(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) Repealed.
(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.