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licensing system for medical cannabis cultivation, manufacturing, delivery, and <br />dispensing. <br />G. The California Marijuana Legalization Initiative, also known as the Adult <br />Use of Marijuana Act (AUMA or Proposition 64) which the voters of the State of <br />California approved and passed in 2016, requires that all cannabis processed and <br />sold in the state of California be subject to professional laboratory testing for <br />cannabinoid content, toxins, adulterants, pesticides, potency, and other important <br />elements that affect product safety. Testing must be done at laboratories licensed by <br />the Bureau of Cannabis Control (BCC) and testing laboratories cannot co -locate with <br />any other commercial cannabis business. Pursuant to various State laws, a cannabis <br />testing laboratory may not hold any other license type, which is intended to ensure <br />neutrality and product safety. Proposition 64 requires testing for some cannabis <br />products by July 1, 2018 and for all products by January 1, 2019. <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. 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 />J. 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 />K. Since November 2014, the City of Santa Ana has permitted the retail sale <br />of cannabis for medicinal purposes and since January 2018 for adult -use purposes. <br />However, the City has not permitted the operation of testing laboratories/facilities in <br />Santa Ana since January 2018. As a result, cannabis sold in Santa Ana may be <br />untested. <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 />Ordinance No. NS -XXX <br />Page 2 of 33 <br />11 B-4 <br />