An Overdue Expansion: New Off Premise Allowances in New York State

Rachel L. Wright, Esq., Buffalo, New York

On June 7, 2025, the New York State Legislature passed Senate Bill S7909 / Assembly Bill A8547, marking a pivotal shift in New York's Alcoholic Beverage Control Laws. If signed by Governor Kathy Hochul, this bill will amend Section 63(5) of the Alcoholic Beverage Control Law to permit a person or entity to hold up to two off-premises retail licenses, expanding an outdated and restrictive law that only allows the capacity to hold one.

This change ends a restriction in place since the post-Prohibition era and signals a significant modernization of how New York regulates retail alcohol sales. The reform could transform the landscape for independent retailers and consumers alike, promoting greater access, flexibility, and competition across the state.

What the Statute Says

Senate Bill S7909, introduced by Senator James Skoufis, amends Alcoholic Beverage Control Law § 63(5) as follows:

“Not more than [one license] two licenses shall be granted to any person under this section.”

The amendment will become effective immediately after the Governor signs it, with no delay in implementation. This allows qualified applicants to start applying for a second off-premises license as soon as the law is enacted.

The legislation passed with overwhelming bipartisan support, receiving a 9–0 vote in the Senate Commerce Committee and near-unanimous approval in the full Legislature. It follows a recommendation from the 2023 Commission to Study Reform of the Alcoholic Beverage Control Law.

Historical Context: A Post-Prohibition Legacy Ends

Since the 1930s, New York has limited off-premises retail licensees (liquor and wine stores) to a single license per person or entity. This was originally intended to prevent vertical integration by producers and distributor and avoid excessive market consolidation or monopolies with the intention of encouraging local ownership and community control.

While these goals remain relevant, the single-license rule has long been criticized as outdated and anti-competitive, particularly in light of how other license types (restaurants, breweries, even cannabis dispensaries) are treated. No other class of alcohol license has faced this restrictive covenant.

Implications for Off-Premises Operators

For existing liquor store owners, the change opens the door to growth and expansion:

• Growth Without Entity Complexity: Previously, opening a second location required a new legal entity, often with separate ownership or complex compliance structures. Now, a licensee can apply directly for a second store.

• Market Footprint Expansion: Particularly in high-demand or underserved areas, operators can now meet consumer demand without navigating artificial regulatory hurdles.

• Competitive Equity: This levels the playing field with on-premises operators, such as restaurants and bars, who can already hold multiple licenses across the state.

From a compliance perspective, existing rules for retail license applicants—including local community board notice, zoning review, and SLA scrutiny—will continue to apply. The law does not waive or streamline any procedural steps; it merely removes the statutory cap.

Implications for Consumers

From the consumer standpoint, this reform is likely to generate several positive effects. It will generate greater retail access, particularly in rural areas where liquor stores are sparce. This expanded retail licensing may increase availability.

Retail competition will likely lead to competitive pricing and more diverse inventory options. Finally, as retailers grow, unique and boutique concepts will drive the market toward innovative retail experiences.

Looking Ahead: Regulatory and Practical Considerations

While the law is self-executing, the State Liquor Authority (SLA) will likely issue clarifying guidance in the weeks following enactment, including:

• Updated application forms for dual-license ownership

• Guidance on shared staffing, inventory controls, and recordkeeping across locations

• Clarification on how "person" is interpreted in closely held or multi-member entities

Operators should also consider how the expanded license framework interacts with municipal zoning and applicable saturation laws, distance limitations between stores or proximity to schools and places of worship, potential pushback from community groups.

New York’s decision to expand off-premises licensing is more than a procedural update—it is a foundational shift in how the state views alcohol retailing. By aligning regulations with modern business realities, the Legislature is supporting small business growth, consumer access, and regulatory clarity.

As legal practitioners, we encourage clients to carefully evaluate whether dual licensing fits their operational model and to monitor for SLA rulemaking updates.

Thinking about branching out? Shoot me an email (Wright@RuppPfalzgraf.com).