SB 24-231

Senate Bill 24-231, which has been approved by the governor and will take effect on August 7, 2024, makes several changes to Colorado’s alcohol laws. It separates licenses for lodging facilities and entertainment facilities into distinct categories, introduces new catering and shipping licenses, and increases the annual purchase limit from retail liquor stores for certain retailers from $2,000 to $7,000, adjusted annually for inflation. The bill also allows breweries, wineries, and distilleries to operate up to two noncontiguous locations with an additional fee and permits off-premises retailers to host tastings earlier in the day. Additionally, it simplifies some licensing processes and requirements for various alcohol-related businesses, including wholesalers and arts licensees. This bill affects a wide range of alcohol beverage industry stakeholders in Colorado.

Official Summary

In current law, both a lodging facility and an entertainment facility are licensed as a lodging and entertainment facility licensee. The acts converts the licenses of lodging facilities to lodging facility licenses and the licenses of entertainment facilities to entertainment facility licenses. Additionally, the act creates a new catering license and an alcohol beverage shipper license. The act allows a brewery, a limited winery, and a distillery to manufacture alcohol beverages at up to 2 noncontiguous locations and sets an annual fee for such operations. Current law limits the amount of alcohol beverages certain retailers can purchase from retail liquor stores, liquor-licensed drugstores, and fermented malt beverage and wine retailers to $2,000 each year. The act increases the cap to $7,000 and requires the state licensing authority to annually adjust the cap consistent with inflation. For events where customers may consume alcohol beverages on the premises of an off-premises retailer, the act: Allows an off-premises retailer to conduct tastings; Allows tastings for all authorized retailers to begin at 10 a.m. instead of 11 a.m.; Allows retail liquor stores to hold educational classes; and Allows a distiller that operates a sales room to purchase and use common alcohol modifiers to mix with its spirituous liquors to produce cocktails. Under current law, liquor licenses are valid for a one-year period. The act allows certain qualifying licensees to apply for a 2-year license. The act also requires the state licensing authority to study the feasibility of adopting an online application and renewal system. The act removes the requirement that a local licensing authority schedule a public hearing on an application for a new retail liquor license. The act changes the requirement for a festival permittee to notify the state and local licensing authorities of the location and dates the licensee plans to hold multiple festivals from 30 business days to 30 calendar days before each festival. Regarding wholesalers, the act allows wholesalers of vinous or spirituous liquors to obtain an importer's license and allows all wholesalers to hold trade show events. The act allows a retail liquor store going out of business to sell its inventory to another retail liquor store. The act specifies that a liquor-licensed drugstore's use of an electronic funds transfer is not an extension of credit. The act allows an arts licensee to place limited advertising of the availability of alcohol beverages for sale on the licensed premises while an artistic or cultural production or performance is taking place. The act allows alcohol beverage sales on Christmas. APPROVED by Governor May 18, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)

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