Local Licensing Authority Agenda and Packet 2021 08 23

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+++iii.................. ...............++++++. CML LEGAL CORNER ............♦......... ........................ ........................ The erosion of the fixed licensed premises for liquor licensees By Laurel Witt, CML associate counsel The Colorado Liquor Code has traditionally required bars and restaurants to serve alcohol beverages in one clearly identifiable location under the control of one licensee. This year the General Assembly decided to pick away at the idea of a fixed licensed premises by permitting multiple licensees to sell liquor at both alcohol festivals and in communal dining areas. Alcohol festivals law lets liquor licensees join permitted festivals anywhere in the state During the 2021 legislative session, the legislature amended the liquor code in Senate Bill 21-082 to allow seven new categories of liquor licensees, including bars and restaurants, to hold festivals in public spaces, once permitted by the state, up to nine times in a twelve-month period. Previously, limited wineries and wine manufacturers were the only license type to be able to apply for a festival permit. This new permit will allow licensees to sell and serve alcohol at the festival location just as they would be able to do at their regular licensed premises. Additionally, the applicant may invite other licensees, from anywhere in the state, to participate in the same festival at the same time and location Setting guardrails for alcohol festivals The state Department of Revenue, Liquor Enforcement Division (LED) is currently working to develop new rules for this expanded permit. The LED permit will likely require applicants to provide names and contact information for all licensees invited to the festival, require those licensees provide proof that they have a license in their locality, explain how the applicant will control the space, show that the applicant has approval to use the space, and provide a diagram of the proposed event. LED will share these details with the local licensing authority of the location of the festival. If a licensee violates any of the state rules and the state can identify which licensee committed the violation, then that licensee will be responsible for the violation. If the state cannot determine which licensee committed the violation, then all the licensees at the event will be responsible, which is an agreed upon condition in the permit application. LED aims to make the new rules effective in January. Authority for local permitting CIVIL persuaded the sponsors of the bill to include a local permitting process, should a municipality choose to, which would allow municipalities to regulate these festivals in a manner that fits the local community. Ideas for permit requirements include: information of all licenses in advance of each festival, a permit fee to cover the cost of enforcement, notifications and enforcement information for any liquor license violations, controlled access points including ropes and signs, security personnel, trash removal, noise level permits, and more. If the local licensing authority decides not to implement a permit system, the licensee need only get a state permit to have the festivals. Note, neither a winery licensee nor an applicant for a special event permit need obtain a local festival permit. State legislation permits multiple liquor licensees to serve in "communal dining" areas HB21-1027 started out as simply a bill to extend the authority of bars, restaurants, and others to offer take-out alcohol beverages through July 1, 2025. The legislature, in the final hours of session, added a section to the legislation that allows for communal outdoor dining areas. Prior to this bill, an outdoor dining area was required to be a part of the licensed premises of an individual licensee. This bill, however, allows a space to be used by two or more liquor licensees for alcohol service if the licensees are located within 1,000 feet of the communal dining area. State and local licensing authorities both play a role in approving a communal dining area, and any licensee wishing to participate must file for a traditional modification of premises approval in order to do so. The local licensing authority may approve the applicant's security and control plans related to communal dining. LED is currently in the stakeholder engagement and review phase of rulemaking for communal dining and, for now, requests licensees to operate under Emergency Regulation 47-1103, which adopted temporary modifications for communal dining areas and public consumption during the pandemic. Note: This column is not intended and should not be taken as legal advice. Municipal officials are always encouraged to consult with their own attorney. CIVIL Newsletter