This story was produced as part of the Colorado Capitol News Alliance. It first appeared at coloradosun.com.
Gov. Jared Polis has signed a bill that halts the expansion of hard liquor sales in grocery and big-box stores in an effort to protect small businesses that sell alcohol from further economic decline.
Senate Bill 25-033 was brought in response to the recent expansion of beer and wine sales in grocery stores, which has dramatically reduced the sales of Colorado's independent alcohol retailers.
Colorado law limits the number of grocery stores that can sell hard liquor, like vodka, tequila and whiskey. But that was set to end starting in 2037.
There are 36 Colorado grocery and big-box stores that sell liquor right now.
"This bill was a David vs. Goliath fight — small Colorado businesses vs. deep-pocketed corporations — but it received overwhelming support because it will help Colorado's family-owned, independent liquor stores compete fairly," Chris Carran of the Colorado Independent Liquor Store Association said in a written statement.
Carran said independent alcohol retailers still face headwinds, but Senate Bill 33 gives them a chance to make it through.
"It is a lifeline," Carran said.
Supporters of the measure worried that Polis might veto the bill given his reluctance to place constraints on free market business. His deadline to sign the bill, veto it or let it become law without his signature was last weekend.
In a signing statement, Polis said he has "serious concerns that this legislation takes Colorado's liquor laws backward, not forward."
"While the pro-free-market and pro-consumer evolution over recent years might have been a burden on small, independently run liquor stores, a permanent freeze on (letting grocery stores sell hard liquor) puts the state government in the position of picking winners and losers," Polis wrote in the statement. "To that end, I hope both sides are willing to work together to find a more lasting compromise putting the consumer first."
Nevertheless, Polis said the overwhelming legislative support for Senate Bill 33 led him to sign the measure into law. Senate Bill 33 passed the House by a 55-8 vote and the Senate by a 28-5 vote.
"I'm grateful that Gov. Polis has given his support to this bill that passed with wide, bipartisan support," state Sen. Dylan Roberts, a Frisco Democrat and lead sponsor of the measure, said in a written statement. "Independent liquor stores are important small businesses in communities across the state. Without this law, we'd see more local job layoffs and more closures of these stores."
The measure was opposed by Amazon, Albertsons Safeway, King Soopers, Target and Walmart. Colorado grocery, convenience and big-box stores started being able to sell full-strength beer in 2019. Voters then passed an industry-backed ballot measure in 2022 letting grocery stores start selling wine in 2023.
Small businesses that sell alcohol have complained that both changes have destroyed their bottom line.
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