Bill > HB2803

This bill amends Oklahoma's alcoholic beverage distribution laws to modify the requirements and procedures for terminating distribution agreements between brewers and beer distributors. The legislation establishes more detailed guidelines for how brewers can terminate distributor agreements, including specific notice requirements, cure periods, and circumstances that would allow immediate termination. Key provisions include requiring brewers to provide written, specific notifications about noncompliance, allowing distributors a chance to cure issues, and establishing arbitration procedures for disputes over fair market value of distribution rights. The bill also introduces new requirements for succession scenarios, such as when a brewer transfers brands to a new owner, and mandates that a new distributor must purchase remaining inventory at the original laid-in cost in certain termination scenarios. Additionally, the bill sets qualifications for arbitrators, including requiring them to have at least 15 years of experience in franchise law, and allows for appeals of arbitration decisions on questions of legal error. The legislation applies to both brewers and cider manufacturers and is set to become effective on November 1, 2025, providing comprehensive protections and guidelines for the termination of alcoholic beverage distribution agreements in Oklahoma.

Business and Industry, Health and Social Services

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb2803&Session=2600