ABNER CHERNIS

Overview
The California medical marijuana (MMJ) laws provide a defense to criminal prosecution for certain personal and collective (group) marijuana-related conduct. The two MMJ laws are the Compassionate Use Act (1996), commonly referred to as Prop. 215, and the Medical Marijuana Program Act (2003), commonly referred to as SB 420. These laws effectively legalize, under State law, certain cultivation, transport and distribution activities where prescribed steps are followed. The difficulty is that there remains some ambiguity, disagreement and misinformation about the scope of the MMJ laws and the activity that is legal under those laws. Abner Chernis, LLP makes it our business to keep abreast of changes in the MMJ laws and arm our clients with that knowledge. It is our prime directive to keep our client out of harms way, and we believe an educated and informed client is critical to the equation.

Collective/Non Profit Formation

If you are considering collective cultivation activity, either with a large group of people, or where money will be exchanged, it is recommended to form a legal entity for the collective and register it with the California Secretary of State. Abner Chernis, LLP has developed an expertise in assisting clients in the formation of MMJ collectives, and addressing all of the challenges that arise between the formation and operational stages. Our approach is not cookie-cutter or one-size-fits all; at Abner Chernis, LLP we consider each client as having unique concerns and needs and once we understand those issues we craft a solution to meet the clients goals. Formation is much more than filing a registration or incorporation document with the State. There are several different types of legal entities, including several different forms of non-profits, that may be utilized for MMJ business activities, depending on the clients unique goals and desired activities. The entities have differences from one another which may be important to you.

Best Practices/Compliance/Operational Documents

In the process of forming a new collective, or assisting an existing collective in becoming more compliant, Abner Chernis, LLP spends a great deal of time reviewing with the client best practices to be followed in operating a collective to maximize legal compliance and protection. Abner Chernis, LLP also provides the client with operational agreements that create and document legal and economic relationships with collective members and third-parties performing critical services to the collective, such as cultivating and transporting MMJ. Aside from being integral to operating the business, these agreements and documents are infused with the best

practices and help demonstrate the collectives legitimacy and lawfulness. With the benefit of our compliance services and documentation, Abner Chernis, LLP has helped clients intercepted by federal and state agents with many hundreds of plants avoid criminal prosecution. Abner Chernis has had clients caught by local law enforcement transporting marijuana who upon showing documentation we prepared avoided prosecution and had their medicine returned. The documents we provide are constantly being updated to reflect recent changes in the law.

Defense
Unfortunately, until marijuana is both fully legalized in California, and re-scheduled by the federal government, there remains a threat of criminal prosecution for persons engaged in MMJ. This is particularly so for large-scale cultivators, transporters and dispensaries. While the case law interpreting Californias MMJ laws has developed favorably in certain key areas, there remain some ambiguities and areas of disagreement, and many in law enforcement who are not familiar with the changing laws. As a result, even the most well-intentioned and law-abiding MMJ patient or collective employee faces some risk for conduct that is defensible under California MMJ laws. Abner Chernis, LLP fights hard in defending clients in MMJ cases. These cases are unlike most others because there often is a legitimate defense, and Abner Chernis, LLP can use that defense in court and in some instances even before charges are filed.

Litigation
MMJ collectives are not immune from the types of business disputes, and even lawsuits, that confront other industries. Most often, these disputes are with cities seeking to stop the collective from operating, or with landlords seeking to evict the tenant. There are also situations where collectives have disputes amongst partners, or with their own members and service providers. Abner Chernis, LLP has the unique background and experience to represent individuals and collectives in all forms of litigation related to medical marijuana. For example,

Abner Chernis, LLP has represented dispensaries and landlords in lawsuits against cities seeking to enforce dispensary bans, and has defended collectives in unlawful detainer and nuisance cases, as well as in contract disputes and forfeiture proceedings. Abner Chernis, LLP has also represented doctors and clinics that provide recommendations to qualified MMJ patients in litigation and in in Medical Board proceedings.

Landlord/Tenant
We have often been asked to assist either the landlord or the tenant (whether it be a collective, cultivator, MMJ doctor, or other form of MMJ-related business) in drafting a lease to address the unique usage and maximize legal protections for our client. Landlords often consult with us to evaluate the cost and benefits associated with leasing to an MMJ tenant, or even permitting a residential tenant to have a personal grow. We have also prosecuted and defendant unlawful-detainer actions relating to MMJ usages, and represented landlords of collectives in federal proceedings.

3110 Main Street Suite 205 Santa Monica, CA 90405 Phone: (310) 566-4388 Fax: (310) 382-2541 Website: http://abnerchernis.com/medical_ marijuana.html