BILL NUMBER: S9220
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the cannabis law and the alcoholic beverage control law,
in relation to the issuance of a low potency cannabis beverage retail
permit; to amend the tax law, in relation to the imposition of tax on
the sale or transfer of certain low potency cannabis beverages; and to
amend the state finance law, in relation to the allocation of low poten-
cy cannabis beverage tax revenue in the New York state cannabis revenue
fund
 
PURPOSE:
The purpose of this bill is to allow licensed off-premises alcohol
retailers to obtain a permit to sell low potency cannabis beverages,
imposing appropriate taxes and directing revenues.
 
SUMMARY OF PROVISIONS:
Section 1 amends the cannabis law to authorize licensed distributors to
sell cannabis products to businesses licensed under the alcoholic bever-
age control law that are permitted to sell low potency cannabis beverag-
es.
Section 2 clarifies that retail cannabis sales remain limited to
licensed dispensaries except where otherwise provided for low potency
cannabis beverages.
Section 3 defines "low potency cannabis beverage" as a single-use bever-
age container containing no more than five milligrams of total THC.
Section 4 amends the alcoholic beverage control law to allow certain
retail liquor licensees to sell low potency cannabis beverages and clar-
ifies that such sales do not constitute engaging in another business on
the licensed premises.
Section 5 creates a new section 63-b of the alcoholic beverage control
law establishing a cannabis beverage retail permit.
Section 6 adds a parallel definition of low potency cannabis beverages
to the alcoholic beverage control law.
Section 7 updates tied-house restrictions to include cannabis interests.
Section 8 permits alcoholic beverage retailers to sell only low potency
cannabis beverages, while continuing to prohibit broader cannabis sales
on the same premises.
Section 9 imposes new taxes on low potency cannabis beverages, includ-
ing:
* A nine percent tax on
* A thirteen percent tax on retail sales to consumers.
Section 10 allocates revenues from the retail tax to the State Liquor
Authority, the Office of Cannabis Management (including social and
economic equity programs and enforcement), local municipalities, and the
state cannabis revenue fund.
Section 11 makes conforming amendments to revenue distribution
provisions.
Section 12 sets the effective date as 180 days after enactment and
authorizes necessary regulatory implementation in advance.
 
JUSTIFICATION:
New York's adult-use cannabis market continues to evolve, and consumer
demand for low-dose, beverage-based cannabis products has increased
significantly. These products are typically lower potency and consumed
in a manner similar to other regulated beverages, making them appropri-
ate for sale in controlled retail environments with strong compliance
histories.
Allowing existing off-premises alcohol retailers to sell low potency
cannabis beverages through a carefully structured permit system will
expand legal access to regulated products, reduce illicit market activ-
ity, and provide a clear, enforceable pathway for responsible retail
sales. By limiting eligibility to established licensees and requiring
separate storage, tracking, and enforcement coordination, the bill
preserves public health and safety while ensuring strong regulatory
oversight.
The measure also supports small businesses and social and economic equi-
ty applicants by dedicating a portion of revenues to loans, grants,
technical assistance, and enforcement against illicit operators. Addi-
tionally, revenue sharing with municipalities recognizes the local role
in hosting and regulating these sales.
This targeted approach balances consumer access, economic opportunity,
and public safety while maintaining the integrity of New York's cannabis
and alcohol regulatory frameworks.
 
LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
This bill is expected to generate new revenue through the imposition of
distributor and retail taxes.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law, with immediate authorization for rulemaking and
implementation activities.

Statutes affected:
S9220: 71 cannabis law, 71(1) cannabis law, 72 cannabis law, 72(1) cannabis law, 3 cannabis law, 3 alcoholic beverage control law, 105 alcoholic beverage control law, 105(16) alcoholic beverage control law, 102 alcoholic beverage control law, 102(8) alcoholic beverage control law, 493 tax law, 99-ii state finance law, 99-ii(4) state finance law