As marijuana is decriminalized and businesses form to take advantage of the opportunity, some states, such as Michigan and Connecticut, are imposing on them capital reserve requirements similar to those required of insurance companies and banks. Policymakers who are serious about the positive fiscal, economic and social impact of marijuana legalization should recognize that capitalization requirements risk some of those benefits by unnecessarily raising the retail price of marijuana and the cost of doing business.
Policy Brief: Do Capitalization Requirements Make Sense For The Cannabis Industry?