California Gov. Gavin Newsom signed a bill Monday to roll back a steep tax increase on the state's cannabis industry, giving the legal market a bit of breathing room.

Known as AB 564, the legislation not only reverses the 25% excise tax increase on the cannabis industry, but also sets the state's cannabis excise tax rate at 15% until 2028, according to a release from the Democrat governor's press office.

"We're rolling back this cannabis tax hike so the legal market can continue to grow, consumers can access safe products, and our local communities see the benefits," Newsom said in a statement.

In addition to cutting taxes on the Golden State's cannabis industry, Newsom's administration stepped up its long-term enforcement efforts against illegal operators.

The Unified Cannabis Enforcement Taskforce has seized and destroyed 317 tons, or 635,303 pounds, of illegal cannabis estimated to be worth $890 million.

Assemblymember Matt Haney, a Democrat who sponsored the bill, said it "helps level the playing field."

"California's cannabis economy can bring enormous benefits to our state, but only if our legal industry is given a fair chance to compete against the untaxed and unregulated illegal market," Haney said Monday. "It protects California jobs, keeps small businesses open, and ensures that our legal cannabis market can grow and thrive the way voters intended."

According to Marijuana Moment, the measure will take effect in October, although the tax increase took effect last month.

"California's cannabis industry was thrown an important lifeline today by Gov. Newsom's signing of AB 564," Brian Camire, chief legal counsel of Weedmaps, told the outlet. "This rollback of a 25% hike in existing taxes will bring greater stability to a faltering market and disincentivize bad actors that undermine legitimate players."

He added, "Gov. Newsom and the bill's author, Assemblymember Matt Haney, recognized the need to act because they know a healthy cannabis industry brings jobs and tax revenues into the communities where they operate."

The bill will reportedly put the tax increase on hold for five years.