HB391 Alabama 2019 Session

Summary

Primary Sponsor

Chip BrownRepresentative

Republican

Session

Regular Session 2019

Title

Beer suppliers and wholesalers, regulation of contracts governing, revised, Sec. 28-9-5.1 added; Sec. 28-9-4 am'd.

Summary

HB 391 would tighten rules on beer suppliers’ conduct toward wholesalers and clarify when wholesalers take possession and bear risk of beer.

What This Bill Does

It revises the list of actions a beer supplier cannot take against a wholesaler, adding restrictions related to price control, delivery, territory, branding, and retaliation. It requires written exclusive territory agreements and allows limited temporary service arrangements, changing how contracts are formed and enforced. It adds a new section that defines when possession and risk of loss transfer to the wholesaler, generally when the beer is received at the wholesaler's place of business during operating hours.

Who It Affects

• Beer suppliers who distribute and sell beer through exclusive franchise contracts; their conduct toward wholesalers would be subject to the revised prohibitions and requirements.
• Beer wholesalers who receive beer under these contracts; the transfer of possession and risk of loss rules clarify when they assume responsibility and ownership.

Key Provisions

• Prohibits supplier actions such as price fixing, coercing delivery of unordered beer, restricting hours of operation, or tying purchases to other brands.
• Requires written agreements detailing exclusive sales territories and allows a one-time, up-to-90-day temporary service arrangement.
• Adds Section 28-9-5.1 to define possession and transfer of risk: possession occurs when the wholesaler receives beer at its place of business during operating hours; risk of loss shifts at that time; if received at the supplier's place, the wholesaler is deemed to have received the beer.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Alcoholic Beverages