Bill Commons

CA AB 564

enacted

Cannabis: excise tax: rate increase suspension: report.

California · 2025-2026 Regular Session · lower

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Quick answers

Did CA AB 564 pass?

Yes. CA AB 564 has been enacted into law. Latest recorded action (2025-09-22): Chaptered by Secretary of State - Chapter 127, Statutes of 2025.

What is CA AB 564 about?

Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) , an initiative measure, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) , among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities and establishes the Department of Cannabis Control (DCC) within the Business, Consumer Services, and Housing Agency to administer the act. Existing law, the Cannabis Tax Law, imposes an excise tax upon purchasers of cannabis or cannabis products sold in this state at the rate of 15% of the gross receipts of any retail sale by a cannabis retailer, and, as enacted by AUMA, imposed a cultivation tax on all harvested cannabis that entered the commercial market, as specified. Chapter 56 of the Statutes of 2022 (AB 195) amended AUMA to, among other things, discontinue the imposition of the cultivation tax on July 1, 2022. AB 195, beginning in the 2025–26 fiscal year and every 2 years thereafter, requires the California Department of Tax and Fee Administration (CDTFA) to adjust the cannabis excise tax rate by a percentage that will generate an amount of revenue that would have been collected pursuant to the cultivation tax imposed prior to its discontinuation, as specified, not to exceed 19% of the gross receipts of retail sale. Pursuant to that law, the department increased the cannabis excise tax rate to 19% for the 2025–26 fiscal year. This bill would revise the above-described provisions governing the cannabis excise tax rate. Specifically, the bill, for the period from July 1, 2025, to September 30, 2025, inclusive, would retain the existing cannabis excise tax rate of 19%. For the period from October 1, 2025, to June 30, 2028, inclusive, the bill would decrease the excise tax rate to 15%. Beginning in the 2028–29 fiscal year and every 2 years thereafter, the bill would require the department to adjust the cannabis excise tax rate by a percentage that will generate an amount of revenue that would have been collected pursuant to the cultivation tax imposed prior to its discontinuation, as specified, not to exceed 19%. The bill would also require the DCC, in consultation with the CDTFA and the Legislative Analyst's Office, on or before October 1, 2027, to submit a report to the Legislature that analyzes, among other things, the current and future effect of the Cannabis Tax Law on the regulated cannabis market and recommends options for changes to the Cannabis Tax Law to accomplish the intent of AUMA. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.

Who sponsors CA AB 564?

Haney is the primary sponsor of CA AB 564, joined by 2 cosponsors.

Description

Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) , an initiative measure, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) , among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities and establishes the Department of Cannabis Control (DCC) within the Business, Consumer Services, and Housing Agency to administer the act. Existing law, the Cannabis Tax Law, imposes an excise tax upon purchasers of cannabis or cannabis products sold in this state at the rate of 15% of the gross receipts of any retail sale by a cannabis retailer, and, as enacted by AUMA, imposed a cultivation tax on all harvested cannabis that entered the commercial market, as specified. Chapter 56 of the Statutes of 2022 (AB 195) amended AUMA to, among other things, discontinue the imposition of the cultivation tax on July 1, 2022. AB 195, beginning in the 2025–26 fiscal year and every 2 years thereafter, requires the California Department of Tax and Fee Administration (CDTFA) to adjust the cannabis excise tax rate by a percentage that will generate an amount of revenue that would have been collected pursuant to the cultivation tax imposed prior to its discontinuation, as specified, not to exceed 19% of the gross receipts of retail sale. Pursuant to that law, the department increased the cannabis excise tax rate to 19% for the 2025–26 fiscal year. This bill would revise the above-described provisions governing the cannabis excise tax rate. Specifically, the bill, for the period from July 1, 2025, to September 30, 2025, inclusive, would retain the existing cannabis excise tax rate of 19%. For the period from October 1, 2025, to June 30, 2028, inclusive, the bill would decrease the excise tax rate to 15%. Beginning in the 2028–29 fiscal year and every 2 years thereafter, the bill would require the department to adjust the cannabis excise tax rate by a percentage that will generate an amount of revenue that would have been collected pursuant to the cultivation tax imposed prior to its discontinuation, as specified, not to exceed 19%. The bill would also require the DCC, in consultation with the CDTFA and the Legislative Analyst's Office, on or before October 1, 2027, to submit a report to the Legislature that analyzes, among other things, the current and future effect of the Cannabis Tax Law on the regulated cannabis market and recommends options for changes to the Cannabis Tax Law to accomplish the intent of AUMA. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.

Introduced
2025-05-06
Latest action
2025-09-22 — Chaptered by Secretary of State - Chapter 127, Statutes of 2025.
Bill type
bill
Last updated
—

Subjects

Sponsors

  • Haneyauthor
  • Quirk-Silvaprincipal coauthor
  • Ransomcoauthor

Committees

Not provided by source.

Action timeline

Newest first

  1. 2025-09-22

    Chaptered by Secretary of State - Chapter 127, Statutes of 2025.

    became-law

  2. 2025-09-22

    Approved by the Governor.

    executive-signature

  3. 2025-09-17

    Enrolled and presented to the Governor at 3:30 p.m.

    executive-receipt

  4. 2025-09-11

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 3294.).

    amendment-passage,committee-passage,committee-passage-favorable

  5. 2025-09-10

    In Assembly. Concurrence in Senate amendments pending.

  6. 2025-09-10

    Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 1. Page 2809.).

    passage,reading-1,reading-3

  7. 2025-09-08

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  8. 2025-09-05

    Read third time and amended. Ordered to second reading.

    amendment-passage,reading-1,reading-2,reading-3

  9. 2025-09-03

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  10. 2025-09-02

    Read second time and amended. Ordered returned to second reading.

    amendment-passage,reading-1,reading-2

  11. 2025-09-02

    From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) .

    amendment-introduction,amendment-passage,committee-passage

  12. 2025-08-18

    In committee: Referred to suspense file.

    referral-committee

  13. 2025-07-10

    Read second time and amended. Re-referred to Com. on APPR.

    amendment-passage,reading-1,reading-2,referral-committee

  14. 2025-07-09

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (July 9).

    amendment-introduction,amendment-passage,committee-passage,referral-committee

  15. 2025-06-11

    Referred to Com. on REV. & TAX.

    referral-committee

  16. 2025-06-03

    In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1,referral-committee

  17. 2025-06-02

    Read third time. Passed. Ordered to the Senate. (Ayes 74. Noes 0. Page 1842.)

    passage,reading-1,reading-3

  18. 2025-05-27

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  19. 2025-05-23

    From committee: Do pass. (Ayes 13. Noes 0.) (May 23).

    committee-passage,committee-passage-favorable

  20. 2025-05-14

    In committee: Set, first hearing. Referred to suspense file.

    referral-committee

  21. 2025-05-08

    Re-referred to Com. on APPR.

    referral-committee

  22. 2025-05-07

    Read second time and amended.

    amendment-passage,reading-1,reading-2

  23. 2025-05-06

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (May 5).

    amendment-introduction,amendment-passage,committee-passage,referral-committee

  24. 2025-05-05

    In committee: Set, first hearing. Referred to REV. & TAX. suspense file.

    referral-committee

  25. 2025-04-22

    From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 14. Noes 0.) (April 22). Re-referred to Com. on REV. & TAX.

    committee-passage,committee-passage-favorable,referral-committee

  26. 2025-03-10

    Re-referred to Coms. on B. & P. and REV. & TAX. pursuant to Assembly Rule 96.

    referral-committee

  27. 2025-02-24

    Referred to Coms. on REV. & TAX. and B. & P.

    referral-committee

  28. 2025-02-13

    From printer. May be heard in committee March 15.

  29. 2025-02-12

    Read first time. To print.

    reading-1

Versions

  • 02/12/25 - Introduced — 2025-02-12Compare
  • 05/07/25 - Amended Assembly — 2025-05-07Compare
  • 07/10/25 - Amended Senate — 2025-07-10Compare
  • 09/02/25 - Amended Senate — 2025-09-02Compare
  • 09/05/25 - Amended Senate — 2025-09-05Compare
  • 09/15/25 - Enrolled — 2025-09-15Compare
  • 09/22/25 - Chaptered — 2025-09-22Compare
  • AB564Compare
  • (document, no version)Compare

Documents

Votes

  • Do pass and be re-referred to the Committee on [Revenue and Taxation]

    2025-04-22 · pass · 14-0

    Member-level votes (18)
    • Alanis: yes
    • Chen: yes
    • Haney: yes
    • Ahrens: yes
    • Elhawary: yes
    • Pellerin: yes
    • Lowenthal: yes
    • Macedo: yes
    • Krell: yes
    • Caloza: yes
    • Nguyen: yes
    • Flora: yes
    • Berman: yes
    • Bauer-Kahan: yes
    • Bains: other
    • Jackson: other
    • Hadwick: other
    • Irwin: other

  • Do pass as amended and be re-referred to the Committee on [Appropriations]

    2025-05-05 · pass · 6-0

    Member-level votes (7)
    • McKinnor: yes
    • Gipson: yes
    • Garcia: yes
    • Carrillo: yes
    • Quirk-Silva: yes
    • DeMaio: yes
    • Ta: other

  • Do pass.

    2025-05-23 · pass · 13-0

    Member-level votes (15)
    • Calderon: yes
    • Elhawary: yes
    • Dixon: yes
    • Hart: yes
    • Mark González: yes
    • Arambula: yes
    • Pacheco: yes
    • Solache: yes
    • Caloza: yes
    • Wicks: yes
    • Pellerin: yes
    • Fong: yes
    • Tangipa: yes
    • Ta: other
    • Sanchez: other

  • AB 564 Haney Assembly Third Reading

    2025-06-02 · pass · 74-0

    Member-level votes (79)
    • Addis: yes
    • Garcia: yes
    • Lee: yes
    • Rivas: yes
    • Petrie-Norris: yes
    • Bryan: yes
    • Michelle Rodriguez: yes
    • Rogers: yes
    • Gallagher: yes
    • Wicks: yes
    • Arambula: yes
    • Caloza: yes
    • Ahrens: yes
    • Krell: yes
    • Stefani: yes
    • Harabedian: yes
    • Mark González: yes
    • Calderon: yes
    • Nguyen: yes
    • Patterson: yes
    • Ward: yes
    • Carrillo: yes
    • Blanca Rubio: yes
    • Muratsuchi: yes
    • Patel: yes
    • Solache: yes
    • Chen: yes
    • Bonta: yes
    • Lowenthal: yes
    • McKinnor: yes
    • Ellis: yes
    • Papan: yes
    • Jeff Gonzalez: yes
    • Schiavo: yes
    • Gabriel: yes
    • Dixon: yes
    • DeMaio: yes
    • Pacheco: yes
    • Ávila Farías: yes
    • Aguiar-Curry: yes
    • Ransom: yes
    • Connolly: yes
    • Fong: yes
    • Quirk-Silva: yes
    • Ramos: yes
    • Soria: yes
    • Tangipa: yes
    • Pellerin: yes
    • Elhawary: yes
    • Davies: yes
    • Kalra: yes
    • Wallis: yes
    • Alanis: yes
    • Haney: yes
    • Gipson: yes
    • Macedo: yes
    • Castillo: yes
    • Hart: yes
    • Boerner: yes
    • Alvarez: yes
    • Bauer-Kahan: yes
    • Sanchez: yes
    • Schultz: yes
    • Berman: yes
    • Sharp-Collins: yes
    • Jackson: yes
    • Wilson: yes
    • Hoover: yes
    • Lackey: yes
    • Zbur: yes
    • Flora: yes
    • Bennett: yes
    • Ortega: yes
    • Valencia: yes
    • Celeste Rodriguez: other
    • Irwin: other
    • Ta: other
    • Hadwick: other
    • Bains: other

  • Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]

    2025-07-09 · pass · 5-0

    Member-level votes (5)
    • Umberg: yes
    • Grayson: yes
    • McNerney: yes
    • Valladares: yes
    • Ashby: yes

  • Placed on suspense file

    2025-08-18 · pass · 7-0

    Member-level votes (7)
    • Richardson: yes
    • Seyarto: yes
    • Caballero: yes
    • Cabaldon: yes
    • Dahle: yes
    • Wahab: yes
    • Grayson: yes

  • Do pass as amended

    2025-08-29 · pass · 7-0

    Member-level votes (7)
    • Richardson: yes
    • Grayson: yes
    • Wahab: yes
    • Dahle: yes
    • Seyarto: yes
    • Caballero: yes
    • Cabaldon: yes

  • 3rd Reading AB564 Haney et al. By Cabaldon

    2025-09-10 · pass · 39-1

    Member-level votes (40)
    • Umberg: yes
    • Grove: yes
    • Wiener: yes
    • Niello: yes
    • Jones: yes
    • Wahab: yes
    • Cortese: yes
    • Dahle: yes
    • Alvarado-Gil: yes
    • Limón: yes
    • Seyarto: yes
    • Durazo: yes
    • Choi: yes
    • Archuleta: yes
    • Gonzalez: yes
    • Smallwood-Cuevas: yes
    • Grayson: yes
    • Weber Pierson: yes
    • Hurtado: yes
    • Arreguín: yes
    • Laird: yes
    • Cervantes: yes
    • Rubio: yes
    • McGuire: yes
    • Reyes: yes
    • Blakespear: yes
    • Padilla: yes
    • Valladares: yes
    • Pérez: yes
    • Strickland: yes
    • Stern: yes
    • Allen: yes
    • Caballero: yes
    • McNerney: yes
    • Ochoa Bogh: yes
    • Ashby: yes
    • Richardson: yes
    • Becker: yes
    • Cabaldon: yes
    • Menjivar: no

  • AB 564 Haney Concurrence in Senate Amendments

    2025-09-11 · pass · 76-0

    Member-level votes (80)
    • Ahrens: yes
    • Johnson: yes
    • Dixon: yes
    • Mark González: yes
    • Quirk-Silva: yes
    • Gipson: yes
    • Rogers: yes
    • Addis: yes
    • Ward: yes
    • Haney: yes
    • Hart: yes
    • Fong: yes
    • Calderon: yes
    • Elhawary: yes
    • Wilson: yes
    • Carrillo: yes
    • Bains: yes
    • Ransom: yes
    • Soria: yes
    • Michelle Rodriguez: yes
    • Berman: yes
    • Valencia: yes
    • Wicks: yes
    • Arambula: yes
    • Connolly: yes
    • Schultz: yes
    • Bauer-Kahan: yes
    • Bennett: yes
    • Papan: yes
    • Schiavo: yes
    • Bonta: yes
    • Ávila Farías: yes
    • Aguiar-Curry: yes
    • Jeff Gonzalez: yes
    • Pacheco: yes
    • Boerner: yes
    • Alvarez: yes
    • Lee: yes
    • Alanis: yes
    • Wallis: yes
    • Patterson: yes
    • Stefani: yes
    • Caloza: yes
    • Hoover: yes
    • Sharp-Collins: yes
    • Nguyen: yes
    • Ortega: yes
    • Solache: yes
    • Lowenthal: yes
    • Blanca Rubio: yes
    • Jackson: yes
    • Bryan: yes
    • Gallagher: yes
    • Petrie-Norris: yes
    • Harabedian: yes
    • Gabriel: yes
    • Ellis: yes
    • Macedo: yes
    • Davies: yes
    • McKinnor: yes
    • Zbur: yes
    • DeMaio: yes
    • Pellerin: yes
    • Muratsuchi: yes
    • Hadwick: yes
    • Krell: yes
    • Tangipa: yes
    • Lackey: yes
    • Ramos: yes
    • Patel: yes
    • Kalra: yes
    • Sanchez: yes
    • Rivas: yes
    • Chen: yes
    • Flora: yes
    • Garcia: yes
    • Castillo: other
    • Irwin: other
    • Celeste Rodriguez: other
    • Ta: other

Related bills

No related bills recorded for this bill.

Official source

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB564

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