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

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.