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Legislative Victory: Senate Appropriations Passes AB 8 (intoxicating hemp) and AB 564 (cannabis excise tax)
- Laura Braden
- Aug 29
- 3 min read
The California Cannabis Operators Association is thrilled to announce the Senate Appropriations Committee has passed critically important legislation to protect public health and safety and the integrity of the legal cannabis market.
Assembly Bill 8 (Aguiar-Curry) (Passed unanimously!)
AB 8, co-sponsored by CaCOA and supported by a coalition of over 500 licensed cannabis operators and 100 cannabis employees statewide, offers a responsible, science-based, and enforceable path forward to protect consumers from dangerous, unregulated products masquerading as "hemp" while supporting California's legal cannabis industry.
AB 8 builds on the enforcement framework of AB 45 (Aguiar-Curry, 2021) and fulfills a long-standing legislative commitment to integrate naturally occurring, non-intoxicating cannabinoids derived from hemp into the regulated cannabis supply chain.
In response, Amy O'Gorman Jenkins, CaCOA's Executive Director issued the following:
“Today's vote is a major victory for public health and consumer safety in California. Assembly Bill 8 closes dangerous loopholes that allow untested, unregulated intoxicating products to be sold online, at gas stations, and in convenience stores, often reaching minors. By bringing hemp-derived THC products under proper oversight while preserving access to safe non-intoxicating CBD products, we are one step closer to finally creating a level playing field our licensed businesses deserve. AB 8 protects consumers from potentially harmful synthetic compounds, and it strengthens California's regulated cannabis market by ensuring all intoxicating products meet the rigorous safety standards voters demanded when they passed Proposition 64. We're proud to have championed this common-sense measure. We thank Assemblymember Aguiar-Curry for her steadfast leadership and the Newsom Administration for providing critical technical guidance. AB 8 draws a clear line: in California, intoxicating hemp products should no longer undercut public health, youth safety, or the integrity of our legal cannabis market.”
Assembly Bill 564 (Haney)
AB 564, co-sponsored by CaCOA, restores the excise tax rate from 19% to 15%, a critical step to protect public health and stabilize the legal market. This bipartisan legislation has received widespread support in both chambers and from Governor Gavin Newsom. The legislation will prevent more consumers being forced to the illicit market (due to higher taxes) and protect the community programs (known as Tier 3 beneficiaries) that depend on cannabis tax revenues.
In response, Amy O'Gorman Jenkins, CaCOA's Executive Director issued the following:
“Today's vote is a victory for Californians. By protecting public health and safety, honoring the will of voters, and safeguarding tax revenue that supports essential community programs, Assembly Bill 564 sets the state’s cannabis policy back on the right track. The bill rolls back a reckless 27% cannabis excise tax increase that threatened to drive more consumers back to dangerous, untested illicit products while actually reducing state revenue for childcare, environmental programs, and important public health initiatives. Instead, the Senate chose to protect and grow cannabis tax revenues to ensure a sustainable, long-term legal industry. This will help keep patients and consumers in the regulated market, where products are tested, tracked, and taxed – exactly what Prop 64 intended. Beyond preserving critical funding streams, today’s outcome signals that the Legislature is listening. With the passage of AB 564 out of the Senate Appropriations Committee, lawmakers have taken a critical step to save thousands of jobs and hundreds of small businesses that were already hanging by a thread. We're grateful to our author, Assemblymember Haney, and legislative leaders who understood that sound tax policy protects both communities and commerce.”
Both bills now head to a Senate floor vote and then back to the Assembly for concurrence in Senate amendments...and then to Governor Newsom's desk for signing into law. CaCOA will continue to keep our members updated on developments!
