(a) As used in this section:

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(1) “Bona fide labor organization” means (A) with respect to a labor peace agreement entered into on or before September 30, 2023, a labor union that (i) represents employees in this state with regard to wages, hours and working conditions, (ii) whose officers have been elected by a secret ballot or otherwise in a manner consistent with federal law, (iii) is free of domination or interference by any employer and has received no improper assistance or support from any employer, and (iv) is actively seeking to represent cannabis workers in the state, and (B) with respect to a labor peace agreement entered into on or after October 1, 2023, a labor union that is included on the list established and periodically updated by the department pursuant to subsection (b) of this section;

(2) “Labor peace agreement” means an agreement between a cannabis establishment and a bona fide labor organization under this section pursuant to which the owners and management of the cannabis establishment agree not to lock out employees and that prohibits the bona fide labor organization from engaging in picketing, work stoppages or boycotts against the cannabis establishment;

(3) “Cannabis establishment”, “dispensary facility” and “producer” have the same meanings as provided in section 21a-420; and

(4) “Licensee” means a cannabis establishment licensee, dispensary facility or producer.

(b) (1) Not later than October 1, 2023, the department shall establish and periodically update a list of labor unions that (A) are actively seeking to represent cannabis workers in this state, and (B) satisfy the criteria established in subdivision (2) of this subsection.

(2) Not later than September 1, 2023, the department shall accept applications for inclusion on the list established pursuant to subdivision (1) of this subsection. Any labor union that wishes to be included on such list shall submit an application to the department, in a form and manner prescribed by the department. As part of such application, such labor union shall attest, under penalty of false statement, that such labor union:

(A) Is actively seeking to represent cannabis workers in this state;

(B) Satisfies at least two of the following criteria:

(i) Such labor union represents employees in this state with regard to wages, hours and working conditions;

(ii) Such labor union has been recognized or certified as the bargaining representative for cannabis employees employed at cannabis establishments in this state;

(iii) Such labor union has executed one or more collective bargaining agreements with cannabis establishment employers in this state, which agreement or agreements remain effective on the date of such labor union’s application under this subsection; or

(iv) Such labor union has spent resources as part of one or more attempts to organize and represent cannabis workers employed at cannabis establishments in the state, which attempt or attempts remain active on the date of such labor union’s application under this subsection;

(C) Has filed the annual report required by 29 USC 431(b) for the three years immediately preceding the date of such labor union’s application under this subsection;

(D) Has audited financial reports covering the three years immediately preceding the date of such labor union’s application under this subsection;

(E) Was governed by a written constitution or bylaws for the three years immediately preceding the date of such labor union’s application under this subsection;

(F) Is affiliated with regional or national associations of unions, including, but not limited to, central labor councils;

(G) Is overseen by officers elected by secret ballot or otherwise in a manner consistent with federal law;

(H) Is free from domination or interference by any employer; and

(I) Has not received any improper assistance or support from any employer.

(3) In the event of any change in the information that a labor union submits to the department under this subsection, the labor union shall correct or update such information, in a form and manner prescribed by the department, not later than thirty days after the date of such change.

(4) In the event that a labor union no longer satisfies the criteria established in subdivision (2) of this subsection, the labor union shall notify the department, in a form and manner prescribed by the department and not later than thirty days after such labor union no longer satisfies such criteria, that such labor union no longer satisfies such criteria. The department shall remove such labor union from the list prepared pursuant to subdivision (1) of this subsection.

(c) Any provisional cannabis establishment licensee, dispensary facility or producer shall, as a condition of its final license approval, license conversion or approval for expanded authorization, respectively, enter into a labor peace agreement with a bona fide labor organization. Any such labor peace agreement shall contain a clause that the parties agree that final and binding arbitration by a neutral arbitrator will be the exclusive remedy for any violation of such agreement.

(d) Notwithstanding the provisions of chapter 54, if an arbitrator finds that a licensee failed to comply with an order issued by the arbitrator to correct a failure to abide by such agreement, upon receipt of a written copy of such finding, the department shall suspend the licensee’s license without further administrative proceedings or formal hearing.

(e) A licensee or bona fide labor organization may commence a civil action in the Superior Court in the judicial district where the facility used in the operation of a cannabis establishment is located to enforce the arbitration award or to lift the license suspension. The license shall remain suspended until such time that: (1) The arbitrator notifies, or both of the parties to the arbitration notify, the department that the licensee is in compliance with the arbitration award; (2) both of the parties to the arbitration notify the department that they have satisfactorily resolved their dispute; (3) the court, after hearing, lifts the suspension; or (4) the court, after hearing, orders alternative remedies, which may include, but need not be limited to, ordering the department to revoke the license or ordering the appointment of a receiver to properly dispose of any cannabis inventory. Except as provided in subsection (f) of this section, during such time that a license is suspended pursuant to this section, the licensee may engage in conduct necessary to maintain and secure the cannabis inventory, but may not sell, transport or transfer cannabis to another cannabis establishment, consumer or laboratory, unless such sale or transfer is associated with a voluntary surrender of license and a cannabis disposition plan approved by the commissioner.

(f) A producer, cultivator or micro-cultivator may sell, transport or transfer cannabis to a product packager, food or beverage manufacturer, product manufacturer, dispensary facility or hybrid retailer for the sale of products to qualified patients or caregivers, which products shall be labeled “For Medical Use Only”.