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dispensaries and the potential establishment of new medical marijuana dispensaries in the City. F. Given these concerns, the City Council has requested, in adopting the moratorium ordinance, that a study be undertaken of the current provisions of the General Plan and Chapter 41 if the Code to classify medical marijuana dispensaries and determine whether such businesses should be permitted in the City and if so, where, and under what conditions. G. Without adoption of an extension to the moratorium ordinance, properties in the City would quiCkly receive entitlements to establish medical marijuana dispensaries despite the fact that the city council has determined that the Code is in need of updating and has directed that a study be done to recommend new standards and revise the Code to address concerns created by medical marijuana dispensaries. H. It has come to the City Council's attention that at least one individual has approached city staff seeking entitlements to establish a medical marijuana dispensary I. The City is not, at this time, able to determine if medical marijuana dispensaries can legally be established within the City for the following reasons: 1. In 1996, the voters of the State of California approved Proposition 215 ("the Act"), codified as Health and Safety Code Section 11362.5, et seq. 2. The intent of Proposition 215 was to enable persons who are in need of medical marijuana for medical purposes to obtain and use it under limited, specified circumstances. 3. On January 1, 2004 SB 420, codified as Health and Safety Code Section 113627 et seq., was enacted by the Legislature to clarify the scope of the Act and to allow cities and counties to adopt and enforce rules and regulations consistent with SB 420 and the Act. 4. The Santa Ana Municipal Code does not address in any manner medical marijuana dispensaries. 5. Recently, the United States Supreme Court addressed medical marijuana use in Gonzales v Raich (2005) 125 S. Ct. 2195. In Raich, the Court held that the federal government has the power to regulate and criminalize medical marijuana use and legally does so. 6. The federal Controlled Substances Act, 21 U.S.C. Section 801 et seq., classifies marijuana as a Schedule I drug because of its high potential for abuse, lack of any accepted medical use, and absence of any accepted safe use. The manufacture, distribution, or possession of a Schedule I drug is a criminal offense under the Controlled Substances Act. Ordinance No. NS-2728 Page 2 of 6