SB 529 - This act creates the Beer Industry Fair Dealing Law, which regulates agreements between wholesalers and brewers of beer. No brewer shall amend or cancel agreements with wholesalers except after notice and opportunity for hearing and with good cause. Notice must be given 90 days prior to any cancellation, giving the wholesaler opportunity to cure any defects. A brewer may terminate an agreement without notice if the wholesaler becomes bankrupt, has its license suspended for more than 31 days, or is convicted of a felony.

Brewers shall assign brand extensions to the wholesaler with the exclusive sales territory for the brand, unless assigned prior to the effective date of this act.

No brewer shall unreasonably delay its approval of any sale or transfer of a wholesaler's assets or voting stock, whenever the person to be substituted meets reasonable standards imposed upon wholesalers of that general class. Upon the death of a partner, no brewer shall deny any surviving partner the right to become a successor in interest, provided that partner is capable of carrying on the business of the partnership. Any sale or transfer by a surviving spouse or adult child of a wholesaler shall meet these requirements.

Any brewer who acts in violation of the provisions of this act shall pay the fair market value of the wholesaler's business with relation to the affected brands. In case a brewer and wholesalers cannot agree on good cause for cancellation of an agreement, or on fair market value, the parties may submit the dispute to a neutral arbitrator. If the dispute is not subject to arbitration, the injured wholesaler may file a civil action in the county of its principal place of business.

No brewer shall set the prices for wholesalers. If a wholesalers exceeds the resale price increase recommended by a brewer, the brewer shall not raise its prices for sixty days. No brewer shall require a wholesaler to waive compliance with this act.

New owners continuing the business of the brewery shall comply with all agreements of predecessor brewers that are in effect on the date of purchase. No brewer or wholesaler shall restrict the right of free association for any lawful purpose. The act covers agreements in existence on the date of enactment and thereafter, including any revisions to existing contracts.

JOAN GUMMELS