By Clay Barnett
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November 6, 2018
Over the next few months I will be submitting short articles about liquor licensing in Colorado. This first post gives some insight into the liquor licensing procedure. Please note that this post is a simplified narrative of the liquor license process, written to provide a general understanding of the process so that you, the reader, can anticipate what is coming when you submit your application. The application process requires many other smaller steps to get through the process, many of which will be included in subsequent posts. First and foremost, Colorado uses a dual licensing process. What that means is that your application must be approved at the local government level and the state. Within the dual licensing process, Colorado law requires a showing of the suitability of the applicant as well as the needs and desires of the neighborhood in which the license is being sought. Suitability When it comes to the suitability of the applicant, the state and local governments will require information on everyone owning at least 10% of the business under which the license will be held. This review includes criminal history, liquor license violation history, ownership interests in other liquor-industry businesses as well as tax payment history among other things. To satisfy this requirement you will be required to submit documentation along with your application such as: tax licenses (city and state), evidence of possession (deed/lease, etc.), individual history forms and fingerprint cards for all people with 10% or greater ownership in the business. Needs and Desires Assuming you can show that your business (and its owners) succeed in demonstrating suitability, the focus of the application shifts towards the needs and desires of the neighborhood in which the licensed premises will be located. Ever seen those large notices in the window of an upcoming restaurant, bar or liquor store? Those signs are to give notice to the neighborhood that they have a say in whether your application is granted. How is this done? Through a public hearing. Once a hearing is scheduled, you are required to post your notice in a conspicuous place for at least 20 consecutive days. During that time, inspectors will randomly drive by to ensure that the posting is proper (and you will be required to provide an affidavit attesting to the same at the time of the hearing). During the actual hearing, you are provided an opportunity to show that there is a need and desire for this license in the neighborhood. This typically involves testimony from the applicant as well as others (residents or business managers) demonstrating why you believe the neighborhood will benefit from the license. In some situations, applicants will utilize petitioning companies (which must be turned in to the licensing authority in advance of the hearing). Once the hearing is complete – and depending on the jurisdiction – you may have a final vote on whether the license should be issued or, if your application is heard by a Hearing Officer, you will be provided with the Hearing Officer’s Recommended Decision (typically within 5 days after the hearing). In those jurisdictions that use Hearing Officers, after the Recommended Decision is delivered, a Final Decision will be issued, typically be the Director of the Department. While a final vote or Final Decision will determine whether the license can be issued by the local governmental authority, the process is not quite complete. As mentioned above, the State of Colorado must also approve the license. Furthermore, if you are not granted a license, you will have the opportunity to appeal the decision (although such appeals are costly and are rarely granted). If you are granted a license, you still must follow certain procedures (including inspections) before the license itself is granted. The post-hearing process will be addressed in a later article. Clay Barnett is the owner of Barnett Law, a local law firm that focuses on licensing, construction, real estate and employment law. Clay has years of experience handling licensing issues, including applications for new licenses, transferring licenses and defending clients in criminal and administrative hearings after receiving license violations, tickets and Orders to Show Cause.
