HB 2803 Oklahoma House · 2026 Regular Session

Alcoholic beverages; termination of distribution agreements; requirements; arbitration; inventory; effective date.

HB 2803 establishes clear rules for terminating beer distributor agreements in Oklahoma. It requires brewers to provide 60 days to cure most issues before termination, with specific immediate termination grounds like non-payment, bankruptcy, license revocation, or felony convictions. Distributors terminated under these rules get 120 days to sell their brand rights, and the new distributor must pay fair market value for lost rights plus cover remaining beer inventory at "laid in cost" (actual purchase price). This bill directly affects brewers and beer distributors by standardizing termination procedures and protecting distributors from arbitrary ending of agreements.
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
May 2025
House Passage
May 2025
Senate Passage
May 2025
Signed into Law
May 2025
Introduced Feb 3, 2025 Signed May 27, 2025
Maddy AI version diff · 7 comparisons

What changed between versions

Floor (House) Floor (Senate) · 2 edits
MINOR
The bill was amended to change the cure period for distributor noncompliance from 90 days to 60 days. Additionally, the Senate version added a specific provision regarding fraudulent conduct by employees, clarifying that a brewer can terminate an agreement if an employee commits fraud that the distributor should have known about, even if the owner or senior management was unaware.
Scope change
The scope of the bill remains focused on regulating the termination of beer distribution agreements, but the specific timelines for resolving disputes were shortened, and the definition of grounds for immediate termination was expanded to include specific scenarios of employee fraud.
TIMELINE

The time allowed for a distributor to fix noncompliance issues was reduced from 90 days to 60 days.

REQUIREMENT

New language was added to allow immediate termination if a distributor employee commits fraudulent conduct that the distributor should reasonably have known about, even if the owner or senior management was unaware.

Floor votes · Senate May 7, 2025 · House Mar 11, 2025

How they voted

470
Passed · 2 other
Total votes 49
May 7, 2025
D Democratic9
9 Yea
100% Yea
R Republican40
38 Yea 2
95% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
28
Key actions
9
Committee
7
May 15, 2025
Committee
Referred for enrollment
lower
May 15, 2025
Lower · Passed
Fourth Reading, Measure passed: Ayes: 79 Nays: 2
lower
May 15, 2025
Lower · Passed
SA's read, adopted
lower
May 8, 2025
Upper · Passed
Engrossed to House
upper
May 7, 2025
Committee
Referred for engrossment
upper
May 7, 2025
Upper · Passed
Measure passed: Ayes: 45 Nays: 0
upper
Apr 24, 2025
Upper · Passed
Reported Do Pass, amended by committee substitute Business and Insurance committee; CR filed
upper
Mar 12, 2025
Introduced
First Reading
upper
Mar 12, 2025
Lower · Passed
Engrossed, signed, to Senate
lower
Mar 11, 2025
Committee
Referred for engrossment
lower
Mar 11, 2025
Lower · Passed
Third Reading, Measure passed: Ayes: 87 Nays: 0
lower
Feb 17, 2025
Lower · Passed
CR; Do Pass, amended by committee substitute Health and Human Services Oversight Committee
lower
Feb 5, 2025
Lower · Passed
Policy recommendation to the Health and Human Services Oversight committee; Do Pass Alcohol, Tobacco and Controlled Substances
lower
Feb 4, 2025
Committee
Referred to Alcohol, Tobacco and Controlled Substances
lower
Feb 3, 2025
Introduced
First Reading
lower
2 primary · 0 co-sponsors

Sponsors