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licensing system for medical cannabis cultivation, manufacturing, delivery, and <br />dispensing. <br />G. The California Marijuana Legalization Initiative, also known as the Adult Use <br />of Marijuana Act (AUMA or Proposition 64) which the voters of the State of <br />California approved and passed in 2016, requires that all cannabis processed <br />and sold in the state of California be subject to professional laboratory testing for <br />cannabinoid content, toxins, adulterants, pesticides, potency, and other important <br />elements that affect product safety. Testing must be done at laboratories <br />licensed by the Bureau of Cannabis Control (BCC) and testing laboratories <br />cannot co -locate with any other commercial cannabis business. Pursuant to <br />various State laws, a cannabis testing laboratory may not hold any other license <br />type, which is intended to ensure neutrality and product safety. Proposition 64 <br />requires testing for some cannabis products by July 1, 2018 and for all products <br />by January 1, 2019. <br />H. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal <br />and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA). <br />I. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana <br />Municipal Code, allowing adult -use commercial cannabis retail businesses in the <br />city, and amended certain sections of Chapters 18 and 21 of the Santa Ana <br />Municipal Code to ensure consistency with State law and Chapter 40. <br />J. Chapter 40 of the Santa Ana Municipal Code is intended to contain standards <br />and regulations to address all commercial cannabis business activities in Santa <br />Ana, except that medicinal cannabis retail businesses are subject to the <br />standards and regulations in Article XIII of Chapter 18. <br />K. Since November 2014, the City of Santa Ana has permitted the retail sale of <br />cannabis for medicinal purposes and since January 2018 for adult -use purposes. <br />On March 20, 2018, the City Council adopted Ordinance NS -2941 and NS -2942, <br />allowing and regulating commercial cannabis testing laboratories. <br />L. The City Council of the City of Santa Ana intends that nothing in this article <br />shall be deemed to conflict with federal law as contained in the Controlled <br />Substances Act, nor to otherwise permit any activity that is prohibited under that <br />Act or other applicable law. <br />M. The City of Santa Ana has a compelling interest in ensuring that cannabis is <br />not cultivated, manufactured or distributed in an illicit manner, in protecting the <br />public health, safety and welfare of its residents and businesses, in preserving <br />the peace and quiet of the neighborhoods in which these uses may operate, and <br />in providing access of cannabis to residents. <br />N. The city council has held a duly noticed public hearing in connection with <br />consideration and adoption of this ordinance. <br />Ordinance No. NS -2944 <br />Page 2 of 33 <br />