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HomeMy WebLinkAboutNS-2868 - VOTER MMDPROPOSED ORDINANCE NO. NS -2868 THE SANTA ANA MEDICAL CANNABIS RESTRICTION AND LIMITATION ACT The People of the City of Santa Ana do hereby enact and ordain as follows: THE SANTA ANA MEDICAL CANNABIS RESTRICTION AND LIMITATION ACT 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 their medicine. (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 XIII The People of the City of Santa Ana do hereby enact and ordain that Chapter 18 Article XIII 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): Article XIIL - Medical Cannabis Collectives and Cooperatives Sec. 18.610. - Purposes and Directives Sec. 18 -611. - Definitions Sec. 18 -612. - Maximum Number of Collectives or Cooperatives Sec. 18 -613. - Use Districts & Sensitive Use Proximity Prohibitions Sec. 18 -614. - Registration Required and Effect Thereof Sec. 18 -615. - Registration Application Process Sec. 18 -616. - Registration Application Form, Manner, Timing, and Priority Order Sec. 18 -617. - Issuance and Renewal of Registration Sec. 18 -618. - Operating Standards 2 Sec. 18.6 10. - Purposes and Directives The Purpose of this chapter is to implement California Health and Safety Code sections 11362.5 and 11362.7 - 11362.83, known respectively as the Compassionate Use Act of 1996 and the Medical Marijuana Program Act (effective 2004); and to impose limitations on the location of facilities lawfully used for the cultivation, processing, storage, and dispensing of medical cannabis, other than the cultivation or possession by an individual qualified patient or caregiver at the patient or caregiver's home. The Compassionate Use Act is the State law removing State tate law penalties for qualified patients, and those patients' primary caregivers, for possession and cultivation of a personal amount of medical cannabis for qualified patients. The Medical Marijuana Program Act is the State law that allows qualified patients and caregivers to collectively or cooperatively cultivate and distribute medical cannabis for and to each other. The purpose of this Article is also to enact reasonable operating and zoning limitations and other restrictions applicable to the cultivation and distribution of medical cannabis based on the needs of the City of Santa Ana and its residents. This Article is intended: (1) To fulfill the purpose of the Compassionate Use Act to "implement a plan to provide for the safe and affordable distribution of marijuana to all patients in medical need of marijuana" in accord with the Medical Marijuana Program Act's purpose to provide a well-regulated program for patients and caregivers acting collectively or cooperatively to cultivate and obtain medical cannabis. (2) To help ensure that seriously ill residents of the City of Santa Ana can obtain and use cannabis for medical purposes where that medical use has been deemed appropriate and recommended or approved by a California physician who has determined the patient's health would benefit from the use of cannabis in the treatment of cancer, anorexia, AIDS chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which cannabis provides relief. (3) To create a ministerial administrative registration process for a limited number of medical cannabis collectives and cooperatives that serve qualified patients in the City of Santa Ana in accordance with State law. Nothing in this Article purports to affirmatively authorize activities that are otherwise illegal under Federal, State, or local law. (4) To protect citizens from the adverse impacts of irresponsible or illicit medical cannabis cultivation, distribution, handling, and storage. (5) To provide additional revenue to the City of Santa Ana for the eg neral public welfare including without limit for public safety, education, and health. (6) To impose further limitations on medical cannabis collectives and cooperatives beyond those imposed under the Medical Marijuana Program Act, and in no way to affirmatively authorize activity prohibited by State or Federal law. (b) It shall be unlawful for the City of Santa Ana to ban Providers of medical cannabis lawful under State law, including non -Profit collectives and cooperatives, from operation within the City of Santa Ana, or to place a moratorium upon such lawful operation. (c) No department, agency, commission, officer, or employee of the City of Santa Ana shall use any City funds or resources to assist in the enforcement of Federal controlled substance laws to the extent that they are inconsistent with California medical cannabis laws, including but not limited to the Companionate Use Act of 1996 and the Medical Marijuana Program Act, unless such assistance is required by Federal or State statute, regulation, or court decision. (d) The City of Santa Ana shall not accept any Federal funding that would be used to investigate, cite, arrest, prosecute, or seize property based on offenses otherwise legal under California medical cannabis laws, nor participate in any task force that accepts any Federal funding or revenue sharing and that investigates, cites, arrests, prosecutes, or seizes property based on offenses otherwise legal under California medical cannabis laws. Specifically, these prohibitions on accepting funding and task force participation shall not apply to the following activities as not legal under California medical cannabis laws: (1) Distribution or sale of cannabis to minors; (2) Cultivation or sale of cannabis on public property; (3) Driving under the influence; (4) Interstate or international gang activity. ctivity. (e) The City must not require a medical cannabis collective or cooperative to obtain any special use or conditional use permit. This provision is included to meet the requirements and concerns expressed by the California Court of Appeal in Pack v. Superior Court (2011). City officials will not be required to violate any Federal criminal statute. No special site plan, variance, or any other permit or certificate other than those specified in this Ordinance shall be required by the City and none shall be issued for said collectives and cooperatives. The City shall issue, as a ministerial duty, Notices of Completed Registration, Certificates of Occupancy, and gross receipts business licenses to qualified collectives and cooperatives in priority order as received and processed. Sec. 18 -611. - Definitions (a) "City" means the City of Santa Ana. (b) "Cannabis" or "marijuana" means marijuana and all parts of the plant cannabis, whether growing or r not; the seeds thereof. resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It includes marijuana infused in foodstuff It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound manufacture, salt, derivative, mixture, or Preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seeds of the plant are incapable of germination. (c) "Collectives" and "cooperatives" when referring to medical cannabis organizations, both mean associations of five or more qualified patients, persons with identification cards, or primary caregivers of qualified patients and persons with identification cards, who associate, as an incorporated or unincorporated association, to collectively or cooperatively cultivate and distribute medical cannabis for use exclusively by their registered members, in strict accordance with California Health and Safety Code sections 11362.5 and 11362.7 et seq. (d) "Director" means the Executive Director of the Planning and Building Agency or his or her designee. (e) "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 seq. that identifies a person authorized to engage in the medical use of cannabis and the person's designated primary caregiver, if any, or identifies a person as a primary caregiver for a medical cannabis patient. "Medical cannabis transfer" means: (1) The transfer of medical cannabis from a primary caregiver to that primary caregiver's qualified patient for such consideration as is sufficient to reimburse that primary caregiver for the primary caregiver's out -of- pocket expenses and for the primary caregiver's services which shall not be subject to the City's gross receipts tax; or (2) Transfers of medical cannabis among qualified patients or primary caregivers facilitated through an association of those qualified patients and primary caregivers who are operating as a cooperative or collective which shall be subject to the City's gross receipts tax. (g) "Medical marijuana" and "medical cannabis" means cannabis that is rg own, 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. (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 and accurate. i) "Overhead expenses" means all expenses incurred by the collective or cooperative including but not limited to accounting, advertising, cultivation materials and equipment depreciation, insurance, legal fees, mortgage payments, rent, repairs, supplies, taxes, utilities volunteer compensation and reimbursements, wages, salaries, payroll, fees paid to comply with the requirements of this Article, and any other expenses associated with the establishment and operation of the collective or cooperative. (i) "Non -profit operation" means that the collective or cooperative does not distribute its net retained earnings to 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 Safetv Code sections 11362.7 - 11362.83. (1) "Primary caregiver" shall have the same definition as California Health and Safety Code sections 11362.7 et seq., and as may be amended, and which defines "primary caregiver" as an individual, designated by a qualified patient or by a person with an identification card, who has consistently assumed responsibility for the housing, health, or safety of that patient or person, and may include a licensed clinic, a licensed health care facility, a residential care facility, a hospice, or a home health agency as allowed by California Health and Safety Code section 11362.7(4)(1 -3) (m) "Qualified patient" shall have the same definition as California Health and Safety Code section 11362.7 et seq., and as may be amended, and which states that a "qualified patient" means a person who is entitled to the protections 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 list" means the list of registered medical cannabis collectives and cooperatives maintained by the Director. (o) "School" means any public or private school with students in any grade K -12. Sec. 18 -612. - Maximum Number of Collectives or Cooperatives At least 1 medical cannabis collective or cooperative per 15,000 (or fraction thereof) residents of the City of Santa Ana, 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. The City Council may increase, but not decrease, the number of medical cannabis collectives registered in the City under the formula above which shall be the maximum number registered unless raised by the City Council. Sec. 18 -613. — Use Districts & Sensitive Use Proximity Prohibitions (a) Medical cannabis collectives and cooperatives are prohibited in all use districts in the City except for the C1, C4, C5, Ml, P, and C -SM use districts where they are neither prohibited nor authorized. They are explicitly prohibited in the residential use districts: RE, R1, R2, R3, R4, and CR. (b) Medical cannabis collectives and cooperatives are Prohibited within 600 feet of schools as defined in this Article. Sec. 18 -614. - Registration Required and Effect Thereof (a) 180 days after the adoption of this Article, it shall be prohibited for any person to operate a medical cannabis collective or cooperative without a Notice of Completed Registration issued by the Director. (b) Nothing in this Article shall be construed to air nt any registrant any status or right other than the right to be identified on the City's registration list, and to receive a Notice of Completed Registration, a Certificate of Occupancy, and a gross receipts business license, and the right to assert an affirmative defense to administrative, civil, and criminal enforcement of the City of Santa Ana Municipal Code based on conduct in compliance with this Article and with California law. A duly registered collective or cooperative, its members, officers, directors, managers, and employees, shall not be subject to administrative, civil, or criminal sanctions based on the City of Santa Ana Municipal Code solely on the basis of conduct in compliance with this Article and with California law. Sec. 18 -615. - Registration Application Process (a) Each application for medical cannabis collective and cooperative registration shall be submitted to, and as directed by, the Director on forms of his or her devising, in the name of each applicant for registration, and shall be signed by each applicant or an authorized agent thereof. The application shall include the following information: (1) A written request to be registered and placed on the medical cannabis collective and cooperative registration list. (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 as any other names under which the collective or cooperative may operate. (4) Copies of the collective or cooperative's entity- formation document such as, without limit, its Articles of Incorporation, Articles of Association, LLC Operating or Membership Agreement, etcetera. (5) A one -page description of the collective or cooperative's nature and its plans for security and non - diversion of medical cannabis. (6) The following information concerning each director, officer, or senior general manager of the collective or cooperative: (A) Complete legal name, and any alias(es); (B) Date of birth; (C) A copy of a valid government- issued Photo identification card or license; (D) A telephone number; and (E) A list of any felony convictions for any crimes of violence, larceny, or fraud within the previous 10 years, which shall be grounds for disqualification as shall failure to disclose. 7) Documentation that the collective or cooperative is located in a Cl. C4. C5. Ml. P. or C- SM use district of the City 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 cooperatives are prohibited in 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 operating at the location prior to December 31, 2011, including but not limited to, a lease a utility receipt, a State Board of Equalization Seller's Permit, or a Federal Employer Identification Number. (9) A dated statement signed by an individual member authorized to represent and legally bind the collective or cooperative, certifying under nder penalty of perjury that the information provided in the registration form and any attachment thereto is true, complete, and correct. (b) The Director shall not refuse to accept for processing a registration application accompanied by the required fee submitted per this Article. (c) The required fee required for application and registration shall not exceed $500. Sec. 18 -616. - Registration Application Form, Manner, Timing, and Priority Order (a) The Director shall, within 15 calendar days of the date of adoption of this Article, create registration application forms and instructions that strictly require only the information required pursuant to Sec. 18 -615 of this Article, 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 to the date the Director will beizin acceptin applications for registration, the Director shall publish, on the City's website and once in a daily newspaper of general circulation, the date, time, and manner on and in which collectives and cooperatives 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 priority list that identifies by name, address date and time the order in which applications were received. The order in which applications were received shall be the order in which the Director shall process them. A collective or cooperative may only be assigned one place on the priority list, and multiple submissions will result in immediate disqualification from the registration process. (e) Within seven calendar days of establishing the priority list, the Director shall publish the priority list on the City's website and once in a local daily newspaper of general circulation. (f) 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 priority list, the Director shall begin processing as a ministerial duty the registration applications of collectives and cooperatives in the order established by the priority list. The Director shall continue processing applications until the maximum number of collective and cooperative registrations have been issued a Notice of Completed Registration and placed on the registration list. This processing shall consist of verification of the information required by Sec. 18 -615 as complete and accurate. (h) No cooperative's or collective's rank on the priority list shall be assigned, transferred, or sold. Any attempt to so assign, transfer, or sell a priority ranking shall render the application null and void. Any person, collective, or cooperative attempting to o assign, transfer, or sell a priority ranking and nd any person, collective, or cooperative attempting to o acquire a priority ranking outside the provisions set forth herein shall be immediately disqualified from the registration process for three years. Sec. 18 -617. - Issuance and Renewal of Registration (a) Upon the receipt of an application for registration, the Director shall, as a ministerial duty, complete processing and issue a Notice of Completed registration and place the collective or cooperative on the registration list within 30 calendar days, to be tolled if, and only ifs requested by the applicant to allow processing time, ime, unless: (1) The application is incomplete or inaccurate; or (2) 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 falsely; 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 C1, C4, C5, M1- P or C -SM use district of the City, or that cannot provide evidence of operation in the City prior to December 31, 2011; or (4) No California State Board of Equalization Seller's Permit has been granted for the applicant collective or cooperative; or (5) An applicant is a licensed physician actively making patient recommendations. b) If the Director fails to either issue a Notice of Completed Registration or denv the application for registration in writing stating tating the reasons for denial, within 30 calendar days of receipt of the application, the registration shall be deemed complete, the Notice of Completed Registration deemed issued, and the collective or cooperative deemed to be on the registration list_ and thus deemed eliizible for a Certificate of Occupancv and gross receipts business license as 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 Registration are available. When additional Notices of Completed Registration become available, applications will then be taken and will be considered as provided herein upon the timely filiniz of a new application therefore (d) Registration shall be valid for two years and an application for renewal must be filed not later than 30 calendar days prior to the expiration of the registration, but no earlier than 60 calendar days prior to the expiration of the registration. A registration may be renewed for additional periods of two years by submitting an application to the Director. e) If a reizistered cannabis collective or cooperative is forced to chanize locations unwillingly, including without limit because of 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 within the allotted 180 calendar days. (f) Once issued a Notice of Completed Registration and placed on the registration 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 if, and only if, requested by the applicant to allow time for inspection or for work required per inspection) during which time the standard building and fire inspections shall be completed or deemed completed and applicants allowed time as they request to complete any work required per inspection. The Certificate of Occupancy shall issue without regard to any parking requirements, which shall be deemed met or waived. If 10 the Certificate of Occupancy is not issued, or denied in a writing stating the grounds therefore, in this time it shall 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 following standards that rises to the level of a persistent public nuisance in fact that cannot be abated through feasible conditions of operation shall be grounds for abatement pursuant to Chapter 17 of this Code. (a) Collectives and cooperatives shall meet all the operating 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 General'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 caregivers, which membership status shall be affirmatively verified. (c) Collectives and cooperatives shall exchange, sell, transfer, and distribute only cannabis cultivated, manufactured, or processed in the State of California and that has not left the State before arriving at the collective or cooperative, and that has been cultivated only by, and provided only to, its verified members in a closed - circuit of production and 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 Dersonal medical needs of their members. (e) No medical cannabis shall be smoked, ingested, or otherwise consumed in the public right -of -way within 50 feet of a collective or cooperative. Any person violating this provision shall be deemed guilty of an infraction and upon the conviction thereof shall be punished by a fine of $100. (f) The collective or cooperative shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages. Nor shall alcoholic beverages be consumed on the premises or in the public right -of -way within 50 feet of a medical cannabis collective or cooperative. (g) 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 11 pursuant to California Health and Safety Code section 11362.7 et seq. (h) The collective or cooperative shall Provide and maintain adequate security on the premises, including lighting and alarms reasonably designed to ensure the safety of persons and to protect 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 collective or cooperative to employ any person who is not at least 18 years of age. (i) 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 operation, 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 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 cannabis dispensing collective for an illegal purpose is prohibited by California Penal Code section 647(h). No medical cannabis shall be smoked, ingested or otherwise consumed in the public right -of -way within fifty (50) feet of a medical cannabis collective or cooperative." Such sign shall be printed in 14 -point font or larger upon 8 �/z by 11 paper and posted at some conspicuous part of such site. : 1 Ml 1 I . 1 I 1 I . 12 \ \ III IIIIIIIIIIII1111111 Jill, I �­ I I m I M111-1-411 IZ \ \ III IIIIIIIIIIII1111111 Jill, I �­ I I m NIH NO \ \ 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): 13 NIH NO 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): 13 1) Met!e than patient; a single qualified 2) Met!e 0 than a single The tet!ni cc » ; the following , shall not elude Safety C Califemia- Health and Code; put!sttant to hapt°" 3.01 of Division 2 of the ( alif .-, i Health iety _C Health and Safety Code; Division 2 of the Califet!nia Health and Safety CO A 11 Code seetien 11362.5 et.- niedieal z witheut eenipensafien-.- "niedieal » "qualified patient," "identifieatien » cc » shall be as defined in Califefnia HealSafety Code C seetie�O''.5 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. 14 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. (-e) A hookah parlor as defined in section 41 -73.5 of this Code. Cc) ()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 III 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: 15 $0.30 per $1,000.00 to .....$100,000.00 0.25 per 1,000.00 to .....300,000.00 0.20 per 1,000.00 to .....600,000.00 0.15 per 1,000.00 to .....1,000,000.00 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" —Junk 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 engaged in a cannabis business not otherwise specifically taxed by other business tax provisions of this Chapter, shall pay a business tax of $20.00 for each $1,000.00 of gross receipts or fractional part thereof. b) For the Durnose of this Section. "cannabis business" means business activitv includin 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 cannabis transfers by collectives and cooperatives, and it specifically excludes medical cannabis transfers by primary givers to their qualified patients as defined in Chapter 18 Article XIII of this Code. 16 c) This is the only Citv of Santa Ana tax annlicable to medical cannabis collectives and cooperatives, and it applies only prospectively. The City shall make no claim, current retroactive, or prospective for payment by any medical cannabis collective or cooperative of any other City tax except for the City portion of any Sales Tax collected by the California State Board of Equalization. (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 ELECTION The Voters of the City of Santa Ana hereby expressly request that this initiative ordinance be set for a special 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. 17 THE SANTA ANA MEDICAL CANNABIS RESTRICTION AND LI IITATION ACT 291? `!" 15 Rd rr. 19 The People of the City of Santa Ana do hereby enact and ordain as follows: C I T Y THE SANTA ANA MEDICAL CANNABIS RESTRICTION AND41AMi TkTIONI -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. (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 XIII The People of the City of Santa Ana do hereby enact and ordain that Chapter 18 Article X111 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 Dircgtives Sec,. 18 -611. - Definitions 18-612. - Maximum Number of Colleclives or CaQwralives Sec. 18-613, __Ust ]2iatricts & SonsitiYe Ilse Proximity Prohibitions Sec 18 -614 - Registration Required and Effect Thereof Sec_ 18- 615- - Registration Application Process 18-616, - Rcgistration Application F r Mannpr, T ming, and P' ri ty ()rdpr 8 -618 - QpuaLing n r 2 Sec, 18 610 - Purposes and Directives The aurpose of this chapter_ is IQ ent Califfomia Hea th and Sa&IY Code "implement n 113 5 and 13 7- 136 83 knmij respedi 1 the safe and i 0 U Act of 1996 and h * sdic°1 Marijuana Program Act effective 2004); and to impose limitations on t h mdoolkmd Medical Marijuana Program facilities.lawfully used for the rjultiyafion, processing, stor a� nd dispenSlna of medical f r cannabis, other than the cultivation or ooss usiQn by an individual quali% patient or care at tho patient r i r' m The Compassionate Act is removi 1penalties fo qualified and those patients' 'm care givers,�possessic�nnd ill residents of the City of Santa has been Ana can obtai demed appml2riate 1 nn i f life n Th Modicall where that medi Qal use, a California physician Madjuana Program Agt is the Im that allows qualified n n caregivprs to QollgCfiy& or cooperatively cultivate and dig +.ri ute medical cannabis for and to each other. The puEpose of this Article is also to enact reasonabl (3) nd zoning_ limitations admi and other reOdctions_applicable to the cultivation and i i of moical cannabis collectjyes and conp2ra of the City of Santa Ana and its residents. atients in the City of Santa Ana in aimrdance This 1 is intendDL- (1) To fulfill jht purpose of the Compassionate, ILse Act to "implement a lap m urovide for the safe and affordable distributiQu of marijuana to all in medical eed of m�a rijuana" in accord with the Medical Marijuana Program Act's_uarnose to 12 a well-reWLIated program f r i t in li i 1 r i r„ltiYale and obtaj medical cannabis. (2) To help ensure that seriously ill residents of the City of Santa has been Ana can obtai demed appml2riate and use and conaabis me fa medifal ded or approved pujj2usys by where that medi Qal use, a California physician who has determined the anorexia_ patient's AIDS_ health would chronic pai benefit irnm jhr, glaucoma, j s of cannabis in the treatment arthritis mi, grain, or any of canre4 other illness for which ,anasticiLL (3) To create a ministerial admi istrative, registrafton process for a limited number of medical cannabis collectjyes and conp2ra ives that serve qualified atients in the City of Santa Ana in aimrdance wiLh St rtiQl rts tQ affilmafiyQl-y mlh-Qiize actiyities h r h i i n F rl or 11 w- (4) protect cit tens fr m the adverse impacts of irresponsible or illicit medical c n� nabis r� oltivation, distdbution, handling, 5 T i incilldillg i without nlr n limit for public h i f Safer, educatim, and f health. h general fr 3 pisLfibution Qr sale of cannabis to minors; 2 ) Cultivatioll or sale of cannabis Qn pblic propedy: () Drives . undQ r thQ influ tom;. blusiale or ' rn inl gang mAivily- El (a"Ci means the City Qf Santa Ana. "Cannabis" r "mpn ' n" means marijuana and 1 parts of the plant n i h omm-a- h r f ffie resin extradod f rn any part of the compQund, ma ufacture salt deriyalivo, mi2LWre, or prenaration of the_pll- its seeds or resin. I includ mri' infund in f ffI in 1 fh In fiber- produced fro the stalks, oil or cake made from the se ds of the plant, �ny other compoun& inanufadurg, salt, d mixture, r i f the mWiirt k s (o—xc&pt die resin extracted therefrom fiber, oil, or cakv,, or the sterilized seeds of the plant a e incapable o� germination. " of eetives" and "coo era ives" when neforring to medical cannabis �rganizatioim h i mean associatims of fl r r qualified n ts, persons V&h identific&fiQu cards r r' r r of qualified i and-persons i with idenfification cards, associate, inporporated Qr prunc, r por i i i r r 1 i n distribute medical cannabis far use exclu ively by their registered me bers in strict accordance mith California Health f ety CQde =Aionsl 1362.5 and 11362.7 se . "D' r" means tht, Executive Dire=r of Lhe Plannin-9 and °l in g AgenQy or his r her designee. "Medical nn identificatioa cud" and "i ifi n " mean a documenA ° by the Devartment of Health i r t to Califfommia 1 n Safety st��Qns 11362.7 sea. that identifies r son aWhwized w tingage in the modical cann&bis and per n im r giver, if any, or ideuOu "Qrson . r for a mediQal 1 I n "Mgdical cannabis r s r" means: 1 li r and r f medical cannabis fr caregLuAQ that primary i r' qualified igm-t f-Qj such co-n- i in as is su& in im that °m caregiyer for thf, 12rim= r r' s oul-Qf-po expoom for the 12.rim= cargaiver's services which shall not i tv's gross reuipts tax; Q-r- Tjiansf&rs of medical cane his among qualified patients or_primary caregivers facilitated rough an association r n - nft_hose -i Qua or coller id fied atients and prima h shall be subject , caregivers who lo tht City's are t r i tax_ " i 1 ri' " n d "inpdical cannabis" mmm cannabis that is r n distributed pursuant to th of alifomia Health and Safety Code sections 11362.5 and 1 7 62.?- 11362.83 in, ciudi it..g, all cannabis products, in ions, and concentrates font ining the aQftyc inurrdients of h cannabis plant, 5 h "NQtice of ComplrAed R r i " mea a writttn noti e IQ an applicant -far l i '�operative regigration i ssutd-b-y-the director as a minestorial jWty indicating h at the applicatio n is complete "Oymbead and aCCUrate. o2jpgnses" m 11 x n rr the 11 i r coopgaafut includinp, but not limited n in 1' i materials and i m dtpmf,ia6 mollmanteer in compensation r 1 aml rim m payments, rent, it s, supplies. salaries, l, kes paid taxes, ili i tQ comply h the requimments of hi s AItirle, any r expenses assogiated ih hmn n Qpprafion li " of h on- profit l i otlerati or n" means i that the collective or Qoo r i i in W ruin gs "Emon -to-a-ny individual with an i n'fi n card!' m n individuall who is lifi ed patien h h li f n r i i i ifi i r r lif i H n Safety !11 ode sections "Primary+ 11362.7 -113 caregiver" shall have the same de$nition as Califor is I- [ealth and Safety CQdo i n 1 2 7 e m m hi h fin im r i n in ' i 1 dcsignated by a qualifi nj or by a person with an identificafion card, h consistently assumed responsibility __forte housing, hcalth. Qr safm of that 12atient or perso , and may include licensed clinic, licensed health r e fij!jijity. a Lesidontial facililL hospice. or a home health auency as allowed lif H 1 i � — b) "" ualified patient" shall have the same definition as California Health and Safes Code strAion 11362.7 et see., and amended, h' patient" means _a porson who is entitled to the protections of California Hgalmh and Safety de section 1362.5, but who does not have a valid medical cannabis identification card._ "R inli" a "medicall cannabis coller.6ye and r registratim li means the list of registered edical cannabis co lectives and cooperatives maintained by tho Director. [00 ]MWIR 18- - Maximum r pf Collectives or Cooperatives At least 1 medical cannabis collective or oonerativ� en r 15,000 (or fracf on thereo , residentsQf the City of Santa Ana, as determined by the last Federal Census or-as del n ' y the latest population estim tae by the Deparumat of Finance of the State of Calliffbmia whichever is higher,. and in no Qast less lhan 22. shball be registered the it Lhere r that many 1' 1 li n n r h number f medical cannabis collectives registered in the City u der the formula above which shall be the maximum number Ecgis .r d unless raised by the City Council. -613 — Ilsf, Di stri!as & Sensiliye I Ise Proximity Prohibitions W Medical cannabis collectives and cooperatiyesarg prohibited in all u e districts -in the Cily QXMI for the Cl, C4., C5., Ml E and C-SM use, districts r h are n' rprohibited nor authorized. They are exRlicifl rohibited in the residential use distrie • RE R1, R2, R3, R4, and CR. M-ediral cannabis 1 r hi i i n 600 feet of srh—ools s defined in this Article. Sec 18 -614. - Regi tr tfi a� ion Required and Effect Thereof (a) 180 days after the adoption o-f-Llu:s Artie it shall be prohibited for any person to opera intdical onnabis colleclivem cooperative without i m &gistfalim i by IQ Director_ 18-615, -R i inA inP mQp Each application for mediml cannabis collective n r r i n shall applicant for registration, and shall be signed by each applicant or an authoriztd- a_,gent thereof. (1) A 3&dUn request to be registered and Dlaced o the medical cannabis collective and cumerative registration list_ 2 Thy, name. mailing r n d telephone number f the applicant, 3 Th r r 11 n m r r r hr i t ni h 11 n h r namaundpr which the ollerliye i r 4 i of -e ll r r i n i - rm n mn h without lijii t, its Articles of Incorporation, Articles of Association, LLC Operating or Membership Agrc!-.mtnt, et cetera. (5) A one -page descri tion of the col ective or cooperative's nature and its plans for security and non-diversion of medical cannalA& 6 The 11 i information cQngming each directOL OMQCL or seniQr n r n f the 11 r r (A Complete legat name, n alias(-es)-,. If (C %A copy of a valid government-issued photo idemtifica ion card or lic ;. (D) A to phone number, ann f uy felony ron i for ri f violence, larceD34 or fraudhip Lhp, previ 10 years, h shalLheo-grounds for i li i shall failure id sclose. The, it r ll not f r in registration application air rn anied by t e required fee submitted per this Article. The it requimd for al2plifaflQn and regialratiQn shall not paceed 500 Sec 18 -616. - -Registration The, Direrjor Application Form, sball, i hi 15 caleadar Manner T, iming, and days of the date of adopfion Pjciority Or r of Ws Artich-,�� iregistralion ul)licafton fQrms instmclig)ns that strictly require only.the info i n ired pulaBan 1 -515 f i i n shall applications i h within 30 calendar least stymn appliQations frr days of the date o_f_adoption calendar days prior i n thp, Director of i ArtiQle. to the the Director will shal blish-, on the City's brgin-=captilig website n it paper ja of general circulafio-n-, the d" timo, and mannu Qjn- and in m filob collectives must submit registration lication forms and the required fee and shall make —operatives l2liblicly ayailable W Each cQllcctive h forma an and r i ll submit with registration i li i i r ffcpursuant to this h mileative Article, and cooperative its registrafiQ application n Pursuant to this A' 1 e, th-c DirertQr l im - h e- pulication wi ime i n dus after lho date the Director begina Mmpting DIP ications, Director shall -calendar acceliting applications and shall that day establish � a priority lisl that identifies by namg, addoss, im h r in i h i n r r T r r i hi h 1i i wem received shall be the ader in which thp, Director shall 12EQctss m , A, QQllcctiYe or imperative may only be assigned one place on the priQn Ay Iist na d multiple submissions will result in immedi i hip seven lificalion frQm r days of establishing the registrafton ri ri i the it 1 publish h r . iorijy list on the City's i n in a local daily newspaper of n r l la i The r sa forth in the 12jiQrity shall Lmain in eact unfil the ri list n e which-limo, ho l h mmbor of current Yalid mgistrations f below th es tablished by Sec. 18-612 of this Article, a new date and tune will be set for submission of add+zonal applications following the process set forth herein, but not more frcquently.than once every 180 days Foltomdng ostablishment f the priQrity h r sball begin La ilnisterial duty the i r i li f and i in h order established Lho priQdly list, Director shall con linue pr licafions until maxi um number of cull dive and cooperative registrations have been issued a Notice Qf E Completed 13egisiration and placed on the regist[ation list. This processing shall consist of verification o the information re uirgd hy Sec. 18-615 as complete and_accurate, h cooperative's or ll rank-mthr, priority list 11 be assigned, r f rr r Any atto m pt to so assign, tiMsfer, or-sell a priQrily ranking h l render the a- li gatim null and void And nersm, oll�ctive, or cooperative attempting to assign, trap fs er, or sell a rl� ority ranking n r son, co-Iloctive, or cooperaliye anempfing it ri rauking outside h e j2rQy-isto_ns set forth herQin shall bv, itnmediatcly disqualified ftom the registration pEQcess for hr Sec. 18-617. - Issuance and R-enmal of (&) j1pon the receipt of an application for registration, the Director-shall, as a ministerial duty QQml2lete processing and issue a Notice of Completed registration and place the collgetive or cooperative on the rpgistratiQn list within 30 calendar days- to be tolled it and only if, requested by the, -applipant to allow processing time, unless The application is incomUlete or ina The applicant has -failed to provide-infonnation reasonably negessau for processing Lhe registration application or has knowingly answered an application question or requeaLfor infinnation • The application seeks registration for a medical cannabis collective or cooperative that is locati4within 600 fl, of a school as herein defined, or is not loc in a 61., -CAP C5, MI. City, opecalion in the P or C-SM City prior use district of the or that cannot to Decemb pr 3 1, 2011; or plozide evidence of LQ No California Stato Board of Equalizatio-n- Seller's Pennit has begn granted for the applicant y cooperative; or applicant licensed p-hysician actively making patient - • -j1 • (b) Tf the Direglor fails to either issue a Notice of Completed Registration or de days 30 applir,atiQn for registration in writing Stating the +1 • denial, witbin calendar + of CDinp-lde-d receipt of the application, the registration shall be deemed coml2lete,, the Notice deemed bp, Registration 1.. 1 1 issucd, and the collective or cooperative to on the reg6stration businus license lis� and Lhms deemed eligible-for a Certificate of Occui2ancy and gross receipts as below Once all available Notice-, of Cumpleted Registration are issued or deemed issued, no ♦ : Completed 1' • 1" . 1 applif,alions will 1 " accepted or ' x : ._ 1 -, . 1 until _ time as additional Nofices ,., .1 ! . .1 ►, 1'1 .11 •1., \• • +1 1 1 � � c •1 10 applications will then bet en and will bt considued provided herein h e fimely filing ®f a new annlication therefore. n application lm filed not IaWr than 30 calendaE days prior W tho oxpimtiQn of the registratiQn, but nQ earlier than 60 calendar days prior to the ex�irati_on of the registration. A registration may be renevmcd fa additional ri f twQ years mi in n appliQation tQ Lhe, Diregto f m R i r n 1 n r istration li coUdive or cooperatiye 1 li i r f n hi h shall be issued a ministerial duty within 30 calendar days fto be tolled if and only iLusted by the ap lip cant 0 allm time for inspection or for work requi_ed en r inspe tion' I wring which time the standard building ilding and fire inspections shall be completed or dee ,d completed and applicants allmnd time a theyrequest to complete any work required pQr inspection The CertiLate of Occupy shall ilhDut regard to my parking requirements, hih shaLb.QAccmed or i If the Certificate of Occupancy is not r de iod in a writing in n therefore, n this time it shall be deemed issued. (g) Once issued its Certificate of Occupancy, a coorative Qr collective shall be eligible for gross receipts business n s?, which.shall hQ issued as a ministerial dia immedialely upm annlication. r • M 1 _ =M . r Violation of any of the following, standards that rises to the level of a_ en rsistgnt public nuisance in faQt that ,cannot be abated through feasible conditions of ope at�ion shall be grounds for batement lijirsuanA IQ Chap 17-of this (.a) CQUectiYes and cooperativos shall meet all Lhe qperating n r the i ni f �iedical cannabis required n t to Califania Health amd Safety ° n 11362.5 and 11362.7 et sect„ by this Article, and by the 2008 Attomev General's Guidelines for the Security and Non-Divers' Qn Qf Mari' uana a for Medical Collectives and cooperatives shall be operated only as collectives or cooperatives with a i�gmbership consisting x e i r i h ID r rim f 11 caregivers, which membuship siMs shall be affirmatively ri i (Q) Collectives and cooperatives shall exghange, sell, transfer, and distribute only cannabis cultivated, ma ufa=red;, or processed in the State of California and that has not left the State before arriving; at the collective r cooperativt, and Lhat has n cultivated only and i only its rifi m tmbjus in a dmd-dmit Qf production and consumption. Mediral mnadbis ollectiYes and i h ll possess only 1 n i f dried cannabis and cannabis plants to meet t e personal medical needs of_ heir members, Medical cannabis collfctives and ll nol aournulate i h n is necessary to meet the personal medical needs of their members. W No medical cannabis shall be smoked, in eg sted, or otherwise consumed in the public right -of- -way within 50 feet of a collective or cooperative. Any person violating this provision shall be deemed guilty of an infraction and upon the conviction thereof shall be p niched by A fine of $100. Q The collective or cooperative shall not hold or maintain a license from the State D?,partmtnt off Alcohol 1 IQ ull alr h li r or sells l h li c beverages. Nor shall almholic r n sum ed Qn the premises in the public right -of way within 50 feet of a medical cannabis collective or cooperative. (l In order to prutpa c, nfidcntialijL the collective or cooperative may maintain records of all qualified patients with a valid identification card and primary caregivers with a valid i a cation -card-using only thr, identificatim card number i h or County pursuanito California—Hcallhand i n 11362.7 et se (i) It shall be unlawful for any collective or cooperative to employ Oy person who is not at leas18-ye ars f age. 6) It shall be unlawful for any col a t've or cooperative to allow any person who is not at least 18 years of age on the premises during hours of o erp ation unless that person is qualified patient, or a primary caregiver, and is accompanied by their parent or guardian. k Ain shall be postod ini 11 n r in i11 fll "The diyersion of cannabis for non - medical purposes is a violation of State law. Loitprin at t the locaPi!2n of a m is cannabis dispensing _ collective for an illegal purpose is prohibited by 12 California Penal Code section 647(b) N_o medical cannabis shall be smoked, ingested or Qlherwise consumed in the within fifty 50 fcQt of- a medical rannabis collectiye or cooperative," n in 14-pQint font r larger upQn 8 ' 1 der and posted at sa - . us part of such site 1. 'M_ ieeaiusn�L��a. »es�o�ue: �[s �7ra:�niertEies � �ar�J � n fY9,rv"MM�II��W�i.i1�1�WWWNfNYWI I� > > PKrm.ptm health, ) VAthin the , Am 1. 'M_ ieeaiusn�L��a. »es�o�ue: �[s �7ra:�niertEies � �ar�J � n 13 fY9,rv"MM�II��W�i.i1�1�WWWNfNYWI I� 13 PKrm.ptm MW It Am i \ 13 A R iS tWE) !2) n loegyely ef epefme as-11F. (e) iedieFl fnaf FatiVe u "quAfied o by> veluateer; > making available medioa4 ��er-vv"euteompensafien. rr rr It AM! be unlawful fer- any iper-sen er- entity te ewii, ef epefme as-11F. "medieal u "quAfied > dislf4bi#ed followingi. by> veluateer; > n "idefififieafien rr rr u 8 Cede and 113 62. S. et seq. and afety se efien It AM! be unlawful fer- any iper-sen er- entity te ewii, ef epefme as-11F. manage, eendueh > dislf4bi#ed followingi. by> veluateer; > �Tl7r � 1 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): ■ a�U t�J 17..1R.. a r s1... -..R! Y! SS S ...l�l. a .1R f 91�J. Y �I� - a� � .IRSS•:.R���s•�...�+.����+�aa. � .acsRixY�i 14 > dislf4bi#ed followingi. by> ■ a�U t�J 17..1R.. a r s1... -..R! Y! SS S ...l�l. a .1R f 91�J. Y �I� - a� � .IRSS•:.R���s•�...�+.����+�aa. � .acsRixY�i 14 (e) All tefms used in Ais {L 77 Li inc4uding but not lifnited to 9 medieal marijuana-,qualified ]S IC• SS L{ ]7 } Health and _ga tom, Code sent.,,,, 11.11'36-27 5 et se 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 MDR NOT r } of mak4ag available 7 ) pvrrpyr r _ r V. Mr. .. PMTrImm _ . a _ ... ... - - - .. (e) All tefms used in Ais {L 77 Li inc4uding but not lifnited to 9 medieal marijuana-,qualified ]S IC• SS L{ ]7 } Health and _ga tom, Code sent.,,,, 11.11'36-27 5 et se 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 } of mak4ag available 7 ) 8 7 1 medioal } . (e) All tefms used in Ais {L 77 Li inc4uding but not lifnited to 9 medieal marijuana-,qualified ]S IC• SS L{ ]7 } Health and _ga tom, Code sent.,,,, 11.11'36-27 5 et se 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 any product, other than that which is clearly and traditionally incidental and essential to a particular retail activity. (b (e) A hookah parlor as defined in section 41 -73.5 of this Code. 4c� (-}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 .....300,000.00 0.20 per 1,000.00 to .....600,000.00 0.15 per 1,000.00 to .....1,000,000.00 16 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 1,000.40 to .....$500,000.00 0.20 per 1,000.00 to .....1,000,000.00 0.15 per 1,400.00 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"—Junk 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: Eve person engaged in a cannabis business not h specifically—taxed by other_ business x r f this Chapter. 1 pay a business x of 0 f r 1,000, 00 f grQss recei or fractional pail thereof. For the Durpose of this Section, "cannabis business" means business activity 1 in but not limited hauestin.g, transporting, manufacturing, compounding, n n r preparing, in k wholesale, mt it sales f marijuana, any f the plant Cannabis i its riv specifically includes medical cannabis transfers by collectives and cooperatives, and it specifically medical r f r s by 12rim= caregiveFs h it life patients as defined in Chapter 18 Article XIII o this Code. This is h only i of Santa Ana tax applicable i 1 gannabis collectives coop .rag fives, and it applies only prospectively_ The City shall make no claim, curreni,. retroactive,- i e for payrinent by ALiy medical cannabis collective or cooperat ' 17 of any other City tax except for the City v portion of any Sales Tax collected by the California State Board of Equalization. (d) This tax shall be payable in quarterly installment payments bar any organization falling under Us 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 S 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. 6IX"A-01k, 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. W