AB-344
Consumer Protection

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

Engrossed
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Expands beer distribution regulations to include both licensed and unlicensed successor manufacturers.
  • Requires successor manufacturers to negotiate fair compensation with existing wholesalers when canceling rights.
  • Mandates arbitration if parties cannot agree on distribution rights compensation within 30 days.
  • Establishes a 180-day timeline for completing arbitration proceedings in distribution rights disputes.

Summary

Assembly Member Valencia's legislation modifies California's beer distribution regulations by expanding the definition of successor beer manufacturers to include both licensed and unlicensed entities that acquire rights to manufacture, import, or distribute beer products. The amended law requires these successor manufacturers to follow specific procedures when canceling existing wholesaler distribution rights.

The bill establishes a structured process for determining fair market compensation when distribution rights change hands. Successor manufacturers must formally notify existing wholesalers of cancellation plans and engage in good-faith negotiations regarding compensation. If parties cannot reach agreement within 30 days, the law mandates arbitration through qualified private providers. During this transition period, existing wholesalers must maintain their current distribution levels until compensation is resolved.

The arbitration framework includes specific timelines for document exchange, expert testimony, and final decisions. Arbitrators must render monetary-only awards within 15 days of proceedings, which must conclude within 180 days of initiation. Either party may appeal arbitration decisions to superior court within 10 business days, limited to review of factual or legal errors. The law preserves the option for parties to reach voluntary settlements outside the prescribed arbitration process.

Key Dates

Next Step
Referred to the Senate Standing Committee on Appropriations
Next Step
Senate Committee
Referred to the Senate Standing Committee on Appropriations
Hearing scheduled for , 1021 O Street, Room 2200
Senate Governmental Organization Hearing
Senate Committee
Senate Governmental Organization Hearing
Do pass, but first be re-referred to the Committee on [Appropriations]
Vote on Assembly Floor
Assembly Floor
Vote on Assembly Floor
AB 344 Valencia Assembly Third Reading
Assembly Appropriations Hearing
Assembly Committee
Assembly Appropriations Hearing
Do pass
Assembly Governmental Organization Hearing
Assembly Committee
Assembly Governmental Organization Hearing
Do pass and be re-referred to the Committee on [Appropriations]
Introduced
Assembly Floor
Introduced
Read first time. To print.

Contacts

Profile
Anna CaballeroD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Megan DahleR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Kelly SeyartoR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Avelino ValenciaD
Assemblymember
Bill Author
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Anna CaballeroD
Senator
Committee Member
Profile
Tim GraysonD
Senator
Committee Member
Profile
Megan DahleR
Senator
Committee Member
Profile
Kelly SeyartoR
Senator
Committee Member
Profile
Avelino ValenciaD
Assemblymember
Bill Author
Profile
Aisha WahabD
Senator
Committee Member
Profile
Christopher CabaldonD
Senator
Committee Member
Profile
Laura RichardsonD
Senator
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Avelino Valencia
Avelino ValenciaD
California State Assembly Member
40% progression
Bill has passed all readings in its first house and is ready to move to the other house (5/19/2025)

Latest Voting History

June 10, 2025
PASS
Senate Committee
Senate Governmental Organization Hearing
AyesNoesNVRTotalResult
140115PASS

Key Takeaways

  • Expands beer distribution regulations to include both licensed and unlicensed successor manufacturers.
  • Requires successor manufacturers to negotiate fair compensation with existing wholesalers when canceling rights.
  • Mandates arbitration if parties cannot agree on distribution rights compensation within 30 days.
  • Establishes a 180-day timeline for completing arbitration proceedings in distribution rights disputes.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Avelino Valencia
Avelino ValenciaD
California State Assembly Member

Summary

Assembly Member Valencia's legislation modifies California's beer distribution regulations by expanding the definition of successor beer manufacturers to include both licensed and unlicensed entities that acquire rights to manufacture, import, or distribute beer products. The amended law requires these successor manufacturers to follow specific procedures when canceling existing wholesaler distribution rights.

The bill establishes a structured process for determining fair market compensation when distribution rights change hands. Successor manufacturers must formally notify existing wholesalers of cancellation plans and engage in good-faith negotiations regarding compensation. If parties cannot reach agreement within 30 days, the law mandates arbitration through qualified private providers. During this transition period, existing wholesalers must maintain their current distribution levels until compensation is resolved.

The arbitration framework includes specific timelines for document exchange, expert testimony, and final decisions. Arbitrators must render monetary-only awards within 15 days of proceedings, which must conclude within 180 days of initiation. Either party may appeal arbitration decisions to superior court within 10 business days, limited to review of factual or legal errors. The law preserves the option for parties to reach voluntary settlements outside the prescribed arbitration process.

40% progression
Bill has passed all readings in its first house and is ready to move to the other house (5/19/2025)

Key Dates

Next Step
Referred to the Senate Standing Committee on Appropriations
Next Step
Senate Committee
Referred to the Senate Standing Committee on Appropriations
Hearing scheduled for , 1021 O Street, Room 2200
Senate Governmental Organization Hearing
Senate Committee
Senate Governmental Organization Hearing
Do pass, but first be re-referred to the Committee on [Appropriations]
Vote on Assembly Floor
Assembly Floor
Vote on Assembly Floor
AB 344 Valencia Assembly Third Reading
Assembly Appropriations Hearing
Assembly Committee
Assembly Appropriations Hearing
Do pass
Assembly Governmental Organization Hearing
Assembly Committee
Assembly Governmental Organization Hearing
Do pass and be re-referred to the Committee on [Appropriations]
Introduced
Assembly Floor
Introduced
Read first time. To print.

Latest Voting History

June 10, 2025
PASS
Senate Committee
Senate Governmental Organization Hearing
AyesNoesNVRTotalResult
140115PASS

Contacts

Profile
Anna CaballeroD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Megan DahleR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Kelly SeyartoR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Avelino ValenciaD
Assemblymember
Bill Author
Not Contacted
Not Contacted
0 of 8 row(s) selected.
Page 1 of 2
Select All Legislators
Profile
Anna CaballeroD
Senator
Committee Member
Profile
Tim GraysonD
Senator
Committee Member
Profile
Megan DahleR
Senator
Committee Member
Profile
Kelly SeyartoR
Senator
Committee Member
Profile
Avelino ValenciaD
Assemblymember
Bill Author
Profile
Aisha WahabD
Senator
Committee Member
Profile
Christopher CabaldonD
Senator
Committee Member
Profile
Laura RichardsonD
Senator
Committee Member