15.03.400 Determination of Price

(a) A registered entity shall only charge a price for an approved medical marijuana product that has been approved by the Authority.

(b) The Authority shall set the per unit price of each form of approved medical marijuana product sold by any registered entity, as follows:

(1) Registered entities shall submit a proposed price per unit for each form of medical marijuana indicated in its registration. Registered entities shall submit such information and documentation, in a manner and format determined by the Authority, sufficient for the Authority to perform a cost analysis of the proposed price. In particular, the registered entity shall, in a manner and format determined by the Authority, provide a detailed breakdown of, and submit information and documentation concerning, all costs it factored to arrive at its proposed price, including but not limited to its fixed and variable costs such as materials and services; direct labor; and indirect costs.

(2) The registered entity shall provide cost or pricing data that is accurate and reliable, and shall certify, at the time of submission of its price proposal, that to the best of its knowledge and belief, the cost or pricing data were accurate, complete, and current as of the date of submission.

(3) The Authority shall determine the reasonableness of the proposed costs. In making this determination, the Authority may consider whether the costs represent inefficient and uneconomical practices; are not costs appropriately attributable to the price; and/or are costs unsupported by sufficient documentation or information to justify their inclusion in the proposed price. If the registered entity has been granted a renewal of its registration, any relevant historical price, cost and/or sales data of the registered entity; and any other information the Authority deems appropriate.

(4) The Authority may approve the proposed price, refuse approval of a proposed price, or modify or reduce the proposed price.