Sacramento Capitol with leaf cloud

California Bills Addressing Cannabis Taxes, Hemp, Research Signed into Law; Direct-Access Bill for Patients Vetoed

UPDATED 10/13/2025

Six cannabis-related bills made it through the legislature this year and four were signed into law, while ten failed to advance.

A bill from Asm. Haney to rollback cannabis taxes that Cal NORML sponsored became law, as did bills to regulate hemp from Asm. Aguiar-Curry and Sen. Wiener, and a bill from Asm. Ahrens to reduce the regulatory burden on cannabis research. The Governor vetoed a bill to expand local enforcement against cannabis, and a bill from Asm. Ahrens that Cal NORML support to allow microbusiness to ship certain cannabis products directly to patients.

A group poses on government building steps, holding banners celebrating AB 564 and the California cannabis excise tax as Gov. Newsom signs the bill into law. A large green badge proclaims, "WE DID IT! AB 564 IS LAW. CA Norml

WE DID IT! Gov. Newsom Signs AB 564 to Lower CA’s Cannabis Excise Tax Back to 15% on October 1

A group of Cal NORML supporters attend a press conference with Assembly Member Haney during Citizen Lobby Day on the steps of a California state Capitol, holding signs supporting AB 564. Text explains the cannabis excise tax law's passage, credits Cal NORML, and thanks supporters for their action.

Governor Newsom has signed the Cal NORML-sponsored bill, AB 564 (Haney), to roll back the cannabis excise tax increase that happened on July 1 from 19% back to 15% on October 1, 2025.

Thanks to all Cal NORML’s supporters who helped lobby for the bill (including at our Lobby Day in March), and all who wrote letters via Cal NORML’s Action Network.

Support Cal NORML’s efforts to stop a tax increase in California by making a membership donation today! Business Memberships starting at $50 monthly include a directory listing and other perks.

Logo for "California NORML Reports" featuring green text for "California" with a stylized cannabis leaf above it, and bold black text for "NORML REPORTS" below—perfect for updates on CA Hemp Regulations or CDPH hearing news. CA Norml

CDPH Holds Hearing on CA Hemp Regulations

Logo for "California NORML Reports" featuring green text for "California" with a stylized cannabis leaf above it, and bold black text for "NORML REPORTS" below—perfect for updates on CA Hemp Regulations or CDPH hearing news. CA Norml

 

Read the hearing transcript: Public Hearing Serving Size and Age for Industrial Hemp Transcript

Regulations webpage: DPH-24-005E Emergency Regulations for Serving Size, Age, and Intoxicating Cannabinoids for Industrial Hemp

7/28/25 – The California Dept. of Public Health held a hearing today on proposed regulations extending a ban on hemp-derived products with any amount of THC, along with establishing an age limitation of 21, limiting the number of doses per container to five, etc. The full transcript of the hearing will be available later today or tomorrow, and comments are accepted until the end of business day.…

Line graph comparing monthly California Cannabis sales and Michigan from 2021 to 2025. California sales, impacted by the Cannabis Tax Increase, decrease overall, while Michigan sales rise, with both states' numbers converging by 2025. CA Norml

Initial Impacts of The California Cannabis Excise Tax Increase

Line graph comparing monthly California Cannabis sales and Michigan from 2021 to 2025. California sales, impacted by the Cannabis Tax Increase, decrease overall, while Michigan sales rise, with both states' numbers converging by 2025. CA Norml

Cal NORML put out word through our email alert list this week asking cannabis consumers and businesses to tell us about the initial impacts of the 26% excise tax increase that hit cannabis in California on July 1. Several consumers and businesses reported damaging repercussions; some of the responses are below.

“To be honest even the old tax had me wanting to go back to the black market but with the new tax it’s even more likely that I will start looking to get my cannabis from some place cheaper,” wrote one consumer.…

An older man in a beige suit speaks into a microphone while holding a paper that reads "1,420 Californians Say: STOP HIGHER TAXES!" at a California legislative session discussing the cannabis industry and tax increase repeal (AB 564). CA Norml

AB 564 to Stop a Cannabis Tax Increase Heads to Senate Appropriations Committee

UPDATE September 10, 2025 – AB 564 has passed both houses of the California legislature and is heading to the Governor’s desk.

UPDATE July 9, 2025 – On the 50th anniversary of cannabis decriminalization in California, AB 564 passed through the Senate Revenue and Tax committee, its first stop in the Senate after passing in the Assembly by a vote of 74-0. An amendment would roll the tax back from 19% (enacted on July 1) back to 15% on October 1.

Graph showing cannabis felonies in California from 1960–2020, peaking in 1975 at 85,757 before falling sharply after marijuana decriminalization and the Moscone Act, with Cal NORML noting $100 million annual enforcement savings. CA Norml

Cal NORML Celebrates the 50th Anniversary of Marijuana Decriminalization in California in July

Graph showing cannabis felonies in California from 1960–2020, peaking in 1975 at 85,757 before falling sharply after marijuana decriminalization and the Moscone Act, with Cal NORML noting $100 million annual enforcement savings. CA NormlJuly 9, 2025 marks the 50th anniversary of California’s landmark marijuana decriminalization law, the Moscone Act, which reduced the penalty for possessing an ounce or less of marijuana from a felony to a citable misdemeanor punishable by a $100 fine and no jail. The law, sponsored by then-Senator George Moscone and California NORML, was signed by Gov. Jerry Brown on July 9, 1975 and took effect on January 1, 1976.

The Moscone Act resulted in an 80% reduction in felony marijuana arrests, saving the state an estimated $100 million per year in enforcement costs, and saving well over a million users from a criminal record over the years.…

Cal NORML director Dale Gieringer points to a timeline about marijuana law reform in California, showing how people could be arrested for felony possession for a joint before 1976.

Arrested for a Joint in California Before 1976? We Want to Hear From You

Cal NORML director Dale Gieringer points to a timeline about marijuana law reform in California, showing how people could be arrested for felony possession for a joint before 1976.

Were you arrested for possessing an ounce or less of marijuana in California before 1976?  If so, Cal NORML would like to hear your story.

This year marks the 50th anniversary of California’s landmark decriminalization law, the Moscone Act, which was sponsored by Cal NORML and decriminalized possession of one ounce of marijuana from a felony to a minor misdemeanor. The Moscone Act cut the number of marijuana felonies in California from over 100,000 to 20,000 in a year, saving the state $100 million in arrest costs, not to mention the human costs for arrestees.…

A government meeting in a large, modern chamber with people seated in a semicircle. Two American flags and one California flag are displayed. A screen reads “AB 564 Haney Bill on Cannabis Tax Increase Repeal,” backed by Cal NORML. CA Norml

Cal NORML-Sponsored Bill to Halt A Cannabis Tax Increase Passes First Committee

A government meeting in a large, modern chamber with people seated in a semicircle. Two American flags and one California flag are displayed. A screen reads “AB 564 Haney Bill on Cannabis Tax Increase Repeal,” backed by Cal NORML. CA Norml

WRITE TO YOUR LEGISLATORS AND GOV. NEWSOM AND ASK THEM NOT TO RAISE CANNABIS TAXES IN 2025

Update 5/8/2025 – AB 564, to halt a cannabis tax increase this year, passed through its second committee with another unanimous vote. It now goes to Assembly Appropriations. Meanwhile, the Governor and both legislative houses are finalizing their budgets for the year.

Please take action on our new alert targeted at the full legislature and the Governor, asking them not to increase cannabis taxes in 2025.

A large group gathers in front of a building with arched doorways, holding signs for cannabis advocacy. Messages like "Keep Jail for the Real Crime" and "Higher Wages, Lower Taxes" resonate. At the forefront, a person in a wheelchair champions AB 564, urging California to rethink Cannabis Tax policies. CA Norml

Lobby Day Attendees Advocate for Stopping a Cannabis Tax Increase in California

The Cal NORML/ASA Lobby Day yesterday in Sacramento brought in a score of citizen lobbyists from across the state to meet with legislators or their staffers in support of AB 564 (Haney), to halt a pending cannabis tax increase from 15% to 19% on July 1.

Christina Dempsey, Deputy Director of Government Affairs at the CA Dept. of Cannabis Control, spoke to the group about the report the DCC just issued on the state of the cannabis market in California. In particular, she highlighted the finding that an estimated 60% of cannabis sold in the state comes from the illicit market, with only 40% from the legal, licensed and taxed market.…

A presentation slide titled "What does the data tell us?" shows a graph and text about the cannabis market in 2024. It highlights a decrease in retail sales value by 4.4%, growth in units sold by 5.2%, and a decline in licenses by 18%. Additionally, it notes that the cannabis market is maturing, with increased consumption and production despite decreasing prices, and suggests consolidation for more price stability. CA Norml

“Joint” Hearing Held on Condition of California Cannabis Industry

A “Joint” informational hearing on March 11 before the Assembly and Senate Business and Professions committees on the CA Department of Cannabis Control’s new Condition and Health of the Cannabis Industry Report presented a grim picture of the state of the industry and its future.

Asm. Mike Gipson (D-LA), chair of the Assembly Revenue & Tax committee, and Asm. Sharon Quirk-Silva (D-Buena Park) who chairs the Budget subcommittee that oversees the Department of Cannabis Control (DCC), also participated. Quirk-Silva said the findings in the DCC report are “very concerning.”…