The clock seemed to expire last week on Massachusetts craft brewers’ hopes of finally achieving franchise law reform.
After finally reaching a compromise with wholesalers after a decade of contentious negotiations, the measure (S. 2841) unanimously passed the Senate but couldn’t get out of the House Ways and Means Committee before the expiration of the legislative session last Friday.
However, Massachusetts lawmakers agreed to extend the session beyond Friday’s deadline, giving craft brewery owners and wholesalers some hope of finally ending the franchise law reform debate. Massachusetts legislative leaders have said their priorities include police reform, economic development, health care, climate change and the state budget.
The question remains if resolving the long-standing issues between craft breweries and wholesalers will become a priority in the House.
Massachusetts Brewers Guild’s president Sam Hendler, who is one of the founders of Jack’s Abby and Springdale Beer Company in Framingham, told Brewbound that the extension “took some of the pressure off to get it done immediately.”
There remain several winding steps before franchise law reform could possibly land on Gov. Charlie Baker’s desk. The bill would still need to be recommended out of the House Ways and Means Committee before reaching the full House for a vote. And then, if there are changes, the bill would need to go to a conference committee to reconcile the changes with the Senate.
Hendler told Brewbound that no changes are anticipated though.
“So we are still alive, still very hopeful it will get passed, and working hard to make sure it does,” he said.
In late July, the Massachusetts Brewers Guild and the Beer Distributors of Massachusetts announced an agreement to break the decade-long gridlock and reform the state’s franchise laws.
Under the deal, craft breweries that produce fewer than 250,000 barrels (3,445,000 cases) of beer over a 12-month period would be allowed to terminate their wholesaler relationship at any time by giving 30 days’ notice and paying “fair market value” for their brand rights. The legislation would benefit around 200 Massachusetts craft breweries, with the Boston Beer Company and Craft Brew Alliance-owned Cisco Brewers being the notable exceptions.
Massachusetts’ existing franchise laws lock breweries into contracts with their wholesalers after six months of working together, unless the brewery can show cause for termination.
Georgia to Allow Alcoholic Beverage Deliveries
In other legislative news today, Georgia Gov. Brian Kemp has signed legislation to permit some retailers to begin home deliveries of beer, wine and spirits, according to the Atlanta Journal-Constitution.
Actual deliveries are still months away, as the state’s Department of Revenue is still outlining regulations for home deliveries, the outlet reported. The law will require ID checks upon arrival before a delivery can be completed. And municipalities will be able to opt-out of offering home delivery of alcoholic beverages, so there are still many details to iron out.