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