AB 564 breaks the original promise of the Cannabis Tax Fund by extending the 15 percent excise tax rate from October 1, 2025 through June 30, 2028, delaying the planned increase that would provide much needed revenue to support subsidized child care slots for low-income families. The bill also requires the Department of Cannabis Control, in consultation with CDTFA, to report to the Legislature by October 1, 2027 with a plan to reform cannabis taxes and examine adjustments to address the loss of revenue resulting from the excise tax rate reduction.