Malt beverage franchise agreements.

This bill (SF 79) allows small malt beverage manufacturers (producing 25,000 barrels or less annually) to terminate distribution agreements with distributors without needing a specific reason. It requires manufacturers to pay distributors compensation equal to the franchise’s fair market value plus the cost of inventory held in warehouses or transit. Disputes over compensation are resolved through binding arbitration under specific rules, with costs shared equally unless a good-faith estimate was made. The law takes effect July 1, 2024, applying to new agreements and renewals of existing ones after that date.