Governor Gavin Newsom has signed AB 564 (Haney) into law allow California’s legal cannabis industry employers to survive against the growing threat of the illegal market by reverting the cannabis excise tax rate to 15 percent for three years. The bill was strongly supported by Local 5 on behalf of hundreds of union members working at dispensaries, delivery companies and other facilities.

“UFCW’s cannabis members applaud Governor Newsom’s signature on AB 564 to protect consumers from unsafe, untested products while supporting the legal cannabis industry. By signing this bill into law, California’s cannabis businesses will see relief from the overwhelming tax burden required to operate legally in our state. We’re proud to have sponsored this legislation that keeps California leading the way in the cannabis industry,” said Local 5 President John Frahm.