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

Assembly Member Valencia's proposal to modify California's beer distribution regulations expands oversight of successor beer manufacturers while establishing detailed procedures for distribution rights transfers. The legislation redefines successor beer manufacturers to include both licensed and unlicensed entities that acquire rights to manufacture, import, or distribute beer products, provided they meet specific criteria related to production facilities, contract brewing authority, or control over sales and distribution.

The bill outlines a structured process when successor manufacturers cancel existing wholesaler distribution rights. Manufacturers must notify affected wholesalers via certified mail and designate new distributors, who then must negotiate fair market compensation for the terminated rights. If parties cannot reach agreement within 30 days, the bill mandates arbitration through qualified private services providers. During this process, existing wholesalers must maintain their current distribution levels until receiving agreed-upon compensation or an arbitration award.

The arbitration framework includes specific timelines for document exchange, expert testimony, and decision rendering, with proceedings required to conclude within 180 days of initiation. Arbitrators' decisions remain subject to limited judicial review for factual or legal errors. The bill's findings note that these mandatory arbitration provisions stem from the state's interest in maintaining orderly markets for beer distribution, while acknowledging the equal positioning and sophistication of the affected commercial parties.