Committee advances bill to expand distillers' tasting-room privileges after contested debate

Senate Bill 132, as presented to the Senate Business, Labor and Technology Committee, would expand tasting-room (sales room) privileges for distillers, raise the number of off-site sales rooms available to distillers, and allow distilleries—if they secure a state-issued permit—to offer some alcohol products acquired from wholesalers at tasting-room locations. Sponsors said the changes are a limited, targeted relief for craft distillers facing shrinking retail channels and drops in whiskey sales.

Senator (sponsor) described the bill as a narrower fix for craft distillers who "are against the ropes," saying the measure cannot address excise-tax disparities or larger retail conflicts but can "enhance the viability of sales rooms" so distillers can reach customers. The bill as introduced would have allowed up to five sales rooms; sponsors accepted an amendment (L005) to reduce that expansion to three sites. A second amendment (L008) converted the wholesale-pour privilege into a permit the Liquor Enforcement Division would grant and capped outside-sales pours at 50% of annual sales at the licensed distillery location.

Supporters—many members of the distilling industry and their trade groups—testified that distillers need more sales venues to survive market shifts caused by ballot initiatives and retail consolidation. Tom Parrack of the American Distilled Spirits Alliance said tasting rooms are a destination and that being unable to serve a guest a beer or wine when requested "costs new and repeat customers." David Fishering, owner of Storm King Distilling Company and representing the Colorado Distillers Guild, told the committee increased tasting-room access would allow craft distillers to reach more customers and respond to rising costs and lower overall consumption.

Opponents, including the Colorado Restaurant Association, the Tavern League of Colorado, and the Colorado Municipal League, argued the bill creates an uneven playing field. Rebecca Hernandez of the Restaurant Association said allowing manufacturers to serve other alcohol products effectively lets them operate as bars "without following the same retail licensing requirements" such as locally administered needs-and-desires hearings and distance rules from sensitive sites like schools. Stephanie Hicks, executive director of the Tavern League, told the committee the bill "allows a manufacturing distillery the ability to sell and serve all alcohol products and gives them up to 5 additional rooms" (an outcome the amendments reduced), and said the measure would bypass local public-hearing safeguards.

Committee discussion repeatedly returned to local control and parity with retail-tier licenses. Sponsors and proponents said the amended approach preserves state oversight and gives the Liquor Enforcement Division discretion to issue permits with conditions—such as a requirement to offer snacks or light sandwiches for safety—while opponents said the change still allows distillers to operate retail-like venues without local licensing.

The committee adopted the L005 amendment (reducing sales rooms to three) and the L008 amendment (creating a director-issued permit and limiting outside pours to 50%); both amendments were adopted on committee voice/roll-call. After debate the committee took a final roll call on whether to advance the bill; the recorded votes in committee included four members voting yes and one voting no, after which the chair thanked members and closed the hearing.

Ending: The amendments narrowed the bill from the sponsor's initial draft and inserted a state-permit pathway intended to preserve some state oversight while addressing craft distillers' market-access concerns. Opponents asked for additional safeguards to maintain parity with locally licensed taverns and restaurants; sponsors committed to continued conversations as the bill moves forward.