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bk:8/26/07 ORDINANCE NO. NS-XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADDING ARTICLE XIII TO CHAPTER 18, AND ADDING SECTION 41-121 AND AMENDING SECTION 41-144 OF THE SANTA ANA MUNIC{PAL CODE TO PROHIBIT THE ESTABLISHMENT AND OPERATION OF MEDICAL MARIJUANA DISPENSARIES THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. For the last two years the City Council has had a moratorium in place banning medical marijuana dispensaries from opening in Santa Ana. The moratorium expires on October 17, 2007. Under state law, such moratoriums cannot generally be extended beyond two years. B. Under federal law, marijuana is considered a Schedule I drug which denotes "a high potential for abuse, lack of any accepted medical use, and absence of any accepted safety for use in medically supervised treatment." But California has two statutes dealing with medical marijuana. The Compassionate Use Act of 1996 (the "Compassionate Use Act")was enacted through a popular initiative, Proposition 215. The Medical Marijuana Program Act of 2004 was enacted by the State Legislature in the belief that Proposition 215 was being ignored by California cities and counties. Both of these state laws provide a defense to criminal prosecution for possession, cultivation, and transportation of marijuana in certain circumstances. C. In June 2005, the United States Supreme Court, relying on the Commerce Clause and Supremacy Clause of the United States Constitution, held that this California state law does not provide a defense to individuals prosecuted in federal court for cultivation, transportation, or possession of marijuana. After the June 2005 Supreme Court decision, many cities, including Santa Ana, enacted moratoriums to study the issue of medical marijuana dispensaries. Ordinance No. NS-XXX Page 1 of _ 11 A-1