Sufficiency issued by the County of Orange Registrar of Voters regarding the Medical Cannabis Restriction and Limitation Initiative. 2. Approve one of the following: a) Adopt the ordinance as proposed. b) Submit the initiative ordinance to the voters at the next General Election to be held on Tuesday, November 4, 2014 consistent with California Elections Code § 9215, or c) Direct staff to prepare a report as allowed by Election Code § 9212, and present such report at the March 18, 2013 City Council meeting. BACKGROUND The procedures for placing an initiative to enact an ordinance on the ballot are established in California Elections Code §9200-9226. On July 16, 2012, the City of Santa Ana received a voter initiative petition from the Committee to Support Medical Marijuana Ballot Initiative (Exhibit 1). As required by law, the City provided a ballot title and summary (Exhibit 2). The Proponents of the initiative published the Notice of Intent to Circulate, as required by law and had 180 days to circulate their petition for signatures (July 31, 2012 through January 28, 2013). 65A-1 Initiative Petition - Accept Certificate of Verification of Signatures February 19, 2013 Page 2 On January 24, 2013, the proponents of the initiative petition submitted the signed petitions. The Office of the Clerk of the Council conducted a prima facie review and raw count of the petition and determined that there were sufficient number of signatures to proceed, 16,948 tallied. On January 25, 2013, the petition was submitted to the County of Orange Registrar of Voters for signature verification. The Registrar of Voters began the process of verifying a three (3) percent random sample of the signatures contained on the petitions. Based on this sample, the Registrar determined that of the 510 signatures examined, 397 were valid (77.8%) and 113 were invalid (22.2%). The Registrar projected that 13,240 signatures would be valid, or over the 110% of the required signatures necessary for the petition to be valid and qualify for the 2014 General Municipal Election. Therefore, the Orange County Registrar of Voters has certified the petitions submitted on behalf of the Medical Cannabis Restriction and Limitation Initiative to be sufficient and qualified (Exhibit 3). At the time that the Notice of Intention was filed, the voter registration report on file with the California Secretary of State indicated 109,155 registered voters within the City of Santa Ana city limits. To qualify for a Special Election, California Election Code § 9214 requires that an initiative petition be signed by at least fifteen percent (15%) of the total number of eligible registered voters, or 16,374. To qualify for the next General Municipal Election, California Election Code § 9215 requires that an initiative petition be signed by at least ten percent (10%) of the total number of eligible registered voters, or 10,916. The Clerk of the Council is required to bring the Certificate of Sufficiency to the City Council for approval at its next regularly scheduled meeting. The City Council must make a determination of how it will proceed within ten (10) days of notice of the certification. California Elections Code § 9215, provides that upon receipt of the Certificate of Sufficiency, the City Council is required to take one of the following actions: 1) Adopt Ordinance as proposed. Per California Elections Code §9215 (a), the Council may adopt the ordinance, without alteration, at the regular meeting at which the certification of the petition is presented, or within 10 days after it is presented. 2) Set the Matter for Voter approval at the next General Municipal Election. The proposed ordinance, without alteration, may be submitted by the Council to the voters at the next General Municipal Election. The regulations required for the Ballot Arguments, Rebuttals, and impartial analysis will be forthcoming to the City Council in Spring, 2014. 3) Direct Staff to prepare a report on the effect of the initiative. City Council may request staff to prepare a report on the effects of the proposed initiative on various City services and existing regulations. Upon presentation of the report, not later than 30 days after the sufficiency certification has been received, the City Council must adopt the ordinance or order an election. 65A-2 Initiative Petition - Accept Certificate of Verification of Signatures February 19, 2013 Page 3 ANALYSIS The California Elections Code is the guideline for the City of Santa Ana's initiative process. Once the petition is certified as qualified, under Elections Code § 9211, the Clerk of the Council has a duty to bring the Certificate of Sufficiency to the City Council at its next regularly scheduled meeting. The City Council must make a determination of how to proceed within ten (10) days of notice of the certification. By agendizing this item on the February 19, 2013 with legal requirements to accept the Certificate of required to take one of the following actions: 1) adopt the ordinance as submitted, 2) submit the initiative to the voters, or 3) order staff to report on any or all of the following: City Council Agenda, the City complies Sufficiency. Additionally, City Council is a) The fiscal impact of the initiative b) The internal consistency between the initiative and the City's general and specific plans c) Its effect on land use d) Its impact on the City's ability to attract and retain business and employment e) Its impact on the use of vacant parcels f) Its impact on open space, traffic congestion, existing business districts, and g) Any other matter the City Council requests. FISCAL IMPACT The cost for the signature verification of the initiative by the Orange County Registrar of Voters is $1,734. The cost of including the initiative on the 2014 General Municipal Election is unknown at this time, however approximate cost for all election related services during a consolidated general election is approximately $150,000. Funds are available in Account No. 011-05015-62300. APPROVED AS TO FUNDS AND ACCOUNTS: -- V A A, Maria D. Huizar, Francisco Gutierrez G11 Clerk of the Council Executive Director Finance & Management Services Agency 65A-3 65A-4 July 13, 2012 Santa Ana City Clerk Maria Huizar, 2012 JUL 16 Pit ti: 19 h >>Ii CIT) l We hereby request that the Attorney for the City of Santa Ana timely prepare a title and summary for the attached Medical Cannabis Restriction and Limitation Initiative. Also attached are the "Notice of Intention to Circulate a Petition" and the "Proponent's Signed Statement Pursuant to California's Elections Code Section 9608." We authorize you to contact Kandice Hawes, the Principal Officer of the Committee to Support Medical Marijuana Ballot Initiative, 714-928-9129, when the title and summary are completed, and also please send a digital copy preferably in Microsoft Word to gr-yJal (_qa YO 65A-5 NOTICE OF INTENTION TO CIRCULATE PETITION Notice is hereby given by the persons whose names appear hereon of their intention to circulate the petition within the City of Santa Ana for the purpose of a special or regular election before the voters. A statement of the reasons of the proposed action as contemplated in the petition is as follows: The citizens and business owners of the City of Santa Ana recognize and respect the need for safe and reliable access to medical cannabis by medical cannabis patients as authorized by state law. The citizens of the City of Santa Ana wish to establish the legal operation of medical cannabis centers in the City and to designate the appropriate number and location of such Boilb* - Proponent I ? 64 u ? - (A,.4,r,, a,PL. ? {> uz r_ 65A-6 PROPONENT'S SIGNED STATEMENT PURSUANT TO CALIFORNIA ELECTION CODE SECTION 9608 We, Robyn Bollay and Guy Albert Lopez, acknowledge that it is a misdemeanor under State Law (Section 18650 of the California Elections Code) to knowingly or willingly allow the signatures on an initiative petition to be used for any purpose other then the qualification of the proposed measure for the ballot. certify that I will not knowingly or willingly allow the signatures for this initiative to be used for any purpose other than the qualification of the measure for the ballot. - = Guy Ibe L ^J i Signed this day of July, 2012 1 65A-7 `l Signed tJ day of July, -2012a_ THE SANTA ANA MEDICAL CANNABIS RESTRICTION AND LI IITATION ACT 201.7_ XI 15 [IN it: 19 The People of the City of Santa Ana do hereby enact and ordain as follows: CITY _ THE SANTA ANA MEDICAL CANNABIS RESTRICTION ANDr TMhATION-A&L SECTION 1 TITLE This initiative shall be known and may be cited as The Santa Ana Medical Cannabis Restriction and Limitation Act. SECTION 2 FINDINGS AND DECLARATIONS (a) In 1996 California voters approved Proposition 215, the "Compassionate Use Act of 1996" The people of the State of California declared that their purpose in enacting the measure was, "to ensure that seriously ill Californians have the right to obtain and use marijuana for medical purposes where that medical use is deemed appropriate and has been recommended by a physician who has determined that the person's health would benefit from the use of marijuana in the treatment of cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which marijuana provides relief." (b) Proposition 215 called for plans to implement the "safe and affordable distribution of marijuana to all patients in medical need of marijuana." (c) "Cannabis" is the scientific term for "marijuana" and shall be used in the language of this Ordinance and in all other medical contexts in the City of Santa Ana. (d) We strongly support the right of patients to use medical cannabis in accordance with the recommendation or approval of a licensed physician in good standing with the Medical Board of California. (e) We strongly oppose law enforcement resources being used to arrest, prosecute, and incarcerate qualified patients who use and provide medical cannabis in accordance with the Compassionate Use Act (California Health and Safety Code section 11362.5) and Senate Bill 420 (California Health and Safety Code sections 11362.7 et. seq.). (f) Access to medical cannabis should occur in a safe and orderly manner to protect patients and the community. The absence of controlled dispensing organizations results in patients being forced to obtain their medicine in the illicit market, or incurring hardship and expense of traveling great distances to obtain their medicine from outside their community. (g) In the absence of detailed State regulation, local governments must adopt policies and regulations to protect their communities and their resident patients' safe access to their medicine. 65A-8 (h) According to the California State Board of Equalization, medical cannabis organizations contribute between $50 and $100 million dollars in sales tax to the State of California annually, and provide employment to thousands of Californians. Local municipalities, including the City of Sacramento, have passed special business tax rates for medical cannabis organizations which provide revenue used to fund much needed services such as public safety, education, and health. (i) The People of the City of Santa Ana further find and declare that we enact this initiative pursuant to the powers reserved to the State of California, the City of Santa Ana, and its People under the Tenth Amendment to the United States Constitution, as well as under the general police power of local government derived from the State's sovereignty. 0) The intent of this Ordinance is to restrict and limit the number of medical cannabis collectives and cooperatives operating or which may operate in the City of Santa Ana, but not to prohibit them. (k) The intent of the two percent gross receipts tax on medical cannabis collectives and cooperatives is for the betterment of the community. (1) The subject of this Ordinance is to determine the appropriate location of medical cannabis collectives and cooperatives. The regulation of such collectives and cooperatives may be accomplished by State law, or by any other Santa Ana voter initiative. This Ordinance cannot be amended by the City Council except as specifically provided below. SECTION 3 AMENDMENTS TO SANTA ANA MUNICIPAL CODE CHAPTER 18 ARTICLE XHI The People of the City of Santa Ana do hereby enact and ordain that Chapter 18 Article XEI of the Santa Ana Municipal Code is hereby amended to read as follows (any underlined language is new and to be inserted, any struck-through language is existing and to be deleted): Sec 18,610, - Purposes and Directives Sec_ 18-611. -Definitions See 18-612 - Maximum Number of Collectives or Cooperatives See 18-613 - - Use Districts Sensitive Use Proximity Prohibitions of 2Sec 18-614 - Registration Required and Effect There See- 18-615- - Registration Application Process Sec 18-616 - Registration Application Form Manner, Timing, and Priority Order SPA 18-617, - Icc lance and Renewal o Regis ra ion Sec. 18-618. - Operating Standards 2 65A-9 See, 18.610- - Purposes and Directives The gurpose of this chal)ter is to implement California Hcalth and Safely Code scctions 11362.5 and 113- 30 known resil Quively as The Compassi o ajo Use ?ct of 1996 and th Medical M&diuana Program Act (effectave 2004)- and to impose limitations on the location facilities lawfully used for the culiivation, Drocessing, storage, and d' sing of medical cannabis, other than-the cultivation or possession y = indiyi dual qualifie ent or c at the Dat*ent or caregiver's home. The Compassionate Use Act is the State law movingState law penjilties for qualified patients and those 12atients'- ' givers, for possessim and cultivation of a pefsonal amount of medical cannabis for qit?ified patients- The Medical Marijuana Program Act is- the State I&u that allows qualified patients and caregjyprs to collectivetv ar oQue tively cultivate and distri ute-medical cannabis for and to each othm The purpose of this Arficle is also to enagt reasonable o-perating and zoning limitations and-Qjhcr resWctions aDplicable to the cultivation and distribution of mcoical cannabis based on lhe needs of the-City of Santa Ana and its residents, (a) This Articir, is intended, (1) To fulfill the Durl2ose of the Compassionate Use Apt to "implement a l2lan tg provide-for the safe. and affordable distfibufion of marijuana to all patients in medical necd o marijuana" in accord with the Medical MUjiuma Program Act's 12uEposp, to 12W-yika well"Ecgulate 12rogram for patients and caregivers ac?ng colleclively or cooperatively to cultivate and obtain medical cannabis, (2) TD he lp en Sure that seriou sly ill resident s of the Citx of Santa Ana c an obtain and use cauna ?is f or medical pur poses where tha t medical lise has been dee med aPPE OPriate a nd recom men ded or approve d by a Cglifom ia 12hysician w ho has deter mined th e patient's health chron wo ic pa uld beneht fro in, spasticity, g m thc uge of can laucoma, arthri naWq in the tre tis, mi- atment of ca other i ncer. ano llness fo rexia AI r which DS, canna To cr bis p eate rov*deg relief, a ministerial ad ministrative re gistration proce ss for a limit ed numb er of med ical canna bis c ollectives anA cool2eratives th at serve qualifi ed patients in the City of Santa Ana i n acc ordance with State law- Nothi ng in this Artic le puEports t o affirma fively C4) autho To pl fize otect activities that a citizens from t re otherwi Re ill he adverse imp egal under Fed acts of irrespo eral, State- o nsible or illic r local la it medic w. al cannab is (5) culfiv To pr ation ovid , distribution, e additional M handling, and g enue to the Cit oraM y of Santa Ana for the gener al 12ubli c welfare, inclu ding 3mithout limit f o[ public safety. education- an d health. 65A-1 0 (6) To impose those impo further limitations sed under the Med on medical ical Marijua cann na P ab ro is colle p-ram A ctives and co ct- and in no operatives way to affir beyond matively (2) under authorize a It shall be in State law ctivity prohibited b unlawful for the Ci cluding non-profit y State or F ty of Santa collectives eder Ana ad al to coo law. ban pro perativ viders of me es, from ope dical canna ration with bis awful in the City of San (o , ta Ana- or t No depart o place a moratoriu com agency ment m upon such off mission law cer fu or l o erp at eLplQ ion. yeee of the Ci ty of Santa Ana shall use to the y[:ijy fund extent that , , s or resources to as they are ;,,,.^neiste , sist in the e nt with Cali nforc forn e ia men of medica Federal cont l cannabis la rolled subs ws, includi tance laws ng but no limited to the Co mpanionate Use A ct of 1996 a nd t he Medic al Mar in as Progr m A ct unless such a (d) s ' Califo fundin ssistance is The City g to ee, iw, rnia medic g or r ven r%uired by Federa of San Ana sha arrest;, sy osec ut?, al cannabis laws, sharing and tha l or State sta ll not accep or seiz L nor particip t investiga#r tute t m per1 ate i ,,.q, c , re y y b n ite gulatio Federa ased o any tas s, a S n- or court d l funding th noffenses o k force that , pros ecute ecision at would b therwise l accepts s?,or seize e used to egal under Federai s property based on offense s otherwise legal under alifo mia m edical cannabis law s. Specific ally. these rohib it ions on ° cce taming funding a nd task forc e pa rti cipatio n Shall of a pply to he following p activit ies as not le gal under alif rni a medical ca nna bis laws (1) Distribution o sale of cannabis to minors; (2) Cultivation or sale of cannabis on public proper y: (3) Driving under the influx: (e) The City _must not require a medical cannabis collective or cooperative to obtain any wecial use or conditional use permit, This provision iS included to meet the requirements and concerns expressed by the ali£ornia Court of Appeal in Pack v Superior Court (2011)- City offzcialS will not be rewired to violate any Federal criminal statute. No sil a] site plan, variance, or any other permit or certificate other than thosespecifed in this Ordinance shall be rem sir d by thPp, (City and n n hall b issued for said collectives and cooperatives The City shall issue, as a ministerial dulL Notices of Completed Registration, Certificates of Occupant ; and gross receipts business licenses to qualified collectives and cooperatives in priority order as received and prod 65A-11 (a) "City" means the City of Santa Ana. "C anna bis" or "mariju ana" means m arijuana an d all parts of the plant cannabis, whether gro v?in or n o tth e seeds th ereof the resi n extracted f mm any par t of the last; and ev ery com pou nd m anuf acture sa derivative lt mixture, or prenaratton o f the plant, its seeds or resin. It incl udes , mari j^n , a i if used , , in foodstuff, I do o in clude the ma ture stalks of the pla nt. fiber pro duce d fro the stalks o il or cake mad e from the s eeds of he p lant,ny other comp ound, man ufac ture, salt, , derivativ e, mixtum a" reparation of the mature stalks (except r esin eex1r acte d ther efro m)- fiber or cakcor oil the steriliz ed seeds of th e plant are incallabl e ger mina tion. , , W "C ol lec tiv es" a nd "c oopera tives" when referring to me dic al c anna bis olganizations, both mea n as so cia tio ns of five or more qualified p atients, pers ons wi th i denti fication cards, ri rv car v ers of qu alifie d pat ients an d persons w ith identifi catio n c ard s, w ho associate, as an inco rpo rat ed or unin corpo rated as sociation, t o collectivel y or co ope rativ ely cultivate and dist r& te me dic al ca nnabi s for us e exclusive ly byLheir r egis tere d m em bers, in strict accordance with Ca lif orn ia Naalt h and Safety ode secti ons -11362.5 and 11 36 27 e tseg () "Director" means the Executive Director of the Planning and Building Ago"" his or her ?esi,gpee. (l "Medical cannabis identification card" and "identification card" mean a document issued by the State Department of Health Services pursuant to California Health and Safety Code sections 11362.7 et seg. that identifies a person authorized to engage in the medical use of cannabis and the person's designated primau caregiver, if any, or identifies a perso as a p it mai caregiver for a medical cannabis patient. (f) "Medical cannabis transfer" means: (1) The transfer of medical cannabis from a primary caregiver to that prima caregiver's qualified patient for such consideratinn as is sufficient to reimburse that rte •marv caregiver for the prim== caregiver's out-of-pocket expenses and or the rln .mare c r giver's services which shall not be subject to the City's gross receipts ax; or (2) Transfers-of medical cannabis among qualified patients or primary caregiv rs facilitated through an association ofthose qualified patients and prima , caregivers who are operating as a cooperative or collective which shall be subject to t le City's cross receipts tax_ (g)"Medical marijuana" and "medical cannabis" means cannabis that is grown used, and distributed pursuant to the provisions of California Health and Safety Code sections 11362.5 and 11362.7-11362,83. including all cannabis products, infusions, and concentrates containing the active ingredients of the cannabis plant. 65A-12 (h) "Notice of Completed Registration" means a written notice to an applicant for collective or cooperative registration issued by the director as a minesterial duty indicating that the application is complete an accurate. (i) "Overhead expenses" means all expenses incurred by the collective or cooperative including but of limited to accounting, advertising, cultivation materials and equipm n ddepr is io , insurance legal fees, mo gage-paymen , rent, repairs, supplies, taxes, utilities, volunteer compensation and reimbursements,. wages,salaties-payroll. fees paid to comply wilh the requirements of this Article, and any other expenses associated with the establishment and operation of the collective or cooperative. (6)- "Non-profit operation" means that the collective or cooperative does not distribute its net retained earning is o any individual (k) "Person with an identification card" means an individual who is a qualified patient and who has applied for and received a valid identification_card _pursuant to California Health and Safety Code sections 11362.7-11362 83_ ?l "Primary caregiver" shall have the same definition as California lkalth and Safety Code sections 11362.7 et secs,, and as may be amended, and which defines "primary caregiver" as an individual, designated by a q alp ifid patient or byeperson with an identification card who has son icy assumed responsibility for the housing. ealth, or safety of that patient or person, and may include a licensed clinic, a licensed health care f cility, a residential care facility, a hospic, or a home health agency as allowed by Califom a Health and Safety Code section 11362.7(d)(1-3). Cm) "Qualified patient" shall have the same definition as California Health and Safety Code section 11362.7 et seg., and as may bedded, and which states that a "qualified patient" means a person who is entitled to the protect. is of California Health and Safety Code section 11362 5, but who does not have a valid medical cannabis identification card (n) "Registration list" or "medical cannabis collective and cooperative registration INC means the list of registored medical cannabis collectives and cooperatives maintained by the Director. (Q) "School" means any public or private school with students in any grade K-12. Sec 18-612 - Maximum Number of Collectiyes or Cooperatives At least 1 medical cannabis collective or cooperative per 15,000 or fraction thereoo residents of the i of Santa Ana as d termined by the last Federal Census or as determined by the latest population estimate by the Department of Finance of the State of C lifornia whichever is higher, 65A-13 and in n o case less ss than shall be re 22 gistered by the Director if there are that many eligible , applican ts The City C ouncil incr ease but not decrease, the number of medical cannabis collect registered i n the City unde r the formula above which shall be the maximum number registere d unless raised b the City C gunciL. ,Sec 18-613 - Use Districts & Sensitive Use Proximity Prohibitions (a) Medical cannabis collectives and cooperatives arp, prohibited in all use districts in the 6ty except for the C 1,C4,C5, MI,E and C-SM use districts where they are neither prohibited nor authorized They are explicitly prohibited in the residential use districts7RE, RI, R2_ R3. R4, and R. (b) Medical cannabis collectives and cooperatives are prohibited within 600 feet of schools as defined in this Article- See, 18-614 - Registration Required and Effect Thereof (a)- 180 d ays af ter the adoption of this Ar ticle, it shall be prohibited for any person to operate a medi cal can nabis collective or coo; efative without a Notice of Compl eted Re gistration issued by the Direct or, (b) N othing in tbi s Articl e sh all he con strue d t o grant a ny regi stra nt any stat us or right than the right to be id entified on the City's regi stra tion list , and to rec eiv e a Not ice of Completed Regi stra a tion Certifi cate of Occ a upancy nd gro ss recei pts busi nes s li cense, a nd the right to asser t an , affirm ative d efense to a , dministraf iye, eiy il, and c riminal enf or cement of the City of Sant a An a M un icinal Code b ased on condu ct i n co mplianc e with this A rticle an d with California law, A d ?l regi stered collect ive or cooper ative , its membe rs, offi cers , d irectors, managers, and lg oye , ?es shal l of b e subje ct t o administ rati ve, .civil- o crimina l sa nc tions ba sed on the City of Sant _ a An , a Mun icipal Code s olely on the b asis of c onduct i n comp lian ce with th is Article and Sec. 18-615. -Registration Application Process (a) Each appli cation for medical can nabis collective and cooperative registration shall be nd d t b itt s dire t The Dire d b ctor on forms in the name of each of his or her devisin %li o, a m e applicant for regis c e a tration a y. nd shall be sig hed by each a g, _ pplicant or an authorized agent thereof. The application sh all includ e the followi ng information : A written request to be registered and placed on the medical cannabis collective and imperative registration list. 65A-14 (2) The name., mailing address. and telephone number of the applicant, _ (3) The cooperative or collective name and street address for which registration is sought, as well s anv other names under which the collective or cooperative may operate- (4) Copies of the collective or cooperative's entity-formation document such as_ without lino , its Articles of Incorpra io Articles of Association, LC Operati g or cetera. C5) A one page description of the collect' perative's nature and its plans for security and non-diversion of medical cannabis. (¢) The following information concerning each director, officer, or senior general manager of the collective or cooperative: (A) Complete legal name and any alias( (B) Date of birth: ( A copy _of?d government-issued hoto identification car or license: (E) A list of any felony convictions fora y?rimes of violence, larceny. or fraud within the =previous 10 years, which shal be gro nds for disqualification as shall failure to disclose. (7) Documentation that the collective or cooperative is located in a C1, C4, C5._Ml.p_or C- SM use district of the Cily where they are neither authorized nor prohibited, and that it is located at least 600 feet from any school as defined herein Medical cannabis collectives_ and co eratives are prohibited i all other use districts in the City including in residential use districts: RE, RI, R2- R3, R4, and CR. (8) Some form of dated documentary evidence that the collective or cooperative had begun op re a6ng at the location prior to December 31, 2011, including but not limited to, a lease a utility receipt, a State Boar of Equalization Seller's Permit, o a Federal Eml2lUer Ide tiAcatio Number. (9) A dated statement signed by an individual member authorized to represent and legally bin the collective or cooperative , certifying undcLnenalty of perky that the information provided in the registration form and any atta hment thereto is true, complete, and correct. 65A-15 (b) The Director shall no t refuse to acc ept oproeessing a registration application accom panied by the he required fee submitted per this Article. (e) The r equired fee req uired for applic ation and registration shall of exceed $500- Sec. 18-616 - Registration Application For Manner, Timing, and Priority Order The Director shall, within 15 calendar days of the date of adoption of this Article, create registration application form and instructions that strictly r quire only the information req d pursuant to Sec 18-615 of this Artier and shall begin accepting applications on a published date within-30 calendar days of the date of adoption of this Article. (b) At least seven calendar days prior t the date the Director will begin accept wnlications for registration, the Director shall publish, on the City's wehsite and once in a daily newspaper of general circulation the date, time, and manner on and in which collectives and imperatives must submit registration application forms and the required fee, and shall make publicly available those forms and instructions at City Hall and on the City's_website. (c,) Each collective and cooperative shall submit with its registration application a required fee pursuant to this Article. (d) As each collective and-cooperative submits its registration application and fee pursuant to this Article, the Director shall time-stamp the application with the date and time received. Seven calendar days after the date the Director begins accepting„ applications, the Director shall stop accepting, applications and shall that day establish a priori, list that identifies by name, address date and time the order in which applications were received. The order in which app i ation were received shall be the order in which the Director shall process them. A collective or coopera ' e ygnly be assigned olle place on the priority 'st,, and multiple submissions will result in immediate disqual_if cation from the registration process. (0 Within seven calendar days of establishing hepriority list, the Director shall publish the priori list on the City's website and once in a local daily newspaper of general circulation (#) The order set forth in the priority list shall remain in effect until the priority list has been exhausted, at which time, should the number of current valid registrations fall below that established by Sec 18-612 of this Article, a new date and time will be set for submission of additional applications following the process set forth herein but not more frequently than once every 180 days. (g) Following establishment of the ' on list, the Directors all begin processing as a ministerial duty the registration applications of collectives and cooperatives in the order established by the priority_list he Director shall continue processing applications until the maximum number of collective and cooperative registrations have been issued a Notice of 65A-16 Comp ted R PglStration and placed on the registration list. This processing shall consist of verification of the information required by See- 18-615 as complete and accurate. (h) No cooperative's or collective's rank on thr,priority list shall he assigned, transferred, or sold Any attempt to so assign transfe& or sell a priority ranking shall render the application null and void, Any Pn rson, w1leptive, or cooperative, atte 7 n tg o assign, transfer, or s- el a priority rankine and any person collective- or coonerative attempting to acouire a riori ranking 0 p Sec 18-617 - Issuance and Renewal of Registration (a) 1 p on t he rec eipt of an app lication for registration, the Director shall, as a ministerial ddy com plete proc essing and iss ue a Notice of Gomple cad registration and place the collective , or co opera tive on th e registration list within 30 calendar days, to be tolled if, an only if. reque sted by th e app licant to allo w pro sing time, unless- (1) The application is incomplete oror icurate;-or --42? The applicant has failed to provide information reasonably necessary for processing the registration application or has knowingly answered an application question or request for information falser; or (3 The application seeks registration for a medical cannabis collective or cooperative that is located within 600 ft of a school as herein defined, or is not located in a 61,CA,CS, M1 P or .-SM use district of the Cily, or that cannot provide evidence of operation in the Cry prior to December 31, 2011; or No California State Boar of Equalization Seller's Permit has been granted or the applicant collective or cooperative; or (5) An applicant is a licensed physician actively making patent recommendations. (b) If the Director fails to either issue a Notice of Completed Registration or deny the application for registration in writings a i g the reasons for denial, within 30 calendar days of receipt of the application, the registration shall be deemed come, the Notice of Completed Registration deemed i s i d, and the collective or cooperative deemed to be on the registration list, and thus deemed eligible for a Certificate of Occupancy and gross receipts business license asp, below (c) Once all available Notices of Completed Registration are issued or deemed issued, no applications will be accepted or considered until such time as additional Notices of Completed Rgistration are available. When additional Notices of Completed Registration become available, 10 65A-17 application will then be taken and will be considered as provided herein upon the mely ilia of a new application therefore, (dl R egistrat ion shall be valid for two yea rs and an app licati on fo r renewal mum filed not later t han 30 cal endar day s prior to he expira tion of thg re gistra tion, but no ear lier than 60 calend ar days pr ior to the expirat ion o the re gistration. A regist ratio n may be r enewed for additi ona l peri or bs of two years b y submitting an applicatio n to t he D irector. (C) If a registered cannabis collective or cooperativr, is forced to change locations unwillingioy, including without limit because o action by a landlord to recover possession, it will be given 180 calendar days to submit a new location for registration from the time it notifies the Director, during which time its registration is deemed valid and not available for subsequent application by other parties unless the registrant surrenders the registration in writing, or fails to submit an application for a new location wit in the allotted 180 calendar days. (l Once issued a Notice of Completed lgistration and placed on the registration ration list, the collective or cooperative shall be eligible for a Certificate of Occupancy, which shall be issued as a ministerial duty within 30 calendar days (to be tolled it and only if, requested by he ap lic n to allow time for inspection or for work required per inspections during which time the standard building and fire inspections shall be completed or deemed completed and applicants allowed time as thty request to complete y work required per inspection- The Certificate of Occupancy shall issue without regard to any parking requirements,w-ich shall be deemed met or waived. If the Certificate of Occupancy is not issued, or denied in a writing staling the grounds therefore, in this time it sell be deemed issued. (g) Once issued its Certificate of Occupancy, a cooperative or collective shall be eligible for a gross receipts business license which shall be issued as a ministerial duty immediately upon application. Sec. 18-618_ - Operating Standards Violation of any of the follow ing st andards that rises to the lev el of a_persiste nt public nuisance in fact that c annot b e abated throug h feasible co nditions of ope ration shall be grounds for abatement pu rsuant to Chapf er 17 o f this Code. (a) Collectives and cooperatives shall meet all the qperating standards for the dispensing of medical cannabis required pursuant to California Health and Safety Code sections 11362.5 and 11362.7 et seq., by this Article, and by the 2008 Attorney Goneral's Guidelines for the Security and Non-Diversion of Marijuana Grown for Medical Use. (b) Collectives and cooperatives shall be operated only as collectives or cooperatives with a membership consisting exclusively of qualified patients, persons with ID cards, and primary 11 65A-18 r,aregivers, which membership status shall be affirmatively verified. (c) Collectives and coop eratives shall exghange_ sell , transfe r. and d istribute only cannabis f t red or lti t d f C d i th St t lif i d th ft the State t h t l , manu ac u , cu va e before arriving at the colle e o processe n e a ctive or cooperative, and t a orn a hat has an a been c e as no ultivated only by, and provided only to, its verified members in a closed-circuit of produ ction an d consumption, (d) Medical cannabis collectives and cooperatives shall possess only a reasonable quantity of dried cannabis and cannabis plants to meet the personal medical needs of their members. Medical cannabis collectives and cooperatives shall not accumulate more cannabis than is necessary to meet the personal medical needs of their members. W No medical cannabis shall be _smo ked, ingested, or otherwise consumed in the public right-of-way within 50 feet of a collective or cooperativ e. Any person violating this provision shall be deemed guilty of an infraction an d upon the con viction thereof shall be punished by a fine of $100. (#) The coll ective or coo pera tive sha ll not hold or ma intain a li cense from the State f A l h l B C l ll l l b h i Department o co o e vera ge ontro t o se a coh o lct ev erages, or o at perate a bus ness t sells alcoholic b everages. Nor shal l alcohol ic beverage s be con sumed on the premises or in the public rig-ht-of-w ay within 50 f eet o f a medi cal cannabi s collecti ve or c oop erative. (gl In order to protect confidentiality. the collective or cooperative may maintain records of all Qualified patients with a valid identification card and primary caregivers with a valid identification -card-using only the identification card number issued by the State or County pursuant to California Health and Safety Code section 11362.7 et sue. (h) The collective or cooperative shall provide and maintain adequate secmrlty Qn the premises, including ligWing and alarms reasonably designed to ensure the safety of persons and tQprotect the premises from theft No cultivation of medical cannabis at the location shall be visible with the naked eye from any public or other private property, nor shall cultivated or dried medical cannabis be visible, from the exterior of the medical cannabis collective or cooperative, (i) It shall be unlawful for any collce 've or cooperative to employ any person who is not at least 18 years 6) It shall be unlawful for any collective or cooperative to allow any person who is not at least 18 years of age on the premises during hours of o er 'on, unless that person is a qualified patient, or a primary caregiver, and is accompanied by their parent or guardian (k) A sign shall be posted inside collcet._ Ives and cooperatives, stating ?substantially as fw ow "The diversion of cannabis for non-medical purposes is a violation of State law Loitering at the location of a medical cannabis dispensing collective for an illegal_puepase is prohibited by 12 65A-19 California Pe nal Code section 647( h.). No medical ca nnabis sh all be smo ked, ingeste d or otherwise con sumed in the public ri ght-of--way within fifty (50) feet of a medical can nabis ll i " i d i 1 co ect ve or cooperative Such sign . shall be pr nte n 1 4-point f ont or large r upon 8 h b y 11 paper and pos ted at some conspicuous part of such site. U e ..its a ail f4 d° than F der„ " 1 laws r FOhibitofi th trib ti.,n A sale a d di g O s u n health, s aW, and welfiwe of the Feside ms and businesses within the > (nrd No NS 2751: § 2 11 c 07) ( ) A m di l ij di i & ilit l 4i h h & d bil h a e ea mar uana s pensary S ft e y eF 8eft ffil, w et er- fe er- mo e, w e edioal mujjttafia is ma ervi -, the fell de n ailable to ` iStFibU ted by e plied le a one (1) a ,.F (1) M n n te th in l Aifi d ti t- e a s g e qu e e pa en , !I II ' ulated b (b) Unless ot her-,zse re This cha te r F li bl ! di l < g y p ramijuana nsal -shall fiet in l d th 9 app ra e- Aw;a ine sa f ll i y e ti e! e o ow ng uses; Safety Cede; (4) A z.-snide„ties a eF sili4y &r- the elder y lieeased p *+ C ranres hapter- 3.2 f tl, relifemiEtHealth e"d ens . rode. D:visien 2 of the Califemia H lth nd S f t C d t th 4 h h i d ea a a e y e e, e e ex efA t at sue use sk e y Cede wer-Atien 11962.5. ot seq. 13 65A-20 a, . (d) AJI tems use d in this " " " lifi d > qua e > " " " " d i " r- sh ll b d fi d i G l if i 14 > C d nd S f t fifi > fi c 11362 pF et o , a e as e ne n a em a e e se a a e y e n . seq 7 (n.-a No NS 2754 c 2 11 c 07) > mmag&, medioal mar?ti ana disp ensary or- to pai4ieipeAe a s an > 68ftt ffiSter-, agent OF > > NS (d N - 2758 11 5 07) 2 . e. § , , -. SECTION 4 AMENDMENTS TO SANTA ANA MUNICIPAL CODE SECTION 41-121 The People of the City of Santa Ana do hereby enact and ordain that Section 41-121 of the Santa Ana Municipal Code is hereby repealed and deleted in its entirety (all existing language to be deleted is struck-through as follows): mo €911AV?? de wvailable to, distAbt "d by, o f supplied to one ( 1) of faeFe ef *-@ 1) Mor th i l lifi d ti 4 e an a s ng e qua e pa e ,- > d shall not :.., l th All e • i u o e o ng tis w s 14 65A-21 l 1 A li i d t t f Division 7 of the Cal Ch t - if .n:.. He lth and ) a n e vv Safety Cede 2 A h l h f 1. h ilit d o ap er ter- 2 ef Divisief t to Cha r t 2 of the Califefflia ) ea t safe h ReaM and Se" e e y f ense p pu suan Gaiifefaia Heal4t and Safe ty f f G Di i i i lif H dga f t`Cede t. +., x4e t lth that s o v s on o a em a ea aft a fti i i ^ e making eu vm ng, us ng, r v u. r ? V medir.al f cc ff cc (e) All teffna used in this f f fa " patiewideatifirmfiefi » a and a f ver-," shall be as defined iq Gafifefnift __a___4th _ and '____ Saf tx orsion x 11362.5 1_° Safety Cede ocvc vz se f a 11 5 9;) SECTION 5 AMENDMENTS TO SANTA ANA MUNICIPAL CODE SECTION 41-144 The People of the City of Santa Ana do hereby enact and ordain that Section 41-144 of the Santa Ana Municipal Code is hereby amended to read as follows (any underlined language is new and to be inserted, any struck-through language is existing and to be deleted): Sec. 41-144. - Retail and service uses. Retail and service uses include any use of property for the purpose of offering merchandise or services to the public for compensation, and include banks, savings and loan associations, and similar financial institutions, but do not include the following: (a) Sheet metal shops, body-fender works, automobile paint shops, repair garages, and any activity which includes the processing, treatment, manufacturing, assembling or compounding of 15 65A-22 any product, other than that which is clearly and traditionally incidental and essential to a particular retail activity. (e) A hookah parlor as defined in section 41-73.5 of this Code. (d)Any use which is more specifically identified as a permitted use or as a use which may be permitted subject to the issuance of a conditional use permit in one or more use districts pursuant to Article lII of this chapter. SECTION 6 AMENDMENTS TO SANTA ANA MUNICIPAL CODE SECTION 21-119 The People of the City of Santa Ana do hereby enact and ordain that Section 21-119 of the Santa Ana Municipal Code is hereby amended to read as follows (any underlined language is new and to be inserted, any struck-through language is existing and to be deleted): Sec. 21-119. - Gross receipts tax rates. Gross receipts tax rates for the different classifications are as follows: (1) Classification "A"-All businesses for which no tax is specified elsewhere in this Article, including, but not limited to: retail businesses and sales at retail, services (including real estate brokers, real estate developers, insurance brokers, life and disability insurance analysts, stock and bond brokers, commission agents, brokers or merchants, building and loans, and recreational services), hotels, motels, theaters, and food establishments: For each separate place of business licensed, a basic rate of $60.00, plus: $0.50 per $1,000.00 to .....$100,000.00 0.30 per 1,000.00 to .....500,000.00 0.20 per 1,000.00 to .....1,000,000.00 0.15 per 1,000.00 over .....1,000,000.00 (2) Classification "B"-Manufacturing, processing, wholesale businesses and sales at wholesale, sales of gasoline and motor fuels, and telephone services: For each separate place of business licensed, a basic rate of $60.00, plus: $0.30 per $1,000.00 to .....$100,000.00 0.25 per 1,000.00 to .....3 00,000.00 0.20 per 1,000.00 to .....600,000.00 0.15 per 1,000.00 to .....1,000,000.00 16 65A-23 0.10 per 1,000.00 over .....1,000,000.00 (3) Classification "C"-Rental of commercial real estate: For the first property location licensed, a basic rate of $60.00, plus: $0.50 per $1,000.00 to .....$100,000.00 0.30 per 1,000.00 to .....$500,000.00 0.20 per 1,000.00 to .....1,000,000.00 0.15 per 1,000.00 over .....1,000,000.00 For each additional property location licensed, a basic rate of $10.00, plus: $0.50 per $1,000.00 to .....$100,000.00 0.30 per 1,000.00 to .....$500,000.00 0.20 per 1,000.00 to .....1,000,000.00 0.15 per 1,000.00 over .....1,000,000.00 (4) Classification "D" Sunk yards, automobile wrecking yards and salvage yards; junk dealers, junk collectors, automobile dismantlers, junk salvagers, and junk recyclers: For each separate place of business licensed, a basic rate of $100.00, plus: $0.50 per $1,000.00 to.....$100,000.00 0.30 per 1,000.00 to .....500,000.00 0.20 per 1,000.00 to .....1,000,000.00 0.15 per 1,000.00 over .....1,000,000.00 (5) Classification "F"-cannabis businesses: (a) Every person eng aged i n a cannabis busin ess not otherwise specifi cally taxed by other busine ss tax p rov isions of this Chanter, sh all pay a business tax of $24.00 for each $1,000 , 00 of grQs s recei pts or fractional p art thereof. (b) For the purpose of this Section, "cannabis business" means businesa activity including; but not limited to, planting, cultivation; harvesting, tra porting, manufacturi= compounding- onv rfing, processing preparing, storing, packaging, wholesale, and/or retail sales of marijuana' any part of the plant Cannabis sativa L. or its &dvatives. It specifically includes medical cannabis transfers by collectives and cooperatives- and it sg_ecifica14 excludes medical cannabis transfers by primary caregivers to their qualified patients as defined in Chapter 18 Article XIII of this Coe_ ?cl T his is t he on ly City of Sa nt a A n tax a pplicable to medi cal cannabis coll ectives and co op era tives, and it a ppli es only prospe ctively, The City shall make no cl aim, cu rrent. re tro act ive,_or prospe ctive f or p ayment by any medical c annabis collectiv e or co operative 17 65A-24 L of any other City tax except for the City portion of any Sales Tax collected by the California State Board Qf hqualization. (d) This tax shall be payable in quarterly installment payments by any organization falling under this Classification "F." SECTION 7 INITIATIVE NOT TO BE AMENDED OTHER THAN BY VOTERS This initiative ordinance and every part thereof can only be amended by the Voters of the City of Santa Ana and cannot be amended by the Santa Ana City Council except as specifically provided above. SECTION 8 SPECIAL OR REGULAR ELECTION The Voters of the City of Santa Ana hereby expressly request that this initiative ordinance be set for a special or regular election at the earliest time allowable by law. SECTION 9 SEVERABILITY Should any provision of this initiative ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, voidable, or invalid, that determination shall have no effect on any other provision, or the application of this initiative ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. By approving this ordinance the voters intend that each section and sub-section be explictly severable, part-by-part, phrase-by-phrase, and word-by-word, thus that the minimum language held invalid be severed. 18 65A-25 65A-26 Title: Medical Cannabis Restriction and Limitation Initiative. Summary: The Medical Cannabis Restriction and Limitation Initiative ("proposed Ordinance") seeks to delete the City of Santa Ana's prohibition of medical marijuana dispensaries, including collectives and cooperatives, as defined by the City, contained in Chapters 18 (Health and Safety) and 41 (Zoning) of the Santa Ana Municipal Code, and replace it with a ministerial administrative registration process, zoning restrictions, and a business tax requirement for medical cannabis collectives and cooperatives ("cooperatives and collectives"), as defined by the proposed Ordinance. The law's stated intentions include, but are not limited to, fulfilling the purposes of State law regarding medical marijuana, including the Compassionate Use Act and the Medical Marijuana Program Act ("MMP"), providing additional revenue for the City, and imposing further limitations on collectives and cooperatives beyond those imposed under the MMP. Specifically, with regard to zoning restrictions, the proposed Ordinance: (1) Prohibits collectives and cooperatives in all zones except the Cl, C4, C5, Ml, P & C-SM zones; (2) Prohibits collectives and cooperatives in all residential zones; and (3) Prohibits collectives and cooperatives within 600 feet of public and private schools, K-12`h grade. The proposed Ordinance also requires all collectives and cooperatives to apply for and obtain a Notice of Completed Registration ("Notice"), which is issued by the City's Director of Planning ("Director"), and is required of all collectives and cooperatives that meet specified requirements and want to continue to operate within the City. The proposed Ordinance's registration process is a ministerial duty upon the Director, where collectives or cooperatives submit an application within specified timelines and pay the required fees. They are subsequently issued a Notice and, within thirty (30) days of that, a Certificate of Occupancy for operation. In addition, the proposed Ordinance establishes a formula for the number of collectives and cooperatives that shall be registered with the City. The proposed Ordinance provides that at least one cannabis collective or cooperative per 15,000 residents, as determined by the last Federal Census or as determined by the latest population estimate by the Department of Finance of the State of California, whichever is higher, and in no case less than 22, shall be registered by the Director if there are that many eligible applicants. Once operating, the cannabis collective or cooperative is required to meet operating standards, which includes but is not limited to, adequate security (i.e., lighting and alarm requirements), prohibition on possessing or maintaining a license from the State Department of Alcohol Beverage Control, signage and all requirements set out by the 2008 Attorney General Guidelines for the Security and Non-diversion of Marijuana Grown for Medical Use. Finally, the proposed Ordinance makes a "cannabis business," as defined, a classification "F", which requires those entities to pay business taxes in the amount of $20.00 for each $1,000.00 of gross receipts. A cannabis business is defined to include medical cannabis transfers by collectives or cooperatives. This tax is prospective only. 65A-27 65A-28 NEAL KELLEY Registrar of Voters Mailing Address: P.O. Box 11298 Santa Ana, California 92711 February 4, 2013 Ms. Maria Huizar City Cleric City of Santa Ana 20 Civic Center Plaza Santa Ana, Ca 92701 Dear Ms. Huizar: REGISTRAR OF VOTERS 1300 South Grand Avenue, Bldg. C Santa Ana, California 92705 (714) 567-7600 TDD (714) 567-7606 . FAX (714) 567-7627 www.ocvote.com Enclosed is the Certificate as to Verification of Signatures for the petition entitled "Medical Cannabis Restriction and Limitation Initiative". The Registrar of Voters verified 510 signatures. The cost per signature verified is $3.40 for a total cost of $1,734.00. An invoice is enclosed. If you have any questions, please feel free to contact me at 714-567-7606. Sincerely, 4, gyp*-,- y Cotton Candidate and Voter Services Manager kc Enclosures 65A-29 CERTIFICATE AS TO VERIFICATION OF SIGNATURES ON PETITION State of California) )ss. County of Orange I, Neal Kelley, Registrar of Voters of the County of Orange, do hereby certify that I am the county officer having charge of the registration of voters in the County of Orange, and I have examined, or caused to be examined, the petition submitted to the City of Santa Ana entitled "Medical Cannabis Restriction and Limitation Initiative". I further certify that from said examination .I have determined the following facts regarding this document: Number of signatures filed: 17,009 Number of signatures required: 10,916 Number of signatures verified: 510 Number of signatures found valid: 397 Number of signatures found invalid: 113 Invalid because of Duplicate: 0 WITNESS my hand and Official Seal this 4tn day of February, 2013. NEAL KEL Registrar oters Orange County 65A-30 RANDOM SAMPLING VERIFICATION OF SIGNATURES The Medical Cannabis Restriction and Limitation Initiative V = Number of Valid Signatures A = Value of Each Signature B = Extra Value of Each Duplicate Signature C = B x the Number of Duplicates 1. Calculate: Raw Count (17,009) x Suff icient in Sample (397) = V (13,240.339); rounded to 13,240 Sample (510) 2. Divide: Raw Count (17,009) = A (33.35098) Sample (510) 3. Multiply: A (33.35098) x A-1 (32.35098) = B (1078.9368) 4. Multiply: B (1,078.9368) x Number of Duplicates (0) = C (0) 5. Subtract: V (13,240) - C (0) = Corrected Value (13,240) The petition is considered qualified, without further verification, if the random sampling determines that the number of valid signatures is over 110% of the number of signatures required. The number of signatures required (10% 10,916 for next regularly scheduled election) 110% of number of signatures required 12,008 Random sampling 13,240 The number of signatures required (15% 16,373 for Special Election) 110% of number of signatures required: 18,011 Random sampling 13,240 65A-31 I Petition Result Breakdown Signatures Required 0 Raw Count 17,009 Sample Size 510 Percent of Percent of Sigs Checked 810 Sigs Checked Sample Slze Sigs Not Checked 0 0.0% S Igs Valid 397 77.8% 77.8% Sigs Invalid 123 22.2% 22.2% Duplicated 0 0.0% 0.0 % Non-duplicate Invalids 113 22.0% 22.2% Approved Approved 397 77.8 Y. NotReg Not Registered 71 13.9% OutOfDlst Out of District 6 1.2% RegLate Registered Late 4 0.8% RegDiffAdd Registered at a Different Address 25 4.9 SigNoMatch Signatures Don't Match 7 1.4% PCMR012 - Petitton Resu t Breakdown Printed: 21412013 9:33:50AM Page 1 of 1 65A-32