SB 17-199

Senate Bill 17-199, which has been signed into law, allows existing liquor store owners who are Colorado residents and have been licensed since before January 1, 2016, to open additional stores over time. These new stores must be a certain distance away from other liquor stores (1,500 feet in most areas, but 3,000 feet in smaller towns). The law also sets limits on how much non-alcoholic product revenue can make up the total sales of these stores and restricts self-checkout for alcohol purchases. This bill affects current liquor store owners looking to expand their business and could lead to more liquor stores opening across Colorado over the next several years.

Official Summary

Under current law, a retail liquor store licensee that was licensed on or before January 1, 2016, and is a Colorado resident is permitted to obtain one additional retail liquor store license on or after January 1, 2017; 2 additional retail liquor store licenses on or after January 1, 2022; and 3 additional retail liquor store licenses on or after January 1, 2027. With regard to additional retail liquor store licenses, the premises cannot be located within 1,500 feet of any other licensed retail liquor store in the same licensing jurisdiction or, if within a municipality with a population of not more than 10,000 people, the premises cannot be located within 3,000 feet of any other licensed retail liquor store in the same licensing jurisdiction. Also, in addition to selling malt, vinous, and spirituous liquors, a retail liquor store may sell nonalcohol products, but only if the sales revenues from nonalcohol products do not exceed 20% of the store's total annual gross sales revenues. The bill excludes from the calculation of sales revenues from nonalcohol products revenues from the sale of lottery products, cigarettes, tobacco products, nicotine products, ice, and nonalcohol beverages. With regard to multiple licenses, the bill retains the ability for a retail liquor store licensee that is a Colorado resident to obtain one additional retail liquor store license through July 1, 2017, if the new premises satisfies the distance requirements, and starting July 1, 2017, retains the distance requirements and replaces the current time periods and additional license provisions with a structure that mirrors the tiered structure for liquor-licensed drugstores to obtain additional licenses, as follows: For a retail liquor store licensee licensed as of January 1, 2017, that has been a Colorado resident for at least 2 years or has operated a business in Colorado for at least 10 years, in order to obtain an additional retail liquor store license on or after July 1, 2017, the applicant must apply to transfer ownership of 2 licensed retail liquor store licenses within the same local licensing jurisdiction as the premises for which a new license is sought and merge the 2 licenses into a single retail liquor store license; A retail liquor store that qualifies for additional retail liquor store licenses is eligible to obtain: 4 additional licenses, for a total of 5 retail liquor store licenses, on or after July 1, 2017; 7 additional licenses, for a total of 8 retail liquor store licenses, on or after January 1, 2022; 12 additional licenses, for a total of 13 retail liquor store licenses, on or after January 1, 2027; 19 additional licenses, for a total of 20 retail liquor store licenses, on or after January 1, 2032; and an unlimited number of additional retail liquor store licenses, on or after January 1, 2037. A retail liquor store is prohibited from allowing customers to use a self-checkout to complete an alcohol beverage purchase. A retail liquor store is required to: Verify the age of a customer attempting to purchase an alcohol beverage by examining the customer's valid identification; and Maintain certification as a responsible alcohol beverage vendor. An employee of a retail liquor store who is under 21 years of age cannot deliver or otherwise have contact with alcohol beverages offered for sale on, or sold and removed from, the licensed premises. (Note: This summary applies to this bill as introduced.)

Related Legislation

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