HB544 Alabama 2014 Session

Updated Feb 27, 2026

Low Interest

Summary

Primary Sponsor: Mike Ball
Republican
Session: Regular Session 2014
Title: Madison Co., alcoholic beverages, sale of wine, business relations between suppliers and wholesalers of wine, Madison County Wine Franchise Jobs Protection Act, established
Summary: Madison County Wine Franchise Jobs Protection Act creates a local framework for wine suppliers and wholesalers, requiring written agreements with exclusive territories and providing protections and remedies for wholesalers.
What This Bill Does
It requires written agreements between wine suppliers and wholesalers that specify exclusive sales territories for each brand. It limits supplier actions that could harm wholesalers, sets transfer and manager-qualification standards, and provides for compensation and optional arbitration if a supplier acts in bad faith. It allows wholesalers to sue for damages, seek injunctive relief, and apply the act to both existing and future agreements and their successors; it becomes effective immediately in Madison County.

Who It Affects
Madison County wine wholesalers: gain formal protection through written, territory-based agreements, non-discriminatory transfer rules, and the right to seek damages, injunctions, or arbitration if a supplier harms their business.
Wine suppliers/manufacturers/importers licensed to sell in Alabama: must provide written agreements with exclusive territories, follow notice and good-faith rules for amendments or terminations, and could face damages or punitive damages if found to act in bad faith.

Key Provisions
Operates only in Madison County and is titled the Madison County Wine Franchise Jobs Protection Act.
Requires written supplier-wholesaler agreements that designate exclusive sales territories for brands.
Defines prohibited supplier acts (e.g., price fixing, coercion, retaliatory actions, improper transfers) and requires reasonable, nondiscriminatory standards for transfers and manager qualifications.
Sets transfer rules, including designated member provisions and prior supplier approval for non-designated transferees.
Provides for reasonable compensation to wholesalers for diminished value of their business when the supplier violates the act, with voluntary arbitration as an option.
Allows civil actions for violations, with potential for punitive damages in cases of bad-faith conduct; permits injunctive relief and declaratory judgments.
Applies to existing and future agreements and their successors; provisions are cumulative and enforceable in Madison County courts or federal court in the Middle District of Alabama.
Effective date is immediate following passage and approval.

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