ALBANY, N.Y. — State lawmakers renewed efforts this week to overhaul New York’s nearly century-old alcohol laws, introducing amendments that would permit wine sales in grocery stores and expand retail opportunities for liquor store owners, with just over two weeks remaining in the legislative session.
The amended bill, sponsored by Senate Finance Committee Chair Liz Krueger, seeks to allow grocery stores of at least 4,000 square feet to apply for licenses to sell wine—lowering the threshold from the previously proposed 5,000 square feet. The measure also offers tax incentives to grocers that stock New York-made wines and includes a stipulation preventing grocery stores and liquor stores from operating within 500 feet of each other.
“We’re trying to support New York wineries to expand and to sell,” Krueger said, emphasizing the economic benefits for local producers. “And we’re giving food stores who choose to put New York wine on their shelves a tax incentive for doing that.”
New York remains one of just 10 states that still prohibits wine sales in supermarkets. A 2023 Siena College poll showed three-quarters of New Yorkers support lifting that restriction. Despite the public backing, the proposal continues to face stiff resistance from large alcohol distributors and some liquor store owners.
Krueger acknowledged the time constraints and political obstacles but remained cautiously optimistic: “It’s still possible, but it’s probably not. But I would love to say we could get it done.”
In tandem with the grocery wine sales proposal, lawmakers are also considering two additional measures aimed at modernizing the state’s Alcoholic Beverage Control (ABC) laws. Senator James Skoufis, chair of the Investigations and Government Operations Committee, is championing both bills.
One bill would permit restaurants and taverns to purchase up to 12 bottles of liquor per week directly from retail liquor stores, bypassing the delay associated with weekly distributor deliveries. Advocates say the measure would help small businesses avoid inventory shortages during peak hours.
“If you run out of an important liquor over the weekend, this way you can go to a store, buy what you need, and continue serving customers,” said Sandra Jaquez, president of the New York State Latino Restaurant Bar & Lounge Association and owner of Il Sole restaurant in Manhattan.
Although the bill has repeatedly cleared the Senate, it continues to stall in the Assembly due to pressure from wholesalers, who argue the legislation threatens their market share.
“We face barriers from two large companies that dominate the current system,” Skoufis said. “They don’t want it to change because they make a lot of money from the status quo.”
A third bill, also advanced in the Senate this week, would amend a provision of state law unchanged since the Prohibition era, allowing individuals to hold more than one retail liquor license. Currently, New York law restricts ownership to a single retail license per person.
Assemblymember Brian Cunningham, who sponsors the companion bill, said the proposal would encourage economic development by enabling liquor store owners to expand their businesses.
“Current law prevents them from growing,” said Cunningham, a Democrat from Brooklyn. “This has less to do with liquor and more to do with economic development and job creation in New York.”
In 2023, a state commission recommended 18 updates to the ABC laws, including the expansion of retail licenses and permission for retail-to-retail alcohol sales. However, the commission notably excluded wine sales in grocery stores from its recommendations.
The State Liquor Authority (SLA) has not taken a public stance on any of the pending legislation, in keeping with its policy of neutrality on bills under legislative consideration.
With session days dwindling, lawmakers are under pressure to resolve longstanding debates and deliver reforms that proponents argue are long overdue.
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