Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 22-0941.04 Yelana Love x2295
HOUSE BILL 22-1417
House Committees Senate Committees
Business Affairs & Labor
Finance
A BILL FOR AN ACT
C
ONCERNING THE REGULATION OF ALCOHOL BEVERAGES , AND, IN101
CONNECTION THEREWITH , CREATING AN ALCOHOL BEVERAGE102
REGULATION TASK FORCE .103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill creates a task force in the department of revenue to study
the regulation of alcohol beverages. The task force is required to review
the current statutes regulating alcohol beverages and make
recommendations concerning how to modernize, clarify, and harmonize
the statutes. The task force is required to report its findings to the general
HOUSE
Amended 2nd Reading
May 9, 2022
HOUSE SPONSORSHIP
Roberts and Larson,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. assembly by December 1, 2023.
The bill modifies laws governing the licensure of retail liquor
stores and liquor-licensed drugstores and creates the new
beer-and-wine-licensed grocery store license.
With regard to retail liquor store licenses, the bill:
! Removes the requirement that a new retail liquor store must
be located a certain distance from an existing
liquor-licensed drugstore;
! Expands the minimum distance between a new retail liquor
store and other existing retail liquor stores from 1,500 feet
to 3,000 feet;
! Effective January 1, 2024, removes the requirement that
only an employee of the retail liquor store may deliver
alcohol beverages and instead allows delivery by any
person who is authorized by the retail liquor store, subject
to specified requirements including that the licensee or the
authorized deliverer obtain a delivery permit from the state
licensing authority and other requirements specified in state
licensing authority rules; and
! Increases the maximum number of retail liquor store
licenses that a person may own.
With regard to liquor-licensed drugstore licenses, the bill:
! Prohibits the state and local licensing authorities from
issuing new liquor-licensed drugstore licenses after the date
the bill takes effect and repeals provisions related to the
ability of liquor-licensed drugstore licensees to obtain
additional licenses;
! Allows a liquor-licensed drugstore licensed before January
1, 2022, to continue to renew the licensee's license, unless
the license has converted to a beer-and-wine-licensed
grocery store license;
! On January 1, 2026, converts every liquor-licensed
drugstore license in effect on that date to a
beer-and-wine-licensed grocery store license, unless the
licensee chooses to remain a liquor-licensed drugstore, and
eliminates the ability of those licensees that convert to a
beer-and-wine-licensed grocery store license to sell
spirituous liquors; and
! Effective January 1, 2024, removes the requirement that
only an employee of the liquor-licensed drugstore may
deliver alcohol beverages and instead allows delivery by
any person who is authorized by the liquor-licensed
drugstore, subject to specified requirements including that
the licensee or the authorized deliverer obtain a delivery
permit from the state licensing authority and other
1417
-2- requirements specified in state licensing authority rules.
With regard to beer-and-wine-licensed grocery store licenses, the
bill:
! Creates the new license, available on or after January 1,
2026, with requirements similar to the requirements
applicable to liquor-licensed drugstores, to permit a grocery
store that obtains the license to sell beer and wine only;
! Specifies that a beer-and-wine-licensed grocery store
cannot be located within 1,500 feet of a retail liquor store;
! Allows a beer-and-wine-licensed grocery store to deliver
beer and wine to its customers under the same requirements
applicable to retail liquor stores and liquor-licensed
drugstores;
! Allows a beer-and-wine grocery store to own multiple
stores as follows: On and after January 1, 2026, and before
January 1, 2027, a maximum of 8 stores; on and after
January 1, 2027, and before January 1, 2032, a maximum
of 13 stores; on and after January 1, 2032, and before
January 1, 2037, a maximum of 20 stores; and on and after
January 1, 2037, an unlimited number of additional stores;
! Allows a licensee licensed as a liquor-licensed drugstore on
December 31, 2025, whose license converted to a
beer-and-wine-licensed grocery store license on January 1,
2026, to transfer any spirituous liquors in its possession to
a licensee authorized to sell spirituous liquors but prohibits
the licensee from selling spirituous liquors;
! Permits a beer-and-wine-licensed grocery store to offer
tastings on the licensed premises if authorized by the local
licensing authority; and
! Defines "grocery store" as an establishment that generates
at least 20% of its gross annual income from the sale of
food items.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 44-3-108 as2
follows:3
44-3-108. Alcohol beverage regulation task force - legislative4
declaration - creation - membership - duties - report - definitions -5
repeal. (1) (a) T
HE GENERAL ASSEMBLY HEREBY FINDS THAT :6
(I) T
HERE HAS NOT BEEN A BROAD REVIEW OF THE "COLORADO7
1417-3- LIQUOR CODE", THE "COLORADO BEER CODE", ARTICLE 4 OF THIS TITLE1
44,
OR THE OTHER STATUTES REGULATING ALCOHOL BEVERAGES IN2
RECENT HISTORY;3
(II) G
ROWTH IN THE INDUSTRY AND CHANGES IN CONSUMER4
BEHAVIOR, MUCH OF WHICH WAS ACCELERATED BY THE COVID-195
PANDEMIC, HAVE CREATED AN OPPORTUNITY FOR ENHANCED STATUTORY6
CLARITY IN ORDER TO ALLEVIATE CHALLENGES ASSOCIATED WITH7
INTERPRETING AND ENFORCING THE LAWS ;8
(III) A
DDITIONALLY, THE STATUTES REGULATING ALCOHOL9
BEVERAGES HAVE UNDERGONE LEGISLATIVE CHANGES IN RECENT YEARS10
TO ADDRESS SPECIFIC NICHE ISSUES, WHICH CHANGES OFTEN DO NOT TAKE11
INTO ACCOUNT A HOLISTIC VIEW OF THE CODES , AND SIGNIFICANT12
CHANGES ARE CURRENTLY UNDER CONSIDERATION , EITHER THROUGH13
LEGISLATION OR BALLOT INITIATIVE, THAT COULD FURTHER COMPLICATE14
THE STATUTES;15
(IV) T
HE DEPARTMENT HAS NOTED CONSIDERABLE CHALLENGES16
IN STATUTORY APPLICATION GIVEN THE COMPLEXITY , PERCEIVED17
CONTRADICTIONS, AND RAPIDLY EVOLVING MARKETPLACE INNOVATIONS18
THAT HAVE OCCURRED WITHIN THE ALCOHOL BEVERAGE INDUSTRY ; AND19
(V) I
N ORDER TO FACILITATE STATUTORY COMPLIANCE BY20
LICENSEES, IT IS ESSENTIAL THAT THE DEPARTMENT AND THE ALCOHOL21
BEVERAGE INDUSTRY HAVE A CLEAR , LOGICAL, AND TRANSPARENT22
REGULATORY FRAMEWORK THAT ALLOWS FOR UNDERSTANDABLE23
REGULATIONS AND ENFORCEMENT , FOSTERS A STRONG INDUSTRY, AND24
SUPPORTS THE DEPARTMENT 'S GOAL OF PUBLIC SAFETY.25
(b) T
HEREFORE, THE GENERAL ASSEMBLY FINDS THAT A TASK26
FORCE COMPRISED OF A BROAD REPRESENTATION OF INTERESTS WILL27
1417
-4- PROVIDE A FORUM TO CRAFT LEGISLATIVE RECOMMENDATIONS FOCUSED1
ON CLARIFYING AND MODERNIZING THE STATUTES REGULATING ALCOHOL2
BEVERAGES IN A WAY THAT POSITIONS THE STATE OF COLORADO, THE3
DEPARTMENT, AND THE ALCOHOL BEVERAGE INDUSTRY FOR SUCCESS FOR4
DECADES TO COME.5
(2) T
HERE IS HEREBY CREATED IN THE DEPARTMENT THE ALCOHOL6
BEVERAGE REGULATION TASK FORCE , REFERRED TO IN THIS SECTION AS7
THE "TASK FORCE".8
(3) (a) T
HE TASK FORCE CONSISTS OF
THIRTY MEMBERS, ONE OF9
WHOM SHALL BE THE STATE LICENSING AUTHORITY OR THE STATE10
LICENSING AUTHORITY'S DESIGNEE, AND TWENTY-NINE OF WHOM SHALL11
BE APPOINTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT AS12
FOLLOWS:13
(I) O
NE MEMBER REPRESENTING A LARGE BREWERY , AS14
DETERMINED BY THE EXECUTIVE DIRECTOR ;15
(II) O
NE MEMBER REPRESENTING A
SMALL, LOCAL BREWERY, AS16
DETERMINED BY THE EXECUTIVE DIRECTOR ;17
(III) O
NE MEMBER REPRESENTING A LOCAL MANUFACTURER OF18
SPIRITUOUS LIQUORS;19
(IV) O
NE MEMBER REPRESENTING A NATIONAL MANUFACTURER OF20
SPIRITUOUS LIQUORS;21
(V) O
NE MEMBER REPRESENTING A LOCAL MANUFACTURER OF22
VINOUS LIQUORS; 23
(VI) O
NE MEMBER REPRESENTING A NATIONAL MANUFACTURER OF24
VINOUS LIQUORS; 25
(VII) T
WO MEMBERS REPRESENTING LARGE OFF -PREMISES26
RETAILERS;27
1417
-5- (VIII) TWO MEMBERS REPRESENTING MEDIUM OFF -PREMISES1
RETAILERS;2
(IX) T
WO MEMBERS REPRESENTING SMALL OFF -PREMISES3 RETAILERS, ONE OF WHOM MUST REPRESENT A MINORITY-OWNED SMALL4
OFF-PREMISES RETAILER;5
(X) ONE MEMBER REPRESENTING A MINORITY -OWNED6
ON-PREMISES RETAILER; 7
(XI) ONE MEMBER REPRESENTING THE COLORADO MUNICIPAL8
CLERKS ASSOCIATION, OR ITS SUCCESSOR ORGANIZATION.9
(XII) ONE MEMBER REPRESENTING A WHOLESALER OF MALT10
LIQUORS;11
(XIII) ONE MEMBER REPRESENTING A WHOLESALER OF VINOUS12
AND SPIRITUOUS LIQUORS;13
(XIV) ONE MEMBER REPRESENTING A WHOLESALER OF ANY TYPE14
OF ALCOHOL BEVERAGE WITH EXPERIENCE SELLING TO AND SERVICING A15
NATIONAL CHAIN ACCOUNT ;16
(XV) ONE MEMBER REPRESENTING THE HARD CIDER INDUSTRY ;17
(XVI) TWO MEMBERS REPRESENTING RESTAURANTS ;18
(XVII) TWO MEMBERS REPRESENTING TAVERNS ;19
(XVIII) ONE MEMBER REPRESENTING AN ARTS LICENSEE;20
(XIX) ONE REPRESENTATIVE FROM MOTHERS AGAINST DRUNK21
D
RIVING, OR ITS SUCCESSOR ORGANIZATION;22(XX) ONE REPRESENTATIVE FROM COLORADO COUNTIES, INC., OR23
ITS SUCCESSOR ORGANIZATION;24
(XXI) ONE REPRESENTATIVE FROM THE COLORADO MUNICIPAL25
L
EAGUE, OR ITS SUCCESSOR ORGANIZATION;26(XXII) ONE REPRESENTATIVE FROM THE COLORADO STATE27
1417
-6- PATROL;1
(XXIII) ONE REPRESENTATIVE FROM THE COLORADO2
A
SSOCIATION OF CHIEFS OF POLICE; AND3 (XXIV) ONE REPRESENTATIVE FROM COUNTY SHERIFFS OF4
C
OLORADO.5 (b) IN MAKING THE APPOINTMENTS PURSUANT TO SUBSECTION6
(3)(a) OF THIS SECTION, THE EXECUTIVE DIRECTOR SHALL MAKE EVERY7
REASONABLE EFFORT TO ENSURE THAT THE RACIAL AND ETHNIC MAKEUP8
OF THE TASK FORCE IS REFLECTIVE OF THE DEMOGRAPHY OF THE STATE .9
(c) AS USED IN THIS SUBSECTION (3), FOR THE PURPOSES OF10
MAKING APPOINTMENTS PURSUANT TO THIS SUBSECTION (3):11
(I) "L
ARGE" MEANS A LICENSEE THAT HAS THREE OR MORE12
LICENSED PREMISES IN THE STATE OR THAT EMPLOYS ONE HUNDRED OR13
MORE EMPLOYEES;14
(II) "M
EDIUM" MEANS A LICENSEE THAT HAS AT LEAST TWO15
LICENSED PREMISES IN THE STATE OR THAT EMPLOYS AT LEAST FIFTY AND16
NO MORE THAN NINETY-NINE EMPLOYEES;
AND17
18
(III) "SMALL" MEANS A LICENSEE THAT HAS NO MORE THAN ONE19
LICENSED PREMISES IN THE STATE OR THAT EMPLOYEES FEWER THAN FIFTY20
EMPLOYEES.21
(4) A
LL MEMBERS APPOINTED PURSUANT TO
SUBSECTIONS (3)(a)(I)22
TO (3)(a)(XVIII) OF THIS SECTION MUST BE A PRINCIPAL OR EMPLOYEE OF23
A BUSINESS WITHIN THE SPECIFIC INDUSTRY INTEREST THE MEMBER24
REPRESENTS AND HAVE DEMONSTRABLE, DIRECT EXPERIENCE WORKING25
WITHIN THE SPECIFIC INDUSTRY INTERESTS THE MEMBER REPRESENTS,26
WHICH EXPERIENCE MUST NOT BE SOLELY IN AN ADVOCACY POSITION FOR27
1417
-7- THOSE INDUSTRY INTERESTS.1
(5) (a) E
ACH MEMBER OF THE TASK FORCE APPOINTED PURSUANT2
TO SUBSECTION (3)(a) OF THIS SECTION SERVES:3
(I)
AT THE PLEASURE OF THE OFFICIAL WHO APPOINTED THE4
MEMBER; AND5
(II)
WITHOUT COMPENSATION AND WITHOUT REIMBURSEMENT FOR6
EXPENSES.7
(b) A
N APPOINTED TASK FORCE MEMBER MAY DESIGNATE ONE8
OTHER PERSON
WHO IS A PRINCIPAL OR EMPLOYEE OF A BUSINESS WITHIN9
THE SPECIFIC INDUSTRY INTEREST THE MEMBER REPRESENTS WHO IS10
AUTHORIZED TO ACT IN THE MEMBER 'S ABSENCE BY PROXY, AND THE11
PROXY MAY PERFORM ALL DUTIES IN THE TASK FORCE MEMBER 'S ABSENCE,12
INCLUDING ATTENDING MEETINGS AND VOTING .13
(6) (a) T
HE STATE LICENSING AUTHORITY SHALL ORGANIZE AND14
CALL THE FIRST MEETING OF THE TASK FORCE, TO BE HELD NO LATER THAN15
J
ULY 31, 2022.16
(b) T
HE TASK FORCE SHALL ELECT A CHAIR FROM AMONG ITS17
MEMBERS.18
(c) T
HE TASK FORCE SHALL MEET AT LEAST ONCE EVERY MONTH .19
T
HE CHAIR MAY CALL ADDITIONAL MEETINGS AS NECESSARY FOR THE20
TASK FORCE TO COMPLETE ITS DUTIES.21
(7) T
HE STATE LICENSING AUTHORITY MAY SUBMIT A REQUEST FOR22
PROPOSALS AND HIRE AN OUTSIDE FACILITATOR FOR THE PURPOSE OF23
PROVIDING SUPPORT FOR THE TASK FORCE , GENERATING THE REPORT24
REQUIRED IN SUBSECTION (9) OF THIS SECTION, AND ANY OTHER DUTIES25
ASSIGNED BY THE EXECUTIVE DIRECTOR .26
(8) (a) F
OR THE PURPOSE OF MAKING RECOMMENDATIONS TO THE27
1417
-8- GENERAL ASSEMBLY CONCERNING HOW TO MODERNIZE , CLARIFY, AND1
HARMONIZE THE "COLORADO LIQUOR CODE", THE "COLORADO BEER2
C
ODE", ARTICLE 4 OF THIS TITLE 44, AND OTHER STATUTES REGULATING3
ALCOHOL BEVERAGES, THE TASK FORCE SHALL REVIEW:4
(I) T
HE STATUTES REGULATING ALCOHOL BEVERAGES , CURRENT5
MARKET TRENDS , AND LAWS AND REGULATIONS FROM OTHER6
JURISDICTIONS;7
(II) R
EPORTS AND RECOMMENDATIONS FROM GOVERNING BODIES ,8
INCLUDING THE UNITED STATES DEPARTMENT OF TREASURY REPORT9
ENTITLED "COMPETITION IN THE MARKETS FOR BEER, WINE, AND10
S
PIRITS", DATED FEBRUARY 9, 2022; AND11
(III) A
NY OTHER MATERIALS DEEMED APPROPRIATE BY THE TASK12
FORCE TO CONSIDER.13
(b) A
S THE TASK FORCE MAKES ITS RECOMMENDATIONS , IT SHALL14
CONSIDER THE FOLLOWING GUIDING PRINCIPLES :15
(I) S
AFEGUARDING THE INTERESTS AND RIGHTS OF CONSUMERS16
THROUGH CONSUMER PROTECTION MEASURES ;17
(II) P
ROTECTING THE GENERAL PUBLIC THROUGH PUBLIC SAFETY18
MEASURES;19
(III) P
ROMOTING A
FAIR, ETHNICALLY AND RACIALLY DIVERSE,20
INDEPENDENT, AND OPEN MARKETPLACE:21
(A) I
N WHICH PRICE IS REFLECTIVE OF SUPPLY AND DEMAND22
TRENDS AND ESTABLISHED ECONOMIC PRINCIPLES ; AND23
(B) T
HAT LIMITS BARRIERS TO ENTRY INTO AND EXIT FROM THE24
ALCOHOL BEVERAGE MARKETPLACE ; AND25
(IV) H
OW ANY RECOMMENDATIONS MAY INTERACT WITH OR26
AFFECT OTHER JURISDICTIONS THAT HAVE RESPONSIBILITY FOR THE27
1417
-9- REGULATION OF ALCOHOL BEVERAGES .1
(c) T
HE TASK FORCE MAY CREATE SUBCOMMITTEES TO CARRY OUT2
ITS DUTIES UNDER THIS SUBSECTION (8).3
(9) (a) O
N OR BEFORE DECEMBER 1, 2023, THE TASK FORCE SHALL4
REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE BUSINESS AFFAIRS5
AND LABOR COMMI TTEE OF THE HOUSE OF REPRESENTATIVES AND THE6
BUSINESS, LABOR, AND TECHNOLOGY COMMITTEE OF THE SENATE , OR ANY7
SUCCESSOR COMMITTEES. THE REPORT MUST INCLUDE:8
(I) A
NY AGREED-UPON LEGISLATIVE OR ADMINISTRATIVE9
RECOMMENDATIONS ; AND10
(II) A
SYNOPSIS OF DISSENTING VOTES, IF ANY, AND REASONS FOR11
THE DISSENTING VOTES , IF AVAILABLE, REGARDING ANY REPORT12
RECOMMENDATIONS THAT ARE NOT UNANIMOUS .13
(b) A
S USED IN SUBSECTION (9)(a)(I) OF THIS SECTION,14
"
AGREED-UPON" MEANS A SIMPLE MAJORITY OF TASK FORCE MEMBERS15
PRESENT, UNLESS THE TASK FORCE, AT ITS INITIAL MEETING, DETERMINES16
DIFFERENT PARAMETERS FOR WHAT CONSTITUTES AN "AGREED-UPON"17
RECOMMENDATION .18
(10) T
HIS SECTION IS REPEALED, EFFECTIVE MAY 1, 2024.19
20
SECTION 2. Safety clause. The general assembly hereby finds,21
determines, and declares that this act is necessary for the immediate22
preservation of the public peace, health, or safety.23
1417
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