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AL HB445
Bill
Status
3/12/2020
Primary Sponsor
Terri Collins
Click for details
AI Summary
HB445 Summary
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Requires wine suppliers (manufacturers and importers) to designate exclusive sales territories and enter into written franchise agreements with wholesalers for each territory.
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Prohibits suppliers from fixing wholesale prices, coercing wholesalers, requiring exclusive brand representation, demanding financial records, or retaliating against wholesalers who file complaints.
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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.
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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.
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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