SENATE BILL 25-033
BY SENATOR(S) Amabile and Roberts, Simpson, Bridges, Catlin,
Daugherty, Exum, Kipp, Mullica, Snyder, Weissman;
also REPRESENTATIVE(S) Ricks and Weinberg, Bacon, Bird,
Boesenecker, Brown, Clifford, Mabrey, McCluskie, McCormick,
Gonzalez R., Hamrick, Lukens, Marshall, Mauro, Phillips, Sirota,
Stewart K.
C
ONCERNING LIMITATIONS ON LIQUOR -LICENSED DRUGSTORE LICENSES.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 44-3-103, add (21.3)
as follows:
44-3-103. Definitions. As used in this article 3 and article 4 of this
title 44, unless the context otherwise requires:
(21.3) "I
NDEPENDENT PHARMACY " MEANS A PRESCRIPTION DRUG
OUTLET PRIVATELY OWNED BY AT LEAST ONE LICENSED PHARMACIST WITH
NO OWNERSHIP INTEREST BY OR AFFILIATION WITH A CHAIN OR PUBLICLY
OWNED PHARMACY
.
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. SECTION 2. In Colorado Revised Statutes, 44-3-410, amend (1)(a)
and (7); repeal (1)(b), (4)(b)(IV), (4)(b)(V), and (4)(c); and add (4)(b)(VI)
and (8) as follows:
44-3-410. Liquor-licensed drugstore license - multiple licenses
permitted - license renewals - independent pharmacies - requirements
- rules. (1) (a) (I)
A liquor-licensed drugstore license shall be IS issued to
persons selling malt, vinous, and spirituous liquors in sealed containers not
to be consumed at the place where sold. On and after July 1, 2016, except
as permitted under subsection (1)(b) of this section THE EFFECTIVE DATE OF
THIS SECTION
, AS AMENDED, the state and local licensing authorities shall
not issue a
ANY new liquor-licensed drugstore license if the licensed
premises for which a liquor-licensed drugstore license is sought is located:
LICENSES.
(A) Within one thousand five hundred feet of a retail liquor store
licensed under section 44-3-409;
(B) For a drugstore premises located in a municipality with a
population of ten thousand or fewer, within three thousand feet of a retail
liquor store licensed under section 44-3-409; or
(C) For a drugstore premises located in a municipality with a
population of ten thousand or fewer that is contiguous to the city and county
of Denver, within one thousand five hundred feet of a retail liquor store
licensed under section 44-3-409.
(II) Nothing in this subsection (1) prohibits:
(A) The renewal or transfer of ownership of a liquor-licensed
drugstore license initially issued prior to July 1, 2016.
(B) A liquor-licensed drugstore licensee from allowing tastings on
the licensed premises if the applicable local licensing authority has
authorized the liquor-licensed drugstore to conduct tastings on its licensed
premises in accordance with section 44-3-301 (10).
(b) (I) On or after January 1, 2017, to qualify for an additional
liquor-licensed drugstore license under this section, a liquor-licensed
drugstore licensee, or a retail liquor store licensee that was licensed as a
PAGE 2-SENATE BILL 25-033 liquor-licensed drugstore on February 21, 2016, must apply to the state and
local licensing authorities, as part of a single application, for a transfer of
ownership of at least two licensed retail liquor stores that were licensed or
had applied for a license on or before May 1, 2016, a change of location of
one of the retail liquor stores, and a merger and conversion of the retail
liquor store licenses into a single liquor-licensed drugstore license. The
applicant may apply for a transfer, change of location, and merger and
conversion only if all of the following requirements are met:
(A) The retail liquor stores that are the subject of the transfer of
ownership are located within the same local licensing authority jurisdiction
as the drugstore premises for which the applicant is seeking a
liquor-licensed drugstore license, and, if any retail liquor stores are located
within one thousand five hundred feet of the drugstore premises or, for a
drugstore premises located in a municipality with a population of ten
thousand or fewer, within three thousand feet of the drugstore premises, the
applicant applies to transfer ownership of all retail liquor stores located
within that distance. If there are no licensed retail liquor stores or only one
licensed retail liquor store within the same local licensing authority
jurisdiction as the drugstore premises for which a liquor-licensed drugstore
license is sought, the applicant shall apply to transfer ownership of one or
two retail liquor stores, as necessary, that are located in the local licensing
authority jurisdiction that is nearest to the jurisdiction in which the
drugstore premises is located.
(B) Upon transfer and conversion of the retail liquor store licenses
to a single liquor-licensed drugstore license, the drugstore premises for
which the liquor-licensed drugstore license is sought will be located at least
one thousand five hundred feet from all licensed retail liquor stores that are
within the same local licensing authority jurisdiction as the drugstore
premises or, for a drugstore premises located in a municipality with a
population of ten thousand or fewer, at least three thousand feet from all
licensed retail liquor stores that are within the same local licensing authority
jurisdiction as the drugstore premises.
(II) For purposes of determining whether the distance requirements
specified in subsection (1)(b)(I) of this section are satisfied, the distance
shall be determined by a radius measurement that begins at the principal
doorway of the drugstore premises for which the application is made and
ends at the principal doorway of the licensed retail liquor store.
PAGE 3-SENATE BILL 25-033 (III) In making its determination on the transfer of ownership,
change of location, and license merger and conversion application, the local
licensing authority shall consider the reasonable requirements of the
neighborhood and the desires of the adult inhabitants in accordance with
section 44-3-312.
(IV) In addition to any other requirements for licensure under this
section or this article 3, a person applying for a new liquor-licensed
drugstore license in accordance with this subsection (1)(b) on or after
January 1, 2017, or to renew a liquor-licensed drugstore license issued on
or after January 1, 2017, under this subsection (1)(b) must:
(A) Provide evidence to the state and local licensing authorities that
at least twenty percent of the licensee's gross annual income derived from
total sales during the prior twelve months at the drugstore premises for
which a new or renewal licenses is sought is from the sale of food items, as
defined by the state licensing authority by rule; and
(B) Make and keep its premises open to the public.
(4) (b) An owner, part owner, shareholder, or person interested
directly or indirectly in a liquor-licensed drugstore may have an interest in:
(IV) For a liquor-licensed drugstore licensed on or before January
1, 2016, or a liquor-licensed drugstore licensee that was licensed as a
liquor-licensed drugstore on February 21, 2016, that converted its license
to a retail liquor store license after February 21, 2016, and that applied on
or before May 1, 2017, to convert its retail liquor store license back to a
liquor-licensed drugstore license, additional liquor-licensed drugstore
licenses as follows, but only if obtained in accordance with subsection
(1)(b) of this section:
(A) On or after January 1, 2017, and before January 1, 2022, four
additional liquor-licensed drugstore licenses, for a maximum of five total
liquor-licensed drugstore licenses;
(B) On or after January 1, 2022, and before January 1, 2027, up to
seven additional liquor-licensed drugstore licenses, for a maximum of eight
total liquor-licensed drugstore licenses;
PAGE 4-SENATE BILL 25-033 (C) On or after January 1, 2027, and before January 1, 2032, up to
twelve additional liquor-licensed drugstore licenses, for a maximum of
thirteen total liquor-licensed drugstore licenses;
(D) On or after January 1, 2032, and before January 1, 2037, up to
nineteen additional liquor-licensed drugstore licenses, for a maximum of
twenty total liquor-licensed drugstore licenses; and
(E) On or after January 1, 2037, an unlimited number of additional
liquor-licensed drugstore licenses.
(V) For a liquor-licensed drugstore that submitted an application for
a new liquor-licensed drugstore license before October 1, 2016, additional
liquor-licensed drugstore licenses as follows, but only if obtained in
accordance with subsection (1)(b) of this section:
(A) On or after January 1, 2019, and before January 1, 2022, four
additional liquor-licensed drugstore licenses, for a maximum of five total
liquor-licensed drugstore licenses;
(B) On or after January 1, 2022, and before January 1, 2027, up to
seven additional liquor-licensed drugstore licenses, for a maximum of eight
total liquor-licensed drugstore licenses;
(C) On or after January 1, 2027, and before January 1, 2032, up to
twelve additional liquor-licensed drugstore licenses, for a maximum of
thirteen total liquor-licensed drugstore licenses;
(D) On or after January 1, 2032, and before January 1, 2037, up to
nineteen additional liquor-licensed drugstore licenses, for a maximum of
twenty total liquor-licensed drugstore licenses; and
(E) On or after January 1, 2037, an unlimited number of additional
liquor-licensed drugstore licenses.
(VI) NO MORE THAN EIGHT LIQUOR -LICENSED DRUGSTORE LICENSES.
(c) Subsection (4)(b)(V) of this section does not apply to a
liquor-licensed drugstore licensee that was licensed as a liquor-licensed
drugstore on February 21, 2016, that converted its license to a retail liquor
PAGE 5-SENATE BILL 25-033 store license after February 21, 2016, and that applied on or before May 1,
2017, to convert its retail liquor store license back to a liquor-licensed
drugstore license.
(7) A person licensed under this section that obtains OBTAINED
additional liquor-licensed drugstore licenses in accordance with subsection
(4)(b)(IV) or (4)(b)(V) of this section may operate under a single or
consolidated corporate entity but shall not commingle purchases of or credit
extensions for purchases of malt, vinous, or spirituous liquors from a
wholesaler licensed under this article 3 for more than one licensed premises.
A wholesaler licensed under this article 3 shall not base the price for the
malt, vinous, or spirituous liquors it sells to a liquor-licensed drugstore
licensed under this section on the total volume of malt, vinous, or spirituous
liquors that the licensee purchases for multiple licensed premises.
(8) (a) T
HE STATE OR A LOCAL LICENSING AUTHORITY MAY RENEW
A LIQUOR
-LICENSED DRUGSTORE LICENSE PURSUANT TO SECTION 44-3-302.
I
N ADDITION TO ANY OTHER REQUIREMENTS FOR RENEWAL , A PERSON
APPLYING TO RENEW A LIQUOR
-LICENSED DRUGSTORE LICENSE ISSUED ON OR
AFTER
JANUARY 1, 2017, BUT ISSUED BEFORE THE EFFECTIVE DATE OF THIS
SECTION
, AS AMENDED, SHALL:
(I) P
ROVIDE EVIDENCE TO THE STATE AND LOCAL LICENSING
AUTHORITIES THAT
, WITH RESPECT TO THE TOTAL SALES MADE DURING THE
PRIOR TWELVE MONTHS AT THE DRUGSTORE PREMISES FOR WHICH THE
RENEWAL LICENSE IS SOUGHT
, AT LEAST TWENTY PERCENT OF THE
LICENSEE
'S GROSS ANNUAL INCOME IS DERIVED FROM THE SALE OF FOOD
ITEMS
, AS DEFINED BY THE STATE LICENSING AUTHORITY BY RULE ; AND
(II) MAKE AND KEEP THE LICENSEE'S PREMISES OPEN TO THE PUBLIC.
(b) (I) O
N AND AFTER THE EFFECTIVE DATE OF THIS SECTION , AS
AMENDED
, A LIQUOR-LICENSED DRUGSTORE LICENSEE SHALL NOT MERGE ,
SELL, TRANSFER, CONVERT, OR CHANGE THE LOCATION OF A
LIQUOR
-LICENSED DRUGSTORE LICENSE.
(II) N
OTWITHSTANDING SUBSECTION (8)(b)(I) OF THIS SECTION, A
LIQUOR
-LICENSED DRUGSTORE LICENSEE THAT HOLDS A LIQUOR -LICENSED
DRUGSTORE LICENSE THAT WAS ISSUED TO AN INDEPENDENT PHARMACY
BEFORE
JANUARY 1, 2025, MAY CHANGE THE LOCATION OF OR SELL OR
PAGE 6-SENATE BILL 25-033 TRANSFER THE LICENSE TO ANOTHER INDEPENDENT PHARMACY THAT HOLDS
A LIQUOR
-LICENSED DRUGSTORE LICENSE OR TO A PERSON THAT DOES NOT
ALREADY HOLD OR HAVE AN INTEREST IN A LIQUOR
-LICENSED DRUGSTORE
LICENSE
.
SECTION 3. In Colorado Revised Statutes, 44-3-303, amend
(1)(c)(I) and (2); and repeal (1)(c)(II) as follows:
44-3-303. Transfer of ownership and temporary permits.
(1) (c) (I) Except as provided in subsection (1)(c)(II) of this section, for any
other FOR ANY transfer of ownership, application must be made to the state
and local licensing authorities on forms prepared and furnished by the state
licensing authority. In determining whether to permit a transfer of
ownership, the licensing authorities shall consider only the requirements of
section 44-3-307 and 1 CCR 203-2, rule 47-302, entitled "Changing,
Altering, or Modifying Licensed Premises", or any analogous successor
rule. The local licensing authority may conduct a hearing on the application
for transfer of ownership after providing notice in accordance with
subsection (1)(c)(III) of this section. Any
A transfer of ownership hearing
by the state licensing authority must SHALL be held in accordance with
section 44-3-305 (2).
(II) A license merger and conversion as provided for in section
44-3-410 (1)(b) includes a transfer of ownership of at least two retail liquor
stores, a change of location of one of the retail liquor stores, and a merger
and conversion of the retail liquor store licenses into a single liquor-licensed
drugstore license, all as part of a single transaction, and the liquor-licensed
drugstore applicant need not apply separately for a transfer of ownership
under this section. The liquor-licensed drugstore applying for a license
merger and conversion pursuant to section 44-3-410 (1)(b) is ineligible for
a temporary permit pursuant to this section. The local licensing authority
shall consider the reasonable requirements of the neighborhood pursuant to
section 44-3-312 when making a determination on the merger and
conversion of the retail liquor store licenses into a single liquor-licensed
drugstore license. The local licensing authority may hold a hearing on the
application for the license merger and conversion after providing notice in
accordance with subsection (1)(c)(III) of this section.
(2) Notwithstanding any provision of this article 3 to the contrary,
a local licensing authority may issue a temporary permit to a transferee of
PAGE 7-SENATE BILL 25-033 any retail class of alcohol beverage license issued by the local licensing
authority pursuant to this article 3 or article 4 of this title 44. except that a
local licensing authority shall not issue a temporary permit to a
liquor-licensed drugstore that has acquired ownership of licensed retail
liquor stores in accordance with section 44-3-410 (1)(b). A temporary
permit authorizes a transferee to continue selling alcohol beverages as
permitted under the permanent license during the period in which an
application to transfer the ownership of the license is pending.
SECTION 4. In Colorado Revised Statutes, 44-3-312, amend (2)(a)
as follows:
44-3-312. Results of investigation - decision of authorities.
(2) (a) Before entering any
A decision approving or denying the AN
application, the A local licensing authority shall consider, except where this
article 3 specifically provides otherwise, the facts and evidence adduced as
a result of its investigation, as well as any other facts; the reasonable
requirements of the neighborhood for the type of license for which
application has been made; the desires of the adult inhabitants; the number,
type, and availability of alcohol beverage outlets located in or near the
neighborhood under consideration; and any other pertinent matters affecting
the qualifications of the applicant for the conduct of the type of business
proposed; except that the reasonable requirements of the neighborhood shall
not be considered in the issuance of a club liquor license. For the merger
and conversion of retail liquor store licenses to a single liquor-licensed
drugstore license in accordance with section 44-3-410 (1)(b), the local
licensing authority shall consider the reasonable requirements of the
neighborhood and the desires of the adult inhabitants of the neighborhood.
SECTION 5. In Colorado Revised Statutes, 44-3-409, repeal (5)
as follows:
44-3-409. Retail liquor store license - rules - definitions. (5) A
liquor-licensed drugstore may apply to the state and local licensing
authorities, as part of a single application, for a merger and conversion of
retail liquor store licenses to a single liquor-licensed drugstore license as
provided in section 44-3-410 (1)(b).
SECTION 6. In Colorado Revised Statutes, 44-3-501, repeal
(3)(a)(XVI) as follows:
PAGE 8-SENATE BILL 25-033 44-3-501. State fees - rules. (3) (a) The state licensing authority
shall establish fees for processing the following types of applications,
notices, or reports required to be submitted to the state licensing authority:
(XVI) Applications for transfer of ownership, change of location,
and license merger and conversion pursuant to section 44-3-410 (1)(b);
SECTION 7. In Colorado Revised Statutes, 44-3-505, repeal
(4)(a)(V) as follows:
44-3-505. Local license fees. (4) (a) Each application for a license
provided for in this article 3 and article 4 of this title 44 filed with a local
licensing authority must be accompanied by an application fee in an amount
determined by the local licensing authority to cover actual and necessary
expenses, subject to the following limitations:
(V) For a transfer of ownership, change of location, and license
merger and conversion pursuant to section 44-3-410 (1)(b), not to exceed
one thousand dollars.
SECTION 8. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 9-SENATE BILL 25-033 the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
James Rashad Coleman, Sr.
Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Esther van Mourik Vanessa Reilly
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 10-SENATE BILL 25-033