On December 5, 2025, New York State enacted legislation (New York Senate Bill S409-A, the Act) amending the Alcoholic Beverage Control (ABC) Law to permit limited retail-to-retail sales of wine and liquor between off-premises and on-premises licensees. Previously, on-premises licensees were required under the ABC Law to purchase product exclusively from licensed wholesalers; however, this framework offered little practical flexibility when operators encountered short-term inventory gaps. The Act creates a narrowly tailored exception intended to accommodate limited, time-sensitive needs while preserving the state’s traditional three-tier framework and providing added flexibility for bars and restaurants facing short-term inventory gaps.
Key Provisions
- On-premises licensees may now buy up to six bottles per week – Restaurants, bars, and other establishments holding an on-premises license can purchase up to six bottles of wine or liquor in the aggregate per week from licensed off-premises retailers for resale for on-premises consumption.
- Off-premises retailers may sell the same limited quantity – Liquor and wine stores are authorized to sell up to six bottles per week to each on-premises licensee.
- Mandatory receipt retention – Both parties must keep a receipt identifying the retailer, date of purchase, product description, and price and must make it available to the State Liquor Authority (SLA) upon request.
- Effective date – The Act takes effect 90 days after becoming law—March 5, 2026. Additionally, the Act authorizes the SLA to adopt any necessary regulations beforehand in order to implement retail-to-retail sales.
What This Means for Licensees
This limited exception provides on-premises operators with a lawful stopgap when distributor deliveries fall through. Off-premises retailers may see additional neighborhood demand, while all licensees should monitor weekly limits and maintain required documentation to ensure SLA compliance.
If you have questions about how this change may affect your operations or compliance strategy, Barclay Damon’s Hotels, Hospitality & Food Service Team is available to assist. We counsel hotels, restaurants, bars, breweries, distilleries, entertainment venues, and other industry operators on all aspects of New York State liquor licensing, including new applications, corporate changes, alterations, additional bars, renewals, and disciplinary matters before the SLA. Our integrated, multidisciplinary team also supports clients with regulatory compliance, municipal approvals, real estate and financing needs, brand protection, labor and employment issues, business-risk mitigation, and representation before applicable agencies and regulatory boards.
If you have any questions regarding the content of this alert, please contact Corey Auerbach, partner, at cauerbach@barclaydamon.com; David Solimeno, associate, at dsolimeno@barclaydamon.com; or another member of the firm’s Hotels, Hospitality & Food Service Team.