HB286 Alabama 2014 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Mike Hill
Republican
Session: Regular Session 2014
Title: Shelby Co., alcoholic beverages, business relations between suppliers and wholesalers of wine, Shelby Co. Wine Franchise Jobs Protection Act
Summary: In Shelby County, this act creates a formal framework governing wine supplier–wholesaler relationships to protect jobs and designate exclusive sales territories.
What This Bill Does
It sets up written agreements that grant exclusive sales territories to wholesalers and requires suppliers to sell through licensed wholesalers in Shelby County. It restricts unfair practices, outlines transfer rules for wholesalers, and provides for compensation and arbitration if the supplier harms a wholesaler’s value. It applies to both existing and future agreements and allows civil actions for damages, with the act becoming effective immediately in Shelby County.

Who It Affects
Wholesalers in Shelby County and their owners or designated members, who must operate under written exclusivity agreements, follow transfer rules, and seek fair compensation if harmed.
Wine suppliers licensed to operate in Alabama, who must provide written exclusive-territory agreements, avoid coercive or discriminatory practices, and may face damages or arbitration if they violate the act.

Key Provisions
Suppliers must sell wine through wholesalers and grant each wholesaler an exclusive sales territory in writing.
Prohibits price fixing, overlapping sales territories, coercion to accept unrequested deliveries, and other anti-competitive or unfair practices; allows reasonable inventory requirements in good faith.
Defines transfers of a wholesaler’s business with nondiscriminatory, material, and reasonable standards for transferees; restricts supplier interference with transfers.
Requires written notice and good cause for amendments, modifications, terminations, nonrenewals, or discontinuances of an agreement; includes notice timelines and standards for ‘good cause.’
Provides for reasonable compensation to wholesalers for diminished value of their business if the supplier acts improperly, with optional voluntary arbitration to determine the amount.
Allows civil actions for damages, court costs, and possibly attorney fees; permits declaratory judgments and injunctive relief; venues include Shelby County Circuit Court or the Northern District of Alabama.
Arbitration process for compensation disputes, including selection of an impartial arbitrator and a three-member panel; costs shared between parties; final award is binding.
Applies to existing and future agreements, is cumulative, and cannot be waived; effective date is immediate upon enactment.

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