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Bill

HB 406

RELATING TO HEALTH.

2024 Regular Session Introduced by Della Belatti

HB 406 prohibits beer wholesalers in Alabama from providing or financing draft line cleaning services for retailers, impacting operational costs and service quality.

Received notice of discharge of all conferees (Hse. Com. No. 457).
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Bill Summary · HB 406

Summary of HB 406: Prohibition of Draft Line Cleaning Services by Beer Wholesalers

Bill Overview

  • Bill Number: HB 406
  • Title: Beer wholesalers; prohibit from providing draft line cleaning services to beer retailers
  • Introduced: March 06, 2025
  • Status: Read for the first time and referred to the House Committee on Economic Development and Tourism
  • Classification: Bill
  • Subject: Alcoholic Beverages & Tobacco

Purpose and Intent

The primary intent of HB 406 is to amend existing laws governing the relationship between beer wholesalers and retailers in Alabama. Specifically, the bill seeks to prohibit beer wholesalers from providing or financing draft line cleaning services for retailers. This legislative change aims to clarify the responsibilities and limitations of wholesalers in their interactions with retailers.

Key Provisions

  • Prohibition on Services: The bill explicitly prohibits beer wholesalers from:

    • Providing draft line cleaning services to licensed retailers.
    • Paying for such cleaning services on behalf of retailers.

  • Technical Revisions: In addition to the prohibition, the bill includes nonsubstantive technical revisions to update the language of the existing code to current standards.

  • Amendment to Code: The bill amends Section 28-9-5 of the Code of Alabama 1975, which outlines the responsibilities and restrictions placed on wholesalers.

Impact

  • Affected Parties:

    • Beer Wholesalers: Will no longer be able to offer cleaning services, which may impact their business relationships with retailers.
    • Beer Retailers: Will need to independently manage draft line cleaning, potentially increasing their operational costs.

  • Industry Implications: This change may lead to a shift in how retailers maintain their draft systems, possibly affecting the quality of service provided to consumers.

Procedural Aspects

  • Effective Date: If passed, the provisions of this bill will become effective on October 1, 2025.
  • Legislative Process: The bill is currently pending committee action in the House of Origin (Economic Development and Tourism) following its first reading.

Conclusion

HB 406 represents a significant change in the regulatory framework governing the relationship between beer wholesalers and retailers in Alabama. By prohibiting wholesalers from providing draft line cleaning services, the bill aims to delineate the responsibilities of each party, potentially impacting operational practices within the beer distribution industry.

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

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