What's happening
This bill prohibits membership warehouse retailers in New York from selling alcohol to businesses using business cards, with escalating penalties for violations.
Why it matters
Limits bulk alcohol resale to prevent unfair competition. By prohibiting membership warehouse retailers from selling alcohol to businesses using business cards, the bill aims to stop retailers (like bars or liquor stores) from sourcing discounted alcohol from warehouses and reselling it, which could undercut traditional distributors and small local stores.
Clarifies enforcement and increases penalties. The bill establishes a clear escalation of consequences—from warning to suspension and then full license revocation—for repeat violations, signaling serious intent to enforce this restriction and deter circumvention.
Defines “membership warehouse retailer” to close loopholes. By specifically defining what counts as a membership warehouse retailer, the bill prevents large warehouse clubs from exploiting ambiguous language to continue selling alcohol to commercial buyers.
Targets business purchasing practices, not individual consumers. The bill does not affect ordinary consumers buying alcohol for personal use, focusing enforcement only on business-to-business transactions, thus minimizing disruption to average shoppers.
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Who cares
Headline styles
Limit Alcohol Sales at Warehouses
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5240
2017-2018 Regular Sessions
IN SENATE
March 16, 2017
Introduced by Sen. ALCANTARA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the alcoholic beverage control law, in relation to membership warehouse stores
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 20-a of section 3 of the alcoholic beverage control law is renumbered subdivision 20-f and a new subdivision 20-a is added to read as follows:
20-a. "Membership warehouse retailer" means and includes any store primarily engaged in the retail sale of a general line of groceries, which may include apparel, furniture and appliances which limits access to members of the club including businesses and individuals who are subject to pay a fee or premium to shop in the club.
§ 2. Section 100 of the alcoholic beverage control law is amended by adding a new subdivision 2-c to read as follows:
2-c. (a) No membership warehouse retailer shall sell, or knowingly agree to sell, or sell by omission, any alcoholic beverage to a retailer who presents a corporate or business, debit, credit, or membership card bearing the name of a retailer at the point of sale. The first violation of this subdivision shall result in a written notice of violation and warning from the liquor authority. A second violation of this subdivision shall result in a suspension and imposition of a civil penalty pursuant to section one hundred eighteen of this article. A third violation of this subdivision shall result in a revocation, or cancellation of a license to sell alcoholic beverages pursuant to section one hundred eighteen of this article.
(b) The acceptance by a membership warehouse retailer of a corporate or business, debit, credit, or membership card that has sufficient indicia of an association with a retailer is a willful intent to violate the law within this subdivision.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10470-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the alcoholic beverage control law, in relation to membership warehouse stores
Purpose of bill
To prevent membership warehouse retailers from selling alcoholic beverages to smaller retailers, who then sell these alcoholic beverages to their respective customers.
Summary of provisions of bill
Section 1 amends Section 3 of the Alcoholic beverage control law, by adding a new subdivision 20-a, which defines the term "Membership warehouse retailer."
Section 2 amends Section 100 of the Alcoholic Beverage Control Law by adding a new subdivision 2-c, making it illegal for "Membership warehouse retailer(s)" to sell alcoholic beverages to a retailer who "presents a corporate or business, debit, credit, or membership card bearing the name of a retailer at point of sale."
Subdivision 2-c also provides language regarding penalties for violation of the subdivision, and the definition of "willful intent," as it relates to this subdivision.
Section 3 provides the effective date.
Justification
Big-box retailers, such as BJ's and Costco, hold retail-only beer licenses (also known as 'AX' licenses). This means, pursuant to Section 25 of the Alcoholic Beverage Control Law (ABCL), that they may make "a sale to a consumer or to any person for any purpose other than for resale."
Despite this clear language, these "big-box" retailers knowingly sell their beer to smaller retailers (bodegas, convenience stores, grocery stores), who then sell it to their respective customers. This is both illicit (according to the ABCL), and harmful to independent beer distributors, who simply cannot compete with the lower prices that "big-box" stores provide.
By making it a violation of the ABCL for these "big-box" stores to sell alcohol to another retailer with "willful intent," this legislation will work to ensure that these occurrences do not continue, and that independent beer distributors in New York State can remain competitive in their industry.
Legislative history
None.
Fiscal implications
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.