SB347 Alabama 2015 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2015

Title

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

Summary

Lee County would enact a Wine Franchise Jobs Protection Act to regulate wine supplier–wholesaler relationships, require exclusive sales territories, and provide remedies to protect local wine jobs.

What This Bill Does

In Lee County, wine suppliers must provide written agreements with exclusive sales territories for each wholesaler. The act limits supplier actions, sets transfer and qualification rules, and allows for compensation and arbitration if a supplier acts in bad faith. It also enables civil actions for damages and applies to both existing and future agreements and successors.

Who It Affects

• Lee County wine wholesalers (and their owners/managers): gain protected exclusive territory rights, transfer protections, and potential compensation if a supplier violates the act.
• Wine suppliers licensed to sell in Alabama (operating in Lee County): must grant exclusive territories in writing, follow restrictive rules, and face damages or punitive damages for bad-faith conduct.

Key Provisions

• Requires written supplier–wholesaler agreements in Lee County that designate a specific exclusive sales territory for each brand, with existing agreements renewed consistent with the act.
• Prohibits suppliers from price fixing, selling to other wholesalers in the same territory, or coercing wholesalers to accept unordered deliveries; allows reasonable inventory requirements when applied in good faith.
• Requires suppliers to provide any agreement changes with 60 days' notice, and establishes 'good cause' and 'good faith' standards for amendments, terminations, or nonrenewals.
• Imposes transfer rules: non-discriminatory, material, and reasonable standards for transferees; supplier consent required for transfers (except to designated members or certain permitted transfers); protects designated members from certain delays.
• Provides for compensation to the harmed party for diminished value of the business (including goodwill) when a supplier acts illegally or in bad faith; enables voluntary arbitration if parties cannot agree on amount, with a defined arbitration process.
• Permits civil actions for damages, costs, and potential attorney fees; allows punitive damages for bad-faith conduct; venue is Lee County Circuit Court or the U.S. District Court for the Northern District of Alabama; act is cumulative and applies to existing and future agreements.

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