What This Page Covers

• Whether THC drinks can currently be sold in liquor stores
• What Senate Bill S9220 proposes
• Definition of a low potency cannabis beverage
• Who could qualify for the retail permit
• Operational and compliance requirements
• Tax structure under the bill
• Revenue allocation framework
• Enforcement authority and penalties
• Impact on dispensaries and beverage manufacturers
• Legislative status and effective date

Current Law: Can Liquor Stores Sell THC Drinks in NY?

No.

Under Cannabis Law §72, no person may sell cannabis at retail without a retail dispensary license, except as otherwise authorized by law.

Liquor stores licensed under ABC Law §63 may sell alcohol for off-premises consumption but may not sell cannabis products.

Senate Bill S9220 proposes creating a limited exception for certain low potency beverages.

What Senate Bill S9220 Proposes

Senate Bill S9220 would:

1. Authorize the State Liquor Authority (SLA) to issue a Low Potency Cannabis Beverage Retail Permit.
2. Allow permit holders to sell specific cannabis beverages for off-premises consumption.
3. Create new tax provisions applicable to these beverages.
4. Establish revenue distribution rules for the 13% retail tax.
5. Require coordinated enforcement between the SLA and the Office of Cannabis Management (OCM).

The bill does not authorize liquor stores to sell flower, vapes, edibles, concentrates, or high-potency cannabis beverages.

Definition: What Is a Low Potency Cannabis Beverage?

The bill adds a new definition to Cannabis Law §3:

A “low potency cannabis beverage” means a single-use beverage container that contains no more than five milligrams of total THC.

Key elements:

• Single-use container
• Manufactured at a premises licensed under Article 4 of the Cannabis Law
• Maximum 5mg total THC per container

The 5mg cap applies to the total THC in the container, not per serving.

Products exceeding 5mg THC would remain restricted to licensed retail dispensaries.

Who Could Obtain the Permit?

Only holders of a retail liquor license under ABC Law §63 (off-premises liquor stores) may apply.

The permit:

• Is issued by the State Liquor Authority
• Runs concurrently with the underlying liquor license
• Must be renewed at the same time as the liquor license
• Automatically terminates if the liquor license is revoked, suspended, or cancelled

This is not a cannabis dispensary license. It is an additional permit attached to an existing liquor license.

Exception to the Retail Dispensary Requirement

Cannabis Law §72 currently prohibits retail cannabis sales without a retail dispensary license.

The bill creates a narrow exception:

Low potency cannabis beverages may be sold by holders of the proposed permit under new ABC Law §63-b.

All other cannabis product types would remain dispensary-only.

Operational Requirements for Permit Holders

If enacted, permit holders must comply with the following:

Separate Storage and Display

Low potency cannabis beverages must be maintained in a separate and distinct area of the licensed premises from alcoholic beverages and clearly marked by signage as required by the Authority.

Inventory Recordkeeping

Permit holders must maintain inventory records of:

• All beverages acquired
• All beverages in possession
• All beverages sold

Inventory must be maintained using a software system determined by the Office of Cannabis Management.

Age Restrictions

No permittee may sell, deliver, or give low potency cannabis beverages to anyone under 21 years of age.

An affirmative defense applies if the seller reasonably relied on government-issued photographic identification consistent with ABC Law §65-b.

A violation of age restrictions is treated as a violation of ABC Law §65 for administrative enforcement proceedings.

Tax Structure Under Senate Bill S9220

The bill establishes two specific tax layers for low potency cannabis beverages.

Distributor-Level Tax (9%)

A 9% tax is imposed on the sale or transfer of low potency cannabis beverages by a distributor to a cannabis beverage retail permit holder.

Retail-Level Tax (13%)

A 13% tax is imposed on the retail sale of low potency cannabis beverages by the permit holder to the consumer.

These taxes are specific to low potency cannabis beverages sold under this permit framework.

Allocation of the 13% Retail Tax

Under the proposed amendment to State Finance Law §99-ii, the 13% retail tax would be distributed as follows:

• 1% to the State Liquor Authority for implementation and enforcement
• 2% to the Cannabis Revenue Fund for loans, grants, and technical assistance
• 2% to the Cannabis Revenue Fund for trade practice oversight and illicit enforcement
• 4% to the local municipality where the sale occurred
• 4% to the New York State Cannabis Revenue Fund for general purposes

This allocation is distinct from the standard adult-use cannabis tax distribution.

Enforcement Structure

The bill requires the State Liquor Authority and the Office of Cannabis Management to enter into a Memorandum of Understanding to coordinate inspection and enforcement.

This creates a shared regulatory structure between:

• The State Liquor Authority (alcohol regulator)
• The Office of Cannabis Management (cannabis regulator)

Age violations would be enforced under the same framework as alcohol violations.

Impact on Dispensaries and Beverage Manufacturers

If enacted, the bill would:

• Expand retail availability of 5mg THC beverages beyond licensed dispensaries
• Allow liquor stores to enter the low-dose cannabis beverage market
• Increase competition within the beverage category

However:

• Higher-potency beverages remain dispensary-exclusive
• Non-beverage cannabis products remain dispensary-exclusive
• Manufacturing must still occur through licensed cannabis entities

The primary impact would be on the low-dose beverage segment.

Legislative Status

• Bill Number: S9220
• Sponsor: Senator Jeremy Cooney
• Introduced: February 17, 2026
• Committee: Senate Investigations and Government Operations
• Status: Active (not enacted)

The bill would take effect 180 days after becoming law.

As of this writing, it is not law.

Frequently Asked Questions (FAQ)

Can you buy THC drinks at a liquor store in New York right now?

No. Liquor stores may not currently sell cannabis beverages.

What is the THC limit under Senate Bill S9220?

The beverage must contain no more than 5mg total THC per single-use container.

Would liquor stores need a cannabis license?

They would need a Low Potency Cannabis Beverage Retail Permit issued by the State Liquor Authority in addition to their liquor license.

Can liquor stores sell other cannabis products under this bill?

No. The bill applies only to low potency cannabis beverages as defined.

Is Senate Bill S9220 law?

No. It has been introduced but has not been enacted.

Source Material

• New York State Senate Bill S9220 (2025–2026 Legislative Session)
• Proposed amendments to Tax Law §493
• Proposed amendments to State Finance Law §99-ii

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