HB 23-1061

House Bill 23-1061, which has been signed into law and will take effect on August 7, 2023, allows most retail businesses in Colorado that sell goods or services but not primarily food to obtain a permit for serving complimentary alcohol. This includes restrictions like limiting service hours to no more than four hours per day and 24 days per year, setting maximum drink sizes, and prohibiting sales of any alcoholic beverages. The law also bans charging entrance fees related to alcohol service and limits the number of people on premises when alcohol is served. This change affects a wide range of retail businesses beyond just art galleries, allowing them to offer free drinks under certain conditions while maintaining strict rules about serving times and quantities.

Official Summary

Under Colorado law, an art gallery may obtain a permit to serve complementary alcohol beverages, but a permit holder is prohibited from: Selling alcohol beverages by the drink; Serving alcohol beverages for more than 4 hours in a 24-hour period; Serving alcohol beverages more than 15 days per year; Charging an entrance fee or a cover charge in connection with offering complimentary alcohol beverages; Violating the "Colorado Liquor Code"; or Allowing more than 250 people to be on the premises at one time when alcohol beverages are being served. The act broadens this permit to allow most retail establishments to obtain the permit if the establishment conducts business at a physical building in Colorado, sells goods or services to the public at the location, and derives less than 50% of the establishment's gross sales of goods and services from the sale of food. The prohibitions for art gallery permit holders are not changed and apply to a retail establishment that obtains a permit; except that: The prohibition on selling alcohol is broadened to cover the sale of alcohol beverages in any form; The number of days that an establishment may serve alcohol beverages in a year is increased from 15 to 24 days; Maximum serving sizes are set for beer, wine, and spirits; A person is prohibited from holding the permit and another liquor license; Serving or distributing alcohol beverages is prohibited between 2 a.m. and 7 a.m.; and Serving underage guests is prohibited and underage servers are prohibited. To implement the act, $98, 744 is appropriated from the liquor enforcement division and state licensing authority cash fund to the department of revenue for use by the liquor and tobacco enforcement division. APPROVED by Governor June 2, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

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