Nick Fede Jr., Executive Director, Rhode Island Liquor Operators Collaborative.

By Nick Fede, Jr., Director, Rhode Island Liquor Operators Collaborative

The end of June arrived and, with it, the gavel came down on the 2025 Rhode Island Legislative Session. Many new policies have become law but even more died on the vine with the session coming to a close. The largest impact on small businesses will be the minimum wage increase, which will go to $16 per hour in 2026 and $17 per hour in 2027.

The bill saw opposition from the National Federation of Independent Business and the Rhode Island Business Coalition. However, with a massive budget deficit in play in the final moments of the session, many anti-business bills began to pop up from a slew of different sponsors looking to close the gap, with tax increases targeting a wide variety of industries and individuals. Many of these efforts failed to pass. One proposal, which would have added the sales tax back on wine and liquor, was a direct threat to the beverage alcohol industry. The two major pieces of legislation Rhode Island Liquor Operators Collaborative (RILOC) worked on this session did not pass.

The Bottle Bill, which would add a tax on beverage containers, was pushed to a study commission that will examine the needs of Rhode Island’s declining recycling system. RILOC, along with many other business groups, opposed the original legislation. The Rhode Island Resource Recovery Corporation (RIRRC), which has not seen any major capital improvements in the last 15 years, rejected 29,000 tons of recycling in 2024.

To put it in perspective, the amount rejected would fill 895 football fields. A representative from RIRRC has gone on record stating that 88 years of a bottle bill would save one year of capacity at the landfill, signaling a much larger problem with our recycling system as a whole. Also, the removal of beverage containers from RIRRC’s stream would result in increased tipping fees for municipalities, as beverage containers are some of the most valuable materials RIRRC handles from a resale perspective. These increased costs would have been passed on to taxpayers.

The THC Beverage Regulatory Act also did not get past the finish line. RILOC, the Rhode Island Hospitality Association and our associated alcohol wholesalers pushed for the legislation, which would have regulated hemp-derived THC beverages in a three-tier system that mirrored beverage alcohol. It would have introduced higher testing standards and stricter licensing requirements in an effort to make the products safer for the general public, as well as keeping these intoxicating products far from the reach of underaged individuals. The legislature instead opted to issue a request to the Cannabis Control Commission, asking for guidance on how to better regulate this emerging category.

The 2025 Legislative Session was far from quiet. In all, RILOC tracked more than 50 pieces of legislation that would have had an impact on you and your business. It underscores the importance of participation, communication and teamwork. If you’re not involved with us, the time is now to step up and make your voice heard.

As we face much uncertainty with funding from the federal government, expect another active session next year, with most likely another budget deficit to be closed. There’s never been a more important time to be plugged in with local government and your members in the General Assembly. Staying engaged within your community will give you a valuable seat at the table when it comes time for your voice to be heard.

As this article goes to print, I will be in San Antonio, Texas, at the 2025 American Beverage Licensees (ABL) Annual Meeting and Convention. Retailers from around the country will be the invited guests of our friends at the Texas Package Stores Association (TPSA), where they will be holding their massive trade show in conjunction with the ABL festivities. The TPSA trade show is the largest of its kind in the country and features thousands of beers, wines and spirits. Stay tuned for a full review of the programming in next month’s edition of the Beverage Journal.

Nick Fede Jr. serves as RILOC’s Executive Director, American Beverage Licensees’ Vice President (Off-Premise) and is a third-generation liquor retailer.