SB128 Summary

• Defines "small supplier" as a beer supplier whose products do not exceed 20 percent of a wholesaler's total sales in the prior calendar year, with specific rules for calculating sales in controlled groups under 26 U.S.C. § 5051(a)(2)(b).

• Allows small breweries to enter into enforceable written contracts with beer wholesalers that establish the terms for termination, cancellation, or changing their distribution relationship.

• Exempts small supplier relationships from the restrictions in Section 28-9-6 that normally apply to large suppliers, allowing greater contractual flexibility.

• Requires small suppliers providing 30 days' written notice to discontinue sales to identify successor wholesalers, and requires successors to compensate the affected wholesaler at fair market value for distribution rights, with binding arbitration available if parties cannot agree within 30 days.

• Takes effect immediately upon passage and approval by the Governor or upon becoming law.