HB671 Alabama 2013 Session

Updated Feb 27, 2026

Low Interest

Summary

Primary Sponsor: Rod Scott
Democrat
Session: Regular Session 2013
Title: Jefferson Co., alcoholic beverages, sale of wine, business relations between suppliers and wholesalers regulated, Jefferson County Wine Franchise Jobs Protection Act
Summary: HB671 creates the Jefferson County Wine Franchise Jobs Protection Act to regulate how wine suppliers and wholesalers operate in Jefferson County, requiring written exclusive-territory agreements and outlining transfers, remedies, and dispute resolution to protect local wine jobs.
What This Bill Does
The bill requires written agreements between wine suppliers and wholesalers that designate exclusive sales territories. It prohibits many supplier actions (like price fixing, coercion, unfair transfer interference, and withholding deliveries) and sets standards for transfers of a wholesaler’s business. It provides for compensation to wholesalers for diminished value if the supplier violates the act, allows voluntary arbitration, and permits civil actions for damages with specified venue. The act applies to both existing and future agreements, is cumulative, and operates only in Jefferson County.

Who It Affects
Wine wholesalers in Jefferson County, who gain formal exclusive territory agreements, defined transfer and manager standards, and remedies for damages or losses from supplier violations.
Wine suppliers licensed to sell in Alabama, who must provide written exclusive-territory agreements, follow prohibitions and transfer procedures, and may face damages, punitive damages, or injunctive relief for violations.

Key Provisions
Requires each supplier to provide written agreements with each Jefferson County wholesaler that include a designated exclusive sales territory for the supplier's wine brands.
Establishes prohibited actions by suppliers (e.g., coercion, price fixing, withholding deliveries, pressuring for specific arrangements, and interfering with transfers) and defines good faith and reasonable qualifications.
Sets transfer rules for wholesalers, including conditions for transfers to designated members, required notices, and supplier-consent requirements for transfers to non-designated transferees.
Provides for reasonable compensation to wholesalers for diminished value of the business when the supplier acts in violation, with a voluntary arbitration process to resolve amounts.
Allows civil actions for damages by either party for violations, with potential punitive damages in cases of bad faith conduct, and permits injunctive and declaratory relief.
Applies to both existing and future agreements, covers successors and transferees, and makes the act cumulative and applicable only in Jefferson County.
Defines key terms (agreement, sales territory, supplier, wholesaler, transfer of business, good faith, reasonable qualifications) and outlines the overall regulatory intent to stabilize the wine industry and preserve jobs in Jefferson County.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Jefferson County