Oklahoma’s Pro-Distributor Legislation Fails to Advance

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With House-Senate conference committee members unable to agree on a mutually acceptable bill, Senate Bill 688 has failed to advance. The bill sought to require low-point beer manufacturers and wholesalers who assign a brand extension to assign the extension to the licensed wholesaler which has exclusive sales territory for the brand. The measure would also have changed the calculation to determine if a manufacturer is exempt from the provisions relating to wholesaler and manufacturer agreements. Currently, manufacturers who produce less than 300,000 gallons (9,523 barrels) are exempt. The measure changed the amount to 10,000 barrels (315,000 gallons). The measure also provided that no manufacturer is to accept any inducement from a wholesaler in exchange for entering into a distribution sales agreement with a wholesaler.