NY State Senate Bill 2025-S6703

Senate Bill S6703

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

download bill text pdf

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
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

A (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, 54 & 53, ABC L; amd §§420 & 424, Tax L

2025-S6703 - Summary

Authorizes holders of certain licenses issued by the state liquor authority for consumption off premises to engage in the sale and/or wholesale of ready-to-drink cocktails; provides that such provisions relating to the direct sale of RTD cocktails shall only apply within the city of New York; provides for the taxation of ready-to-drink cocktails.

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 (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, 54 & 53, ABC L; amd §§420 & 424, Tax L

2025-S6703A (ACTIVE) - Summary

2025-S6703A (ACTIVE) - 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 (ACTIVE) - 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.

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