House panel backs moratorium on new hard-alcohol licenses, citing harm to independent liquor stores

The House Business and Labor Committee voted to send Senate Bill 33 to the Committee on Appropriations with a favorable recommendation after a multi-hour hearing that split retailers, producers and business groups.

Supporters — including Rep. Dylan Ricks and Rep. Mark Weinberg, the bill sponsors — said SB 33 would stop the state from issuing new hard-alcohol licenses and give independent liquor stores time and legal protection to survive after the grocery expansion of beer and wine. Rep. Ricks summarized the sponsors’ argument: “The economic collapse of our independent liquor stores will also devastate Colorado crafts, alcohol industry, and negatively impact local economies, commercial real estate, nonprofits, and communities,” and asked members for a favorable recommendation. Rep. Weinberg told the panel the bill was “brought by my district, members in my district, small business owners in my district, liquor stores in my district.”

Owners of family-run liquor stores and craft producers told the committee they have experienced sharp revenue declines since a combination of reforms and a 2022 ballot measure expanded grocery-store sales of beer and wine. Josh Robinson of Argonaut Wine and Liquor told the committee his store has lost 35% of revenue since the compromise legislation in 2016 and “we estimate that we could lose another 400 to 600 in the next 12.” Katie Wells of Evergreen Liquors testified that wine availability in neighboring grocers reduced their wine sales by about 44% and foot traffic by roughly 34%, forcing staff cuts and SKU reductions.

Supporters repeatedly invoked the 2016 compromise known in testimony as SB 197 and the 2022 ballot measure Prop 125. Bruce Dierking, owner of Hazel’s in Boulder, said the 2016 deal included a 1,500-foot radius protection around existing liquor stores and a ‘‘20 year stand down,’’ and argued grocery chains’ later ballot drives undermined that arrangement.

Opponents — including the Distilled Spirits Council, Coloradans for Consumer Choice (a coalition of national and regional grocers), the Colorado Retail Council and multiple chambers of commerce — argued SB 33 would remove consumer choices and harm craft producers by restricting an expanding retail channel. Ainsley Gillerano of the Distilled Spirits Council said the council “register[s] our opposition to SB 33, which would eliminate the liquor license drugstore license despite having broad industry support” for the original compromise, and warned the spirits sector is already facing headwinds in export markets and a slowdown in domestic sales.

Retail groups said national grocers invested substantial sums under the phased expansion and have bought out many independent licenses, and that those investments support jobs and philanthropic efforts. Ray Rivera of Coloradans for Consumer Choice said large retailers have “already spent millions, tens of millions of dollars, to buy out local retail store owners” and argued the market still supports a diversity of outlets.

Committee members heard specific examples from both sides of the debate — counts of buyouts, claimed percentages of market share, and local economic impacts — but no amendments were offered by the sponsors. After brief committee remarks and a roll-call, the committee approved SB 33 for referral to the Appropriations Committee. Representative Ricks made the motion to send SB 33 to Appropriations with a favorable recommendation; Representative Brooks seconded the motion. The committee vote was recorded in the hearing as unanimous (13-0 in the transcript roll call), and the bill advanced.

What’s next: SB 33 moves to Appropriations, where it will face fiscal review and additional committee consideration.

Votes at a glance: The committee forwarded SB 33 to Appropriations with a favorable recommendation; recorded committee vote in the hearing: 13-0 (unanimous).