SB 25-132
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-132: SPIRITUOUS LIQUOR MANUFACTURER T ASTINGS CONDUCT
Prime Sponsors:
Sen. Marchman; Gonzales J.
Rep. Soper; Titone
Published for: Senate Appropriations
Drafting number: LLS 25-0809
Fiscal Analyst:
John Armstrong, 303-866-6289
john.armstrong@coleg.gov
Version: First Revised Note
Date: April 7, 2025
Fiscal note status: The revised fiscal note reflects the introduced bill, as amended by the Senate Business,
Labor, and Technology Committee.
Summary Information
Overview. The bill expands the number of allowable tasting rooms operated by spirits manufacturers and
allows them to sell alcohol that they did not manufacture.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Revenue
State Expenditures
TABOR Refunds
Appropriations. For FY 2025-26, the bill requires an appropriation of $19,106 to the Department of
Revenue.
Table 1
State Fiscal Impacts
Type of Impact
1
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $23,104 $11,850
State Expenditures $23,104 $11,850
Transferred Funds $0 $0
Change in TABOR Refunds $23,104 $11,850
Change in State FTE 0.2 FTE 0.1 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
April 7, 2025 SB 25-132
Table 1A
State Revenue
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $0 $0
Cash Funds $23,104 $11,850
Total Revenue $23,104 $11,850
Table 1B
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $0 $0
Cash Funds $19,106 $9,851
Federal Funds $0 $0
Centrally Appropriated $3,998 $1,999
Total Expenditures $23,104 $11,850
Total FTE 0.2 FTE 0.1 FTE
Summary of Legislation
Under current law, spirits manufacturers may operate a sales room on their licensed premises
and one other location to sell spirits that they manufactured. The bill allows spirits
manufacturers to operate up to three sales rooms and creates a new permit which allows them
to sell alcoholic beverages acquired from wholesalers. These new permit holders may not derive
more than 50 percent of their gross revenues from sales of alcoholic beverages that they do not
manufacture. The bill also removes the requirement that cocktails made for tastings in one of
these sales rooms include a spirit produced by the manufacturer.
State Revenue
The bill will increase state revenue from liquor frees by by about $23,000 in FY 2025-26 and by
$12,000 in FY 2026-27 and ongoing. The Liquor Enforcement Division within the Department of
Revenue is expected to adjust its fee structures to cover the increased expenditures to
implement the bill, as outlined in the State Expenditures section. License fees are subject to
TABOR. Additional revenue will be credited to the Liquor Enforcement Division Cash Fund. Page 3
April 7, 2025 SB 25-132
State Expenditures
The bill increases state expenditures in the Department of Revenue by about $23,000 in
FY 2025-26 and by $12,000 in FY 2026-27 and ongoing. These costs, paid from the Liquor
Enforcement Division Cash Fund, are summarized in Table 2 and discussed below.
Table 2
State Expenditures
Department of Revenue
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $16,270 $8,135
Hourly Wages for Minor Operatives $2,244 $2,244
Computer Programming $1,120 $0
Centrally Appropriated Costs $5,996 $1,999
Total Costs $23,104 $11,850
Total FTE 0.2 FTE 0.1 FTE
Department of Revenue
The Department of Revenue requires staff, minor operatives, and computer programming to
implement the bill.
Staff
Assuming the bill results in approximately 130 new sales rooms, 0.2 FTE Criminal Investigator in
FY 2025-26 will perform initial inspections and compliance checks, anticipated to require 3 hours
total per sales room. In FY 2026-27 and ongoing, 0.1 Criminal Investigator will conduct annual
compliance checks at each location, anticipated to require 1 hour each. All Criminal Investigators
work in pairs for initial inspections and compliance checks for safety reasons.
Hourly Wages for Minor Operatives
DOR will require 78 hours annually for a minor operative, at a cost of $22 per hour, to assist with
compliance checks for the new sales rooms to ensure alcohol is not being sold to minors.
Computer Programming
In order to create the new permit, DOR will require approximately 40 hours of software
development and user testing, estimated at $28 per hour resulting in $1,120 for FY 2025-26
only. Page 4
April 7, 2025 SB 25-132
Centrally Appropriated Costs
Pursuant to a Joint Budget Committee policy, certain costs associated with this bill are
addressed through the annual budget process and centrally appropriated in the Long Bill or
supplemental appropriations bills, rather than in this bill. These costs, which may include
employee insurance, supplemental employee retirement payments, leased space, and indirect
cost assessments, are shown in the expenditure table above.
TABOR Refunds
The bill is expected to increase 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
March 2025 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, increased cash
fund revenue will reduce the amount of General Fund available to spend or save.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State Appropriations
For FY 2025-26, the bill requires an appropriation of $19,106 from the Liquor Enforcement
Division Cash Fund to the Department of Revenue, and 0.2 FTE.
State and Local Government Contacts
Counties
Municipalities
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.