House Bill No. 2803 amends Section 3-111 of the Oklahoma Alcoholic Beverage Control Act, focusing on the termination of distribution agreements between brewers and distributors. The bill requires brewers to provide written notification to distributors regarding alleged noncompliance, allowing a sixty-day cure period for distributors to address these issues. It outlines specific circumstances under which a brewer can immediately terminate a distributor agreement, such as failure to pay, bankruptcy, or criminal convictions affecting the distributor's operations. Additionally, the bill mandates that a new distributor must purchase any remaining inventory from the terminated distributor at laid-in cost, ensuring fair compensation for terminated distributors.

The legislation also extends these provisions to small brewers, who must purchase remaining inventory at laid-in cost under certain conditions. It introduces qualifications for arbitrators in disputes over fair market value and allows for appeals of arbitration decisions in state or federal court. Furthermore, the bill clarifies that cider manufacturers distributing through beer distributors will have rights and obligations similar to those of brewers. The new provisions will apply to all agreements, renewals, extensions, amendments, or modifications related to distributor agreements and are set to take effect on November 1, 2025.