SB 26-114

Senate Bill 26-114 allows Colorado spirit manufacturers to sell and serve their own alcohol products at up to three additional sales locations in addition to their main premises. It also permits these manufacturers to apply for a special permit to sell alcohol from wholesalers at their sites or approved sales rooms, provided they meet certain local zoning and public notice requirements. This bill is now signed into law, meaning that spirit manufacturers can start applying for the new permits and expanding their sales locations according to the outlined regulations.

Official Summary

Under current law, a licensed manufacturer of spirituous liquors (manufacturer) may conduct tastings of and sell the manufacturer's own spirituous liquors at the manufacturer's licensed premises or at one other approved sales room location. The bill authorizes the manufacturer to also conduct tastings of and sell the manufacturer's spirituous liquors at up to 2 approved other sales room locations.      The bill authorizes a manufacturer to apply for a permit from the state licensing authority to serve and sell alcohol beverages acquired from a licensed wholesaler at the manufacturer's premises or a sales room location. A copy of the permit application must be sent to the local licensing authority for comment, posted for 45 days in a conspicuous place at the location that is the subject of the application, and published in a local newspaper of general circulation.      Before issuing the permit, the state licensing authority shall consider:      A response from the local licensing authority concerning impacts on the surrounding neighborhood, including traffic, noise, and distance from schools;      Whether zoning, fire, and other requirements have been met; and      Public comments, if any.      The state licensing authority shall not issue the permit unless the applicant affirms that they have complied with local zoning restrictions, including requirements for distance from schools.      A manufacturer of spirituous liquors (manufacturer) that seeks to serve and sell alcohol beverages acquired from wholesalers licensed in the state (wholesaler) at the manufacturer's licensed premises and any approved sales room is required to apply for a permit from the local and state licensing authorities for on-premises consumption for each location where the manufacturer will serve and sell alcohol beverages acquired from a wholesaler. Prior to issuing the permit, the local licensing authority shall provide public notice and consider the reasonable requirements of the neighborhood, zoning restrictions, and other local licensing concerns. The bill includes fees that may be charged by a local licensing authority to issue the permit. Upon approval from the local licensing authority, a manufacturer shall apply to the state licensing authority for a state permit.     If the state permit application is approved:The manufacturer must serve sandwiches and light snacks if selling and serving alcohol beverages acquired from a wholesaler; licensed in the state; andThe proceeds from the sale of alcohol beverages acquired from wholesalers must not account for more than 50% of the gross annual revenue from alcohol beverage sales.     The state permit is valid until the expiration of the local permit or for one year after the date of issuance of the state permit, whichever is sooner, unless the permit is inactive, suspended, or revoked.      If a manufacturer does not obtain a permit from the local and state licensing authority to serve and sell alcohol beverages acquired from a wholesaler, under current law, the manufacturer may purchase and use common alcohol modifiers to combine with the manufacturer's spirituous liquors to produce cocktails for consumption on and off the sales room premises.(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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