A5A35FA9058D275C8725824A0071F0EC Hearing Summary

Representatives Gray and LIston introduced
Senate Bill 18-138.  Under current
law, alcohol cannot be transferred between two liquor licensees, and entities
licensed for off-premises consumption generally must purchase alcohol from
a wholesaler, with a few exceptions.  The bill allows certain licensees
to purchase alcohol inventory from a licensee whose license has been surrendered
or revoked.  In order for the alcohol inventory to be sold, there
must be common ownership between the seller and purchaser, and the seller
must:

•        have
surrendered its license or had it revoked within the last 60 days;

•        return
to the wholesaler all alcohol beverages that the seller purchased on credit;

•        first
offer the wholesaler a 30-day option to repurchase any alcohol initially
sold by the wholesaler;

•        possess
proof that all alcohol purchased from wholesalers has been paid in full;
and

•        sell
the alcohol inventory for only one licensed premises.



        The bill
defines common ownership to mean at least a 10 percent ownership interest
in both the seller and the purchaser's business, at the time one license
is surrendered or revoked. The state licensing authority may not promulgate
rules regulating the price of the inventory.  The seller may deliver
the alcohol to the purchaser, and the licensee that purchases the alcohol
must retain evidence of the purchase.

The committee discussed amendment L.002.

Representatives Liston and Gray gave concluding remarks regarding the bill.