SB 415 Summary

• Requires beer wholesalers to maintain bona fide distribution agreements with each of their primary suppliers.

• Increases civil penalties imposed by the Alcohol and Tobacco Commission on brewers, distillers, vintners, and wholesalers from $4,000 to $10,000 and from $2,000 to $5,000 respectively for violations.

• Decreases civil penalties for artisan distiller and microbrewery permit holders.

• Regulates supplier-wholesaler transactions by prohibiting suppliers from fixing resale prices, requiring unwanted shipments, charging for unapproved products, and retaliating against wholesalers for distributing competing products.

• Allows small brewers (producing ≤30,000 barrels annually) to terminate distribution agreements with 60 days' notice and fair compensation to wholesalers, while establishing notice and cure provisions (120 days, or 15 days for bankruptcy/permit revocation) for other suppliers terminating agreements.

• Effective July 1, 2014.