Summary of Cannabis Bills Introduced Prior to the Bill Introduction Deadline

As the California Legislature advances into the 2025–26 session, a range of cannabis-related bills have been introduced, reflecting both opportunities and challenges for the industry. While some proposals aim to strengthen regulatory enforcement, improve market stability, and expand access to medicinal cannabis, others introduce new burdens on license holders, impose additional compliance requirements, or disrupt the regulated marketplace. Notable measures include efforts to freeze the excise tax rate at 15%, address non-payment disputes among licensees, enhance testing integrity, and crack down on the proliferation of highly intoxicating hemp products sold outside the legal cannabis supply chain. However, other proposals raise concerns, such as a ban on non-rechargeable vapes, additional verification requirements for workers’ compensation coverage, and authorization to sell hemp-infused beverages outside the regulated cannabis marketplace. Below is a summary of key cannabis-related legislation introduced prior to the February 21 bill introduction deadline. This summary will continue to be updated to reflect additional developments, including bill referrals to policy committees, notable amendments, and other key changes. Please feel free to contact me with any questions.

AB 8 (Aguiar-Curry) Industrial hemp. While currently in spot bill form, this bill’s  intended purpose is to prohibit the distribution and sale of hemp cannabinoid products containing any detectable level of THC, including delta-8, delta-9 or synthetic THC. The proposed amendments would shift regulation and enforcement responsibilities of said products from the California Department of Public Health (CDPH) to the Department of Cannabis Control (DCC). The DCC would be tasked with developing comprehensive regulations to ultimately integrate hemp cannabinoid products into the regulated cannabis supply chain, ensuring they are subject to the same laws governing legal cannabis and cannabis products under the Medicinal and Adult Use Regulation and Safety Act (MAUCRSA).

Comments: Cosponsored by the California Cannabis Operators Association (CaCOA) and the United Food and Commercial Workers, this bill is a reintroduction of AB 2223 (Aguiar-Curry, 2024), a previous California Cannabis Industry Association (CCIA)/UFCW cosponsored measure that failed to advance in the Senate Appropriations Committee.

Status: Awaiting hearing in the Assembly Business and Professions Committee

AB 564 (Haney) Cannabis: excise tax: rate increase repeal. This bill seeks to repeal the requirement that the California Department of Tax and Fee Administration (CDTFA) adjust the cannabis excise tax rate every two years to offset the revenue loss from the discontinued cultivation tax. This means the excise tax would remain fixed at 15% of the gross receipts from retail cannabis sales, instead of potentially increasing up to 19% as authorized by previous legislation.

Background:

• Under the Adult Use of Marijuana Act (Proposition 64), the cannabis excise tax was set at 15% and a cultivation tax was also imposed.
• In 2022, AB 195 eliminated the cultivation tax but required CDTFA to periodically increase the excise tax starting in FY 2025-26 to compensate for lost revenue.
• Without AB 564, the tax could rise beyond 15%, up to 19%, depending on revenue projections.

Status: Pending referral

AB 632 (Hart) Local ordinances: administrative fines or penalties. This bill provides an expedited process for local agencies to take action when specified fines or penalties are levied for violations of local ordinances, notably those governing cannabis activities. The key provisions include:

• Court Judgment Entry: Authorizes local agencies to file a certified copy of a final administrative order or decision, which directs the payment of a specified administrative fine or penalty, with the clerk of the superior court. Mandates that the clerk, upon filing, enter judgment immediately, streamlining the process for local governments to enforce penalties. Penalties for these violations could be entered as a money judgment, thereby providing the full range of enforcement mechanisms available for judgment under the Code of Civil Procedure. Applies court judgment entry provisions to administrative fines or penalties imposed for violations related to:
  • Cannabis Regulations: Violations of laws, regulations, or local ordinances regulating or prohibiting activities such as cultivating, manufacturing, producing, processing, preparing, storing, providing, donating, selling, delivering, or distributing cannabis or cannabis products.
  • State Housing Law: Violations of the State Housing Law, which encompasses building standards and regulations to ensure safe and habitable housing conditions.
  • Rental Housing Habitability: Violations of laws, regulations, or local ordinances that ensure the habitability of rental housing, including issues that would constitute a breach under Section 1941.1 of the Civil Code.
  • Fire Hazards: Violations of laws, regulations, or local ordinances related to fire hazards, aiming to prevent and mitigate fire risks to protect public safety.
• Lien Authority: Permits local agencies to establish procedures to collect unpaid administrative fines or penalties by placing a lien on the property where the violation occurred. In the context of cannabis, this provision applies to activities such as unlicensed cultivation, manufacturing, processing, distribution, or retail sale of cannabis, and these activities violate local ordinances, the property owner may incur administrative fines or penalties. This mechanism ensures that fines related to cannabis law infractions are effectively recoverable, even if the property changes ownership.

Comments: Cosponsored by the Rural County Representatives of California (RCRC) and the California Association of Code Enforcement Officers, this bill is similar to AB 491 (Wallis, 2023), a previous RCRC-sponsored measure that failed to advance in the Senate Judiciary Committee.

Status: Pending referral

AB 762 (Irwin/Wilson) Disposable, battery-embedded vapor inhalation device: prohibition. This bill prohibits the sale, distribution, and offering for sale of disposable, battery-embedded vapor inhalation devices (also referred to as integrated vaporizers), beginning January 1, 2026. 

Key provisions:

• Defines “disposable, battery-embedded vapor inhalation device” is any vape device that:
  • Cannot be refilled (i.e., does not allow cartridge or coil replacement).
  • Cannot be recharged (contains a non-rechargeable battery).
• Excludes medical devices classified as:
  • Class I medical devices that are predominantly used in healthcare settings or prescribed by providers.
  • Class II or III medical devices under the Federal Food, Drug, and Cosmetic Act.

• Authorizes cities, counties, or the state to enforce the ban.

• Imposes fines for violations:
  • $500 for the first violation
  • $1,000 for the second violation
  • $2,000 for the third and subsequent violations

Status: Pending referral

AB 895 (Rubio, Blanca) Cannabis. Currently a spot bill. 

Comments: While its intent remains unclear at this time, it is presumed to be a legislative vehicle for the United Cannabis Business Association’s efforts to authorize a tax freeze, preventing the scheduled cannabis excise tax increase on July 1, 2025. The bill may also propose broader tax reforms benefiting medicinal cannabis patients.

Status: Pending referral

AB 998 (Hadwick) Household hazardous waste: vape pens. This bill modifies existing hazardous waste laws to explicitly include vape pens as household hazardous waste when collected by schools, allowing for disposal at household hazardous waste collection facilities. The bill also clarifies transportation and treatment procedures and prohibits the resale or redistribution of confiscated vape pens.

Background:

• Existing law regulates hazardous waste management under the Department of Toxic Substances Control (DTSC) and allows household hazardous waste to be disposed of at designated collection facilities.
• Schools frequently confiscate vape pens from students, but the current legal framework does not explicitly provide a pathway for their disposal as household hazardous waste.

Key Provisions:

• Classification of Vape Pens as Household Hazardous Waste:

• • • Presumes that vape pens confiscated by schools were generated by a household and, therefore, retain their household hazardous waste status. This classification is intended to ensure that schools can legally dispose of confiscated vape pens at household hazardous waste collection facilities.

• Transportation & Disposal Requirements:

• • • Requires schools and their contractors to follow existing hazardous waste transport requirements when disposing of vape pens at collection facilities.
    • Provides that confiscated vape pens must be transported in closed containers and comply with volume and weight limitations for household hazardous waste.

• Household Hazardous Waste Collection Facility Authorization:

• • • Provides that these facilities are explicitly permitted to disassemble vape pens for proper separation of hazardous components, including batteries, valves, and electronic parts, as long as the process does not result in an unauthorized release of hazardous materials.

• Prohibition on Redistribution:

• • Prohibits public agencies and contractors from including vape pens in materials exchange programs, preventing confiscated devices from being resold or repurposed.

Comments: This bill is sponsored by RCRC.

Status: Pending referral

AB 1027 (Sharp-Collins) Cannabis: licensed testing laboratories. Currently a spot bill, AB 1027 makes a nonsubstantive change to existing cannabis testing regulations under MAUCRSA.

Comments: This bill is intended to serve as the vehicle to address issues related to cannabis testing integrity, as reported by the Los Angeles Times. The author has approached CaCOA staff and requested that it serve as the bill’s sponsor.

Status: Pending referral

AB 1209 (Rodriguez, Michelle) Workers’ compensation: cannabis industry. An urgency measure, this bill requires all employers licensed under the MAUCRSA to annually submit proof of workers’ compensation coverage. The bill further establishes a compliance schedule, provides assistance for businesses struggling to obtain coverage, and exempts newly compliant employers from penalties for past noncompliance.

Key Provisions:

• Annual Reporting Requirement: Requires cannabis employers to submit proof of workers’ compensation coverage (policy declarations or self-insurance certificate) to the administrative director of the Division of Workers’ Compensation.
• Temporary and Staffing Agencies: Employers may use these agencies to obtain and submit proof of coverage for those workers.
• Compliance Schedule: Includes a phased schedule for licensees to comply, which will be set by the administrative director, beginning with operators representing the largest number of employees.
• Assistance for Employers: Provides that businesses unable to secure workers' compensation are eligible for a 30-day extension.
• Penalty Protection: Provides that qualified employers that secure coverage under this bill will not face civil or criminal penalties for prior noncompliance.
• Third-Party Assistance: Requires the administrative director to contract with agents to connect cannabis businesses with workers’ compensation insurers, banks, and other service providers.

Comments: According to the bill sponsor, the California Risk & Insurance Management Society (CA RIMS), only 11.5% of cannabis employers provide some level of workers' compensation coverage, leaving nearly 97,000 cannabis workers in California without benefits. However, this data appears inconsistent with feedback from CaCOA staff, whose members did not report challenges in obtaining or maintaining workers' compensation coverage.

Status: Pending referral

AB 1332 (Ahrens) Medicinal cannabis: shipments. This bill expands the Medicinal Cannabis Patients’ Right of Access Act to allow licensed microbusinesses with an M-license that engage in retail, distribution, and outdoor cultivation to ship medicinal cannabis directly to patients. The bill prohibits local jurisdictions from banning shipments and ensures free medicinal cannabis donations can also be shipped.

Background: The Medicinal Cannabis Patients’ Right of Access Act, contained in SB 1186 (Wiener, 2022), prohibited local bans on medicinal cannabis delivery to patients, but did not address shipments via commercial carriers.

Key Provisions:

• Direct Shipping of Medicinal Cannabis:

• • • Authorizes licensed microbusinesses (M-license) that conduct retail, distribution, and outdoor cultivation to ship medicinal cannabis directly to patients.
    • Applies existing delivery requirements to shipping, as follows:
      • Cannot exceed daily possession limits under Health & Safety Code Section 11362.77.
      • Must comply with track-and-trace requirements.
      • Payment must be collected before shipment (sale occurs when payment is received).
      • Signature required from a recipient 21+ years old upon delivery.
      • Packages must be labeled “SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.”
      • Cannabis must be cultivated only at the microbusiness’s site or up to five licensed outdoor farms.

• Prohibits Local Jurisdictions From Banning Shipments:

• • Expands the Medicinal Cannabis Patients’ Right of Access Act to prevent local governments from banning shipments of medicinal cannabis.
  • Provides that a city or county may limit a microbusiness to shipping only (i.e., no in-person delivery or storefront sales) if that city or county allowed medicinal cannabis retail as of January 1, 2022.

Status: Pending referral

AB 1397 (Flora) Hemp: low-dose hemp drinks. This bill authorizes the production, sale, and taxation of low-dose hemp drinks in California. It defines low-dose hemp drinks as beverages containing no more than 0.5 mg of THC per container and imposes testing, labeling, and age restrictions. Additionally, it imposes a 10% excise tax on retail sales of these beverages, beginning January 1, 2026, with revenue allocated to regulatory enforcement by the CDTFA and the State Department of Public Health (CDPH).

Key Provisions:

• Authorizes manufacturers to produce and sell low-dose hemp drinks if they meet the following criteria:
  • Contains ≤0.5 mg total THC per container and ≤0.3% THC concentration.
  • THC concentration must be clearly labeled on the container.
  • Must be tested by an independent laboratory.
  • Cannot contain cannabis as defined under existing law.
• Limits the sale and consumption to individuals 21 years or older.

• Imposes a 10% tax, beginning January 1, 2026, on the gross receipts from retail sales.
• Provides that retailers must:
  • Collect and remit the tax to the CDTFA.
  • Provide customers with an itemized receipt that includes the excise tax.
  • Ensure the excise tax is paid at the time of sale.
• Provides that revenues from the tax be deposited into the newly created Low-Dose Hemp Drink Excise Tax Fund and used for:
  • CDTFA administrative costs for tax collection.
  • CDPH to enforce the provisions of this bill.
• Provides that violations of labeling, sales, or taxation are subject to penalties under the existing Fee Collection Procedures Law and the Sherman Food, Drug, and Cosmetic Law.

Status: Pending referral

AB 1496 (Rubio, Blanca) Cannabis task force. This bill reinstates and expands California’s Cannabis Regulation Task Force, which was previously repealed on January 1, 2025, to include tribal governments that regulate cannabis.

Background: Existing law established the task force until January 1, 2025 whose purpose was to promote communication between state and local entities engaged in the regulation of commercial cannabis activity and facilitate cooperation to enforce applicable state and local laws. AB 993 (Rubio, 2023) expanded the task force to include one representative each from the Civil Rights Department and the Department of Industrial Relations.

Status: Pending referral

SB 378 (Wiener) Online marketplaces: illicit cannabis: reporting and liability. This bill seeks to impose stricter regulations on online marketplaces that facilitate the advertisement and sale of cannabis and hemp products, specifically targeting illicit and unlicensed cannabis and hemp sales. The bill introduces new reporting mechanisms, liability provisions, and enforcement measures to hold online platforms accountable for illegal cannabis and intoxicating hemp sales in California. SB 378 is sponsored by the United Food and Commercial Workers Western States Council.

Key Provisions:

• Online Cannabis Marketplaces:

• • • Definition: The bill defines an online cannabis marketplace as any website, app, or online service that connects consumers with cannabis sellers, transmits sales offers, processes payments, or permits cannabis-related advertisements.
    • Terms of Service Requirements: Requires online marketplaces to state whether they:
      • Allow unlicensed cannabis sellers to advertise on their platform.
      • Verify the licensing status of cannabis sellers using the Department of Cannabis Control’s (DCC) online lookup tool.
    • Consumer Warnings: Provides that platforms that do not verify licenses must display a mandatory warning graphic before consumers can view or engage with marketplace content, cautioning about risks such as:
      • Potential contamination with dangerous substances (e.g., fentanyl).
      • Lack of proper safety labeling.
      • Legal consequences of purchasing from unlicensed sellers.

• Reporting and Enforcement:

• • • Mandatory Reporting Mechanism: Requires marketplaces to implement a reporting tool allowing individuals to report unlicensed cannabis sellers.
    • Response Requirements:
      • Acknowledgment of report receipt within 36 hours.
      • Periodic updates every 14 days.
      • A final determination within 30 days (extendable to 60 days under certain circumstances).
    • Civil Penalties:
      • Violations can result in fines up to $10,000 per violation.
      • Each day a violation continues is considered a separate offense.
      • A successful plaintiff (such as a licensed seller, law enforcement, or the Attorney General) may recover attorney fees and damages.
    • Strict Liability for Online Marketplaces:
      • Provides that if a marketplace facilitates a sale between a consumer and an unlicensed seller, it is strictly liable for any damages resulting from that transaction.
      • Provides that damages may be doubled if the marketplace knew or should have known the seller was unlicensed.
      • Provides that damages may be tripled if the harm is suffered by a child.

• Online Hemp Marketplaces:

• • • Definition: Defines an online hemp marketplace as any online platform where industrial hemp products, including potentially intoxicating hemp derivatives, are advertised or sold.
    • New Reporting Mechanism: Requires platforms to provide a tool for users to report advertisements for intoxicating hemp products.
    • Response Requirements:
      • Written acknowledgment of report receipt within 36 hours.
      • Periodic updates every 14 days.
      • A final written determination within 30 days (extendable to 60 days under extenuating circumstances).
    • Strict Liability for Intoxicating Hemp Products:
      • Marketplaces that connect consumers with sellers of intoxicating hemp products (those exceeding legal THC limits) are strictly liable for any resulting harm.
      • Similar to cannabis provisions, damages may be doubled if the marketplace should have known the product was illegal and tripled if a child is harmed.

• Liability and Penalties:

• • Strict Product Liability:
    • Online marketplaces are treated as retailers and held responsible for the safety of products sold through their platforms.
    • If an unlicensed seller or intoxicating hemp product causes harm, the online marketplace is automatically liable.
  • Injunctions and Enforcement Actions:
    • A marketplace that fails to comply may face court-ordered injunctions to halt operations in California.
    • Penalties for non-compliance with an injunction may reach $500,000.
  • Civil Actions:
    • Any person who identifies an online cannabis marketplace displaying or hosting unlicensed cannabis advertisements may file a lawsuit.
    • If they win, they are entitled to:
      • Reasonable attorney’s fees and costs.
      • A civil penalty of $250,000. 

Status: Pending referral

SB 479 (Arreguín) Cannabis. Currently a spot bill, it is understood that this bill is sponsored by the Cannabis Distribution Association (CDA), and will be amended to address non-payment issues within the licensed cannabis industry. 

Background: Cannabis distributors have long raised concerns about businesses failing to pay for goods and services on time, creating financial instability. Prior attempts (legislation by Assemblymembers Phil Chen and Phil Ting) sought to impose payment deadlines and penalties, but those efforts did not gain traction.

Comments: CaCOA staff obtained language earlier this year from CDA that would require the DCC to suspend a cannabis business license if a state or federal court issues a judgment against the licensee for failing to pay another licensee and if the creditor submits the court order to the DCC at least 30 days after issuance. The language further provides that a suspended license can be reinstated once the licensee fulfills the payment obligations per the court judgment and provides proof of compliance to the DCC.

Status: Pending referral

AB 1088 (Baines) Public health: 7-Hydroxymitragynine. This bill prohibits the sale, distribution, and provision of kratom leaf, kratom products, or any product containing 7-Hydroxymitragynine to individuals under 21 years of age in California. The bill aims to regulate access to kratom, an herbal supplement with stimulant and opioid-like properties, to protect public health.

Status: Pending referral

AB 1103 (Ward) Controlled substances: research. This bill exempts federally registered research on psychedelic therapies for military veterans from review by California’s Research Advisory Panel. This applies to studies at Veterans Affairs (VA) facilities on post-traumatic stress disorder (PTSD), traumatic brain injury (TBI), substance use disorders, and treatment-resistant depression.

Background:

• The California Uniform Controlled Substances Act regulates controlled substance research.
• The Research Advisory Panel of California oversees state-level studies on cannabis and hallucinogens.
• Federal research on psychedelics (e.g., psilocybin, MDMA) is gaining support, particularly for veterans' mental health, with oversight from the DEA.

Status: Pending referral