HomeMy WebLinkAbout75B - PH - RE ORD AMND 2017-02REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 19, 2017
TITLE:
PUBLIC HEARING — ORDINANCE AMENDMENT
NO. 2017-02 TO AMEND CERTAIN SECTIONS
OF CHAPTER 18 OF THE SANTA ANA
MUNICIPAL CODE (MEDICAL MARIJUANA
COLLECTIVES/ COOPERATIVES) — CITY OF
SANTA ANA, APPLICANT
(STRATEGIC PLAN NOS. 3, 2, 3, 5
0
C MA AGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1 " Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Adopt an ordinance approving Ordinance Amendment No. 2017-02.
BACKGROUND
On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana Regulatory
Program ordinance ("Measure BB") which was codified in sections of chapters 18 and 21 of the
Santa Ana Municipal Code (SAMC). Following the adoption of Measure BB, the City established
an implementation plan, enforcement program, administrative policies, and best practices. Since
then, 16 of the 20 permitted medical marijuana collectives/cooperatives have opened retail
dispensaries where medical marijuana is sold.
In May 2016, following initial implementation, the City Council amended Chapter 18 to require
that applicants identified on the Regulatory Safety Permit (RSP) Eligibility List following the
February 5, 2015 independent selection process (lottery) submit a completed RSP application
within four (4) months of April 5, 2016. Failure to submit a completed RSP application by that
deadline effectively disqualifies the applicant from the RSP Eligibility List and the waitlist. The
amendment also established a six (6) -month deadline to submit an RSP for any new
collective/cooperative selected from the waitlist after August 5, 2016.
As of July 2017, 16 of the 20 selected collectives/cooperatives have opened. The remaining four
(4) collectives/cooperatives have submitted the required RSP applications and/or project plans
required in order to open. No collective/cooperative from the selected 20 is outstanding as of this
writing. To facilitate activation of the waitlist in a timely manner for future entities listed on the
waitlist, the City of Santa Ana proposes to amend Chapter 18 to change the deadline to submit
an RSP application from six to three months following selection from the waitlist.
In addition, on June 5, 2017 the City Council amended Chapter 18 to streamline and clarify
administrative procedures, remove certain provisions, and treat collectives/cooperatives like other
7513-1
Ordinance Amendment No. 2017-02 — Amending Certain Sections of Chapter 18 (Medical
Marijuana Collectives/Cooperatives) of the Santa Ana Municipal Code
September 19, 2017
Page 2
commercial establishments. Staff inadvertently left the signage section out of the Ordinance,
which meant that it was not codified. This ordinance captures the Council's desire to apply all the
same sign regulations in the Zoning Code to the collectives/cooperatives as with any other
business.
DESCRIPTION
Table 1 — Proposed Amendments to Measure BB
Item
Current Ordinance
Proposed Amendment
Impact
RSP Deadline
Requires the 20 selected
Reduces the six-month RSP
Facilitates activation of the
collectives/cooperatives to
submittal deadline to three
waitlist in a timely manner
submit an RSP application
(3) months.
and ensures that all 20
within six months of selection
collectives/cooperatives have
from the waitlist
a fair chance of opening
Signage
Applies same sign standards
Allow installation of wall
Applies same rules that
as any other commercial
signs in compliance with the
apply to any other
business, but continues to
standard sign code
commercial establishment
prohibit illumination (typo)
contained within Article XI of
Chapter 41 (Zoning),
including allowing
illumination
Staff has reviewed the proposed amendments to ensure consistency with other provisions of the
Santa Ana Municipal Code, including Chapter 41 (Zoning). Based on the information and
analysis in this report, staff recommends adopting Ordinance Amendment No. 2017-02.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #3 - Economic Development,
Objective #2 (create new opportunities for business/job growth and encourage private
development through new General Plan and Zoning Ordinance policies), Objective #3 (promote a
solutions -based customer focus in all efforts to facilitate development and investment in the
community), and Objective #5 (leverage private investment that results in tax base expansion
and job creation citywide).
FISCAL IMPACT
There is no fiscal impact associated with this action.
Candida Neal, AICP
Acting Executive Director
Planning & Building Agency
AP:rb ap\reports\Staff Reports for CC \ OA2017-02.=.09192017
Exhibit: 1. Ordinance
75B-2
AP 9.5.17
ORDINANCE NO. NS-XXXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
ANA AMENDING CERTAIN SECTIONS OF CHAPTER 18 OF THE
SANTA ANA MUNICIPAL CODE PERTAINING TO MEDICAL
MARIJUANA COLLECTIVES (SECTION 18-613 AND SECTION 18-
617.1 OF ARTICLE XIII OF CHAPTER 18)
THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines and
declares as follows:
A. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical Marijuana
Regulatory Program ordinance ("Measure BB") allowing up to twenty (20) medical
marijuana retail cannabis collectives/cooperatives ("dispensaries").
B. Following the adoption of Measure BB, the provisions of the measure were codified
in Chapters 18 and 21 of the Santa Ana Municipal Code. The City also established
an implementation plan, enforcement program, administrative policies, and best
practices.
C. On June 20, 2017, the City of Santa Ana adopted an Ordinance (Ordinance No.
2918) amending Chapter 18 to allow the following modifications to the existing
medical marijuana ordinance/Measure BB: 1. Increased signage opportunities, 2.
Increased hours of operation, 3. Eliminate cash reserve limits, 4. Allow delivery
services, 5. Guidelines for Financial audit requirements, 6. Adoption of
administrative procedures, 7. Added definitions to the ordinance, 8. Allowed
Transferability of Collective/Cooperative Business License. The amendments will
take effect on August 5, 2017.
D. Following the June 20, 2017 City Council adoption of Ordinance No. 2918,
additional amendments were identified to address a small error in the signage
provisions and to ensure timelier submittal of Regulatory Safety Permit (RSP)
applications.
E. All provisions of the Santa Ana Municipal Code which are repeated herein are
repeated solely in order to comply with the provisions of section 418 of the Charter
of the City of Santa Ana. Any such restatement of existing provisions of the Code is
not intended, nor shall it be interpreted, as constituting a new action or decision of
the City Council, but rather such provisions are repeated for tracking purposes only
in conformance with the Charter.
Section 2. Pursuant to the California Environmental Quality Act ("CEQA") and the
state CEQA Guidelines, the adoption of this Ordinance is exempt from CEQA review
pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it
Ordinance No. NS-XXXX
75B-3 Page 1
can be seen with certainty that there is no possibility that the project may have a
significant effect on the environment. As a result, a Notice of Exemption will be filed upon
the adoption of this ordinance.
Section 3. Article XIII of Chapter 18 of the Santa Ana Municipal Code, Section 18-
613, subdivision (c) is hereby amended to read in full as follows:
Sec. 18-613. - Operating Standards.
(a) At all times the collective is open, a collective shall provide at least one security guard who is
licensed, possesses a valid Department of Consumer Affairs "security guard card", and has a
valid Santa Ana Business License.
(b) The security guard and collective personnel shall monitor the site and the immediate vicinity
of the site to assure that patrons immediately leave the site and not consume medical
marijuana in the vicinity of the collective or on the property or in the parking lot.
(c) Exterior signage shall comply with Article XI of Chapter 41 of the Santa Ana Municipal Code
and t do ex4emall„ te.� n., n ± a, Interior signage or advertising may not be
iia iimjr�-noc __ _� � ....�.��... ..
visible from the exterior. Collectives and dispensaries must comply with the advertising and
marketing provisions of Business and Professions Code §§ 26150-26155.
(d) No recommendations from a doctor for medical marijuana shall be issued on-site.
(e) There shall be no on-site sales of alcohol or tobacco products, and no on-site consumption of
food, alcohol, tobacco or marijuana by patrons.
(f) Hours of operation shall be limited to: 7:00 a.m. to 11 p.m. daily. No licensed
dispensary/collective shall be open to the public between the hours of 11:01 p.m. and 6:59
a.m. of any day.
(g) The property provides a sufficient odor absorbing ventilation and exhaust system so that odor
generated inside the property is not detected outside the property, anywhere on adjacent
property or public rights-of-way, or within any other unit located within the same building as
the collective.
(h) A collective shall only dispense medical marijuana to qualified patients and their caregivers
as defined by California Health and Safety Code § 11362.5 (Proposition 215). This shall
include possession of an original valid doctor's recommendation, not more than one (1) year
old, for medical marijuana use by the patient.
(i) A collective shall notify patrons of the following both verbally and through posting of a sign in
a conspicuous location:
(1) Use of medical marijuana shall be limited to the patient identified on the doctor's
recommendation. Secondary sale, barter or distribution of medical marijuana is a crime
and can lead to arrest.
(2) That loitering on and around the collective site is prohibited by California Penal Code §
647(e) and that patrons must immediately leave the site and not consume medical
marijuana in the vicinity of the collective or on the property or in the parking lot.
(3) Forgery of medical documents is a felony crime.
(4) A warning that patrons may be subject to prosecution under federal marijuana laws.
Ordinance No. NS-XXXX
75B-4 Page 2
(5) That the use of medical marijuana may impair a person's ability to drive a motor vehicle
or operate machinery.
Q) A collective shall not provide marijuana to any individual in an amount not consistent with
personal medical use.
(k) Reserved.
(1) No one under twenty-one (21) years of age shall be permitted to enter establishment, unless
such person is a qualified patient and is accompanied by his or her primary caregiver,
licensed attending physician, parent(s) or documented legal guardian.
(m) A collective shall provide the name and phone number of an on-site staff person to the police
department and the Code Enforcement Division of the Planning and Building Agency for
notification if there are operational problems with the establishment.
(n) Each collective operator(s) and employees shall complete a criminal background check.
Employees, managers or volunteers may not have been convicted of, or plead guilty/no-
contest to a felony or misdemeanor drug charge within the past four (4) years.
(o) Marijuana shall not be grown or cultivated at collective sites, except that cuttings of the
marijuana plant may be kept or maintained on-site for distribution to qualified patients and
primary caregivers as follows:
(1) The cuttings shall not be utilized by a collective as a source for the provision of marijuana
for consumption on-site, however, upon provision to a qualified patient or primary
caregiver, that person may use the cuttings to cultivate marijuana plants off-site for their
own use and they may also return marijuana from the resulting mature plant for
distribution by the collective.
(2) For the purposes of this paragraph, the term "cutting" shall mean a rootless piece cut
from a marijuana plant, which is no more than six (6) inches in length, and which can be
used to grow another plant in a different location.
(p) A collective shall comply with applicable provisions of the California Health and Safety Code
§§ 11362.5 through 11362.83, inclusive.
(q) If food is distributed, the collective shall comply with all relevant state laws and city
ordinances pertaining to the preparation, distribution and sale of food.
(r) The location, interior and exterior, shall be monitored at all times by web -based closed-circuit
television for security purposes. The camera and recording system must be of adequate
quality, color rendition and resolution to allow the ready identification of any individual
committing a crime anywhere on or adjacent to the location. The recordings shall be
maintained for a period of not less than ninety (90) days. The police department may request
the recordings in connection with an investigation. If the recordings are not voluntarily
provided, the police department may seek a warrant or court order for the recordings.
(s) The location shall have a centrally -monitored fire and burglar alarm system and the building
or the portion of the building where the collective is located shall contain a fire -proof safe.
(t) No manufacture of concentrated cannabis in violation of California Health and Safety Code
section 11379.6 is allowed.
(u) No collective shall operate for profit. Cash and in-kind contributions, reimbursements, and
reasonable compensation provided by members towards the collective's actual expenses of
Ordinance No. NS-XXXX
75B_5 Page 3
the growth, cultivation, and provision of medical marijuana shall be allowed provided that
they are in strict compliance with State Law. All such cash and in-kind amounts and items
shall be fully documented.
(v) If the collective operator is not the owner of the property where the collective is to operate,
the operator shall provide evidence that the property owner(s) consent to the operation of a
collective on the property.
(w) Collectives must obtain and maintain a valid City business license at all times as a condition
for receiving, renewing, and maintaining their regulatory safety permit.
(x) Occupancy shall not exceed that required under the Uniform Building Code and Uniform Fire
Code, and the maximum occupancy load shall be posted at the main entrance.
Section 4: Article X111 of Chapter 18 of the Santa Ana Municipal Code, Section 18-617.1,
subdivision (e) is hereby amended to read in full as follows:
Sec. 18-617.1 - Cooperative/collective registration required.
(a) Within 30 days after the adoption of this Chapter, the Director of Planning and Building shall
prepare Cooperative/Collective registration application forms and a related administrative
policy. Each collective interested in operating pursuant to this article may submit an
application together with a non-refundable processing fee in an amount established by the
City Council. Within 60 days after the adoption of this article, the Director shall stop accepting
applications and process all applications received.
(b) The Director or his or her designee shall determine whether each application demonstrates
compliance with this article. Each application that is in compliance with this article shall be
placed on the "Qualified Registration Applicant List" and the Director shall notify the applicant
in writing that it is a "Qualified Registration Applicant."
(c) Once all applications are processed, the Director shall hold an independent selection process
("lottery") in an open and public location and select 20 applications. The 20 applications
chosen through the independent selection process (lottery) will be placed on the "Regulatory
Safety Permit ("RSP") Eligibility List." Each applicant on the RSP Eligibility List may then
choose to file an application for a RSP pursuant to section 18-617.2. Applicants identified on
the RSP Eligibility List following the February 5, 2015 independent selection process (lottery)
must submit a completed RSP application within four (4) months of April 5, 2016 and no later
than August 5, 2016. Failure to submit a completed RSP application by that deadline will
disqualify the applicant from the RSP Eligibility List and the Waitlist described in subsection
(d).
(d) Qualified Registration Applicants will appear on the "Qualified Registration Applicant List" in
the order that they are selected during the independent selection process (lottery). This list is
the Waitlist. The Waitlist will become active if (1) an applicant on the RSP Eligibility List is
disqualified from that List; (2) a location appearing on the RSP Eligibility List becomes
available; or (3) a location not appearing on the RSP eligibility list becomes available. A
Qualified Registration Applicant's ability to move from the Waitlist to the RSP Eligibility List is
determined by the applicant's proposed medical marijuana collective location and the
applicant's position on the Waitlist.
Ordinance No. NS-XXXX
75B-6 Page 4
(e) A Qualified Registration Applicant that moves from the Waitlist to the RSP Eligibility List must
submit a completed RSP application within si*{&) three 3 months following issuance of a
written notice advising the applicant of that opportunity. Failure to submit a completed RSP
application by that deadline will disqualify the applicant from the RSP Eligibility List and the
Waitlist.
(f) The Director shall maintain the Waitlist and update it on an annual basis. A Qualified
Registration Applicant on that Waitlist must submit a written request each year to maintain its
status on the waitlist. The Director may place new applicants on the Waitlist in the order in
which the new registration applications are received.
Section 5. If any section, subsection, sentence, clause, phrase or portion of this ordinance
is for any reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance.
The City Council of the City of Santa Ana hereby declares that it would have adopted this
ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective
of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions
be declared invalid or unconstitutional.
ADOPTED this day of
APPROVED AS TO FORM
Sonia R. Carvalho, City Attorney
By: &�,C—
Lisa Storck
Assistant City Attorney
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Miguel A. Pulido
Mayor
Councilmembers:
Councilmembers:
Councilmembers:
Councilmembers:
2017.
Ordinance No. NS-XXXX
75B-7 Page 5
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached
Ordinance No. NS- to be the original ordinance adopted by the City Council of the
City of Santa Ana on 2017, and that said ordinance was published in
accordance with the Charter of the City of Santa Ana.
Date:
Clerk of the Council
City of Santa Ana
Ordinance No. NS-XXXX
75B-8 Page 6