SB332 Alabama 2015 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Regular Session 2015

Title

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

Summary

Establishes the Tuscaloosa County Wine Franchise Jobs Protection Act to regulate wine supplier–wholesaler relations in Tuscaloosa County with written agreements, exclusive territories, and dispute resolution to protect local wine industry jobs.

What This Bill Does

Applies only in Tuscaloosa County and requires written agreements between wine suppliers and wholesalers that spell out the supplier's agreement and designate an exclusive sales territory. It restricts certain supplier actions, such as price fixing, coercing orders, or interfering with transfers, and it outlines transfer and management standards to prevent discrimination. It creates a framework for compensation and voluntary arbitration if either side is harmed by the other's actions, and it lets parties sue for damages in court. It applies to current and future agreements, is cumulative, and enforcement can occur in Tuscaloosa County courts or federal court in the Northern District of Alabama.

Who It Affects

• Wine suppliers licensed to sell in Alabama: must provide written agreements with exclusive territories to Tuscaloosa wholesalers.
• Wine wholesalers licensed in Tuscaloosa County: receive exclusive territories and can seek compensation or arbitration if suppliers violate the act; may transfer ownership under act rules.
• Wholesaler owners, designated members, and managers: subject to nondiscriminatory qualifications for transfers and management changes; protected from supplier interference.
• Potential transferees or designated members: subject to approval standards and could participate in arbitration if disputes about compensation arise.

Key Provisions

• Written agreements: Suppliers must provide each wholesaler with a written agreement detailing the supplier–wholesaler relationship and designating an exclusive sales territory; existing agreements must be renewed consistent with the act; temporary service arrangements may be allowed for up to 90 days.
• Territory and conduct restrictions: Prohibits price fixing, selling the same brand to multiple wholesalers in the same territory, coercing deliveries, and coercing compliance with unordered products or fees; prohibits unreasonable withholding of territory protections and other discriminatory practices.
• Transfers and management: Establishes nondiscriminatory, material, and reasonable qualifications for transfers and manager changes; allows transfers to designated members without supplier consent under certain conditions; permits supplier disapproval with burden of proof for other transfers; limits interference with transfers.
• Compensation and arbitration: If a supplier or wholesaler harms the other’s business, the harmed party may recover actual damages and, if needed, pursue voluntary arbitration to determine reasonable compensation; arbitration panel rules and cost sharing are specified.
• Civil remedies and venue: Violations can lead to civil actions for damages; punitive damages may be awarded for bad-faith conduct with clear and convincing evidence; injunctive relief and declaratory judgments are available; cases are heard in Tuscaloosa County Circuit Court or the U.S. District Court for the Northern District of Alabama.
• Applicability andMisc: Applies to existing and future agreements and transfers; act is cumulative and severable; becomes effective upon governor's 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

Tuscaloosa County