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AL HB445

Bill

Status

Introduced

3/12/2020

Primary Sponsor

Terri Collins

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Origin

House of Representatives

Regular Session 2020

AI Summary

HB445 Summary

  • Requires wine suppliers (manufacturers and importers) to designate exclusive sales territories and enter into written franchise agreements with wholesalers for each territory.

  • Prohibits suppliers from fixing wholesale prices, coercing wholesalers, requiring exclusive brand representation, demanding financial records, or retaliating against wholesalers who file complaints.

  • Establishes supplier obligations for agreement amendments, terminations, and nonrenewals, requiring 60 days' written notice citing good cause, with limited exceptions for insolvency, license revocation, or felony convictions.

  • Protects wholesaler business transfers to designated family members without supplier approval and requires suppliers to act in good faith when evaluating non-family transferees using nondiscriminatory standards.

  • Creates civil remedies for violations including actual damages, court costs, attorney fees, and punitive damages for bad faith actions; applies retroactively to agreements existing as of December 31, 2019; effective August 1, 2020.

Legislative Description

Alcoholic beverages, to require licensed importers and manufacturers of wine to enter into exclusive franchise agreements with wholesalers, Secs. 28-8A-1 to 28-8A-11, inclusive, added.

Alcoholic Beverage Control Board

Last Action

Read for the first time and referred to the House of Representatives committee on Economic Development and Tourism

3/12/2020

Committee Referrals

Economic Development and Tourism3/12/2020

Full Bill Text

No bill text available