Bill > AB344

This bill modifies the definition and regulations surrounding successor beer manufacturers in California's alcoholic beverage distribution system. The bill expands the definition of "successor beer manufacturer" to include any person, whether licensed or unlicensed, who acquires the rights to manufacture, import, or distribute a beer product. The legislation outlines a detailed process for when a successor beer manufacturer cancels an existing beer wholesaler's distribution rights, requiring the successor to notify the existing wholesaler, negotiate in good faith to determine the fair market value of the affected distribution rights, and if necessary, proceed to mandatory arbitration to resolve compensation disputes. The arbitration process is carefully structured, with specific requirements for document exchange, discovery, timeframes, and decision-making, and is designed to ensure an orderly and efficient resolution of distribution rights transfers. The bill also specifies that if compensation is not paid within 10 business days after settlement or arbitration, the existing beer wholesaler retains distribution rights. By expanding the scope of entities subject to these requirements, the bill creates a state-mandated local program, but no state reimbursement is required since the changes primarily relate to creating or modifying legal definitions and procedures.

Budget and Finance, Government Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB344