(1) A Colorado limited winery
license shall be granted by the state licensing authority to an applicant that
certifies that it will manufacture not more than one hundred thousand gallons, or
the metric equivalent thereof, of vinous liquors within Colorado. Each limited winery
licensee shall annually certify to the state licensing authority its compliance with
this subsection (1) and shall be subject to revocation of its license for false
certification.
(2) A limited winery licensee is authorized:
(a) To manufacture vinous liquors upon its licensed premises and, in order to
enhance the growth and viability of the Colorado wine industry, upon alternating
proprietor licensed premises, as approved by the state licensing authority;
(b) To sell vinous liquors of its own manufacture within this state at
wholesale, at retail, or to personal consumers, including, if the limited winery also
has received a winery direct shipper's permit under section 44-3-104, sales to be
delivered by common carrier or by the limited winery licensee to personal
consumers in accordance with all requirements in section 44-3-104;
(c) To sell vinous liquors of its own manufacture in other states, the laws of
which permit the sale of such wines and liquors;
(d) To sell vinous liquors of its own manufacture for export to foreign
countries if such export is permitted by the laws of the United States;
(e) (I) (A) Except as provided in subsection (2)(e)(I)(B) of this section and
subject to subsection (2)(e)(II) of this section, to conduct tastings and sell vinous
liquors of its own manufacture, as well as vinous liquors manufactured by other
Colorado wineries, on the licensed premises of the limited winery and up to five
other approved sales room locations, whether included in the license at the time of
the original license issuance or by supplemental application. If the licensed
premises includes multiple noncontiguous locations, the licensee may operate a
sales room on only one of those noncontiguous locations. Any additional sales room
operated on a noncontiguous location of the licensed premises must be approved
as one of the licensee's additional sales rooms allowed under this subsection
(2)(e)(I)(A) in accordance with the process outlined in subsection (2)(e)(II) of this
section.
(B) A limited winery licensee shall not conduct retail sales from an area
licensed or defined as an alternating proprietor licensed premises.
(II) (A) Prior to operating a sales room location, a limited winery 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 (2)(e)(II)(B) of this section, to the
state licensing authority but must submit its response within forty-five days after
the licensed limited winery submits its sales room application to the state licensing
authority, or, for purposes of an application to operate a temporary sales room for
not more than three consecutive days, within the time specified by the state
licensing authority by rule. If the local licensing authority does not submit a
response to the state licensing authority within the time specified in this subsection
(2)(e)(II)(A), 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) The state licensing authority shall not grant approval of an additional
sales room unless the applicant affirms to the state licensing authority that the
limited winery applicant has complied with local zoning restrictions.
(D) A licensed limited winery that is operating a sales room as of August 5,
2015, or that is granted approval pursuant to this subsection (2)(e)(II) to operate a
sales room on or after August 5, 2015, shall notify the state licensing authority of
all sales rooms it operates. The state licensing authority shall maintain a list of all
limited winery licensee sales rooms in the state and make the list available on its
website.
(E) The local licensing authority may request that the state licensing
authority take action in accordance with section 44-3-601 against a licensed limited
winery 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).
(F) This subsection (2)(e)(II) does not apply if the licensed limited winery does
not sell and serve vinous liquors for consumption on the licensed premises or in an
approved sales room.
(f) To serve and sell food, general merchandise, and nonalcohol beverages
for consumption on the premises of any licensed premises or to be taken by the
consumer.
(3) In order to encourage and maintain the integrity and authenticity of
Colorado's viticultural identity, support the wine-grape and fruit growing industries
in Colorado, and inform the consumer of the source of grapes and fruit used by
Colorado limited wineries to produce vinous liquors, the liquor enforcement division
shall, after consultation with the Colorado wine industry and other interested
parties from the alcohol beverage industry, within one year after June 1, 2005, enact
rules for the implementation, standardization, and enforcement of appellation
labeling requirements that are consistent with, and, with respect to the origin of the
grapes and other fruit used to manufacture the vinous liquor, more informative than
currently required by federal wine labeling regulations set forth in 27 CFR 4,
Labeling and Advertising of Wine, and related regulations. Colorado's labeling
regulations shall apply to a manufacturer licensed pursuant to section 44-3-402 or
a Colorado limited winery licensed under this section in the manufacture of the
vinous liquor contained in the labeled bottle. Honey wine, including honey wine
flavored with fruit, herbs, or spices, shall be exempt from the labeling requirements
included in this section.
(4) (a) A winery may affix the phrase Colorado Grown to bottles of wine
described in section 44-3-103 (10).
(b) Effective July 1, 2006, it shall be unlawful for a Colorado winery to make
any misleading statement on its product label regarding the origin of grapes, fruit,
or other agricultural products used to make vinous liquor. This subsection (4)(b)
shall not be construed to apply to the winery's name or address or to an appellation
allowed under federal regulations.
(5) A person who has a financial interest in a limited winery license and
relinquishes such license to apply for another license under this article 3 shall be
prohibited from obtaining a limited winery license for three years from the date of
issuance of such other license.
(6) (a) It is unlawful for any limited winery licensee or any person,
partnership, association, organization, or corporation interested financially in or
with a limited winery licensee to be interested financially, directly or indirectly, in
the business of any person licensed to sell at retail pursuant to this article 3.
(b) It is unlawful for any limited winery licensee or any person, partnership,
association, organization, or corporation interested financially in or with a limited
winery licensee to be interested financially, directly or indirectly, in the business of
any vinous or spirituous wholesale licensee.