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SENATE BILL 1957 (BURTON-2000)

CHAPTER 1083, STATUTES OF 2000, SB 1957

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As enacted in 2000, Senate Bill 1957 added only Business and Professions Code sections 25000.7 and 25000.9, relating to alcoholic beverages.  (See Exhibit #1c)  Senator John Burton introduced this bill on February 24, 2000 at the request of the California Beer and Beverage Distributors.  (See Exhibits #1a and #6)

 

Senate Bill 1957 was heard in the Senate and Assembly Committees on Governmental Organization where policy issues raised by the bill were considered.  (See Exhibit #3 and #8)  The fiscal ramifications were reviewed in the Senate and Assembly Committees on Appropriations.  (See Exhibit #2)  One amendment was made to the bill by the Assembly on August 18, 2000.  (See Exhibit #1b)  At this time the bill was gutted and the provisions of current Business and Professions Code sections 25000.7 and 25000.9 were added.  (Id.)  Subsequent to legislative approval, Governor Gray Davis signed Senate Bill 1957 on September 30, 2000, and it was recorded by the Secretary of State on that date as Chapter 1083 of the Statutes of 2000.  (See Exhibits #1c and #2)

 

The Office of Senate Floor Analyses Unfinished Business analysis of Senate Bill 1957 as last amended summarized the bill as follows:


Assembly Amendments rewrite the bill’s provisions and apply only to beer manufacturers.

 

Assembly amendments prevent beer manufacturers from terminating beer wholesalers solely because of the wholesaler’s failure to meet an unreasonable sales goal or quota, as specified, and requires beer manufacturers to pay compensation to a beer wholesaler for unreasonable denial of sale or transfer of brands.

(See Exhibit #10, page 1)

 

The Department of Alcoholic Beverage Control provided a brief summary of the arguments in support and opposition of Senate Bill 1957, stating:

 

A. Arguments in Support of the Bill:  The bill will restore balance to the relationship between beer manufacturers and wholesalers and protect the investment made by wholesalers in promoting brands from unreasonable termination or limitation on the sale of the business.

 

B.  Arguments in Opposition to the Bill:  The bill is an unreasonable interference with private, voluntary contracts.  If there is an imbalance in the relationship between wholesalers and small beer manufactures, the imbalance is on the side of the wholesalers, not the manufacturers.

(See Exhibit #12, documents PE-10 and PE-11)