AB 1541

Bill Subjects

Abstract

Existing law, the Alcoholic Beverage Control Act, licenses and regulates beer manufacturers and wholesalers, including the regulation of distribution rights between beer manufacturers and wholesalers. A violation of the Alcoholic Beverage Control Act is a misdemeanor, unless another penalty or punishment is specified. This bill would provide that a beer manufacturer shall not cancel, terminate, reduce, not renew, or cause any of the same, an agreement with a beer wholesaler for the distribution of beer and malt beverage products, unless the beer manufacturer has complied with specified provisions. The provisions would require the beer manufacturer to satisfy unspecified notice and opportunity to cure requirements and notice of termination requirements, with specified exceptions, as provided. The bill would place the burden of proof on the beer manufacturer to demonstrate that it has acted in good faith, that it has or had good cause to cancel, terminate, reduce, or not renew an agreement, or to cause any of the same, and that it complied with notice requirements. The bill would apply its provisions to any agreement that is entered into, amended, extended, modified, ratified, or renewed on or after an unspecified date. The bill, by including provisions that would be subject to those existing criminal sanctions, would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.