Regulated & Restricted Prescription Medicine - Medical Cannabis 


Since the November 2016 elections there are now 29 States that have legalized and approved medical cannabis and have created a new industry to support the medical needs of over 6,000,000 patients that are currently legally registered in the approved states. These patients are still receiving their medicine in a non-secure and non-compliant process. The environment that the patients are required to receive their medicine from lacks controls on medical standards, security, compliance and the legal reporting process. The payment process is a major security issue since it allows a cash only process in all approved States. The business units that make up the medical cannabis product production and administration are the Growers, Cultivators, Transporters and Dispensaries’ The medical marijuana industry is projected to have a current potential revenue of over $10 Billion. Colorado's cannabis industry brought in more than $270 million in the first quarter of 2016 alone. New analysis from the Tax Foundation found nationwide legalization of marijuana could generate up to $28 billion in tax revenues for federal, state, and local governments. The report oulines includes $7 billion in federal revenue, $5.5 billion from business taxes, and $1.5 billion from income and payroll taxes. Medical Cannabis is projected to account for one third of that revenue.

 Federal Status:

The Federal status of medical cannabis is currently classified as a Schedule 1 drug and therefore the enforcement can result in a 10-year prison term and considerable fines. The Federal law requires that no State can receive payment by normal bank processing and it is illegal to transport cannabis or the currency received from a transaction outside of the state boundaries.

 States status:

The status of each of the 29 States that has approved medical cannabis is that medical cannabis cannot be transported outside the state boundaries. The payment for the medical cannabis is a cash only transaction. Each State has defined the administrating process for medical cannabis in different agencies. There is no standard for the administration of medical cannabis in the approved States.

Current State approach to dispensing medical cannabis:

The patient is issued a state card enabling them to purchase medical cannabis prescriptions from a licensed dispensary within the state borders. The patient must have a prescription from a state approved medical doctor. The prescription medicine cannot be transported across the state lines. The growers in some but not all cases must have a chemist and Medical Doctor on Staff. All medical cannabis units that handle the product must be licensed by the state. Some approved States have issued tracking & tracing requests and implemented them for control of the cannabis plant. This process only traces the plant and not the transaction.

Current transaction process:

The approved states issue a card for the medical cannabis prescription. The patient must have a Medical Doctors prescription to receive approval for the card. The patient can then receive the medical cannabis from any state approved dispensary. The transaction is a cash only process at the dispensary. Since there is no current transaction tracking the patient can access additional prescriptions from multiple dispensaries. Since this is a cash only process there is little control over the actual revenue and tax information for the state.

 Proposed transaction process:

CPS II has created a new standard for dispensing Regulated & Restricted Prescription for the Medical Cannabis market. This process will allow the industry to address the needs and the way the patients and medical staff are engaged in the service of their patients with medical cannabis. The CPS II standard has focused on the compliance and security of the medical cannabis dispensing process including the payment process. The CPS II secure technology platform requires multiple Biometric access while providing compliance, asset tracking and an encrypted data reporting process (Block Chain) to the departments in each State for Revenue, Agriculture, Health and Cannabis Enforcement. This environment will provide a required secure and compliant environment such as is currently practiced and required in the medical and pharma industry. The dispensing of the medical marijuana to each patient is a controlled process and will provide a major benefit to the patient and the State in creating a positive influence on the industry as it matures.

Proposed mandatory compliance & security training program

The security and compliance requirements are critical to the administration of the medical cannabis program. The CPS II Compliance Analysts One training program will prepare the medical cannabis staff in all licensed cannabis units for meeting the state requirements. The CAO program is designed to support the training of the veteran/military members as preferred students for the program. The program is open to all state staff or to external applicants to support the required rules & regulations administered by the State agencies.