Now in conference committee after passing the House in amended form, Senate Bill 422 modifies the procedures that must be in place for a brewer to terminate a distributor agreement with any beer distributor to include requiring the brewer to establish good cause for such termination. The measure also requires the arbitration panel to order that 100% of arbitration costs be paid by the smaller brewer if the panel determines that the small brewer’s payment upon termination was not a good faith estimate of the fair market value. The measure also exempts brewers that produce less than twenty-five thousand barrels of beer annually from the termination provisions.
Pete Johnson serves as the State & Regulatory Affairs Manager for the Brewers Association (BA). He joined the BA at its inception in 2005, having previously worked as Programs Director for the Brewers Association of America. Before coming to the small brewing industry in 2001, Pete worked for 14 years with both state and federal elected officials in Pennsylvania and Washington, D.C.See Pete Johnson's Articles