2023 Colorado Revised Statutes › Title 44 - REVENUE - REGULATION OF ACTIVITIES (§§ 44-1-101 — 44-50-1001) › ALCOHOL AND TOBACCO REGULATION (§§ 44-3-101 — 44-7-107) › Article 3 - ALCOHOL BEVERAGES (§§ 44-3-101 — 44-3-1002) › Part 4 - CLASSES OF LICENSES AND PERMITS (§§ 44-3-401 — 44-3-432) › Section 44-3-409 - [Effective 8/7/2024] Retail liquor store license - rules - definitions

(1)
(a)
(I)
A retail liquor store license shall be issued to persons selling only malt, vinous, and spirituous liquors in sealed containers not to be consumed at the place where sold. Malt, vinous, and spirituous liquors in sealed containers shall not be sold at retail other than in retail liquor stores except as provided in section
44-3-410
or except as allowed under this article 3.
(II)
On and after July 1, 2016, the state and local licensing authorities shall not issue a new retail liquor store license if the premises for which the retail liquor store license is sought is located:
(A)
Within one thousand five hundred feet of another retail liquor store licensed under this section or a liquor-licensed drugstore licensed under section
44-3-410
;
(B)
For a premises located in a municipality with a population of ten thousand or fewer, within three thousand feet of another retail liquor store licensed under this section or a liquor-licensed drugstore licensed under section
44-3-410
; or
(C)
For a premises located in a municipality with a population of ten thousand or fewer that is contiguous to the city and county of Denver, within one thousand five hundred feet of another retail liquor store licensed under this section or a liquor-licensed drugstore licensed under section
44-3-410
.
(b)
In addition, retail liquor stores may sell any nonalcohol products, but only if the annual gross revenues from the sale of nonalcohol products do not exceed twenty percent of the retail liquor store's total annual gross sales revenues. For purposes of calculating the annual gross revenues from the sale of nonalcohol products, sales revenues from the following products are excluded:
(I)
Lottery products;
(II)
Cigarettes, tobacco products, and nicotine products, as defined in section
18-13-121 (5)
;
(III)
Ice, soft drinks, and mixers; and
(IV)
Nonfood items related to the consumption of malt, vinous, or spirituous liquors.
(c)
Nothing in this section or in section
44-3-103 (48)
prohibits a licensed retail liquor store from:
(I)
Selling items on behalf of or to benefit a charitable organization, as defined in section
39-26-102
, or a nonprofit corporation subject to the "Colorado Revised Nonprofit Corporation Act", articles
121
to
137
of title
7
, and determined to be exempt from federal income tax by the federal internal revenue service, if the retail liquor store does not receive compensation for the sale;
(II)
At the option of the licensee, displaying promotional material furnished by a manufacturer or wholesaler, which material permits a customer to purchase other items from a third person, so long as the retail liquor store licensee does not receive payment from the third person and the customer orders the additional merchandise directly from the third person; or
(III)
Allowing tastings to be conducted on the licensed premises if the licensee has received authorization to conduct tastings pursuant to section
44-3-301
.
(2)
(a)
A person licensed under this section to sell malt, vinous, and spirituous liquors in a retail liquor store:
(I)
Except as provided in subsection (6) of this section, shall purchase the malt, vinous, and spirituous liquors only from a wholesaler licensed pursuant to this article 3; and
(II)
(A)
Shall not sell malt, vinous, or spirituous liquors to consumers at a price that is below the retail liquor store's cost, as listed on the invoice, to purchase the malt, vinous, or spirituous liquors, unless the sale is of discontinued or close-out malt, vinous, or spirituous liquors.
(B)
This subsection (2)(a)(II) does not prohibit a retail liquor store from operating a bona fide loyalty or rewards program for malt, vinous, or spirituous liquors so long as the price for the product is not below the retail liquor store's costs as listed on the invoice. The state licensing authority may adopt rules to implement this subsection (2)(a)(II).
(b)
A person licensed under this section that obtains additional retail liquor store licenses in accordance with subsection (4)(b)(III) of this section may operate under a single or consolidated corporate entity but shall not commingle purchases of or credit extensions for purchases of malt, vinous, or spirituous liquors from a wholesaler licensed under this article 3 for more than one licensed premises. A wholesaler licensed under this article 3 shall not base the price for the malt, vinous, or spirituous liquors it sells to a retail liquor store licensed under this section on the total volume of malt, vinous, or spirituous liquors that the licensee purchases for multiple licensed premises.
(3)
(a)
A person licensed to sell at retail who complies with this subsection (3) and rules promulgated pursuant to this subsection (3) may deliver malt, vinous, and spirituous liquors to a person of legal age if:
(I)
The person receiving the delivery of malt, vinous, or spirituous liquors is located at a place that is not licensed pursuant to this section;
(II)
The delivery is made by an employee of the licensed retail liquor store who is at least twenty-one years of age and who is using a vehicle owned or leased by the licensee to make the delivery;
(III)
The person making the delivery verifies, in accordance with section
44-3-901 (11)
, that the person receiving the delivery of malt, vinous, or spirituous liquors is at least twenty-one years of age; and
(IV)
The retail liquor store derives no more than fifty percent of its gross annual revenues from total sales of malt, vinous, and spirituous liquors from the sale of malt, vinous, and spirituous liquors that the retail liquor store delivers.
(b)
The state licensing authority shall promulgate rules as necessary for the proper delivery of malt, vinous, and spirituous liquors and is authorized to issue a permit to any person who is licensed under this section to sell at retail and delivers the liquors pursuant to this subsection (3). A permit issued under this subsection (3) is subject to the same suspension and revocation provisions as are set forth in section
44-3-601
for other licenses granted pursuant to this article 3.
(4)
(a)
Except as provided in subsection (4)(b) of this section, it is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a retail liquor store to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3.
(b)
An owner, part owner, shareholder, or person interested directly or indirectly in a retail liquor store may have an interest in:
(I)
An arts license granted under this article 3;
(II)
An airline public transportation system license granted under this article 3;
(III)
For a retail liquor store licensed on or before January 1, 2016, and whose license holder is a Colorado resident, additional retail liquor store licenses as follows, but only if the premises for which a license is sought satisfies the distance requirements specified in subsection (1)(a)(II) of this section:
(A)
On or after January 1, 2017, and before January 1, 2022, one additional retail liquor store license, for a maximum of up to two total retail liquor store licenses;
(B)
On or after January 1, 2022, and before January 1, 2027, up to two additional retail liquor store licenses, for a maximum of three total retail liquor store licenses; and
(C)
On or after January 1, 2027, up to three additional retail liquor store licenses, for a maximum of four total retail liquor store licenses; or
(IV)
A financial institution referred to in section
44-3-308 (4)
.
(5)
A liquor-licensed drugstore may apply to the state and local licensing authorities, as part of a single application, for a merger and conversion of retail liquor store licenses to a single liquor-licensed drugstore license as provided in section
44-3-410 (1)(b)
.
(6)
(a)
A selling licensee may sell or otherwise transfer all of the licensee's alcohol beverage inventory to another licensed retail liquor store as provided in this subsection (6).
(b)
(I)
The selling licensee must sell all of the licensee's alcohol beverage inventory to only one acquiring licensee.
(II)
In determining the cost of the alcohol beverage inventory, the selling licensee shall charge, and the acquiring licensee must pay, the highest amount the selling licensee paid for each alcohol beverage in the acquiring licensee's inventory at the time the inventory is acquired.
(c)
Both the selling licensee and the acquiring licensee shall give notice to the state and local licensing authorities of the sale or transfer of the inventory not less than fifteen days before the sale occurs.
(d)
(I)
Prior to accepting payment from an acquiring licensee, the selling licensee shall notify all wholesalers from which the selling licensee purchased alcohol beverages within the four months immediately preceding the date of the sale or transfer, informing the wholesalers of the impending sale or transfer.
(II)
Within fifteen business days after receiving the notice sent pursuant to subsection (6)(d)(I) of this section, a wholesaler shall notify the acquiring licensee and the selling licensee of any outstanding debt owed by the selling licensee to the wholesaler for the products being sold or transferred.
(III)
If an acquiring licensee receives notice of an outstanding debt owed by the selling licensee pursuant to subsection (6)(d)(II) of this section, the acquiring licensee shall first satisfy the selling licensee's debt with the wholesaler. The acquiring licensee shall pay any remaining money owed for the purchased inventory after payment has been made to any wholesalers that notified the acquiring licensee in a manner consistent with the agreement between the selling licensee and the acquiring licensee.
(IV)
If a wholesaler fails to provide notice of any indebtedness owed to the wholesaler by the selling licensee within the time specified in subsection (6)(d)(II) of this section, the acquiring licensee is excused of any liability for the outstanding debt the selling licensee owes the wholesaler.
(e)
At the time that the selling licensee offers its alcohol beverage inventory for sale to an acquiring licensee, the selling licensee shall also give notice to all licensed wholesalers of the offer, and the selling licensee shall immediately, upon giving notice, cease to purchase any further product from a licensed wholesaler.
(f)
(I)
After the selling licensee's alcohol beverage inventory is purchased, the selling licensee's license is canceled, invalid, and considered to have been surrendered. Except as provided in subsection (6)(f)(II) of this section, the state or a local licensing authority shall not issue a new retail liquor store license at the location of the selling licensee's premises or within one thousand five hundred feet of the licensed premises for the five years immediately following the date the license is canceled, invalidated, or considered surrendered.
(II)
The state and local licensing authorities may approve a transfer of ownership that enables a new licensee to operate at the same premises if the conditions in subsection (7) of this section are met.
(7)
(a)
An acquiring licensee may, subject to approval from the state and local licensing authorities and the limitations specified in subsection (4)(b)(III) of this section, obtain the retail liquor license of a selling licensee when the alcohol beverage inventory of the selling licensee is transferred to the acquiring licensee if:
(I)
The licensed premises of the selling licensee does not exceed ten thousand square feet; and
(II)
The acquisition of the license is approved by the state and local licensing authorities for a change of ownership as required by section 44-3-303.
(b)
If the acquiring licensee owns more than one retail liquor store license, the purchased alcohol beverage inventory may be paid for by the acquiring licensee, and the acquiring licensee may allocate the cost between or among all of the retail liquor stores owned by the acquiring licensee, so long as the allocation occurs prior to or at the time the alcohol beverage is removed from the premises of the selling licensee.
(c)
Upon entering into an agreement for the sale of the selling licensee's alcohol beverage inventory, the selling licensee and the acquiring licensee shall provide notice of the pending sale to the state licensing authority, which shall post the notice on the liquor enforcement division's website.
(d)
The acquiring licensee must transport the alcohol beverage it purchased from the selling licensee and may only transport the alcohol beverages to the acquiring licensee's licensed premises or to one of the other licensed premises owned by the acquiring licensee.
(8)
As used in this section:
(a)
"Acquiring licensee" means a licensed retail liquor store purchasing or attempting to purchase the inventory of a selling licensee.
(b)
"Selling licensee" means a licensed retail liquor store that is surrendering its license.
Amended by 2024 Ch. 205,§ 13, eff. 8/7/2024.
Renumbered from C.R.S. § 12-47-407 and amended by 2018 Ch. 152, § 2, eff. 10/1/2018.
Amended by 2018 Ch. 366, § 8, eff. 6/4/2018, except that amendments to (2) and (3) are effective 1/1/2019.
Amended by 2018 Ch. 4, § 2, eff. 3/1/2018.
Amended by 2017 Ch. 333, § 2, eff. 8/9/2017.
Amended by 2016 Ch. 365, § 13, eff. 7/1/2016.
L. 2018: (1)(a)(I) amended, (SB 18-067), ch. 4, p. 31, § 2, effective March 1; (1)(a)(II) amended, (SB 18-243), ch. 366, p. 2201, § 8, effective June 4; entire article added with relocations, (HB 18-1025), ch. 152, p. 1005, § 2, effective October 1; (2) and (3) amended, (SB 18-243), ch. 366, p. 2201, § 8, effective 1/1/2019.
(1) This section is similar to former § 12-47-407 as it existed prior to 2018.
(2) (a) Subsection (1)(a)(I) of this section was numbered as § 12-47-407(1)(a)(I) in SB 18-067. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025.
(b) Subsection (1)(a)(II) of this section was numbered as § 12-47-407(1)(a)(II) in SB 18-243. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025.
(c) Subsections (2) and (3) of this section were numbered as § 12-47-407(2) and (3), respectively, in SB 18-243. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025, effective January 1, 2019.
2024 Ch. 205, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
This section is set out more than once due to postponed, multiple, or conflicting amendments.
For the legislative declaration in SB 18-243, see section 1 of chapter 366, Session Laws of Colorado 2018.