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G. In 2016, the voters of the State of California approved and passed <br />Proposition 64 also known as the Adult Use of Marijuana Act ("AUMA").. <br />H. In 2017, the Governor signed into law Senate Bill 94 also known as <br />Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA). <br />I. Health & Safety Code Section 11362.83 provides that cities are free to <br />adopt and enforce local ordinances that regulate the location, operation, or <br />establishment of medical cannabis. <br />J. The City Council of the City of Santa Ana intends that nothing in this <br />article 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 Act <br />or other applicable law. <br />K. The City of Santa Ana has a compelling interest in ensuring that cannabis <br />is not sold in an illicit manner, in protecting the public health, safety and welfare of its <br />residents and businesses, in preserving the peace and quiet of the neighborhoods in <br />which these businesses may operate, and in providing access of cannabis to <br />residents. <br />Section 2. This Ordinance is adopted pursuant to the authority granted by the <br />California Constitution and State law, including by not limited to, Article IX, Section 7 of <br />the California Constitution, the Compassionate Use Act of 1996 (California Health and <br />Safety Code Section 11362.5), the Medical Marijuana Program (California Health and <br />Safety Code Section 11362.7 et seq.), the Medical Marijuana Regulation and Safety Act <br />(AB 266, AB 243, and SB 643; hereafter "MMRSA"), the Adult Use of Marijuana Act <br />(Proposition 64), and the Medical and Adult Use Cannabis Regulation and Safety Act <br />(SB 94; hereafter "MAUCRSA" ). <br />Section 3. Pursuant to the California Environmental Quality Act ("CEQA") and <br />the State CEQA Guidelines, the adoption of this ordinance is exempt from CEQA review <br />pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it <br />can be seen with certainty that there is no possibility that the project may have a <br />significant effect on the environment. As a result, a Notice of Exemption will be filed <br />upon the adoption of this ordinance. <br />Section 4. The City hereby amends the Santa Ana Municipal Code ("SAMC) by <br />adding Article 1 to Chapter 40, entitled 'Regulation of Adult -Use Commercial <br />Cannabis Retail Activities" as follows: <br />Chapter 40 <br />ARTICLE 1. REGULATION OF ADULT -USE COMMERCIAL CANNABIS RETAIL <br />ACTIVITIES <br />Ordinance No. NS -XXX <br />11 E-4 Page 2 of 25 <br />