This bill amends Section 3-111 of the Oklahoma Alcoholic Beverage Control Act, focusing on the termination of distribution agreements between brewers and distributors. Key changes include a requirement for brewers to provide written notification detailing specific reasons for termination and an extension of the cure period for distributors from 60 to 90 days. Additionally, brewers are mandated to purchase any remaining inventory from the terminated distributor at laid-in cost, and the bill establishes qualifications for arbitrators involved in disputes regarding termination. It also clarifies circumstances under which a brewer can immediately terminate a distributor agreement, such as failure to pay or legal issues affecting the distributor, while emphasizing the rights of small brewers and outlining the process for determining fair market value in termination cases.

Moreover, the bill introduces new regulations regarding the relationships between brewers, beer distributors, and cider manufacturers, prohibiting brewers from requiring distributors to waive compliance with any provisions of the Act. It also forbids material inducements in exchange for entering into distributor agreements, with exceptions for brewers holding distributor licenses or small brewers transitioning from self-distribution. The same rights and obligations are extended to cider manufacturers and their distributors, ensuring consistent treatment across all parties involved in the distribution of alcoholic beverages. The provisions of this bill will take effect on November 1, 2025.