HB445 Alabama 2014 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: John F. Knight Jr
Democrat
Co-Sponsor: Thad McClammy
Session: Regular Session 2014
Title: Montgomery Co., alcoholic beverages, sale of wine, business relations between suppliers and wholesalers of wine, Montgomery County Wine Franchise Jobs Protection Act, established
Summary: The Montgomery County Wine Franchise Jobs Protection Act creates a county-only framework to regulate wine supplier–wholesaler relationships, protect local jobs, and govern exclusive sales territories, transfers, terminations, and disputes.
What This Bill Does
It requires wine suppliers licensed in Alabama to sell through Montgomery County wholesalers and to grant each an exclusive sales territory in writing. It sets rules for what suppliers and wholesalers can and cannot do, including prohibiting price fixing, coercion to take unrequested deliveries, or interference with transfers or changes in management, unless standards are met. It establishes procedures for amendments, terminations, and transfers with notice and good-faith requirements, and provides remedies including actual damages, potential punitive damages, and options for arbitration or court action. The act applies to both existing and future agreements and applies only within Montgomery County.

Who It Affects
Wholesalers in Montgomery County: gain exclusive territories, transfer and management protections, and the right to sue for damages or seek arbitration if a supplier acts in bad faith.
Wine suppliers licensed to sell in Alabama: must provide written agreements with exclusive territories, follow strict conduct rules, face potential damages and remedies if they violate the act, and must navigate transfer and termination procedures.

Key Provisions
Written supplier–wholesaler agreements with a designated exclusive territory for Montgomery County (including up to 90 days of temporary service by another wholesaler).
Prohibitions on price fixing, assigning same brand to multiple wholesalers in the same territory, coercing deliveries, coercing compliance with laws, and interfering with transfers or manager changes without nondiscriminatory standards.
Transfers of a wholesaler's business allowed to a designated member without supplier consent; other transferees require supplier approval based on nondiscriminatory, material, reasonable standards; grounds for disapproval include insolvency, license issues, felony convictions, or good-cause reasons.
Notice requirements for amendments, terminations, nonrenewals (typically at least 60 days before they take effect) and detailed statements of reason and effective date.
Good-faith standard, defined qualifications, and cure periods for noncompliance; immediate termination in cases of insolvency, long license revocation, or felony conviction affecting goodwill.
Compensation for diminished value of a wholesaler’s business when disrupted by supplier actions; possible voluntary arbitration to determine amount.
Civil actions for damages; potential exemplary/punitive damages for bad-faith conduct; injunctive relief and declaratory judgments available; venue in Montgomery County courts.
Arbitration process for compensation disputes, including panel composition and timelines; shared arbitration costs with each side bearing other costs.
Act applies to existing and future agreements and binds successors and transferees; act is cumulative and governs conflicts with other laws.
Operates only in Montgomery County and becomes effective immediately upon passage.

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