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AL HB437
Bill
Status
5/4/2021
Primary Sponsor
Terri Collins
Click for details
AI Summary
HB437 Summary
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Allows wine manufacturers with federal permits to obtain direct wine shipper licenses to ship up to 12 cases annually per Alabama resident aged 21+, with wine approval and proper labeling requirements.
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Establishes wine fulfillment center licensing for third-party logistics providers to warehouse and ship wine on behalf of licensed direct wine shippers, subject to compliance reporting and verification requirements.
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Requires wine suppliers (manufacturers/importers) to grant exclusive sales territories to wholesalers and prohibits direct retail sales; mandates written franchise agreements between suppliers and wholesalers.
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Regulates supplier-wholesaler relationships by restricting price fixing, coercion, and retaliatory actions, while requiring 60-day notice for agreement terminations and establishing arbitration procedures for compensation disputes.
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Makes unlicensed direct wine shipment a Class C misdemeanor; requires quarterly reporting to the Alcoholic Beverage Control Board; effective August 1, 2021.
Legislative Description
Wine, manufacturers, authorized to ship wine directly to Alabama residents, permitting of wine fulfillment centers, require importers and manufacturers of wine to enter into exclusive franchise agreements with wholesalers, to provide for reporting requirements and penalties, Secs. 28-3A-6.1, 28-3A-6.2, 28-8A-1 to 28-8A-11, inclusive, added; Sec. 28-1-4, 28-3-1 am'd.
Alcoholic Beverage Control Board
Last Action
Delivered to Governor at 2:25 p.m. on May 4, 2021.
5/4/2021