CO Code § 44-3-407 (2021)
2021 Colorado Code|Title 44 - Revenue - Regulation of Activities|Article 3 - Alcohol Beverages|Part 4 - Classes of Licenses and Permits|§ 44-3-407. Wholesaler's License - Discrimination in Wholesale Sales Prohibited

     A wholesaler's liquor license shall be issued to persons selling vinous or spirituous liquors at wholesale for the following purposes only:   To maintain and operate one or more warehouses in this state to handle vinous or spirituous liquors;    To take orders for vinous and spirituous liquors at any place and deliver vinous and spirituous liquors on orders previously taken to any place if the licensee has procured a wholesaler's liquor license and the place where orders are taken and delivered is a place regularly licensed pursuant to the provisions of this article 3;    To package vinous and spirituous liquors that a licensed importer has legally transported into Colorado or that a licensed manufacturer has legally produced in Colorado.         A wholesaler's beer license shall be issued to persons that sell malt liquors at wholesale to retailers licensed under this article 3 or article 4 of this title 44 and that designate to the state licensing authority on their application the territory within which the licensee may sell the designated products of any brewer as agreed upon by the licensee and the brewer of the products for the following purposes only: (b) (I) A wholesaler's beer license shall be issued to persons that sell malt liquors at wholesale to retailers licensed under this article 3 or article 4 of this title 44 and that designate to the state licensing authority on their application the territory within which the licensee may sell the designated products of any brewer as agreed upon by the licensee and the brewer of the products for the following purposes only:   To maintain and operate warehouses and one sales room in this state to handle malt liquors to be denominated a wholesale beer store;    To take orders for malt liquors at any place within the territory designated on the license application and deliver malt liquors on orders previously taken to any place within the designated geographical territory, if the licensee has procured a wholesaler's beer license and the place where orders are taken and delivered is a place regularly licensed to sell at retail for consumption on or off the licensed premises pursuant to this article 3 or article 4 of this title 44.       (A) Prior to operating a sales room as authorized by this subsection (1)(b), a wholesaler's beer licensee that is licensed pursuant to this section shall, at the time of application to the state licensing authority, send a copy of the application or supplemental application for a sales room to the local licensing authority in the jurisdiction in which the sales room is proposed. The local licensing authority may submit a response to the application, including its determination specified in subsection (1)(b)(II)(B) of this section, to the state licensing authority but must submit its response within forty-five days after the wholesaler's beer licensee submits its sales room application to the state licensing authority. If the local licensing authority does not submit a response to the state licensing authority within forty-five days after submission of the sales room application, the state licensing authority shall deem that the local licensing authority has determined that the proposed sales room will not impact traffic, noise, or other neighborhood concerns in a manner that is inconsistent with local regulations or ordinances or that the applicant will sufficiently mitigate any impacts identified by the local licensing authority.       Each license shall be separate and distinct, but any person may secure both licenses upon the payment in advance of both fees provided in this article 3.    All malt, vinous, and spirituous liquors purchased by any licensee under this section, and all malt, vinous, and spirituous liquors shipped into this state by or to any such licensee, shall be placed in the physical possession of the licensee at the licensee's warehouse facilities prior to delivery to persons holding licenses pursuant to this article 3 or article 4 of this title 44.      A brewer or importer licensed pursuant to this article 3 shall not sell malt liquors to a wholesaler without having a written contract with the wholesaler that designates the specific products of such brewer or importer to be sold by the wholesaler and that establishes the territory within which the wholesaler may sell the designated products. (e) (I) A brewer or importer licensed pursuant to this article 3 shall not sell malt liquors to a wholesaler without having a written contract with the wholesaler that designates the specific products of such brewer or importer to be sold by the wholesaler and that establishes the territory within which the wholesaler may sell the designated products.    A brewer or importer shall not contract with more than one wholesaler to sell the products of such brewer or importer within the same territory.       Notwithstanding any provision of this article 3 to the contrary, a wholesaler licensed pursuant to subsection (1)(a) of this section may establish a program for its employees to purchase directly from the wholesaler vinous or spirituous liquors sold by that wholesaler.       It is unlawful for any licensed wholesaler or any person, partnership, association, organization, or corporation interested financially in or with a licensed wholesaler to be interested financially, directly or indirectly, in the business of any person licensed to sell at retail pursuant to this article 3 or article 4 of this title 44.    It is unlawful for a licensed wholesaler of vinous or spirituous liquors or any person, partnership, association, organization, or corporation interested financially in or with such a wholesaler to be interested financially in the business of any licensed manufacturer or importer of vinous or spirituous liquors; except that any such financial interest that occurred on or before July 1, 1969, shall be lawful.      A wholesaler shall make available to all retailers licensed pursuant to this article 3 and article 4 of this title 44 in this state without discrimination all malt, vinous, and spirituous liquors offered by the wholesaler for sale at wholesale. A wholesaler shall use its best efforts to make available to licensed retailers each brand of alcohol beverage that the wholesaler has been authorized to distribute.    Nothing in this section prohibits a wholesaler from establishing reasonable allocation procedures when the anticipated demand for a product is greater than the supply of the product.        History. Source: L. 2018: Entire article added with relocations,(HB 18-1025), ch. 152, p. 999, § 2, effective October 1. L. 2019: IP(1)(b)(I), (1)(b)(I)(B), (1)(d), (2), and (4)(a) amended,(SB 19-011), ch. 1, p. 8, § 10, effective January 31.    Editor's note:   This section is similar to former § 12-47-406 as it existed prior to 2018.   ANNOTATION   Annotator's note. The following annotations include cases decided under former provisions similar to this section.   The purchase of beer at retail stores for resale outside Colorado does not require a beer wholesaler's license, since that activity is not covered by this section. People v. Kagan, 195 Colo. 76 , 575 P.2d 416 (1978).   Section as basis for defense to antitrust action. See Adolph Coors Co. v. A & S Whsles., Inc., 561 F.2d 807 (10th Cir. 1977).   Applied in Nobel, Inc. v. Colo. Dept. of Rev., 652 P.2d 1084 (Colo. App. 1982).