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 rectify the issues. It specifies conditions under which brewers can immediately terminate agreements, such as failure to pay, bankruptcy, or felony convictions. Additionally, the bill mandates that a new distributor must purchase any remaining inventory from the old distributor at laid-in cost in certain situations and updates the qualifications for arbitrators involved in disputes.

The legislation also extends similar provisions to small brewers, requiring them to purchase remaining inventory at laid-in cost when terminating agreements under specific conditions. It introduces arbitration for disputes over the fair market value of distribution rights, ensuring qualified arbitrators are used and costs are shared. The bill emphasizes the rights of both brewers and distributors in cases of wrongful termination, allowing for recovery of damages, including the fair market value of distribution rights and remaining inventory. Furthermore, it clarifies that cider manufacturers distributing through beer distributors will have the same rights and obligations as brewers, ensuring consistent treatment within the distribution framework. The act is set to take effect on November 1, 2025.