California Cannabis Operators Praise State Assembly for Passing AB 564

SACRAMENTO, Calif. – Today, the California Assembly passed Assembly Bill 564 (Haney), which rolls back the cannabis excise tax from 19% to 15% starting October 1, 2025, through June 30, 2028. The CaCOA co-sponsored bill now heads to Governor Newsom's desk, where he has committed to signing it into law.

In response, CaCOA’s Executive Director, Amy O'Gorman Jenkins, issued the following:

"Today's passage of AB 564 proves that sound policy wins when lawmakers listen to data over rhetoric. This bill protects consumers from dangerous illicit products while preserving the tax revenue that supports essential programs like childcare and community reinvestment. 

By stopping this misguided tax hike, the Legislature recognized that smart policy grows revenue by keeping the legal market viable. Driving consumers away from regulated dispensaries undermines public safety and reduces funding for the very programs we all want to protect.

Today’s result is one step closer to what Proposition 64 promised: patients and consumers accessing tested, regulated products while generating sustainable tax revenue for communities. This vote saves thousands of jobs and prevents hundreds of small businesses from closing their doors. We're deeply grateful to Assemblymember Haney and both chambers of the Legislature for choosing fiscal responsibility and consumer protection over strengthening the illicit market."

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MEDIA CONTACT: Laura Braden, laura@onmessage.co