SB457 Alabama 2015 Session

Updated Feb 27, 2026

Notable

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, created
Summary: The bill creates the Lee County Wine Franchise Jobs Protection Act to regulate supplier–wholesaler relationships for wine in Lee County, requiring written agreements with exclusive territories and providing protections to preserve and grow local wine jobs.
What This Bill Does
It requires wine suppliers licensed by the board to provide written agreements with each Lee County wholesaler that designate an exclusive sales territory. It sets rules on how agreements can be amended, terminated, or transferred, including good faith requirements and 60-day notice. It offers compensation to wholesalers for the diminished value of their business caused by supplier actions, with optional arbitration if the parties disagree, and allows civil actions for violations. It applies to existing and future agreements and successors, and specifies venues for dispute resolution.

Who It Affects
Wine suppliers licensed by the Alabama Board: must grant exclusive sales territories to each Lee County wholesaler and follow the act's rules, affecting how they structure and modify agreements.
Wholesalers of wine in Lee County: gain protected exclusive territories, have defined transfer and manager-qualification rules, and can seek compensation or arbitration for actions that diminish the value of their business.
Designated members or transferees of a wholesaler: have specific pathways for transferring to designated members or qualified transferees, with required approvals and nondiscriminatory standards.
Future successors and corporate successors of suppliers/wholesalers: bound by the act’s terms for existing and new agreements, ensuring continuity of the provisions.

Key Provisions
Written agreements with exclusive sales territories: Suppliers must provide written agreements to each wholesaler detailing an exclusive territory, with existing agreements renewed in line with the act.
Prohibitions and good faith requirements: Suppliers and wholesalers are limited in certain actions (e.g., price fixing, coercion to accept unordered wine, interference with transfers) and must act in good faith with nondiscriminatory standards for management qualifications.
Transfers and designated members: Rules governing transfer of a wholesaler's business, including designated members as potential transferees, and required supplier approvals based on nondiscriminatory qualifications.
Compensation and dispute resolution: Wholesalers may receive reasonable compensation for diminished business value caused by a supplier's actions, with voluntary arbitration if needed; punitive damages may be awarded for bad faith conduct.
Remedies, venue, and scope: Civil actions for violations are allowed; injunctive relief is available; disputes must be filed in Lee County Circuit Court or the U.S. Middle District of Alabama; the act is cumulative and applies to both existing and future agreements, with an immediate effective date.

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