Utah Senate advances beer industry distribution bill; sponsor says it protects retailers

SALT LAKE CITY — Senate Bill 73, a package of rules for beer distribution described by the sponsor as a three-tier protection for wholesalers and retailers, advanced in the Utah Senate on Jan. 29 and was placed on the third-reading calendar.

Senator Blackcomb, presenting SB 73, called it "the famous beer bill" and said the legislation establishes safeguards to protect retailers from undue pressure by brewers, including protections against forced advertising or compelled deliveries. "This helps establish the 3 tier system that is so important in the beer industry in the state of Utah," Blackcomb said, describing negotiated changes reached with brewers, wholesalers and retailers.

The bill includes franchise-like provisions to prevent wholesalers or brewers from exerting undue influence on retailers and incorporates amendments requested by retailers to prevent coercive practices. In floor questions, Sen. Taylor asked whether the bill prohibits contractual waiver of these protections; the sponsor said the bill does not explicitly state a waiver clause but that most contracts recently had been renegotiated to conform with the proposed law, and attorneys involved had offered differing views on retroactivity of past contracts.

After debate and a roll call, the Clerk reported SB 73 had 27 aye votes, no nay votes and two absences, and the bill will be sent to the third-reading calendar. The bill’s sponsor said the legislation does not seek to increase alcohol consumption but instead to set fair commercial rules in a sector with large out-of-state suppliers and in-state wholesalers and retailers.

If passed on final reading, the bill would create statutory protections governing relationships among brewers, wholesalers and retailers; the transcript does not specify effective dates or retroactivity provisions beyond the sponsor's floor remarks.