SB 2027 Summary

• Creates new Section 525A of Title 37 (Oklahoma Statutes) establishing rules for beer distribution sales agreements between brewers and nonresident sellers.

• Exempts brewers producing less than 300,000 gallons of beer annually from these distribution agreement requirements.

• Requires brewers to establish "good cause" and provide 60-day cure periods before terminating distribution agreements, except in cases of insolvency, license suspension, felony conviction, or fraud.

• Allows brewers to immediately terminate agreements without cause by providing 90 days' notice, provided the same notice is given to all other nonresident sellers in other states.

• Mandates that successor brewers acquiring beer brands must pay existing distributors fair market value for their distribution rights, with disputes resolved through binding arbitration if parties cannot reach agreement within 30 days.