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CA AB1541
Bill
Status
4/29/2019
Primary Sponsor
Adam Gray
Click for details
AI Summary
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Prohibits beer manufacturers from canceling, terminating, reducing, or failing to renew agreements with beer wholesalers unless the manufacturer complies with specified notice, good faith, and good cause requirements.
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Requires beer manufacturers to provide written notice of alleged noncompliance, allow the wholesaler time to submit a corrective action plan, and grant additional time to cure the violation before termination.
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Places the burden of proof on the beer manufacturer to demonstrate it acted in good faith, had good cause for the action, and complied with all notice requirements.
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Allows expedited termination without full notice periods only in cases of wholesaler insolvency, felony convictions of owners, fraudulent conduct, repeated unauthorized sales outside territory, payment defaults, unauthorized assignment, or license revocation.
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Permits courts to grant injunctions and awards wholesalers compensation for damages resulting from manufacturer violations; prohibits waiver of the section's provisions as contrary to public policy.
Legislative Description
Alcoholic beverages: beer manufacturers and wholesalers: distribution.
Last Action
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on G.O.
7/11/2019