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HD 3414

An Act amending successor supplier laws

194th Legislature (2025-2026) Introduced by John Mahoney

Creates a defined successor-supplier who inherits wholesaler contracts, keeps 25E protections, and credits pre-succession sales to the successor for the six-month test.

Senate concurred
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Bill Summary · HD 3414

Summary: House Bill HD 3414 — An Act Amending Successor Supplier Laws

Bill at a Glance

  • Bill Number: HD 3414
  • Title: An Act amending successor supplier laws
  • Status: Senate concurred (as of 2025-02-27); referred to the Committee on Consumer Protection and Professional Licensure (same date)
  • Introduced: February 27, 2025
  • Filed / Docket: House Docket No. 3414; Presented by Representative John J. Mahoney (Worcester, 13th Worcester)
  • Official aim: Clarify and expand protections related to “successor suppliers” and their obligations to licensed wholesalers in the Commonwealth, in relation to brand-name items.

What the bill would do (purpose and intent)

  • Establish a clear definition and framework for “successor suppliers”—any person who acquires the right or obligation to sell a brand-name item to a licensed wholesaler in Massachusetts.
  • Ensure successor suppliers are bound by existing agreements with wholesalers at the time of succession.
  • Preserve and extend the protections of existing law that require suppliers to offer brand-name items to wholesalers (the protections in section 25E).
  • Attribute pre-succession sales to the successor for purposes of satisfying the “six months of regular sales” requirement under the existing law (section 25E).

Key provisions (summary of the new section 25E 7/8)

  1. Definition of successor supplier
    • A successor supplier is any person who acquires, directly or indirectly, the right or obligation to sell a branded item to a Massachusetts-licensed wholesaler.
  2. Continuity of agreements at succession
    • The successor’s rights and obligations are governed by the existing wholesaler-supplier agreement in place at the time of succession.
    • An agreement includes any ongoing commercial relationship (definite or indefinite duration, oral or written) or any arrangement granting the wholesaler the right to offer and sell the branded items in the Commonwealth.
  3. Attribution of sales for “six months” test
    • All sales of a branded item to a licensed wholesaler made prior to succession are attributed to the successor supplier when determining whether six months of regular sales exist under section 25E.
  4. Binding protections of section 25E
    • The prohibitions in section 25E (not refusing to sell a branded item to a wholesaler) apply to the successor supplier as well.
  5. Remedial construction
    • The new section should be liberally construed to fulfill the remedial protections of section 25E.

Who is affected

  • Wholesalers licensed in Massachusetts that purchase branded items from suppliers.
  • Brand-name item suppliers and successor suppliers who acquire the rights or obligations to sell to those wholesalers.
  • Consumers and market participants who rely on continued access to brand-name items through licensed wholesalers (via 25E protections).

Procedural and timeline aspects

  • The bill is integrated into Chapter 138 by inserting a new section after 25E 3/4.
  • Legislative actions recorded: Senate concurred on 2025-02-27; referred to the Senate-consumer protection committee (same date) as part of the ongoing 2025-2026 session (194th General Court).

Potential implications and considerations

  • Clarifies who bears responsibilities when ownership or control of brand-name item sales transfers.
  • Strengthens continuity of supply to wholesalers by preserving pre-existing agreements and the “six months” sales test under 25E.
  • Reduces uncertainty about the applicability of 25E protections to successor entities, potentially affecting negotiating dynamics in supplier-wholesaler relationships.

Notes

  • This summary reflects the text and status available as of the February 27, 2025 legislative actions. For latest status or amendments, consult the Massachusetts General Court bill records.

Compiled from official sources — confirm details with the bill’s official record.

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