Repeals Ballot Measure 119 (2024) that requires certain licensees of the Oregon Liquor and Cannabis Commission to enter into labor peace agreements with bona fide labor organizations representing the licensees' employees.
Summary
HB 4162 repeals Sections 1, 2, and 3 of chapter 1, Oregon Laws 2025, which were enacted through Ballot Measure 119 (2024). In practical terms, the bill removes the statutory requirement that certain Oregon Liquor and Cannabis Commission licensees enter into labor peace agreements with bona fide labor organizations representing their employees. The measure is a straightforward repeal bill and does not create a new regulatory framework in its place.
By eliminating the labor peace agreement mandate, the bill changes the legal obligations of affected cannabis-related licensees and the labor organizations that represent or seek to represent their workers. The repeal affects Oregon’s cannabis labor relations rules and restores the prior legal landscape for those licensees, reducing a state-imposed unionization-related condition tied to licensure. The bill was enacted as Chapter 73 of the 2026 Oregon Laws and is scheduled to take effect on January 1, 2027.
Impact
HB 4162 amends Oregon law by repealing the provisions added by Ballot Measure 119 (2024) that required certain OLCC cannabis licensees to maintain labor peace agreements with bona fide labor organizations. This removes a statutory condition on cannabis licensing and changes the compliance obligations for affected businesses, while also limiting the leverage of labor organizations in the cannabis sector under that measure. The repeal becomes effective January 1, 2027.
Sentiment
The bill appears to have been broadly supported in the Legislature. It passed the House 44-2 and the Senate 28-0, with unanimous committee do-pass recommendations in both chambers. The strong vote margins suggest little legislative resistance to repealing the labor peace agreement requirement, although the bill’s sponsorship at the request of UFCW Local 555 indicates organized labor interest in the issue.
Contention
The central point of contention is the underlying labor peace agreement requirement itself: supporters of repeal viewed it as an unnecessary or burdensome condition on cannabis licensees, while labor advocates and unions have an interest in preserving mechanisms that support organizing and labor stability. Because the bill was a repeal of a recently adopted ballot measure, the debate is best understood as a conflict between cannabis industry/licensee interests and labor organizations over unionization rules in the regulated cannabis market. The recorded votes show very limited formal opposition in the Legislature.
Establishing limitations and deadlines for legislative measures for the 2026 regular session of the Eighty-third Legislative Assembly, and providing certain labor negotiation procedures.