Senate Bill S6703B

2025-2026 Legislative Session

Authorizes holders of certain licenses issued by the state liquor authority to engage in the sale or wholesale of ready-to-drink cocktails, and corrects certain provisions regarding sale of mead and cider

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Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 17, 2025	print number 6703b
Sep 17, 2025	amend (t) and recommit to investigations and government operations
May 09, 2025	print number 6703a
May 09, 2025	amend (t) and recommit to investigations and government operations
Mar 20, 2025	referred to investigations and government operations

Bill Amendments

Original

B (Active)

2025-S6703 - Details

See Assembly Version of this Bill:: A6931
Current Committee:: Senate Investigations And Government Operations
Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Amd §§3 & 101-aaa. add §70, ABC L

2025-S6703 - Summary

Authorizes holders of certain licenses issued by the state liquor authority to engage in the sale or wholesale of ready-to-drink cocktails; corrects certain provisions regarding sale of mead and cider.

2025-S6703 - Sponsor Memo

                                 
BILL NUMBER: S6703

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the alcoholic beverage control law and the tax law, in
relation to authorizing holders of certain licenses authorizing the sale
or wholesale of beer to engage in the sale or wholesale of ready-to-
drink cocktails

 
PURPOSE:

This legislation aims to expand consumer access to ready-to-drink cock-
tails containing distilled spirits with an alcohol by volume of 6% or
lower. The bill provides regulatory equity among alcoholic beverage
categories by allowing spirit-based ready-to-drink cocktails to be sold
in a manner similar to wine products and malt-based beverages.

 
SUMMARY OF PROVISIONS:

*Provision 1: Amends Section 3 of the alcoholic beverage control law by
adding a new subdivision 23-a to define "ready-to-drink cocktail" as a

pre-mixed beverage containing distilled spirits, not exceeding six
percent alcohol by volume, packaged for sale in sealed containers for
off-premises consumption.

*Provision 2: Amends Section 54 of the alcoholic beverage control law by
adding a new subdivision 6 to authorize retail license holders author-
ized to sell beer for off-premises consumption to also sell ready-to-
drink cocktails for off-premises consumption. Clarifies that any use of
the term "beer" in this section shall also apply to ready- to-drink
cocktails, provided that this application is limited to this section and
does not extend to other laws, rules, or regulations unless specifically
related to licensing under this section.

*Provision 3: Amends Section 420 of the tax law by adding a new subdivi-
sion 17 to define "ready-to-drink cocktail" for taxation purposes in the
same manner as defined in the alcoholic beverage control law.

*Provision 4: Amends paragraph (b) of subdivision 1 of Section 424 of
the tax law to apply the tax rate for still wines to ready-to-drink
cocktails, setting the rate at thirty cents per gallon.

*Provision 5: Amends Section 53 of the alcoholic beverage control law to
authorize licensed wholesalers to distribute ready-to-drink cocktails at
wholesale to licensed wholesalers, retailers, and permittees within the
state. Authorizes certain wholesalers to sell ready-to-drink cocktails
directly to consumers for off-premises consumption.

*Provision 6: Authorizes the state liquor authority to promulgate any
rules or regulations necessary to regulate the sale and distribution of
ready-to-drink cocktails.

*Provision 7: Establishes that the act shall take effect ninety days
after becoming law and authorizes the addition, amendment, and repeal of
any necessary rules or regulations before that effective date.

 
JUSTIFICATION:

The ready-to-drink cocktail market is one of the fastest-growing
segments in the alcoholic beverage industry, with increasing consumer
preference for convenient, pre-mixed cocktails. Currently, New York law
permits the sale of wine-based and malt-based ready-to-drink beverages
in grocery and convenience stores, yet spirit-based ready- to-drink
cocktails remain restricted. This inconsistency disadvantages spirit-
based ready-to-drink cocktails, despite their comparable alcohol
content.

This bill addresses this disparity by allowing low-alcohol-by-volume
spirit-based ready-to-drink cocktails to be sold at the same locations
that currently sell beer and wine-based beverages. Doing so will:

*Enhance consumer choice and convenience.

*Generate new revenue streams for licensed retailers and wholesalers.

*Increase tax revenue for the state.

*Strengthen New York's beverage industry and promote local manufactur-
ers. Additionally, licensed retail environments maintain strict age
verification and responsible alcohol sales practices, ensuring that
expanded access to ready-to-drink cocktails does not compromise public
safety.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect ninety days after becoming law.

2025-S6703 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6703
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2025
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the alcoholic beverage control law and the tax  law,  in
   relation  to  authorizing  holders of certain licenses authorizing the
   sale or wholesale of beer to engage in the sale or wholesale of  read-
   y-to-drink cocktails
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "ready-to-drink cocktail retail sales act".
   §  2.  Section  3  of the alcoholic beverage control law is amended by
 adding a new subdivision 23-a to read as follows:
   23-A. "READY-TO-DRINK COCKTAIL" OR "RTD COCKTAIL" SHALL  MEAN  A  PRE-
 MIXED  BEVERAGE  CONTAINING DISTILLED SPIRITS, NOT EXCEEDING SIX PERCENT
 ALCOHOL BY VOLUME, THAT IS PACKAGED FOR SALE IN  SEALED  CONTAINERS  FOR
 OFF-PREMISES CONSUMPTION.
   §  3.  Section  54 of the alcoholic beverage control law is amended by
 adding a new subdivision 6 to read as follows:
   6. A LICENSE TO SELL BEER  AT  RETAIL  FOR  CONSUMPTION  OFF  PREMISES
 ISSUED  UNDER THIS SECTION SHALL AUTHORIZE THE HOLDER OF SUCH LICENSE TO
 SELL READY-TO-DRINK COCKTAILS FOR CONSUMPTION OFF PREMISES. ANY  USE  OF
 THE TERM "BEER" AS USED IN THIS SECTION SHALL BE DEEMED TO APPLY ALSO TO
 READY-TO-DRINK  COCKTAILS;  PROVIDED,  HOWEVER, THAT SUCH APPLICATION OF
 THE TERM "BEER" SHALL BE LIMITED TO THE PROVISIONS OF THIS  SECTION  AND
 SHALL  NOT  APPLY  TO THE USE OF THE TERM "BEER" IN ANY OTHER SECTION OF
 LAW, RULE OR REGULATION, UNLESS SUCH RULE OR REGULATION RELATES  SPECIF-
 ICALLY TO THE ISSUANCE OF A LICENSE UNDER THIS SECTION.
   § 4. Section 420 of the tax law is amended by adding a new subdivision
 17 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10959-01-5
 S. 6703                             2

 
   17. "READY-TO-DRINK COCKTAIL" OR "RTD COCKTAIL" SHALL MEAN A PRE-MIXED
 BEVERAGE CONTAINING DISTILLED SPIRITS, NOT EXCEEDING SIX PERCENT ALCOHOL
 BY  VOLUME, THAT IS PACKAGED FOR SALE IN SEALED CONTAINERS FOR OFF-PREM-
 ISES CONSUMPTION.
   §  5. Paragraph (b) of subdivision 1 of section 424 of the tax law, as
 amended by section 1 of part X-1 of chapter 57 of the laws of  2009,  is
 amended to read as follows:
   (b) Thirty  cents per gallon upon still wines AND READY-TO-DRINK COCK-
 TAILS, except cider containing more than three and two-tenths per centum
 of alcohol by volume, upon which the tax shall be three and seventy-nine
 hundredths cents per gallon;
   § 6. Section 53 of the alcoholic beverage control law, as  amended  by
 chapter 3 of the laws of 2021, is amended to read as follows:
   § 53. Wholesaler's license. Any person may apply to the liquor author-
 ity  for  a license to sell beer at wholesale. Such application shall be
 in writing and verified and shall contain such information as the liquor
 authority shall require. Such application  shall  be  accompanied  by  a
 check or draft for the amount required by this article for such license.
 If  the  liquor  authority  shall grant the application it shall issue a
 license in such form as shall be determined by its rules. Such a license
 shall contain a description of the licensed premises and in form and  in
 substance  shall  be a license to the person therein specifically desig-
 nated to sell beer AND READY-TO-DRINK  COCKTAILS  at  wholesale  in  the
 premises  therein  specifically  licensed  to duly licensed wholesalers,
 retailers and permittees in this state, and to sell or deliver  beer  to
 persons outside the state pursuant to the laws of the place of such sale
 or  delivery.  A  wholesaler's  license  issued or renewed prior to July
 first, nineteen hundred sixty, and thereafter  renewed  or  transferred,
 shall authorize the holder thereof to sell beer AND READY-TO-DRINK COCK-
 TAILS at retail to a person for consumption in [his] SUCH PERSON'S home;
 provided, however, that regardless of the date issued, renewed or trans-
 ferred, a wholesaler's license issued to a brewer or to the wholly-owned
 subsidiary  of a brewer, shall authorize the holder thereof to sell beer
 at retail to a person for consumption in [his] SUCH PERSON'S home.
   § 7. The state liquor authority is authorized to promulgate any  rules
 or  regulations necessary to regulate the sale and distribution of read-
 y-to-drink cocktails, as defined  by  section  three  of  the  alcoholic
 beverage control law, in accordance with the provisions of this act.
   §  8.  This  act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made, including by
 emergency, and completed on or before such effective date.

2025-S6703A - Details

See Assembly Version of this Bill:: A6931
Current Committee:: Senate Investigations And Government Operations
Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Amd §§3 & 101-aaa. add §70, ABC L

2025-S6703A - Summary

2025-S6703A - Sponsor Memo

                                 
BILL NUMBER: S6703A

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the alcoholic beverage control law and the tax law, in
relation to authorizing holders of certain licenses issued by the state
liquor authority to engage in the sale or wholesale of ready-to-drink
cocktails

 
PURPOSE:

This legislation seeks to authorize licensed sellers of beer to also
sell ready-to-drink (RTD) cocktails in New York State, expanding consum-
er access to these products and ensuring regulatory consistency. The
bill reflects the growing demand for convenient, pre-mixed cocktails and
aims to standardize the sale of RTD cocktails across different alcohol
types. By introducing this amendment, the bill provides equal regulatory
treatment for spirit-based RTD cocktails, akin to how wine and beer-
based drinks are currently handled, while limiting key provisions to the
city of New York.

SUMMARY OF PROVISIONS:

Section 1: Defines "RTD cocktail" as a beverage containing distilled
spirits, not exceeding six percent alcohol by volume, and sold in sealed
containers for off-premises consumption.

Section 2: Allows retailers in New York City licensed to sell beer for
off-premises consumption to also sell RTD cocktails for off-premises
consumption. This provision limits the application of RTD cocktail sales
to New York City, ensuring that the term "beer" within this section
applies equally to RTD cocktails in the city, but not extending this
application to other parts of the state.

Section 3: Defines ready-to-drink cocktails for tax purposes.  Addi-
tionally, it adjusts the tax rate for RTD cocktails to be consistent
with the tax rate applied to still wines, at thirty cents per gallon, as
detailed in Section 424.

Section 4: Allows wholesalers in New York to distribute RTD cocktails at
wholesale to licensed retailers and permittees. The amendment also
permits certain wholesalers in New York to sell RTD cocktails directly
to consumers for off-premises consumption.

 
JUSTIFICATION:

The ready-to-drink cocktail market is experiencing rapid growth, driven
by consumer demand for convenience. However, the current regulatory
landscape creates an imbalance by allowing wine- and malt-based RTD
beverages to be sold in more retail locations while limiting access to
spirit-based RTD cocktails. This bill seeks to rectify this disparity,
allowing spirit-based cocktails to be sold in retail environments that
already carry beer and wine-based products.  The initial focus on New
York City will ensure a limit disruption in the current liquor sales
framework.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect ninety days after it becomes law, with
provisions allowing for immediate regulatory changes.

2025-S6703A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6703--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2025
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment  Operations  --  committee  discharged,  bill  amended,   ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to amend the alcoholic beverage control law and the tax law, in
   relation to authorizing holders of  certain  licenses  issued  by  the
   state liquor authority to engage in the sale or wholesale of ready-to-
   drink cocktails
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "ready-to-drink cocktail retail sales act".
   §  2.  Section  3  of the alcoholic beverage control law is amended by
 adding a new subdivision 23-a to read as follows:
   23-A. "READY-TO-DRINK COCKTAIL" OR "RTD  COCKTAIL"  MEANS  A  BEVERAGE
 CONTAINING  LIQUOR  WHICH  IS  ADDED  TO  CONCENTRATED OR UNCONCENTRATED
 JUICE, FLAVORING MATERIAL, WATER,  CITRIC  ACID,  SUGAR,  AND/OR  CARBON
 DIOXIDE,  THAT CONTAINS NOT MORE THAN EIGHT AND ONE-HALF PERCENT ALCOHOL
 BY VOLUME, AND THAT IS SOLD IN SINGLE SERVING CONTAINERS WITH A SIZE  NO
 GREATER THAN SIXTEEN OUNCES EACH.
   §  3.  Section  54 of the alcoholic beverage control law is amended by
 adding a new subdivision 6 to read as follows:
   6. A LICENSE TO SELL BEER  AT  RETAIL  FOR  CONSUMPTION  OFF  PREMISES
 ISSUED UNDER THIS SECTION SHALL AUTHORIZE A HOLDER OF SUCH LICENSE OPER-
 ATING  IN  THE  CITY  OF  NEW  YORK TO SELL READY-TO-DRINK COCKTAILS FOR
 CONSUMPTION OFF PREMISES FROM ANY PREMISES LOCATED IN THE  CITY  OF  NEW
 YORK. ANY USE OF THE TERM "BEER" AS USED IN THIS SECTION SHALL BE DEEMED
 TO  APPLY ALSO TO READY-TO-DRINK COCKTAILS; PROVIDED, HOWEVER, THAT SUCH
 APPLICATION OF THE TERM "BEER" SHALL BE LIMITED  TO  THE  PROVISIONS  OF
 THIS  SECTION  AND  SHALL NOT APPLY TO THE USE OF THE TERM "BEER" IN ANY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10959-05-5
 S. 6703--A                          2

 
 OTHER SECTION OF LAW, RULE OR REGULATION, UNLESS SUCH RULE OR REGULATION
 RELATES SPECIFICALLY TO THE ISSUANCE OF A LICENSE UNDER THIS SECTION.
   §  4.  Section 62 of the alcoholic beverage control law, as amended by
 chapter 361 of the laws of 1994, is amended to read as follows:
   § 62. Wholesaler's liquor license.  Any person may apply to the liquor
 authority for a license to sell liquor at  wholesale.  Such  application
 shall  be  in writing and verified and shall contain such information as
 the liquor authority shall require.  Such application shall be  accompa-
 nied  by  a  check  or draft for the amount required by this article for
 such license. If the liquor authority shall  grant  the  application  it
 shall  issue a license in such form as shall be determined by its rules.
 Such license shall contain a description of the licensed premises and in
 form and in substance shall be a license to the person  therein  specif-
 ically  designated  to sell liquors at wholesale in the premises therein
 specifically  licensed  to  duly  licensed  wholesalers,  retailers  and
 permittees  in  this  state,  and  to  sell liquor in bulk to a licensed
 rectifier or to a permittee engaged in the manufacture of products which
 are unfit for beverage use, for  use  in  the  manufacture  of  products
 produced and sold by such rectifier or permittee, and to sell or deliver
 liquor to persons outside the state pursuant to the laws of the place of
 such  sale or delivery.  Such a license shall also include the privilege
 to sell wine AND READY-TO-DRINK COCKTAILS at wholesale  under  the  same
 terms and conditions without the payment of any additional fee.
   §  5.  Section  63 of the alcoholic beverage control law is amended by
 adding a new subdivision 7 to read as follows:
   7. A LICENSE ISSUED PURSUANT TO THIS SECTION TO A LICENSEE IN THE CITY
 OF NEW YORK SHALL AUTHORIZE THE SALE  OF  READY-TO-DRINK  COCKTAILS  FOR
 OFF-PREMISES  CONSUMPTION,  SUBJECT  TO THE SEVEN-DAY LIMITATION OF SUCH
 LICENSES UNDER THIS SECTION; PROVIDED, HOWEVER, THAT SUCH COCKTAILS  ARE
 PURCHASED  FROM DULY LICENSED WHOLESALERS OR MANUFACTURERS; AND PROVIDED
 FURTHER, THAT SUCH SALES ARE MADE FROM A PREMISES LOCATED IN THE CITY OF
 NEW YORK.
   § 6. The alcoholic beverage control law is amended  by  adding  a  new
 section 70 to read as follows:
   § 70. SALE OF READY-TO-DRINK COCKTAILS BY RETAIL LICENSEES IN THE CITY
 OF NEW YORK. EACH RETAIL LICENSEE UNDER THIS CHAPTER LOCATED IN THE CITY
 OF NEW YORK, INCLUDING THOSE LICENSED PURSUANT TO SECTION SIXTY-THREE OF
 THIS ARTICLE, SHALL HAVE THE RIGHT, BY VIRTUE OF THEIR LICENSE AND WITH-
 OUT  BEING REQUIRED TO PAY ANY ADDITIONAL FEE FOR THE PRIVILEGE, TO SELL
 AT RETAIL FOR CONSUMPTION ON OR OFF THE PREMISES, AS THE  CASE  MAY  BE,
 READY-TO-DRINK  COCKTAILS PURCHASED FROM A PERSON LICENSED TO PRODUCE OR
 SELL LIQUOR, WINE, OR BEER AT WHOLESALE UNDER THIS CHAPTER. THIS SECTION
 SHALL APPLY ONLY TO SALES OF READY-TO-DRINK COCKTAILS  MADE  WITHIN  THE
 CITY OF NEW YORK.
   § 7. Section 420 of the tax law is amended by adding a new subdivision
 17 to read as follows:
   17.  "READY-TO-DRINK COCKTAIL" OR "RTD COCKTAIL" SHALL MEAN A BEVERAGE
 CONTAINING LIQUOR WHICH  IS  ADDED  TO  CONCENTRATED  OR  UNCONCENTRATED
 JUICE,  FLAVORING  MATERIAL,  WATER,  CITRIC  ACID, SUGAR, AND/OR CARBON
 DIOXIDE, THAT CONTAINS NOT MORE THAN EIGHT AND ONE-HALF PERCENT  ALCOHOL
 BY  VOLUME, AND THAT IS SOLD IN SINGLE SERVING CONTAINERS WITH A SIZE NO
 GREATER THAN SIXTEEN OUNCES EACH.
   § 8. Paragraph (b) of subdivision 1 of section 424 of the tax law,  as
 amended  by  section 1 of part X-1 of chapter 57 of the laws of 2009, is
 amended to read as follows:
 S. 6703--A                          3
 
   (b) Thirty cents per gallon upon still wines AND READY-TO-DRINK  COCK-
 TAILS, except cider containing more than three and two-tenths per centum
 of alcohol by volume, upon which the tax shall be three and seventy-nine
 hundredths cents per gallon;
   §  9.  Section 53 of the alcoholic beverage control law, as amended by
 chapter 3 of the laws of 2021, is amended to read as follows:
   § 53. Wholesaler's license. Any person may apply to the liquor author-
 ity for a license to sell beer at wholesale. Such application  shall  be
 in writing and verified and shall contain such information as the liquor
 authority  shall  require.  Such  application  shall be accompanied by a
 check or draft for the amount required by this article for such license.
 If the liquor authority shall grant the application  it  shall  issue  a
 license in such form as shall be determined by its rules. Such a license
 shall  contain a description of the licensed premises and in form and in
 substance shall be a license to the person therein  specifically  desig-
 nated  to  sell  beer  AND  READY-TO-DRINK COCKTAILS at wholesale in the
 premises therein specifically licensed  to  duly  licensed  wholesalers,
 retailers  and  permittees in this state, and to sell or deliver beer to
 persons outside the state pursuant to the laws of the place of such sale
 or delivery. A wholesaler's license issued  or  renewed  prior  to  July
 first,  nineteen  hundred  sixty, and thereafter renewed or transferred,
 shall authorize the holder thereof to sell beer AND READY-TO-DRINK COCK-
 TAILS at retail to a person for consumption in [his] SUCH PERSON'S home;
 provided, however, that regardless of the date issued, renewed or trans-
 ferred, a wholesaler's license issued to a brewer or to the wholly-owned
 subsidiary of a brewer, shall authorize the holder thereof to sell  beer
 at retail to a person for consumption in [his] SUCH PERSON'S home.
   § 10. The state liquor authority is authorized to promulgate any rules
 or  regulations necessary to regulate the sale and distribution of read-
 y-to-drink cocktails, as defined by section 3 of the alcoholic  beverage
 control law, in accordance with the provisions of this act.
   §  11.  This act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made, including by
 emergency, and completed on or before such effective date.

2025-S6703B (ACTIVE) - Details

See Assembly Version of this Bill:: A6931
Current Committee:: Senate Investigations And Government Operations
Law Section:: Alcoholic Beverage Control Law
Laws Affected:: Amd §§3 & 101-aaa. add §70, ABC L

2025-S6703B (ACTIVE) - Summary

2025-S6703B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6703B

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the alcoholic beverage control law, in relation to
authorizing holders of certain licenses issued by the state liquor
authority to engage in the sale or wholesale of ready-to-drink cock-
tails, and to correct certain provisions otherwise unintentionally
limiting the sale of mead and/or braggot, cider, and ready-to-drink
cocktails

 
PURPOSE OR GENERAL IDEA OF BILL:

To modernize New York's Alcoholic Beverage Control Law by authorizing
certain retail licensees to sell spirits-based ready-to-drink cocktails,
creating parity between malt-based and spirits-based RTDs, expanding
economic opportunity for small businesses, and correcting statutory
limitations on the sale of mead, braggot, cider, and RTDs.

 
SUMMARY OF PROVISIONS:

Section 1: Establishes the title of the act as the "Ready to Drink Cock-
tail Retail Sales Act."

Section 2: Amends section 3 of the Alcoholic Beverage Control Law to add
a new subdivision 23-a defining "ready to drink cocktail" as a beverage
containing liquor combined with juice, flavoring, water, citric acid,
sugar, or carbon dioxide, containing no more than 8.5 percent alcohol by
volume, and sold in single serving containers of no more than sixteen
ounces.

Section 3: Adds a new section 70 to the Alcoholic Beverage Control Law
authorizing each retail licensee to sell ready-to-drink cocktails at
retail for on or off-premises consumption without additional fees,
provided the RTDs are purchased from a licensed wholesaler or manufac-
turer.

Section 4: Amends section 101-aaa of the Alcoholic Beverage Control Law
to include ready-to-drink cocktails in existing provisions governing the
sale, payment, and delivery terms for beer, mead, braggot, cider, and
wine products.

Section 5: Sets the effective date as ninety days after enactment and
authorizes the State Liquor Authority to adopt any necessary rules and
regulations prior to that date.

 
JUSTIFICATION:

The ready-to-drink (RTD) cocktail market is one of the most dynamic and
fastest-growing segments of the beverage industry. The United States RTD
market is projected to grow from $860 million in 2024 to $2.66 billion
by 2033, with a compound annual growth rate of 13%.  Surveys indicate
that 86% of consumers believe spirits-based RTDs should be sold wherever
other RTDs are available, and 55% prefer spirits-based RTDs to malt or
wine-based alternatives.

This growth presents a clear opportunity for New York's small busi-
nesses. Many of the retail licensees that would benefit from this bill
are small independent bodegas, convenience stores, restaurants, taverns,
and family-owned beverage centers. These businesses are anchors in their
communities, providing jobs, neighborhood stability, and accessible
retail options. By granting them the ability to sell spirits-based RTDs,
the bill offers an immediate and meaningful new revenue stream. These
beverages have a similar alcohol content to malt-based RTDs, yet so far,
no legislation has been enacted that would allow these to be sold in the
same locations as malt-based RTDs.

In 45 states, spirits RTDs are taxed at a higher rate than malt RTDs.
This state-level disparity is compounded by a federal tax structure that
taxes spirits RTDs at more than twice the rate of beer or wine-based
RTDs. While beer and malt-based RTDs can be sold in grocery and conven-
ience stores in over forty states, spirits RTDs with the same or lower
alcohol content can only be sold in grocery and convenience stores in 29
states.

Current NY law is but one example of the artificial and outdated barri-
ers for these products. Malt-based RTDs, such as hard seltzers and
flavored malt beverages, are available in grocery stores, bodegas, and
convenience stores throughout the state. Nearly identical spirits-based
RTDs are restricted to liquor stores solely because of their alcohol
source, not their alcohol content. Both categories are typically between
four and eight percent ABV and sold in similar packaging and serving
sizes. Consumers perceive them as interchangeable products, yet one is
widely available, while the other is limited to a specific retail chan-
nel.

Experience from other states shows that expanding RTD availability
boosts small business sales without harming liquor stores. Vermont
expanded RTD sales from 82 state-run stores to over 1,000 private
outlets. Michigan, Mississippi, and Iowa passed similar laws. In each
case, liquor stores continued to operate successfully, while small busi-
nesses in the grocery, convenience, and hospitality sectors experienced
new growth. Pennsylvania projects that allowing broader RTD sales will
generate $137 million in additional tax revenue over five years, exclud-
ing revenue from permit fees.

Some opponents argue that this bill will eliminate one of the larger
revenue streams for liquor stores. Data do not support this claim.  RTDs
currently make up only about 9% of total spirits sales nationally. RTDs
are not a flagship product for liquor stores in the way that wine and
full-size liquor bottles are. Many liquor stores lack the refrigeration
or space to stock RTDs in the way that consumers prefer to purchase
them, which is typically chilled and ready to drink. Consumers visit
liquor stores to purchase bottles of wine, spirits, and specialty items,
rather than single-serve canned cocktails. By contrast, bodegas, small
grocery stores, and restaurants are already equipped to offer quick
grab-and-go beverages and will see direct economic benefit from this
change.

Expanding RTD sales does not dismantle liquor store protections, but it
does create a more level playing field for other small businesses that
are an equally integral part of New York's retail landscape.

There are also existing restrictions for individuals under 21 accessing
these products. Spirit-based RTDs are essentially the same product as
malt-based RTDs already on store shelves. They are subject to the same
licensing requirements, ID checks, and penalty structures. The only
difference is the alcohol base. This bill maintains strict limits on
alcohol content and container size to keep them in line with beer and
cider products. No new or unfamiliar beverage types are being intro-
duced, and no expansion into unregulated retail channels will occur.

Examples of spirits-based RTDs that this bill would cover include High
Noon Hard Seltzer, Cutwater Spirits Margarita, Jack Daniel's Canned
Cocktails, On The Rocks Mai Tai, Crown Royal Whisky and Cola, Bacardi
Rum Cocktails, 1800 Ultimate Margarita, and House of Delola Spritz.
These products directly compete with malt-based RTDs such as Truly,
White. Claw, and Twisted Tea, which are already widely available outside
liquor stores. Consumers do not differentiate between them based on
alcohol source, and the law should not either.

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.

2025-S6703B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6703--B
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 20, 2025
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment  Operations  --  committee  discharged,  bill  amended,   ordered
   reprinted  as  amended  and recommitted to said committee -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the alcoholic  beverage  control  law,  in  relation  to
   authorizing  holders  of  certain  licenses issued by the state liquor
   authority to engage in the sale or wholesale of  ready-to-drink  cock-
   tails,  and  to  correct  certain provisions otherwise unintentionally
   limiting the sale of mead and/or braggot,  cider,  and  ready-to-drink
   cocktails
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "ready-to-drink cocktail retail sales act".
   §  2.  Section  3  of the alcoholic beverage control law is amended by
 adding a new subdivision 23-a to read as follows:
   23-A. "READY-TO-DRINK COCKTAIL" OR "RTD  COCKTAIL"  MEANS  A  BEVERAGE
 CONTAINING  LIQUOR  WHICH  IS  ADDED  TO  CONCENTRATED OR UNCONCENTRATED
 JUICE, FLAVORING MATERIAL, WATER, CITRIC ACID, SUGAR, OR CARBON DIOXIDE,
 THAT CONTAINS NOT MORE  THAN  EIGHT  AND  ONE-HALF  PERCENT  ALCOHOL  BY
 VOLUME,  AND  THAT  IS  SOLD IN SINGLE SERVING CONTAINERS WITH A SIZE NO
 GREATER THAN SIXTEEN OUNCES EACH.
   § 3. The alcoholic beverage control law is amended  by  adding  a  new
 section 70 to read as follows:
   §  70.  SALE  OF  READY-TO-DRINK  COCKTAILS  BY RETAIL LICENSEES. EACH
 RETAIL LICENSEE UNDER THIS CHAPTER SHALL HAVE THE RIGHT,  BY  VIRTUE  OF
 THEIR  LICENSE  AND WITHOUT BEING REQUIRED TO PAY ANY ADDITIONAL FEE FOR
 THE PRIVILEGE, TO SELL AT RETAIL FOR CONSUMPTION ON OR OFF THE PREMISES,
 AS THE CASE MAY BE, READY-TO-DRINK COCKTAILS  PURCHASED  FROM  A  PERSON
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10959-09-5

 S. 6703--B                          2
 
 LICENSED  TO  PRODUCE  OR  SELL LIQUOR, WINE, OR BEER AT WHOLESALE UNDER
 THIS CHAPTER.
   §  4.  The section heading, paragraph f of subdivision 1, and subdivi-
 sions 2, 3, 4, 5, 6, 7 and 8 of section 101-aaa of the alcoholic  bever-
 age  control  law, the section heading, paragraph f of subdivision 1 and
 subdivisions 4, 5, 6, 7 and 8 as added by section 183 of part A of chap-
 ter 389 of the laws of 1997, subdivision 2 as amended by chapter 745  of
 the  laws  of  2019,  and subdivision 3 as amended by chapter 499 of the
 laws of 2004, are amended to read as follows:
   Terms of sale; beer, MEAD AND/OR BRAGGOT, CIDER, READY-TO-DRINK  COCK-
 TAILS, or wine products.
   f.  "Retail licensee" means a person licensed pursuant to this chapter
 who purchases beer, MEAD AND/OR  BRAGGOT,  CIDER,  READY-TO-DRINK  COCK-
 TAILS,  and/or  wine products for resale for on or off premises consump-
 tion, except a person licensed to sell liquor and/or wine for off  prem-
 ises consumption.
   2.  No  manufacturer  or  wholesaler licensed under this chapter shall
 sell or deliver any beer, mead  AND/OR  BRAGGOT,  cider,  READY-TO-DRINK
 COCKTAILS,  or  wine  products to any retail licensee except as provided
 for in this section:
   (a) for cash to be paid at the time of delivery;
   (b) on terms requiring payment by such retail licensee for such  beer,
 mead  AND/OR  BRAGGOT, cider, READY-TO-DRINK COCKTAILS, or wine products
 on or before the final payment date of any credit  period  within  which
 delivery is made; or
   (c)  by  business payment card; provided that a manufacturer or whole-
 saler that exercises reasonable diligence to ensure  the  sale  comports
 with  the  requirements  of  this  section  shall  not  be found to have
 violated this subdivision where a retail licensee  uses  a  credit  card
 other than a business payment card.
   Provided,  however,  that  the  sale of READY-TO-DRINK COCKTAILS, wine
 products, mead, or cider to a retail licensee by a  wholesaler  licensed
 under  section fifty-eight, sixty-two, or seventy-eight of this chapter,
 or a licensed manufacturer of liquor, mead or wine or a cider producer's
 license, shall be governed by the provisions of section one hundred-one-
 aa of this article.
   3. Each such manufacturer and  wholesaler  shall,  on  or  before  the
 respective  delinquent  notice  date, give written notice of default, by
 first class mail, to all such licensees who have failed to make  payment
 to  the manufacturer or wholesaler on or before their final payment date
 for beer, MEAD AND/OR BRAGGOT, CIDER, READY-TO-DRINK COCKTAILS, or  wine
 products  sold or delivered to such licensees during the previous credit
 period. Any such retail licensee receiving such notice shall not  there-
 after  purchase  beer,  MEAD AND/OR BRAGGOT, CIDER, READY-TO-DRINK COCK-
 TAILS, or wine products except for cash until such time as the authority
 determines that its name shall not be published on the  delinquent  list
 as  provided  in  this  subdivision, or until such time as the authority
 permits sales or deliveries to such licensee as provided in  subdivision
 five  of  this section. Each such manufacturer and wholesaler shall file
 with the authority, on or before each notification date, copies  of  the
 notices  sent by it to all delinquent retail licensees, and in addition,
 if the authority shall so require, a  written  list  setting  forth  the
 names  and addresses of all such delinquent licensees. The authority, in
 its discretion, may extend for a period not  exceeding  three  days  the
 date for giving written notice of default to delinquent retail licensees
 and  extend  for  three  days the date for filing with the authority the
 S. 6703--B                          3

 copies of notices sent to such licensees  and/or  the  written  list  of
 delinquent retail licensees. The authority shall, as soon as practicable
 after  each  notification  date,  compile,  publish,  and  furnish  each
 manufacturer  and  wholesaler  licensed  under this chapter a delinquent
 list containing the names and addresses of all retail licensees who have
 been  reported  by  manufacturers  and  wholesalers  pursuant   to   the
 provisions of this section or section one hundred one-aa of this article
 as  having failed to make payment as required by this section or section
 one hundred one-aa of this article for beer, MEAD AND/OR BRAGGOT, CIDER,
 READY-TO-DRINK COCKTAILS, or wine products sold or  delivered  to  them,
 and  no such manufacturer or wholesaler, on or after the fifth day after
 the receipt of such delinquent list, shall knowingly,  [wilfully]  WILL-
 FULLY  or  intentionally  sell or deliver any beer, MEAD AND/OR BRAGGOT,
 CIDER, READY-TO-DRINK COCKTAILS, or wine products to any  such  licensee
 whose name appears on such list, except for cash, until such time as the
 name  of such licensee is removed therefrom, except as otherwise permit-
 ted by this section. The receipt of a delinquent list by a  manufacturer
 or  wholesaler  shall  constitute  knowledge  of the names of the retail
 licensees who have failed to make payment for beer or wine  products  as
 required  by this section. The failure of any manufacturer or wholesaler
 to comply with the provisions of this section may, at the discretion  of
 the authority, subject the license of such manufacturer or wholesaler to
 suspension  for  not  more than five days for the first offense, and not
 more than thirty days  for  a  subsequent  offense.  The  authority  may
 publish  the  delinquent  list  on  its website; provided, however, that
 access shall  be  restricted  to  those  manufacturers  and  wholesalers
 licensed  under  this  chapter.  Such  publication  shall  be considered
 receipt thereof by all manufacturers and wholesalers.
   4. In the event that any dispute shall exist between any  manufacturer
 or  wholesaler and a retail licensee to whom such manufacturer or whole-
 saler shall have sold beer, MEAD AND/OR BRAGGOT,  CIDER,  READY-TO-DRINK
 COCKTAILS,  or  wine products, either as to the fact of payment or as to
 the amount due for such beer or wine products or as to the  quantity  of
 the  beer  or  wine  products sold or delivered, which dispute cannot be
 adjusted between them, the authority is authorized to receive statements
 from each of the parties to such dispute as to  the  facts  and  circum-
 stances  thereof  and to determine whether or not such retail licensee's
 name should be published on the delinquent list.
   5. The authority in the case of a retail  licensee  who  has  actually
 made  payment for beer, MEAD AND/OR BRAGGOT, CIDER, READY-TO-DRINK COCK-
 TAILS, or wine products, or on good cause shown to it, may permit  sales
 or deliveries to any [retial] RETAIL licensee who has received notice of
 default  or who is named on any delinquent list, on terms other than for
 cash, but within the limitations of this section, prior to the  publica-
 tion of the next delinquent list.
   6.  The license of any retail licensee who purchases or accepts deliv-
 ery of beer, MEAD AND/OR BRAGGOT, CIDER,  READY-TO-DRINK  COCKTAILS,  or
 wine  products on any terms, other than as provided in this section, may
 be suspended for not more than five days for the first offense  and  not
 more  than thirty days for a subsequent offense. The failure of any such
 retail licensee to pay any amount in default before  the  expiration  of
 the  period of suspension shall be deemed and punishable as a subsequent
 offense until paid. In addition, the  authority  may  require  any  such
 retail  licensee, after default in making payment in accordance with the
 provisions of this section to make payment in cash for beer, MEAD AND/OR
 S. 6703--B                          4
 
 BRAGGOT, CIDER, READY-TO-DRINK COCKTAILS, or wine products  subsequently
 delivered.
   7. Nothing contained in this section shall be construed to require any
 manufacturer  or  wholesaler to extend credit to any retail licensee nor
 to restrain any manufacturer or wholesaler from seeking  to  enforce  by
 legal  action  or  otherwise, payment of any sum or sums of money due or
 alleged to be due to any such manufacturer or wholesaler for beer,  MEAD
 AND/OR  BRAGGOT,  CIDER, READY-TO-DRINK COCKTAILS, or wine products sold
 or delivered to any such retail licensee.
   8. There shall be paid to the liquor authority by each person applying
 after the effective date of this section for any license to  sell  beer,
 MEAD  AND/OR  BRAGGOT, CIDER, READY-TO-DRINK COCKTAILS, or wine products
 to retailers or upon the renewal of such license, a  sum  equivalent  to
 ten  per centum of the annual license fee prescribed by this chapter for
 each such licensee. Such moneys shall be used by the authority to defray
 the expenses incurred in the administration of this section.
   § 5. This act shall take effect on the ninetieth day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made,  including  by
 emergency, and completed on or before such effective date.

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Sponsored By

Robert Jackson

Current Bill Status - In Senate Committee Investigations And Government Operations Committee

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