Second Regular Session Sixty-seventh General Assembly STATE OF COLORADO INTRODUCED LLS NO. 10-0668.01 Jery Payne HOUSE BILL 10-1150 HOUSE SPONSORSHIP Kerr J., DelGrosso, McNulty, Middleton SENATE SPONSORSHIP Tochtrop, House Committees Senate Committees Business Affairs and Labor A BILL FOR AN ACT Concerning a license for caterers to sell alcohol beverages at catered events. 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://www.leg.state.co.us/billsummaries.) The bill creates a new type of alcohol license that authorizes caterers to sell and serve alcohol where food is catered, subject to the following limitations: The caterer is required to be licensed under state health laws; No more than 25% of the caterer's total sales may occur at the food establishment; The caterer must obtain a special event permit to sell alcohol at a place open to the public; and The caterer must serve food to serve alcohol. In addition, the bill imposes an annual $350 state licensing fee and an annual $500 local licensing fee. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 12-47-103, Colorado Revised Statutes, is amended BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS to read: 12-47-103. Definitions. As used in this article and article 46 of this title, unless the context otherwise requires: (5.5) "Caterer" means a retail business that provides food for a private gathering or special event at a place chosen by the client. (23.7) "Place of service" means a place where food is provided or served for a special event or a place not open to the general public, but such place is not a caterer's primary food establishment. SECTION 2. 12-47-309 (1), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read: 12-47-309. Local licensing authority - applications - optional premises licenses. (1) A local licensing authority may issue only the following malt, vinous, and spirituous liquor licenses upon payment of the fee specified in section 12-47-505: (m) Caterer's license. SECTION 3. 12-47-401 (1), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read: 12-47-401. Classes of licenses. (1) For the purpose of regulating the manufacture, sale, and distribution of malt, vinous, and spirituous liquors, the state licensing authority in its discretion, upon application in the prescribed form made to it, may issue and grant to the applicant a license from any of the following classes, subject to the provisions and restrictions provided by this article: (u) Caterer's license. SECTION 4. Part 4 of article 47 of title 12, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 12-47-423. Caterer's license. (1) (a) A caterer's license may be issued to a person who operates a catering business to sell and serve malt, vinous, and spirituous liquors for consumption at the client's chosen place of service or at the caterer's food establishment. (b) A caterer is not eligible for a license pursuant to this section unless the caterer's food establishment is licensed pursuant to part 16 of article 4 of title 25, C.R.S. (c) A caterer is not eligible for a license pursuant to this section if more than twenty-five percent of the caterer's total sales, by dollar value, is for consumption at the caterer's food establishment. (2) (a) A caterer shall not sell alcohol beverages at a place open to the public unless a special event permit has been obtained pursuant to article 48 of this title for the catered event. (b) A caterer shall not serve alcohol beverages for consumption unless the caterer is also serving food. (3) A caterer selling alcohol beverages pursuant to this section shall purchase such alcohol beverages from a wholesaler or retail liquor store licensed pursuant to this article. (4) (a) Each caterer's license is granted for specific premises and issued in the name of the owner or lessee of the business, but the caterer may also serve alcohol at the client's chosen place of service. (b) Each caterer licensee shall manage or have a separate and distinct manager and shall register the manager of each liquor-licensed premises with the state and the local licensing authority. No person shall be a registered manager for more than one caterer's license. (c) The registered manager for each caterer's license or the caterer's licensee shall purchase malt, vinous, or spirituous liquors for one licensed premises only, and such purchases shall be separate and distinct from purchases for any other caterer's license. (d) When a person ceases to be a registered manager of a caterer's liquor-licensed premises, for whatever reason, the caterer's licensee shall notify the licensing authorities within five days and shall designate a new registered manager within thirty days. SECTION 5. 12-47-501 (1), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read: 12-47-501. State fees. (1) The following license fees shall be paid to the department of revenue annually in advance: (s) For each caterer's license, three hundred twenty-five dollars. SECTION 6. 12-47-505 (1), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read: 12-47-505. Local license fees. (1) The following license fees shall be paid to the treasurer of the municipality, city and county, or county where the licensed premises is located annually in advance: (p) For each caterer's license, five hundred dollars. SECTION 7. Act subject to petition - effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 11, 2010, if adjournment sine die is on May 12, 2010); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part shall not take effect unless approved by the people at the general election to be held in November 2010 and shall take effect on the date of the official declaration of the vote thereon by the governor.