HB 1967 Summary

• Amends Oklahoma law to require low-point beer manufacturers to enter into agreements with licensed wholesalers designating exclusive sales territories and authorized brands, and to authorize only one wholesaler per territory.

• Establishes that brand extensions of low-point beer must be assigned to the same wholesaler who holds the exclusive territory for the original brand.

• Lowers the production threshold for manufacturer compliance from 300,000 gallons to 10,000 barrels of low-point beer per calendar year.

• Permits manufacturers to terminate wholesaler agreements only for good cause with 60-day cure notice, except in specific circumstances allowing immediate termination (payment default, bankruptcy, license revocation, felony conviction, unauthorized ownership transfer, fraud, or territory violations).

• Requires successor manufacturers to compensate existing wholesalers for fair market value of their distribution rights, with disputes resolved through binding arbitration conducted under the Uniform Arbitration Act.

• Effective date: November 1, 2015.