New Legislation for Distillery Liquor Licenses Signed
The bill creates a new liquor license for spirituous distilleries so that they may operate a pub that serves alcoholic beverages on the premises. The license would be subject to needs and desires. Requires 15% of food sales. Governor Hickenlooper signed the legislation on April 24, 2015. Read the Bill
It reads, in part:
12-47-424. Distillery pub license – legislative declaration -definition.
(1) THE GENERAL ASSEMBLY FINDS AND DETERMINES THAT:
(a) COLORADO IS A STATE THAT WELCOMES AND ENCOURAGES ENTREPRENEURS AND NEW BUSINESS OPPORTUNITIES;
(b) CURRENTLY, MANUFACTURING OF SPIRITUOUS LIQUORS BY PERSONS LICENSED AS MANUFACTURERS PURSUANT TO SECTION 12-47-402 IS A THRIVING INDUSTRY, WITH NEW DISTILLERIES OPENING THROUGHOUT THE STATE AND INCREASING THE AVAILABILITY OF COLORADO-PRODUCED CRAFT SPIRITS BOTH WITHIN AND OUTSIDE THE STATE;
(c) THE SPIRITUOUS LIQUORS MANUFACTURING BUSINESS FOCUSES PRIMARILY ON PRODUCING A SPIRITUOUS LIQUOR PRODUCT THAT THE LICENSED SPIRITS MANUFACTURER CAN THEN SELL AND DISTRIBUTE,THROUGH A WHOLESALER, THROUGHOUT THE STATE AND IN OTHER STATES TO RETAIL OUTLETS;
(d) WHILE LICENSED SPIRITS MANUFACTURERS ARE PERMITTED TO SELL THEIR PRODUCTS DIRECTLY TO CONSUMERS, THE MAJORITY OF THE MANUFACTURING BUSINESS IS SELLING THE BULK OF A MANUFACTURER’S PRODUCT TO RETAIL OUTLETS THAT THEN SELL THE PRODUCT TO CONSUMERS;
(e) ON THE OTHER HAND, THE MAIN FOCUS OF A DISTILLERY PUB BUSINESS AUTHORIZED BY THIS SECTION IS TO OPERATE A LOCAL PUB IN WHICH FOOD AND ALCOHOL BEVERAGES, INCLUDING A SMALL QUANTITY OF SPIRITUOUS LIQUORS FERMENTED AND DISTILLED ON SITE, ARE SOLD AND SERVED FOR ON-PREMISES CONSUMPTION;
(f) WHILE A DISTILLERY PUB IS ALLOWED TO PRODUCE, SERVE, AND DISTRIBUTE ITS OWN SPIRITUOUS LIQUORS, UNLIKE A LICENSED SPIRITS MANUFACTURER, THE PRODUCTION LEVEL FOR A DISTILLERY PUB IS CAPPED, AND THE ABILITY TO DISTRIBUTE TO RETAIL OUTLETS IS GREATLY RESTRICTED, THEREBY ESTABLISHING A NEW BUSINESS MODEL THAT IS DISTINCT FROM, AND SERVES A DIFFERENT CLIENTELE THAN, A LICENSED SPIRITS MANUFACTURER;
(g) ADDITIONALLY, UNLIKE A LICENSED SPIRITS MANUFACTURER, WHICH IS ONLY REQUIRED TO OBTAIN A LICENSE FROM THE STATE LICENSING AUTHORITY, A DISTILLERY PUB MUST OBTAIN BOTH A STATE AND LOCAL LICENSE AFTER DEMONSTRATING THAT THE DISTILLERY PUB MEETS THE REASONABLE REQUIREMENTS AND THE DESIRES OF THE ADULT INHABITANTS OF THE NEIGHBORHOOD IN WHICH IT WILL BE SITUATED; AND
(h) IT IS IMPORTANT TO ENCOURAGE THE NEW DISTILLERY PUB BUSINESS MODEL, WHICH WILL ADD TO THE THRIVING CRAFT SPIRITS INDUSTRY IN THIS STATE WITHOUT DISRUPTING THE EVER-GROWING SPIRITUOUS LIQUORS MANUFACTURING INDUSTRY.
(2) A DISTILLERY PUB LICENSE MAY BE ISSUED TO ANY PERSON OPERATING A DISTILLERY PUB AND ALSO SELLING FOOD AND ALCOHOL BEVERAGES FOR CONSUMPTION ON THE PREMISES. AT LEAST FIFTEEN PERCENT OF THE GROSS ON-PREMISES FOOD AND ALCOHOL BEVERAGE INCOME OF THE LICENSED DISTILLERY PUB MUST BE FROM THE SALE OF FOOD. FOR PURPOSES OF THIS SUBSECTION (2), “FOOD” MEANS A QUANTITY OF FOODSTUFFS OF A NATURE THAT IS ORDINARILY CONSUMED BY AN INDIVIDUAL AT REGULAR INTERVALS FOR THE PURPOSE OF SUSTENANCE.
(3) DURING THE HOURS ESTABLISHED IN SECTION 12-47-901(5) (b),
A LICENSED DISTILLERY PUB MAY, WITH REGARD TO SPIRITUOUS LIQUORS FERMENTED AND DISTILLED BY THE DISTILLERY PUB LICENSEE ON THE LICENSED PREMISES:
(a) FURNISH ITS SPIRITUOUS LIQUORS FOR CONSUMPTION ON THE
PREMISES;
(b) SELL ITS SPIRITUOUS LIQUORS TO INDEPENDENT WHOLESALERS FOR DISTRIBUTION TO LICENSED RETAILERS;
(c) SELL ITS SPIRITUOUS LIQUORS TO THE PUBLIC IN SEALED CONTAINERS FOR OFF-PREMISES CONSUMPTION, AS LONG AS THE SPIRITUOUS LIQUORS ARE FERMENTED, DISTILLED, AND PACKAGED ON THE LICENSED PREMISES BY THE LICENSEE; OR
(d) SELL ITS SPIRITUOUS LIQUORS AT WHOLESALE TO LICENSED
RETAILERS IN AN AMOUNT UP TO TWO THOUSAND SEVEN HUNDRED LITERS PER SPIRITUOUS LIQUOR PRODUCT PER CALENDAR YEAR.
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