Loading...
HomeMy WebLinkAbout19D - ACCEPT VERIFICATION VOTER INITIATIVEiA ry',I REQUEST • • COUNCIL ACTION CITY ✓w! C { 0 � COUNCIL DATE: �I uPK APRIL 15, 2014 TITLE: ACCEPT CERTIFICATE OF VERIFICATION AND INSUFFICIENCY - VOTER INITIATIVE MEASURE: AUTHORIZING REGULATED OPERATION OF MEDICAL MARIJUANA FACILITIES CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 18t Reading ❑ Ordinance on 2 "d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Accept the Certificate of Verification and Insufficiency issued by the County of Orange Registrar of Voters regarding the Medical Marijuana Control Act Initiative. 2. Approve reimbursement to the County of Orange, Registrar of Voters Office in the amount of $1,700 for verifying signatures on the petition. BACKGROUND The procedures for placing an initiative to enact an ordinance on the ballot are established in California Elections Code §9200 -9226 and is the right of the voters to bring upon for consideration. On January 2, 2014, the City of Santa Ana, Clerk of the Council, received a voter initiative petition by the Proponents to Support Medical Marijuana Control Act (Exhibit 1). As required by the California Elections Code, the City Attorney's Office provided a title and summary (Exhibit 2). The Proponents of the initiative published the Notice of Intent to Circulate and were legally permitted to circulate the petition between January 8, 2014 and July 1, 2014. The petition required 8,738 valid signatures to qualify for the 2014 General Election ballot. At the time the Notice of Intention was filed, the voter registration report on file with the California Secretary of State revealed 87,337 registered voters within Santa Ana. California Elections Code § 9215 requires that an initiative petition be signed by at least ten percent (10 %) of the total number of eligible registered voters to qualify for the next General Municipal Election. 19D -1 Medical Marijuana Control Act - Petition April 15, 2014 Page 2 On March 17, 2014, the proponents of the initiative petition filed their signed petitions. The Clerk of the Council Office conducted a prima facie review and raw count of the petition and determined that a sufficient number of signatures to proceed, 9,706 total tally. On March 18, 2014, the petition was delivered to the County of Orange Registrar of Voters Office for signature verification. The Orange County Registrar of Voters Office used the random sample method of verifying 500 signatures on the petition, permissible and consistent with the California Elections Code. Based on this sample, the Registrar determined that of the 500 signatures examined, 262 were valid (52.4 %) and 238 were invalid (47.6°/x). Therefore, the Orange County Registrar of Voters Office determined that an insufficient number of valid signatures were obtained; thus disqualifying the petition for the 2014 General Municipal Election. The Certificate of Verification is attached as Exhibit 3. ANALYSIS The initiative process in the City of Santa Ana is conducted in accordance with the California Elections Code. Pursuant to Elections Code Sections 9114 and 9211, the Clerk of the Council is submitting the Certificate of Verification to the City Council for approval; no further action is required. FISCAL IMPACT The cost for the signature verification of the initiative by the Orange County Registrar of Voters Office is $1,700; funds are available in Account No. 011 - 05015 - 62300, Maria D. Huizar, Clerk of the Council APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez Executive Director Finance & Mgmt Services Agency, Attachments: Exhibit 1 — Proposed Initiative Exhibit 2 — Title and Summary Exhibit 3 — Certificate of Verification 19D-2 EXHIBIT 1 19D-3 INI'T'IATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS Committee of proponents, who are registered voters of the City of Santa Ana, sponsoring the petition; Cheyenne Kutil Dennis Kutil TEXT OF THE PROPOSED MEASURE: MEDICAL MARIJUANA CONTROL ACT: Pursuant to, and consistent with California taw concerning medical marijuana, the City of Santa Ana shall enact an ordinance amending in its entirety Article XIII of Chapter 18 of the Santa Ana Municipal Code, in order to impose strict regulations on medical marijuana collectives to protect the health, safety, and welfare of the community, WHEREAS, the Compassionate Use Act ( "CUA "), adopted by California voters in 1996, and the Medical Marijuana Program Act ( "MMPA "), enacted by the State Legislature in 2003, decriminalized the cultivation and use of marijuana by seriously ill individuals upon a physician's recommendation and provided California's qualified patients and their primary caregivers with specified immunities under state law, thereby helping to ensure that qualified patients and their primary caregivers, who possess and use marijuana for medical purposes, are not subject to criminal prosecution or sanction; WHEREAS, the Santa Ana Police Department ( "SAPD ") has reported that at one time there were over sixty (60) marijuana dispensaries in the City of Santa Ana and that as the number of marijuana, dispensaries and commercial growing operations proliferated without sufficient legal oversight, the City and its neighborhoods have experienced negative secondary effects, including an increase in crime at certain locations associated with unregulated marijuana collectives; WHEREAS, there presently are no ordinances in the City of Santa Ana specifically regulating or monitoring the location, zoning standards, or other aspects of the locations and facilities where medical marijuana will be dispensed to eligible persons under state law; WHEREAS, medical marijuana facilities must operate with reasonable regulation, to ensure that those who are seriously ill residents of the City benefit from the palliative effects of medical marijuana have access they are provided under state law; WHEREAS, by implementing a fair and reasonable registration process for medical marijuana collectives, the City will be able to maintain order while avoiding undue burdens on its already strained financial resources; WHEREAS, the City has a substantial and clear interest in ensuring that medical marijuana is distributed in an orderly manner, and in protecting the public health, safety and welfare of its residents, its businesses, the neighborhoods in which medical marijuana collectives operate, while ensuring compassionate access by seriously ill residents to medical marijuana in accordance with the CUA and the MMPA; 19D-4 WHEREAS, the regulations in this initiative do not interfere with a qualified patient's right to use medical marijuana as authorized under California law, nor do they criminalize the possession or cultivation of medical marijuana by specifically defined classifications of persons, as authorized under California law; WHEREAS, medical marijuana collectives shall comply with all provisions of the Santa Ana Municipal Code ( "Code "), California law, and all other applicable local laws; nothing in this initiative purports to permit activities that are otherwise illegal under state or local law; WHEREAS, this initiative is not intended to conflict with federal or state law, nor is it intended to respond to or invite litigation over any unresolved legal questions posed by the California Attorney General or by case law regarding the scope and application of state law; it is intended that this initiative be interpreted to be compatible with federal and state enactments and in furtherance of the public purposes that those enactments encompass; NOW, THEREFORE, THE PEOPLE OF THE CITY OF SANTA ANA DO ORDAIN AS FOLLOWS: SECTION 1. Article X111 of Chapter 18, Part I1 of the Santa Ana Municipal Code is amended in its entirety to read: ARTICLE XIII MEDICAL MARIJUANA SEC. 18 -610. PURPOSES AND INTEN'T'. It is the purpose and intent of this Article to limit the maxiinum number and concentration of medical marijuana collectives in the City, to provide needed tax revenue to the City, and to regulate the operation of medical marijuana collectives in order to ensure the health, safety and welfare of the residents of the City of Santa Ana. The regulations in this Article, in compliance with the Compassionate Use Act, the Medical Marijuana Program Act, and the California Health and Safety Code do not interfere with a qualified patient's right to use medical marijuana as authorized Linder California law, nor do they criminalize the possession or cultivation of medical marijuana by specifically defined classifications of persons, as authorized under California law. Medical marijuana collectives shall comply with all provisions of the Santa Ana Municipal Code ( "Code "), California law, and all other applicable laws. Nothing in this Article purports to permit activities that are otherwise illegal under federal, state or local law. This Article is not intended to conflict with federal or state law, nor is this Article intended to respond to or invite litigation over any unresolved legal questions posed by the California Attorney General or by case law regarding the scope and application of state law. It is intended that this Article be interpreted to be compatible with federal and state enactments and in furtherance of the public purposes that those enactments encompass. 19D -5 SEC. 18 -611. DEFINITIONS A. The following phrases and words, when used in this section, shall be construed as defined. below. Words and phrases not defined here shall be. construed as defined in Santa Aria municipal code or state law. "Building" means any structure having a roof supported by columns or walls, for the housing, shelter or enclosure of persons, animals, chattels, or property of any Kind. "Live Scan" means a system for inkless electronic fingerprinting and the automated background check developed by the California Department of Justice ( "DOJ") which involves digitizing fingerprints and electronically transmitting the fingerprint 'image data along with personal descriptor 'information to computers at the DOJ for completion of a criminal record check; or such other comparable inkless electronic fingerprinting and automated background check process as determined by the City Council. "Live Scan appl'icat'ion" means a form developed by the City Clerk to request Live Scan services and to contain information relevant to the Live Scan process. "Location" means any parcel of land, whether vacant or occupied by a building, group of buildings, or accessory buildings, and includes the buildings, structures, yards, open spaces, lot width, and lot area. "Manager" means any person with responsibility for the establishment, organization, registration, supervision, or oversight of a medical marijuana collective, including but not limited to any person who performs the functions of president, vice president, board member, director, owner, operating officer, financial officer, secretary, or treasurer of the medical marijuana collective. "Marijuana" shall be construed as defined in California Health and Safety Code Section 11018 and further shall specifically include any product that contains marijuana or a derivative of marijuana. "Medical marijuana collective" means the following; an unincorporated or incorporated entity or association of qualified patients and /or primary caregivers and /or persons with identification cards, who provide money and in -kind contributions, reimbursernents, and reasonable compensation towards the aforementioned entity's actual expenses for activities including, but not limited to; planting, cultivation, harvesting, transporting, manufacturing, compounding, . converting, processing, preparing, storing, packaging, providing and /or retail sales of medical marijuana. A medical marijuana collective may provide medical marijuana, products, services and assistance to qualified patients, persons with a medical marijuana identification card (as set forth in the MMPA), or the primary caregiver of such persons. Medical marijuana collectives may assist with the acquisition of skills necessary to cultivate or provide marijuana for medical purposes in compliance with State Law. A medical marijuana collective includes any facility, building, structure or location, whether permanent, or temporary, where marijuana is made available, sold, given away, distributed, or otherwise provided in accordance with health and Safety Code section 11362.5 et seq. A medical marijuana collective includes medical marijuana 19D-6 "cooperatives" as defined in Santa Ana Municipal Code section 41 -121 and marijuana delivery services. (1) "Medical marijuana collectives" shall not include, nor be interpreted to include, any of the following: a. Any location which is a legal dwelling zoned exclusively for residential use and not permitted for any commercial activity where three (3) or less people who reside at a property cultivate marijuana. b. The location of any clinic licensed pursuant to Chapter 1 (commencing with Section 1200), a health care facility licensed pursuant to Chapter 2 (commencing with Section 1250), a residential care facility for persons with chronic life- threatening illness 'licensed pursuant to Chapter 3.01 (commencing with Section 1.568.01), a residential care facility for the elderly licensed pursuant to Chapter 3.2 (commencing with Section 1569), a hospice, or a home health agency licensed pursuant to Chapter 8 (commencing with Section 1725), any facility specified in Division 2 of the California Health and Safety Code where: (i) a qualified patient or person with an identification carol receives medical care or supportive services, or both, from the clinic, facility, hospice, or home health agency; and (ii) the owner or operator, or one of not more than three employees designated by the owner or operator, of the clinic, facility, hospice, or home health agency has been designated as a primary caregiver pursuant to California Health and Safety Code Section I I362.7(d) by that qualified patient or person with an identification card. "Premises" means the space in any buildings of a medical marijuana collective together with the spaces within any structures, yards, open spaces, lot width, and lot area at a location that is occupied or used in the operation of the medical marijuana collective. "Reasonable compensation" means compensation commensurate with reasonable wages and benefits paid to employees of IRS - qualified non -profit organizations who have similar job descriptions and duties, required level of education and experience, prior individual earnings history, and number of hours worked. "Religious institution" means a building which is used primarily for religious worship and related religious activities and which possesses all necessary permits, eerti'Heates of occupancy and licensing to operate within the City of Santa Ana. "Structure" means anything constructed or erected which is supported directly or indirectly on the ground, but not including any vehicle. "Vehicle" means a conveyance or device by which any person or property may be propelled, moved, or drawn upon a street, sidewalk or waterway, including but not limited to a device moved exclusively by human power. B. The following words or phrases when used in this section shall be construed as defined in California Health and Safety Code Sections 1746, 11362.5, and 11362.7. 19D-7 "Hospice"; "Identification card"; "Person with an identification card;" "Primary caregiver"; and "Qualified patient." SEC. 18 -612. MEDICAL MARIJITANA COLLECTIVES PROHIBITED. A. It shall be unlawful to own, establish, operate, use, or permit the establishment or operation of a medical marijuana collective, or to participate as an employee, contractor, agent, volunteer, or in any manner or capacity other than as provided in this Article XIII. B. The general prohibition contained in this section shall include renting, leasing, or otherwise permitting a medical marijuana collective to occupy or use a location, vehicle, or other mode of transportation. SEC. 18 -613. LIMITED IMMUNITY. A medical marijuana collective shall be immune to the prohibition set out in Section 18- 612 and the remedies set forth in Santa Ana Municipal Code, including criminal prosecution, so long as that medical marijuana collective obtains a certificate of occupancy for the operation of a "retail and service use" as defined in Santa Ana Municipal Code section 41.144 from the City Planning and Building Agency as well as complies with all operational requirements provided in this section. A. CERTIFICATE OF OCCUPANCY. Planning and Building Agency shall issue a certificate of occupancy and business license for a medical marijuana collective that meets the requirements detailed in Section 1.8 -613 (A)(1)(a) -(c). a. Priority Registration. Beginning on the date that is thirty (30) days after the effective date of this ordinance, and lasting for ten (10) business days, a medical marijuana collective may submit a priority registration application if such applicant: (:l) possesses a valid lease for property in the City of Santa Ana dated on or before October 1, 2013; (2) has incorporated within the state of California for the purpose of operating a medical marijuana. collective, on or before October 1, 2013; (3) possesses a valid State Board of Equalization Seller's permit for the sale of medical marijuana which was applied for or issued on or before October 1, 2013; (4) possesses a valid License to sell nursery stock which was applied for or issued by the Department of Food and Agriculture on or before October 1, 2013; and (5) identifies a location that it will occupy after registration that meets the requirements of this Article, the Planning and Building Agency shall grant a certificate of occupancy and business license to the applicant. 19D-8 ii. Any medical marijuana collective that possesses a certificate of occupancy and business license issued under this section and meets the operational requirements in Section 1.8- 613(B) shall be provided priority by Planning and Building Agency in its review of the medical marijuana collective's certificate of occupancy application in the event the medical marijuana colleotive seeks to relocate or transfer. b. Non - Priority Registration: Beginning on the date that is thirty (30) days after the effective date of this ordinance plus ten (10) business days, any medical marijuana collective may submit a non - priority registration application to the Planning and Building Agency for a certificate of occupancy and business license provided the medical marijuana collective meets the following criteria: (1) it possesses a valid lease for property in the City of Santa Ana; (2) it has incorporated within the state of California for the purpose of operating a medical marijuana collective; (3) it possesses a valid State Board of Equalization Seller's permit for the sale of medical marijuana; (4) it possesses a valid License to sell nursery stock; and (5) it identifies a location that it will occupy after registration that meets the requirements of this Article. c. A medical marijuana collective that receives a certificate of occupancy may relocate within the City pursuant to this Article. d. The Planning and Building Agency shall issue a certificate of occupancy or a rejection, with a written explanation, to an applicant within 45 days of the applicant's written request for a certificate of occupancy. The failure of the Planning and Building Agency to issue a certificate of occupancy within the 45 day period shall be deemed an acceptance of the application for certificate of occupancy and the medical marijuana collective shall be permitted to operate. 2. Maximum Number of Collectives: City shall issue no more than eleven (11) certificates of occupancy for the operation of medical marijuana collectives, subject to Subsections 2(a) and 2(b) below. if the number of certified medical marijuana collectives falls 'below e'leve'n (11), then the City shall issue additional certificates of occupancy pursuant to the terms of this Article. a. City council shall have the discretion to increase but not decrease the number of certificates of occupancy issued by the Planning and Building Agency to medical marijuana collectives pursuant to the terms of this Article. b. Any such exercise of discretion under Section 2(a) increasing the number of new certificates of occupancy above the current maximmn 19D-9 number of eleven (11) shall comply with the minimum non - priority registration standards enumerated in 18 -613 (A)(1)(c)(i). B. OPERATIONAL REQUIREMENTS. A medical marijuana collective shall be immune to the prohibition set out in Section 18- 612 and the remedies set forth in Santa Ana Municipal Code, so long as that medical marijuana collective obtains a certificate of occupancy and complies with the following operational requirements: SAFE RADWS RESTRICTIONS: The medical marijuana collective is not located within: A 600 -foot radius of a school as defined. under Health and Safety Code §11362.768 (h); ii. A 500 -foot radius of a public park; iii. The distances specified in this paragraph shall be the horizontal distance measured in a straight line from the property line of the school or public park to the front door of the medical marijuana collective without regard to intervening structures; iv. Medical marijuana collectives are prohibited in all use districts in the City except for the C'1, C4, C5, M1, P, and C -SM use districts where they are neither prohibited nor authorized. They are explicitly prohibited in the residential use districts: RE, R',1, R2, R3, R4, and CR. 2. NON - CONCENTRATION OF COLLECTIVES REQUIREMENT: The medical marijuana collectives shall be disbursed in accordance with the following: There shall be no more than one registered certified medical marijuana collective within any single retail or business property. DELIVERY RESTRICTIONS: The medical marijuana collective shall not deliver marijuana to its members within the City of Santa Ana unless the medical marijuana collective maintains insurance for its managers, volunteers or employees who deliver the marijuana and the medical marijuana collective maintains a location within the city of Santa Ana which possesses both a certificate of occupancy and business license under this Article. 4. LICENSE REQUIREMENTS: The medical marijuana collective shall maintain a valid state Board of Equalization state Seller's permit in the name of the collective. 19D -10 RESTRICTION OF MINORS ON PREMISES: The medical marijuana collective shall not allow minors under the age of 18 years to enter its premises during any hours of operation. 6. RESTRICTION OF MINORS AS EMPLOYEES: it shall be unlawful for any medical marijuana collective to employ any person who is not at least 18 years of age. VISIBLE MARIJUANA RESTRICTION: Any marijuana within a medical marijuana collective shall not be visible with the naked eye from the exterior of the business's premises. 8. ALCOHOL RESTRICTIONS: The medical marijuana collective shall prohibit the sale, dispensing, or consumption of alcoholic beverages at its location, in the parking area of the location, or within fifty (50) feet of the collective. 9. PREMISES USE RESTRICTIONS: The medical marijuana collective shall not allow any persons to inhale, smoke, eat, ingest, or otherwise consume marijuana at the location, In the parking areas of the location, within fifty (50) feet of the premises, or In those areas restricted under the provisions of California Health and Safety Code section 11362.79. This prohibition shall not apply to a qualified patients use of marijuana for his or her own medical needs if the qualified patient's permanent legal residence is at the medical marijuana collective's location, nor shall this prohibition limit or conflict with the exceptions provided in local and state law that permit smoking in designated areas within licensed residential medical and elder care facilities. 10. LEGAL NOTICE REQUIREMENTS: A sign shall be posted inside collectives and cooperatives, stating substantially as follows: "The diversion of cannabis for non- medical purposes is a violation of State Law. Loitering at the location of a medical marijuana dispensing or collective for an illegal purpose is prohibited by California Penal Code section 647(h). No medical marijuana shall be smoked, ingested or otherwise consumed on the premises of the collective or within fifty (50) feet of a medical marijuana. collective" Such sign shall be printed in 14 -point font or larger upon 8 % by 11 paper and posted at some conspicuous part of such site. 11, CULTIVATION, MANUFACTURING, AND PROCESSING RESTRICTIONS: Medical marijuana collectives shall exchange, sell, transfer, and distribute only marijuana or cannabis Cultivated, manufactured, or processed in the State of California and that has not left the State before arriving at the collective and that has been cultivated only by, and provided only to, its verified members in a closed - circuit of production and consumption. 19D -11 12. MEDICINE INVENTORY RESTRICTIONS: The medical marijuana collective shall possess only a reasonable quantity of dried marijuana and marijuana plants to meet the personal medical needs of their members. 13. EMPLOYEE BACKGROUND REQUIREMENTS: The medical marijuana collective shall utilize the Live Scan background check system as set forth in this Article prior to employing any manager, volunteer or employee. The medical marijuana collectives' managers must be registered members of the medical marijuana collective. Verification of all Live Scan applications received by a medical marijuana collective shall be processed and received by the Santa Ana Police Department in accordance with California Department of Justice guidelines; 14. EMPLOYEE BACKGROUND RESTRICTIONS: Prior to being offered a position of management or employment at a medical marijuana collective, an applicant for a position of manager, volunteer, or employee of the medical marijuana collective who dispenses medical marijuana must submit and successfully pass an annual Live Scan background check by December 31 of each year in order to be employed at the medical marijuana collective. A failed Live Scan is any Live Scan that shows a felony conviction having occurred within the past 7 years and /or shows that the manager, volunteer or employee is currently on parole or probation for the sale or distribution of a controlled substance; 15. PATIENT CONFIDENTIALITY: In order to protect confidentiality, the medical marijuana collective 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 113623, et seq. 16. MANUFACTURE OF CONCENTRATED CANNABIS RESTRICTION: The medical marijuana collective shall not participate in or otherwise engage in the manufacture of concentrated cannabis in violation of California Health and Safety Code section 11379.6. 17. SECURITY REQUIREMENTS: The medical marijuana collective shall provide the Following security measures: the medical marijuana collective shall maintain an alarm system reasonably designed to ensure the safety of persons and to protect the premises from theft; the collective shall provide a security guard patrol for the premises during all hours of operation; iii. the security guard patrol shall be a duly- licensed and uniformed security guard patrol; 19D -12 18. CHILD - PROOF SAFETY CONTAINER REQUIREMENT: All medical marijuana collectives shall distribute marijuana in only "Child Proof' equipped with either a "Push or Turn ", "Reversible" top vial, or "Pop Top" ov "Squeeze Top" locking mechanism. 19. SIGNAGE RESTRICTIONS: Outdoor signage on medical marijuana collective premises shall not contain pictorial representations of the marijuana plant or pictorial representations of marijuana use. 20, EDIBLE RESTRICTIONS: Medical marijuana dispensaries that prepare, dispense or sell edible medical marijuana products, or food containing any form of medical marijuana, must comply with and are subject to the provisions of all relevant state and local laws regarding the preparation, distribution, and sale of food. Failure to obtain and comply with all necessary permits related to the preparation, distribution, and sale of food will be an express violation of this Article. 21. ODOR RESTRICTIONS: A dispensary shall have an air treatment filtration or ventilation system that reasonably prevents odors generated from the storage of marijuana on the dispensary property. SEC. 18 -614. VIOLATION AND ENFORCEMENT. Each violation of this Article shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by Santa Ana Municipal Code. Additionally, as a nuisance per se, any violation of this Article shall be subject to legally authorized remedies, including procedures for injunctive relief, as well as procedures to revolve the medical marijuana collective's registration, certificate of occupancy for the business's location, disgorgement and payment to the City of any and all monies unlawfully obtained, costs of abatement, costs of investigation, attorney's ,fees, and any other relief or remedy available at law or equity, The City may also pursue any and all remedies and actions available and applicable under local and state laws for guy violations committed by the medical marijuana collective and persons related or associated with such medical marijuana collective. SECTION 2. Santa Ana Municipal Code Part Il, Chapter 41, Article 1, Division 2, Scotion 41 -144 of is amended in its entirety to read: 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 any product, other than that which is clearly and traditionally incidental and essential to a particular retail activity. 19D -13 (b) A hookah parlor as defined in section 41 -73.5 of this Code. (c) 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 uses districts to Article III of this chapter. SECTION 3. AMENDMENTS TO SANTA ANA MUNICIPAL CODE 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 add the following: (All underlined language is new and to be inserted): Section 21 -119 — Gross receipts tax rates {5 Classification "I"'— "MarijuanaBusinesses" (a) — Every person engaged in the marfluann business not otherwise specifically taxed other provisions of this cha tep r shall pay a business tax of 150.00 for each Ji,000.00 of gross sales receipts or fractional parts thereof: (b ) - For the purpose of this section "marijuana businesses" includes "medical marijuana collectives" and means business activity including but not limited to planting, cultivation harvesting transporting manufacturing, compounding converting, processing, preparing, storing, packaging, wholesale, and /or retail sales of marijuana, any part of the plant Cannabis sativa L or its derivatives. It specifically includes medical marijuana or cannabis transfers by collectives and cooperatives and it specifically excludes medical mariivana or cannabis transfers by primary caregivers to their qualified patients as defined in Chapter 18 Article X1.11 of this Code; {c ) - For purposes of this section, a "medical marijuana collective" means ally activit -y regulated or }permitted by Article XIiI of this Code and California Health and Safety Code sections 11362 .5, et sect that involves transporting dispensing delivering, providing or manufaCtUring. compounding, converting, processing, _paring, storing packaging, or, testing harvesting, g ransporting dispensing delivering providing manufacturing, compounding, converting processing preparing storing Packaging, o testing any part of the marijuana plant for medical pur op ses• (d) _For the pupose of this Section tine above taxes aply only prospectively. The city, shall make no claim, current, retroactive, or prospective for payment by medical marijuana collective or any other City tax except for the City portion of any Sales Tax collected by the California State Board of Equalization; (e) — This tax shall be payable in quarterly installment payments by any organization falling under this Classification "F". 19D -14 SECTION 4. Majority Approval; Effective Date. This ordinance shall be effective only if approved by a majority of voters and shall go into effect immediately upon passage, SECTION S. Competing Measures. In the event that this measure and another measure or measures relating to the regulation of medical marijuana in the City of Santa Ana shall appear on the same ballot, the provisions of the other measures shall be deemed to be in conflict with this measure. In the event that this measure shall receive a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions of the other relating to the regulation of medical marijuana in the City of Santa Ana shall be null and void. SECTION 6. Amendment and Repeal. The provisions of the Santa Ana Mumicipal Code added by, amended . by, or contained in this initiative measure may be amended only as provided in each section. The provisions of the Santa Ana Municipal Code added by, amended by, or contained in this initiative measure shall not be repealed, except by an ordinance adopted either by petition or by the Council at its own instance and adopted by a majority vote of the electors. SECTION 7. Severability. If any portion of this ordinance is for any reason held to be unconstitutional, invalid or unenforceable by a court of competent jurisdiction, that invalidity shall not affect the remaining portions of this ordinance which can be implemented without the invalid provision, and, to this end, the provisions of this ordinance are severable. SECTION 8. Statewide Regulation, This ordinance, and the provisions herein, shall be read consistent with any statewide regulation of medical marijuana that is promulgated by the' legislature or by voter approval in the future. SECTION 9. Special or General Election. This initiative ordinance shall be set for a special or regular election at the earliest time allowed by law. 19D -15 EXHIBIT 2 19D -16 Title: Initiative Authorizing Regulated Operation of Medical Marijuana Facilities Summary; The Initiative proposes an ordinance ( "Proposed Ordinance ") amending several provisions of the of the Santa Ana Municipal Code, including Chapter 18, Article R)I, "Medical Marijuana Dispensaries," Chapter 41, "Zoning," and Chapter 21 "BusinessUcenses," to allow Medical Marijuana Collectives ( "MMCs "), as defined in the Proposed Ordinance, to operate in the City of Santa Ana. The stated purpose and intent of the Proposed Ordinance is to be compatible with federal and state enactments, while regulating MMCs so as not to interfere with a qualified patient's right to use medical marijuana as authorized by California. The Proposed Ordinance states that MMCs are prohibited, but actually authorizes them by providing limited immunity from the. prohibition for up to eleven (11) MMCs to operate within the City, if the MMC obtains a certificate of occupancy for a retail and service use, and complies with all operational requirements provided in the Proposed Ordinance, In order to obtain a certificate of occupancy and business license, the MMC must be located; (1) in a zone that allows retail and service uses; (2) 600 feet from a school; and (3) 500 feet from a public park or any other registered MMC. In addition, if the MMC provides delivery of marijuana, the MMC must have insurance for such activity. The City may only issue eleven (11) certificates of occupancy, however, the City Council may increase the number of collectives, without voter approval, in the future. The Proposed Ordinance also creates a priority registration system for the submission of applications for a MMC certificate of occupancy and business license. Beginning thirty (30) days after the effective date of the Proposed Ordinance, MMCs that met certain property, incorporation, permit and license requirements by October 1, 2013, may submit a priority application for a certificate of occupancy and business license. Otherwise, MMCs that were not established by October 1, 2013, but find a location that meets all requirements, may submit an application for a MMC occupancy certificate and business license forty -five (45) days after the effective date of the Proposed Ordinance. The Proposed Ordinance also establishes several operational requirements for MMC's including, but not limited to, the following: limitations on location, exclusion of minors; prohibition of alcohol; restrictions on consumption of marijuana on permitted premises; conducting Live Scan background checks on employees; required security and carneras; and mandatory analysis of products for contaminants. Finally, the Proposed Ordinance amends the City's Business License Ordinance to provide that MMCs pay a business license fee of $50.00 for every $1000.00 in gross sales of medical marijuana. 19D -17 EXHIBIT 3 19D -18 April 2, 2014 REGISTRAR OF VOTERS 1300 South Grand Avenue, Bldg. C Santa Ana, California 92705 (714) 567 -7600 TDD (714) 567.7608 FAX (714) 567 -7627 www.ocvote.com NEAL KELLEY Registrar of Voters Mailing Address: P.O. Box 11298 Santa Ana, California 92711 Ms. Maria D. Huizar Clerk of the Council City of Santa Ana 20 Civic Center Plaza P.O. Box 1988, M30 Santa Ana, CA 92702 Dear Ms. Huizar: Enclosed is the Certificate as to Verification of Signatures for the petition entitled "Initiative Authorizing Regulated Operation of Medical Marijuana Facilities ". The Registrar of Voters verified 500 signatures. The cost per signature verified is $3.40 for a total cost of $1,700.00. An invoice is enclosed. If you have any questions, please feel free to contact me at 714. 567 -7606. Sincerely, Kay Cotton Candidate and Voter Services Manager kc Enclosure 19D -19 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 "Initiative Authorizing Regulated Operation of Medical Marijuana Facilities ". I further certify that from said examination I have determined the following facts regarding this document: Number of signatures filed: 10,007 Number of signatures required: 8,738 Number of signatures verified: 500 Number of signatures found valid: 262 Number of signatures found invalid: 238 Invalid because of Duplicate: 1 1 WITNESS my hand and Official Seal this 2nd Day of April, 2014. NEAL KEL Registra oters Orange County 19D -20 RANDOM SAMPLING VERIFICATION OF SIGNATURES The Irvine Support Our Schools Initiative of 2012 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: l Raw Count (10,007) x Sufficient in Sample (262) = V (5,243.668); rounded to 5,244 Sample (500) 2. Divide: Raw Count (10.007) = A (20.014) Sample (500) 3. Multiply: A (20.014) x A -1 (19.014) = B (380.546) 4. Multiply: B (380.546) x Number of Duplicates (1) = C (380.546) 5. Subtract: V (5,244) — C (380.546) = Corrected Value (4,864) 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: 8,738 110% of number of signatures required: 9,612 Random sampling 19D -21 am 101 FINAL Petition Result Breakdown NotReg OutOfDlst Duplicate RegOlffAdd NoResAdd SigNoMatch WrongCnty Signatures Required 8738 Raw Count 10,007 Sample Size 500 Percent of percent of Slgs Checked 500 sigs Checked sample size Sigs .Not Chocked 0 0.0% Sigs Valid 262 52.4% 52.4% Sigs Invalid 238 47.6% 47.6% Duplicated 1 0:0 % 0.2 % Non - duplicate Invalids 237 47,0% 47.4% �y Approved 262 52.4% Not Registered 188 37.6% Out of District 13 2.6% Signed more than once 1 0.2% Registered at a Different Address 27 5.4% No Residence Address Given 1 0,2 Signatures Don't Match 7 1.4% Page Filed In Wrong County 1 0.2% Total pages Circulators Checked cc: N. Kelley J. Berardino L.Strickland N. Mendoza K. Cotton M. Nielson J. Martinez M.Tn J. Boiarsky 2,223 No ICMR012 - Petition Result Breakdown 19D-22 Page 1 of -I Tinted: 3/25/2014 11:36:34AM