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.

Statutes affected:
S6703: 3 alcoholic beverage control law, 54 alcoholic beverage control law, 420 tax law, 424 tax law, 424(1) tax law, 53 alcoholic beverage control law
S6703A: 3 alcoholic beverage control law, 54 alcoholic beverage control law, 62 alcoholic beverage control law, 63 alcoholic beverage control law, 420 tax law, 424 tax law, 424(1) tax law, 53 alcoholic beverage control law
S6703B: 3 alcoholic beverage control law