First Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 11-0876.01 Christy Chase HOUSE BILL 11-1284 HOUSE SPONSORSHIP Liston and Duran, Balmer, Beezley, Casso, Looper, Massey, Miklosi, Priola, Ramirez, Stephens, Swalm SENATE SPONSORSHIP Cadman, House Committees Senate Committees Economic and Business Development A BILL FOR AN ACT Concerning the regulation of alcohol beverages. 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.) Current law contains a separate category of licenses for establishments manufacturing or selling fermented malt beverages, which is beer with an alcohol content of 3.2% or less by weight (3.2% beer), as distinguished from licenses that permit the manufacture or sale of other alcohol beverages with higher alcohol content, including malt liquor (full-strength beer), wine, and spirits. Persons licensed under the "Colorado Beer Code" (beer code) may manufacture or sell only 3.2% beer, and persons licensed under the "Colorado Liquor Code" (liquor code) may manufacture or sell only full-strength beer. Additionally, current law requires the executive director of the department of revenue, who is the state licensing authority for purposes of alcohol beverage regulation, to adopt rules regarding the testing of the alcohol content of malt liquor and fermented malt beverages sold by persons licensed under the liquor code or the beer code. Finally, current law prohibits the sale of 3.2% beer at retail between 12 midnight and 5 a.m. Section 2 of the bill eliminates the maximum alcohol content of fermented malt beverages, as defined under the beer code, thereby allowing persons licensed under the beer code to manufacture or sell full-strength beer. Section 4 reduces the minimum alcohol content of malt liquor, as defined under the liquor code, to 0.5%, thereby allowing persons licensed under the liquor code to manufacture or sell 3.2% beer. Section 3 permits an employee of a retailer licensed under the beer code who is at least 18 years of age but less than 21 years of age to sell or dispense beer and check age identification of purchasers if the licensee can document that the employee has complied with server and seller training program requirements established by the director of the liquor enforcement division in the department of revenue or is supervised by a person who is on the premises and is at least 21 years of age. Section 5 allows the state licensing authority to modify or repeal alcohol content testing rules as necessary based on the elimination of the distinction between 3.2% beer and full-strength beer. Persons licensed to sell beer at retail can only do so between the hours of 8 a.m. and 12 midnight under section 7 of the bill. The remaining sections of the bill contain conforming or technical amendments to provisions in the beer and liquor codes. The bill takes effect July 1, 2012. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 12-46-102, Colorado Revised Statutes, is amended to read: 12-46-102. Legislative declaration. (1) (a) The general assembly hereby declares that it is in the public interest that fermented malt beverages shall be manufactured, imported, and sold only by persons licensed as provided in this article and article 47 of this title. The general assembly further declares that it is lawful to manufacture and sell fermented malt beverages containing not more than three and two-tenths percent alcohol by weight subject to the provisions of this article and applicable provisions of articles 47 and 48 of this title. (b) The general assembly recognizes that since the federal government required the state to raise its minimum age for the consumption of fermented malt beverages to twenty-one years of age, the special labeling for, and alcohol content limitations of, fermented malt beverages are no longer necessary. (2) The general assembly further recognizes that fermented malt beverages and malt liquors are separate and distinct from, malt and have a unique regulatory history in relation to, vinous and spirituous liquors, and as such require the retention of a separate and distinct regulatory framework under this article. To aid administrative efficiency, however, the provisions in article 47 of this title shall apply applies to the regulation of fermented malt beverages, except when otherwise expressly provided for in this article. SECTION 2. 12-46-103 (1), Colorado Revised Statutes, is amended to read: 12-46-103. Definitions. Definitions applicable to this article also appear in article 47 of this title. As used in this article, unless the context otherwise requires: (1) (a) "Fermented malt beverage" means beer and any beverage obtained by the fermentation of any infusion or decoction of barley, malt, hops, or any similar product or any combination thereof in water containing not less than one-half of one percent alcohol by volume. and not more than three and two-tenths percent alcohol by weight or four percent alcohol by volume; except that (b) "Fermented malt beverage" shall does not include confectionery containing alcohol within the limits prescribed by section 25-5-410 (1) (i) (II), C.R.S. SECTION 3. 12-46-106, Colorado Revised Statutes, is amended to read: 12-46-106. Lawful acts. (1) It is lawful for a person under eighteen years of age who is under the supervision of a person on the premises over eighteen years of age to be employed in a place of business where fermented malt beverages are sold at retail in containers for off-premises consumption. During the normal course of such employment, any person under eighteen years of age may handle and otherwise act with respect to fermented malt beverages in the same manner as that person does with other items sold at retail; except that no person under eighteen years of age shall sell or dispense fermented malt beverages, check age identification, or make deliveries beyond the customary parking area for the customers of the retail outlet. Nothing in this section shall not be construed to permit subsection (1) permits the violation of any other provisions of this section subsection (1) under circumstances not specified in this section subsection (1). (2) Notwithstanding any provision of this article or article 47 of this title to the contrary, an employee who is at least eighteen years of age and under twenty-one years of age may sell or dispense fermented malt beverages, check age identification, or make deliveries beyond the customary parking area for the customers of the licensed retailer employing the person only if the licensed retailer can document that the employee: (a) Has complied with the server and seller training program requirements established by the director of the liquor enforcement division in the department of revenue pursuant to section 12-47-1002; or (b) Is supervised by another person who is on the premises and who is at least twenty-one years of age. SECTION 4. 12-47-103 (19), Colorado Revised Statutes, is amended to read: 12-47-103. Definitions. As used in this article and article 46 of this title, unless the context otherwise requires: (19) "Malt liquors" includes beer and shall be construed to mean means any beverage obtained by the alcoholic fermentation of any infusion or decoction of barley, malt, hops, or any other similar product, or any combination thereof, in water containing more than three and two-tenths percent of alcohol by weight or four percent alcohol by volume not less than one-half of one percent alcohol by volume. SECTION 5. The introductory portion to 12-47-202 (2) (a) (I) and 12-47-202 (2) (a) (I) (S), Colorado Revised Statutes, are amended to read: 12-47-202. Duties of state licensing authority. (2) (a) (I) Rules and regulations made pursuant to paragraph (b) of subsection (1) of this section may cover, but shall are not be limited to, the following subjects: (S) The testing of the alcohol content of malt liquor and fermented malt beverage sold by persons licensed pursuant to this article or article 46 of this title. The state licensing authority shall adopt such rules no later than January 1, 2011. However, if, after January 1, 2011, the general assembly enacts amendments, by bill, to this article or article 46 of this title that make the rules obsolete, the state licensing authority may amend or repeal the rules as necessary. SECTION 6. 12-47-301 (6) (a), Colorado Revised Statutes, is amended to read: 12-47-301. Licensing in general. (6) (a) Licensees at facilities owned by a municipality, county, or special district or at publicly or privately owned sports and entertainment venues with a minimum seating capacity of one thousand five hundred seats may possess and serve for on-premises consumption any type of malt, vinous, and spirituous liquor or fermented malt beverage as may be permitted pursuant to guidelines established by the local and state licensing authorities, and the licensees need not have meals available for consumption. However, fermented malt beverages and malt, vinous, and spirituous liquors may not be served on the same premises at the same time. SECTION 7. 12-47-901 (5) (c) and (8), Colorado Revised Statutes, are amended to read: 12-47-901. Unlawful acts - exceptions. (5) It is unlawful for any person licensed to sell at retail pursuant to this article: (c) Except as provided in section 18-13-122, C.R.S., for any person to sell fermented malt beverages to any person under the age of twenty-one years or to any person between the hours of 12 midnight and 5 8 a.m.; (8) It is unlawful for any manufacturer or wholesaler licensed pursuant to article 46 of this title to sell, deliver, or cause to be delivered to any retail licensee any beverage containing alcohol in excess of three and two-tenths percent by weight or four percent by volume, or for any fermented malt beverage retailer to sell, possess, or permit the consumption on the premises of any of the beverages containing alcohol in excess of three and two-tenths percent by weight or four percent by volume, or for any fermented malt beverage retail licensee to hold or operate under any license for the sale of any beverages containing alcohol in excess of three and two-tenths percent by weight or four percent by volume for the same premises. Any violation by any fermented malt beverage licensee of the provisions of this subsection (8) shall immediately cause the cancellation of the license granted under this article. SECTION 8. Act subject to petition - effective date. This act shall take effect July 1, 2012; 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 the ninety-day period after final adjournment of the general assembly, 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 2012 and shall take effect on July 1, 2012, or on the date of the official declaration of the vote thereon by the governor, whichever is later.