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Victory: AB 8 and AB 564 Pass Senate Revenue and Taxation Committee with Unanimous Support
- Laura Braden
- Jul 10
- 2 min read
California's legal cannabis industry achieved a crucial milestone this week as both AB 564 and AB 8 passed out of the Senate Revenue and Taxation Committee with unanimous support, a testament to the strength of our collective advocacy.
The committee recognized that California must stabilize the legal cannabis market to protect public health and safety, as well as preserve tax revenues.
YES ON AB 564 (HANEY) - CANNABIS EXCISE TAX
Assembly Bill 564, co-sponsored by CaCOA, would halt the 25%+ cannabis excise tax hike that took effect on July 1, 2025, and is hurting consumers and patients at a time when many are already struggling with inflation and cost-of-living challenges.
"Since the increase in the excise tax on July 1st, my customers have been forced to make smaller purchases, averaging $30 worth of product instead of their typical $50," testified Joshua Dubé, Perfect Union bartender. "I recently had a customer who manages their chronic pain with cannabis share with me, 'I never thought I'd have to choose between groceries and pain relief.'"
Senator Angelique Ashby (D-Sacramento) delivered some of the most compelling remarks, making it clear that without a stable tax base, community programs (known as Tier 3) that rely on funding from the cannabis tax revenues were at risk. She also emphasized that maintaining program funding required a stable revenue foundation.
WHAT HAPPENS NEXT?
Amendments are being made to implement the 15% rate, effective October 1 (start of Q4), to ensure timely implementation and to avoid mid-quarter disruptions.
AB 564 heads to the Senate Appropriations Committee next month.
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YES ON AB 8 (AGUIAR-CURRY) - INTOXICATING HEMP
Assembly Bill 8 requires intoxicating hemp products to comply with cannabis regulations and taxation, protecting public health and safety, closing dangerous loopholes, and adding millions in new revenue.
The legislation takes direct aim at the flood of intoxicating products masquerading as “hemp” that have been undermining California's legal cannabis market while evading taxes and safety regulations. This legislation represents the most comprehensive effort (to date) to stop the unchecked proliferation of dangerous synthetic products.
"While our officers have not been quick to embrace the legalization of cannabis, we know better than most that a well-regulated industry with state oversight is preferable to the dangerous and often deadly outcomes associated with international cartels and black market cannabis," testified Ryan Sherman with the California Narcotic Officers Association.
WHAT HAPPENS NEXT?
The Department of Cannabis Control has drafted recommended amendments, referred to as technical assistance.
Amendments will be reviewed by the author and CaCOA, the sponsor of the bill.
AB 8 heads to the Senate Appropriations Committee next month.
