Overview

• AB 564, authored by Assemblymember Matt Haney, cancels a planned 25% excise tax increase and fixes the cannabis excise rate at 15% through July 2028.
• The measure overturns a scheduled rise to 19% at retail that followed the 2022 removal of the cultivation tax.
• The administration is directing cannabis tax revenue to fund civil and criminal enforcement targeting unlicensed operators.
• The Unified Cannabis Enforcement Taskforce reports more than 317 tons of illegal cannabis seized, valued at about $890 million, across nearly 230 multiagency operations since 2022.
• BSCC expanded grant eligibility to local jurisdictions to bolster enforcement, and the rollback leaves a projected $200–$250 million annual gap for voter‑mandated programs to be covered by the state’s general fund.