Committee advances bill giving distillers modest tasting-room flexibilities, adds local-approval safeguards

The Senate Business, Labor and Technology Committee advanced Senate Bill 114 after adopting amendments that require local-government approval before the state Liquor Enforcement Division (LED) may grant permits allowing distilleries to pour products they do not manufacture.

Sponsor Sen. Marchman said SB 114 is a narrowly tailored response to market changes that have left many small Colorado distilleries with shrinking retail access and higher effective tax burdens than beer and wine producers. The bill permits modest expansion of tasting-room operations, requires formal notice to local licensing authorities and a 45-day public posting period, and directs state review to consider zoning, fire-code compliance and local concerns.

Supporters from the Colorado Distillers Guild, Stranahan's and several craft distilleries said the changes would help small producers keep customers in tasting rooms and strengthen tourism-linked sales. "This bill offers a modest and balanced solution," said Sam Gentry of Stranahan's Colorado Whiskey.

Opponents including the Colorado Municipal League urged stronger local control, arguing the state permitting route could undermine the three-tier liquor system if local licensing was bypassed. The committee adopted two amendments (L002 and L003) requiring local approval before the LED can issue a pour permit for non-distiller products and aligning local application fees with those charged other retailers.

Sen. Marchman moved the bill to the Committee on Appropriations; the motion passed 5–0.