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 44-3-407 - [Effective 8/7/2024] Wholesaler's license - discrimination in wholesale sales prohibited - rules

(1)
(a)
A wholesaler's liquor license shall be issued to persons selling vinous or spirituous liquors at wholesale for the following purposes only:
(I)
To maintain and operate one or more warehouses in this state to handle vinous or spirituous liquors;
(II)
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;
(III)
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.
(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:
(A)
To maintain and operate warehouses and one sales room in this state to handle malt liquors to be denominated a wholesale beer store;
(B)
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.
(II)
(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.
(B)
The state licensing authority must consider the response from the local licensing authority, if any, and may deny the proposed sales room application if the local licensing authority determines that approval of the proposed sales room will impact traffic, noise, or other neighborhood concerns in a manner that is inconsistent with local regulations or ordinances, which may be determined by the local licensing authority without requiring a public hearing, or that the applicant cannot sufficiently mitigate any potential impacts identified by the local licensing authority.
(C)
A wholesaler's beer licensee that is operating a sales room as of August 5, 2015, or that is granted approval pursuant to this subsection (1)(b)(II) to operate a sales room on or after August 5, 2015, shall notify the state licensing authority of its sales room. The state licensing authority shall maintain a list of all wholesaler's beer licensee sales rooms in the state and make the list available on its website.
(D)
The local licensing authority may request that the state licensing authority take action in accordance with section
44-3-601
against a wholesaler's beer licensee approved to operate a sales room if the local licensing authority demonstrates to the state licensing authority that the licensee has engaged in an unlawful act as set forth in part 9 of this article 3 or shows good cause as specified in section
44-3-103 (19)(a), (19)(b), or (19)(d)
.
(E)
This subsection (1)(b)(II) does not apply if the wholesaler's beer licensee does not sell and serve malt liquors for consumption on the licensed premises.
(c)
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.
(d)
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.
(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.
(II)
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.
(f)
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.
(1.5)
(a)
A licensed wholesaler may hold trade show events to allow retailers to sample products on the wholesaler's licensed premises in an area designated for trade show events. A wholesaler shall not open trade show events to the general public.
(b)
(I)
Except as provided in subsection (1.5)(b)(II) of this section, A wholesaler may hold a trade show event on the wholesaler's licensed premises.
(II)
A wholesaler shall not hold a trade show event in:
(A)
The docking, delivery, or warehouse storage areas of the licensed premises, unless the warehouse is a designated area for a trade show event or is isolated and excluded from ongoing business activity; or
(B)
A sales room during any time when the sales room is open to the general public.
(c)
The state licensing authority may promulgate rules implementing This subsection (1.5).
(2)
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.
(3)
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 of vinous or spirituous liquors; except that any such financial interest that occurred on or before July 1, 1969, is lawful.
(4)
(a)
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.
(b)
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.
Amended by 2024 Ch. 205,§ 12, eff. 8/7/2024.
Amended by 2019 Ch. 1, § 10, eff. 1/31/2019.
Renumbered from C.R.S. § 12-47-406 and amended by 2018 Ch. 152, § 2, eff. 10/1/2018.
Amended by 2016 Ch. 365, § 12, eff. 7/1/2016.
Amended by 2016 Ch. 80, § 1, eff. 4/14/2016.
Amended by 2015 Ch. 194, § 5, eff. 8/5/2015.
L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 999, § 2, effective October 1.
This section is similar to former § 12-47-406 as it existed prior to 2018.
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.