Assembly Member Valencia's proposal to modify California's beer distribution regulations expands oversight of successor beer manufacturers while establishing new procedures for resolving distribution rights disputes. The legislation redefines "successor beer manufacturer" to encompass both licensed and unlicensed entities that acquire rights to manufacture, import, or distribute beer products.

The bill outlines specific criteria for qualifying as a successor beer manufacturer, including possession of manufacturing facilities, engagement in contract brewing with distribution control rights, or authority over product sales and intellectual property. When these entities cancel existing wholesaler distribution rights, they must follow prescribed notification and compensation procedures. The measure requires successor manufacturers to negotiate fair market value compensation with affected wholesalers and establishes mandatory arbitration if parties cannot reach agreement within 30 days.

Under the arbitration framework, proceedings must conclude within 180 days of notification, with decisions rendered within 15 days thereafter. The bill maintains existing requirements for wholesalers to continue distribution until compensation is paid, while establishing parameters for document exchange, expert testimony, and cost sharing between parties. Appeals of arbitration decisions must be filed within 10 business days, with superior courts reviewing awards for factual and legal errors.