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E. 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 <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 />F. 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 <br />purposes. On March 20, 2018, the City Council adopted Ordinance NS-2941 <br />and NS-2942, allowing and regulating commercial cannabis testing <br />laboratories. <br />G. On April 17, 2018, the City Council adopted Ordinance NS-2944 allowing and <br />regulating commercial cannabis cultivation, distribution, and manufacturing <br />activities. <br />H. On November 6, 2018, the voters of the City of Santa Ana approved Measure <br />Y (Ordinance NS-2962), establishing a tax on commercial cannabis business <br />activities except medicinal cannabis retail sales, which continue to be subject <br />to taxes under Measure BB. <br />I. The State of California continues to update its regulations on commercial <br />cannabis business licensing, resulting in the need for local jurisdictions to <br />update and amend local commercial cannabis ordinances from time to time. <br />J. 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 <br />that Act or other applicable law. <br />K. The City of Santa Ana has a compelling interest in ensuring that cannabis is <br />not cultivated, manufactured or distributed in an illicit manner, in protecting the <br />public health, safety and welfare of its residents and businesses, in preserving <br />the peace and quiet of the neighborhoods in which these uses may operate, <br />and in providing access of cannabis to residents. <br />L. The City Council held a duly noticed public hearing on August 20, 2019 in <br />connection with consideration and adoption of this ordinance. <br />Section 2. This ordinance is adopted pursuant to the authority granted by the <br />California Constitution and State law, including but 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), the Adult Use of Marijuana Act (Proposition 64), and the <br />Medical and Adult Use Cannabis Regulation and Safety Act (SB 94). <br />Ordinance No. NS-2972 <br />Page 2 of 25 <br />