Second Regular Session Seventy-third General Assembly STATE OF COLORADO INTRODUCED LLS NO. 22-0941.04 Yelana Love x2295 HOUSE BILL 22-1417 House Committees Senate Committees Business Affairs & Labor A BILL FOR AN ACT C ONCERNING THE REGULATION OF ALCOHOL BEVERAGES , AND, IN101 CONNECTION THEREWITH , CREATING AN ALCOHOL BEVERAGE102 REGULATION TASK FORCE , INCREASING THE NUMBER OF STORES103 A RETAIL LIQUOR STORE LICENSEE IS ALLOWED TO OWN ,104 CREATING THE BEER -AND-WINE-LICENSED GROCERY STORE105 LICENSE, AND CONVERTING LIQUOR -LICENSED DRUGSTORE106 LICENSES TO BEER -AND-WINE-LICENSED GROCERY STORE107 LICENSES.108 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at HOUSE SPONSORSHIP Roberts and Larson, SENATE SPONSORSHIP (None), Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. http://leg.colorado.gov.) The bill creates a task force in the department of revenue to study the regulation of alcohol beverages. The task force is required to review the current statutes regulating alcohol beverages and make recommendations concerning how to modernize, clarify, and harmonize the statutes. The task force is required to report its findings to the general assembly by December 1, 2023. The bill modifies laws governing the licensure of retail liquor stores and liquor-licensed drugstores and creates the new beer-and-wine-licensed grocery store license. With regard to retail liquor store licenses, the bill: ! Removes the requirement that a new retail liquor store must be located a certain distance from an existing liquor-licensed drugstore; ! Expands the minimum distance between a new retail liquor store and other existing retail liquor stores from 1,500 feet to 3,000 feet; ! Effective January 1, 2024, removes the requirement that only an employee of the retail liquor store may deliver alcohol beverages and instead allows delivery by any person who is authorized by the retail liquor store, subject to specified requirements including that the licensee or the authorized deliverer obtain a delivery permit from the state licensing authority and other requirements specified in state licensing authority rules; and ! Increases the maximum number of retail liquor store licenses that a person may own. With regard to liquor-licensed drugstore licenses, the bill: ! Prohibits the state and local licensing authorities from issuing new liquor-licensed drugstore licenses after the date the bill takes effect and repeals provisions related to the ability of liquor-licensed drugstore licensees to obtain additional licenses; ! Allows a liquor-licensed drugstore licensed before January 1, 2022, to continue to renew the licensee's license, unless the license has converted to a beer-and-wine-licensed grocery store license; ! On January 1, 2026, converts every liquor-licensed drugstore license in effect on that date to a beer-and-wine-licensed grocery store license, unless the licensee chooses to remain a liquor-licensed drugstore, and eliminates the ability of those licensees that convert to a beer-and-wine-licensed grocery store license to sell spirituous liquors; and HB22-1417 -2- ! Effective January 1, 2024, removes the requirement that only an employee of the liquor-licensed drugstore may deliver alcohol beverages and instead allows delivery by any person who is authorized by the liquor-licensed drugstore, subject to specified requirements including that the licensee or the authorized deliverer obtain a delivery permit from the state licensing authority and other requirements specified in state licensing authority rules. With regard to beer-and-wine-licensed grocery store licenses, the bill: ! Creates the new license, available on or after January 1, 2026, with requirements similar to the requirements applicable to liquor-licensed drugstores, to permit a grocery store that obtains the license to sell beer and wine only; ! Specifies that a beer-and-wine-licensed grocery store cannot be located within 1,500 feet of a retail liquor store; ! Allows a beer-and-wine-licensed grocery store to deliver beer and wine to its customers under the same requirements applicable to retail liquor stores and liquor-licensed drugstores; ! Allows a beer-and-wine grocery store to own multiple stores as follows: On and after January 1, 2026, and before January 1, 2027, a maximum of 8 stores; on and after January 1, 2027, and before January 1, 2032, a maximum of 13 stores; on and after January 1, 2032, and before January 1, 2037, a maximum of 20 stores; and on and after January 1, 2037, an unlimited number of additional stores; ! Allows a licensee licensed as a liquor-licensed drugstore on December 31, 2025, whose license converted to a beer-and-wine-licensed grocery store license on January 1, 2026, to transfer any spirituous liquors in its possession to a licensee authorized to sell spirituous liquors but prohibits the licensee from selling spirituous liquors; ! Permits a beer-and-wine-licensed grocery store to offer tastings on the licensed premises if authorized by the local licensing authority; and ! Defines "grocery store" as an establishment that generates at least 20% of its gross annual income from the sale of food items. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, add 44-3-108 as2 HB22-1417-3- follows:1 44-3-108. Alcohol beverage regulation task force - legislative2 declaration - creation - membership - duties - report - definitions -3 repeal. (1) (a) T HE GENERAL ASSEMBLY HEREBY FINDS THAT :4 (I) T HERE HAS NOT BEEN A BROAD REVIEW OF THE "COLORADO5 L IQUOR CODE", THE "COLORADO BEER CODE", ARTICLE 4 OF THIS TITLE6 44, OR THE OTHER STATUTES REGULATING ALCOHOL BEVERAGES IN7 RECENT HISTORY;8 (II) G ROWTH IN THE INDUSTRY AND CHANGES IN CONSUMER9 BEHAVIOR, MUCH OF WHICH WAS ACCELERATED BY THE COVID-1910 PANDEMIC, HAVE CREATED AN OPPORTUNITY FOR ENHANCED STATUTORY11 CLARITY IN ORDER TO ALLEVIATE CHALLENGES ASSOCIATED WITH12 INTERPRETING AND ENFORCING THE LAWS ;13 (III) A DDITIONALLY, THE STATUTES REGULATING ALCOHOL14 BEVERAGES HAVE UNDERGONE LEGISLATIVE CHANGES IN RECENT YEARS15 TO ADDRESS SPECIFIC NICHE ISSUES, WHICH CHANGES OFTEN DO NOT TAKE16 INTO ACCOUNT A HOLISTIC VIEW OF THE CODES , AND SIGNIFICANT17 CHANGES ARE CURRENTLY UNDER CONSIDERATION , EITHER THROUGH18 LEGISLATION OR BALLOT INITIATIVE, THAT COULD FURTHER COMPLICATE19 THE STATUTES;20 (IV) T HE DEPARTMENT HAS NOTED CONSIDERABLE CHALLENGES21 IN STATUTORY APPLICATION GIVEN THE COMPLEXITY , PERCEIVED22 CONTRADICTIONS, AND RAPIDLY EVOLVING MARKETPLACE INNOVATIONS23 THAT HAVE OCCURRED WITHIN THE ALCOHOL BEVERAGE INDUSTRY ; AND24 (V) I N ORDER TO FACILITATE STATUTORY COMPLIANCE BY25 LICENSEES, IT IS ESSENTIAL THAT THE DEPARTMENT AND THE ALCOHOL26 BEVERAGE INDUSTRY HAVE A CLEAR , LOGICAL, AND TRANSPARENT27 HB22-1417 -4- REGULATORY FRAMEWORK THAT ALLOWS FOR UNDERSTANDABLE1 REGULATIONS AND ENFORCEMENT , FOSTERS A STRONG INDUSTRY , AND2 SUPPORTS THE DEPARTMENT 'S GOAL OF PUBLIC SAFETY.3 (b) T HEREFORE, THE GENERAL ASSEMBLY FINDS THAT A TASK4 FORCE COMPRISED OF A BROAD REPRESENTATION OF INTERESTS WILL5 PROVIDE A FORUM TO CRAFT LEGISLATIVE RECOMMENDATIONS FOCUSED6 ON CLARIFYING AND MODERNIZING THE STATUTES REGULATING ALCOHOL7 BEVERAGES IN A WAY THAT POSITIONS THE STATE OF COLORADO, THE8 DEPARTMENT, AND THE ALCOHOL BEVERAGE INDUSTRY FOR SUCCESS FOR9 DECADES TO COME.10 (2) T HERE IS HEREBY CREATED IN THE DEPARTMENT THE ALCOHOL11 BEVERAGE REGULATION TASK FORCE , REFERRED TO IN THIS SECTION AS12 THE "TASK FORCE".13 (3) (a) T HE TASK FORCE CONSISTS OF TWENTY-SIX MEMBERS, ONE14 OF WHOM SHALL BE THE STATE LICENSING AUTHORITY OR THE STATE15 LICENSING AUTHORITY'S DESIGNEE, AND TWENTY-FIVE OF WHOM SHALL BE16 APPOINTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT AS17 FOLLOWS:18 (I) O NE MEMBER REPRESENTING A LARGE BREWERY , AS19 DETERMINED BY THE EXECUTIVE DIRECTOR ;20 (II) O NE MEMBER REPRESENTING A SMALL BREWERY , AS21 DETERMINED BY THE EXECUTIVE DIRECTOR ;22 (III) O NE MEMBER REPRESENTING A LOCAL MANUFACTURER OF23 SPIRITUOUS LIQUORS;24 (IV) O NE MEMBER REPRESENTING A NATIONAL MANUFACTURER OF25 SPIRITUOUS LIQUORS;26 (V) O NE MEMBER REPRESENTING A LOCAL MANUFACTURER OF27 HB22-1417 -5- VINOUS LIQUORS; 1 (VI) O NE MEMBER REPRESENTING A NATIONAL MANUFACTURER OF2 VINOUS LIQUORS; 3 (VII) T WO MEMBERS REPRESENTING LARGE OFF -PREMISES4 RETAILERS;5 (VIII) T WO MEMBERS REPRESENTING MEDIUM OFF -PREMISES6 RETAILERS;7 (IX) T WO MEMBERS REPRESENTING SMALL OFF -PREMISES8 RETAILERS;9 (X) O NE MEMBER REPRESENTING A WHOLESALER OF MALT10 LIQUORS;11 (XI) O NE MEMBER REPRESENTING A WHOLESALER OF VINOUS AND12 SPIRITUOUS LIQUORS;13 (XII) O NE MEMBER REPRESENTING A WHOLESALER OF ANY TYPE14 OF ALCOHOL BEVERAGE WHO HAS NATIONAL WHOLESALING EXPERIENCE ;15 (XIII) O NE MEMBER REPRESENTING THE HARD CIDER INDUSTRY ;16 (XIV) O NE MEMBER REPRESENTING A RESTAURANT ;17 (XV) O NE MEMBER REPRESENTING A TAVERN ;18 (XVI) O NE MEMBER REPRESENTING A LODGING AND19 ENTERTAINMENT LICENSEE;20 (XVII) O NE REPRESENTATIVE FROM MOTHERS AGAINST DRUNK21 D RIVING, OR ITS SUCCESSOR ORGANIZATION;22 (XVIII) O NE REPRESENTATIVE FROM COLORADO COUNTIES, INC.,23 OR ITS SUCCESSOR ORGANIZATION;24 (XIX) O NE REPRESENTATIVE FROM THE COLORADO MUNICIPAL25 L EAGUE, OR ITS SUCCESSOR ORGANIZATION;26 (XX) O NE REPRESENTATIVE FROM THE COLORADO STATE PATROL;27 HB22-1417 -6- (XXI) ONE REPRESENTATIVE FROM THE COLORADO ASSOCIATION1 OF CHIEFS OF POLICE; AND2 (XXII) O NE REPRESENTATIVE FROM COUNTY SHERIFFS OF3 C OLORADO.4 (b) A S USED IN THIS SUBSECTION (3), FOR THE PURPOSES OF5 MAKING APPOINTMENTS PURSUANT TO THIS SUBSECTION (3):6 (I) "L ARGE" MEANS A LICENSEE THAT HAS THREE OR MORE7 LICENSED PREMISES IN THE STATE OR THAT EMPLOYS ONE HUNDRED OR8 MORE EMPLOYEES;9 (II) "M EDIUM" MEANS A LICENSEE THAT HAS AT LEAST TWO10 LICENSED PREMISES IN THE STATE OR THAT EMPLOYS AT LEAST FIFTY AND11 NO MORE THAN NINETY-NINE EMPLOYEES;12 (III) "O FF-PREMISES RETAILER" MEANS A PERSON LICENSED UNDER13 SECTION 44-3-409, 44-3-410, 44-4-107 (1)(a), OR ANY OTHER PROVISION14 OF THIS ARTICLE 3 OR ARTICLE 4 OF THIS TITLE 44 THAT AUTHORIZES A15 LICENSEE TO SELL ALCOHOL BEVERAGES ONLY TO CONSUMERS FOR16 CONSUMPTION OFF THE LICENSED PREMISES ; AND17 (IV) "S MALL" MEANS A LICENSEE THAT HAS NO MORE THAN ONE18 LICENSED PREMISES IN THE STATE OR THAT EMPLOYEES FEWER THAN FIFTY19 EMPLOYEES.20 (4) A LL MEMBERS APPOINTED PURSUANT TO SUBSECTION (3)(a)(I)21 TO (3)(a)(XVI) OF THIS SECTION ARE PREFERRED TO HAVE DEMONSTRABLE22 EXPERIENCE WORKING WITHIN THE SPECIFIC INDUSTRY INTERESTS THEY23 REPRESENT, WHICH EXPERIENCE MUST NOT BE SOLELY IN AN ADVOCACY24 POSITION FOR THOSE INDUSTRY INTERESTS .25 (5) (a) E ACH MEMBER OF THE TASK FORCE APPOINTED PURSUANT26 TO SUBSECTION (3)(a) OF THIS SECTION SERVES:27 HB22-1417 -7- (I) AT THE PLEASURE OF THE OFFICIAL WHO APPOINTED THE1 MEMBER; AND2 (II) WITHOUT COMPENSATION AND WIT HOUT REIMBURSEMENT FOR3 EXPENSES.4 (b) A N APPOINTED TASK FORCE MEMBER MAY DESIGNATE ONE5 OTHER PERSON AUTHORIZED TO ACT IN THE MEMBER 'S ABSENCE BY PROXY,6 AND THE PROXY MAY PERFORM ALL DUTIES IN THE TASK FORCE MEMBER 'S7 ABSENCE, INCLUDING ATTENDING MEETINGS AND VOTING .8 (6) (a) T HE STATE LICENSING AUTHORITY SHALL ORGANIZE AND9 CALL THE FIRST MEETING OF THE TASK FORCE, TO BE HELD NO LATER THAN10 J ULY 31, 2022.11 (b) T HE TASK FORCE SHALL ELECT A CHAIR FROM AMONG ITS12 MEMBERS.13 (c) T HE TASK FORCE SHALL MEET AT LEAST ONCE EVERY MONTH .14 T HE CHAIR MAY CALL ADDITIONAL MEETINGS AS NECESSARY FOR THE15 TASK FORCE TO COMPLETE ITS DUTIES.16 (7) T HE STATE LICENSING AUTHORITY MAY SUBMIT A REQUEST FOR17 PROPOSALS AND HIRE AN OUTSIDE FACILITATOR FOR THE PURPOSE OF18 PROVIDING SUPPORT FOR THE TASK FORCE , GENERATING THE REPORT19 REQUIRED IN SUBSECTION (9) OF THIS SECTION, AND ANY OTHER DUTIES20 ASSIGNED BY THE EXECUTIVE DIRECTOR .21 (8) (a) F OR THE PURPOSE OF MAKING RECOMMENDATIONS TO THE22 GENERAL ASSEMBLY CONCERNING HOW TO MODERNIZE , CLARIFY, AND23 HARMONIZE THE "COLORADO LIQUOR CODE", THE "COLORADO BEER24 C ODE", ARTICLE 4 OF THIS TITLE 44, AND OTHER STATUTES REGULATING25 ALCOHOL BEVERAGES, THE TASK FORCE SHALL REVIEW:26 (I) T HE STATUTES REGULATING ALCOHOL BEVERAGES , CURRENT27 HB22-1417 -8- MARKET TRENDS , AND LAWS AND REGULATIONS FROM OTHER1 JURISDICTIONS;2 (II) R EPORTS AND RECOMMENDATIONS FROM GOVERNING BODIES ,3 INCLUDING THE UNITED STATES DEPARTMENT OF TREASURY REPORT4 ENTITLED "COMPETITION IN THE MARKETS FOR BEER, WINE, AND5 S PIRITS", DATED FEBRUARY 9, 2022; AND6 (III) A NY OTHER MATERIALS DEEMED APPROPRIATE BY THE TASK7 FORCE TO CONSIDER.8 (b) A S THE TASK FORCE MAKES ITS RECOMMENDATIONS , IT SHALL9 CONSIDER THE FOLLOWING GUIDING PRINCIPLES :10 (I) S AFEGUARDING THE INTERESTS AND RIGHTS OF CONSUMERS11 THROUGH CONSUMER PROTECTION MEASURES ;12 (II) P ROTECTING THE GENERAL PUBLIC THROUGH PUBLIC SAFETY13 MEASURES;14 (III) P ROMOTING A FAIR AND OPEN MARKETPLACE :15 (A) I N WHICH PRICE IS REFLECTIVE OF SUPPLY AND DEMAND16 TRENDS AND ESTABLISHED ECONOMIC PRINCIPLES ; AND17 (B) T HAT LIMITS BARRIERS TO ENTRY INTO AND EXIT FROM THE18 ALCOHOL BEVERAGE MARKETPLACE ; AND19 (IV) H OW ANY RECOMMENDATIONS MAY INTERACT WITH OR20 AFFECT OTHER JURISDICTIONS THAT HAVE RESPONSIBILITY FOR THE21 REGULATION OF ALCOHOL BEVERAGES .22 (c) T HE TASK FORCE MAY CREATE SUBCOMMITTEES TO CARRY OUT23 ITS DUTIES UNDER THIS SUBSECTION (8).24 (9) (a) O N OR BEFORE DECEMBER 1, 2023, THE TASK FORCE SHALL25 REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE BUSINESS AFFAIRS26 AND LABOR COMMITTEE OF THE HOUSE OF REPRESENTATIVES AND THE27 HB22-1417 -9- BUSINESS, LABOR, AND TECHNOLOGY COMMITTEE OF THE SENATE , OR ANY1 SUCCESSOR COMMITTEES. THE REPORT MUST INCLUDE:2 (I) A NY AGREED-UPON LEGISLATIVE OR ADMINISTRATIVE3 RECOMMENDATIONS ; AND4 (II) A SYNOPSIS OF DISSENTING VOTES, IF ANY, AND REASONS FOR5 THE DISSENTING VOTES , IF AVAILABLE, REGARDING ANY REPORT6 RECOMMENDATIONS THAT ARE NOT UNANIMOUS .7 (b) A S USED IN SUBSECTION (9)(a)(I) OF THIS SECTION,8 " AGREED-UPON" MEANS A SIMPLE MAJORITY OF TASK FORCE MEMBERS9 PRESENT, UNLESS THE TASK FORCE, AT ITS INITIAL MEETING, DETERMINES10 DIFFERENT PARAMETERS FOR WHAT CONSTITUTES AN "AGREED-UPON"11 RECOMMENDATION .12 (10) T HIS SECTION IS REPEALED, EFFECTIVE MAY 1, 2024.13 SECTION 2. In Colorado Revised Statutes, 44-3-409, amend14 (1)(a)(II), (3), (4)(b)(III), and (4)(b)(IV); repeal (5); and add (4)(b)(V)15 as follows:16 44-3-409. Retail liquor store license - rules - repeal.17 (1) (a) (II) On and after July 1, 2016 THE EFFECTIVE DATE OF THIS18 SUBSECTION (1)(a)(II), AS AMENDED, the state and local licensing19 authorities shall not issue a new retail liquor store license if the premises20 for which the retail liquor store license is sought is located WITHIN THREE21 THOUSAND FEET OF ANOTHER RETAIL LIQUOR STORE LICENSED UNDER THIS22 SECTION.23 (A) Within one thousand five hundred feet of another retail liquor 24 store licensed under this section or a liquor-licensed drugstore licensed25 under section 44-3-410;26 (B) For a premises located in a municipality with a population of27 HB22-1417 -10- ten thousand or fewer, within three thousand feet of another retail liquor1 store licensed under this section or a liquor-licensed drugstore licensed2 under section 44-3-410; or3 (C) For a premises located in a municipality with a population of4 ten thousand or fewer that is contiguous to the city and county of Denver,5 within one thousand five hundred feet of another retail liquor store6 licensed under this section or a liquor-licensed drugstore licensed under7 section 44-3-410.8 (3) (a) (I) A person licensed to sell at retail who THAT complies9 with this subsection (3) and rules promulgated pursuant to this subsection10 (3) may deliver malt, vinous, and spirituous liquors to a person of legal11 age if:12 (I) (A) The person receiving the delivery of malt, vinous, or13 spirituous liquors is located at a place that is not licensed pursuant to this14 section;15 (II) (B) The delivery is made by an employee of the licensed retail16 liquor store who is at least twenty-one years of age and who is using a17 vehicle owned or leased by the licensee to make the delivery;18 (III) (C) The person making the delivery verifies, in accordance19 with section 44-3-901 (11), that the person receiving the delivery of malt,20 vinous, or spirituous liquors is at least twenty-one years of age; and21 (IV) (D) The retail liquor store derives no more than fifty percent22 of its gross annual revenues from total sales of malt, vinous, and23 spirituous liquors from the sale of malt, vinous, and spirituous liquors that24 the retail liquor store delivers.25 (II) T HIS SUBSECTION (3)(a) IS REPEALED, EFFECTIVE JANUARY 1,26 2024.27 HB22-1417 -11- (a.5) ON AND AFTER JANUARY 1, 2024, A RETAIL LIQUOR STORE1 LICENSEE THAT COMPLIES WITH THIS SUBSECTION (3) AND RULES2 PROMULGATED PURSUANT TO THIS SUBSECTION (3) MAY DELIVER MALT,3 VINOUS, AND SPIRITUOUS LIQUORS TO A PERSON OF LEGAL AGE IF : 4 (I) T HE LICENSEE OR A PERSON AUTHORIZED BY THE LICENSEE TO5 MAKE DELIVERIES FOR THE LICENSEE HAS OBTAINED A PERMIT FROM THE6 STATE LICENSING AUTHORITY;7 (II) T HE PERSON RECEIVING THE DELIVERY OF MALT , VINOUS, OR8 SPIRITUOUS LIQUORS IS LOCATED AT A PLACE THAT IS NOT LICENSED9 PURSUANT TO THIS SECTION;10 (III) T HE DELIVERY IS MADE BY A PERSON WHO IS AT LEAST11 TWENTY-ONE YEARS OF AGE AND WHO IS AUTHORIZED BY THE LICENSEE12 TO MAKE THE DELIVERY;13 (IV) T HE PERSON MAKING THE DELIVERY VERIFIES , IN14 ACCORDANCE WITH SECTION 44-3-901 (11), THAT THE PERSON RECEIVING15 THE DELIVERY OF MALT, VINOUS, OR SPIRITUOUS LIQUORS IS AT LEAST16 TWENTY-ONE YEARS OF AGE; AND17 (V) T HE RETAIL LIQUOR STORE DERIVES NO MORE THAN FIFTY18 PERCENT OF ITS GROSS ANNUAL REVENUES FROM TOTAL SALES OF MALT ,19 VINOUS, AND SPIRITUOUS LIQUORS FROM THE SALE OF MALT, VINOUS, AND20 SPIRITUOUS LIQUORS THAT THE RETAIL LIQUOR STORE DELIVERS .21 (b) (I) The state licensing authority shall promulgate rules as22 necessary for the proper delivery of malt, vinous, and spirituous liquors23 and is authorized to issue a permit to any person who is licensed under24 this section to sell at retail and delivers the liquors pursuant to this25 subsection (3) AND TO ANY OTHER PERSON WHO INTENDS TO DELIVER26 MALT, VINOUS, AND SPIRITUOUS LIQUORS ON BEHALF OF THE LICENSEE . A27 HB22-1417 -12- permit issued under this subsection (3) is subject to the same suspension1 and revocation provisions as are set forth in section 44-3-601 for other2 licenses granted pursuant to this article 3.3 (II) B Y JANUARY 1, 2024, THE STATE LICENSING AUTHORITY, BY4 RULE, SHALL ESTABLISH THE REQUIREMENTS FOR OBTAINING A PERMIT TO5 DELIVER ALCOHOL BEVERAGES PURS UANT TO SUBSECTION (3)(a.5) OF THIS6 SECTION. SUCH REQUIREMENTS MUST INCLUDE AN ANNUAL7 FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK , CERTIFICATION8 AS A RESPONSIBLE ALCOHOL BEVERAGE VENDOR IN ACCORDANCE WITH9 PART 10 OF THIS ARTICLE 3, PERMIT FEES, AND ANY OTHER REQUIREMENTS10 THE STATE LICENSING AUTHORITY FINDS APPROPRIATE .11 (4) (b) An owner, part owner, shareholder, or person interested12 directly or indirectly in a retail liquor store may have an interest in:13 (III) For a retail liquor store licensed on or before January 1,14 2016, and whose license holder is a Colorado resident, additional retail15 liquor store licenses as follows, but only if the premises for which a16 license is sought satisfies the distance requirements specified in17 subsection (1)(a)(II) of this section:18 (A) On or after January 1, 2017, and before January 1, 2022, one19 additional retail liquor store license, for a maximum of up to two total20 retail liquor store licenses;21 (B) On or after January 1, 2022, and before January 1, 2027, up22 to two additional retail liquor store licenses, for a maximum of three total23 retail liquor store licenses; and24 (C) On or after January 1, 2027, up to three additional retail liquor25 store licenses, for AND BEFORE JANUARY 1, 2032, a maximum of four total26 retail liquor store licenses; or AND27 HB22-1417 -13- (D) ON OR AFTER JANUARY 1, 2032, A MAXIMUM OF SIX TOTAL1 RETAIL LIQUOR STORE LICENSES;2 (IV) A financial institution referred to in section 44-3-308 (4); OR3 (V) O N OR AFTER THE EFFECTIVE DATE OF THIS SUBSECTION4 (4)(b)(V), AN UNLIMITED NUMBER OF ADDITIONAL RETAIL LIQUOR STORE5 LICENSES SO LONG AS EACH ADDITIONAL RETAIL LIQUOR STORE LICENSE6 IS OBTAINED THROUGH A TRANSFER OF OWNERSHIP .7 (5) A liquor-licensed drugstore may apply to the state and local 8 licensing authorities, as part of a single application, for a merger and9 conversion of retail liquor store licenses to a single liquor-licensed10 drugstore license as provided in section 44-3-410 (1)(b).11 SECTION 3. In Colorado Revised Statutes, 44-3-410, amend12 (1)(a)(I), (1)(a)(II)(A), (1)(b), (3), (4)(b)(IV), and (4)(b)(V); and add (8)13 as follows:14 44-3-410. Liquor-licensed drugstore license - multiple licenses15 permitted - requirements - delivery - rules - repeal. (1) (a) (I) A16 liquor-licensed drugstore license shall be issued to persons selling malt,17 vinous, and spirituous liquors in sealed containers not to be consumed at18 the place where sold; On and after July 1, 2016, except as permitted under19 subsection (1)(b) of this section, the state and local licensing authorities20 shall not issue a new liquor-licensed drugstore license if the licensed21 premises for which a liquor-licensed drugstore license is sought is located22 EXCEPT THAT, ON AND AFTER THE EFFECTIVE DATE OF THIS SUBSECTION23 (1)(a)(I), AS AMENDED, THE STATE OR A LOCAL LICENSING AUTHORITY24 SHALL NOT ISSUE ANY NEW LIQUOR -LICENSED DRUGSTORE LICENSES25 UNDER THIS SECTION.26 (A) Within one thousand five hundred feet of a retail liquor store 27 HB22-1417 -14- licensed under section 44-3-409;1 (B) For a drugstore premises located in a municipality with a2 population of ten thousand or fewer, within three thousand feet of a retail3 liquor store licensed under section 44-3-409; or4 (C) For a drugstore premises located in a municipality with a5 population of ten thousand or fewer that is contiguous to the city and6 county of Denver, within one thousand five hundred feet of a retail liquor7 store licensed under section 44-3-409.8 (II) Nothing in this subsection (1) prohibits:9 (A) The renewal or transfer of ownership of a liquor-licensed10 drugstore license initially issued prior to July 1, 2016 THE EFFECTIVE11 DATE OF THIS SUBSECTION (1)(a)(II)(A), AS AMENDED.12 (b) (I) On or after January 1, 2017, to qualify for an additional13 liquor-licensed drugstore license under this section, a liquor-licensed14 drugstore licensee, or a retail liquor store licensee that was licensed as a15 liquor-licensed drugstore on February 21, 2016, must apply to the state16 and local licensing authorities, as part of a single application, for a17 transfer of ownership of at least two licensed retail liquor stores that were18 licensed or had applied for a license on or before May 1, 2016, a change19 of location of one of the retail liquor stores, and a merger and conversion20 of the retail liquor store licenses into a single liquor-licensed drugstore21 license. The applicant may apply for a transfer, change of location, and22 merger and conversion only if all of the following requirements are met:23 (A) The retail liquor stores that are the subject of the transfer of24 ownership are located within the same local licensing authority25 jurisdiction as the drugstore premises for which the applicant is seeking26 a liquor-licensed drugstore license, and, if any retail liquor stores are27 HB22-1417 -15- located within one thousand five hundred feet of the drugstore premises1 or, for a drugstore premises located in a municipality with a population2 of ten thousand or fewer, within three thousand feet of the drugstore3 premises, the applicant applies to transfer ownership of all retail liquor4 stores located within that distance. If there are no licensed retail liquor5 stores or only one licensed retail liquor store within the same local6 licensing authority jurisdiction as the drugstore premises for which a7 liquor-licensed drugstore license is sought, the applicant shall apply to8 transfer ownership of one or two retail liquor stores, as necessary, that are9 located in the local licensing authority jurisdiction that is nearest to the10 jurisdiction in which the drugstore premises is located.11 (B) Upon transfer and conversion of the retail liquor store licenses12 to a single liquor-licensed drugstore license, the drugstore premises for13 which the liquor-licensed drugstore license is sought will be located at14 least one thousand five hundred feet from all licensed retail liquor stores15 that are within the same local licensing authority jurisdiction as the16 drugstore premises or, for a drugstore premises located in a municipality17 with a population of ten thousand or fewer, at least three thousand feet18 from all licensed retail liquor stores that are within the same local19 licensing authority jurisdiction as the drugstore premises.20 (II) For purposes of determining whether the distance21 requirements specified in subsection (1)(b)(I) of this section are satisfied,22 the distance shall be determined by a radius measurement that begins at23 the principal doorway of the drugstore premises for which the application24 is made and ends at the principal doorway of the licensed retail liquor25 store.26 (III) In making its determination on the transfer of ownership,27 HB22-1417 -16- change of location, and license merger and conversion application, the1 local licensing authority shall consider the reasonable requirements of the2 neighborhood and the desires of the adult inhabitants in accordance with3 section 44-3-312.4 (IV) In addition to any other requirements for licensure under this5 section or this article 3, a person applying for a new liquor-licensed6 drugstore license in accordance with this subsection (1)(b) on or after7 January 1, 2017, or to renew a liquor-licensed drugstore license issued on8 or after January 1, 2017 PRIOR TO THE EFFECTIVE DATE OF THIS9 SUBSECTION (1)(b)(IV), AS AMENDED, under this subsection (1)(b)10 SECTION must:11 (A) Provide evidence to the state and local licensing authorities12 that at least twenty percent of the licensee's gross annual income derived13 from total sales during the prior twelve months at the drugstore premises14 for which a new or renewal licenses LICENSE is sought is from the sale of15 food items, as defined by the state licensing authority by rule; and16 (B) Make and keep its premises open to the public.17 (3) (a) (I) A liquor-licensed drugstore licensee who THAT18 complies with this subsection (3) and rules promulgated pursuant to this19 subsection (3) may deliver malt, vinous, and spirituous liquors to a person20 of legal age if:21 (I) (A) The person receiving the delivery of malt, vinous, or22 spirituous liquors is located at a place that is not licensed pursuant to this23 section;24 (II) (B) The delivery is made by an employee of the25 liquor-licensed drugstore who is at least twenty-one years of age and who26 is using a vehicle owned or leased by the licensee to make the delivery;27 HB22-1417 -17- (III) (C) The person making the delivery verifies, in accordance1 with section 44-3-901 (11), that the person receiving the delivery of malt,2 vinous, or spirituous liquors is at least twenty-one years of age; and3 (IV) (D) The liquor-licensed drugstore derives no more than fifty4 percent of its gross annual revenues from total sales of malt, vinous, and5 spirituous liquors from the sale of malt, vinous, and spirituous liquors that6 the liquor-licensed drugstore delivers.7 (II) T HIS SUBSECTION (3)(a) IS REPEALED, EFFECTIVE JANUARY 1,8 2024.9 (a.5) O N AND AFTER JANUARY 1, 2024, A LIQUOR-LICENSED10 DRUGSTORE LICENSEE THAT COMPLIES WITH THIS SUBSECTION (3) AND11 RULES PROMULGATED PURSUANT TO THIS SUBSECTION (3) MAY DELIVER12 MALT, VINOUS, AND SPIRITUOUS LIQUORS TO A PERSON OF LEGAL AGE IF :13 (I) T HE LICENSEE OR A PERSON AUTHORIZED BY THE LICENSEE TO14 MAKE DELIVERIES FOR THE LICENSEE HAS OBTAINED A PERMIT FROM THE15 STATE LICENSING AUTHORITY;16 (II) T HE PERSON RECEIVING THE DELIVERY OF MALT , VINOUS, OR17 SPIRITUOUS LIQUORS IS LOCATED AT A PLACE THAT IS NOT LICENSED18 PURSUANT TO THIS SECTION;19 (III) T HE DELIVERY IS MADE BY A PERSON WHO IS AT LEAST20 TWENTY-ONE YEARS OF AGE AND WHO IS AUTHORIZED BY THE LICENSEE21 TO MAKE THE DELIVERY;22 (IV) T HE PERSON MAKING THE DELIVERY VERIFIES , IN23 ACCORDANCE WITH SECTION 44-3-901 (11), THAT THE PERSON RECEIVING24 THE DELIVERY OF MALT, VINOUS, OR SPIRITUOUS LIQUORS IS AT LEAST25 TWENTY-ONE YEARS OF AGE; AND26 (V) T HE LIQUOR-LICENSED DRUGSTORE DERIVES NO MORE THAN27 HB22-1417 -18- FIFTY PERCENT OF ITS GROSS ANNUAL REVENUES FROM TOTAL SALES OF1 MALT, VINOUS, AND SPIRITUOUS LIQUORS FROM THE SALE OF MALT ,2 VINOUS, AND SPIRITUOUS LIQUORS THAT THE LIQUOR -LICENSED3 DRUGSTORE DELIVERS.4 (b) (I) The state licensing authority shall promulgate rules as5 necessary for the proper delivery of malt, vinous, and spirituous liquors6 and is authorized to issue a permit to any liquor-licensed drugstore7 licensee that will allow the licensee to deliver PERSON WHO IS LICENSED8 UNDER THIS SECTION TO SELL AT RETAIL AND DELIVER the MALT, VINOUS,9 AND SPIRITUOUS liquors pursuant to the rules and this subsection (3) AND10 TO ANY OTHER PERSON WHO INTENDS TO DELIVER MALT , VINOUS, AND11 SPIRITUOUS LIQUORS ON BEHALF OF THE LICENSEE. A permit issued under12 this subsection (3) is subject to the same suspension and revocation13 provisions as are set forth in sections 44-3-306 and SECTION 44-3-601 for14 other licenses granted pursuant to this article 3.15 (II) B Y JANUARY 1, 2024, THE STATE LICENSING AUTHORITY, BY16 RULE, SHALL ESTABLISH THE REQUIREMENTS FOR OBTAINING A PERMIT TO17 DELIVER ALCOHOL BEVERAGES PURS UANT TO SUBSECTION (3)(a.5) OF THIS18 SECTION. SUCH REQUIREMENTS MUST INCLUDE AN ANNUAL19 FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK , CERTIFICATION20 AS A RESPONSIBLE ALCOHOL BEVERAGE VENDOR IN ACCORDANCE WITH21 PART 10 OF THIS ARTICLE 3, PERMIT FEES, AND ANY OTHER REQUIREMENTS22 THE STATE LICENSING AUTHORITY FINDS APPROPRIATE .23 (4) (b) An owner, part owner, shareholder, or person interested24 directly or indirectly in a liquor-licensed drugstore may have an interest25 in:26 (IV) For a liquor-licensed drugstore licensed on or before January27 HB22-1417 -19- 1, 2016, or a liquor-licensed drugstore licensee that was licensed as a1 liquor-licensed drugstore on February 21, 2016, that converted its license2 to a retail liquor store license after February 21, 2016, and that applied on3 or before May 1, 2017, to convert its retail liquor store license back to a4 liquor-licensed drugstore license, additional liquor-licensed drugstore5 licenses as follows, but only if obtained in accordance with subsection6 (1)(b) of this section, AS SUBSECTION (1)(b) EXISTED PRIOR TO THE7 EFFECTIVE DATE OF THIS SUBSECTION (4)(b)(IV), AS AMENDED: 8 (A) On or after January 1, 2017, and before January 1, 2022, four9 additional liquor-licensed drugstore licenses, for a maximum of five total10 liquor-licensed drugstore licenses; AND11 (B) On or after January 1, 2022, and before January 1, 2027, up 12 to seven additional liquor-licensed drugstore licenses, for a maximum of13 eight total liquor-licensed drugstore licenses.14 (C) On or after January 1, 2027, and before January 1, 2032, up15 to twelve additional liquor-licensed drugstore licenses, for a maximum of16 thirteen total liquor-licensed drugstore licenses;17 (D) On or after January 1, 2032, and before January 1, 2037, up18 to nineteen additional liquor-licensed drugstore licenses, for a maximum19 of twenty total liquor-licensed drugstore licenses; and20 (E) On or after January 1, 2037, an unlimited number of additional21 liquor-licensed drugstore licenses.22 (V) For a liquor-licensed drugstore that submitted an application23 for a new liquor-licensed drugstore license before October 1, 2016,24 additional liquor-licensed drugstore licenses as follows, but only if25 obtained in accordance with subsection (1)(b) of this section, AS26 SUBSECTION (1)(b) EXISTED PRIOR TO THE EFFECTIVE DATE OF THIS27 HB22-1417 -20- SUBSECTION (4)(b)(V), AS AMENDED:1 (A) On or after January 1, 2019, and before January 1, 2022, four2 additional liquor-licensed drugstore licenses, for a maximum of five total3 liquor-licensed drugstore licenses; AND4 (B) On or after January 1, 2022, and before January 1, 2027, up 5 to seven additional liquor-licensed drugstore licenses, for a maximum of6 eight total liquor-licensed drugstore licenses.7 (C) On or after January 1, 2027, and before January 1, 2032, up8 to twelve additional liquor-licensed drugstore licenses, for a maximum of9 thirteen total liquor-licensed drugstore licenses;10 (D) On or after January 1, 2032, and before January 1, 2037, up11 to nineteen additional liquor-licensed drugstore licenses, for a maximum12 of twenty total liquor-licensed drugstore licenses; and13 (E) On or after January 1, 2037, an unlimited number of additional14 liquor-licensed drugstore licenses.15 (8) (a) E XCEPT AS PROVIDED IN SUBSECTION (8)(b) OF THIS16 SECTION, EFFECTIVE JANUARY 1, 2026, EACH LIQUOR-LICENSED17 DRUGSTORE LICENSE ISSUED UNDER THIS SECTION AUTOMATICALLY18 CONVERTS TO A BEER-AND-WINE-LICENSED GROCERY STORE LICENSE19 UNDER SECTION 44-3-410.5, AND, UPON CONVERSION, THE LICENSEE IS20 PERMITTED TO SELL MALT AND VINOUS LIQUORS ONLY AND IS SUBJECT TO21 THE REQUIREMENTS OF THE LICENSE AS SPECIFIED IN SECTION 44-3-410.5.22 (b) A LIQUOR-LICENSED DRUGSTORE INITIALLY LICENSED BEFORE23 J ANUARY 1, 2022, MAY CONTINUE TO OPERATE AS A LIQUOR -LICENSED24 DRUGSTORE IF THE LICENSEE NOTIFIES THE STATE LICENSING AUTHORITY25 BY APRIL 1, 2026, IN THE FORM AND MANNER DETERMINED BY THE STATE26 LICENSING AUTHORITY, THAT THE LICENSEE WILL CONTINUE OPERATING27 HB22-1417 -21- A LIQUOR-LICENSED DRUGSTORE. A LIQUOR-LICENSED DRUGSTORE THAT1 DOES NOT CONVERT TO A BEER -AND-WINE-LICENSED GROCERY STORE2 LICENSED PURSUANT TO SUBSECTION (8)(a) OF THIS SECTION MAY3 CONTINUE TO OPERATE UNDER A LIQUOR -LICENSED DRUGSTORE LICENSE,4 SUBJECT TO THE REQUIREMENTS OF THIS SECTION AND ALL OTHER5 APPLICABLE REQUIREMENTS OF THIS ARTICLE 3.6 SECTION 4. In Colorado Revised Statutes, add 44-3-410.5 as7 follows:8 44-3-410.5. Beer-and-wine-licensed grocery store license -9 multiple licenses permitted - requirements - delivery - rules - repeal.10 (1) (a) O N AND AFTER JANUARY 1, 2026, A BEER-AND-WINE-LICENSED11 GROCERY STORE LICENSE SHALL BE ISSUED TO PERSONS SELLING MALT12 AND VINOUS LIQUORS IN SEALED CONTAINERS NOT TO BE CONSUMED AT13 THE PLACE WHERE SOLD.14 (b) T HE STATE AND LOCAL LICENSING AUTHORITIES SHALL NOT15 ISSUE A NEW BEER-AND-WINE-LICENSED GROCERY STORE LICENSE IF THE16 PREMISES FOR WHICH A BEER -AND-WINE-LICENSED GROCERY STORE17 LICENSE IS SOUGHT IS LOCATED WITHIN ONE THOUSAND FIVE HUNDRED18 FEET OF A RETAIL LIQUOR STORE LICENSED UNDER SECTION 44-3-409.19 (2) N OTHING IN SUBSECTION (1) OF THIS SECTION PROHIBITS:20 (a) T HE RENEWAL OR TRANSFER OF OWNERSHIP OF A21 BEER-AND-WINE-LICENSED GROCERY STORE LICENSE INITIALLY LICENSED22 AS A LIQUOR-LICENSED DRUGSTORE; OR23 (b) A BEER-AND-WINE-LICENSED GROCERY STORE FROM ALLOWING24 TASTINGS ON THE LICENSED PREMISES IF THE APPLICABLE LOCAL25 LICENSING AUTHORITY HAS AUTHORIZED THE BEER -AND-WINE-LICENSED26 GROCERY STORE TO CONDUCT TASTINGS ON ITS LICENSED PREMISES IN27 HB22-1417 -22- ACCORDANCE WITH SECTION 44-3-301 (10).1 (3) I N ADDITION TO ANY OTHER REQUIREMENTS FOR LICENSURE2 UNDER THIS SECTION OR THIS ARTICLE 3, A PERSON APPLYING FOR A NEW3 OR TO RENEW A BEER-AND-WINE-LICENSED GROCERY STORE LICENSE IN4 ACCORDANCE WITH SUBSECTION (1) OF THIS SECTION MUST:5 (a) P ROVIDE EVIDENCE TO THE STATE AND LOCAL LICENSING6 AUTHORITIES THAT AT LEAST TWENTY PERCENT OF THE LICENSEE 'S GROSS7 ANNUAL INCOME DERIVED FROM TOTAL SALES DURING THE PRIOR TWELVE8 MONTHS AT THE LICENSED PREMISES FOR WHICH A NEW OR RENEWAL9 LICENSE IS SOUGHT IS FROM THE SALE OF FOOD ITEMS, AS DEFINED BY THE10 STATE LICENSING AUTHORITY BY RULE ; AND11 (b) M AKE AND KEEP ITS PREMISES OPEN TO THE PUBLIC.12 (4) (a) A PERSON LICENSED TO SELL MALT AND VINOUS LIQUORS AS13 PROVIDED IN THIS SECTION SHALL:14 (I) P URCHASE MALT AND VI NOUS LIQUORS ONLY FROM A15 WHOLESALER LICENSED UNDER THIS ARTICLE 3;16 (II) (A) N OT SELL MALT OR VINOUS LIQUORS TO CONSUMERS AT A17 PRICE THAT IS BELOW THE BEER-AND-WINE-LICENSED GROCERY STORE'S18 COST, AS LISTED ON THE INVOICE, TO PURCHASE THE MALT OR VINOUS19 LIQUORS, UNLESS THE SALE IS OF DISCONTINUED OR CLOSE-OUT MALT OR20 VINOUS LIQUORS.21 (B) T HIS SUBSECTION (4)(a)(II) DOES NOT PROHIBIT A22 BEER-AND-WINE-LICENSED GROCERY STORE FROM OPERATING A BONA23 FIDE LOYALTY OR REWARDS PROGRAM FOR MALT OR VINOUS LIQUORS SO24 LONG AS THE PRICE FOR THE PRODUCT IS NOT BELOW THE25 BEER-AND-WINE-LICENSED GROCERY STORE'S COSTS AS LISTED ON THE26 INVOICE. THE STATE LICENSING AUTHORITY MAY ADOPT RULES TO27 HB22-1417 -23- IMPLEMENT THIS SUBSECTION (4)(a)(II).1 (III) N OT ALLOW CONSUMERS TO PURCHASE MALT OR VINOUS2 LIQUORS AT A SELF-CHECKOUT OR OTHER MECHANISM THAT ALLOWS THE3 CONSUMER TO COMPLETE THE ALCOHOL BEVERAGE PURCHASE WITHOUT4 ASSISTANCE FROM AND COMPLETION OF THE ENTIRE TRANSACTION BY AN5 EMPLOYEE OF THE BEER-AND-WINE-LICENSED GROCERY STORE;6 (IV) R EQUIRE, IN ACCORDANCE WITH SECTION 44-3-901 (11),7 CONSUMERS ATTEMPTING TO PURCHASE MALT OR VINOUS LIQUORS TO8 PRESENT A VALID IDENTIFICATION , AS DETERMINED BY THE STATE9 LICENSING AUTHORITY BY RULE; AND10 (V) N OT SELL CLOTHING OR ACCESSORIES IMPRINTED WITH11 ADVERTISING, LOGOS, SLOGANS, TRADEMARKS, OR MESSAGES RELATED TO12 ALCOHOL BEVERAGES.13 (b) A PERSON LICENSED UNDER THIS SECTION SHALL NOT14 PURCHASE MALT OR VINOUS LIQUORS FROM A WHOLESALER ON CREDIT15 AND SHALL EFFECT PAYMENT UPON DELIVERY OF THE ALCOHOL16 BEVERAGES.17 (5) (a) O N AND AFTER JANUARY 1, 2026, A18 BEER-AND-WINE-LICENSED GROCERY STORE LICENSEE THAT COMPLIES19 WITH THIS SUBSECTION (5) AND RULES PROMULGATED PURSUANT TO THIS20 SUBSECTION (5) MAY DELIVER MALT AND VINOUS LIQUORS TO A PERSON21 OF LEGAL AGE IF:22 (I) T HE LICENSEE OR A PERSON AUTHORIZED BY THE LICENSEE TO23 MAKE DELIVERIES FOR THE LICENSEE HAS OBTAINED A PERMIT FROM THE24 STATE LICENSING AUTHORITY;25 (II) T HE PERSON RECEIVING THE DELIVERY OF MALT OR VINOUS26 LIQUORS IS LOCATED AT A PLACE THAT IS NOT LICENSED PURSUANT TO27 HB22-1417 -24- THIS SECTION;1 (III) T HE DELIVERY IS MADE BY A PERSON WHO IS AT LEAST2 TWENTY-ONE YEARS OF AGE AND WHO IS AUTHORIZED BY THE LICENSEE3 TO MAKE THE DELIVERY;4 (IV) T HE PERSON MAKING THE DELIVERY VERIFIES , IN5 ACCORDANCE WITH SECTION 44-3-901 (11), THAT THE PERSON RECEIVING6 THE DELIVERY OF MALT OR VINOUS LIQUORS IS AT LEAST TWENTY -ONE7 YEARS OF AGE; AND8 (V) T HE BEER-AND-WINE-LICENSED GROCERY STORE DERIVES NO9 MORE THAN FIFTY PERCENT OF ITS GROSS ANNUAL REVENUES FROM TOTAL10 SALES OF MALT AND VI NOUS LIQUORS FROM THE SALE OF MALT AND11 VINOUS LIQUORS THAT THE BEER -AND-WINE-LICENSED GROCERY STORE12 DELIVERS.13 (b) (I) T HE STATE LICENSING AUTHORITY SHALL PROMULGATE14 RULES AS NECESSARY FOR THE PROPER DELIVERY OF MALT AND VINOUS15 LIQUORS AND IS AUTHORIZED TO ISSUE A PERMIT TO ANY PERSON WHO IS16 LICENSED UNDER THIS SECTION TO SELL AT RETAIL AND DELIVER THE MALT17 AND VINOUS LIQUORS PURSUANT TO THIS SUBSECTION (5) AND TO ANY18 OTHER PERSON WHO INTENDS TO DELIVER MALT AND VINOUS LIQUORS ON19 BEHALF OF THE LICENSEE. A PERMIT ISSUED UNDER THIS SUBSECTION (5)20 IS SUBJECT TO THE SAME SUSPENSION AND REVOCATION PROVISIONS AS21 ARE SET FORTH IN SECTION 44-3-601 FOR OTHER LICENSES GRANTED22 PURSUANT TO THIS ARTICLE 3.23 (II) B Y JANUARY 1, 2026, THE STATE LICENSING AUTHORITY, BY24 RULE, SHALL ESTABLISH THE REQUIREMENTS FOR OBTAINING A PERMIT TO25 DELIVER ALCOHOL BEVERAGES PURSUANT TO THIS SUBSECTION (5)(b).26 S UCH REQUIREMENTS MUST INCLUDE AN ANNUAL FINGERPRINT -BASED27 HB22-1417 -25- CRIMINAL HISTORY RECORD CHECK , CERTIFICATION AS A RESPONSIBLE1 ALCOHOL BEVERAGE VENDOR IN ACCORDANCE WITH PART 10 OF THIS2 ARTICLE 3, PERMIT FEES, AND ANY OTHER REQUIREMENTS THE STATE3 LICENSING AUTHORITY FINDS APPROPRIATE .4 (6) (a) E XCEPT AS PROVIDED IN SUBSECTION (6)(b) OF THIS5 SECTION, IT IS UNLAWFUL FOR ANY OWNER, PART OWNER, SHAREHOLDER,6 OR PERSON INTERESTED DIRECTLY OR INDIRECTLY IN A7 BEER-AND-WINE-LICENSED GROCERY STORE TO CONDUCT , OWN EITHER IN8 WHOLE OR IN PART, OR BE DIRECTLY OR INDIRECTLY INTERESTED IN ANY9 OTHER BUSINESS LICENSED PURSUANT TO THIS ARTICLE 3.10 (b) A N OWNER, PART OWNER, SHAREHOLDER, OR PERSON11 INTERESTED DIRECTLY OR INDIRECTLY IN A BEER -AND-WINE-LICENSED12 GROCERY STORE MAY HAVE AN INTEREST IN :13 (I) A N ARTS LICENSE GRANTED UNDER THIS ARTICLE 3;14 (II) A N AIRLINE PUBLIC TRANSPORTATION SYSTEM LICENSE15 GRANTED UNDER THIS ARTICLE 3;16 (III) A FINANCIAL INSTITUTION REFERRED TO IN SECTION 44-3-30817 (4);18 (IV) A DDITIONAL BEER-AND-WINE-LICENSED GROCERY STORE19 LICENSES AS FOLLOWS:20 (A) O N OR AFTER JANUARY 1, 2026, AND BEFORE JANUARY 1,21 2027, A MAXIMUM OF EIGHT TOTAL BEER-AND-WINE-LICENSED GROCERY22 STORE LICENSES;23 (B) O N OR AFTER JANUARY 1, 2027, AND BEFORE JANUARY 1,24 2032, A MAXIMUM OF THIRTEEN TOTAL BEER -AND-WINE-LICENSED25 GROCERY STORE LICENSES;26 (C) O N OR AFTER JANUARY 1, 2032, AND BEFORE JANUARY 1,27 HB22-1417 -26- 2037, A MAXIMUM OF TWENTY TOTAL BEER -AND-WINE-LICENSED1 GROCERY STORE LICENSES; AND2 (D) O N OR AFTER JANUARY 1, 2037, AN UNLIMITED NUMBER OF3 BEER-AND-WINE-LICENSED GROCERY STORE LICENSES .4 (7) (a) A BEER-AND-WINE-LICENSED GROCERY STORE LICENSED5 UNDER THIS SECTION SHALL NOT STORE MALT AND VINOUS LIQUORS OFF6 THE LICENSED PREMISES.7 (b) A LICENSED WHOLESALER SHALL MAKE ALL DELIVERIES OF8 MALT AND VINOUS LIQUORS TO A BEER -AND-WINE-LICENSED GROCERY9 STORE:10 (I) T HROUGH A COMMON CARRIER , THROUGH A CONTRACT11 CARRIER, OR ON VEHICLES OWNED BY THE WHOLESALER ; AND12 (II) O NLY TO THE BUSINESS ADDRESS OF THE13 BEER-AND-WINE-LICENSED GROCERY STORE.14 (8) (a) A BEER-AND-WINE-LICENSED GROCERY STORE LICENSED15 UNDER THIS SECTION SHALL HAVE AT LEAST ONE MA NAGER PERMITTED16 UNDER SECTION 44-3-427 WHO WORKS ON THE LICENSED PREMISES . THE17 BEER-AND-WINE-LICENSED GROCERY STORE SHALL DESIGNATE AT LEAST18 ONE PERMITTED MANAGER ON THE LICENSED PREMISES TO CONDUCT THE19 BEER-AND-WINE-LICENSED GROCERY STORE 'S PURCHASES OF ALCOHOL20 BEVERAGES FROM A LICENSED WHOLESALER . A LICENSED WHOLESALER21 SHALL TAKE ORDERS FOR ALCOHOL BEVERAGES ONLY FROM A PERMITTED22 MANAGER DESIGNATED BY THE BEER -AND-WINE-LICENSED GROCERY23 STORE.24 (b) A BEER-AND-WINE-LICENSED GROCERY STORE MUST OBTAIN25 AND MAINTAIN A CERTIFICATION AS A RESPONSIBLE ALCOHOL BEVERAGE26 VENDOR IN ACCORDANCE WITH PART 10 OF THIS ARTICLE 3.27 HB22-1417 -27- (c) AN EMPLOYEE OF A BEER-AND-WINE-LICENSED GROCERY STORE1 WHO IS UNDER TWENTY-ONE YEARS OF AGE SHALL NOT DELIVER MALT OR2 VINOUS LIQUORS OFFERED FOR SALE ON , OR SOLD AND REMOVED FROM ,3 THE LICENSED PREMISES.4 (9) A PERSON LICENSED UNDER THIS SECTION THAT OBTAINS5 ADDITIONAL BEER-AND-WINE-LICENSED GROCERY STORE LICENSES IN6 ACCORDANCE WITH SUBSECTION (6)(b)(IV) OF THIS SECTION MAY7 OPERATE UNDER A SINGLE OR CONSOLIDATED CORPORATE ENTITY BUT8 SHALL NOT COMMINGLE PURCHASES OF OR CREDIT EXTENSIONS FOR9 PURCHASES OF MALT OR VINOUS LIQUORS FROM A WHOLESALER LICENSED10 UNDER THIS ARTICLE 3 FOR MORE THAN ONE LICENSED PREMISES . A11 WHOLESALER LICENSED UNDER THIS ARTICLE 3 SHALL NOT BASE THE PRICE12 FOR THE MALT OR VINOUS LIQUORS IT SELLS TO A13 BEER-AND-WINE-LICENSED GROCERY STORE LICENSED UNDER THIS14 SECTION ON THE TOTAL VOLUME OF MALT OR VINOUS LIQUORS THAT THE15 LICENSEE PURCHASES FOR MULTIPLE LICENSED PREMISES .16 (10) (a) E FFECTIVE JANUARY 1, 2026, EXCEPT AS PROVIDED IN17 SECTION 44-3-410 (8)(b), EACH LIQUOR-LICENSED DRUGSTORE LICENSE18 INITIALLY ISSUED UNDER SECTION 44-3-410 BEFORE JANUARY 1, 2022,19 AUTOMATICALLY CONVERTS TO A BEER -AND-WINE-LICENSED GROCERY20 STORE LICENSE.21 (b) (I) N OT LATER THAN APRIL 1, 2026, A LICENSEE LICENSED AS22 A LIQUOR-LICENSED DRUGSTORE ON DECEMBER 31, 2025, WHICH LICENSE23 CONVERTED TO A BEER-AND-WINE-LICENSED GROCERY STORE LICENSE ON24 J ANUARY 1, 2026, MAY TRANSFER SPIRITUOUS LIQUORS IN THE LICENSEE'S25 POSSESSION TO A LICENSEE AUTHORIZED BY THIS ARTICLE 3 TO SELL26 SPIRITUOUS LIQUORS AT RETAIL FOR CONSUMPTION OFF THE PREMISES .27 HB22-1417 -28- THIS SUBSECTION (10)(b) DOES NOT AUTHORIZE A1 BEER-AND-WINE-LICENSED GROCERY STORE TO SELL SPIRITUOUS LIQUORS .2 (II) F ROM JANUARY 1, 2026, THROUGH APRIL 1, 2026, IT IS NOT A3 VIOLATION OF SECTION 44-3-901 FOR A BEER-AND-WINE-LICENSED4 GROCERY STORE TO HAVE SPIRITUOUS LIQUORS IN ITS POSSESSION OR TO5 TRANSFER SPIRITUOUS LIQUORS AS PROVIDED IN THIS SUBSECTION (10)(b).6 (III) T HIS SUBSECTION (10)(b) IS REPEALED, EFFECTIVE OCTOBER7 1, 2026.8 SECTION 5. In Colorado Revised Statutes, 44-3-103, amend9 (56); and add (19.5) as follows:10 44-3-103. Definitions. As used in this article 3 and article 4 of11 this title 44, unless the context otherwise requires:12 (19.5) "G ROCERY STORE" MEANS AN ESTABLISHMENT THAT13 GENERATES AT LEAST TWENTY PERCENT OF GROSS ANNUAL INCOME FROM14 THE SALE OF FOOD ITEMS.15 (56) "Tastings" means the sampling, BY ADULT PATRONS OF A16 LICENSEE PURSUANT TO SECTION 44-3-301 (10), of malt, vinous, or17 spiritous liquors that may occur on the premises of a retail liquor store18 licensee or liquor-licensed drugstore licensee by adult patrons of the19 licensee pursuant to the provisions of section 44-3-301 (10) OR THE20 SAMPLING OF MALT AND VINOUS LIQUORS THAT MAY OCCUR ON THE21 PREMISES OF A BEER-AND-WINE-LICENSED GROCERY STORE LICENSEE .22 SECTION 6. In Colorado Revised Statutes, 44-3-104, amend23 (2)(c) as follows:24 44-3-104. Wine shipments - permits. (2) A winery direct25 shipper's permit may be issued to only a person who applies for such26 permit to the state licensing authority and who:27 HB22-1417 -29- (c) Except as provided in sections 44-3-402 (1) and 44-3-407 (3),1 does not directly or indirectly have any financial interest in a Colorado2 wholesaler or retailer licensed pursuant to section 44-3-407, 44-3-409, or3 44-3-410, OR 44-3-410.5.4 SECTION 7. In Colorado Revised Statutes, 44-3-107, amend5 (2)(c) as follows:6 44-3-107. Permitted acts - auctions at special events -7 definition. (2) (c) The retail value of alcohol beverages donated to an8 organization pursuant to this section by a retailer licensed under section9 44-3-409, 44-3-410, 44-3-410.5, or 44-4-104 (1)(c) to sell alcohol10 beverages at retail for consumption off the licensed premises does not11 count against the annual limit on purchases from those retailers specified12 in section 44-3-411 (2), 44-3-413 (7)(b), 44-3-414 (2), 44-3-416 (2),13 44-3-417 (3), 44-3-418 (2), 44-3-419 (4), 44-3-420 (2), 44-3-422 (3),14 44-3-426 (4)(b), or 44-3-428 (2).15 SECTION 8. In Colorado Revised Statutes, 44-3-301, amend16 (9)(a)(I)(C), (10)(b), (10)(c)(I)(A), (10)(c)(XII), (10)(d), (10)(e), and17 (12)(a) as follows:18 44-3-301. Licensing in general. (9) (a) (I) (C) The state and local19 licensing authorities shall not grant permission under this subsection20 (9)(a)(I) to a retail liquor store licensed under section 44-3-409 to move21 its permanent location if the new location is Within one thousand five 22 hundred WITHIN THREE THOUSAND feet of another retail liquor store23 licensed under section 44-3-409. for a premises located in a municipality24 with a population of ten thousand or fewer, within three thousand feet of25 another retail liquor store licensed under section 44-3-409; or, for a26 premises located in a municipality with a population of ten thousand or27 HB22-1417 -30- fewer that is contiguous to the city and county of Denver, within one1 thousand five hundred feet of another retail liquor store licensed under2 section 44-3-409.3 (10) (b) A retail liquor store, or liquor-licensed drugstore, OR4 BEER-AND-WINE-LICENSED GROCERY STORE licensee who THAT wishes to5 conduct tastings may submit an application or application renewal to the6 local licensing authority. The local licensing authority may reject the7 application if the applicant fails to establish that he or she THE APPLICANT8 is able to conduct tastings without violating the provisions of this section9 or creating a public safety risk to the neighborhood. A local licensing10 authority may establish its own application procedure and may charge a11 reasonable application fee.12 (c) Tastings are subject to the following limitations:13 (I) Tastings shall be conducted only:14 (A) By a person who: Has completed a server training program15 that meets the standards established by the liquor enforcement division in16 the department and is a retail liquor store, or liquor-licensed drugstore, or17 BEER-AND-WINE-LICENSED GROCERY STORE licensee, an employee of a18 retail liquor store, or liquor-licensed drugstore, OR19 BEER-AND-WINE-LICENSED GROCERY STORE licensee, or a representative,20 employee, or agent of the licensed wholesaler, brew pub, distillery pub,21 manufacturer, limited winery, importer, or vintner's restaurant promoting22 the alcohol beverages for the tasting; and23 (XII) No manufacturer of spirituous or vinous liquors shall induce24 a licensee through free goods or financial or in-kind assistance to favor25 the manufacturer's products being sampled at a tasting. The retail liquor26 store, or liquor-licensed drugstore, OR BEER-AND-WINE-LICENSED27 HB22-1417 -31- GROCERY STORE licensee bears the financial and all other responsibility1 for a tasting conducted on its licensed premises.2 (d) A violation of a limitation specified in this subsection (10) by3 a retail liquor store, or liquor-licensed drugstore, OR4 BEER-AND-WINE-LICENSED GROCERY STORE licensee, whether by the5 licensee's employees, agents, or otherwise or by a representative,6 employee, or agent of the licensed wholesaler, brew pub, distillery pub,7 manufacturer, limited winery, importer, or vintner's restaurant that8 promoted the alcohol beverages for the tasting, is the responsibility of,9 and section 44-3-801 applies to, the retail liquor store, or liquor-licensed10 drugstore, OR BEER-AND-WINE-LICENSED GROCERY STORE licensee that11 conducted the tasting.12 (e) A retail liquor store, or liquor-licensed drugstore, OR13 BEER-AND-WINE-LICENSED GROCERY STORE licensee conducting a tasting14 shall be IS subject to the same revocation, suspension, and enforcement15 provisions as otherwise apply to the licensee.16 (12) (a) Notwithstanding any other provision of this article 3, on17 and after July 1, 2016, the state and local licensing authorities shall not18 issue a new license under this article 3 authorizing the sale at retail of19 malt, vinous, or spirituous liquors in sealed containers for consumption20 off the licensed premises if the premises for which the retail license is21 sought is located NOT IN COMPLIANCE WITH SECTION 44-3-409 (1)(a) OR22 44-3-410.5 (1)(b), AS APPLICABLE.23 (I) Within one thousand five hundred feet of another licensed 24 premises licensed to sell malt, vinous, or spirituous liquors at retail for25 off-premises consumption;26 (II) For a premises located in a municipality with a population of27 HB22-1417 -32- ten thousand or fewer, within three thousand feet of another licensed1 premises licensed to sell malt, vinous, or spirituous liquors at retail for2 off-premises consumption; or3 (III) For a premises located in a municipality with a population of4 ten thousand or fewer that is contiguous to the city and county of Denver,5 within one thousand five hundred feet of another licensed premises6 licensed to sell malt, vinous, or spirituous liquors at retail for off-premises7 consumption.8 SECTION 9. In Colorado Revised Statutes, 44-3-309, amend9 (1)(b); and add (1)(o) as follows:10 44-3-309. Local licensing authority - applications - optional11 premises licenses. (1) A local licensing authority may issue only the12 following alcohol beverage licenses upon payment of the fee specified in13 section 44-3-505:14 (b) Liquor-licensed drugstore license; EXCEPT THAT, ON AND15 AFTER THE EFFECTIVE DATE OF THIS SUBSECTION (1)(b), AS AMENDED, A16 LOCAL LICENSING AUTHORITY SHALL NOT ISSUE A NEW LIQUOR -LICENSED17 DRUGSTORE LICENSE;18 (o) B EER-AND-WINE-LICENSED GROCERY STORE LICENSE .19 SECTION 10. In Colorado Revised Statutes, 44-3-312, amend20 (2)(a) as follows:21 44-3-312. Results of investigation - decision of authorities.22 (2) (a) Before entering any decision approving or denying the AN23 application FOR LICENSURE, the local licensing authority shall consider,24 except where this article 3 specifically provides otherwise, the facts and25 evidence adduced as a result of its investigation, as well as any other26 facts; the reasonable requirements of the neighborhood for the type of27 HB22-1417 -33- license for which application has been made; the desires of the adult1 inhabitants; the number, type, and availability of alcohol beverage outlets2 located in or near the neighborhood under consideration; and any other3 pertinent matters affecting the qualifications of the applicant for the4 conduct of the type of business proposed; except that the reasonable5 requirements of the neighborhood shall not be considered in the issuance6 of a club liquor license. For the merger and conversion of retail liquor7 store licenses to a single liquor-licensed drugstore license in accordance8 with section 44-3-410 (1)(b), the local licensing authority shall consider9 the reasonable requirements of the neighborhood and the desires of the10 adult inhabitants of the neighborhood.11 SECTION 11. In Colorado Revised Statutes, 44-3-401, amend12 (1)(i); and add (1)(y) as follows:13 44-3-401. Classes of licenses and permits - rules. (1) For the14 purpose of regulating the manufacture, sale, and distribution of alcohol15 beverages, the state licensing authority in its discretion, upon application16 in the prescribed form made to it, may issue and grant to the applicant a17 license or permit from any of the following classes, subject to the18 provisions and restrictions provided by this article 3:19 (i) Liquor-licensed drugstore license; EXCEPT THAT, ON AND20 AFTER THE EFFECTIVE DATE OF THIS SUBSECTION (1)(i), AS AMENDED, THE21 STATE LICENSING AUTHORITY SHALL NOT ISSUE A NEW LIQUOR -LICENSED22 DRUGSTORE LICENSE;23 (y) B EER-AND-WINE-LICENSED GROCERY STORE LICENSE .24 SECTION 12. In Colorado Revised Statutes, 44-3-425, amend25 (2)(a) as follows:26 44-3-425. Wine packaging permit - limitations - rules. (2) A27 HB22-1417 -34- licensed winery or limited winery that obtains a wine packaging permit1 pursuant to this section shall not sell or distribute tax-paid wine it2 packages:3 (a) To a person licensed to sell alcohol beverages at retail, for4 consumption on or off the licensed premises, under section 44-3-409,5 44-3-410, 44-3-410.5, 44-3-411, 44-3-412, 44-3-413, 44-3-414, 44-3-415,6 44-3-416, 44-3-417, 44-3-418, 44-3-419, 44-3-420, 44-3-421, 44-3-422,7 44-3-424, 44-3-426, or 44-3-428; or8 SECTION 13. In Colorado Revised Statutes, 44-3-427, amend9 (1), (2) introductory portion, and (4) as follows:10 44-3-427. Liquor-licensed drugstore manager's permit.11 (1) The state licensing authority may issue a manager's permit to an12 individual who:13 (a) Is employed by a liquor-licensed drugstore licensed under14 section 44-3-410 OR A BEER-AND-WINE-LICENSED GROCERY STORE15 LICENSED UNDER SECTION 44-3-410.5; and who 16 (b) Will be in actual control of:17 (I) The A liquor-licensed drugstore's alcohol beverage operations;18 OR19 (II) A BEER-AND-WINE-LICENSED GROCERY STORE 'S MALT AND20 VINOUS LIQUORS OPERATIONS.21 (2) An individual seeking a manager's permit shall apply to the22 state licensing authority in the form and manner required by the state23 licensing authority. To obtain a manager's permit, the individual must24 demonstrate that he or she THE INDIVIDUAL:25 (4) In recognition of the state's flourishing local breweries,26 wineries, and distilleries that locally produce high-quality malt, vinous,27 HB22-1417 -35- and spirituous liquors, managers of liquor-licensed drugstores AND1 BEER-AND-WINE-LICENSED GROCERY STORES are encouraged to purchase2 and promote locally produced alcohol beverage products in their3 liquor-licensed drugstores AND BEER-AND-WINE-LICENSED GROCERY4 STORES.5 SECTION 14. In Colorado Revised Statutes, 44-3-501, add6 (1)(x) as follows:7 44-3-501. State fees - rules - one-time fee waiver - repeal.8 (1) The applicant shall pay the following license and permit fees to the9 department annually in advance:10 (x) F OR EACH BEER-AND-WINE-LICENSED GROCERY STORE11 LICENSE, ONE HUNDRED DOLLARS.12 SECTION 15. In Colorado Revised Statutes, 44-3-505, add (1)(r)13 as follows:14 44-3-505. Local license fees. (1) The applicant shall pay the15 following license fees to the treasurer of the municipality, city and16 county, or county where the licensed premises is located annually in17 advance:18 (r) (I) F OR EACH BEER-AND-WINE-LICENSED GROCERY STORE19 LICENSE FOR PREMISES LOCATED WITHIN ANY MUNICIPALITY OR CITY AND20 COUNTY, ONE HUNDRED FIFTY DOLLARS;21 (II) F OR EACH BEER-AND-WINE-LICENSED GROCERY STORE LICENSE22 FOR PREMISES LOCATED OUTSIDE THE MUNICIPAL LIMITS OF ANY23 MUNICIPALITY OR CITY AND COUNTY , TWO HUNDRED FIFTY DOLLARS.24 SECTION 16. In Colorado Revised Statutes, 44-3-901, amend25 (1)(g), (1)(i)(III), (6)(i)(II), (6)(k), (6)(p)(I)(B), (6)(p)(III), (8)(b), and26 (11)(c) as follows:27 HB22-1417 -36- 44-3-901. Unlawful acts - exceptions - definitions. (1) Except1 as provided in section 18-13-122, it is unlawful for any person:2 (g) To sell at retail any malt, vinous, or spirituous liquors in sealed3 containers without holding a retail liquor store or liquor-licensed4 drugstore LICENSE OR TO SELL AT RETAIL ANY MALT OR VINOUS LIQUORS5 IN SEALED CONTAINERS WITHOUT HOLDING A BEER -AND-WINE-LICENSED6 GROCERY STORE license, except as permitted by section 44-3-107 (2) or7 44-3-301 (6)(b) or any other provision of this article 3, or to sell at retail8 any fermented malt beverages in sealed containers without holding a9 fermented malt beverage retailer's license under sections 44-4-104 (1)(c)10 and 44-4-107 (1)(a);11 (i) (III) Notwithstanding subsection (1)(i)(I) of this section, it shall12 not be unlawful for adult patrons of a retail liquor store or liquor-licensed13 drugstore licensee to consume malt, vinous, or spirituous liquors, OR FOR14 ADULT PATRONS OF A BEER -AND-WINE-LICENSED GROCERY STORE15 LICENSEE TO CONSUME MALT OR VINOUS LIQUORS , on the licensed16 premises when the consumption is conducted within the limitations of the17 licensee's license and is part of a tasting if authorization for the tasting18 has been granted pursuant to section 44-3-301.19 (6) It is unlawful for any person licensed to sell at retail pursuant20 to this article 3 or article 4 of this title 44:21 (i) (II) Notwithstanding subsection (6)(i)(I) of this section, it shall22 not be unlawful for a retail liquor store, or liquor-licensed drugstore, OR23 BEER-AND-WINE-LICENSED GROCERY STORE licensee to allow tastings to24 be conducted on his or her THE licensed premises if authorization for the25 tastings has been granted pursuant to section 44-3-301.26 (k) (I) Except as provided in subsections (6)(k)(II), (6)(k)(III),27 HB22-1417 -37- 6)(k)(IV), and (6)(k)(V) of this section, to have on the licensed premises,1 if licensed as a retail liquor store, liquor-licensed drugstore,2 BEER-AND-WINE-LICENSED GROCERY STORE, or fermented malt beverage3 retailer, any container that shows evidence of having once been opened4 or that contains a volume of liquor less than that specified on the label of5 the container;6 (II) (A) A person holding a retail liquor store or liquor-licensed7 drugstore license under this article 3 may have upon the licensed premises8 malt, vinous, or spirituous liquors, AND A PERSON HOLDING A9 BEER-AND-WINE-LICENSED GROCERY STORE LICENSE UNDER THIS ARTICLE10 3 MAY HAVE UPON THE LICENSED PREMISES MALT OR VINOUS LIQUORS , in11 open containers when the open containers were brought on the licensed12 premises by and remain solely in the possession of the sales personnel of13 a person licensed to sell at wholesale pursuant to this article 3 for the14 purpose of sampling malt, vinous, or spirituous liquors by the retail liquor15 store or liquor-licensed drugstore LICENSEE ONLY OR FOR THE PURPOSE OF16 SAMPLING MALT OR VINOUS LIQUORS BY THE BEER -AND-WINE-LICENSED17 GROCERY STORE licensee only.18 (B) A person holding a fermented malt beverage retailer's license19 under section 44-4-107 (1)(a) may have upon the licensed premises20 fermented malt beverages in open containers when the open containers21 were brought onto the licensed premises by and remain solely in the22 possession of the sales personnel of a person licensed to sell at wholesale23 pursuant to article 4 of this title 44 for the purpose of sampling fermented24 malt beverages by the fermented malt beverage retailer licensee only.25 (III) Nothing in this subsection (6)(k) applies to any26 liquor-licensed drugstore where the contents, or a portion of the contents,27 HB22-1417 -38- have been used in compounding prescriptions.1 (IV) It is not unlawful for a retail liquor store, or liquor-licensed2 drugstore, OR BEER-AND-WINE-LICENSED GROCERY STORE licensee to3 allow tastings to be conducted on the licensed premises if authorization4 for the tastings has been granted pursuant to section 44-3-301.5 (V) A person holding a retail liquor store, or liquor-licensed6 drugstore, OR BEER-AND-WINE-LICENSED GROCERY STORE license under7 this article 3 or a fermented malt beverage retailer's license under section8 44-4-107 (1)(a) may have upon the licensed premises an open container9 of an alcohol beverage product that the licensee discovers to be damaged10 or defective so long as the licensee marks the product as damaged or for11 return and stores the open container outside the sales area of the licensed12 premises until the licensee is able to return the product to the wholesaler13 from whom the product was purchased.14 (p) (I) (B) Except as provided in subsection (6)(p)(II) of this15 section, to employ a person who is at least eighteen years of age but under16 twenty-one years of age to sell or dispense malt, vinous, or spirituous17 liquors unless the employee is supervised by another person who is on the18 licensed premises and is at least twenty-one years of age; except that this19 subsection (6)(p)(I)(B) does not apply to a retail liquor store licensed20 under section 44-3-409, or a liquor-licensed drugstore licensed under21 section 44-3-410, OR A BEER-AND-WINE-LICENSED GROCERY STORE22 LICENSED UNDER SECTION 44-3-410.5;23 (III) If licensed as a retail liquor store under section 44-3-409, a24 liquor-licensed drugstore under section 44-3-410, A25 BEER-AND-WINE-LICENSED GROCERY STORE UNDER SECTION 44-3-410.5,26 or a fermented malt beverage retailer under section 44-4-107 (1)(a), to27 HB22-1417 -39- permit an employee who is under twenty-one years of age to deliver malt,1 vinous, or spirituous liquors or fermented malt beverages offered for sale2 on, or sold and removed from, the licensed premises of the retail liquor3 store, liquor-licensed drugstore, BEER-AND-WINE-LICENSED GROCERY4 STORE, or fermented malt beverage retailer.5 (8) (b) Notwithstanding subsection (8)(a) of this section, it shall 6 not be IS NOT unlawful for a retail liquor store, or liquor-licensed7 drugstore, OR BEER-AND-WINE-LICENSED GROCERY STORE licensee to8 allow tastings to be conducted on his or her THE licensed premises if9 authorization for the tastings has been granted pursuant to section10 44-3-301.11 (11) (c) As used in this subsection (11), "retail licensee" means a12 person licensed under section 44-3-409, 44-3-410, 44-3-410.5, 44-4-10413 (1)(c), or 44-4-107 (1)(a).14 SECTION 17. In Colorado Revised Statutes, 26-2-104, amend15 (2)(a)(II)(C) and (2)(h)(I)(B) as follows:16 26-2-104. Public assistance programs - electronic benefits17 transfer service - joint reports with department of revenue - signs -18 rules. (2) (a) (II) Only those businesses that offer products or services19 related to the purpose of the public assistance benefits are allowed to20 participate in the electronic benefits transfer service through the use of21 point-of-sale terminals. Clients shall not be allowed to access cash22 benefits through the electronic benefits transfer service from automated23 teller machines in this state located in:24 (C) Retail establishments licensed to sell malt, vinous, or25 spirituous liquors pursuant to part 3 of article 3 of title 44; except that the26 prohibition in this subsection (2)(a)(II)(C) does not apply to27 HB22-1417 -40- establishments licensed as liquor-licensed drugstores under section1 44-3-410 OR BEER-AND-WINE-LICENSED GROCERY STORES UNDER SECTION2 44-3-410.5;3 (h) (I) On or before January 1, 2016, the department of revenue4 shall adopt rules pursuant to the "State Administrative Procedure Act",5 article 4 of title 24, that relate to a client's use of automated teller6 machines at locations where the use is prohibited. The rules must apply7 to the following establishments:8 (B) Retail establishments licensed to sell malt, vinous, or9 spirituous liquors pursuant to part 3 of article 3 of title 44, excluding10 establishments licensed as liquor-licensed drugstores under section11 44-3-410 OR BEER-AND-WINE-LICENSED GROCERY STORES UNDER SECTION12 44-3-410.5;13 SECTION 18. Safety clause. The general assembly hereby finds,14 determines, and declares that this act is necessary for the immediate15 preservation of the public peace, health, or safety.16 HB22-1417 -41-