HB 481 Summary

• Prohibits consignment sales of malt beverages between distributors and vendors; all sales must be bona fide sales.

• Allows return of undamaged product only within 7 days of delivery for exchange or credit, except in specified circumstances including regulatory changes, vendor termination, quality control, manufacturer recalls, product discontinuation, and seasonal closures.

• Permits return of damaged product within 7 days for exchange or credit only, with distributor verification required; product damaged by vendor or customers remains vendor liability.

• Allows return of out-of-code product for exchange only when manufacturer has written policies specifying removal dates and ensures out-of-code product does not reenter retail market.

• Requires distributors maintaining records for 3 years with vendor information and return documentation; establishes civil penalties up to $1,000 per violation; clarifies authorized returns are not gifts or loans prohibited under tied house laws.