Bill Sponsors
Representative Marvin L. Abney
Committee
House Finance
Summary
Select
This bill updates the rules for businesses that grow, manufacture, or sell cannabis (marijuana) in Rhode Island. It requires that any licensed cannabis business must enter into and maintain a "labor peace agreement" with a legitimate labor union. This agreement essentially ensures that the business will not try to stop workers from organizing a union, and in return, the union agrees not to strike or stop work. Existing businesses have a set time to comply, and new businesses must promise to do this to get a license. Failure to have this agreement can result in losing their license.
Sponsor
Analysis
Pros for Progressives
- Strengthens the power of the workforce in the emerging cannabis industry by legally protecting their ability to organize and form unions without employer interference.
- Ensures that the economic benefits of the cannabis market are shared more equitably with workers through the potential for collective bargaining on wages and benefits.
- Prevents cannabis corporations from using aggressive union-busting tactics, thereby fostering a more democratic and fair workplace environment.
Cons for Progressives
- Could create a financial barrier to entry for small, minority-owned, or social equity cannabis startups that may not have the resources to manage union contracts immediately compared to large multi-state operators.
- Might inadvertently favor large, established unions over independent, grassroots worker collectives that do not meet the strict statutory definition of a "bona fide labor organization."
- If the costs of unionization are passed entirely to consumers, it could keep prices high, potentially sustaining the illicit market which lacks safety regulations.
Pros for Conservatives
- Ensures business continuity and stability by preventing strikes, picketing, and work stoppages that could disrupt commerce and profitability.
- Secures a reliable stream of tax revenue for the state by minimizing the risk of industry shutdowns due to labor disputes.
- Provides clear regulatory expectations for investors, ensuring that capital investments are not threatened by unpredictable labor unrest.
Cons for Conservatives
- Violates the principles of the free market and freedom of contract by forcing private business owners to engage with third-party labor organizations against their will.
- Imposes significant regulatory burdens and potential cost increases on businesses, which constitutes government overreach into private enterprise.
- Empowers unions politically and financially, which may lead to increased influence of labor organizations over business practices and state politics.
Constitutional Concerns
There is a moderate constitutional risk. Mandating that a private business sign a contract with a third party (a union) can be challenged as a violation of the First Amendment regarding freedom of association. Additionally, opponents may argue this is preempted by the National Labor Relations Act (NLRA), which generally governs private sector labor relations. However, courts have upheld similar provisions when the state acts as a market participant rather than a regulator, though this distinction is legally complex.
Impact Overview
Groups Affected
- Cannabis establishment owners
- Cannabis industry workers
- Labor unions
- Medical marijuana patients
- Adult-use cannabis consumers
Towns Affected
All
Cost to Taxpayers
None
Revenue Generated
None
BillBuddy Impact Ratings
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/15/2026 Introduced, referred to House Finance
Bill Text
Data Pending