Nick Fede Jr., Executive Director, Rhode Island Liquor Operators Collaborative.
A Look Back at the 2026 Legislative Session
By Nick Fede, Jr., Director, Rhode Island Liquor Operators Collaborative
Each legislative session presents new challenges for Rhode Island’s independent beverage alcohol retailers. Some proposals create opportunities, while others threaten the balance of our industry, and the viability of locally owned businesses. The 2026 session was no different, and once again, RILOC was at the State House every step of the way doing what we do best — advocacy.
This year demonstrated exactly why organizations like the Rhode Island Liquor Operators Collaborative exist. Advocacy doesn’t begin when a bill reaches the House or Senate floor — it starts months before, through relationship-building, education, and making sure lawmakers understand how their decisions affect small businesses in their own communities.
The most significant legislation enacted this session was the state’s new “Millionaire’s Tax,” which was ultimately included in the state budget. Despite its name, the impact extends beyond wealthy individuals. Many successful small businesses are structured as LLCs or S-corporations, meaning business income is reported on the owner’s personal tax return. As those businesses grow, owners may find themselves paying higher taxes on money that often goes right back into hiring employees, purchasing inventory, improving facilities, or expanding operations. RILOC joined several of Rhode Island’s leading business organizations in opposing the proposal because we believe Rhode Island should encourage entrepreneurs to grow their businesses here.
One of the biggest successes of the session came when the Bottle Bill and Extended Producer Responsibility legislation did not pass. These proposals would have placed enormous operational burdens on beverage retailers, effectively turning many package stores into recycling centers while increasing costs for consumers. This issue is far from over. A statewide assessment is due later this year, and we fully expect another major debate in 2027. RILOC will be ready.
We also supported the Rhode Island Hemp THC Beverage Act, which unfortunately did not pass after being introduced late in the session. The legislation would have placed intoxicating hemp-derived THC beverages into Rhode Island’s established three-tier beverage alcohol system while prohibiting direct shipment. It was a practical, consumer-focused approach that would have ensured these products were sold responsibly through licensed retailers.
Several proposals that would have weakened Rhode Island’s beverage alcohol marketplace also did not pass. Legislation expanding Class A liquor licenses in Scituate beyond the statutory population formula failed to advance, preserving an important licensing standard. Likewise, legislation allowing caterers to purchase alcohol directly from wholesalers did not pass, protecting retailers that have long served those businesses.
RILOC also opposed several brewery expansion proposals that would have created exceptions to Rhode Island’s three-tier system, including satellite taprooms, expanded self-distribution privileges, and direct keg sales to consumers. None of those measures passed, preserving the regulatory framework that has provided stability and fair competition for decades.
Not every issue ended the way we hoped. Legislation eliminating credit card swipe fees on sales tax collections did not pass, despite its potential to save retailers thousands of dollars annually. Similarly, legislation strengthening penalties for organized retail theft passed the Senate but did not receive House approval. RILOC was proud to be the only trade association publicly supporting that effort because organized retail theft is a growing problem that deserves greater attention from policymakers.
Numerous proposals to substantially increase Rhode Island’s minimum wage also did not pass. However, retailers should remember that previously enacted legislation will raise the state’s minimum wage to $17 per hour beginning this January.
The lesson from this session is simple: advocacy works, but only when people stay engaged. Every email sent to a legislator, every phone call, every meeting, and every person who answered one of our calls to action helped strengthen our industry’s voice. Those efforts matter, and they make a difference.
As we turn our attention to 2027, we already know many of these issues — including the Bottle Bill, THC beverage regulation, and organized retail theft — will return. RILOC will continue fighting to protect independent retailers, defend the integrity of the three-tier system, and advocate for policies that allow locally owned businesses to succeed.
Thank you to every business who stood with us this year. Your engagement makes our advocacy stronger, our industry more united, and our voice impossible to ignore. Together, we’ll be ready for whatever comes next.
Nick Fede Jr. serves as RILOC’s Executive Director, American Beverage Licensees’ Vice President (Off-Premise) and is a third-generation liquor retailer.
