MEDICAL MARIJUANA LEGAL UPDATE

On the last week of October, the California Supreme Court agreed to
review the most recent case (People vs. Phomphakdy) which had set
aside, for about two months, the state medical marijuana possession
limits. This action restores the statewide limits set by the
legislature in 2003, which are now part of the state Health and Safety Code.

The following minimum limits apply statewide, unless counties have
approved greater quantities:

"Qualified patients and primary caregivers who possess a state issued
identification card may possess eight ounces of dried marijuana, and
may maintain no more than six mature or 12 immature plants per
qualified patient." It also allows patients to possess more marijuana
if specifically authorized by a doctor's recommendation.

In early August, Mendocino County Superior Court Judge John Behnke's
set aside the specific county limits imposed by Measure B,
referencing the Phomphakdy and Kelly cases until such time as the
California Supreme Court ruled on those cases.

Since Mendocino County has adopted no other limits after the repeal
of Measure G, it appears likely that state limits apply locally,
although it is clear that some defense attorneys may disagree. The
county does have a nuisance ordinance passed in December 2007, which
limits the number of marijuana plants allowed to be grown on any one
county parcel to 25 or less, no matter how many caregivers or
patients are being served.

In August 2008, the California Attorney General issued a
comprehensive set of "guidelines to ensure the security and
non-diversion of marijuana grown for medical use."

Attorney General guidelines for the rights of patients or primary caregiver:

A patient or primary caregiver with a valid state medical marijuana
card and no more marijuana than the state or local limit must be
released and no marijuana seized. Even with a valid card, if someone
possesses more marijuana than the established limit, all marijuana
may be seized. If a person is acting as primary caregiver to more
than one patient, he or she may possess up to the limits associated
with the number of patients being cared for.

If a patient or primary caregiver, as part of a co-op or collective,
is cultivating, transporting or distributing the group's marijuana in
excess of the individual possession guidelines they should have
appropriate supporting records about the co-op or collective readily
available to provide to law enforcement.

For patients claiming medical marijuana protection but without a
state issued card, officers are authorized to continue any search or
investigation following standard law enforcement procedures. Standard
procedures allow an officer to detain a suspect as long as they have
reasonable suspicion, but they require "probable cause" for search,
seizure, or arrest.

If the officer reasonably believes the medical claim is valid, based
on all evidence available and the person possesses no more than the
state or local possession guidelines, the person should be released
and marijuana not seized.

Officers are not required to accept a person's claim of having a
verbal physician's recommendation if it cannot be readily verified
with the physician at the time of detention.

If the officer has probable cause to doubt the validity of a medical
marijuana claim, the person may be arrested and marijuana seized. It
will then be up to the person to establish his or her medical
marijuana defense in court.

Attorney General guidelines for medical marijuana collectives,
cooperatives and dispensaries:

Medical marijuana collectives, cooperatives and dispensaries must
operate on a not-for-profit basis. Collectives and cooperatives
composed of qualified patients and primary caregivers may only
acquire marijuana grown, transported or distributed by qualified
co-op members. Each co-op must file articles of incorporation with
the state and conduct its business for the mutual benefit of its
members. Medical marijuana sales are subject to sales tax, seller's
permits and business' licenses. Marijuana may be provided free, in
exchange for services, allocated based on fees calculated to cover
expenses or a combination of all three.

Nothing in the medical marijuana laws allows marijuana to be
purchased from outside a group for distribution to its members.
Instead, the cycle is expected to be a closed loop of marijuana
cultivation and consumption with no purchases or sales to or from
non-members. To help prevent diversion of medical marijuana to
nonmedical markets, collectives and cooperatives are expected to
document each member's contribution of labor, resources, or money to
the enterprise. They also should track and document the source of all
marijuana distributed by the co-op.

Many existing dispensaries, which do not follow the rules of co-ops
or collectives, are not protected by current medical marijuana law.
Those that merely require patients to complete a form designating the
dispensary owner as their primary caregiver and then offering
marijuana in exchange for cash "donations" are likely unlawful.