NEWS & RESOURCES

If you operate a cannabis business in California, you have standing in this conversation. You have data about what AB 762 means for your business, your employees, and your customers.

With respect to cannabis, the January Budget does not propose changes to the state’s cannabis tax structure. However, revenue assumptions embedded in the proposal, when viewed alongside actual tax collection data, underscore ongoing challenges facing California’s legal cannabis market and raise important considerations as the budget process moves forward.

This Tuesday, January 13th, the Assembly Business and Professions Committee will consider Assembly Bill 762 (Irwin), legislation that would prohibit the sale of all-in-one (AIO) cannabis vapes in California. The California Cannabis Operators Association (CaCOA) strongly opposes this bill and has submitted a letter explaining why it is fundamentally flawed.

President Donald Trump signed an executive order (EO) on December 18, 2025, directing federal agencies to expedite the reclassification of cannabis from Schedule I to Schedule III, representing a significant and measured step toward federal recognition of cannabis's medical value.

When Governor Gavin Newsom signed Assembly Bill 564 (Haney) into law this fall, California made a critical decision to protect the public health and safety of cannabis consumers and the community programs that rely on cannabis excise taxes for funding. The bill, which repealed an automatic tax increase and locked the excise tax at 15% until at least 2028, was sound and necessary. And the early data now proves it.