Marijuana Moment: New York Liquor Stores Could Sell Low-THC Cannabis Beverages Under Newly Filed Bills

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New York liquor and wine stores would be able to obtain a permit to sell low-dose cannabis-infused drinks at their businesses under a newly introduced pair of bills.

Sen. Jeremy Cooney (D) and Assemblymember John Zaccaro, Jr. (D) filed companion versions of the legislation in their respective chambers this past week, with the intent being to build upon the state’s maturing cannabis market.

That market “continues to evolve, and consumer demand for low-dose, beverage-based cannabis products has increased significantly,” a justification memo attached to the proposal says. “These products are typically lower potency and consumed in a manner similar to other regulated beverages, making them appropriate 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 activity, and provide a clear, enforceable pathway for responsible retail sales,” it says. “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 Senate bill, S9220, has been referred to the Investigations and Government Operations Committee, while the Assembly version, A10191, is heading to the Economic Development Committee.

The legislation “supports small businesses and social and economic equity applicants by dedicating a portion of revenues to loans, grants, technical assistance, and enforcement against illicit operators,” and it also provides for revenue sharing with municipalities in a way that “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,” the justification memo concludes.

Under the proposal, alcohol shops that obtain a low potency cannabis beverage retail permit from the New York State Liquor Authority would be able to sell cannabis drinks in single-use containers and containing no more than 5 milligrams of total THC.

Regulators would be tasked with determining the annual fee to maintain the cannabis permit, which would need to be held concurrently with the business’s alcohol sales license.

All low potency cannabis beverages shall be maintained in a separate and distinct area of the licensed premises from alcoholic beverages, clearly marked by signage as required by the authority,” the bill says. “Low potency cannabis beverage retail permittees shall maintain inventory records of all low potency cannabis beverages acquired, in the possession of the permittee, and sold using a software system determined by” the Office of Cannabis Management (OCM).

The legislation would also impose a 9 percent tax on the sale or transfer of low-potency cannabis drinks from distributors to permit holders, and there would also be a 13 percent tax on the sale of those beverages at the point of purchase by consumers. Tax revenue would cover administrative costs, social equity initiatives such as technical assistance, enforcement operations targeting the illicit cannabis market and local governments where the permit holders operate.

Meanwhile, the governor of New York this month signed legislation into law that revises zoning requirements for licensed marijuana businesses, granting more flexibility to retailers located within certain distances of schools and places of worship.
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Last month, New York officials released a set of reports providing a 2025 end-of-year status update on the evolution of the state’s medical and adult-use marijuana markets—touting record sales, revenue hauls for state coffers, licensing approvals, equity initiatives and more.

All told, retail cannabis sales in New York have exceeded $2.5 billion since the passage of recreational legalization, including $1.6 billion that was generated last year alone as of November. Also, licensed storefronts nearly doubled from 261 in 2024 to 556 in 2025.

The OCM annual report also notes that Hochul signed legislation into law that expands the state’s medical cannabis program by improving patient access and “updating the program framework to better meet patient needs statewide.”

The legislation the governor signed also grants reciprocity to out-of-state residents, streamlines the patient certification process and allows adults 18 and older to grow their own cannabis plants for therapeutic use.

Separately, given confusion within the marketplace about timelines for provisional licenses, regulators said they will be extending the renewal deadline for conditional adult-use until December 31, 2026.

“This extension provides licensees additional time to secure viable locations and move toward full licensure,” OCM said. “It will also apply to any provisional licenses issued between September 9, 2025, and December 30, 2025, ensuring clarity and consistency for all provisional license holders.”

Last July, meanwhile, New York officials announced the first round of grants under a $5 million program to help retail marijuana businesses owned by justice-involved people cover startup costs.

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