Sec. 21-133. Commercial cannabis businesses—Annual business license tax assessment.
Every person engaged in a “commercial cannabis business” or “commercial cannabis activity” shall pay an annual business license tax as outlined below. This Article shall not apply, except with respect to medical marijuana cooperatives/collectives (also referred to as medicinal cannabis retail businesses) which are vertically and/or horizontally integrated with commercial cannabis businesses, to medical marijuana cooperatives/collectives which are governed by Article XII of this Chapter, or to personal cultivation as defined in section 40-101(b) of this Code. (a) For each branch establishment or separate property location of a commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location, the higher of the two (2) following tax rates shall be due to the City for each monthly reporting period:
(1) Up to ten percent (10%) of each dollar of gross receipts received or generated for each monthly reporting period.
(2) Up to $35.00 per square foot (annual tax rate) prorated monthly to onetwelfth (1/12th) of the annual tax rate amount. (b) These tax rates shall not be adjusted for inflation pursuant to section 21-121 of this Chapter.
(c) Notwithstanding the tax rates imposed herein under subsection (a), the City Council may, in its discretion, at any time by resolution, implement any lower tax rate it deems appropriate, and may by resolution increase such tax rate from time to time, not to exceed the maximum rates established by subsection (a). (d) As of the operative date of this Article, the business license gross receipts tax rates and square footage tax rates application to specific commercial cannabis business activities shall be established as follows:
Exhibit 1
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Commercial Cannabis Business
Activity
Gross Receipts
Tax Rate
Gross Square
Footage Tax Rate
Adult-use Cannabis Retail Business
(including Delivery, but not including
Consumption Lounges and
Temporary Consumption and/or
Special Events) (effective beginning
December 21, 2018)
8% $ 25.00
Consumption Lounges and
Temporary Consumption and/or
Special Events) (effective
beginning July 1, 2022)
8% $ 0.00
Cultivation
(effective December 21, 2018
through June 30, 2022)
6% $ 10.00
Cultivation
(effective beginning July 1, 2022) 4% $ 7.00
Distribution
(effective December 21, 2018
through June 30, 2022)
6% $ 4.00
Distribution
(effective beginning July 1, 2022) 4% $ 3.00
Manufacturing
(effective December 21, 2018
through June 30, 2022)
6% $ 10.00
Manufacturing
(effective beginning July 1, 2022) 4% $ 7.00
Shared Manufacturing
(effective beginning July 1, 2022) 4% $ 0.00
Testing Facility or Testing
Laboratory (effective December 21,
2018 through June 30, 2019)
5% $ 1.50
Exhibit 1
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Commercial cannabis businesses not having a fixed place of business within the city but conducting regular, non-incidental commercial cannabis business activities within the city shall be subject to the gross receipts tax rate(s) as set out in the table above based on the category/categories of commercial cannabis activity conducted.
However, such out-of-town commercial cannabis businesses shall not be subject to any gross square footage tax rate(s).
(e) As part of the annual gross receipts/square footage tax(es) imposed by this Article, each commercial cannabis business located within the city shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each branch establishment or separate property location of the commercial cannabis business transacted and carried on in the city, and for each separate type of commercial cannabis business conducted at the same location. Commercial cannabis businesses having no fixed place of business within the city shall be exempted from this requirement. Provided that commercial cannabis microbusinesses shall pay a minimum basic rate of two thousand dollars ($2,000.00) annually for each branch establishment or separate property location of the commercial cannabis business transacted and carried on in the city, but not for each separate type of commercial cannabis business conducted at the same location.
(f) In the event the City should in the future permit additional categories of commercial cannabis business activity, as may from time to time be licensed by the State of California, such categories of commercial cannabis activates shall be subject to the same maximum tax rates as imposed herein. The City may by ordinance of the City Council initially set the required gross receipts/gross square footage tax rates based on category of cannabis business activity at lesser rates as may be deemed appropriate by the City Council.
(g) For purposes of this Article, a commercial cannabis business is not considered to be a business or person having a “specified exemption” or “specified exclusion” from business license taxation as set forth in sections 21-48 and 21-49 of this Chapter. (h) For purposes of this Article any person claiming an exemption from the gross receipts tax rate component of the combined gross receipts/square footage tax imposed under this Article on the basis of a claim of being a qualified "nonprofit organization" shall have the burden of substantiating their claim to the same extent and in the same manner as a marijuana collective/cooperative in accordance with section 21-127(a)(6) of this Chapter.
(i) Cannabis businesses shall not pass the taxes imposed by this Article through to an adult-use cannabis retail business customer or commercial cannabis business customer in any fashion except as part of the basic product sales and/or service price.
Exhibit 1
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(j) Definitions. For purposes of this Article, the following terms have the following meanings:
(1) “Adult-Use cannabis retail business” as defined in section 40-2(4) of this Code.
(2) “Commercial Cannabis Activity” as defined in section 40-2(9) of this Code. (3) “Commercial cannabis business” as defined in section 40-2(10) of this Code excluding medical marijuana collectives/cooperatives also referred to as medicinal cannabis retail sales.
(4) “Cultivation” as defined in section 40-2(11) of this Code. (5) “Delivery” as defined in section 40-2(13) of this Code. (6) “Distribution” as defined in section 40-2(16) of this Code. (7) "Gross receipts" – section 21-3 of this Chapter notwithstanding, “gross receipts” for the purposes of this Article shall mean:
(A) Transfer of title or possession, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration including any monetary consideration for cannabis, including, but not limited to, membership dues, reimbursements provided by members, regardless of form, or the total amount of cash or in-kind contributions, including all operating costs related to the growth, cultivation, manufacturing, distribution, testing, or provision of cannabis or any transaction related thereto.
(B) Anything else of value obtained by an a cannabis business; (C) The total amount of the sale price of all sales and services; (D) The total amount charged or received for the performance of any act, service or employment of whatever nature it may be, whether or not such service, act or employment is done as a part of or in connection with the sale of goods, wares, or merchandise (whether at wholesale or retail), for which a charge is made or credit allowed, including all refunds, cash credits and properties of any amount or nature; (E) Any amount for which credit is allowed by the seller to the purchaser without any deduction therefrom, on account of the cost of the property sold, the cost of materials used, the labor or service cost, interest paid or payable, losses, or any other expense whatsoever; provided that cash discounts allowed or payment on sales shall not be included;
Exhibit 1
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(F) The amount of any federal manufacturer's or importer's excise tax included in the price of property sold, even though the manufacturer or importer is also the retailer thereof;
(G) The amount of any California state cannabis excise tax or state cannabis cultivation tax included in the price of the product; (H) “Gross receipts" shall not include the following:
i. The amount of any federal tax imposed on or with respect to retail or wholesale sales or the sale of services whether imposed upon the cannabis business or the consumer whenever the amount of federal tax is authorized by law to be stated and passed through to customers as a separate charge.
ii. Any California state, county, or city sales or use tax, including any add-on, district, or transaction and use tax, required by law to be included in or added to the purchase price and collected from the consumer or purchaser, or such part of the sales price of any property previously sold and returned by the purchaser to the seller which is refunded by the seller by way of cash or credit allowances given or taken as part payment on any property so accepted for resale; or
iii. The amount of the sale price of business personal property (all property owned or leased by a cannabis business operator used in the operation cannabis business activities, including but not limited to: furniture, fixtures, and business equipment); real property, including land, buildings and other improvements. iv. The amount of equity contributions, investments, and/or loan proceeds to cannabis business’ operation, and/or proceeds from the sale or transfer of cannabis business’ retail or commercial cannabis business.
v. The amount of interparty sales and/or transfers of goods within a single vertically and/or horizontally integrated cannabis business, where the sales or transfers goods are between two or more commercial cannabis business licensees (excluding testing facilities or testing laboratories), or one or more said commercial cannabis business licensee(s) and one or more medicinal cannabis retail business licensee(s), as set forth in accordance with section 21-131.2 and/or section 21-142.
(I) ”Gross receipts" shall be calculated without any deduction on account of any of the following:
Exhibit 1
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i. The cost of tangible or intangible property sold or bartered; ii. The cost of materials or products used, labor or service cost, interest paid, losses, or other expense;
iii. The cost of transportation of cannabis, or other property or product;
iv. The amount of any federal or state income or franchise taxes; and
v. Any other business costs or expenses, unless otherwise specifically exempted.
(8) “Gross Square foot” or “gross square footage” for the purposes of this Article shall mean:
(A) In the case of commercial cannabis businesses licensed by the state to engage in an adult-use cannabis retail business, the gross number of square feet comprising the adult-use cannabis retail property location as confirmed by the corresponding “approved building set” or “approved certificate of occupancy” on file with the City of Santa Ana Planning and Building Agency, whichever is the greater of any square footage indicated, whether such adult-use cannabis retail business is part of an on-site vertically or horizontally integrated cannabis business or not.
(B) In the case of commercial cannabis businesses licensed by the state to engage in cultivation, the aggregate number of square feet comprising all areas of the premises under “canopy”, whether such sum is greater or lesser than the gross square footage as stated in the “approved building set” or “approved certificate of occupancy”, and whether such commercial cannabis cultivation business is part of an on-site vertically integrated cannabis business or not. “Canopy” shall mean the designated area(s) of a premise that will contain mature plants at any point in time. Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries. Canopy may be noncontiguous, but each unique area included in the total canopy calculation shall be separated by an identifiable boundary which includes interior walls, shelves, greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds, or garden plots; and if mature plants are being cultivated using a shelving system, the Exhibit 1
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surface area of each level shall be included in the total canopy calculation.
Canopy shall be subject to independent measurement and
calculation by duly authorized employees or agents of the City at the time of application for a Santa Ana Business License and annually thereafter at the time of the renewal of such license, or more often as may be deemed necessary in the discretion of the collector.
Whenever an independent canopy measurement and calculation is required under the terms of this Article or whenever the collector in his or her discretion determines that the independent measurement and calculation of a licensee’s canopy is desirable to effectuate the proper assessment or collection of the business license taxes required to be paid under the terms of this Chapter, or for any other purposes related to the express aims of this Article then a canopy measurement shall be performed and a corresponding service fee shall be applicable in the amount as specified by resolution of the City Council.
(C) In the case of commercial cannabis businesses licensed by the state to engage in distribution or manufacturing and that are not occupying the same premises with another cannabis business, the gross number of square feet as confirmed by the corresponding “approved building set” or “approved certificate of occupancy” on file with the City of Santa Ana Planning and Building Agency, whichever is the greater of any square footage indicated.
(D) In the case of commercial cannabis businesses licensed by the state to engage in distribution or manufacturing and occupying the same premises with another cannabis business, the gross number of square feet allocated by the commercial cannabis business owner/operator respectively for either distribution use or for manufacturing use, whether the combined sum of all uses is less than, equal to, or greater than the gross square footage as stated in the “approved building set” or “approved certificate of occupancy”.
The number of square feet allocated (“Allocated Square Footage”) shall be subject to independent measurement and calculation by duly authorized employees or agents of the City at the time of application for a Santa Ana Business License and annually thereafter at the time of the renewal of such license, or more often as may be deemed necessary in the discretion of the collector. Whenever an independent allocated square footage measurement and calculation is required under the terms of this Article or whenever the collector Exhibit 1
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Ordinance No. NS-XXX
in his or her discretion determines that the independent measurement and calculation of a licensee’s allocated square footage is desirable to effectuate the proper assessment or collection of the business license taxes required to be paid under the terms of this Chapter, or for any other purposes related to the express aims of this Article then an Allocated Square Footage measurement shall be performed and a corresponding service fee shall be applicable in the amount as specified by resolution of the City Council. (E) In the case of commercial cannabis businesses licensed by the state to engage in testing facilities or testing laboratory businesses, the gross number of square feet comprising such commercial cannabis business’ property location as confirmed by the corresponding “approved building set” or “approved certificate of occupancy” on file with the City of Santa Ana Planning and Building Agency, whichever is the greater.
(9) “Manufacturing” as defined in section 40-2(22) of this Code. (10) “Microbusiness” as defined in section 40-2(24) of this Code. (11) “Consumption Lounge” as defined in section 40-2(39.1) of this Code. (12) “Retail businesses” as defined in section 40-2(40) of this Code. (13) “Shared manufacturing” as defined in section 40-2(22.5) of this Code. (14) “Temporary Consumption” and “Special Events” as defined in section 40- 2(39.2) of this Code.
(15) ”Testing Facility” or “Testing Laboratory” as defined in section 40-2(44) of this Code.
(16) “Wholesale" as defined in section 40-(46) of this Code. (k) Modification, repeal or amendment. The City Council may repeal the ordinance codified in this Article, or amend it in a manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. The City Council may likewise by ordinance adopt and add additional provisions to any other Article of this Chapter and relate them to this Article, or amend any existing provisions of any Article of this Chapter as they may already relate to this Article in any manner which does not result in an increase in the tax or taxes imposed herein, without further voter approval. If the City Council repeals said ordinance or any provision of this Article, it may subsequently reenact it without voter approval, as long as the Exhibit 1
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reenacted ordinance or section does not result in an increase in the tax or taxes imposed herein.
(l) Administration—Rules, regulations and guidelines. In order to aid in the city's collection of taxes due under this Article and to ensure that all commercial cannabis businesses are taxed consistently to the best of the city's ability, the collector, with the concurrence of the city attorney, may promulgate rules, regulations, and guidelines, to implement and administer this Article including, but not limited to rules, regulations, and guidelines harmonizing other provisions of this Chapter with the provisions of this Article in any manner not inconsistent with the intent of this Article and which does not result in an increase in the tax or taxes imposed herein. The collector may also, with the concurrence of the city attorney, interpret or clarify the methodology of the tax, or any definition applicable to the tax, so long as such interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Article. (m) Occasional transactions—Exemptions.
(1) The provisions of this Article shall not apply to persons having no fixed place of business within the city who come into the city for the purpose of transacting a specific item of commercial cannabis business at the request of a specific client or customer, incidental to a commercial cannabis business principally established elsewhere, provided that such person does not come into the city for the purpose of transacting such business on more than three (3) days during any calendar year. (2) For any person not having a fixed place of business within the city who comes into the city for the purpose of transacting commercial cannabis business activities, the business license tax(es) payable by such person may be apportioned by the collector in accordance with this Chapter. (n) Reporting and remittance.
(1) Beginning as set forth in subsection (r) below, and monthly thereafter, each commercial cannabis business required to pay a tax or taxes based on gross receipts under this Article (except qualified nonprofit organizations exempt from taxes measured by income or gross receipts), shall report to the city any gross receipts received during the preceding monthly reporting period. In addition, each cannabis business (including qualified nonprofit organizations) required to pay a tax or taxes based on square footage shall report to the city the gross square footage of the cannabis business’ property location. Every cannabis business shall then compute the business license taxes at both the gross receipts rate and the gross square footage rate - prorated monthly to one-twelfth (1/12th) of the annual tax rate amount - and shall then remit to the city the amount of Exhibit 1
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the higher of the two tax calculations due and owing during said period in accordance with section 21-133, subsection (d). In the case of a qualified nonprofit organization only the gross square footage computation shall be made and the amount of such calculation shall represent the amount due and owing during said period. All reporting and remitting made shall be done in accordance with instructions from the collector and shall be made using forms provided or approved by the collector.
(2) For purposes of this section, month shall mean calendar month and shall include any fraction of a month. Taxes shall begin to accrue on the date that a person or entity first receives a business license or other city permit to operate as a commercial cannabis business or upon the operative date of this Article should a person or entity already possess a commercial cannabis business license or other city permit to operate as a commercial cannabis business.
(3) The payment of the two thousand dollars ($2,000.00) minimum basic rate gross receipts tax required annually for each separate branch location or separate property location of the business in accordance with this section, shall be made annually prior to the beginning of the fiscal year beginning April first of the current year and expiring on the 31st day of March of the following year. In the case of a new commercial cannabis business the minimum basic rate gross receipts tax shall be paid in advance prior to any new business activity being undertaken. Every new licensee shall pay in advance an amount equal to one-quarter (¼) of the annual minimum basic rate gross receipts tax, for each quarter and fraction of a quarter remaining during the period for which the new license is issued. (o) Delinquent date—Penalty. Any individual or entity who fails to pay the taxes required by this Article when due shall be subject to penalties and interest as set forth in accordance with this Chapter. The collector is not required to send a delinquency or other notice or bill to any person subject to the provisions of this Article and failure to send such notice or bill shall not affect the validity of any tax or penalty due under the provisions of this Article.
(p) Business license tax certificate/receipt—Required. There are imposed upon all persons engaged in transacting and carrying on any commercial cannabis business activity in the city taxes in the amounts prescribed in this Article. It shall be unlawful for any person, either for him or herself or for any other person, to commence, transact or carry on any business in the city without first having procured a business license from the city under this Chapter and having paid the taxes set forth in this Article, and without complying with any and all applicable provisions contained in this Chapter. The carrying on of any commercial cannabis business activity without complying with all the provisions of this Article shall constitute a separate violation Exhibit 1
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of this Chapter for each and every day that such commercial cannabis activity is so carried on.
(q) Classification of business license assessment type—Term and renewal. The business license issued to commercial cannabis businesses shall be classed as a gross receipts assessment type, issued for the same term of license as set forth in subsection 21-71(c) of this Chapter and shall be subject to renewal in accordance with sections 21-72(c), 21-73(c), and 21-77.
(r) Operative date. Upon the approval by the majority of the voters of the city at the November 6, 2018 general election, the taxes imposed by this Article shall become operative and shall be applied by the collector upon all commercial cannabis businesses.
(s) Operative date of decreased gross receipts tax rate. The gross receipts tax set initially at a rate of five (5%) percent for testing facilities or testing laboratories pursuant to subsection (d) above shall be decreased to a rate of one (1%) percent by resolution of the City Council [Santa Ana City Council Resolution No, 2019-068 as hereinabove provided for in accordance with subsection (c), which reduced rate, under the terms of said City Council resolution, shall become retroactively effective July 1, 2019.
(t) Operative date of decreased gross receipts tax rate. The gross receipts tax set initially at a rate of six (6%) percent for cultivation, manufacturing, and distribution pursuant to subsection (d) above shall be decreased to a rate of four (4%) percent by resolution of the City Council [Santa Ana City Council Resolution No, 2022-XXX] as hereinabove provided for in accordance with subsection (c), which reduced rate, under the terms of said City Council resolution, shall become effective July 1, 2022. (u) Operative date of decreased square footage tax rate. The square footage tax set initially at a rate of ten ($10) dollars per square foot for cultivation and manufacturing, and four ($4) dollars per square foot for distribution pursuant to subsection (d) above shall be decreased to a rate of seven (7%) dollars per square foot for cultivation and manufacturing, and to a rate of two ($2) dollars per square foot for distribution, and to a rate of zero ($0) dollars per square foot for shared manufacturing by resolution of the City Council [Santa Ana City Council Resolution No, 2022-XXX] as hereinabove provided for in accordance with subsection (c), which reduced rates, under the terms of said City Council resolution, shall become effective July 1, 2022.
Section 10. Section 21-135 of Article XIII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows:
Sec. 21-135. - Single property location; multiple state licenses; separate city business licenses.
Exhibit 1
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Sections 21-7, 21-8, and 21-9 of this chapter notwithstanding, separate city business licenses, issuable to commercial cannabis businesses pursuant to this article, shall be required for each separate type of commercial cannabis business activity transacted and carried on at a single city property location for which a commercial cannabis business may seek licensure by the state, or for which a state license has been approved or issued.
Provided, however, that commercial cannabis business activity transacted and carried on at a single city property location for which a commercial cannabis business may seek licensure by the state as a microbusiness, or for which a state license has been approved or issued as a microbusiness, shall in such case be required to obtain a separate city business license business for each of the commercial cannabis activities transacted and carried on.
Section 11. Social Equity. Within two (2) years of the effective date of this Ordinance on July 1, 2022, the City Council shall revisit any staff recommendations for adoption of social equity policies or a social equity program. Such policies or the program shall consider measures to assist or prioritize applications submitted by individuals with previous cannabis-related criminal histories, members of disadvantaged communities, local applicants, and/or other individuals or entities identified at the time requiring assistance with application processes and/or filing fees, local tax payments, and other related components of the commercial cannabis application and buildout process in the City. The tax revenues generated by commercial cannabis consumption lounges shall be utilized to further these goals and for the development and maintenance of social equity programs administered by the City. Such programs may include workforce training, education, and development within the Santa Ana community in the cannabis industry.
Section 12. 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.
Section 13. This Ordinance shall become effective July 1, 2022.
Section 14. The Clerk of the Council shall certify the adoption of this ordinance and shall cause the same to be published as required by law.
Exhibit 1
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Ordinance No. NS-XXX
ADOPTED this _______ day of ___________, 2022.
________________________________
Vicente Sarmiento
Mayor
APPROVED AS TO FORM
Sonia R. Carvalho, City Attorney
By: _________________________
John M. Funk
Assistant City Attorney
AYES: Councilmembers: __________________________________ NOES: Councilmembers:__________________________________ ABSTAIN: Councilmembers: _________________________________ NOT PRESENT: Councilmembers: _________________________________
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-______ to be the original ordinance adopted by the City Council of the City of Santa Ana on ________________, 2022 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
Exhibit 1
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Resolution No. 2022-XXX
RESOLUTION NO. 2022-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA ADDING A COMMERCIAL CANNABIS TAX
CATEGORY AND ESTABLISHING RELATED GROSS
RECEIPTS AND SQUARE FOOTAGE TAX RATES FOR
CONSUMPTION LOUNGES AND TEMPORARY
CONSUMPTION/SPECIAL EVENTS AND REDUCING THE
COMMERCIAL CANNABIS GROSS RECEIPTS AND
SQUARE FOOTAGE TAX RATES FOR CULTIVATION
ACTIVITIES, DISTRIBUTION ACTIVIES, AND
MANUFACTURING ACTIVITIES (INCLUDING SHARED
MANUFACTURING)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows:
A. In November 2016, the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act (AUMA or Proposition 64) was approved by the voters of the State of California. The AUMA legalized specified personal use and cultivation of marijuana for adults 21 years of age or older.
B. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) establishing state regulations and licensing for retail sales, manufacturing, distribution, delivery and testing of adult-use (also called recreational) marijuana.
C. On November 21, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult-use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. Since 2014, the City has allowed medicinal marijuana collectives/cooperatives to operate within the City pursuant to regulations set forth in Chapter 18 and Chapter 21 of the Santa Ana Municipal Code.
D. In 2018, the City Council adopted Ordinance Nos. NS-2941 and NS-2942, allowing and regulating commercial cannabis businesses.
E. A general business license tax based on the gross receipts derived from commercial cannabis businesses and gross square footage serves to generate essential funds for protecting vital City services and facilities and places such businesses on more Exhibit 2
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equal footing with existing City businesses, including medical marijuana businesses which already pay a business license tax.
F. The City Council is authorized to impose general and special taxes in order to fund municipal services and facilities, subject to requisite voter approval as set forth in Government Code section 53720 et seq.
G. The voters of the City of Santa Ana approved Measure Y (Ordinance No.
NS-2962) on November 6, 2018, for the purpose of fixing the rate of taxation for commercial cannabis businesses including delivery, distribution, manufacturing, cultivation, testing and retail sales of cannabis and related products. The taxes required to be paid under this article are declared to be required pursuant to the taxing power of the City of Santa Ana solely for the purpose of obtaining revenue and are not regulatory permit fees.
H. On September 3, 2019, the City Council adopted Ordinance No. NS-2972 amending certain sections of chapters 21 of the Santa Ana Municipal Code allowing vertical and horizontal integration of cannabis businesses; updating ownership transfers procedural standards and requirements, security deposits, and various administrative processes; updating and streamlining regulatory components; reducing cannabis testing taxes to two percent of gross receipts; and adopting a canopy measurement and square footage allocation service fee.
I. The City of Santa Ana desires to remain at the forefront of commercial cannabis by allowing and regulating commercial cannabis business activities, routinely updating and amending its ordinances, and establishing commercial cannabis gross receipts tax rates that are competitive and provide for the needs of the Santa Ana community.
J. The City of Santa Ana has a compelling interest in ensuring that cannabis is not sold in an illicit manner, in protecting the public health, safety and welfare of its residents and businesses, in preserving the peace and quiet of the neighborhoods in which these businesses may operate, and in providing access to safe and tested cannabis to residents. To ensure safe and tested cannabis, the City desires to see the establishment and successful operation of cultivation, distribution, and manufacturing (including shared manufacturing) facilities in the City.
K. Section 21-133(d) of Article XIII of Chapter 21 of the Santa Ana Municipal Code establishes current initial commercial cannabis gross receipts tax and square footage tax rates as follows:
Exhibit 2
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Resolution No. 2022-XXX
Commercial Cannabis Business
Activity
Gross Receipts
Tax Rate
Gross Square
Footage Tax Rate
Adult-use Cannabis Retail
Business (including Delivery, but
not including Consumption
Lounges and Temporary
Consumption and/or Special
Events) (effective beginning
December 21, 2018)
8% $ 25.00
Consumption Lounges and
Temporary Consumption and/or
Special Events) (effective
beginning July 1, 2022)
8% $ 0.00
Cultivation
(effective December 21, 2018
through June 30, 2022)
6% $ 10.00
Cultivation
(effective beginning July 1, 2022) 4% $ 7.00
Distribution
(effective December 21, 2018
through June 30, 2022)
6% $ 4.00
Distribution
(effective beginning July 1, 2022) 4% $ 3.00
Manufacturing
(effective December 21, 2018
through June 30, 2022)
6% $ 10.00
L. Section 21-133(c) of Article XIII of Chapter 21 of the Santa Ana Municipal Code allows the City Council by resolution to implement any lower tax rate it deems appropriate.
Section 2. The City Council hereby establishes: (1) the consumption lounge and temporary consumption/special events gross receipts tax rate; (2) the commercial cannabis cultivation gross receipts tax rate; (3) the manufacturing (including shared manufacturing) gross receipts tax rate; and (4) the distribution gross receipts tax rate at four (4%) percent, lowering it from six (6%) percent. The reduced four (4%) percent gross receipts tax rate for cultivation activities, manufacturing (including shared manufacturing) activities, and distribution activities shall become effective July 1, 2022.
Section 3. The City Council hereby establishes: (1) the consumption lounge and temporary consumption/special events square footage tax rate at zero ($0) dollars per square foot; (2) the commercial cannabis square footage tax for cultivation activities and manufacturing activities at seven ($7) dollars per square foot, and for shared Exhibit 2
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manufacturing activities at zero ($0) dollars per square foot, lowering it from ten ($10) dollars per square foot; and (3) the commercial cannabis square footage tax for distribution activities at three ($3) per square foot, lowering it from four ($4) per square foot. The reduced seven ($7) per square foot tax rate for cultivation activities and manufacturing activities, the reduced zero ($0) per square foot tax rate for consumption lounge and temporary consumption/special events and shared manufacturing, and the reduced three ($3) per square foot tax rate for distribution activities shall become effective July 1, 2022.
Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution.
ADOPTED this ____ day of ___________________, 2022.
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
John M. Funk
Senior Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers _
Exhibit 2
City Council 35 – 90 5/3/2022
Resolution No. 2022-XXX
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Daisy Gomez, Clerk of the Council, do hereby certify the attached Resolution No. 2022 - _____ to be the original resolution adopted by the City Council of the City of Santa Ana on _____________________, 2022.
Date:
Clerk of the Council
City of Santa Ana
Exhibit 2
City Council 35 – 91 5/3/2022
Resolution No. 2022-XXX
RESOLUTION NO. 2022-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA ESTABLISHING A MAP OF COMMERCIAL
CANNABIS ELIGIBLE AREAS IN WHICH COMMERCIAL
CANNABIS BUSINESSES AS DEFINED AND REGULATED
BY CHAPTERS 21 AND 40 OF THE SANTA ANA MUNICIPAL
CODE MAY OPERATE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines, and declares as follows:
A. On December 9, 2014, following voter approval, the City Council adopted Ordinance No. NS-2864 to regulate the establishment, operation, and taxation of medical marijuana collectives and cooperatives in the City. The ordinance was originally known as and subsequently became referred to as “Measure BB.”
B. In November 2016, the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act (AUMA or Proposition 64) was approved by the voters of the State of California. The AUMA legalized specified personal use and cultivation of marijuana for adults 21 years of age or older.
C. In 2017, the Governor signed into law Senate Bill 94, also known as Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), establishing state regulations and licensing for retail sales, manufacturing, distribution, delivery and testing of adult-use (also called recreational) marijuana.
D. On November 21, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult-use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. Since 2014, the City has allowed medicinal marijuana collectives/cooperatives to operate within the City pursuant to regulations set forth in Chapter 18 and Chapter 21 of the Santa Ana Municipal Code.
E. In 2018, the City Council adopted Ordinance Nos. NS-2941 and NS-2942, allowing and regulating commercial cannabis testing laboratories, and Ordinance No. NS2944, allowing commercial cannabis cultivation, manufacturing, and distribution activities.
F. The City of Santa Ana desires to remain at the forefront of commercial cannabis by allowing and regulating commercial cannabis business activities, routinely updating and amending its ordinances, and establishing commercial cannabis gross Exhibit 3
City Council 35 – 92 5/3/2022
Resolution No. 2022-XXX
receipts tax rates that are competitive and provide for the needs of the Santa Ana community.
G. Measure BB and subsequent ordinances specified that commercial cannabis business activity is permitted in the City’s light and heavy industrial zoning districts (M1 and M2) and must be located 1,000 feet from schools, parks, and properties zoned for residential uses. Proposition 64 subsequently set a minimum separation of 600 feet but allowed local jurisdictions to adopt lower or higher separation requirements.
H. Following redevelopment of industrial properties east of the Costa Mesa (SR-55) Freeway, the City Council adopted a map of commercial cannabis eligible areas on March 20, 2018 in which commercial cannabis business activities could locate subject to full compliance with applicable local, County, and State regulations.
I. Since the last adoption of the map, the increasing demand for industrial properties in Santa Ana following the COVID-19 pandemic has reduced the availability of commercial cannabis eligible properties in the industrial zoning districts, creating strain on cannabis business applicants, other business types, tenants, and property owners. A reduction of the 1,000-foot buffer to 600 feet would result in an increase of 28percent in the approximate square footage, 37percent increase of acreage of commercial cannabis eligible sites, and a 40percent increase in the approximate number of commercial cannabis eligible buildings.
J. The City of Santa Ana desires to maintain commercial cannabis businesses in locations adequately buffered from sensitive land uses such as schools, parks, and properties zoned for residential uses, while maintaining a sufficient amount of properties eligible to apply for and operate a commercial cannabis business.
K. The City of Santa Ana has a compelling interest in ensuring that cannabis is not sold in an illicit manner, in protecting the public health, safety and welfare of its residents and businesses, in preserving the peace and quiet of the neighborhoods in which these businesses may operate, and in providing access to safe, locally produced and retailed, and tested cannabis to residents and visitors.
L. In view of the foregoing, the City Council now wishes to establish a new map of areas in which commercial cannabis business, as defined and regulated by Chapters 21 and 40 of the Santa Ana Municipal Code, may operate.
M. On May 3, 2022, the City Council conducted a duly noticed public hearing to consider the proposed map included here as Attachment A.
Section 2. The City Council hereby establishes the map of commercial cannabis eligible areas, included here as Attachment A, and referenced in Santa Ana Municipal Code Sections 40-2, 40-5, and 40-6. This map reflects a minimum 600-foot distance from properties containing schools, parks, and properties zoned for residential uses.
Exhibit 3
City Council 35 – 93 5/3/2022
Resolution No. 2022-XXX
Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution.
ADOPTED this ____ day of ___________________, 2022.
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
John Funk
Senior Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers _
Exhibit 3
City Council 35 – 94 5/3/2022
Resolution No. 2022-XXX
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, DAISY GOMEZ, Clerk of the Council, do hereby certify the attached Resolution No. 2022 - _____ to be the original resolution adopted by the City Council of the City of Santa Ana on _____________________, 2022.
Date:
Clerk of the Council
City of Santa Ana
Exhibit 3
City Council 35 – 95 5/3/2022
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EUCLID ST
BRISTOL ST
EDINGER AV
SUNFLOWER AV
WARNER AV
RED HILL AV
HARBOR BLVD
RAITT ST
RAITT ST
WARNER AV
1ST ST
1ST ST 1ST ST
SEGERSTROM AVFAIRVIEW ST FAIRVIEW ST
BRISTOL ST
MAIN ST MAIN ST
ALTON AV
EDINGER AV
EDINGER AV
DYER
RD
MC FADDEN AV
MC FADDEN AVGRAND AV
DYER RD
FLOWER ST FLOWER ST
WARNER AV
MACARTHUR BLVD
MACARTHUR BLVD
BROADWAY BROADWAY
Map 3
Map 1
Map 2
Heritage
Elem
Russell
Elem
Newhope
Elem
MacArthur
Fundamental
Intmd
Jackson
Elem
Fitz Intmd
Lincoln
Elem
Adams
Elem
Cesar E.
Chavez High
Harvey Elem
Century High
Diamond Elem
Franklin
Elem
Edward B. Cole Academy
Carr
Intmd
Greenville
Fundamental Elem
Godinez Fundamental
High School
Madison
Elem
Jefferson
Elem
Thorpe Fundamental
Kennedy
Elem
Lorin
Griset Academy
Sepulveda
Elem
Lathrop
Intmd
Lowell
Elem
McFadden Intmd
Martin
Elem
Esqueda Elem
King
Elem
Heninger
Elem
Monte
Vista
Elem
Monroe Elem
Edison
Elem
Villa Fundamental Intmd
Pio
Pico
Elem
Saddleback High
Santa
Ana
High
Segerstrom
High
Taft
Elem
Roosevelt Elem Walker
Elem
Valley High
Washington
Elem
Mitchell Child
Development Center
Saint
Anne
Saint
Barbara
Elem
Mater Dei
High School
Calvary
Chapel High
Maranatha
Christian
Academy
Ari Guiragos
Minassian
Armenian
Bethel
Baptist
School of
Our Lady
Adams
Park
Angels
Community Park Birch Park
Bomo
Koral
Park
Centennial
Regional
Park
Delhi
Park
Friendship Park
Heritage
Park
Jerome
Park
Lillie
King
Park
Madison
Park
McFadden
Triangle
Park
Memorial Park
Myrtle
& Raitt
(Proposed)
Neal Machander
Tennis Center
Pacific
Electric
Park
Sandpointe Park
Santa Ana Zoo at
Prentice Park
Santa
Anita
Park
Segerstrom
Triangle Park Carl Thornton Park
Windsor
Park
Roosevelt
Community
Center Park
Familias Corazones Verdes Park
McFadden/
Standard Field
Maple
Occidental
Exercise Park
Legend
Schools
Parks
600 ft Buffer from Schools, Parks, Residential
Zoning Classification
M1 - Light Industrial
M2 - Heavy Industrial
Note: final verification of eligible applications will be based on information provided via written communication for renewals or for new registration applications.
Commercial Cannabis Business
(Medicinal & Adult-Use)
Map Creation Date: 3/8/2022 600 ft Buffer Zoning Index Map City of Santa Ana - GIS Section 0 ½ 1
Miles
I
ATTACHMENT A
Exhibit 3
City Council 35 – 96 5/3/2022
SEGERSTROM AV
WARNER AV
FAIRVIEW ST
MACARTHUR BL
SUNFLOWER AV
HARBOR BL
Harvey
Godinez
Fundamental
High School
Thorpe
Fundamental
Segerstrom
High
Valley
High
Mitchell Child
Development
Center
Calvary
Chapel High
Maranatha
Christian
Academy
Greenville
Fundamental
Elementary
Centennial
Regional
Park
Legend
Schools
Parks
600 ft Buffer from Schools, Parks, and Residential
Zoning Classifications
Zoning Areas Suitable for Commercial Cannabis Business
M1 - Light Industrial
M2 - Heavy Industrial
Note: final verification of eligible applications will be based on information provided via written communication for renewals or for new registration applications.
Commercial Cannabis Retail
(Medicinal & Adult-Use)
Zoning Availability Map 1 of 3
Note: No Adult-Use cannabis retail business shall be located within 500 feet of another retail cannabis business, except for permitted co-location. 600 ft Buffer
I
0 500 1,000
Feet
Map Creation Date: 3/8/2022
City of Santa Ana - GIS Section
Exhibit 3
City Council 35 – 97 5/3/2022
MAJESTIC
DR
PARTON
AV
HARVEY
AV
MACARTHUR PL
AURORA AVVAN NESS AV
BIRCH ST
ALPINE AV
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BELL AV
KELLER AV
KELLER AV
CENTRAL AV
WILLIS ST
BLAIR AV
GOETZ AV
CENTRAL AV
BELL AV
GARNSEY ST
ALPINE AV ALPINE AV
ALPINE AV
TIMBER ST TIMBER ST
OLIVE ST
OLIVE ST OLIVE ST OLIVE ST OLIVE ST
HUTTON
CENTRE DR
SIERRA AV
CURIE AV
JUNIPER AV JUNIPER AV
ORANGE AV
BIRCH ST BIRCH ST
BIRCH ST BIRCH ST
BINE
ALTON AV
KELLER AV
KELLER AV TIMBER ST
TIMBER ST
RITCHEY ST
RITCHEY ST
COLUMBINE AV
STANELY
KILSON DR
DAIMLER ST
DAIMLER ST
DAIMLER ST
LYON ST
FIRST AMERICAN WY
FIRST AMERICAN WY
FLORA ST FLORA ST
NOBEL AV
NOBEL AV
HICKORY ST
HALLADAY ST
HALLADAY ST HALLADAY ST
HALLADAY ST
CARNEGIE AV
JUNIPER
OAK ST
OAK ST
OAK ST
ALDER ST
CENTRAL AV
CENTRAL AV
CAROL AV
CAROL AV
PL
PL
STEVENS AV STEVENS AV
STEVENS AV
GOETZ AV
DEERE AV
HARVEY AV
MAPLE ST
MAPLE ST
COLUMBINE AV
COLUMBINE AV
LOWELL ST
LOWELL ST
LOWELL ST LOWELL ST
DURYEA AV
SIERRA
SIERRA
WRIGHT ST
PARTON ST
PARK DR
GARRY AV
GARRY AV
PULLMAN
CYPRESS AV
CYPRESS AV
ROSS ST
ROSS ST
ROSS ST
PULLMAN ST
PULLMAN ST
PULLMAN ST
STANDARD AV
ROUSSELLE ST
AV
AV
AV
AV
AV
AV AV
AV
AV
AV
AV
AV
AV
AV
CARRIAGE DR
CATHERINE WY
HATHAWAY ST
ANAHURST PL
ST
ST
ST
ST
ADAMS ST ADAMS ST
EMMETT ST
GARNSEY ST
GARNSEY ST
GARNSEY ST
MURPHY AV
ORANGE AV
ORANGE AV
SY CAMORE ST
YOUNG ST
EVERGREEN ST
EVERGREEN ST
BROADWAY PL
ORION
ORION
MACARTHUR PL
SYCAMORE ST
SYCAMORE ST
PASTEUR
TOWNER ST TOWNER ST
TOWNER ST TOWNER ST TOWNER ST
BROWNING
STEVENS
SANDP OINTE
WOODLAND AV
TEAKWOOD ST
WOODLAND PL
RAMONA DR
RAMONA DR RAMONA DR RAMONA DR
MCGAW AV
BRADFORD
MACARTHUR
AURORA ROSS
AURORA AURORA
BROADWAY
MURPHY
COLUM
MEASOR
ROWLAND
COWAN
MAYWOOD
MACARTHUR PL
WARNER AV
RED HILL AV
WARNER AV
MAIN ST
ALTON AV
DYER
RD
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MACARTHUR BLVD
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MacArthur
Fundamental
Intmd
Esqueda Elem
Monroe
Elem
Saddleback High
Taft Elem
Washington
Elem
Bomo
Koral
Park
Delhi
Park
Lillie
King
Park
Sandpointe Park
gerstrom
ngle Park
Note: final verification of eligible applications will be based on information provided via written communication for renewals or for new registration applications.
Commercial Cannabis Retail
(Medicinal & Adult-Use)
Site Availability Map 2 of 3
Note: No Adult-Use cannabis retail business shall be located within 500 feet of another retail cannabis business, except for permitted co-location. 600 ft Buffer
0 I
500 1,000
Feet
Map Creation Date: 3/8/2022
City of Santa Ana - GIS Section
Legend
Schools
Parks
600 ft Buffer from Schools, Parks, and Residential
Zoning Classifications
Zoning Areas Suitable for Commercial
Cannabis Business
M1 - Light Industrial
M2 - Heavy Industrial
Exhibit 3
City Council 35 – 98 5/3/2022
?sE
WARNER AV
WARNER AV
EDINGER AV
MC FADDEN AV
GRAND AV
Century High
Edward B. Cole Academy
Madison
Elem
Kennedy Elem
Monroe Elem
Edison Elem
Villa Fundamental Intmd
Roosevelt Elem
Walker Elem
Delhi Park
Madison Park
Pacific Electric Park
Santa
Ana Zoo at Roosevelt Prentice Park Community Center Park McFadden/ Standard Field
Maple Occidental Exercise Park
Legend
Schools
Parks
600 ft Buffer from Schools, Parks, and Residential
Zoning Classifications
Zoning Areas Suitable for Commercial Cannabis Business
M1 - Light Industrial
M2 - Heavy Industrial
Note: final verification of eligible applications will be based on information provided via written communication for renewals or for new registration applications.
Commercial Cannabis Retail
(Medicinal & Adult-Use)
Zoning Availability Map 3 of 3
Note: No Adult-Use cannabis retail business shall be located within 500 feet of another retail cannabis business, except for permitted co-location. 600 ft Buffer
I
0 500 1,000
Feet
Map Creation Date: 3/8/2022
City of Santa Ana - GIS Section
Exhibit 3
City Council 35 – 99 5/3/2022
Exhibit 4
Recommended Commercial Cannabis Tax Rate Adjustments Table Commercial Cannabis Business Activity Gross Receipts Tax Rate
Gross Square
Footage Tax Rate
Consumption Lounges and Temporary Consumption and/or Special Events) (effective beginning July 1, 2022) 8% $ 0.00
Cultivation
(effective December 21, 2018 through June 30, 2022) 6% $ 10.00 Cultivation
(effective beginning July 1, 2022) 4% $ 7.00
Distribution
(effective December 21, 2018 through June 30, 2022) 6% $ 4.00 Distribution
(effective beginning July 1, 2022) 4% $ 3.00
Manufacturing
(effective December 21, 2018 through June 30, 2022) 6% $ 10.00 Manufacturing
(effective beginning July 1, 2022) 4% $ 7.00
Shared Manufacturing
(effective beginning July 1, 2022) 4% $ 0.00
Microbusinesses
(Tax rates apply proportionally to microbusiness’ activities corresponding to Retail / Cultivation / Manufacturing / Distribution - effective September 3, 2019 through June 30, 2022)
Retail
8%
Cultivation,
Distribution &
Mfg.
6%
Retail
$ 25.00
Cultivation & Mfg.
$ 10.00
Distribution
$ 4.00
Microbusinesses †
(effective beginning July 1, 2022)
† $2,000 Basic Tax Rate assessment to be reduced for
microbusinesses to a single levy on a microbusiness’ dominant gross receipts activity.
Retail
8%
All Others
4%
Retail
$ 25.00
Cultivation & Mfg.
$ 7.00
Distribution
$ 3.00
Shared Mfg.
$ 0.00
Note:
Shared manufacturers work in a shared-use facility operated by a commercial cannabis manufacturer. Shared manufacturers can:
Extract cannabis using butter or cooking oils
Make cannabis products through infusion
Package and label cannabis
Exhibit 4
City Council 35 – 100 5/3/2022
Exhibit 4
Microbusiness are a single commercial cannabis businesses license type allowing for at least three of the following activities at one location:
1. Cultivation – up to 10,000 total square feet
2. Manufacturing – use of non-volatile solvents,
mechanical extraction or infusion
3 Distribution or distribution transport-only
4 Adult Use Retail – storefront or non-storefront. ‡
‡ - Santa Ana restricts to storefront retail, and only for pre-existing adult use retailers seeking to expand into a microbusiness.
Exhibit 4
City Council 35 – 101 5/3/2022
DRAFT
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SANTA ANA APOLOGIZING TO CHINESE IMMIGRANTS
AND THEIR DESCENDANTS FOR ACTS OF
FUNDAMENTAL INJUSTICE AND DISCRIMINATION,
SEEKING FORGIVENESS AND COMMITTING TO THE
RECTIFICATION OF PAST POLICIES AND MISDEEDS
WHEREAS, Chinese Americans have a long and rich history in the United States, California, Orange County and Santa Ana; and
WHEREAS, the many contributions of Chinese Americans, both past and present, should be acknowledged and celebrated; and
WHEREAS, since the late 19th century, the United States Congress, the State of California, and the City of Santa Ana enacted adverse laws specifically targeting Chinese people on the basis of race, most notably with the federal passage of the Chinese Exclusion Act of 1882, the first federal law ever passed excluding a group of immigrants solely on the basis of race or nationality. The Chinese Exclusion Act set the precedent for racist foreign and national policy that led to broader exclusion laws; and WHEREAS, Chinese immigrants were met with virulent racism, xenophobia and the violence of anti- Chinese sentiment in Santa Ana and denied equal protection under the law; and
WHEREAS, during this period, growth in the Chinese population, combined with economic regression and pervasive anti- Chinese sentiments lead to the use of government authority to remove Chinese Americans in Santa Ana; and WHEREAS, the policies, resolutions, and other actions of the City of Santa Ana and President George A. Edgar ( Mayor) and the Board of Trustees ( City Council) A.C.
Tiede, John Cubbon, George L. Wright, and James Sleeper directly contributed to the xenophobic discrimination and racial violence faced by Chinese immigrants with the support and encouragement of City Attorney Colonel W.F. Heathman and Orange County District Attorney Horace Head; and
WHEREAS, the City made plans to remove Chinese residents and merchants in Santa Ana' s Chinatown as part of an urban renewal effort to gain control of those properties for the building of the new City Hall and on May 25, 1906, the Board of Trustees passed a resolution and issued an order to the Fire Marshal to deliberately set fire to Chinatown leading to the destruction of homes and businesses and the displacement of Santa Ana' s Chinese community; and
Resolution No. 2022- XXX
City Council 36 – 1 5/3/2022
WHEREAS, on May 25, 1906, a mass rally of 1 , 000 citizens gathered to watch and celebrate as the area known as Chinatown on 2nd, Main, and Bush Street was burned to the ground; and
WHEREAS, the Chinese Exclusion Laws were repealed in 1943 and subsequent federal legislation officially banned racial bias in immigration and citizenship, a fundamental step in the struggle for racial equality and justice in the United States; WHEREAS, the recent rise in anti- Asian violence and racial discrimination demonstrates that xenophobia remains deeply rooted in our society and that Chinese and Asian- Americans are still stereotyped as perpetual foreigners; and WHEREAS, the story of Chinese immigrants and the dehumanizing atrocities committed against them in the 19th and early 20th century should not be minimized in the telling of Santa Ana' s history; and
WHEREAS, the City must acknowledge and take responsibility for the legacy of discrimination against early Chinese immigrants as part of our collective consciousness that helps contribute to the current surge in anti- Asian and Pacific Islander hate; and WHEREAS, a genuine apology for the City's role in this history and legacy is an important and necessary step in the process of racial reconciliation; and WHEREAS, an apology for grievous injustices cannot erase the past, but admission of the historic wrongdoings committed can aid us in solving the critical problems of racial
discrimination facing America today;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana
Section 1 . Apologizes to all Chinese immigrants and their descendants who came to Santa Ana and were the victims of systemic and institutional racism, xenophobia, and discrimination;
Section 2. Acknowledges acts of fundamental injustice, terror, cruelty, and brutality, including the dismantling and destruction of the City' s Chinatown; Section 3. Recognizes the contributions and resilience of the Chinese community and their commitment to fostering reconciliation and friendship; and Section 4. Resolves to rectify the lingering consequences of the discriminatory policies of the City of Santa Ana, and to use this resolution as a teaching moment for the public to move forward. towards justice for all.
ADOPTED this day of May, 2022.
Resolution No. 2022- XXX
City Council 36 – 2 5/3/2022
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2022-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on
Date:
Clerk of the Council
City of Santa Ana
Resolution No. 2022- XXX
City Council 36 – 3 5/3/2022
Housing Authority
santa-ana.org/cd
Item # 3
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 3, 2022
Topic: Quarterly Report for Housing Choice Voucher Program AGENDA TITLE:
Quarterly Report for the Housing Choice Voucher Program for the Period of January 1, 2022 to March 31, 2022
RECOMMENDED ACTION
Receive and file the Quarterly Report for the Housing Choice Voucher Program for the period of January 1, 2022 to March 31, 2022.
DISCUSSION
The January 1, 2022 to March 31, 2022 Quarterly Report for the Housing Choice Voucher (HCV) Program provides statistics for the day-to-day activities of the Santa Ana Housing Authority. The report is divided into three (3) sections: Applicants, Participants, and Production.
Applicants
The Santa Ana Housing Authority accepted applications from July 1, 2015 through July 30, 2015 and received a total of 16,375 applications. A random lottery procedure was applied and the Santa Ana Housing Authority accepted 5,000 of the 16,375 applications to establish a 2015 HCV Waiting List. As of March 16, 2022, the Housing Authority has selected all the applicants from the 2015 Waiting List. After almost 7 years we have exhausted our 2015 Waiting List. As a result, our Housing Authority will begin accepting new Section 8 applications beginning Monday, May 2nd at 7:30AM until Tuesday, May 31st at 11:59PM. Applicants may apply anytime during this period by going to the City’s website at santa-ana.org/housing. In accordance with our HCV Program Administrative Plan, a local preference will be given to residents who live or work in Santa Ana and U.S. military veterans. After the Waiting List closes on May 31st, the Housing Authority will randomly select 7,500 applications to place on the 2022 HCV Waiting List using a lottery process.
City Council 3 – 1 5/3/2022
Quarterly Report for Housing Choice Voucher Program
May 3, 2022
[CATEGORY
NAME]
[VALUE]
2 People
27%
3 People
14%
4 People
7%
5 People
6%
6 People
2%
1. Family Size
Disabled
42%
Elderly
28%
Family
14%
Other
16%
2. Family Type
Below 30%
of Median
89%
Below 50%
Median
10%
Below 80%
of Median
1%
3. Income as Percentage of Median
37%
7%
64%
21%
With Any
Wages
With any
Welfare
With any
SSI/SS
With any
other Income
0%
10%
20%
30%
40%
50%
60%
70%
4. Source of Income
Participants
At the end of the reporting period, there were 2,812
households receiving rental assistance from the
Housing Authority.
Chart 1 illustrates participating families, sorted by
number of family members. Over three-fourths (84%)
of families receiving assistance have three (3) or fewer members.
Chart 2 illustrates the family type for program
participants. Over half (70%) of participating
households have elderly and/or disabled members.
[“Other” consists of households that are non-elderly,
non-disabled, with no minor children.]
Chart 3 depicts participants by percentage of Orange
County median income. As of December 31, 2021, the
County’s median income is $106,700 per year for a
family of four.
Approximately 89% of families on the program earn less
than 30% of the median income, which is $40,350 per
year for a family of four (4).
Participants’ incomes come from a variety of sources, as illustrated in Chart 4. A total of 37% of participating families have income from employment. Participating
families pay a portion of their monthly rent based upon their income and the payment standard for their
unit. The Housing Authority pays the difference
between the tenant’s portion and the contract rent. This City Council 3 – 2 5/3/2022
Quarterly Report for Housing Choice Voucher Program
May 3, 2022
41 61
105
Jan Feb Mar
0 50
100
150
5. HQS Inspections
Inspection Months
170 159 156
99 44 81
Jan Feb Mar
0 100
200
300
Re-exams Interims
6. Re-exams and Interims
payment is the Housing Assistance Payment (HAP). The average HAP for January 1, 2022 to March 31, 2022 was $1,353.
Production
HQS Inspections: At least once every two (2) years,
the Housing Authority must inspect each assisted-unit
to ensure it meets HUD’s Housing Quality Standards
(HQS) in compliance with the federal regulations. From
January 1, 2022 to March 31, 2022 a total of 207
inspections and re-inspections of our assisted-units
were performed of which 20 inspections failed. Chart 5
illustrates the number of inspections performed on a
monthly basis during the reporting period.
Recertifications / Interims:
Each year, the Housing Authority must re-certify every
assisted-family to verify the family is still eligible for assistance. In addition, when a participant’s income
changes, an interim examination must be
performed. During the reporting period, a total of 709
recertifications and interims were conducted. Chart 6
illustrates the number of recertifications and interims performed.
Other Change of Unit:
These actions are completed when a family moves to a different rental unit. Twenty (20) change of unit actions were processed during the reporting period.
New Admissions:
This action is completed when a family is admitted to the HCV Program. Seventy six (76) new admissions were processed during the reporting period.
End of Participation:
This action is completed when the family is no longer interested in participating in the program, the family becomes deceased, the family is no longer eligible for the program, or the family is terminated from the program due to program violations. Twenty-seven (27) end of participations were processed during the reported period.
Expired Vouchers:
City Council 3 – 3 5/3/2022
Quarterly Report for Housing Choice Voucher Program
May 3, 2022
This action is completed when an applicant is unable to locate a unit within the timeframe of the voucher and all extensions have been exhausted or no extension is requested.
There were nineteen (19) expired vouchers processed during the reporting period.
FISCAL IMPACT
There is no fiscal impact associated with this action.
Submitted By:
Judson Brown, Housing Division Manager
Approved By:
Steven A. Mendoza, Assistant City Manager/Executive Director City Council 3 – 4 5/3/2022