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Bill

S 203

Repeals the metropolitan commuter transportation mobility tax

2025 Regular Session Introduced by Monica Martinez and 2 co-sponsors

Adds new Section 25E7/8: a successor supplier is bound by the wholesaler's existing agreement, and prior sales are attributed to the successor for the six-month regular-sales test.

REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
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Bill Summary · S 203

Summary — S.203 (2025): An Act amending successor supplier laws

Main purpose

The bill adds a new subsection to Section 25E of Chapter 138 of the Massachusetts General Laws to make clear that the statutory protection prohibiting a supplier from refusing to sell a brand-name item to a licensed wholesaler also binds any successor supplier. In short, the bill is intended to preserve wholesalers’ commercial rights when a supplier’s business or rights are transferred to another party.

Key provisions

  • Adds new Section 25E 7/8 to Chapter 138, §25E.
  • Defines “successor supplier” broadly as any person who acquires, directly or indirectly, the right or obligation to sell a brand-name item to a licensed wholesaler in Massachusetts.
  • States that a successor supplier takes subject to the existing agreement between the wholesaler and the supplier at the time of succession.
  • Requires that all sales of a brand-name item made to a licensed wholesaler prior to succession be attributed to the successor supplier for the purpose of determining whether the wholesaler has six months of regular sales under Section 25E.
  • Defines “agreement with a licensed wholesaler” to include commercial relationships of definite or indefinite duration (oral or written) or any relationship that grants the wholesaler the right to offer and sell brand-name items in the state.
  • Directs that the new subsection be “liberally construed” to effectuate the remedial protections of Section 25E.

Who is affected

  • Licensed wholesalers in Massachusetts who distribute brand-name items regulated under Chapter 138 (the state’s alcoholic beverage/control statutes).
  • Suppliers and any successor entities (including purchasers, assignees, corporate acquirers, or other parties that acquire supplier rights or obligations).
  • Potentially parties involved in mergers, asset purchases, or reorganizations of supplier businesses.

Procedural status and timeline (as provided)

  • Introduced in the Senate: January 23, 2025.
  • Read twice and referred to committee(s) on January 23, 2025 (records list multiple committee referrals, including Consumer Protection and Professional Licensure; also shows other committee referrals that appear inconsistent).
  • Hearing scheduled (per record): May 12, 2025, 10:00 AM–1:00 PM in A‑2.
  • Status listed: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS.

Potential impact and considerations

  • Legal continuity: Prevents suppliers from avoiding obligations to wholesalers by transferring supply rights to another entity.
  • Mergers & acquisitions: Buyers of supplier assets or brands would inherit wholesalers’ existing rights and prior sales history for statutory tests (e.g., the six‑month regular sales threshold), which may affect transactional structuring and due diligence.
  • Commercial disputes: Could reduce disruption to wholesalers’ access to brand items after succession, but may also increase litigation over whether a party qualifies as a “successor supplier” or the attribution of prior sales.
  • Enforcement: Implementation and enforcement would rely on the agencies and courts interpreting the new subsection, particularly given the directive to construe it liberally.

Notes on presented metadata

The supplied packet contains inconsistencies: the bill text and petitioners (Sen. John J. Cronin; Sen. Michael O. Moore) indicate a Massachusetts State Senate bill amending Chapter 138, but other metadata (title referencing repeal of a commuter tax, sponsor names that match U.S. Senators, and some committee names) appear inconsistent or from different jurisdictions. The substantive summary above is based on the bill text adding Section 25E 7/8 to Chapter 138. If you want, I can (a) reconcile the metadata further, (b) produce an analysis of likely enforcement scenarios or drafting questions, or (c) redact a short one‑page explainer for affected wholesalers and suppliers.

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

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