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HD 3613

An Act relative to termination of sales to wholesalers by suppliers of alcoholic beverages

194th Legislature (2025-2026) Introduced by Mike Moran

HD 3613 restricts alcohol suppliers' ability to terminate wholesale distribution agreements, likely requiring cause, notice, or compensation to protect distributor businesses from arbitrary termination.

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WeVote Research Nonpartisan
Bill Summary · HD 3613

Legislative bill overview

HD 3613 modifies Massachusetts law governing the relationship between alcoholic beverage suppliers and wholesalers, specifically addressing the conditions under which suppliers can terminate sales agreements with wholesalers. The bill establishes new protections or procedures for wholesalers facing termination by their suppliers, likely requiring notice periods, cause requirements, or compensation mechanisms that don't currently exist.

Why is this important

Alcoholic beverage distribution is a significant economic sector in Massachusetts, and termination rights directly affect the viability of wholesale businesses and their employees. The bill addresses power imbalances in supplier-wholesaler relationships, where large suppliers can currently terminate agreements with relative ease, potentially disrupting established distribution networks and livelihoods. This touches on both consumer access to products and fair business practices in a heavily regulated industry.

Potential points of contention

  • Supplier flexibility vs. wholesaler protection: Suppliers may argue that restrictions on termination rights limit their ability to adapt to market changes, consolidate operations, or remove underperforming distributors; wholesalers argue they need stability to make investments and maintain routes.
  • Interstate commerce implications: Different state regulations on supplier-wholesaler relationships can create competitive imbalances and complicate national distribution strategies for large beverage companies.
  • Definition of "cause": Disagreement over what constitutes valid termination grounds (performance metrics, financial thresholds, violations) could make the law difficult to enforce fairly.

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

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