Committee advances bill to let adjacent alcohol producers share packaging equipment

Senator Linstead told the committee Senate Bill 94 would create a new state license for "alternating premises," permitting adjacent alcohol manufacturers to share production and packaging equipment on occasion to reduce costs and paperwork.

Supporters from the industry said federal practice already allows alternation under the TTB (Alcohol and Tobacco Tax and Trade Bureau) and that current Colorado procedures are cumbersome and expensive. Robert Runco, an attorney representing craft manufacturers and counsel to a state brewers guild, told the committee the system already works at the federal level and that allowing the tax division to issue rules would address recordkeeping and excise collection concerns.

Eli Kolodny of Odell Brewing described the operational burden and the recurring $600 state fee for changing premises: "Each time we do this, it costs us $600... If plans need to change or equipment breaks, we are required to refile new applications adding to the time effort and costs." Kolodny said SB 94 would allow an easier single application and preserve accurate tax tracking.

An amendment (L1001) to clarify "adjacent/contiguous" language and grant rulemaking authority to the Colorado Department of Revenue/LED (as described by the sponsor) was offered, saw no objection, and was adopted. Senator Linstead moved the bill as amended to the Committee on Appropriations with a favorable recommendation; the committee voted unanimously to advance it.

Opposition testimony included Kristen Hartman, a health equity policy researcher and survivor of alcohol‑related violence, who said she opposed the bill and offered an off‑topic proposal (piping alcohol to homes), which the chair redirected as outside the bill’s scope.

Next steps: SB 94 was sent to the Committee on Appropriations as amended.