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Committee backs requiring labor‑peace agreements for cannabis businesses with 10+ employees
Summary
The committee voted to forward an ordinance amending the police code to require cannabis permit applicants with 10 or more employees to enter labor peace agreements or collective bargaining agreements; labor unions backed the change while industry speakers asked for a short continuance citing legal preemption concerns.
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The Public Safety and Neighborhood Services Committee voted to forward an ordinance amending the Police Code to require cannabis business permit applicants with 10 or more employees to enter into a labor peace agreement (LPA) or collective bargaining agreement with a bona fide labor organization. Committee members said the measure implements earlier policy goals tied to the legalization of adult‑use cannabis and expands worker protections in the emerging industry.
Jennifer Garcia of UFCW Local 648 told the panel the union supports supervisors’ amendments to Police Code sections 16.02 and 16.098, arguing the city should set labor standards for cannabis jobs and give workers the opportunity to organize. "San Francisco workers should be moving forward as this industry moves forward," Garcia said, urging the committee to adopt the amendments.
Industry representatives asked for additional review. Michael Colbruno, speaking for sector operators, said his group had submitted a letter from the law firm Seifert Shaw requesting a continuance on the grounds that aspects of the ordinance may be preempted by federal law as currently drafted and that state‑level developments could be relevant. Another industry representative (SPARC) asked for a one‑week delay or an amendment to make final LPAs a contingent requirement tied to permit renewals, citing practical concerns about negotiating hundreds of agreements within the proposed timetable.
Organized labor provided public support. Jennifer Schwab of the Teamsters and other union speakers argued an LPA requirement protects workers from employers who attempt to avoid collective arrangements and would help transition cannabis jobs into stable, unionized work.
The committee carried the item to the Board with a positive recommendation (no objection). The ordinance will be considered on the Board agenda; attorneys and stakeholders indicated they expect further legal review and negotiation over drafting details.
Next steps: the Board will consider the ordinance; the City Attorney’s office has been asked to be available to answer legal questions about preemption and implementation.
