SB 745 Summary

• Franchise agreements apply to all products under the same brand name, with different product categories under a common trade name considered the same brand.

• Wholesalers must sell malt beverages to all retailers in their territory at the same price at time of delivery, with limited exceptions for freight costs, special events up to 14 consecutive days, and promotional materials.

• Suppliers are prohibited from coercing wholesalers into waiving compliance with beer franchise law, withdrawing from wholesaler bank accounts without consent, or threatening to deny approval of mergers or transfers to force agreement to contract amendments.

• Small breweries may revert self-distribution rights back to themselves upon written notice to the wholesaler; breweries must pay fair market value for the distribution rights, with reversion effective five business days after confirmed receipt of notice.

• Suppliers must approve wholesaler mergers, transfers, and sales based on nondiscriminatory qualifications including financial capacity, business experience, and management capability; disapproval in violation of these standards makes suppliers liable for damages.

• ABC Commission may grant waivers allowing a local board's general manager to also serve as finance officer, including for boards operating no more than two stores.

• Mediation may be required by the ABC Commission for disputes between wholesalers and suppliers before litigation.