BILL NUMBER: S9032
SPONSOR: SEPULVEDA
 
TITLE OF BILL:
An act to amend the alcoholic beverage control law, in relation to
applications for licenses to sell liquor and wine at grocery stores
 
PURPOSE OR GENERAL IDEA OF BILL:
To allow grocery stores to sell wine and liquor.
 
SUMMARY OF PROVISIONS:
Section one and two remove the current prohibitions on grocery stores,
which shall include bodegas per ABCL § 3(13), selling liquor and wine
respectively. Section three allows existing grocery stores to be grand-
fathered into the 200-foot rule which prohibits liquor stores from being
located near schools and places of worship and removes the prohibition
on an individual holding more than one license to sell liquor or wine.
Section four provides for an effective date of January 1, 2026.
 
JUSTIFICATION:
The current prohibition on grocery stores selling wine and liquor is a
relic of the Prohibition era. Originally intended to combat corruption,
this outdated rule now only serves to require New Yorkers to make multi-
ple stops at different stores while buying their food and beverages for
the week. Across the United States, roughly 20 states authorize grocery
stores to sell beer, wine, and liquor, ranging from large states includ-
ing California and Illinois to our Northeast neighbors like Massachu-
setts and Maine. However, New York has yet to modernize its archaic
liquor laws and give consumers the convenience and choice they deserve,
despite widespread public support.
In addition to its benefits for consumers, this legislation would help
address a concerning lag in revenue for our state's vineyards and winer-
ies. It would also boost New York's growing craft spirits industry. Our
state's distilleries are a crucial economic engine, particularly in
Upstate New York, and produce a halo effect of positive benefits to our
agriculture and manufacturing businesses.
This legislation will also help small businesses by allowing small- and
midsized outlets to sell wine and spirits, in addition to large retail
chains. Data from other states demonstrates that this bill will not harm
New York's liquor stores, which provide specialized products and superi-
or customer service and will continue to play a major role in the
state's retail economy. In fact, liquor stores continue to thrive post-
COVID in states that allow grocery stores to sell wine and liquor. For
example, in South Carolina, where consumers can purchase beer, wine, and
liquor from grocery stores, the number of liquor stores per capita
increased by 16% from 2020 to 2023.
Grocery retailers can already sell New York wine and spirits in other
states. These stores-from major chains to small, independent outlets-
want the option to sell our homegrown products to New York-based custom-
ers as well. This common-sense change would dramatically improve the
experience of hardworking consumers and create new markets for New
York's wine and spirits producers.
By adopting this legislation, New York takes a significant step toward
enhancing consumer convenience, supporting local businesses, and modern-
izing its alcohol regulations.
 
PRIOR LEGISLATIVE HISTORY:
New Bill - Introduced in the 2025 Legislative Session.
 
FISCAL IMPLICATIONS:
None to the State.
 
EFFECTIVE DATE:
January 1, 2026.

Statutes affected:
S9032: 63 alcoholic beverage control law, 79 alcoholic beverage control law