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HomeMy WebLinkAbout10821 City Clerk's Office Item # R2 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: October 28, 2024 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Marisa Stoller, City Clerk SUBJECT: AN ORDINANCE AMENDING PUEBLO MUNICIPAL CODE ON ALCOHOL BEVERAGES, REVISING 11-3-1 THROUGH 11-3-13, 11-3- 15, 11-3-26, 11-3-41, 11-3-43 THROUGH 11-3-46, 11-3-50 THROUGH 11-3-52, 11-3-61 THROUGH 11-3-63, 11-3-72, AND 11-3-74 THROUGH 11-3-78 SUMMARY: Attached for consideration is a modification to the liquor and beer license procedure authorizing the appointment of an administrative hearing officer for liquor licensing matters. This move would serve to allow for more efficiency in the review of liquor licenses, simplify the process, prevent canceled meetings that delay the timelines of approval, allow for more flexibility in the hearing schedule, reduce the staff time necessary for onboarding and board appointments, result in better timing for liquor licensees, and allow for more knowledge in the liquor laws and legal processes and procedure. PREVIOUS COUNCIL ACTION: In 1973, Ord. No. 3656 established 11-3-5 through 11-3-11 the Licensing Authority and Board section of the Pueblo Municipal Code. Those ordinances have been modified several times since the most recent in 2022 which authorized the City Clerk to administratively process certain applications and/or in certain situations. ORDINANCE NO.10821 AN ORDINANCE AMENDING PUEBLO MUNICIPAL CODE ON ALCOHOLIC BEVERAGES, REVISING 11-3-1 THROUGH 11-3-13, 11-3-15, 11-3-26, 11-3-41, 11-3-43 THROUGH 11-3-46, 11-3-50 THROUGH 11-3-52, 11-3-61 THROUGH 11-3-63, 11-3-72, AND 11-3-74 THROUGH 11-3- 78 WHEREAS, The City of Pueblo is a home rule municipality operating under a charter adopted pursuant to Article XX of the Colorado Constitution and vested with the authority by that article and the Colorado Revised Statutes to adopt ordinances for the regulation of land use and protection of the public health, safety and welfare; and WHEREAS, in the exercise of this authority, the City Council has previously enacted Chapter 3, of Title XI of the Pueblo Municipal Code, concerning Alcoholic Beverages; and WHEREAS, in order to ensure that the needs of the local business community to have prompt action on liquor licenses are met, the Council finds it is beneficial to provide for an administrative hearing officer to conduct liquor licensing actions to provide for the timely processing of liquor licensing matters; and WHEREAS, an administrative hearing officer would have a larger knowledge of liquor laws, legal processes and procedures, and would provide more efficiency in review of applications, more flexibility with the hearing schedule, simply the process, allow for better timing for liquor licensees, and provide the City a cost savings in terms of board payment and staff overtime; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Section 11-3-1 through 11-3-13, 11-3-15, 11-3-26, 11-3-41, 11-3-43 through 11- 3-46, 11-3-50 through 11-3-52, 11-3-61 through 11-3-63, 11-3-72, and 11-3-74 through 11-3-78 to the Code is amended as follows (brackets indicate matter being deleted, underscoring indicates new matter being added): Sec. 11-3-1. Exercise of police powers. This Chapter shall be deemed an exercise of the police powers of the City for the protection of the economic and social welfare, and health and peace and morals of the people of this City, and shall further be deemed to be those other reasonable restrictions, terms and conditions which are placed upon licenses for the sale or dispensing of alcoholic beverages and 3.2% beer which may be granted by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer as the Local Licensing Authority for the City as provided in Articles 3, 4 and 5 of Title 44, C.R.S. Sec. 11-3-2. Definitions. (a) For the purposes of this Chapter, all words shall receive the meaning placed upon them in Articles 3, 4 and 5 of Title 44, C.R.S., as amended. (b) In addition thereto, the following words shall have the meanings assigned thereto: (1) Administrative Hearing Officer or Officer shall mean an official presiding over the administrative hearing(s) regarding liquor licensing in an independent and impartial manner pursuant to this code, the Colorado Revised Statutes, and the Code of Colorado Regulations. (2) City Clerk shall mean the City Clerk of Pueblo or designated representative. (3) Local Licensing Authority or City Licensing Authority shall mean the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer or Officer. (\[2\]4) Licensee shall mean any person licensed to sell or dispense malt, vinous or spirituous liquor or fermented malt beverage, or any agent or employee of such person. (\[3\]5) Premises shall include all or any part of the physical boundaries of any establishment duly licensed for the sale of beer or liquor under the provisions of this Chapter. (\[4\]6) Board shall mean the Liquor and Beer Licensing Board. Sec. 11-3-3. Licensing. \[Malt, vinous and spirituous liquor and fermented malt beverages shall be sold only by the persons and parties licensed as provided by state law and this Code.\] It shall be unlawful, and a class 1 municipal offense for any person within the City to manufacture, sell, offer, serve or possess for sale any alcohol beverages unless licensed or permitted to do so as provided by this Chapter and the applicable provisions of C.R.S. Title 44, Articles 3, 4 and 5. Article II Liquor and Beer Licensing Authority \[Board\] Sec. 11-3-4. Licensing authority. (a) \[The Liquor and Beer Licensing Board\] Administrative Hearing Officer shall be the local licensing authority in the City for the licensing of businesses and locations that desire to sell beer and alcoholic liquors as authorized by articles 3, 4, and 5 of title 44, C.R.S., as amended, and the rules and regulations of the State Licensing Authority, and shall possess all powers given to local licensing authorities by the provisions of said statutes and rules and regulations. (b) The City Clerk is authorized to administratively process and approve certain matters designated by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer, upon terms and conditions established by the \[Board\]Officer, in accordance with articles 3, 4, and 5 of title 44, C.R.S., as same may be amended, when there does not appear to be cause \[for the Board\] to review such matters, and when not required by law such as requirements for public hearing(s). Sec. 11-3-5. \[Members.\] Creation \[(a) The Liquor and Beer Licensing Board shall consist of five (5) members to be appointed by the Mayor, subject to Council confirmation. Four (4) members shall be initially appointed for staggered terms expiring on the first day of August as follows: one (1) member for a one-year term, one (1) member for a two-year term, one (1) member for a three-year term, and two (2) members for four-year terms, or in lieu of one (1) member for a four-year term, a member of the City Council may be appointed for an indefinite term. Thereafter, each member shall be appointed for a term of four (4) years. At the Board's first regular meeting in August 1978 and in August each year thereafter, the Board shall appoint one (1) of its members to act as Chairman of the Board. The Mayor shall make an appointment, subject to Council confirmation, for any unexpired term in the event a vacancy arises. (b) Any member of the Board may be removed by the Mayor for nonattendance to duty or for cause. Any member who fails to attend three (3) consecutive meetings of the Board shall be removed from the Board, unless the Mayor excuses any such absences.\] There shall be and is hereby created a Liquor Licensing Authority, . Sec. 11-3-6. \[Board to prescribe terms, conditions or provisions.\] Composition and Functions \[The Liquor and Beer Licensing Board may prescribe terms, conditions or provisions as it may deem necessary to carry out its exercise of police powers, provided that these terms, conditions or provisions do not conflict with the laws of the State or rules and regulations provided by the State Licensing Authority or ordinances and resolutions of the City.\] (a) The Local Licensing Authority for the City shall be the Municipal Judge. As defined in this code, Municipal Judge may include a Substitute Judge as appointed by the Presiding Judge. (b) The Local Licensing Authority shall have the duty and authority to grant or deny licenses for the possession, sale and offering for sale of malt, special malt, vinous or spiritous liquors and fermented malt beverages as provided by law, to conduct investigations as are required by law and to levy penalties against licensees in the manner provided by law. (c) The Authority shall have all the powers of the Local Licensing Authority as set forth in C.R.S. Title 44, Article 3, 4, and 5. (d) The Authority shall have the power to promulgate rules and regulations concerning the procedures for hearings before it and the presentation of evidence at hearings. (e) The Authority shall have the power to require any applicant for a license to furnish any relevant information required by the Authority. (f) The Authority shall have the power to administer oaths and issue subpoenas to require the presence of persons and the production of papers, books and records necessary to the determination of any hearing which the Authority is authorized to conduct. It shall constitute a violation of this Code, and a Class 1 municipal offense, for any person to fail to comply with any subpoena issued by the Authority in the proper conduct of its hearings. Sec. 11-3-7. Granting or denial of license. (a) Before entering any decision approving or denying an application, the Administrative Hearing Officer \[Liquor and Beer Licensing Board\] shall consider the facts and evidence adduced as a result of \[its\] investigation, as well as any other facts, the reasonable requirements of the neighborhood for the type of license for which application has been made, the number, type and availability of liquor outlets located in or near the neighborhood under consideration and any other pertinent matters affecting the qualifications of the applicant for the conduct of the type of business proposed; provided that the reasonable requirements of the neighborhood shall not be considered in the issuance of a club liquor license. The Administrative Hearing Officer may take into consideration any other pertinent information as allowed by law. (b) All hearings \[of the Liquor and Beer Licensing Board\] shall be conducted pursuant to and in accordance with the provisions of Articles 3, 4 and 5 of Title 44, C.R.S., and Section 1-7-7 of this Code, and if such provisions are in conflict, the statute's provision shall prevail. (c) Any decision \[of the Liquor and Beer Licensing Board\] approving or denying an application shall be in writing stating the reasons therefor and made within twenty- eight (28) \[thirty (30)\] days after the date of the public hearing, and a copy of such decision shall be sent by certified mail to the applicant at the address as shown in the application. (d) No license shall be issued \[by the Liquor and Beer Licensing Board\] after approval of an application until the building in which the business is to be conducted is ready for occupancy, with such furniture, fixtures and equipment in place as is necessary to comply with the provisions of this Article, and then only after inspection of the premises has been made to determine that the applicant has complied with the architect's drawing and plans and specifications submitted with the application. (e) After approval of any application, the \[Liquor and Beer Licensing Board\] City Clerk shall notify the state licensing authority of such approval. Sec. 11-3-8. Suspension and revocation of license. The \[Liquor and Beer Licensing Board\] Administrative Hearing Officer shall have the power to fine, suspend, or revoke any license issued by the Board or Officer on its own motion or on complaint, filed in writing alleging any violation(s) by the licensee or by any of the agents, servants or employees of such licensee of the provisions of the Pueblo Municipal Code, the Colorado Liquor Code, the Colorado Beer Code, or any of the rules and regulations authorized pursuant to such codes, or any of the terms, conditions or provisions of the license issued by the Board or Officer. \[,\] A licensee will be fined, or have a license suspended or revoked only after investigation and public hearing at which the licensee shall be afforded an opportunity to be heard. The calculation of fines, and fines in lieu of suspension, shall be in accordance with the Colorado Liquor Code, Colorado Beer Code, or any of the rules and regulations authorized pursuant to such codes, and any minimums and maximum payments set forth therein. (1) \[The \[Board\] Officer shall have the power to administer oaths and issue subpoenas to require the presence of persons and the production of papers, books and records necessary to the determination of any hearing which it is authorized to conduct. (2)\] Notice of fine, suspension, or revocation, as well as any required notice of a hearing for the same, shall be given by mailing the notice in writing to the licensee at the address contained in such license. No such suspension shall be for a longer period than six (6) months. (\[3\]2) Any license may be summarily suspended by the \[Board\] Officer without notice pending any prosecution, investigation or public hearing. Nothing in this Section shall prevent the summary suspension of such license for a temporary period of not more than \[fifteen (15)\] fourteen (14) days. (\[4\]3) If any license is fined, suspended, or revoked, no part of the fees paid therefor shall be returned to the licensee. (\[5\]4) The \[Board\] Officer shall have the power to implement the optional procedures set forth in Section 44-3-601 of the Colorado Liquor Code, as amended, which the City Council hereby accepts and adopts. Sec. 11-3-9. Appeal of \[Board\] Administrative Hearing Officer decisions. Actions taken by the \[Board\] Administrative Hearing Officer are subject to review by the Courts pursuant to Rule 106 of the Colorado Rules of Civil Procedure. Review must be applied for within twenty-eight (28) days after the date of decision. Any person applying to the Court for review shall be required to pay the cost of preparing a transcript of proceedings before the \[Board\] Officer whenever such a transcript is demanded by the person taking the appeal or when such a transcript is furnished by the \[Board\] Officer pursuant to the Court order. Sec. 11-3-10. \[Quorum and majority vote.\] Hearings \[A majority of the Liquor and Beer Licensing Board shall constitute a quorum for the conduct of its business. All decisions of the Liquor and Beer Licensing Board shall be by majority vote of the entire Board.\] (a) A public hearing will be conducted for any hearing required by law which may include all new licenses issue, hearings for suspension, revocation or other sanction. (b) All hearings before the Authority shall be public and shall be conducted according to the rules and regulations concerning the procedure for hearings promulgated by the Authority. No testimony shall be offered at a hearing unless the same is given under oath. (c) Public notice of hearings: (1) The applicant shall cause to be posed the public notice required pursuant to C.R.S. §44-3-311, for all hearings to be held on applications for the sale of alcohol. (2) The applicant shall provide to the City Clerk evidence of such posting, which shall consist of a photograph of the posted sign in place together with a signed statement evidencing posting. Sec. 11-3-11. License applications. All applications for licenses and fees shall be filed with the City Clerk, on forms to be approved by the City Clerk, together with such other information and documents as may be required by the rules of the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer. The City Clerk or their designee shall act as Secretary to the Administrative Hearing Officer and may designate an employee as a regulatory liquor licensing specialist or other such designation as necessary to aid Officer in the administration of duties. Sec. 11-3-12. Distance from schools or colleges. (a) Pursuant to authority granted to the City Council by the Colorado Liquor Code, the five-hundred-foot distance limitation contained in Section 44-3-313(1)(d)(I), C.R.S., is hereby reduced to two hundred (200) feet, provided that this distance reduction shall apply only to bona fide hotel and restaurant businesses, which maintain at least five (5) sleeping rooms for the accommodation of guests and have meals available for consumption at all times when the facility is open to the public. (b) Pursuant to authority granted to the City Council by the Colorado Liquor Code, the five-hundred-foot distance limitation contained in Section 44-3-313(1)(d)(I), C.R.S., is hereby eliminated, provided that the elimination of this distance restriction shall apply only to bona fide beer and wine, hotel and restaurant, tavern, brew pub, club, arts, vintner's restaurant, and distillery pub liquor licensed businesses located within the Downtown Business District, which shall be defined as the area beginning at the intersection of W 13th and N Elizabeth St., east along centerline of W 13th St. to the center of Interstate 25; thence south along the center of existing or future Interstate 25 to the northern edge of the railroad lines at an approximate location of 38° 15'48.369" N, 104° 36'18.691" W. Thence SW along the northern edge of the railroad to a point on the top of the Arkansas River levee at an approximate latitude and longitude of 38° 15'38.319" N, 104° 36'57.711" W; thence NW along the top of the levee to an approximate location of 38° 15'50.625" N, 104° 37'11.123" W; thence NE at 43 degrees for a distance of ~2139 ft. to the centerline of N Elizabeth St. at approximately 38° 16'4.9" N, 104° 36'51.34" W; continuing north along the centerline of N Elizabeth St. to the point of beginning at the intersection of W 13th St. and N Elizabeth St. (Map attached as Exhibit A.) (c) Pursuant to authority granted to the City Council by the Colorado Liquor Code, the five-hundred-foot distance limitation contained in Section 44-3-313(1)(d)(I), C.R.S., is hereby eliminated for: (1) a Hotel and Restaurant Class Liquor License to serve the Occhiato University Center located upon the Campus of Colorado State University-Pueblo, 2200 Bonforte Boulevard, Pueblo, CO 81001; (2) a Hotel and Restaurant Class Liquor License to serve the Neta and Eddie DeRose Thunderbowl located upon the Campus of Colorado State University-Pueblo, 2301 Rawlings Blvd, Pueblo, CO 81001; and (3) Hotel and Restaurant licensed businesses located within the Thunder Village Business District, which shall be defined as the area beginning at the intersection of Troy Avenue and future Roma Way; thence north along the centerline of existing or future Troy Avenue to future Stadio Way; thence west along the centerline of future Stadio Way to the eastern boundary and property line of the parcel occupied by the landmark known as the Thunderbowl; thence south and then west along the eastern and southern boundaries and property lines of the parcel occupied by the landmark known as the Thunderbowl to the eastern boundary and property line of the Campus of Colorado State University-Pueblo; thence south along the eastern boundary and property line of the Campus of Colorado State University-Pueblo to future Roma Way; thence southwest along the centerline of future Roma Way to the point of beginning at the intersection of Troy Avenue and Roma Way. (d) Pursuant to authority granted to the City Council by the Colorado Liquor Code, the five-hundred-foot distance limitation contained in Section 44-3-313(1)(d)(I), C.R.S., is hereby eliminated for a Tavern Class Liquor License to serve the College Center Building including curtilage up to one hundred (100) feet from said building located upon the campus of Pueblo Community College, 900 W. Orman Avenue, Pueblo, CO 81004. (e) Any license granted under the provisions of this Section shall also be subject to all other applicable provisions of state and local law. (f) The grant or denial of any application under this Section shall remain within the authority and discretion of the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer. Sec. 11-3-13. Optional premises licenses. (a) The \[Board\] Administrative Hearing Officer may accept applications either for an optional premises license or for a hotel and restaurant license with optional premises. (b) The specific types of outdoor sports and recreational facilities which may be licensed hereunder shall be limited to golf courses, and such other facilities as may be designated by ordinance. (c) No alcoholic beverages may be served on the optional premises unless the licensee has provided to the state and local licensing authorities at least forty-eight (48) hours' prior written notice of the specific days and hours on which the optional premises are to be so used. (d) In addition to the requirements of Sections 11-3-13 through 11-3-15 herein, optional premises applications, licenses and licensees shall be subject to all other applicable requirements of the Colorado Liquor Code and City ordinances. Sec. 11-3-15. Hearing required. (a) \[The Board\] Administrative Hearing Officer shall hold a public hearing on each application for an optional premises license or for a hotel and restaurant license with optional premises. (b) In addition to all other standards applicable to the issuance of licenses under the Colorado Liquor Code, the applicant shall have the burden of justification of the following requirements for issuance of an optional premises license: (1) Need and desirability of the optional premises requested; (2) Need and desirability of the number and size of service areas or facilities requested; (3) Adequate security and control over the optional premises by the licensee; (4) That the health, safety and welfare of the inhabitants of the neighborhood and the users of the outdoor sports and recreation facility will not be adversely affected by issuance of such license. (5) That the state licensing authority has approved the location proposed for optional premises as required by the Colorado Liquor Code. Sec. 11-3-26. Penalty. Any licensee violating any of the provisions of this Chapter 3 of Title XI, \[Sections 11-3-21 to 11-3-25\], inclusive of this Article, shall, upon conviction thereof by the Pueblo Municipal Court, be fined in a sum not less than five hundred dollars ($500.00) nor more than one thousand dollars ($1,000.00). Any licensee violating any of the provisions of the Pueblo Municipal Code, the Colorado Liquor Code, Colorado Beer Code, or any of the rules and regulations authorized pursuant to such codes, inclusive of this Article, may, upon a finding thereof by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer, be penalized in accordance with 1 C.C.R. 203-2\[: 47-603\], as may be amended. Sec. 11-3-41. \[Liquor and Beer Licensing Board\] Administrative Hearing Officer; local authority. The \[Liquor and Beer Licensing Board\] Administrative Hearing Officer as local authority may issue a special event permit for the sale, by the drink only, of fermented malt beverages, as defined in Section 44-4-103, C.R.S., as amended, or the sale, by the drink only, of malt, spirituous or vinous liquors, as defined in Section 44-3-103, C.R.S., as amended, to organizations and political candidates qualifying under Article 5 of Title 44, C.R.S., as amended, subject to the provisions of Articles 3 and 4 of Title 44, C.R.S., as amended, and to the limitations imposed by Article 5 of Title 44, C.R.S., as amended. Sec. 11-3-43. Fees. (a) The fee for investigation and issuance of a special event permit is one hundred dollars ($100) per permit. (b) All such fees are payable at the time application for a special event permit is made. \[The Liquor and Beer Licensing Board\] Administrative Hearing Officer as local authority may require any applicant to post a performance bond to assure compliance with the provisions of this Article. Sec. 11-3-44. Issuance of permit; limitation. A special event permit may not be issued to any organization for more \[than fifteen (15) days\] events than is permissible by state law and regulations in one (1) calendar year. The City Clerk shall access information made available on the website of the State licensing authority to determine the statewide permitting activity of any applicant and shall assure compliance with the limitation imposed by this Section. Sec. 11-3-45. Denial of permit. The \[Liquor and Beer Licensing Board\] Administrative Hearing Officer as local authority may deny the issuance of a special event permit upon the grounds that such issuance would be injurious to the public welfare because of the nature of the special event, its location within the community or the failure of the applicant in a past special event to conduct the event in compliance with applicable laws, or any other lawful reason provided to applicant in writing within twenty-eight (28) days of denial. Sec. 11-3-46. Forms. Applications for a special event permit shall be made on forms provided by the State licensing authority, and shall be verified by oath or affirmation of an officer of the organization or of the political candidate making application. Upon approval of any application by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer, the permit shall issue and the approval of the State licensing authority shall not be required. \[The City Clerk shall report to the State liquor enforcement division, within ten (10) days after the issuance of a permit, the name of the organization to which a permit was issued, the address of the permitted location and the permitted dates of alcohol beverage service.\] Article V Massage Parlors Sec. 11-3-50. Licensing authority. \[The Liquor and Beer Licensing Board\] The Liquor Administrative Hearing Officer shall be the local licensing authority in the City for the licensing of massage parlors as authorized by the Colorado Massage Parlor Code and shall possess all powers given to local licensing authorities by the provisions of said code. Sec. 11-3-51. Applications. All applications and fees for massage parlors shall be filed with the City Clerk together with such other information and documents as may be required by the \[Liquor and Beer Licensing Board\] Liquor Administrative Hearing Officer. Sec. 11-3-52. Hearings. All proceedings and hearings of the \[Liquor and Beer Licensing Board\] Liquor Administrative Hearing Officer relating to massage parlors shall be conducted to and in accordance with the Colorado Revised Statutes \[Colorado Massage Parlor Code\] and Section 1-7-7 of this Code; and if such provisions are in conflict, the Colorado Massage Parlor Code shall control. No massage parlor license shall be granted unless approved by \[a majority of the entire Board\] the Officer. Sec. 11-3-61. Authority. A retail liquor store or liquor-licensed drugstore licensee may conduct alcohol beverage tastings within the City only following approval of an application for an alcohol beverage tastings permit by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer and subject to the limitations set forth in this Article and Section 44-3- 301(10), C.R.S. Sec. 11-3-62. Application. (a) A retail liquor store or liquor-licensed drugstore licensee desiring to conduct alcohol beverage tastings must submit a permit application or permit application renewal for that purpose in accordance with this Article. (b) An alcohol beverage tastings permit shall be valid for the period of the then-existing liquor license, and the permit may be renewed at the time of any liquor license renewal. (c) An application for alcohol beverage tastings permit must be submitted to the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer no later than thirty (30) days prior to the date of the first alcohol beverage tasting requested in the application or at the time of license renewal, whichever occurs first. (d) At a minimum, the application must include the following information: (1) The name of the licensee and location of the premises of the retail liquor store or liquor-licensed drugstore; (2) Schedule of the specific dates and times of requested alcohol beverage tastings for the period of the permit. Following approval of a tastings permit and the tastings schedule by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer, the licensee may amend such schedule by delivering to the \[Liquor and Beer Licensing Board\] City Clerk, at least fourteen (14) days prior to an unscheduled event, a notice of amendment of the approved schedule; (3) A copy of a certificate of training for individuals who will conduct beverage tastings; and (4) Any other information requested by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer reasonably necessary to ensure compliance with the requirements of this Article and Section 44-3-301(10), C.R.S. Sec. 11-3-63. Decision on application. (a) The \[Liquor and Beer Licensing Board\] Administrative Hearing Officer may deny an application for issuance of an alcohol beverage tastings permit upon the following grounds: (1) The applicant has failed to establish that the applicant is able to conduct alcohol beverage tastings in compliance with this Article or Section 44-3- 301(10), C.R.S.; (2) The alcohol beverage tastings requested by applicant create or threaten to create a public safety risk to the neighborhood; or (3) The Licensee has violated the Colorado Liquor Code, or any rules and regulations authorized pursuant to such code during the one (1) year immediately preceding the date of the application. (b) If an application for an alcohol beverage tastings permit is denied, the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer shall give notice in writing and shall state grounds upon which the application was denied. The licensee shall be entitled to a hearing on the denial if a request in writing is made to the \[Liquor and Beer Licensing Board\] Officer within \[fifteen (15)\] fourteen (14) days after the date of notice. Sec. 11-3-72. Authority of the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer and the City Clerk. (a) The \[Liquor and Beer Licensing Board\] Administrative Hearing Officer is hereby authorized to: (i) certify and decertify promotional associations; (ii) designate the location, size, security, and hours of operation of common consumption areas; (iii) conduct hearings on violations of state and local liquor laws and impose penalties consistent with the provisions of this Chapter; (iv) allow attachment of licensed premises to common consumption areas consistent with this Section and the provisions included herein; and (v) take all other necessary actions consistent with the Colorado Liquor Code and this Chapter for the creation and regulation of entertainment districts, promotional associations, and common consumption areas. (b) The \[Liquor and Beer Licensing Board\] Administrative Hearing Officer shall have the authority to impose additional reasonable conditions on the certification of promotional associations, the licensing of common consumption areas and the attachment of licensed premises to common consumption areas, not inconsistent with the Colorado Liquor Code. (c) The City Clerk may adopt rules as reasonably necessary to implement the provisions of this Article. Sec. 11-3-74. Application for certifying a promotional association and establishing a common consumption area; notice; hearing. (a) An application form for certifying a promotional association and establishing a common consumption area shall be available at the City Clerk's Office or on the City's website. No application will be considered by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer until the completed application, applicable fee, and all attachments are submitted. (b) In addition to the requirements of C.R.S. § 44-3-301(11), as amended, the promotional association seeking certification by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer shall be required to submit: (1) A copy of the articles of incorporation and bylaws and a list of all directors and officers of the promotional association. A representative of each licensed premises attached to the common consumption area shall serve as one (1) of the directors on the board of the promotional association. At least two (2) liquor licensed premises must be attached to a common consumption area; (2) A list containing the names, addresses, and license types of all liquor licensed businesses that will be applying for attachment to the common consumption area which are known at the time of application for certification; (3) A list of the names and addresses of all non-liquor licensed business which will fall entirely within, will fall partially in, or be immediately adjacent to the common consumption area; along with evidence that the applicant association has either mailed or personally served such businesses with a copy of the notice required in this section; (4) A detailed map of the common consumption area, including location of physical barriers, entrances and exits, location of attached licensed premises, identification of licensed premises that are adjacent but not to be attached to the common consumption area, and approximate location of security personnel; (5) A detailed description of the security arrangements, the approximate number of security personnel and the approximate location of security personnel within the common consumption area. Security arrangements shall include physical barriers to close the common consumption area to vehicular traffic and limit pedestrian access. (6) A detailed health and sanitation plan including but not limited to plans for trash collection and disposal, location of available bathrooms and porta-potties, a description of how the area will be kept clean during the hours of operation of the common consumption area, and a description of how the area will be cleaned up at the end of the hours of operation of the common consumption area. (7) A list of dates and hours of operation of the common consumption area for the upcoming calendar year; (8) Documentation showing permission to use all portions of the common consumption area for all dates the common consumption area will be in use. Such documentation need only cover the period from the date of application st through January 31of the following year. (9) An insurance certificate of general liability and liquor liability insurance naming the City as an additional insured in a minimum amount of one million dollars ($1,000,000.00) or as may be increased from time to time, by the City's Director of Finance; (10) Documentation of how the application addresses the reasonable requirements of the neighborhood and the desires of the adult inhabitants as evidenced by petitions, written testimony or otherwise; and (11) In addition to any fee required to be paid to the Colorado Department of Revenue, each promotional association seeking certification by the Liquor and Beer Licensing Board shall pay to such Board a non-refundable application fee of five-hundred dollars ($500.00). (12) A statement of any and all violations of local or state liquor rules or regulations by any attached liquor licensed business within the past five (5) years, from the date of application. (c) Hearing and Notice. (1) The \[Liquor and Beer Licensing Board\] Administrative Hearing Officer shall hold a hearing on all applications for certification of a promotional association and establishment of a common consumption area. (2) Prior to the hearing the City Clerk shall, at least ten (10) days prior to the hearing, cause notice to be posted in a conspicuous place within the proposed common consumption area for which application has been made and by publication on the City's website. Such posting shall be in the form established in C.R.S. § 44-3-311, as amended. (d) It shall be unlawful and a class 1 municipal offense for any person or entity to operate a common consumption area unless currently certified as a promotional association under this section. Sec. 11-3-75. Terms and conditions; modifications; report of changes. (a) Terms and Conditions. (1) Upon certification of a promotional association, the terms and conditions of the certification shall remain effective until and unless an application for modification is submitted, approved, and authorized by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer as required by this Section. (2) No person shall make an application nor shall an application for the certification of a promotional association be received by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer until such time as all fees, fines, costs, taxes, penalties, and interest due and owing to the City by any and all of the licensed premises attached to the common consumption area are paid in full. (b) Modifications and Report of Changes. (1) Prior to any of the following modifications taking place, a promotional association must file an application for modification with the City Clerk's Office. a. Changes to the map of the common consumption area; b. Changes to the hours and dates of operation of the common consumption area or changes to the hours of attached licensees; c. Changes to the promotional association's security plan; d. Changes to the promotional associations health and sanitation plan; e. Changes to any conditions imposed on the promotional association by the Liquor and Beer Licensing Board. (2) Subject to the notice requirements set forth in Section 11-3-74(c)(2) above, the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer shall hold a hearing on all applications for modification. At such hearing the said \[Board\] Officer shall consider the effect of the amendment on the ability of the promotional association to comply with all local and state liquor laws and regulations. (3) In addition to any fee required to be paid to the Colorado Department of Revenue, all applications for modification shall be accompanied by a non- refundable one-hundred dollar ($100.00) fee. (4) The promotional association shall report any of the following changes to the Liquor and Beer Licensing Board within \[thirty (30)\] twenty-eight (28) days of the effective date of the change: a. Any changes to the articles of incorporation or the bylaws of the promotional association. b. Any change to the list of directors and officers of the promotional association. c. Changes to the ownership or character of non-liquor licensed business which fall entirely within, fall partially in, or are immediately adjacent to the common consumption area. Sec. 11-3-76. Application for attachment to a common consumption area. (a) As used in this section "attach" shall mean the connection, as authorized under this section, of a liquor licensed premises, to an adjoining common consumption area to provide alcohol beverages for common consumption within said area. (b) All liquor licensees who wish to attach to a common consumption area must complete an application on forms provided by the City Clerk's Office. Along with the application the licensee must provide: (1) Authorization for attachment from the certified promotional association. (2) Name of the representative from the licensed premises proposed for attachment who would serve as a director on the board of the certified promotional association. (3) A detailed map of the common consumption area, including location of physical barriers, entrances and exits, location of attached licensed premises, identification of licensed premises that are adjacent but not to be attached to the common consumption area and approximate location of security personnel. (4) A non-refundable application fee of one-hundred dollars ($100.00). Such fee shall be in addition to any fee required to be paid to the Colorado Department of Revenue. (c) The \[Liquor and Beer Licensing Board\] Administrative Hearing Officer may refuse to authorize, refuse to reauthorize or may deauthorize attachment if: (1) The licensed premises to be attached is not within or immediately adjacent the common consumption area; (2) The licensee fails to obtain or retain authority to attach to the common consumption area from the certified promotional association; (3) The licensee fails to establish that the licensed premises and the common consumption area can be operated without violating this Code, the Colorado Liquor Code or creating a safety risk to the neighborhood; or (4) The licensee has been found to have violated any provision of local or state liquor rules and regulations within the past five (5) years. Sec. 11-3-77. Operation of common consumption areas. (a) A promotional association or attached licensed premises shall not: (1) Employ a person to serve alcoholic beverages or provide security within the common consumption area unless the server has completed the server and seller training program established by the Director of the Liquor Enforcement Division of the Colorado Department of Revenue; (2) Sell or provide an alcoholic beverage to a customer for consumption within the common consumption area but not within the licensed premises in a container that is larger than sixteen (16) ounces; (3) Sell or provide any alcoholic beverage to a customer for consumption within the common consumption area but not within the licensed premises unless the container is disposable and contains the name of the vendor in at least twenty- four-point font; (4) Permit customers to leave the licensed premises with an alcohol beverage unless the beverage container complies with Paragraphs (2) and (3) of this Subsection (a); (5) Operate the common consumption area in an area that exceeds the maximum authorized by the Liquor and Beer Licensing Board or the Colorado Liquor Code; (6) Sell, serve, dispose of, exchange, or deliver, or permit the sale, serving, giving, or procuring of, an alcoholic beverage to a visibly intoxicated person or to a known habitual drunkard; (7) Sell, serve, dispose of, exchange, or deliver, or permit the sale, serving, or giving of an alcohol beverage to a person under twenty-one (21) years of age; or (8) Permit a visibly intoxicated person to loiter within the common consumption area; (9) Offer for sale or service alcoholic beverages in the common consumption area unless such sale or service is done upon the licensed premises of an attached licensee; (10) Fail to immediately report to the police any violation of this Title XI occurring on the attached licensed premises or within the common consumption area. (11) Permit any violation of this Chapter or of the Colorado Liquor Code within any attached licensed premises or within the common consumption area. (b) The promotional association shall promptly remove all alcoholic beverages from the common consumption area at the end of the hours of operation. (c) It is unlawful for any person to consume alcohol within the common consumption area unless such alcoholic beverage was obtained from an attached licensed premises. (d) Penalties. (1) The promotional association and all attached liquor licensees shall be jointly responsible for violations of this Chapter and of the Colorado Liquor Code that occur within the common consumption area. If a particular licensee or licensees can be identified as being responsible for a violation only such licensee or licensees shall be penalized under this Section. In the event a responsible licensee or licensees cannot be identified; all attached licensees and the promotional association shall be subject to penalties under this Section. (2) The \[Liquor and Beer Licensing Board\] Administrative Hearing Officer is authorized to impose the following penalties for violations of this article; a. A fine, b. Suspension of individual liquor licenses, c. Suspension of the common consumption area, d. Revocation of individual liquor licenses, e. Revocation of the common consumption area, f. Decertification of the promotional association, and/or g. Imposition of additional conditions on any attached licensee or on the promotional association. (e) This Section does not apply to a special event permit under this Code or the holder thereof unless the permit holder desires to use an existing common consumption area and agrees in writing to the requirements of this Section and the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer concerning the common consumption area. Sec. 11-3-78. Recertification and reporting requirements. st (a) A certified promotional association shall apply for recertification by January 31of each year on forms prepared and furnished by the City Clerk. An application for recertification of a promotional association shall include a report containing: (1) A detailed map of the boundaries of the common consumption area; (2) A list of dates and hours of operation of the common consumption area for the upcoming calendar year; (3) Documentation showing permission to use all portions of the common consumption area for all dates the common consumption area will be in use during the upcoming year; (4) A list of attached licensed premises; (5) A list of the directors and officers of the promotional association; (6) Security arrangements within the common consumption area; (7) Any violation of local or state liquor rules and regulations committed by an attached licensed premises during the preceding year; and (8) Any other information reasonably requested by the \[Liquor and Beer Licensing Board\] Administrative Hearing Officer. (b) Fee. In addition to any fee required to be paid to the Colorado Department of Revenue, the promotional association shall submit a non-refundable recertification fee of two-hundred fifty dollars ($250.00) with its application for recertification. (c) Late recertification. The \[Liquor and Beer Licensing Board\] Administrative Hearing Officer may, in its discretion, allow a promotional association to apply for st recertification after January 31if; (1) The promotional association has complied with the reporting requirements contained in C.R.S. § 44-3-301(11)(c) as amended, and (2) The promotional association pays an additional non-refundable late fee of one- hundred dollars ($100.00). Such late fee shall be in addition to any late fee required to be paid to the Colorado Department of Revenue. (3) Under no circumstances shall a promotional association be allowed to apply for st late recertification more than sixty (60) days after January 31. SECTION 2. The officers and staff of the City are authorized to perform all acts consistent with this Ordinance and to implement the policies and procedures described therein. SECTION 3. This Ordinance shall become effective on the January 1, 2025, unless at any time after the date of final action by the Mayor and City Council the Board fails to have a quorum at any meeting, or if the number of members of the board drop so low as to make obtaining a quorum at any meeting impossible, then this Ordinance shall become effective immediately. Action by City Council: Introduced and initial adoption of Ordinance by City Council on October 15, 2024. Final adoption of Ordinance by City Council on October 28, 2024. ________________________________ President of City Council Action by the Mayor: Approved on_______________________________. Disapproved on_____________________________ based on the following objections: ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ___________________________ Mayor Action by City Council After Disapproval by the Mayor: Council did not act to override the Mayor's veto. Ordinance re-adopted on a vote of ___________________, on ______________________. ___________________________ President of City Council ATTEST _____________________________ Deputy City Clerk BACKGROUND: Most larger municipalities have moved to a system utilizing municipal courts to issue licenses and conduct hearings required by state liquor statues and code. Colorado Springs, Fort Collins, Greeley, Centennial, and Boulder are such cities. Currently, Pueblo has a Liquor and Beer Licensing Board that meets twice month to conduct business and hearings. Meetings are the first and third Wednesday of the month at 5:30 p.m. Types of hearings include new license applications, modifications of premises both temporary (for example, businesses along Union Ave modify their premises during the Chili Festival) and permanent (for example, moving to a new location), festival and special event permits, and allegations of violations. Renewal of licenses and minor changes are completed by administrative autho office. In addition to the change in the Liquor Authority, there are a few necessary fixes to the liquor code that are included in this ordinance. This includes the number of events allowable under state law for special events permits, which have been expanded by state law. To accommodate future changes, this ordinance simply refers to state law. Additionally, HB24-1371 revised regulations on massage facilities, thus changes to 11-3-52 were necessary. FINANCIAL IMPLICATIONS: This change would save the City money in wages to the Liquor Board and staff overtime, as an assistant city attorney, deputy city clerk, licensing coordinator, security, and facilities staff currently stay late for these meetings. It would also save staff time. BOARD/COMMISSION RECOMMENDATION: The Liquor Board discussed this change at their last meeting and no major concerns were brought forward that have not already been mentioned before City Council. Individually, the majority of the board members understood the advantages to changing to a hearing officer and did not bring forward any issues. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If City Council does not approve this Ordinance, the Liquor and Beer Licensing Board would continue to meet and conduct business. RECOMMENDATION: Approval of the Ordinance. ATTACHMENTS: 1. Ordinance