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licensing system for medical cannabis cultivation, manufacturing, delivery, and <br />dispensing. <br />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. On November 9, 2017, the City Council created Chapter 40 of the Santa <br />Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in <br />the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana <br />Municipal Code to ensure consistency with State law and Chapter 40. <br />K. Chapter 40 of the Santa Ana Municipal Code is intended to contain <br />standards and regulations to address all commercial cannabis business activities in <br />Santa Ana, except that medicinal cannabis retail businesses are subject to the <br />standards and regulations in Article XIII of Chapter 18. <br />L. 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 />M. 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. Pursuant to the California Environmental Quality Act ("CEQA") <br />and the state CEQA Guidelines, the adoption of this Ordinance is exempt from CEQA <br />review pursuant to California Code of Regulations section 15061(b)(3), which is <br />applicable if it can be seen with certainty that there is no possibility that the project may <br />have a significant effect on the environment. As a result, a Notice of Exemption will be <br />filed upon the adoption of this ordinance. <br />Section 3: Article I of Chapter 40 of the Santa Ana Municipal Code is hereby <br />amended to read in full as follows: <br />Ordinance No. NS -XXX <br />Page 2 of 33 <br />75B-6 <br />