SB 385 - This act adds new sections to Chapter 311, Liquor Control Law, including definitions. Brewers shall be prohibited from terminating or refusing to renew any agreement with a wholesaler for the purchase and distribution of beer unless the brewer provides written notice pursuant to certain procedures, acts in good faith and with good cause. The act provides several exemptions to the written notice provision. Brewers are prohibited from requiring certain contractual provisions, and are required to assign brand extensions to the same wholesaler that has the exclusive sales territory for underlying brand. Brewers shall be limited in their ability to control stock or ownership of wholesalers. The act contains penalties for wrongful termination of an agreement with wholesalers, and provides for a process to resolve disputes. Brewers shall not control the price at which wholesalers sell alcoholic beverages, and may not require changes in personnel of any wholesaler. The purchaser of a brewery is obligated to honor the terms of the predecessor brewer's pending agreements. Brewers or wholesalers shall not inhibit the right of free association.
JAMES KLAHR