The Colorado Department of Revenue and the local licensing authority share responsibility for regulating the retail sale and service of alcoholic beverages. Recent neighborhood activism compounds the uncertainty caused by the discretion historically afforded to local authorities. Even if a bar obtains a license, the local licensing authority may call for a public hearing to determine whether the license should be renewed. If there are problems with the conduct of either the licensee or its patrons, the local licensing authority may investigate the matter, hold hearings, and decide upon an appropriate punishment. It is necessary for these parties to have a basic understanding of Colorado liquor laws to protect themselves against behavior by the licensee that may jeopardize the license.
Liquor licenses are specific to a location and licensee.
If a business is either relocated or sold, appropriate application must be made to both the State and local licensing authorities for a change in location or ownership of the license. Changes of Ownership . The law governing changes in ownership acknowledges that the location of the licensed premises has already been approved by the licensing authorities. For a voluntary transfer of ownership, the authorities may only consider the proposed transferee's character, record, and reputation. Upon successful transfer of an existing liquor license, the new owner may operate for the unexpired term of the transferred license.