SB278 Alabama 2013 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Session

Regular Session 2013

Title

Beer, wholesalers and suppliers, provide uniform freight on board (FOB) price, prohibit discrimination in price, clarify requests for audited profit and loss statements, penalties, Sec. 28-9-4, am'd.

Summary

SB278 would regulate beer suppliers' dealings with wholesalers in Alabama by standardizing prices, banning back-charges and discriminatory pricing, clarifying financial-record requests, and imposing penalties for violations.

What This Bill Does

If enacted, it would require a uniform FOB delivered price for beer to all Alabama wholesalers and ban suppliers from collecting a different price after quotes or bills. It would prohibit price discrimination between wholesalers and allow only limited exceptions (such as more favorable freight costs or short promotional activities). It would prevent suppliers from requiring audited financial statements for renewal and establish fines and possible license penalties for violations. It would also require written agreements with exclusive sales territories and set out related prohibition and sanction provisions.

Who It Affects

• Beer suppliers: must adopt a uniform FOB price, refrain from back-charging or discriminatory pricing, provide written agreements with exclusive territories, and could face fines or license penalties for violations.
• Wholesalers licensed in Alabama: receive protections against discriminatory pricing and coercion, retain the ability to set retail prices within the new framework, and operate under written agreements with defined territories; they are affected by new prohibitions and potential penalties.

Key Provisions

• Uniform FOB price: suppliers must establish and apply a uniform FOB delivered price for beer to all Alabama wholesalers, with a uniform formula adding transportation costs.
• No back-charging / price collection: suppliers may not reach back to collect a different price from wholesalers than the posted or billed price.
• Discrimination ban with exceptions: prohibits discrimination in price, allowance, rebate, refund, commission, discount, or service between Alabama wholesalers, with specific exceptions for freight costs and certain short-term promotions and marketing items.
• Written agreements with exclusive territories: requires written contracts designating exclusive sales territories and renewals consistent with the chapter.
• Audited financial statements: prohibits requiring wholesalers to submit audited financial statements as a condition of renewal.
• Penalties: violations carry fines of $100 to $1,000 and may lead to license denial, suspension, or other penalties.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverages