To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Lisa Anderson, Town Clerk
Title
Ordinance Amending Various Provisions of Chapter 2.17 of the Castle Rock Municipal Code Regarding the Respective Roles of the Liquor Licensing Authority and the Town Clerk in the Liquor Licensing Process (Second Reading - Approved on First Reading on January 21, 2025 by a vote 7-0)
Body
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Executive Summary
Staff summarized the history of the Liquor Licensing Authority and is seeking Council direction on the qualifications of the Liquor Licensing Authority.
Additionally, staff summarized legislative changes prompting recommended code amendments.
Background of the Local Liquor Licensing Authority
The Liquor Licensing Authority was established to conduct hearings for all liquor license applications and show cause for violations. Over the years, only new applications and show cause required hearings; and all other applications and permits could be approved administratively.
Staff preliminarily obtains documentation to demonstrate the applicant is of good moral character, the citizens desire the license be granted and the license meets reasonable requirements of the neighborhood through a petition, and all Town and State requirements have been met.
In 1999, the Liquor Licensing Authority was established in Chapter 2.17 consisting of five qualified electors of the Town appointed by Town Council with two-year terms with the following qualifications:
• Shall not have financial interest in the operation of any business located or operating in the Town that holds a license pursuant to 44-3-101 and 44-4-101.
In 2015, Chapter 2.17 was amended to change to a sole hearing officer appointed by Town Council with the following qualifications:
• Attorney licensed in Colorado and in good standing
• Three years as a practicing attorney
• Sufficient knowledge of State and Town liquor Code, Laws, and Regulations
• Shall not hold any other Town office, appointment or position, except the Town Council may appoint the Municipal Judge as Hearing officer.
• Shall not have financial interest in the operation of any business located or operating in the Town that holds a license pursuant to 44-3-101 and 44-4-101.
In 2019, following the unexpected passing of the hearing officer, Chapter 2.17 was amended to include:
• Town Council can appoint the municipal judge or alternate municipal judge as hearing officer in the event the hearing officer is unavailable.
Town Council entered into a contract to appoint the municipal judge as hearing officer.
State statute does not impose any qualifications for the Liquor Licensing Authority.
Legislation Passed
In 2024, State legislature passed enacting several changes. There are three changes that would require a code amendment if the Town chooses to enact them:
• Public hearings are no longer required for new applications unless there is an objection.
• Licensees can renew licenses every two years.
• Tastings expanded service times from 10am to 9pm with 156 tastings per year.
For informational purposes, a summary of other changes to legislation are as follows:
• Lodging and Entertainment licenses are now two separate licenses.
• Festival Permits can be obtained and applied to at the state 30 calendar days in advance.
• Retail Establishment permits and Chamber of Commerce special event permits were established.
• Liquor can now be sold in stores on Christmas day.
• Catering licenses were established and are applied for through the state.
• Take-out and Delivery permits allow third parties to deliver.
• Retail licensees can now purchase up to $7,000 from a retail store for their inventory.
• Liquor stores that close can sell their inventory to another liquor store.
Budget Impact
The previous contract amount was set at $250 per hearing with an average of 6 hearings per year. This number would decrease if only held upon objection. There is no budget impact from biannual licenses as they would still pay the annual fees. Tastings are a flat fee and are not based on how many are requested.
Staff Recommendation
Staff recommends
• Remove the requirement that the hearing officer be a practicing attorney
o There is no legal requirement for that
o It will provide Council more flexibility in choosing a hearing officer
• Require public hearings only in the event of an objection or show cause
o All applications will be processed administratively unless we have a reason to take them forward to a public hearing with the hearing officer. A public hearing would be justified if there is good cause to deny an application, the applicant is not of good moral character, the application may be in conflict with applicable laws, the public interest is served by a hearing, or a party in interest requests a hearing.
• Allow biannual licenses
• Expand Tasting regulations
Proposed Motion
“I move to approve the Ordinance as introduced by title.”
“I move to amend the Ordinance as follows: “.
“I move to continue the Ordinance to a future Council meeting on ____.”
Attachments
Ordinance