Cannabis entrepreneurs advocate for AB 564 to stabilize California's market

The Senate Revenue and Taxation Committee of the California State Senate convened on July 9, 2025, to discuss Assembly Bill 564, a proposed measure aimed at stabilizing the legal cannabis market in California. The meeting featured testimonies from various stakeholders, including cannabis business owners, employees, and advocates, all expressing support for the bill.

The first speaker, a cannabis business owner, highlighted the challenges faced by the industry, including high excise taxes, inflated rental costs, and security threats. He emphasized that the proposed 25% increase in excise tax would exacerbate the struggles of cannabis businesses, leading to closures and reduced state revenue. He argued that the current tax framework is regressive and detrimental to both business owners and consumers, pushing many towards the illicit market.

Joshua Thube, a bud tender at a unionized dispensary, echoed these concerns, sharing firsthand accounts of how rising taxes have forced customers to reduce their purchases. He noted that many customers rely on cannabis for medical needs and that the increased costs are driving them away from legal dispensaries and into potentially unsafe alternatives.

Several public supporters voiced their backing for AB 564, including representatives from county boards, advocacy groups, and individual business owners. They stressed the importance of maintaining affordable access to legal cannabis and the need for tax relief to prevent further economic strain on the industry. Many emphasized that without this bill, the remaining equity programs and small businesses in the cannabis sector would face severe challenges.

The committee heard from a diverse range of voices, all united in their call for legislative action to support the cannabis industry. The discussions underscored the urgent need for a balanced approach to taxation that considers the unique circumstances of cannabis businesses while ensuring consumer safety and access.

In conclusion, the meeting highlighted the critical state of California's cannabis market and the potential impact of AB 564. Stakeholders urged the committee to consider the long-term implications of tax policies on both businesses and consumers, advocating for a solution that fosters growth and stability in the legal cannabis sector.