SB472 Alabama 2013 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Co-Sponsors

Rodger SmithermanPriscilla Dunn

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

In Jefferson County, SB472 creates a wine franchise framework requiring written supplier–wholesaler agreements with exclusive sales territories, and establishes rules and remedies to protect wine industry jobs.

What This Bill Does

The bill requires wine suppliers licensed in Alabama to sell through Jefferson County wholesalers and to provide each wholesaler with a written agreement that designates a specific exclusive sales territory. It sets standards and restrictions for actions by both suppliers and wholesalers, including limits on modifying or canceling agreements, transfer rules, and the handling of territory and competition. It provides for remedies such as compensation for diminished value, voluntary arbitration, civil actions for violations, and specific venue for lawsuits, and it applies to both existing and future agreements, becoming effective January 1, 2013 in Jefferson County.

Who It Affects

• Wine suppliers (manufacturers/importers licensed by the board): must issue written, territory-specific agreements to each Alabama wholesaler in Jefferson County and follow fairness and non-discrimination rules in transfers, terminations, and other actions; may be liable for damages and may face arbitration or court actions for violations.
• Wine wholesalers (licensed wholesalers in Jefferson County): must operate under written agreements with exclusive territories, may transfer under nondiscriminatory standards, and can seek damages or arbitration for supplier violations; have protections against unilateral changes and improper interference.

Key Provisions

• Section requiring each supplier to sell through Jefferson County wholesalers and to grant each wholesaler a written exclusive sales territory.
• Prohibitions on certain supplier actions (e.g., unauthorized amendments/terminations, coercion, price fixing, delivering unordered wine, or delaying transfers without good cause) and on certain wholesaler actions (e.g., selling outside territory, failing to devote efforts in designated territory).
• Non-discriminatory, material, and reasonable standards for transfers and manager appointments; designated member transfer provisions; required written notices and timelines for transfers and modifications.
• Requirement for reasonable compensation to the affected party for diminished value of the business if a supplier or wholesaler violates the act, with voluntary arbitration as an option to resolve disputes about compensation; courts may award damages and attorney fees.
• Civil actions for violations, with specified venue in Jefferson County Circuit Court or the U.S. District Court for the Northern District of Alabama; severability and cumulative effect of the act.
• Wholesaler rights cannot be waived; applicability to existing and new agreements and successors; and the act becomes effective in Jefferson County upon passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Jefferson County