HB610 Alabama 2015 Session

Summary

Primary Sponsor

Pebblin W. WarrenRepresentative

Democrat

Session

Regular Session 2015

Title

Lee Co., alcoholic beverages, business relations between suppliers and wholesalers of wine, Lee Co. Wine Franchise Jobs Protection Act, created

Summary

HB610 creates the Lee County Wine Franchise Jobs Protection Act to regulate wine supplier–wholesaler relationships in Lee County, establish exclusive sales territories, and provide remedies to protect local wine industry jobs.

What This Bill Does

If enacted, the act would require written agreements between wine suppliers and wholesalers that designate an exclusive sales territory for each brand. It would prohibit a range of supplier and wholesaler actions that could harm competition, transfers, or good-faith dealing, and it would set rules for transfers and manager qualifications. The act creates remedies including civil actions for damages and a voluntary arbitration process for compensation, with potential punitive damages for bad-faith conduct. It applies only in Lee County and becomes effective immediately upon passage.

Who It Affects

• Lee County wine wholesalers: must operate within designated exclusive territories, follow transfer rules, and may seek compensation or arbitration if the act is violated.
• Wine suppliers licensed by the Alabama Alcoholic Beverage Control Board: must grant exclusive territories to wholesalers, avoid anti-competitive or coercive actions, and are subject to remedies and enforcement under the act.

Key Provisions

• Establishes the Lee County Wine Franchise Jobs Protection Act to regulate wine supplier–wholesaler relations in Lee County and to promote local wine jobs.
• Requires written agreements between suppliers and wholesalers that specify an exclusive sales territory for each brand.
• Defines key terms used in the act (e.g., agreement, designated member, good faith, reasonable qualifications, transfer of wholesaler's business).
• Prohibits certain supplier and wholesaler actions (coercion, price fixing, interference with transfers, etc.) and requires good-faith dealing and nondiscriminatory standards.
• Requires suppliers to sell through board-licensed wholesalers and grant exclusive territories; allows temporary service arrangements during interruptions.
• Sets transfer rules for wholesalers, including designated member transfers that may not require supplier consent and standards for non-designated transferees.
• Provides remedies for violations (civil damages, arbitration for compensation, possible punitive damages for bad faith) and outlines burdens of proof.
• Applies to existing and future agreements, binds successors, and makes the act cumulative; venue for actions is Lee County or the U.S. District Court for the Middle District of Alabama; effective 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

Lee County