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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. The City Council of the City of Santa Ana intends that nothing in this article <br />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 <br />Act or other applicable law. <br />M. The City of Santa Ana has a compelling interest in ensuring that cannabis is <br />not sold in an illicit manner, in protecting the public health, safety and welfare of <br />its residents and businesses, in preserving the peace and quiet of the <br />neighborhoods in which these businesses may operate, and in providing access <br />of cannabis to residents. <br />N. The city council held a duly noticed public hearing on March 20, 2018, in <br />connection with the consideration and adoption of this ordinance. <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 adoption of this ordinance. <br />Ordinance No. NS -2942 <br />Page 2 of 31 <br />