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The cannabis industry wasn’t the only highly-regulated industry with significant legal changes taking place in the last days of the 2024 legislative session in Colorado. Signed into law on May 18, 2024 and taking effect August 7, 2024, here are some highlights of SB24-231:
Lodging and Entertainment Facility Licenses are phasing out - effective August 6, 2024, Lodging and Entertainment Facilities Licenses are split into 2 distinct license categories. If you currently hold a Lodging and Entertainment Facility License, it will remain in good standing until its expiration, even if it expires past August 6, 2024. However, when it’s time to renew, you will need to select either a Lodging Facility or an Entertainment Facility license in order to keep operating.
2 new liquor licenses: Catering License and Alcohol Beverage Shipper License.
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 retailers can purchase from retail liquor stores, liquor-licensed drugstores, and fermented malt beverage and wine retailers to $2,000 each year. This law increases the cap to $7,000 and requires the state to annually adjust the cap consistent with inflation.
State law no longer requires a local licensing authority schedule a public hearing on an application for a new retail liquor license (although they may do so).
Festival permittees shall notify the state and local licensing authorities of the location and dates the licensee plans to hold multiple festivals 30 calendar days before each festival (used to be 30 business days)
Allows a retail liquor store going out of business to sell its inventory to another retail liquor store.
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.
Allows certain qualifying licensees to apply for a 2-year license instead of an annual license.
Allows wholesalers of vinous or spirituous liquors to obtain an importer's license and allows all wholesalers to hold trade show events.
For events where customers may consume alcohol beverages on the premises of an off-premises retailer, the new law allows:
An off-premises retailer to conduct tastings;
Tastings for all authorized retailers to begin at 10 a.m. instead of 11 a.m.;
Retail liquor stores to hold educational classes; and
A distiller that operates a sales room to purchase and use common alcohol modifiers to mix with its spirituous liquors to produce cocktails (but not sell those modifiers separately).
Last but not least, this law allows alcohol beverage sales on Christmas!
Remember, SB24-231 is 35 pages long and covers a wide variety of topics impacting all facets of the liquor industry, so for more nuanced information, schedule a consultation with an experienced regulatory attorney to discuss. Stay tuned for more guidance as regulations and updated applications roll out to implement these changes.
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