An Act amending successor supplier laws

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

H.435 requires successor alcohol suppliers to honor preexisting wholesaler contracts and sales history, binding them to 25E protections and preserving access to brand-name items.

Accompanied a new draft, see H4281

Main purpose

This bill (House No. 435 / House Docket No. 3414) amends Massachusetts alcohol distribution law (Chapter 138) to clarify how the rights and obligations of a “supplier” transfer when that supplier is succeeded by another party. Its intent is to ensure that a successor supplier who acquires the right or obligation to sell brand-name items to a licensed wholesaler takes those commercial relationships subject to existing agreements and statutory protections.

Key provisions

Creates a new Section 25E 7/8 in Chapter 138 of the General Laws.

Defines “successor supplier” as any person who acquires, directly or indirectly, the right or obligation to sell a brand-name item to a wholesaler licensed in the Commonwealth.

Establishes that a successor supplier acquires such rights/obligations subject to the agreement between the wholesaler and the original supplier that existed at the time of succession.

Clarifies that an “agreement with a licensed wholesaler” includes commercial relationships (oral or written) of definite or indefinite duration or any relationship granting a wholesaler the right to offer and sell brand items within Massachusetts.

States that sales of a brand-name item to a licensed wholesaler made prior to succession are attributed to the successor supplier for purposes of determining whether “six months of regular sales” exist under section 25E.

Makes the prohibitions in section 25E (which bar suppliers from refusing to sell certain brand items to wholesalers) binding on successor suppliers.

Includes a directive that the section be liberally construed to effectuate the remedial protections in section 25E.

Who is affected

Licensed alcoholic beverage wholesalers operating in Massachusetts (primary beneficiaries of the protections).

Brand suppliers, distributors, manufacturers, and any successors/acquirers of supplier businesses.

Potentially retailers and consumers indirectly to the extent distribution relationships and product availability are affected.

Procedural status and timeline (selected)

Filed as House Docket No. 3414 / House No. 435 by Rep. John J. Mahoney on 01/17/2025.

Referred to the Committee on Consumer Protection and Professional Licensure (02/27/2025).

Hearing scheduled for 05/12/2025 (10:00 AM) in A-2.

Senate concurrence recorded (02/27/2025).

As of 07/23/2025 the bill was accompanied by a new draft (see H4281).

Potential impact and notes

The bill prevents a successor supplier from evading preexisting obligations to wholesalers by claiming a new identity; it attributes prior sales history to the successor for statutory tests (e.g., the six-month sales threshold in section 25E).

Effect is regulatory/contractual rather than fiscal; no fiscal note was provided in the docket excerpt.

The text emphasizes remedial construction, signaling a policy priority to protect wholesalers’ distribution rights when supplier ownership or rights change hands.

Note: The package of documents reviewed also contained unrelated legislative text from a different jurisdiction (Idaho) sharing the same bill number; this summary focuses exclusively on the Massachusetts “successor supplier” proposal.

Bill