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Colorado House Bill HB1417

Colorado 2022 Regular Session

Colorado House Bill HB1417 Compare Versions

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11 Second Regular Session
22 Seventy-third General Assembly
33 STATE OF COLORADO
4-REENGROSSED
5-This Version Includes All Amendments
6-Adopted in the House of Introduction
4+ENGROSSED
5+This Version Includes All Amendments Adopted
6+on Second Reading in the House of Introduction
77 LLS NO. 22-0941.04 Yelana Love x2295
88 HOUSE BILL 22-1417
99 House Committees Senate Committees
1010 Business Affairs & Labor
1111 Finance
1212 A BILL FOR AN ACT
1313 C
1414 ONCERNING THE REGULATION OF ALCOHOL BEVERAGES , AND, IN101
1515 CONNECTION THEREWITH , CREATING AN ALCOHOL BEVERAGE102
1616 REGULATION TASK FORCE .103
1717 Bill Summary
1818 (Note: This summary applies to this bill as introduced and does
1919 not reflect any amendments that may be subsequently adopted. If this bill
2020 passes third reading in the house of introduction, a bill summary that
2121 applies to the reengrossed version of this bill will be available at
2222 http://leg.colorado.gov
2323 .)
2424 The bill creates a task force in the department of revenue to study
2525 the regulation of alcohol beverages. The task force is required to review
2626 the current statutes regulating alcohol beverages and make
2727 recommendations concerning how to modernize, clarify, and harmonize
2828 the statutes. The task force is required to report its findings to the general
2929 HOUSE
30-3rd Reading Unamended
31-May 10, 2022
32-HOUSE
3330 Amended 2nd Reading
3431 May 9, 2022
3532 HOUSE SPONSORSHIP
36-Roberts and Larson, Bird, Lindsay, McCluskie, Mullica, Ricks, Snyder, Valdez D.
33+Roberts and Larson,
3734 SENATE SPONSORSHIP
38-Rodriguez,
35+(None),
3936 Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
4037 Capital letters or bold & italic numbers indicate new material to be added to existing statute.
4138 Dashes through the words indicate deletions from existing statute. assembly by December 1, 2023.
4239 The bill modifies laws governing the licensure of retail liquor
4340 stores and liquor-licensed drugstores and creates the new
4441 beer-and-wine-licensed grocery store license.
4542 With regard to retail liquor store licenses, the bill:
4643 ! Removes the requirement that a new retail liquor store must
4744 be located a certain distance from an existing
4845 liquor-licensed drugstore;
4946 ! Expands the minimum distance between a new retail liquor
5047 store and other existing retail liquor stores from 1,500 feet
5148 to 3,000 feet;
5249 ! Effective January 1, 2024, removes the requirement that
5350 only an employee of the retail liquor store may deliver
5451 alcohol beverages and instead allows delivery by any
5552 person who is authorized by the retail liquor store, subject
5653 to specified requirements including that the licensee or the
5754 authorized deliverer obtain a delivery permit from the state
5855 licensing authority and other requirements specified in state
5956 licensing authority rules; and
6057 ! Increases the maximum number of retail liquor store
6158 licenses that a person may own.
6259 With regard to liquor-licensed drugstore licenses, the bill:
6360 ! Prohibits the state and local licensing authorities from
6461 issuing new liquor-licensed drugstore licenses after the date
6562 the bill takes effect and repeals provisions related to the
6663 ability of liquor-licensed drugstore licensees to obtain
6764 additional licenses;
6865 ! Allows a liquor-licensed drugstore licensed before January
6966 1, 2022, to continue to renew the licensee's license, unless
7067 the license has converted to a beer-and-wine-licensed
7168 grocery store license;
7269 ! On January 1, 2026, converts every liquor-licensed
7370 drugstore license in effect on that date to a
7471 beer-and-wine-licensed grocery store license, unless the
7572 licensee chooses to remain a liquor-licensed drugstore, and
7673 eliminates the ability of those licensees that convert to a
7774 beer-and-wine-licensed grocery store license to sell
7875 spirituous liquors; and
7976 ! Effective January 1, 2024, removes the requirement that
8077 only an employee of the liquor-licensed drugstore may
8178 deliver alcohol beverages and instead allows delivery by
8279 any person who is authorized by the liquor-licensed
8380 drugstore, subject to specified requirements including that
8481 the licensee or the authorized deliverer obtain a delivery
8582 permit from the state licensing authority and other
8683 1417
8784 -2- requirements specified in state licensing authority rules.
8885 With regard to beer-and-wine-licensed grocery store licenses, the
8986 bill:
9087 ! Creates the new license, available on or after January 1,
9188 2026, with requirements similar to the requirements
9289 applicable to liquor-licensed drugstores, to permit a grocery
9390 store that obtains the license to sell beer and wine only;
9491 ! Specifies that a beer-and-wine-licensed grocery store
9592 cannot be located within 1,500 feet of a retail liquor store;
9693 ! Allows a beer-and-wine-licensed grocery store to deliver
9794 beer and wine to its customers under the same requirements
9895 applicable to retail liquor stores and liquor-licensed
9996 drugstores;
10097 ! Allows a beer-and-wine grocery store to own multiple
10198 stores as follows: On and after January 1, 2026, and before
10299 January 1, 2027, a maximum of 8 stores; on and after
103100 January 1, 2027, and before January 1, 2032, a maximum
104101 of 13 stores; on and after January 1, 2032, and before
105102 January 1, 2037, a maximum of 20 stores; and on and after
106103 January 1, 2037, an unlimited number of additional stores;
107104 ! Allows a licensee licensed as a liquor-licensed drugstore on
108105 December 31, 2025, whose license converted to a
109106 beer-and-wine-licensed grocery store license on January 1,
110107 2026, to transfer any spirituous liquors in its possession to
111108 a licensee authorized to sell spirituous liquors but prohibits
112109 the licensee from selling spirituous liquors;
113110 ! Permits a beer-and-wine-licensed grocery store to offer
114111 tastings on the licensed premises if authorized by the local
115112 licensing authority; and
116113 ! Defines "grocery store" as an establishment that generates
117114 at least 20% of its gross annual income from the sale of
118115 food items.
119116 Be it enacted by the General Assembly of the State of Colorado:1
120117 SECTION 1. In Colorado Revised Statutes, add 44-3-108 as2
121118 follows:3
122119 44-3-108. Alcohol beverage regulation task force - legislative4
123120 declaration - creation - membership - duties - report - definitions -5
124121 repeal. (1) (a) T
125122 HE GENERAL ASSEMBLY HEREBY FINDS THAT :6
126123 (I) T
127124 HERE HAS NOT BEEN A BROAD REVIEW OF THE "COLORADO7
128125 1417-3- LIQUOR CODE", THE "COLORADO BEER CODE", ARTICLE 4 OF THIS TITLE1
129126 44,
130127 OR THE OTHER STATUTES REGULATING ALCOHOL BEVERAGES IN2
131128 RECENT HISTORY;3
132129 (II) G
133130 ROWTH IN THE INDUSTRY AND CHANGES IN CONSUMER4
134131 BEHAVIOR, MUCH OF WHICH WAS ACCELERATED BY THE COVID-195
135132 PANDEMIC, HAVE CREATED AN OPPORTUNITY FOR ENHANCED STATUTORY6
136133 CLARITY IN ORDER TO ALLEVIATE CHALLENGES ASSOCIATED WITH7
137134 INTERPRETING AND ENFORCING THE LAWS ;8
138135 (III) A
139136 DDITIONALLY, THE STATUTES REGULATING ALCOHOL9
140137 BEVERAGES HAVE UNDERGONE LEGISLATIVE CHANGES IN RECENT YEARS10
141138 TO ADDRESS SPECIFIC NICHE ISSUES, WHICH CHANGES OFTEN DO NOT TAKE11
142139 INTO ACCOUNT A HOLISTIC VIEW OF THE CODES , AND SIGNIFICANT12
143140 CHANGES ARE CURRENTLY UNDER CONSIDERATION , EITHER THROUGH13
144141 LEGISLATION OR BALLOT INITIATIVE, THAT COULD FURTHER COMPLICATE14
145142 THE STATUTES;15
146143 (IV) T
147144 HE DEPARTMENT HAS NOTED CONSIDERABLE CHALLENGES16
148145 IN STATUTORY APPLICATION GIVEN THE COMPLEXITY , PERCEIVED17
149146 CONTRADICTIONS, AND RAPIDLY EVOLVING MARKETPLACE INNOVATIONS18
150147 THAT HAVE OCCURRED WITHIN THE ALCOHOL BEVERAGE INDUSTRY ; AND19
151148 (V) I
152149 N ORDER TO FACILITATE STATUTORY COMPLIANCE BY20
153150 LICENSEES, IT IS ESSENTIAL THAT THE DEPARTMENT AND THE ALCOHOL21
154151 BEVERAGE INDUSTRY HAVE A CLEAR , LOGICAL, AND TRANSPARENT22
155152 REGULATORY FRAMEWORK THAT ALLOWS FOR UNDERSTANDABLE23
156153 REGULATIONS AND ENFORCEMENT , FOSTERS A STRONG INDUSTRY, AND24
157154 SUPPORTS THE DEPARTMENT 'S GOAL OF PUBLIC SAFETY.25
158155 (b) T
159156 HEREFORE, THE GENERAL ASSEMBLY FINDS THAT A TASK26
160157 FORCE COMPRISED OF A BROAD REPRESENTATION OF INTERESTS WILL27
161158 1417
162159 -4- PROVIDE A FORUM TO CRAFT LEGISLATIVE RECOMMENDATIONS FOCUSED1
163160 ON CLARIFYING AND MODERNIZING THE STATUTES REGULATING ALCOHOL2
164161 BEVERAGES IN A WAY THAT POSITIONS THE STATE OF COLORADO, THE3
165162 DEPARTMENT, AND THE ALCOHOL BEVERAGE INDUSTRY FOR SUCCESS FOR4
166163 DECADES TO COME.5
167164 (2) T
168165 HERE IS HEREBY CREATED IN THE DEPARTMENT THE ALCOHOL6
169166 BEVERAGE REGULATION TASK FORCE , REFERRED TO IN THIS SECTION AS7
170167 THE "TASK FORCE".8
171168 (3) (a) T
172169 HE TASK FORCE CONSISTS OF
173170 THIRTY MEMBERS, ONE OF9
174171 WHOM SHALL BE THE STATE LICENSING AUTHORITY OR THE STATE10
175172 LICENSING AUTHORITY'S DESIGNEE, AND TWENTY-NINE OF WHOM SHALL11
176173 BE APPOINTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT AS12
177174 FOLLOWS:13
178175 (I) O
179176 NE MEMBER REPRESENTING A LARGE BREWERY , AS14
180177 DETERMINED BY THE EXECUTIVE DIRECTOR ;15
181178 (II) O
182179 NE MEMBER REPRESENTING A
183180 SMALL, LOCAL BREWERY, AS16
184181 DETERMINED BY THE EXECUTIVE DIRECTOR ;17
185182 (III) O
186183 NE MEMBER REPRESENTING A LOCAL MANUFACTURER OF18
187184 SPIRITUOUS LIQUORS;19
188185 (IV) O
189186 NE MEMBER REPRESENTING A NATIONAL MANUFACTURER OF20
190187 SPIRITUOUS LIQUORS;21
191188 (V) O
192189 NE MEMBER REPRESENTING A LOCAL MANUFACTURER OF22
193190 VINOUS LIQUORS; 23
194191 (VI) O
195192 NE MEMBER REPRESENTING A NATIONAL MANUFACTURER OF24
196193 VINOUS LIQUORS; 25
197194 (VII) T
198195 WO MEMBERS REPRESENTING LARGE OFF -PREMISES26
199196 RETAILERS;27
200197 1417
201198 -5- (VIII) TWO MEMBERS REPRESENTING MEDIUM OFF -PREMISES1
202199 RETAILERS;2
203200 (IX) T
204201 WO MEMBERS REPRESENTING SMALL OFF -PREMISES3 RETAILERS, ONE OF WHOM MUST REPRESENT A MINORITY-OWNED SMALL4
205202 OFF-PREMISES RETAILER;5
206203 (X) ONE MEMBER REPRESENTING A MINORITY -OWNED6
207204 ON-PREMISES RETAILER; 7
208205 (XI) ONE MEMBER REPRESENTING THE COLORADO MUNICIPAL8
209206 CLERKS ASSOCIATION, OR ITS SUCCESSOR ORGANIZATION.9
210207 (XII) ONE MEMBER REPRESENTING A WHOLESALER OF MALT10
211208 LIQUORS;11
212209 (XIII) ONE MEMBER REPRESENTING A WHOLESALER OF VINOUS12
213210 AND SPIRITUOUS LIQUORS;13
214211 (XIV) ONE MEMBER REPRESENTING A WHOLESALER OF ANY TYPE14
215212 OF ALCOHOL BEVERAGE WITH EXPERIENCE SELLING TO AND SERVICING A15
216213 NATIONAL CHAIN ACCOUNT ;16
217214 (XV) ONE MEMBER REPRESENTING THE HARD CIDER INDUSTRY ;17
218215 (XVI) TWO MEMBERS REPRESENTING RESTAURANTS ;18
219216 (XVII) TWO MEMBERS REPRESENTING TAVERNS ;19
220217 (XVIII) ONE MEMBER REPRESENTING AN ARTS LICENSEE;20
221218 (XIX) ONE REPRESENTATIVE FROM MOTHERS AGAINST DRUNK21
222219 D
223220 RIVING, OR ITS SUCCESSOR ORGANIZATION;22(XX) ONE REPRESENTATIVE FROM COLORADO COUNTIES, INC., OR23
224221 ITS SUCCESSOR ORGANIZATION;24
225222 (XXI) ONE REPRESENTATIVE FROM THE COLORADO MUNICIPAL25
226223 L
227224 EAGUE, OR ITS SUCCESSOR ORGANIZATION;26(XXII) ONE REPRESENTATIVE FROM THE COLORADO STATE27
228225 1417
229226 -6- PATROL;1
230227 (XXIII) ONE REPRESENTATIVE FROM THE COLORADO2
231228 A
232229 SSOCIATION OF CHIEFS OF POLICE; AND3 (XXIV) ONE REPRESENTATIVE FROM COUNTY SHERIFFS OF4
233230 C
234231 OLORADO.5 (b) IN MAKING THE APPOINTMENTS PURSUANT TO SUBSECTION6
235232 (3)(a) OF THIS SECTION, THE EXECUTIVE DIRECTOR SHALL MAKE EVERY7
236233 REASONABLE EFFORT TO ENSURE THAT THE RACIAL AND ETHNIC MAKEUP8
237234 OF THE TASK FORCE IS REFLECTIVE OF THE DEMOGRAPHY OF THE STATE .9
238235 (c) AS USED IN THIS SUBSECTION (3), FOR THE PURPOSES OF10
239236 MAKING APPOINTMENTS PURSUANT TO THIS SUBSECTION (3):11
240237 (I) "L
241238 ARGE" MEANS A LICENSEE THAT HAS THREE OR MORE12
242239 LICENSED PREMISES IN THE STATE OR THAT EMPLOYS ONE HUNDRED OR13
243240 MORE EMPLOYEES;14
244241 (II) "M
245242 EDIUM" MEANS A LICENSEE THAT HAS AT LEAST TWO15
246243 LICENSED PREMISES IN THE STATE OR THAT EMPLOYS AT LEAST FIFTY AND16
247244 NO MORE THAN NINETY-NINE EMPLOYEES;
248245 AND17
249246 18
250247 (III) "SMALL" MEANS A LICENSEE THAT HAS NO MORE THAN ONE19
251248 LICENSED PREMISES IN THE STATE OR THAT EMPLOYEES FEWER THAN FIFTY20
252249 EMPLOYEES.21
253250 (4) A
254251 LL MEMBERS APPOINTED PURSUANT TO
255252 SUBSECTIONS (3)(a)(I)22
256253 TO (3)(a)(XVIII) OF THIS SECTION MUST BE A PRINCIPAL OR EMPLOYEE OF23
257254 A BUSINESS WITHIN THE SPECIFIC INDUSTRY INTEREST THE MEMBER24
258255 REPRESENTS AND HAVE DEMONSTRABLE, DIRECT EXPERIENCE WORKING25
259256 WITHIN THE SPECIFIC INDUSTRY INTERESTS THE MEMBER REPRESENTS,26
260257 WHICH EXPERIENCE MUST NOT BE SOLELY IN AN ADVOCACY POSITION FOR27
261258 1417
262259 -7- THOSE INDUSTRY INTERESTS.1
263260 (5) (a) E
264261 ACH MEMBER OF THE TASK FORCE APPOINTED PURSUANT2
265262 TO SUBSECTION (3)(a) OF THIS SECTION SERVES:3
266263 (I)
267264 AT THE PLEASURE OF THE OFFICIAL WHO APPOINTED THE4
268265 MEMBER; AND5
269266 (II)
270267 WITHOUT COMPENSATION AND WITHOUT REIMBURSEMENT FOR6
271268 EXPENSES.7
272269 (b) A
273270 N APPOINTED TASK FORCE MEMBER MAY DESIGNATE ONE8
274271 OTHER PERSON
275272 WHO IS A PRINCIPAL OR EMPLOYEE OF A BUSINESS WITHIN9
276273 THE SPECIFIC INDUSTRY INTEREST THE MEMBER REPRESENTS WHO IS10
277274 AUTHORIZED TO ACT IN THE MEMBER 'S ABSENCE BY PROXY, AND THE11
278275 PROXY MAY PERFORM ALL DUTIES IN THE TASK FORCE MEMBER 'S ABSENCE,12
279276 INCLUDING ATTENDING MEETINGS AND VOTING .13
280277 (6) (a) T
281278 HE STATE LICENSING AUTHORITY SHALL ORGANIZE AND14
282279 CALL THE FIRST MEETING OF THE TASK FORCE, TO BE HELD NO LATER THAN15
283280 J
284281 ULY 31, 2022.16
285282 (b) T
286283 HE TASK FORCE SHALL ELECT A CHAIR FROM AMONG ITS17
287284 MEMBERS.18
288285 (c) T
289286 HE TASK FORCE SHALL MEET AT LEAST ONCE EVERY MONTH .19
290287 T
291288 HE CHAIR MAY CALL ADDITIONAL MEETINGS AS NECESSARY FOR THE20
292289 TASK FORCE TO COMPLETE ITS DUTIES.21
293290 (7) T
294291 HE STATE LICENSING AUTHORITY MAY SUBMIT A REQUEST FOR22
295292 PROPOSALS AND HIRE AN OUTSIDE FACILITATOR FOR THE PURPOSE OF23
296293 PROVIDING SUPPORT FOR THE TASK FORCE , GENERATING THE REPORT24
297294 REQUIRED IN SUBSECTION (9) OF THIS SECTION, AND ANY OTHER DUTIES25
298295 ASSIGNED BY THE EXECUTIVE DIRECTOR .26
299296 (8) (a) F
300297 OR THE PURPOSE OF MAKING RECOMMENDATIONS TO THE27
301298 1417
302299 -8- GENERAL ASSEMBLY CONCERNING HOW TO MODERNIZE , CLARIFY, AND1
303300 HARMONIZE THE "COLORADO LIQUOR CODE", THE "COLORADO BEER2
304301 C
305302 ODE", ARTICLE 4 OF THIS TITLE 44, AND OTHER STATUTES REGULATING3
306303 ALCOHOL BEVERAGES, THE TASK FORCE SHALL REVIEW:4
307304 (I) T
308305 HE STATUTES REGULATING ALCOHOL BEVERAGES , CURRENT5
309306 MARKET TRENDS , AND LAWS AND REGULATIONS FROM OTHER6
310307 JURISDICTIONS;7
311308 (II) R
312309 EPORTS AND RECOMMENDATIONS FROM GOVERNING BODIES ,8
313310 INCLUDING THE UNITED STATES DEPARTMENT OF TREASURY REPORT9
314311 ENTITLED "COMPETITION IN THE MARKETS FOR BEER, WINE, AND10
315312 S
316313 PIRITS", DATED FEBRUARY 9, 2022; AND11
317314 (III) A
318315 NY OTHER MATERIALS DEEMED APPROPRIATE BY THE TASK12
319316 FORCE TO CONSIDER.13
320317 (b) A
321318 S THE TASK FORCE MAKES ITS RECOMMENDATIONS , IT SHALL14
322319 CONSIDER THE FOLLOWING GUIDING PRINCIPLES :15
323320 (I) S
324321 AFEGUARDING THE INTERESTS AND RIGHTS OF CONSUMERS16
325322 THROUGH CONSUMER PROTECTION MEASURES ;17
326323 (II) P
327324 ROTECTING THE GENERAL PUBLIC THROUGH PUBLIC SAFETY18
328325 MEASURES;19
329326 (III) P
330327 ROMOTING A
331328 FAIR, ETHNICALLY AND RACIALLY DIVERSE,20
332329 INDEPENDENT, AND OPEN MARKETPLACE:21
333330 (A) I
334331 N WHICH PRICE IS REFLECTIVE OF SUPPLY AND DEMAND22
335332 TRENDS AND ESTABLISHED ECONOMIC PRINCIPLES ; AND23
336333 (B) T
337334 HAT LIMITS BARRIERS TO ENTRY INTO AND EXIT FROM THE24
338335 ALCOHOL BEVERAGE MARKETPLACE ; AND25
339336 (IV) H
340337 OW ANY RECOMMENDATIONS MAY INTERACT WITH OR26
341338 AFFECT OTHER JURISDICTIONS THAT HAVE RESPONSIBILITY FOR THE27
342339 1417
343340 -9- REGULATION OF ALCOHOL BEVERAGES .1
344341 (c) T
345342 HE TASK FORCE MAY CREATE SUBCOMMITTEES TO CARRY OUT2
346343 ITS DUTIES UNDER THIS SUBSECTION (8).3
347344 (9) (a) O
348345 N OR BEFORE DECEMBER 1, 2023, THE TASK FORCE SHALL4
349346 REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE BUSINESS AFFAIRS5
350347 AND LABOR COMMI TTEE OF THE HOUSE OF REPRESENTATIVES AND THE6
351348 BUSINESS, LABOR, AND TECHNOLOGY COMMITTEE OF THE SENATE , OR ANY7
352349 SUCCESSOR COMMITTEES. THE REPORT MUST INCLUDE:8
353350 (I) A
354351 NY AGREED-UPON LEGISLATIVE OR ADMINISTRATIVE9
355352 RECOMMENDATIONS ; AND10
356353 (II) A
357354 SYNOPSIS OF DISSENTING VOTES, IF ANY, AND REASONS FOR11
358355 THE DISSENTING VOTES , IF AVAILABLE, REGARDING ANY REPORT12
359356 RECOMMENDATIONS THAT ARE NOT UNANIMOUS .13
360357 (b) A
361358 S USED IN SUBSECTION (9)(a)(I) OF THIS SECTION,14
362359 "
363360 AGREED-UPON" MEANS A SIMPLE MAJORITY OF TASK FORCE MEMBERS15
364361 PRESENT, UNLESS THE TASK FORCE, AT ITS INITIAL MEETING, DETERMINES16
365362 DIFFERENT PARAMETERS FOR WHAT CONSTITUTES AN "AGREED-UPON"17
366363 RECOMMENDATION .18
367364 (10) T
368365 HIS SECTION IS REPEALED, EFFECTIVE MAY 1, 2024.19
369366 20
370367 SECTION 2. Safety clause. The general assembly hereby finds,21
371368 determines, and declares that this act is necessary for the immediate22
372369 preservation of the public peace, health, or safety.23
373370 1417
374371 -10-