Senate Bill25-033 Rerevised

A Bill for an Act

• Page 1, Line 101Concerning limitations on liquor-licensed drugstore

• Page 1, Line 102licenses.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

On and after the effective date of the bill, the bill prohibits the state and local licensing authorities (licensing authorities) from issuing a new liquor-licensed drugstore license (license). Licensing authorities may continue to renew existing licenses.

A person holding a license (licensee) is prohibited from changing the location of, merging, selling, converting, or transferring a license; except that a licensee that holds a license that was issued to an independent pharmacy before January 1, 2025, shall not, on or after the effective date of the bill, change the location of or merge or convert the license but may sell or transfer the license to another licensee that is an independent pharmacy that holds a license or to a person that does not already have a license.

The bill prohibits an owner, part owner, shareholder, or person interested directly or indirectly in a liquor-licensed drugstore from having an interest in more than 8 licenses.

Sections 3 through 7 of the bill make conforming amendments to account for the new restrictions on the license.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 44-3-103, add (21.3) as follows:

• Page 2, Line 344-3-103.  Definitions. As used in this article 3 and article 4 of this title 44, unless the context otherwise requires:

• Page 2, Line 4(21.3)  "Independent pharmacy" means a prescription drug

• Page 2, Line 5outlet privately owned by at least one licensed pharmacist with

• Page 2, Line 6no ownership interest by or affiliation with a chain or publicly owned pharmacy.

• Page 2, Line 7SECTION 2.  In Colorado Revised Statutes, 44-3-410, amend

• Page 2, Line 8(1)(a) and (7); repeal (1)(b), (4)(b)(IV), (4)(b)(V), and (4)(c); and add (4)(b)(VI) and (8) as follows:

• Page 2, Line 944-3-410.  Liquor-licensed drugstore license - multiple licenses

• Page 2, Line 10permitted - license renewals - independent pharmacies -

• Page 2, Line 11requirements - rules. (1) (a) (I)   A liquor-licensed drugstore license shall

• Page 2, Line 12be is issued to persons selling malt, vinous, and spirituous liquors in

• Page 2, Line 13sealed containers not to be consumed at the place where sold. On and

• Page 2, Line 14after July 1, 2016, except as permitted under subsection (1)(b) of this

• Page 2, Line 15section the effective date of this section, as amended, the state and

• Page 3, Line 1local licensing authorities shall not issue a any new liquor-licensed

• Page 3, Line 2drugstore license if the licensed premises for which a liquor-licensed drugstore license is sought is located: licenses.

• Page 3, Line 3(A)  Within one thousand five hundred feet of a retail liquor store licensed under section 44-3-409;

• Page 3, Line 4(B)  For a drugstore premises located in a municipality with a

• Page 3, Line 5population of ten thousand or fewer, within three thousand feet of a retail liquor store licensed under section 44-3-409; or

• Page 3, Line 6(C)  For a drugstore premises located in a municipality with a

• Page 3, Line 7population of ten thousand or fewer that is contiguous to the city and

• Page 3, Line 8county of Denver, within one thousand five hundred feet of a retail liquor store licensed under section 44-3-409.

• Page 3, Line 9(II)  Nothing in this subsection (1) prohibits:

• Page 3, Line 10(A)  The renewal or transfer of ownership of a liquor-licensed drugstore license initially issued prior to July 1, 2016.

• Page 3, Line 11(B)  A liquor-licensed drugstore licensee from allowing tastings on

• Page 3, Line 12the licensed premises if the applicable local licensing authority has

• Page 3, Line 13authorized the liquor-licensed drugstore to conduct tastings on its licensed premises in accordance with section 44-3-301 (10).

• Page 3, Line 14(b) (I)  On or after January 1, 2017, to qualify for an additional

• Page 3, Line 15liquor-licensed drugstore license under this section, a liquor-licensed

• Page 3, Line 16drugstore licensee, or a retail liquor store licensee that was licensed as a

• Page 3, Line 17liquor-licensed drugstore on February 21, 2016, must apply to the state

• Page 3, Line 18and local licensing authorities, as part of a single application, for a

• Page 3, Line 19transfer of ownership of at least two licensed retail liquor stores that were

• Page 3, Line 20licensed or had applied for a license on or before May 1, 2016, a change

• Page 3, Line 21of location of one of the retail liquor stores, and a merger and conversion

• Page 4, Line 1of the retail liquor store licenses into a single liquor-licensed drugstore

• Page 4, Line 2license. The applicant may apply for a transfer, change of location, and merger and conversion only if all of the following requirements are met:

• Page 4, Line 3(A)  The retail liquor stores that are the subject of the transfer of

• Page 4, Line 4ownership are located within the same local licensing authority

• Page 4, Line 5jurisdiction as the drugstore premises for which the applicant is seeking

• Page 4, Line 6a liquor-licensed drugstore license, and, if any retail liquor stores are

• Page 4, Line 7located within one thousand five hundred feet of the drugstore premises

• Page 4, Line 8or, for a drugstore premises located in a municipality with a population

• Page 4, Line 9of ten thousand or fewer, within three thousand feet of the drugstore

• Page 4, Line 10premises, the applicant applies to transfer ownership of all retail liquor

• Page 4, Line 11stores located within that distance. If there are no licensed retail liquor

• Page 4, Line 12stores or only one licensed retail liquor store within the same local

• Page 4, Line 13licensing authority jurisdiction as the drugstore premises for which a

• Page 4, Line 14liquor-licensed drugstore license is sought, the applicant shall apply to

• Page 4, Line 15transfer ownership of one or two retail liquor stores, as necessary, that are

• Page 4, Line 16located in the local licensing authority jurisdiction that is nearest to the jurisdiction in which the drugstore premises is located.

• Page 4, Line 17(B)  Upon transfer and conversion of the retail liquor store licenses

• Page 4, Line 18to a single liquor-licensed drugstore license, the drugstore premises for

• Page 4, Line 19which the liquor-licensed drugstore license is sought will be located at

• Page 4, Line 20least one thousand five hundred feet from all licensed retail liquor stores

• Page 4, Line 21that are within the same local licensing authority jurisdiction as the

• Page 4, Line 22drugstore premises or, for a drugstore premises located in a municipality

• Page 4, Line 23with a population of ten thousand or fewer, at least three thousand feet

• Page 4, Line 24from all licensed retail liquor stores that are within the same local

• Page 4, Line 25licensing authority jurisdiction as the drugstore premises.

• Page 5, Line 1(II)  For purposes of determining whether the distance

• Page 5, Line 2requirements specified in subsection (1)(b)(I) of this section are satisfied,

• Page 5, Line 3the distance shall be determined by a radius measurement that begins at

• Page 5, Line 4the principal doorway of the drugstore premises for which the application

• Page 5, Line 5is made and ends at the principal doorway of the licensed retail liquor store.

• Page 5, Line 6(III)  In making its determination on the transfer of ownership,

• Page 5, Line 7change of location, and license merger and conversion application, the

• Page 5, Line 8local licensing authority shall consider the reasonable requirements of the

• Page 5, Line 9neighborhood and the desires of the adult inhabitants in accordance with section 44-3-312.

• Page 5, Line 10(IV)  In addition to any other requirements for licensure under this

• Page 5, Line 11section or this article 3, a person applying for a new liquor-licensed

• Page 5, Line 12drugstore license in accordance with this subsection (1)(b) on or after

• Page 5, Line 13January 1, 2017, or to renew a liquor-licensed drugstore license issued on or after January 1, 2017, under this subsection (1)(b) must:

• Page 5, Line 14(A)  Provide evidence to the state and local licensing authorities

• Page 5, Line 15that at least twenty percent of the licensee's gross annual income derived

• Page 5, Line 16from total sales during the prior twelve months at the drugstore premises

• Page 5, Line 17for which a new or renewal licenses is sought is from the sale of food items, as defined by the state licensing authority by rule; and

• Page 5, Line 18(B)  Make and keep its premises open to the public.

• Page 5, Line 19(4) (b)  An owner, part owner, shareholder, or person interested

• Page 5, Line 20directly or indirectly in a liquor-licensed drugstore may have an interest in:

• Page 5, Line 21(IV)  For a liquor-licensed drugstore licensed on or before January

• Page 5, Line 221, 2016, or a liquor-licensed drugstore licensee that was licensed as a

• Page 6, Line 1liquor-licensed drugstore on February 21, 2016, that converted its license

• Page 6, Line 2to a retail liquor store license after February 21, 2016, and that applied on

• Page 6, Line 3or before May 1, 2017, to convert its retail liquor store license back to a

• Page 6, Line 4liquor-licensed drugstore license, additional liquor-licensed drugstore

• Page 6, Line 5licenses as follows, but only if obtained in accordance with subsection (1)(b) of this section:

• Page 6, Line 6(A)  On or after January 1, 2017, and before January 1, 2022, four

• Page 6, Line 7additional liquor-licensed drugstore licenses, for a maximum of five total liquor-licensed drugstore licenses;

• Page 6, Line 8(B)  On or after January 1, 2022, and before January 1, 2027, up

• Page 6, Line 9to seven additional liquor-licensed drugstore licenses, for a maximum of eight total liquor-licensed drugstore licenses;

• Page 6, Line 10(C)  On or after January 1, 2027, and before January 1, 2032, up

• Page 6, Line 11to twelve additional liquor-licensed drugstore licenses, for a maximum of thirteen total liquor-licensed drugstore licenses;

• Page 6, Line 12(D)  On or after January 1, 2032, and before January 1, 2037, up

• Page 6, Line 13to nineteen additional liquor-licensed drugstore licenses, for a maximum of twenty total liquor-licensed drugstore licenses; and

• Page 6, Line 14(E)  On or after January 1, 2037, an unlimited number of additional liquor-licensed drugstore licenses.

• Page 6, Line 15(V)  For a liquor-licensed drugstore that submitted an application

• Page 6, Line 16for a new liquor-licensed drugstore license before October 1, 2016,

• Page 6, Line 17additional liquor-licensed drugstore licenses as follows, but only if obtained in accordance with subsection (1)(b) of this section:

• Page 6, Line 18(A)  On or after January 1, 2019, and before January 1, 2022, four

• Page 6, Line 19additional liquor-licensed drugstore licenses, for a maximum of five total

• Page 6, Line 20liquor-licensed drugstore licenses;

• Page 7, Line 1(B)  On or after January 1, 2022, and before January 1, 2027, up

• Page 7, Line 2to seven additional liquor-licensed drugstore licenses, for a maximum of eight total liquor-licensed drugstore licenses;

• Page 7, Line 3(C)  On or after January 1, 2027, and before January 1, 2032, up

• Page 7, Line 4to twelve additional liquor-licensed drugstore licenses, for a maximum of thirteen total liquor-licensed drugstore licenses;

• Page 7, Line 5(D)  On or after January 1, 2032, and before January 1, 2037, up

• Page 7, Line 6to nineteen additional liquor-licensed drugstore licenses, for a maximum of twenty total liquor-licensed drugstore licenses; and

• Page 7, Line 7(E)  On or after January 1, 2037, an unlimited number of additional liquor-licensed drugstore licenses.

• Page 7, Line 8(VI)  No more than eight liquor-licensed drugstore licenses.

• Page 7, Line 9(c)  Subsection (4)(b)(V) of this section does not apply to a

• Page 7, Line 10liquor-licensed drugstore licensee that was licensed as a liquor-licensed

• Page 7, Line 11drugstore on February 21, 2016, that converted its license to a retail liquor

• Page 7, Line 12store license after February 21, 2016, and that applied on or before May

• Page 7, Line 131, 2017, to convert its retail liquor store license back to a liquor-licensed drugstore license.

• Page 7, Line 14(7)  A person licensed under this section that obtains obtained

• Page 7, Line 15additional liquor-licensed drugstore licenses in accordance with

• Page 7, Line 16subsection (4)(b)(IV) or (4)(b)(V) of this section may operate under a

• Page 7, Line 17single or consolidated corporate entity but shall not commingle purchases

• Page 7, Line 18of or credit extensions for purchases of malt, vinous, or spirituous liquors

• Page 7, Line 19from a wholesaler licensed under this article 3 for more than one licensed

• Page 7, Line 20premises. A wholesaler licensed under this article 3 shall not base the

• Page 7, Line 21price for the malt, vinous, or spirituous liquors it sells to a liquor-licensed

• Page 8, Line 1drugstore licensed under this section on the total volume of malt, vinous,

• Page 8, Line 2or spirituous liquors that the licensee purchases for multiple licensed premises.

• Page 8, Line 3(8) (a)  The state or a local licensing authority may renew

• Page 8, Line 4a liquor-licensed drugstore license pursuant to section

• Page 8, Line 544-3-302. In addition to any other requirements for renewal, a

• Page 8, Line 6person applying to renew a liquor-licensed drugstore license

• Page 8, Line 7issued on or after January 1, 2017, but issued before the effective date of this section, as amended, shall:

• Page 8, Line 8(I)  Provide evidence to the state and local licensing

• Page 8, Line 9authorities that, with respect to the total sales made during

• Page 8, Line 10the prior twelve months at the drugstore premises for which the

• Page 8, Line 11renewal license is sought, at least twenty percent of the

• Page 8, Line 12licensee's gross annual income is derived from the sale of food items, as defined by the state licensing authority by rule; and

• Page 8, Line 13(II)  Make and keep the licensee's premises open to the public.

• Page 8, Line 14(b) (I)  On and after the effective date of this section, as

• Page 8, Line 15amended, a liquor-licensed drugstore licensee shall not merge,

• Page 8, Line 16sell, transfer, convert, or change the location of a liquor-licensed drugstore license.

• Page 8, Line 17(II)  Notwithstanding subsection (8)(b)(I) of this section, a

• Page 8, Line 18liquor-licensed drugstore licensee that holds a liquor-licensed

• Page 8, Line 19drugstore license that was issued to an independent pharmacy

• Page 8, Line 20before January 1, 2025, may change the location of or sell or

• Page 8, Line 21transfer the license to another independent pharmacy that

• Page 8, Line 22holds a liquor-licensed drugstore license or to a person that

• Page 9, Line 1does not already hold or have an interest in a liquor-licensed drugstore license.

• Page 9, Line 2SECTION 3.  In Colorado Revised Statutes, 44-3-303, amend (1)(c)(I) and (2); and repeal (1)(c)(II) as follows:

• Page 9, Line 344-3-303.  Transfer of ownership and temporary permits.

• Page 9, Line 4(1) (c) (I)  Except as provided in subsection (1)(c)(II) of this section, for

• Page 9, Line 5any other For any transfer of ownership, application must be made to the

• Page 9, Line 6state and local licensing authorities on forms prepared and furnished by

• Page 9, Line 7the state licensing authority. In determining whether to permit a transfer

• Page 9, Line 8of ownership, the licensing authorities shall consider only the

• Page 9, Line 9requirements of section 44-3-307 and 1 CCR 203-2, rule 47-302, entitled

• Page 9, Line 10"Changing, Altering, or Modifying Licensed Premises", or any analogous

• Page 9, Line 11successor rule. The local licensing authority may conduct a hearing on the

• Page 9, Line 12application for transfer of ownership after providing notice in accordance

• Page 9, Line 13with subsection (1)(c)(III) of this section. Any A transfer of ownership

• Page 9, Line 14hearing by the state licensing authority must shall be held in accordance with section 44-3-305 (2).

• Page 9, Line 15(II)  A license merger and conversion as provided for in section

• Page 9, Line 1644-3-410 (1)(b) includes a transfer of ownership of at least two retail

• Page 9, Line 17liquor stores, a change of location of one of the retail liquor stores, and

• Page 9, Line 18a merger and conversion of the retail liquor store licenses into a single

• Page 9, Line 19liquor-licensed drugstore license, all as part of a single transaction, and

• Page 9, Line 20the liquor-licensed drugstore applicant need not apply separately for a

• Page 9, Line 21transfer of ownership under this section. The liquor-licensed drugstore

• Page 9, Line 22applying for a license merger and conversion pursuant to section

• Page 9, Line 2344-3-410 (1)(b) is ineligible for a temporary permit pursuant to this

• Page 9, Line 24section. The local licensing authority shall consider the reasonable

• Page 10, Line 1requirements of the neighborhood pursuant to section 44-3-312 when

• Page 10, Line 2making a determination on the merger and conversion of the retail liquor

• Page 10, Line 3store licenses into a single liquor-licensed drugstore license. The local

• Page 10, Line 4licensing authority may hold a hearing on the application for the license

• Page 10, Line 5merger and conversion after providing notice in accordance with subsection (1)(c)(III) of this section.

• Page 10, Line 6(2)  Notwithstanding any provision of this article 3 to the contrary,

• Page 10, Line 7a local licensing authority may issue a temporary permit to a transferee of

• Page 10, Line 8any retail class of alcohol beverage license issued by the local licensing

• Page 10, Line 9authority pursuant to this article 3 or article 4 of this title 44. except that

• Page 10, Line 10a local licensing authority shall not issue a temporary permit to a

• Page 10, Line 11liquor-licensed drugstore that has acquired ownership of licensed retail

• Page 10, Line 12liquor stores in accordance with section 44-3-410 (1)(b). A temporary

• Page 10, Line 13permit authorizes a transferee to continue selling alcohol beverages as

• Page 10, Line 14permitted under the permanent license during the period in which an application to transfer the ownership of the license is pending.

• Page 10, Line 15SECTION 4.  In Colorado Revised Statutes, 44-3-312, amend (2)(a) as follows:

• Page 10, Line 1644-3-312.  Results of investigation - decision of authorities.

• Page 10, Line 17(2) (a)  Before entering any a decision approving or denying the an

• Page 10, Line 18application, the a local licensing authority shall consider, except where

• Page 10, Line 19this article 3 specifically provides otherwise, the facts and evidence

• Page 10, Line 20adduced as a result of its investigation, as well as any other facts; the

• Page 10, Line 21reasonable requirements of the neighborhood for the type of license for

• Page 10, Line 22which application has been made; the desires of the adult inhabitants; the

• Page 10, Line 23number, type, and availability of alcohol beverage outlets located in or

• Page 10, Line 24near the neighborhood under consideration; and any other pertinent

• Page 11, Line 1matters affecting the qualifications of the applicant for the conduct of the

• Page 11, Line 2type of business proposed; except that the reasonable requirements of the

• Page 11, Line 3neighborhood shall not be considered in the issuance of a club liquor

• Page 11, Line 4license. For the merger and conversion of retail liquor store licenses to a

• Page 11, Line 5single liquor-licensed drugstore license in accordance with section

• Page 11, Line 644-3-410 (1)(b), the local licensing authority shall consider the reasonable

• Page 11, Line 7requirements of the neighborhood and the desires of the adult inhabitants of the neighborhood.

• Page 11, Line 8SECTION 5.  In Colorado Revised Statutes, 44-3-409, repeal (5) as follows:

• Page 11, Line 944-3-409.  Retail liquor store license - rules - definitions. (5)  A

• Page 11, Line 10liquor-licensed drugstore may apply to the state and local licensing

• Page 11, Line 11authorities, as part of a single application, for a merger and conversion of

• Page 11, Line 12retail liquor store licenses to a single liquor-licensed drugstore license as provided in section 44-3-410 (1)(b).

• Page 11, Line 13SECTION 6.  In Colorado Revised Statutes, 44-3-501, repeal (3)(a)(XVI) as follows:

• Page 11, Line 1444-3-501.  State fees - rules. (3) (a)  The state licensing authority

• Page 11, Line 15shall establish fees for processing the following types of applications,

• Page 11, Line 16notices, or reports required to be submitted to the state licensing authority:

• Page 11, Line 17(XVI)  Applications for transfer of ownership, change of location, and license merger and conversion pursuant to section 44-3-410 (1)(b);

• Page 11, Line 18SECTION 7.  In Colorado Revised Statutes, 44-3-505, repeal (4)(a)(V) as follows:

• Page 11, Line 1944-3-505.  Local license fees. (4) (a)  Each application for a

• Page 11, Line 20license provided for in this article 3 and article 4 of this title 44 filed with

• Page 12, Line 1a local licensing authority must be accompanied by an application fee in

• Page 12, Line 2an amount determined by the local licensing authority to cover actual and necessary expenses, subject to the following limitations:

• Page 12, Line 3(V)  For a transfer of ownership, change of location, and license

• Page 12, Line 4merger and conversion pursuant to section 44-3-410 (1)(b), not to exceed one thousand dollars.

• Page 12, Line 5SECTION 8.  Safety clause. The general assembly finds,

• Page 12, Line 6determines, and declares that this act is necessary for the immediate

• Page 12, Line 7preservation of the public peace, health, or safety or for appropriations for

• Page 12, Line 8the support and maintenance of the departments of the state and state institutions.