I write in respectful opposition to AB 564 (Haney) and section 34011.2 of AB 8 (Aguiar-Curry), as well as any budget bill that would reverse the agreement made in AB 195 (2022) to adjust the cannabis excise tax this year, to offset the elimination of the cultivation tax.
The signed budget bill SB-141 has already diverted $718 million over the next decade from Prop 64 guaranteed funds for childcare, youth substance abuse prevention, environmental remediation of damages from cannabis grows, and local law enforcement.
Now, these two bills would result in an additional $1.35 billion in cuts over the next 7.5 years, breaking the agreement made in AB 195 with children’s, youth and environmental organizations.
These cuts would:
• Eliminate affordable childcare for tens of thousands of foster children, emergency placements, and low-income families.
• Slash funding for more than 275 youth-serving organizations working in every county to prevent substance abuse.
• Undermine environmental restoration efforts by cutting funds to clean up toxic pesticides and other contaminants from cannabis grows.
• Reduce resources for local law enforcement to employ against illegal cannabis operations.
We must uphold the law and keep the promises made to California voters under Prop 64. Stopping the scheduled restoration of cannabis taxes that began July 1 won't fix the illicit market, which is driven by massive overproduction. It will simply shift over $1 billion dollars in public funds to the cannabis industry - at the expense of kids and families. AB 8's proposed hemp tax would replace only 4%-20% of the lost revenue, according to CDTFA estimates. These bills are NOT revenue neutral -another false claim advanced by industry lobbyists.
Over 100 children's and environmental organizations have urged the legislature to reject these bills. Youth advocates have come to Sacramento to speak out, but well-paid cannabis lobbyists are drowning them out.
Let's keep California’s priorities straight. Please vote No on AB 564 and reject section 34011.2 in AB 8 or any budget bill language that reverses the cannabis excise tax restoration.
Thank you for your consideration.
