SB 688 Summary

• Amends 37 O.S. 2011, Section 163.18B to require low-point beer manufacturers to enter agreements with licensed wholesalers designating exclusive sales territories and brand assignments, with brand extensions automatically assigned to the original wholesaler's territory.

• Modifies Section 163.18E to lower the production threshold triggering regulatory requirements from 300,000 gallons to 10,000-25,000 barrels per calendar year, and requires manufacturers to establish good cause with 60-day cure periods before terminating wholesaler agreements.

• Permits immediate termination of wholesaler agreements for specified causes including payment failure, bankruptcy, license revocation, felony conviction, fraudulent conduct, and unauthorized territory sales.

• Establishes compensation procedures when successor manufacturers transfer low-point beer brands, including mandatory good-faith negotiation within 30 days and binding arbitration before the American Arbitration Association if parties cannot agree on fair market value.

• Prohibits manufacturers from charging or accepting money, property, gratuities, discounts, rebates, free goods, allowances, or other inducements from wholesalers in exchange for distribution sales agreements; effective November 1, 2015.