First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0138.01 Brita Darling x2241
SENATE BILL25-033
Senate Committees House Committees
Business, Labor, & Technology
A BILL FOR AN ACT
C
ONCERNING LIMITATIONS ON LIQUOR -LICENSED DRUGSTORE101
LICENSES.102
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
.)
On and after the effective date of the bill, the bill prohibits the
state and local licensing authorities (licensing authorities) from issuing a
new liquor-licensed drugstore license (license). Licensing authorities may
continue to renew existing licenses.
A person holding a license (licensee) is prohibited from changing
the location of, merging, selling, converting, or transferring a license;
SENATE SPONSORSHIP
Amabile and Roberts, Simpson
HOUSE SPONSORSHIP
Ricks and Weinberg, Bacon, Bird, Boesenecker, Brown, Clifford, Mabrey, McCluskie,
McCormick
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. except that a licensee that holds a license that was issued to an
independent pharmacy before January 1, 2025, shall not, on or after the
effective date of the bill, change the location of or merge or convert the
license but may sell or transfer the license to another licensee that is an
independent pharmacy that holds a license or to a person that does not
already have a license.
The bill prohibits an owner, part owner, shareholder, or person
interested directly or indirectly in a liquor-licensed drugstore from having
an interest in more than 8 licenses.
Sections 3 through 7 of the bill make conforming amendments to
account for the new restrictions on the license.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 44-3-103, add (21.3)2
as follows:3
44-3-103. Definitions. As used in this article 3 and article 4 of4
this title 44, unless the context otherwise requires:5
(21.3) "I
NDEPENDENT PHARMACY " MEANS A PRESCRIPTION DRUG6
OUTLET PRIVATELY OWNED BY AT LEAST ONE LICENSED PHARMACIST WITH7
NO OWNERSHIP INTEREST BY OR AFFILIATION WITH A CHAIN OR PUBLICLY8
OWNED PHARMACY .9
SECTION 2. In Colorado Revised Statutes, 44-3-410, amend10
(1)(a) and (7); repeal (1)(b), (4)(b)(IV), (4)(b)(V), and (4)(c); and add11
(4)(b)(VI) and (8) as follows:12
44-3-410. Liquor-licensed drugstore license - multiple licenses13
permitted - license renewals - independent pharmacies -14
requirements - rules. (1) (a) (I)
A liquor-licensed drugstore license shall15
be IS issued to persons selling malt, vinous, and spirituous liquors in16
sealed containers not to be consumed at the place where sold. On and17
after July 1, 2016, except as permitted under subsection (1)(b) of this18
section THE EFFECTIVE DATE OF THIS SECTION, AS AMENDED, the state and19
SB25-033-2- local licensing authorities shall not issue a ANY new liquor-licensed1
drugstore license if the licensed premises for which a liquor-licensed2
drugstore license is sought is located: LICENSES.3
(A) Within one thousand five hundred feet of a retail liquor store4
licensed under section 44-3-409;5
(B) For a drugstore premises located in a municipality with a6
population of ten thousand or fewer, within three thousand feet of a retail7
liquor store licensed under section 44-3-409; or8
(C) For a drugstore premises located in a municipality with a9
population of ten thousand or fewer that is contiguous to the city and10
county of Denver, within one thousand five hundred feet of a retail liquor11
store licensed under section 44-3-409.12
(II) Nothing in this subsection (1) prohibits:13
(A) The renewal or transfer of ownership of a liquor-licensed14
drugstore license initially issued prior to July 1, 2016.15
(B) A liquor-licensed drugstore licensee from allowing tastings on16
the licensed premises if the applicable local licensing authority has17
authorized the liquor-licensed drugstore to conduct tastings on its licensed18
premises in accordance with section 44-3-301 (10).19
(b) (I) On or after January 1, 2017, to qualify for an additional20
liquor-licensed drugstore license under this section, a liquor-licensed21
drugstore licensee, or a retail liquor store licensee that was licensed as a22
liquor-licensed drugstore on February 21, 2016, must apply to the state23
and local licensing authorities, as part of a single application, for a24
transfer of ownership of at least two licensed retail liquor stores that were25
licensed or had applied for a license on or before May 1, 2016, a change26
of location of one of the retail liquor stores, and a merger and conversion27
SB25-033
-3- of the retail liquor store licenses into a single liquor-licensed drugstore1
license. The applicant may apply for a transfer, change of location, and2
merger and conversion only if all of the following requirements are met:3
(A) The retail liquor stores that are the subject of the transfer of4
ownership are located within the same local licensing authority5
jurisdiction as the drugstore premises for which the applicant is seeking6
a liquor-licensed drugstore license, and, if any retail liquor stores are7
located within one thousand five hundred feet of the drugstore premises8
or, for a drugstore premises located in a municipality with a population9
of ten thousand or fewer, within three thousand feet of the drugstore10
premises, the applicant applies to transfer ownership of all retail liquor11
stores located within that distance. If there are no licensed retail liquor12
stores or only one licensed retail liquor store within the same local13
licensing authority jurisdiction as the drugstore premises for which a14
liquor-licensed drugstore license is sought, the applicant shall apply to15
transfer ownership of one or two retail liquor stores, as necessary, that are16
located in the local licensing authority jurisdiction that is nearest to the17
jurisdiction in which the drugstore premises is located.18
(B) Upon transfer and conversion of the retail liquor store licenses19
to a single liquor-licensed drugstore license, the drugstore premises for20
which the liquor-licensed drugstore license is sought will be located at21
least one thousand five hundred feet from all licensed retail liquor stores22
that are within the same local licensing authority jurisdiction as the23
drugstore premises or, for a drugstore premises located in a municipality24
with a population of ten thousand or fewer, at least three thousand feet25
from all licensed retail liquor stores that are within the same local26
licensing authority jurisdiction as the drugstore premises.27
SB25-033
-4- (II) For purposes of determining whether the distance1
requirements specified in subsection (1)(b)(I) of this section are satisfied,2
the distance shall be determined by a radius measurement that begins at3
the principal doorway of the drugstore premises for which the application4
is made and ends at the principal doorway of the licensed retail liquor5
store.6
(III) In making its determination on the transfer of ownership,7
change of location, and license merger and conversion application, the8
local licensing authority shall consider the reasonable requirements of the9
neighborhood and the desires of the adult inhabitants in accordance with10
section 44-3-312.11
(IV) In addition to any other requirements for licensure under this12
section or this article 3, a person applying for a new liquor-licensed13
drugstore license in accordance with this subsection (1)(b) on or after14
January 1, 2017, or to renew a liquor-licensed drugstore license issued on15
or after January 1, 2017, under this subsection (1)(b) must:16
(A) Provide evidence to the state and local licensing authorities17
that at least twenty percent of the licensee's gross annual income derived18
from total sales during the prior twelve months at the drugstore premises19
for which a new or renewal licenses is sought is from the sale of food20
items, as defined by the state licensing authority by rule; and21
(B) Make and keep its premises open to the public.22
(4) (b) An owner, part owner, shareholder, or person interested23
directly or indirectly in a liquor-licensed drugstore may have an interest24
in:25
(IV) For a liquor-licensed drugstore licensed on or before January26
1, 2016, or a liquor-licensed drugstore licensee that was licensed as a27
SB25-033
-5- liquor-licensed drugstore on February 21, 2016, that converted its license1
to a retail liquor store license after February 21, 2016, and that applied on2
or before May 1, 2017, to convert its retail liquor store license back to a3
liquor-licensed drugstore license, additional liquor-licensed drugstore4
licenses as follows, but only if obtained in accordance with subsection5
(1)(b) of this section:6
(A) On or after January 1, 2017, and before January 1, 2022, four7
additional liquor-licensed drugstore licenses, for a maximum of five total8
liquor-licensed drugstore licenses;9
(B) On or after January 1, 2022, and before January 1, 2027, up10
to seven additional liquor-licensed drugstore licenses, for a maximum of11
eight total liquor-licensed drugstore licenses;12
(C) On or after January 1, 2027, and before January 1, 2032, up13
to twelve additional liquor-licensed drugstore licenses, for a maximum of14
thirteen total liquor-licensed drugstore licenses;15
(D) On or after January 1, 2032, and before January 1, 2037, up16
to nineteen additional liquor-licensed drugstore licenses, for a maximum17
of twenty total liquor-licensed drugstore licenses; and18
(E) On or after January 1, 2037, an unlimited number of additional19
liquor-licensed drugstore licenses.20
(V) For a liquor-licensed drugstore that submitted an application21
for a new liquor-licensed drugstore license before October 1, 2016,22
additional liquor-licensed drugstore licenses as follows, but only if23
obtained in accordance with subsection (1)(b) of this section:24
(A) On or after January 1, 2019, and before January 1, 2022, four25
additional liquor-licensed drugstore licenses, for a maximum of five total26
liquor-licensed drugstore licenses;27
SB25-033
-6- (B) On or after January 1, 2022, and before January 1, 2027, up1
to seven additional liquor-licensed drugstore licenses, for a maximum of2
eight total liquor-licensed drugstore licenses;3
(C) On or after January 1, 2027, and before January 1, 2032, up4
to twelve additional liquor-licensed drugstore licenses, for a maximum of5
thirteen total liquor-licensed drugstore licenses;6
(D) On or after January 1, 2032, and before January 1, 2037, up7
to nineteen additional liquor-licensed drugstore licenses, for a maximum8
of twenty total liquor-licensed drugstore licenses; and9
(E) On or after January 1, 2037, an unlimited number of additional10
liquor-licensed drugstore licenses.11
(VI) N
O MORE THAN EIGHT LIQUOR -LICENSED DRUGSTORE12
LICENSES.13
(c) Subsection (4)(b)(V) of this section does not apply to a
14
liquor-licensed drugstore licensee that was licensed as a liquor-licensed15
drugstore on February 21, 2016, that converted its license to a retail liquor16
store license after February 21, 2016, and that applied on or before May17
1, 2017, to convert its retail liquor store license back to a liquor-licensed18
drugstore license.19
(7) A person licensed under this section that obtains OBTAINED20
additional liquor-licensed drugstore licenses in accordance with21
subsection (4)(b)(IV) or (4)(b)(V) of this section may operate under a22
single or consolidated corporate entity but shall not commingle purchases23
of or credit extensions for purchases of malt, vinous, or spirituous liquors24
from a wholesaler licensed under this article 3 for more than one licensed25
premises. A wholesaler licensed under this article 3 shall not base the26
price for the malt, vinous, or spirituous liquors it sells to a liquor-licensed27
SB25-033
-7- drugstore licensed under this section on the total volume of malt, vinous,1
or spirituous liquors that the licensee purchases for multiple licensed2
premises.3
(8) (a) T
HE STATE OR A LOCAL LICENSING AUTHORITY MAY RENEW4
A LIQUOR-LICENSED DRUGSTORE LICENSE PURSUANT TO SECTION5
44-3-302.
IN ADDITION TO ANY OTHER REQUIREMENTS FOR RENEWAL , A6
PERSON APPLYING TO RENEW A LIQUOR -LICENSED DRUGSTORE LICENSE7
ISSUED ON OR AFTER JANUARY 1, 2017, BUT ISSUED BEFORE THE8
EFFECTIVE DATE OF THIS SECTION, AS AMENDED, SHALL:9
(I) P
ROVIDE EVIDENCE TO THE STATE AND LOCAL LICENSING10
AUTHORITIES THAT, WITH RESPECT TO THE TOTAL SALES MADE DURING11
THE PRIOR TWELVE MONTHS AT THE DRUGSTORE PREMISES FOR WHICH THE12
RENEWAL LICENSE IS SOUGHT , AT LEAST TWENTY PERCENT OF THE13
LICENSEE'S GROSS ANNUAL INCOME IS DERIVED FROM THE SALE OF FOOD14
ITEMS, AS DEFINED BY THE STATE LICENSING AUTHORITY BY RULE ; AND15
(II) M
AKE AND KEEP THE LICENSEE 'S PREMISES OPEN TO THE16
PUBLIC.17
(b) (I) O
N AND AFTER THE EFFECTIVE DATE OF THIS SECTION , AS18
AMENDED, A LIQUOR-LICENSED DRUGSTORE LICENSEE SHALL NOT MERGE ,19
SELL, TRANSFER, CONVERT, OR CHANGE THE LOCATION OF A20
LIQUOR-LICENSED DRUGSTORE LICENSE.21
(II) N
OTWITHSTANDING SUBSECTION (8)(b)(I) OF THIS SECTION, A22
LIQUOR-LICENSED DRUGSTORE LICENSEE THAT HOLDS A LIQUOR -LICENSED23
DRUGSTORE LICENSE THAT WAS ISSUED TO AN INDEPENDENT PHARMACY24
BEFORE JANUARY 1, 2025, SHALL NOT, ON OR AFTER THE EFFECTIVE DATE25
OF THIS SECTION, AS AMENDED, CHANGE THE LOCATION OF OR MERGE OR26
CONVERT THE LICENSE, BUT THE LICENSEE MAY SELL OR TRANSFER THE27
SB25-033
-8- LICENSE TO ANOTHER INDEPENDENT PHARMACY THAT HOLDS A1
LIQUOR-LICENSED DRUGSTORE LICENSE OR TO A PERSON THAT DOES NOT2
ALREADY HOLD OR HAVE AN INTEREST IN A LIQUOR -LICENSED DRUGSTORE3
LICENSE.4
SECTION 3. In Colorado Revised Statutes, 44-3-303, amend5
(1)(c)(I) and (2); and repeal (1)(c)(II) as follows:6
44-3-303. Transfer of ownership and temporary permits.7
(1) (c) (I) Except as provided in subsection (1)(c)(II) of this section, for8
any other FOR ANY transfer of ownership, application must be made to the9
state and local licensing authorities on forms prepared and furnished by10
the state licensing authority. In determining whether to permit a transfer11
of ownership, the licensing authorities shall consider only the12
requirements of section 44-3-307 and 1 CCR 203-2, rule 47-302, entitled13
"Changing, Altering, or Modifying Licensed Premises", or any analogous14
successor rule. The local licensing authority may conduct a hearing on the15
application for transfer of ownership after providing notice in accordance16
with subsection (1)(c)(III) of this section. Any A transfer of ownership17
hearing by the state licensing authority must SHALL be held in accordance18
with section 44-3-305 (2).19
(II) A license merger and conversion as provided for in section20
44-3-410 (1)(b) includes a transfer of ownership of at least two retail21
liquor stores, a change of location of one of the retail liquor stores, and22
a merger and conversion of the retail liquor store licenses into a single23
liquor-licensed drugstore license, all as part of a single transaction, and24
the liquor-licensed drugstore applicant need not apply separately for a25
transfer of ownership under this section. The liquor-licensed drugstore26
applying for a license merger and conversion pursuant to section27
SB25-033
-9- 44-3-410 (1)(b) is ineligible for a temporary permit pursuant to this1
section. The local licensing authority shall consider the reasonable2
requirements of the neighborhood pursuant to section 44-3-312 when3
making a determination on the merger and conversion of the retail liquor4
store licenses into a single liquor-licensed drugstore license. The local5
licensing authority may hold a hearing on the application for the license6
merger and conversion after providing notice in accordance with7
subsection (1)(c)(III) of this section.8
(2) Notwithstanding any provision of this article 3 to the contrary,9
a local licensing authority may issue a temporary permit to a transferee of10
any retail class of alcohol beverage license issued by the local licensing11
authority pursuant to this article 3 or article 4 of this title 44. except that12
a local licensing authority shall not issue a temporary permit to a13
liquor-licensed drugstore that has acquired ownership of licensed retail14
liquor stores in accordance with section 44-3-410 (1)(b). A temporary15
permit authorizes a transferee to continue selling alcohol beverages as16
permitted under the permanent license during the period in which an17
application to transfer the ownership of the license is pending.18
SECTION 4. In Colorado Revised Statutes, 44-3-312, amend19
(2)(a) as follows:20
44-3-312. Results of investigation - decision of authorities.21
(2) (a) Before entering any A decision approving or denying the AN22
application, the A local licensing authority shall consider, except where23
this article 3 specifically provides otherwise, the facts and evidence24
adduced as a result of its investigation, as well as any other facts; the25
reasonable requirements of the neighborhood for the type of license for26
which application has been made; the desires of the adult inhabitants; the27
SB25-033
-10- number, type, and availability of alcohol beverage outlets located in or1
near the neighborhood under consideration; and any other pertinent2
matters affecting the qualifications of the applicant for the conduct of the3
type of business proposed; except that the reasonable requirements of the4
neighborhood shall not be considered in the issuance of a club liquor5
license. For the merger and conversion of retail liquor store licenses to a6
single liquor-licensed drugstore license in accordance with section7
44-3-410 (1)(b), the local licensing authority shall consider the reasonable8
requirements of the neighborhood and the desires of the adult inhabitants9
of the neighborhood.10
SECTION 5. In Colorado Revised Statutes, 44-3-409, repeal (5)11
as follows:12
44-3-409. Retail liquor store license - rules - definitions. (5) A13
liquor-licensed drugstore may apply to the state and local licensing14
authorities, as part of a single application, for a merger and conversion of15
retail liquor store licenses to a single liquor-licensed drugstore license as16
provided in section 44-3-410 (1)(b).17
SECTION 6. In Colorado Revised Statutes, 44-3-501, repeal18
(3)(a)(XVI) as follows:19
44-3-501. State fees - rules. (3) (a) The state licensing authority20
shall establish fees for processing the following types of applications,21
notices, or reports required to be submitted to the state licensing22
authority:23
(XVI) Applications for transfer of ownership, change of location,24
and license merger and conversion pursuant to section 44-3-410 (1)(b);25
SECTION 7. In Colorado Revised Statutes, 44-3-505, repeal26
(4)(a)(V) as follows:27
SB25-033
-11- 44-3-505. Local license fees. (4) (a) Each application for a1
license provided for in this article 3 and article 4 of this title 44 filed with2
a local licensing authority must be accompanied by an application fee in3
an amount determined by the local licensing authority to cover actual and4
necessary expenses, subject to the following limitations:5
(V) For a transfer of ownership, change of location, and license6
merger and conversion pursuant to section 44-3-410 (1)(b), not to exceed7
one thousand dollars.8
SECTION 8. Safety clause. The general assembly finds,9
determines, and declares that this act is necessary for the immediate10
preservation of the public peace, health, or safety or for appropriations for11
the support and maintenance of the departments of the state and state12
institutions.13
SB25-033
-12-