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G. The California Marijuana Legalization Initiative, also known as the Adult Use <br />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 <br />and 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 <br />licensed by the Bureau of Cannabis Control (BCC) and testing laboratories <br />cannot co -locate with any other commercial cannabis business. Pursuant to <br />various State laws, a cannabis testing laboratory may not hold any other license <br />type, which is intended to ensure neutrality and product safety. Proposition 64 <br />requires testing for some cannabis products by July 1, 2018 and for all products <br />by January 1, 2019. <br />H. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal <br />and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA). <br />I. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana <br />Municipal Code, allowing adult -use commercial cannabis retail businesses in the <br />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 standards <br />and regulations to address all commercial cannabis business activities in Santa <br />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 of <br />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 <br />in Santa Ana since January 2018. As a result, cannabis sold in Santa Ana may <br />be untested. <br />L. If commercial cannabis retail sale is permitted in the City without required <br />quality -control testing, it will pose a serious threat to the public, health, safety and <br />welfare for the following reasons: <br />Cannabis products that are untested for cannabinoid content will not display <br />potency, dosage, and other important elements that affect the qualities of the <br />product. As with any other medicinal product, medicinal cannabis must be <br />tested to ensure the safety of those that use it for medicine. Pursuant to the <br />AUMA, adult -use cannabis must be tested for cannabinoid content to <br />guarantee the safety of its usage to consumers. Without allowing testing <br />laboratories/facilities in Santa Ana, the retail cannabis sold in the City will not <br />display important elements that guarantee the safety of cannabis for all <br />consumers. <br />2. Cannabis products that are untested for toxins, adulterants, and pesticides <br />will pose serious health risks to consumers. While the City has allowed <br />cannabis retail sales since 2014, products sold are not required to undergo <br />Ordinance No. NS -2941 <br />Page 2 of 32 <br />