SB346 Alabama 2019 Session

Summary

Primary Sponsor

Cam Ward

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

SB 346 would limit beer suppliers' power over wholesalers by revising prohibited acts under exclusive contracts and by clarifying when possession and risk of loss pass to the wholesaler.

What This Bill Does

The bill tightens rules on how beer suppliers can interact with their assigned wholesalers. It adds numerous prohibitions on supplier actions, including how they set or adjust prices, control hours, require deliveries, restrict brand choices, demand financial information, or penalize wholesalers. It also establishes a clear point at which possession and risk of loss transfer from supplier to wholesaler, and it sets rules for transfers and associations among wholesalers.

Who It Affects

• Beer wholesalers who have exclusive distribution agreements with suppliers, as their rights and duties would be protected from many supplier practices and clarified by the new transfer and possession rules.
• Beer suppliers, as they would be restricted from a wide range of actions and required to follow standardized contract and transfer procedures.

Key Provisions

• Amends Section 28-9-4 to prohibit a supplier from actions such as failing to provide written exclusive-territory agreements, fixing prices, adjusting wholesale-to-retailer price-based discounts, controlling operating hours, or pressuring wholesalers to accept unordered deliveries.
• Prohibits coercive practices like forcing delivery of unordered beer, requiring purchases of certain brands, demanding audited financial statements, withholding deliveries in bad faith, or using supplier advertising funds to control wholesalers.
• Protects wholesalers from undue interference in transfers, manager changes, or delays in approving transfers, and prohibits actions that retaliate against wholesalers for complaints or force nondiscriminatory standards.
• Allows a temporary 90-day period for a wholesaler to service a territory if temporarily designated, without granting the temporary entity full rights under Sections 28-9-6 and 28-9-8.
• Adds Section 28-9-5.1 to define possession and risk of loss: possession occurs when the wholesaler receives beer at its business during operating hours, and risk of loss shifts at that moment; if the wholesaler takes possession at the supplier's location, possession is considered received.

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