SB351 Alabama 2014 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Dick Brewbaker
Republican
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: Montgomery County Wine Franchise Jobs Protection Act creates rules for supplier‑wholesaler wine relations in Montgomery County, requiring written exclusive territories, transfer protections, and dispute remedies to protect local jobs.
What This Bill Does
If passed, the bill would apply only in Montgomery County and require suppliers to sell wine through wholesalers with written agreements that designate exclusive sales territories. It restricts certain supplier actions (like altering or canceling agreements) to when they act in good faith and with proper notice, and it outlines procedures for amendments, terminations, and transfers. The act also provides for compensation to wholesalers for diminished business value, allows civil actions and arbitration to resolve disputes, and sets venue and remedies including possible punitive damages in cases of bad faith.

Who It Affects
Wine suppliers/manufacturers/importers licensed by the Alabama Alcoholic Beverage Control who must provide written exclusive territory agreements and follow defined rules for amendments, terminations, and transfers, or face damages and arbitration.
Wine wholesalers licensed in Montgomery County who gain exclusive sales territories, protections during transfers, and the right to seek damages, injunctive relief, and arbitration if suppliers violate the act.

Key Provisions
Section 5 requires suppliers to sell through wholesalers and grant exclusive sales territories in writing.
Section 6 mandates written agreements with designated exclusive territories and lists numerous prohibited supplier actions (e.g., coercion, price fixing, interfering with transfers) and allows temporary service arrangements for up to 90 days.
Section 7 imposes wholesalers' duties within their designated territories and provides a process for temporary service interruptions during which other qualified wholesalers may service the territory.
Section 8 requires suppliers to give at least 60 days written notice (by certified mail) for amendments, with good cause and a specified process for action.
Section 9 allows wholesaler transfers to designated members or other qualified transferees without supplier consent, subject to qualifications and aSupplier burden of proof for disqualification.
Section 10 provides for reasonable compensation to the affected party for diminished value of the business and outlines arbitration procedures to determine amounts.
Section 13 allows civil actions for damages, court costs, attorney fees, and injunctive relief; it also permits punitive damages for bad-faith conduct with a clear-and-convincing standard.
Sections 12–17 cover applicability to existing and future agreements, successor obligations, severability, cumulative effect, and immediate effectiveness 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: Montgomery County