The proposed bill enacts a new section of the Cannabis Regulation Act, specifically Section 26-2C-34.1, which mandates that cannabis establishments with ten or more employees must enter into, maintain, and abide by the terms of a labor peace agreement with a recognized labor organization. This requirement is a material condition of their operating license, and failure to comply may lead to license suspension or revocation. For establishments with fewer than ten employees, they must provide a written attestation with their application, committing to enter into a labor peace agreement within sixty days of hiring their tenth employee.

Additionally, the bill outlines specific provisions regarding the labor peace agreement, including the establishment's obligation not to interfere with the labor organization's efforts to communicate with employees and the labor organization's commitment to refrain from economic disruptions such as picketing or boycotts. Starting September 1, 2025, the licensing division will not renew licenses for cannabis establishments with ten or more employees unless they provide a signed attestation from a labor organization confirming compliance with the labor peace agreement. The division is also tasked with creating rules to enforce these provisions and will suspend licenses for non-compliance.