BILL NUMBER: SB 1957	CHAPTERED  09/30/00

	CHAPTER   1083
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 30, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	PASSED THE ASSEMBLY   AUGUST 25, 2000
	AMENDED IN ASSEMBLY   AUGUST 18, 2000

INTRODUCED BY   Senator Burton

                        FEBRUARY 24, 2000

   An act to add Sections 25000.7 and 25000.9 to the Business and
Professions Code, relating to alcoholic beverages.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1957, Burton.  Alcoholic beverages.
   The Alcoholic Beverage Control Act licenses and regulates beer
manufacturers and wholesalers.
   This bill would provide that no sale or distribution agreement
between a beer manufacturer and beer wholesaler shall be terminated
solely for a beer wholesaler's failure to meet a sales goal or quota
that is not commercially reasonable under the prevailing market
conditions.
   This bill also would provide that a beer manufacturer who
unreasonably withholds consent or unreasonably denies approval of a
sale, transfer, or assignment of any ownership interest in a beer
wholesaler's business with respect to that manufacturer's brand or
brands, shall be liable in damages to the beer wholesaler, as
specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25000.7 is added to the Business and
Professions Code, to read:
   25000.7.  (a) Notwithstanding the provisions of any agreement for
the sale or distribution of beer between a beer manufacturer and beer
wholesaler, no sale or distribution agreement shall be terminated
solely for a beer wholesaler's failure to meet a sales goal or quota
that is not commercially reasonable under the prevailing market
conditions.
   (b) For purposes of this section, "beer manufacturer" includes any
holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.
  SEC. 2.  Section 25000.9 is added to the Business and Professions
Code, to read:
   25000.9.  (a) Any beer manufacturer who unreasonably withholds
consent or unreasonably denies approval of a sale, transfer, or
assignment of any ownership interest in a beer wholesaler's business
with respect to that manufacturer's brand or brands, shall be liable
in damages to the beer wholesaler.  Recoverable damages under this
section shall not exceed the compensatory damages sustained by the
wholesaler and the wholesaler's costs of suit.  The fair market value
of the beer wholesaler's business shall include, but is not limited
to, its goodwill, if any.
   (b) If a beer wholesaler has been paid a consideration by a
successor wholesaler for the sale, transfer, or assignment of the
beer wholesaler's interest in the sale or distribution of the
affected brand or brands, the beer manufacturer shall be liable only
for compensatory damages in an amount reflecting the difference in
the amount already paid to the beer wholesaler, and the fair market
value of the beer wholesaler's business with respect to the affected
brand or brands.
   (c) For purposes of this section, "beer manufacturer" includes any
holder of a beer manufacturer's license, any holder of an
out-of-state beer manufacturer's certificate, or any holder of a beer
and wine importer's general license.