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EXHIBIT 2 <br />LS 8.20.19 <br />ORDINANCE NO. NS-XXXX <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF <br />SANTA ANA AMENDING CERTAIN SECTIONS OF ARTICLE XIII <br />OF CHAPTER 18 OF THE SANTA ANA MUNICIPAL CODE <br />PERTAINING TO MEDICINAL MARIJUANA AND CHAPTER 40 <br />OF THE MUNICIPAL CODE PERTAING TO COMMERCIAL <br />CANNABIS TO UPDATE AND STREAMLINE IMPLEMENTATION <br />OF COMMERCIAL CANNABIS, INCLUDING MEDICINAL <br />CANNABIS PURCHASING AGE (SECTION 18-613), EMPLOYEE <br />BADGES (SECTIONS 18-613 AND 40-8), MANUFACTURING <br />PERMIT REQUIREMENTS (SECTION 40-8), AND <br />ADMINISTRATION AND IMPLEMENTATION AMENDMENTS <br />(SECTIONS 18-617.5, 40-1, 40-2, 40-5. 40-8, 40-9.1. AND 40-10) <br />THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS <br />FOLLOWS: <br />Section 1. The City Council of the City of Santa Ana hereby finds, determines <br />and declares as follows: <br />A. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical <br />Marijuana Regulatory Program ordinance ("Measure BB") which was codified in Chapters 18 <br />and 21 of the Santa Ana Municipal Code. Such regulations govern medicinal marijuana and <br />the retail sale thereof. <br />B. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, and <br />Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation and Safety <br />Act further amended in 2016 as the Medical Cannabis Regulation and Safety Act which <br />established regulations and a state licensing system for medical cannabis cultivation, <br />manufacturing, delivery, and dispensing. <br />C. In November 2016, the voters of the State of California approved Proposition 64, <br />the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana <br />Act. <br />D. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal <br />and Adult -Use Cannabis Regulation and Safety Act. <br />E. 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 city, and <br />amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure <br />consistency with State law and Chapter 40. <br />F. 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. On March <br />1 <br />75A-43 <br />