Alcoholic beverages: beer price posting and marketing regulations: definitions.

Assembly Member Valencia's legislation expands California's beer distribution regulations by modifying who qualifies as a "successor beer manufacturer" under state law. The amended definition now encompasses any entity, licensed or unlicensed, that acquires rights to manufacture, import, or distribute beer products - broadening oversight beyond traditional beer manufacturers.

The bill outlines specific procedures when these successor entities cancel existing beer wholesaler distribution rights. A successor must notify affected wholesalers by certified mail and negotiate fair market compensation for terminated distribution rights. Wholesalers maintain distribution responsibilities until receiving agreed-upon payment or an arbitration award. If parties cannot reach agreement within 30 days, either may initiate arbitration through qualified private providers in California. The arbitration process includes mandatory document exchanges, expert testimony periods, and must conclude within 180 days.

The legislation establishes precise timelines for each phase - from initial negotiations through potential appeals of arbitration decisions to superior court. Wholesalers who do not receive compensation within 10 business days of settlement or arbitration retain their distribution rights but forfeit the awarded payment. While expanding the pool of regulated entities, the bill preserves existing enforcement mechanisms under the Alcoholic Beverage Control Act, with violations remaining misdemeanors under current law.