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Assembly committee advances bill to protect beer wholesalers when breweries are sold
Summary
The Assembly Governmental Organization Committee voted to send AB 344 (Valencia) to Appropriations after supporters said the bill closes a court-created loophole that could allow buyers of breweries to avoid compensating existing wholesalers for distribution rights.
The California State Assembly Governmental Organization Committee voted to send Assembly Bill 344 by Assemblymember Valencia to the Committee on Appropriations, the secretary announced after a roll call.
AB 344 updates and clarifies the definition of “successor beer manufacturer” so that wholesalers retain fair-market protections when a brewery they distribute for is sold, the bill’s author said. The bill’s supporters told the committee that a recent court ruling narrowed the statute, creating a loophole that could let non-brewing buyers avoid paying wholesalers for distribution rights.
Kevin Lucky, executive director of the California…
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