OklahomaSB 377Oklahoma 2026 Regular SessionSenate

Equipment contracts; modifying definitions; modifying certain prohibited actions; modifying certain consent requirements. Effective date.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

More protection for equipment dealership changes

Beginning November 1, 2025, suppliers cannot end equipment dealer agreements over executive changes unless they show harm to product representation. A controlling ownership transfer is grounds for termination only when supplier consent is required and the supplier can legally refuse. Suppliers with contract approval rights can deny business sales or ownership transfers only for good cause: harm to product representation. The supplier must prove its denial meets these requirements. Transfer protections generally do not apply to single-line dealers.

Narrower termination protections for equipment dealers

Beginning November 1, 2025, substantially changing a dealer’s competitive circumstances alone does not count as termination under three equipment-dealer rules. This exclusion applies to 15 O.S. §§ 245A.5, 246, and 247. It narrows which supplier actions fall under termination protections in those rules.

Equipment dealers gain choice with limits

Beginning November 1, 2025, suppliers generally cannot block dealers from joining, investing in, or carrying out competing-line agreements, or using separate facilities. Suppliers can restrict major competing lines at facilities authorized to sell their new equipment only when both tests are met. Their equipment must account for 80% of the dealer’s new equipment by net cost across all retail facilities. Annual sales of equipment acquired from that supplier must exceed $40 million in each of the previous five calendar years. The dollar threshold adjusts annually using the U.S. Bureau of Labor Statistics construction machinery manufacturing Producer Price Index, series PCU333120333120; a successor must measure substantially similar information.

Sponsors & Cosponsors

Sponsor

Avery Frix
Republican • Senate

Cosponsors

Chris Banning
Republican • House
Steve Bashore
Republican • House
Scott Fetgatter
Republican • House

Roll Call Votes

All Roll Calls

Yes: 165 • No: 8

House vote • 4/23/2025

THIRD READING

Yes: 76 • No: 8

House vote • 4/17/2025

DO PASS

Yes: 16 • No: 0

House vote • 4/8/2025

DO PASS

Yes: 7 • No: 0

Senate vote • 3/24/2025

THIRD READING

Yes: 46 • No: 0

Senate vote • 2/20/2025

Committee vote: CORRECTED Business & Insurance

Yes: 10 • No: 0