This August, Colorado will see a major overhaul in its alcohol-sales laws, with 31 changes taking effect that will impact liquor stores, distilleries, caterers, and more. This legislative update comes after significant debate during the final month of the 2024 session, though the changes that made it through are largely uncontroversial.
The Sum & Substance business news site reported that the end of the session was marked by heated discussions over various proposed changes to alcohol laws. Notably, efforts to curb liquor sales at grocery stores and to introduce new fees to fund alcohol-disorder treatment programs were ultimately rejected. Despite both bills initially passing in their respective chambers, they faced substantial opposition and did not make it to the final law.
Instead, legislators passed a measure with broad bipartisan support that enacts recommendations from a governor-created advisory group. The aim was to modernize and streamline licensing and sales laws, reflecting 15 months of deliberations by the Liquor Advisory Group established by Governor Jared Polis.
Among the 31 changes that will become law on August 7, some of the most significant include allowing licensed retailers to sell alcoholic beverages on Christmas, prohibiting liquor-license holders from selling marijuana products, and allowing alcohol retailers to renew their licenses every two years instead of annually. Additionally, off-premises retailers can conduct tastings and educational classes starting as early as 10 a.m., and distillery sales rooms can combine common beverages with their products to produce cocktails for on-premises consumption. Breweries and distilleries can operate two manufacturing facilities within 10 miles of each other under one license, similar to the current allowance for wineries. New licenses will be created for shippers selling products from certain wineries and for catering companies to serve alcohol at events.
One of the more debated provisions was the increase in the cap on alcohol purchases by on-premises retailers from retail stores, raising it from $2,000 to $7,000 annually. This change aims to help bars and restaurants manage stock shortages but faced opposition from unions and distributors concerned about job losses and the potential erosion of the three-tiered system of alcohol distribution.
Additionally, a proposed change to allow liquor-selling establishments to remain open until 4 a.m., provided they stop alcohol sales at 2 a.m., did not make it into the final law. Public-safety groups and Mothers Against Drunk Driving strongly opposed this amendment, which was ultimately removed. However, legislators plan to revisit the issue in 2025.
Another significant change solidified by the legislature this session was the permanent allowance for restaurants to sell to-go alcoholic beverages. This practice, initially permitted by Governor Polis at the start of the pandemic, has been a lifeline for restaurants adapting to new consumer behaviors. The law requires an additional, low-cost license and is seen as a critical revenue stream for struggling eateries.
“Restaurants lost more than $3 billion in revenue during 2020 alone and have struggled with inflationary pressures, labor shortages, and operational uncertainty ever since,” said Colorado Restaurant Association President/CEO Sonia Riggs. “Alcohol to go from restaurants is a win-win; it’s extremely popular with the public and provides restaurants with a measure of confidence, knowing they can factor in this additional revenue stream as they make plans for the future.”
As these changes take effect, Colorado’s alcohol industry and consumers alike will need to adapt to the new regulations. The goal of these updates is to create a more efficient and modern framework for alcohol sales and licensing, reflecting the evolving landscape of the industry. While some contentious issues remain unresolved, the consensus-driven approach of the current changes marks a significant step forward for Colorado's alcohol laws.
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