SB 25-033
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-033: PROHIBIT NEW LIQUOR-LICENSED DRUG STORES
Prime Sponsors:
Sen. Amabile; Roberts
Rep. Ricks; Weinberg
Published for: Senate Business, Labor, & Tech.
Drafting number: LLS 25-0138
Fiscal Analyst:
John Armstrong, 303-866-6289
john.armstrong@coleg.gov
Version: Initial Fiscal Note
Date: January 29, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill prohibits the issuance of new liquor licensed drugstore licenses and modifies the
restrictions in place for currently issued licensees.
Types of impacts. The bill is projected to affect the following areas on a ongoing basis:
State Revenue
Minimal State Workload
TABOR Refunds
Local Government
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue (Cash Funds) -$5,480 -$26,030
State Expenditures $0 $0
Transferred Funds $0 $0
Change in TABOR Refunds -$5,480 -$26,030
Change in State FTE 0.0 FTE 0.0 FTE
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January 29, 2025 SB 25-033
Summary of Legislation
The bill prohibits state and local licensing authorities from issuing any new liquor-licensed
drugstore (LLDS) licenses. Current LLDS licensees may still renew their license.
The bill also places certain restrictions on current LLDS licensees, including prohibiting:
the licensee from changing their location or transferring their license unless the license is
transferred to an independent pharmacist who does not possess an LLDS license;
any tastings on LLDS premises; and,
an LLDS licensee from having a financial interest in more than eight other LLDS licenses.
Background and Assumptions
LLDS licenses allow a limited number of pharmacies licensed by the State Board of Pharmacy to
sell alcohol. Most holders of these licenses are large grocery stores that have a pharmacy on the
premises. There are currently 36 LLDS licensees in the state that the fiscal note assumes will
continue to renew their licenses, as allowed by current law and under the bill.
However, the bill prohibits new LLDS licenses, which is assumed to result in 4 less LLDS licenses
issued in the remainder of FY 2025-26 after the effective date of the bill, 19 less LLDS licenses
issued in FY 2026-27, and a similar trend ongoing.
State Revenue
The bill decreases state revenues to Department of Revenue by prohibiting new LLDS licenses
from being issued that would have been allowable under current law, as outlined in the
Background and Assumptions section and shown in Table 2. Current fees for a new LLDS license
average to $1,370, paid to the Liquor Enforcement Division Cash Fund. License fees are subject
to TABOR.
Table 2
State Revenue
Department of Revenue
Fiscal Year Licenses Issued Fee Total Revenue
FY 2025-26 -4 $1,370 -$5,480
FY 2026-27 -19 $1,370 -$26,030
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January 29, 2025 SB 25-033
State Expenditures
Department of Revenue
Workload
The bill modifies workload for the Liquor Enforcement Division within the Department of
Revenue in several ways. Workload will increase to update the division’s rules and licensing
materials, communicate with licensees regarding the licensing changes, and handle any
additional violations related to compliance with the new LLDS requirements. Workload will also
be reduced due to no longer processing any new LLDS applications. No change in
appropriations is required.
Legal Services
The Department of Law will assist the division with rulemaking and bill enforcement. Due to the
small number of LLDS licensees, these efforts are expected to be accomplished within the
division’s existing legal services appropriation. If legal challenges are brought as a result of the
bill, additional resources may be sought through the annual budget process.
TABOR Refunds
The bill is expected to decrease the amount of state revenue required to be refunded to
taxpayers by the amounts shown in the State Revenue section above. This estimate assumes the
December 2024 LCS revenue forecast. A forecast of state revenue subject to TABOR is not
available beyond FY 2026-27. Because TABOR refunds are paid from the General Fund,
decreased cash fund revenue will increase the amount of General Fund available to spend or
save.
Local Government
Similar to the state, counties that issue liquor licenses before they are referred to the Liquor
Enforcement Division may see a decrease in fee revenues under the bill.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
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January 29, 2025 SB 25-033
State and Local Government Contacts
Counties
Information Technology
Judicial
Law
Municipalities
Public Safety
Revenue
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.