Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 24-1176.01 Yelana Love x2295 SENATE BILL 24-231 Senate Committees House Committees Finance A BILL FOR AN ACT C ONCERNING IMPLEMENTING CONSENSUS RECOMMENDATIONS OF THE101 LIQUOR ADVISORY GROUP CONVENED BY THE DEPARTMENT OF102 REVENUE TO CONDUCT A COMPREHENSIVE REVIEW OF103 C OLORADO'S LIQUOR LAWS.104 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 http://leg.colorado.gov .) In current law, both a lodging facility and an entertainment facility are licensed as a lodging and entertainment facility licensee. Sections 1, 3, 6, 8, 17, 24, 27, 28, 29, 30, 31, 33, and 34 of the bill convert the SENATE SPONSORSHIP Rodriguez and Gardner, HOUSE SPONSORSHIP Snyder and Frizell, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. licenses of lodging facilities to lodging facility licenses, convert the licenses of entertainment facilities to entertainment facility licenses, and make necessary conforming amendments. Sections 3, 9, and 30 allow a brewery, a limited winery, and a distillery to manufacture alcohol beverages at up to 2 noncontiguous locations and set an annual fee for such operations. Current law limits the amount of alcohol beverages certain retailers can purchase from retail liquor stores, liquor-licensed drugstores, and fermented malt beverage and wine retailers to $2,000 each year. Sections 15 through 23, 26, and 27 increase the cap to $7,000 and allow for an annual inflation adjustment of the cap. Section 2 requires the state licensing authority to study the feasibility of adopting an online application and renewal system. Section 3: ! Gives a local licensing authority the ability to delegate licensing authority to the state licensing authority when a retail business is located on state-owned property; ! Allows an off-premises retailer to conduct tastings; ! Allows tastings for all authorized retailers to begin at 10 a.m. instead of 11 a.m.; and ! Allows retail liquor stores to hold educational classes. Under current law, liquor licenses are valid for a one-year period. Sections 4 and 32 will allow certain qualifying licensees to apply for a 2-year license. Section 5 updates gendered language, changing "husband and wife" to "spouses or partners in a civil union". Section 7 removes the requirement that a local licensing authority schedule a public hearing on an application for a new retail liquor license. Section 9 allows a distiller that operates a sales room to purchase and use common alcohol modifiers to mix with its spirituous liquors to produce cocktails. Section 10 changes the notice requirement for a festival permittee to hold multiple festivals from 30 business days to 30 calendar days before each festival. Sections 11 and 12 allow wholesalers of vinous or spirituous liquors to obtain an importer's license. Section 12 also allows wholesalers to hold trade show events. Section 13 allows a retail liquor store going out of business to sell its inventory to another retail liquor store. Section 14 specifies that a liquor-licensed drugstore's use of an electronic funds transfer is not an extension of credit. Section 21 allows an arts licensee to place limited advertising of the availability of alcohol beverages for sale on the licensed premises while an artistic or cultural production or performance is taking place. Section 25 increases the time to process a retail establishment SB24-231 -2- permit from 15 to 30 days. Section 29 creates an alcohol beverage shipper license and permit for wine direct shipping deliveries. Section 29 establishes a catering license to allow a catering company to sell alcohol beverages at a location that is not otherwise licensed to sell or serve alcohol beverages. Section 30 allows the state licensing authority to charge an investigative fee to recover the cost of certain investigations. Section 33: ! Allows alcohol beverage sales on Christmas; and ! Prohibits the sale of controlled substances on premises licensed to sell alcohol beverages. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 44-3-103, amend2 (11.5)(j), (11.5)(k), (11.5)(l), (15)(c)(XI), (15)(c)(XII), (29), and (38)(b);3 and add (2.5), (8.5), (11.5)(m), (14.5), (15)(c)(XIII), (15.5), and (21.5) as4 follows:5 44-3-103. Definitions. As used in this article 3 and article 4 of6 this title 44, unless the context otherwise requires:7 (2.5) "A LCOHOL BEVERAGE SHIPPER LICENSEE " MEANS A PERSON8 THAT SHIPS TO CONSUMERS VINOUS LIQUORS THAT IT RECEIVED FROM A9 WINERY DIRECT SHIPPER'S PERMITTEE PURSUANT TO SECTION 44-3-104.10 (8.5) "C ATERING COMPANY" MEANS A PERSON, NOT INCLUDING11 PERSONS IN THE MOBILE FOOD SERVICES INDUSTRY OR FOOD SERVICE12 INDUSTRIES, THAT IS PRIMARILY ENGAGED IN PROVIDING EVENT -BASED13 FOOD AND ALCOHOL BEVERAGE SERVICES FOR EVENTS AT A VENUE THAT14 DOES NOT POSSESS A LIQUOR LICENSE OR PERMIT AND THAT HAS15 EQUIPMENT AND VEHICLES TO TRANSPORT MEALS , ALCOHOL BEVERAGES,16 AND SNACKS TO EVENTS OR TO PREPARE FOOD AT AN OFF -PREMISES SITE.17 (11.5) "Communal outdoor dining area" means an outdoor space18 that is used for food and alcohol beverage service by two or more19 SB24-231-3- licensees licensed under this article 3 or article 4 of this title 44 as a:1 (j) Lodging and Entertainment facility;2 (k) Optional premises; or3 (l) Fermented malt beverage AND WINE retailer licensed for4 consumption on the premises; OR5 (m) L ODGING FACILITY.6 (14.5) "E DUCATIONAL CLASS" MEANS A CLOSED EVENT ON THE7 PREMISES OF A RETAIL LIQUOR STORE, DURING WHICH CONSUMERS WHO8 ARE TWENTY-ONE YEARS OF AGE OR OLDER ARE TAUGHT ABOUT ALCOHOL9 BEVERAGES THAT ARE SOLD BY THE RETAIL LIQUOR STORE , INCLUDING,10 BUT NOT LIMITED TO, THE HISTORY OF THE ALCOHOL BEVERAGE , FOOD11 PAIRINGS, AND SERVING SUGGESTIONS.12 (15) "Entertainment district" means an area that:13 (c) Contains at least twenty thousand square feet of premises that,14 at the time the district is created, is licensed pursuant to this article 3 as15 a:16 (XI) Lodging and Entertainment facility licensee; or17 (XII) Optional premises; OR18 (XIII) L ODGING FACILITY LICENSEE.19 (15.5) "E NTERTAINMENT FACILITY" MEANS AN ESTABLISHMENT:20 (a) I N WHICH THE PRIMARY BUSINESS IS TO PROVIDE THE PUBLIC21 WITH SPORTS OR ENTERTAINMENT ACTIVITIES WITHIN ITS LICENSED22 PREMISES; AND23 (b) T HAT, INCIDENTAL TO ITS PRIMARY BUSINESS , SELLS AND24 SERVES ALCOHOL BEVERAGES AT RETAIL FOR CONSUMPTION ON THE25 LICENSED PREMISES AND HAS SANDWICHES AND LIGHT SNACKS AVAILABLE26 FOR CONSUMPTION ON THE LICENSED PREMISES .27 SB24-231 -4- (21.5) "INFLATION" MEAN THE ANNUAL PERCENTAGE CHANGE IN1 THE UNITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR2 STATISTICS CONSUMER PRICE INDEX , OR A SUCCESSOR INDEX , FOR3 D ENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID BY URBAN4 CONSUMERS.5 (29) "Lodging and entertainment facility" means an establishment:6 that:7 (a) Is either: IN WHICH THE PRIMARY BUSINESS IS TO PROVIDE THE8 PUBLIC WITH SLEEPING ROOMS AND MEETING FACILITIES ; AND9 (I) A lodging facility, the primary business of which is to provide10 the public with sleeping rooms and meeting facilities; or11 (II) An entertainment facility, the primary business of which is to12 provide the public with sports or entertainment activities within its13 licensed premises; and14 (b) Incidental to its primary business, THAT sells and serves15 alcohol beverages at retail for consumption on the LICENSED premises and16 has sandwiches and light snacks available for consumption on the17 LICENSED premises.18 (38) (b) Notwithstanding subsection (38)(a) of this section, for a19 winery, LIMITED WINERY, DISTILLERY, OR BREWERY authorized to20 manufacture vinous liquors ALCOHOL BEVERAGES pursuant to section21 44-3-402 or 44-3-403, the licensed premises may include up to two22 noncontiguous locations, both of which are used for manufacturing23 purposes, within a radius of ten miles.24 SECTION 2. In Colorado Revised Statutes, 44-3-202, add (4) as25 follows:26 44-3-202. Duties of state licensing authority - feasibility study27 SB24-231 -5- - rules - repeal. (4) (a) (I) B Y JANUARY 1, 2028, THE STATE LICENSING1 AUTHORITY SHALL STUDY THE FEASABILITY OF ADOPTING AN ONLINE2 PORTAL SYSTEM THAT:3 (A) A LLOWS LIQUOR LICENSE APPLICATIONS AND RENEWALS TO BE4 COMPLETED ONLINE;5 (B) A LLOWS A LICENSEE TO HAVE AN ACC OUNT WHERE ALL6 RELEVANT LICENSE INFORMATION FOR ALL OF ITS LICENSES IS STORED ;7 AND8 (C) A T THE TIME OF RENEWAL, ENABLES A LICENSEE TO RENEW ITS9 LICENSE ONLINE BY UPLOADING ALL REQUIRED DOCUMENTATION .10 (II) A S PART OF STUDYING THE FEASABILITY OF AN ONLINE PORTAL11 SYSTEM, THE STUDY MUST INCLUDE:12 (A) A PROPOSED TIMELINE FOR IMPLEMENTING THE SYSTEM ;13 (B) A PROPOSED REQUEST FOR PROPOSAL PROCESS FOR14 DEVELOPING THE SYSTEM; AND15 (C) T HE ESTIMATED COSTS OF DEVELOPING AND IMPLEMENTING16 THE SYSTEM.17 (III) I N ADDITION, THE FEASABILITY STUDY MUST INCLUDE A18 REPRESENTATIVE SAMPLE OF LOCAL LICENSING AUTHORITIES19 THROUGHOUT THE STATE .20 (b) B Y MARCH 1, 2028, THE STATE LICENSING AUTHORITY SHALL21 SUBMIT A REPORT TO THE HOUSE OF REPRESENTATIVES FINANCE22 COMMITTEE AND THE SENATE FINANCE COMMITTEE , OR THEIR SUCCESSOR23 COMMITTEES, ON THE FEASABILITY OF DEVELOPING AND IMPLEMENTING24 AN ONLINE PORTAL SYSTEM. THE REPORT MUST INCLUDE THE ELEMENTS25 SPECIFIED IN SUBSECTION (4)(a)(II) OF THIS SECTION.26 (c) T HE STATE LICENSING AUTHORITY MAY ADOPT RULES27 SB24-231 -6- NECESSARY TO IMPLEMENT AND ADMINISTER THIS SUBSECTION (4).1 (d) T HIS SUBSECTION (4) IS REPEALED, EFFECTIVE JANUARY 1,2 2029.3 SECTION 3. In Colorado Revised Statutes, 44-3-301, amend4 (2)(b), (3)(a)(II)(E), (3)(a)(II)(F), (8) introductory portion, (10)(c)(V),5 (11)(c)(II) introductory portion, (11)(d), and (11)(e)(I); and add (2)(d),6 (2)(e), (3)(a)(II)(G), (3)(a)(II)(H), (10)(g), and (13) as follows:7 44-3-301. Licensing in general - rules - tastings - promotional8 association - educational classes. (2) (b) A local licensing authority or 9 the state may DELEGATE ITS LICENSING AUTHORITY TO THE STATE10 LICENSING AUTHORITY WHEN AN APPLICANT IS APPLYING FOR OR11 RENEWING A LICENSE TO SELL ALCOHOL BEVERAGES AT RETAIL FOR12 CONSUMPTION ON OR OFF A LICENSED PREMISES AND THE LICENSED13 PREMISES IS LOCATED on state-owned property. deny the issuance of any14 new tavern or retail liquor store license whenever such authority15 determines that the issuance of the license would result in or add to an16 undue concentration of the same class of license and, as a result, require17 the use of additional law enforcement resources.18 (d) T HE STATE LICENSING AUTHORITY SHALL APPROVE THE19 PROPOSED PREMISES FOR A DISTILLERY APPLYING PURSUANT TO SECTION20 44-3-402, WHICH PREMISES INCLUDES UP TO TWO NONCONTIGUOUS21 LOCATIONS USED FOR MANUFACTURING SPIRITUOUS LIQUORS , OR A22 MODIFICATION OF THE LICENSED PREMISES OF A DISTILLERY LICENSED23 PURSUANT TO SECTION 44-3-402 TO INCLUDE UP TO TWO NONCONTIGUOUS24 LOCATIONS USED FOR MANUFACTURING SPIRITUOUS LIQUORS , IF THE25 ALCOHOL AND TOBACCO TAX AND TRADE BUREAU OF THE UNITED STATES26 DEPARTMENT OF THE TREASURY HAS APPROVED THE DESCRIPTION AND27 SB24-231 -7- DIAGRAM OF THE PROPOSED OR MODIFIED PREMISES . ADDITIONALLY, WITH1 THE INITIAL LICENSE APPLICATION THAT INCLUDES NONCONTIGUOUS2 LOCATIONS WITHIN THE PROPOSED PREMISES OR A SUBSEQUENT3 APPLICATION TO MODIFY THE PREMISES TO INCLUDE NONCONTIGUOUS4 LOCATIONS, THE LICENSEE SHALL SUBMIT PROOF FROM THE LOCAL5 LICENSING AUTHORITY IN WHICH THE PREMISES IS LOCATED OF6 COMPLIANCE WITH ALL APPLICABLE ZONING , BUILDING, FIRE, AND OTHER7 REQUIREMENTS FOR OCCUPANCY AND OPERATION . THE STATE LICENSING8 AUTHORITY MAY, BY RULE, ESTABLISH A ONE-TIME APPLICATION FEE AND9 AN ANNUAL RENEWAL FEE , NEITHER OF WHICH MAY EXCEED FIVE10 HUNDRED DOLLARS PER LOCATION , FOR APPLICATIONS UNDER THIS11 SUBSECTION (2)(d).12 (e) T HE STATE LICENSING AUTHORITY SHALL APPROVE THE13 PROPOSED PREMISES FOR A BREWERY APPLYING PURSUANT TO SECTION14 44-3-402, WHICH PREMISES INCLUDES UP TO TWO NONCONTIGUOUS15 LOCATIONS USED FOR MANUFACTURING MALT LI QUORS , OR A16 MODIFICATION OF THE LICENSED PREMISES OF A BREWERY LICENSED17 PURSUANT TO SECTION 44-3-402 TO INCLUDE UP TO TWO NONCONTIGUOUS18 LOCATIONS USED FOR MANUFACTURING MALT LIQUORS , IF THE ALCOHOL19 AND TOBACCO TAX AND TRADE BUREAU OF THE UNITED STATES20 DEPARTMENT OF THE TREASURY HAS APPROVED THE DESCRIPTION AND21 DIAGRAM OF THE PROPOSED OR MODIFIED PREMISES . ADDITIONALLY, WITH22 THE INITIAL LICENSE APPLICATION THAT INCLUDES NONCONTIGUOUS23 LOCATIONS WITHIN THE PROPOSED PREMISES OR A SUBSEQUENT24 APPLICATION TO MODIFY THE PREMISES TO INCLUDE NONCONTIGUOUS25 LOCATIONS, THE LICENSEE SHALL SUBMIT PROOF FROM THE LOCAL26 LICENSING AUTHORITY IN WHICH THE PREMISES IS LOCATED OF27 SB24-231 -8- COMPLIANCE WITH ALL APPLICABLE ZONING , BUILDING, FIRE, AND OTHER1 REQUIREMENTS FOR OCCUPANCY AND OPERATION . THE STATE LICENSING2 AUTHORITY MAY, BY RULE, ESTABLISH A ONE-TIME APPLICATION FEE AND3 AN ANNUAL RENEWAL FEE , NEITHER OF WHICH MAY EXCEED FIVE4 HUNDRED DOLLARS PER LOCATION , FOR APPLICATIONS UNDER THIS5 SUBSECTION (2)(e).6 (3) (a) (II) For purposes of this section, each of the following is7 considered a single business and location:8 (E) A winery OR LIMITED WINERY licensed pursuant to section9 44-3-402 or 44-3-403 that has noncontiguous locations included in the10 licensed premises; and 11 (F) A festival at which more than one licensee participates12 pursuant to a festival permit. A BREWERY LICENSED PURSUANT TO13 SECTION 44-3-402 THAT HAS NONCONTIGUOUS LOCATIONS INCLUDED IN14 THE LICENSED PREMISES;15 (G) A DISTILLERY LICENSED PURSUANT TO SECTION 44-3-402 THAT16 HAS NONCONTIGUOUS LOCATIONS INCLUDED IN THE LICENSED PREMISES ;17 AND18 (H) A FESTIVAL AT WHICH MORE THAN ONE LICENSEE19 PARTICIPATES PURSUANT TO A FESTIVAL PERMIT .20 (8) Each licensee holding a fermented malt beverage AND WINE21 on-premises license or on- and off-premises license, beer and wine22 license, hotel and restaurant license, LODGING FACILITY LICENSE, tavern23 license, lodging and entertainment FACILITY license, club license, arts24 license, or racetrack license shall manage the premises himself or herself25 or employ a separate and distinct manager on the premises and shall26 report the name of the manager to the state and local licensing authorities.27 SB24-231 -9- The licensee shall report any change in managers to the state and local1 licensing authorities within thirty days after the change. When a hotel and2 restaurant, LODGING FACILITY, tavern, or lodging and entertainment3 FACILITY licensee reports a change in manager to the state and local4 licensing authority AUTHORITIES, the licensee shall pay:5 (10) (c) Tastings are subject to the following limitations:6 (V) The licensee may conduct tastings only during the operating7 hours in which the licensee on whose premises the tastings occur is8 permitted to sell alcohol beverages, and in no case earlier than 11 a.m. 109 a.m. or later than 9 p.m.10 (g) (I) A N OFF-PREMISES RETAILER MAY CONDUCT A TASTING OF11 ALCOHOL BEVERAGES FROM THE OFF -PREMISES RETAIL LICENSEE 'S12 EXISTING INVENTORY.13 (II) A MANUFACTURER OR WHOLESALER SHALL PROMPTLY REMOVE14 ALL OPEN AND UNCONSUMED ALCOHOL BEVERAGE SAMPLES FROM THE15 LICENSED PREMISES OR DESTROY THE SAMPLES IMMEDIATELY FOLLOWING16 THE COMPLETION OF THE TASTING.17 (III) O FF-PREMISES RETAILERS MAY HOLD TASTINGS , SUBJECT TO18 RESTRICTIONS AS TO THE SERVING SIZE OF ANY ONE SAMPLE AND OVERALL19 TOTAL AMOUNTS OF ALL ALCOHOL BEVERAGES THAT ARE TASTED . THE20 TOTAL AMOUNT OF ALCOHOL BEVERAGES TO BE SAMPLED AT A TASTING21 SHALL BE LIMITED TO, REGARDLESS OF THE NUMBER OF ITEMS BEING22 TASTED, NOT MORE THAN FOUR OUNCES OF MALT LIQUOR , FOUR OUNCES23 OF VINOUS LIQUOR, AND TWO OUNCES OF SPIRITUOUS LIQUOR PER24 CUSTOMER PER DAY.25 (11) (c) (II) An association or licensed tavern, lodging and 26 entertainment facility, LODGING FACILITY, hotel and restaurant, brew pub,27 SB24-231 -10- distillery pub, retail gaming tavern, vintner's restaurant, beer and wine1 licensee, manufacturer or beer wholesaler that operates a sales room, or2 limited winery that wishes to create a promotional association may submit3 an application to the local licensing authority. To qualify for certification,4 the promotional association must:5 (d) A person shall not attach a premises licensed under this article6 3 to a common consumption area unless authorized by the local licensing7 authority. Any noncontiguous location included in the licensed premises8 of a winery, LIMITED WINERY, DISTILLERY, OR BREWERY licensed pursuant9 to section 44-3-402 or 44-3-403 that falls outside the approved10 boundaries of an entertainment district or a common consumption area11 authorized pursuant to this subsection (11) shall not be included as part12 of a certified promotional association or entertainment district even13 though the licensed premises of that winery, LIMITED WINERY,14 DISTILLERY, OR BREWERY is within the entertainment district.15 (e) (I) A licensed tavern, lodging and entertainment facility,16 LODGING FACILITY, hotel and restaurant, brew pub, distillery pub, retail17 gaming tavern, vintner's restaurant, beer and wine licensee, manufacturer18 or beer wholesaler that operates a sales room, limited winery, or optional19 premises that wishes to attach to a common consumption area may submit20 an application to the local licensing authority. To qualify, the licensee21 must include a request for authority to attach to the common consumption22 area from the certified promotional association of the common23 consumption area unless the promotional association does not exist when24 the application is submitted. If so THE PROMOTIONAL ASSOCIATION EXISTS25 WHEN THE APPLICATION IS SUBMITTED , the applicant shall request the26 authority when a promotional association is certified and shall27 SB24-231 -11- demonstrate to the local licensing authority that the authority has been1 obtained by the time the applicant's license issued under this article 3 is2 renewed.3 (13) (a) A PERSON LICENSED PURSUANT TO SECTION 44-3-409 MAY4 HOLD EDUCATIONAL CLASSES PURSUANT TO THIS SUBSECTION (13) AND5 MAY CHARGE A FEE FOR THE EDUCATIONAL CLASSES IT HOLDS ; EXCEPT6 THAT THE LICENSEE SHALL NOT CHARGE A FEE BY THE DRINK .7 (b) A LICENSEE AUTHORIZED UNDER THIS SUBSECTION (13) TO8 HOLD EDUCATIONAL CLASSES SHALL NOT ALLOW CLASS PARTICIPANTS TO9 PARTICIPATE IN ANY OTHER TASTING EVENTS ON THE LICENSED PREMISES10 HELD ON THE SAME DAY AND SHALL IMPLEMENT A MEANS OF TRACKING11 HOW MANY SAMPLES EACH CLASS PARTICIPANT IS PROVIDED , WHICH MAY12 INCLUDE THE USE OF A WRISTBAND OR OTHER MEANS OF ACCURATELY13 TRACKING AN INDIVIDUAL CLASS PARTICIPANT 'S CONSUMPTION.14 (c) I N ORDER TO TEACH AN EDUCATIONAL CLASS PURSUANT TO15 THIS SUBSECTION (13), A CLASS INSTRUCTOR MUST HAVE SUCCESSFULLY16 COMPLETED THE RESPONSIBLE ALCOHOL BEVERAGE VENDOR TRAINING17 PROVIDED IN SECTION 44-3-1002.18 (d) N OTWITHSTANDING ANY LAW TO THE CONTRARY , A19 WHOLESALER OR MANUFACTURER MAY PROVIDE ALCOHOL BEVERAGES20 FOR AN EDUCATIONAL CLASS HELD BY A LICENSEE PURSUANT TO THIS21 SUBSECTION (13). SUCH ALCOHOL BEVERAGES MUST BE USED ONLY FOR22 THE SPECIFIC EDUCATIONAL CLASS FOR WHICH THE ALCOHOL BEVERAGES23 WERE PROVIDED. A WHOLESALER OR MANUFACTURER THAT PROVIDES24 ALCOHOL BEVERAGES FOR AN EDUCATIONAL CLASS SHALL REMOVE ALL25 UNOPENED PRODUCTS THAT REMAIN AT THE END OF THE CLASS . OPENED,26 UNFINISHED ALCOHOL BEVERAGES MAY BE USED BY THE LICENSEE ONLY27 SB24-231 -12- AT A FUTURE EDUCATIONAL CLASS AND MUST BE LOCKED UP OFF THE1 SALES FLOOR.2 (e) T HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES3 ESTABLISHING SAMPLE SIZE LIMITS AND TOTAL VOLUME LIMITS FOR4 EDUCATIONAL CLASSES HELD PURSUANT TO THIS SUBSECTION (13).5 SECTION 4. In Colorado Revised Statutes, 44-3-302, amend6 (1)(a), (2)(b), (2)(d)(I), and (2)(d)(VIII); and add (3) as follows:7 44-3-302. License renewal - rules. (1) (a) Ninety days before the8 expiration date of an existing license, the state licensing authority AND,9 FOR LICENSES ISSUED BY A LOCAL LICENSING AUTHORITY , THE LOCAL10 LICENSING AUTHORITY shall notify the licensee of the expiration date by11 any method reasonably likely to actually notify the licensee. The state12 licensing authority shall promulgate rules setting the procedure FOR THE13 STATE LICENSING AUTHORITY to notify a licensee in accordance with this14 subsection (1)(a).15 (2) (b) A state or local licensing authority shall not accept a late16 renewal application more than ninety days after the expiration of a17 licensee's permanent annual OR BIENNIAL license. Any A licensee whose18 permanent annual OR BIENNIAL license has been expired for more than19 ninety days must apply for a new license pursuant to section 44-3-311 or20 a reissued license pursuant to subsection (2)(d) of this section.21 (d) (I) Notwithstanding subsection (2)(b) of this section, with the22 permission of the licensing authority, a licensee whose permanent annual23 OR BIENNIAL license has been expired for more than ninety days but less24 than one hundred eighty days may submit to the local licensing authority,25 or to the state licensing authority in the case of a licensee whose alcohol26 beverage license is not subject to issuance or approval by a local licensing27 SB24-231 -13- authority, an application for a reissued license. The licensing authority1 has the sole discretion to determine whether to allow a licensee to apply2 for a reissued license.3 (VIII) (A) E XCEPT AS PROVIDED IN SUBSECTION (2)(d)(VIII)(B) OF4 THIS SECTION, if the state licensing authority approves the reissuance OF5 A LICENSE, the licensee will maintain MAINTAINS the same license period6 dates as if the license had been renewed prior to the expiration date.7 (B) I F THE STATE LICENSING AUTHORITY APPROVES THE8 REISSUANCE OF AN EXPIRED LICENSE THAT WAS A BIENNIAL LICENSE , THE9 STATE LICENSING AUTHORITY MUST REISSUE AN ANNUAL LICENSE INSTEAD10 OF A BIENNIAL LICENSE.11 (3) (a) A PERSON LICENSED PURSUANT TO THIS ARTICLE 3 OR12 ARTICLE 4 OF THIS TITLE 44 BY, AND IN GOOD STANDING WITH, THE STATE13 LICENSING AUTHORITY MAY FILE AN APPLICATION WITH THE STATE14 LICENSING AUTHORITY TO RENEW THE LICENSE FOR A TWO -YEAR PERIOD.15 A PERSON LICENSED PURSUANT TO THIS ARTICLE 3 OR ARTICLE 4 OF THIS16 TITLE 44 BY, AND IN GOOD STANDING WITH, BOTH THE STATE LICENSING17 AUTHORITY AND A LOCAL LICENSING AUTHORITY MAY FILE AN18 APPLICATION WITH BOTH THE STATE AND LOCAL LICENSING AUTHORITIES19 TO RENEW THE LICENSE FOR A TWO-YEAR PERIOD.20 (b) A LICENSEE GRANTED A BIENNIAL LICENSE PURSUANT TO THIS21 SUBSECTION (3) SHALL PAY THE APPLICABLE FEE REQUIRED BY SECTIONS22 44-3-501 (1) AND 44-3-505 (1) ANNUALLY AS FOLLOWS:23 (I) T HE FIRST PAYMENT MUST BE SUBMITTED WITH THE24 APPLICATION TO RENEW THE LICENSE FOR A TWO -YEAR PERIOD; AND25 (II) T HE SECOND PAYMENT MUST BE SUBMITTED BY A DATE26 SPECIFIED BY THE STATE LICENSING AUTHORITY THAT IS TWELVE MONTHS27 SB24-231 -14- AFTER THE BIENNIAL LICENSE APPLICATION IS FILED.1 (c) T HE STATE LICENSING AUTHORITY SHALL ADOPT RULES2 NECESSARY TO IMPLEMENT AND ADMINISTER THIS SUBSECTION (3).3 SECTION 5. In Colorado Revised Statutes, 44-3-303, amend4 (1)(b) as follows:5 44-3-303. Transfer of ownership and temporary permits.6 (1) (b) When a license has been issued to a husband and wife SPOUSES,7 PARTNERS IN A CIVIL UNION, or to general or limited partners, the death of8 a spouse or partner shall DOES not require the surviving spouse or partner9 to obtain a new license. All rights and privileges granted under the10 original license shall continue in full force and effect as to such THE11 survivors for the balance of the license period.12 SECTION 6. In Colorado Revised Statutes, 44-3-309, amend13 (1)(n); and add (1)(o) as follows:14 44-3-309. Local licensing authority - applications - optional15 premises licenses. (1) A local licensing authority may issue only the16 following alcohol beverage licenses upon payment of the fee specified in17 section 44-3-505:18 (n) Lodging and Entertainment FACILITY license;19 (o) L ODGING FACILITY LICENSE.20 SECTION 7. In Colorado Revised Statutes, 44-3-311, amend (1)21 as follows:22 44-3-311. Public notice - posting and publication - definition.23 (1) Upon receipt of an application, except an application for renewal or24 for transfer of ownership, the A local licensing authority shall MAY25 schedule a public hearing upon the application not less than thirty days26 from AFTER the date of the application and shall post and publish the27 SB24-231 -15- public notice thereof OF THE HEARING not less than ten days prior to the1 hearing. I F A PUBLIC HEARING IS SCHEDULED , THE LOCAL LICENSING2 AUTHORITY SHALL GIVE public notice shall be given by the posting of a3 sign in a conspicuous place on the premises for which application has4 been made and by publication in a newspaper of general circulation in the5 county in which the premises are located.6 SECTION 8. In Colorado Revised Statutes, 44-3-401, amend7 (1)(w); and add (1)(y) and (1)(z) as follows:8 44-3-401. Classes of licenses and permits - rules. (1) For the9 purpose of regulating the manufacture, sale, and distribution of alcohol10 beverages, the state licensing authority in its discretion, upon application11 in the prescribed form made to it, may issue and grant to the applicant a12 license or permit from any of the following classes, subject to the13 provisions and restrictions provided by this article 3:14 (w) Lodging and Entertainment FACILITY license;15 (y) L ODGING FACILITY LICENSE;16 (z) C ATERING LICENSE.17 SECTION 9. In Colorado Revised Statutes, 44-3-402, amend18 (7)(a) as follows:19 44-3-402. Manufacturer's license - rules. (7) (a) (I) A20 manufacturer of spirituous liquors licensed pursuant to this section may21 conduct tastings and sell to customers spirituous liquors of its own22 manufacture on its licensed premises and at one other approved sales23 room location at no additional cost. A sales room location may be24 included in the license at the time of the original license issuance or by25 supplemental application. I F THE LICENSED PREMISES INCLUDES MULTIPLE26 NONCONTIGUOUS LOCATIONS , THE MANUFACTURER MAY OPERATE A SALES27 SB24-231 -16- ROOM ON ONLY ONE OF THOSE NONCONTIGUOUS LOCATIONS .1 (II) A MANUFACTURER OF SPIRITUOUS LIQUORS LICENSED2 PURSUANT TO THIS SECTION THAT OPERATES A SALES ROOM MAY3 PURCHASE AND USE COMMON ALCOHOL MODIFIERS , INCLUDING4 VERMOUTH, AMAROS, AND LIQUEURS, TO COMBINE WITH SPIRITUOUS5 LIQUORS TO PRODUCE COCKTAILS FOR CONSUMPTION ON OR OFF THE SALES6 ROOM PREMISES. THE STATE LICENSING AUTHORITY MAY ADOPT RULES7 NECESSARY TO IMPLEMENT AND ADMINISTER THIS SUBSECTION (7)(a)(II).8 SECTION 10. In Colorado Revised Statutes, 44-3-404, amend9 (1)(c) as follows:10 44-3-404. Festival permit - rules. (1) (c) If a festival permittee11 notifies the state licensing authority and the appropriate local licensing12 authority of the location of and dates of each festival at least thirty13 business CALENDAR days before holding the festival, the permittee may14 hold up to, but no more than, nine festivals during the twelve months after15 the festival permit is issued. Beginning January 1, 2024, a permittee may16 hold up to nine festivals during each calendar year.17 SECTION 11. In Colorado Revised Statutes, 44-3-405, repeal (2)18 as follows:19 44-3-405. Importer's license. (2) It is unlawful for any licensed20 importer of vinous or spirituous liquors or any person, partnership,21 association, organization, or corporation interested financially in or with22 such a licensed importer to be interested financially, directly or indirectly,23 in the business of any vinous or spirituous wholesale licensee; except that24 any such financial interest that occurred on or before July 1, 1969, shall25 be lawful.26 SECTION 12. In Colorado Revised Statutes, 44-3-407, amend27 SB24-231 -17- (3); and add (1.5) as follows:1 44-3-407. Wholesaler's license - discrimination in wholesale2 sales prohibited - rules. (1.5) (a) A LICENSED WHOLESALER MAY HOLD3 TRADE SHOW EVENTS TO ALLOW RETAILERS TO SAMPLE PRODUCTS ON THE4 WHOLESALER'S LICENSED PREMISES IN AN AREA DESIGNATED FOR TRADE5 SHOW EVENTS. A WHOLESALER SHALL NOT OPEN TRADE SHOW EVENTS TO6 THE GENERAL PUBLIC.7 (b) (I) E XCEPT AS PROVIDED IN SUBSECTION (1.5)(b)(II) OF THIS8 SECTION, A WHOLESALER MAY HOLD A TRADE SHOW EVENT ON THE9 WHOLESALER'S LICENSED PREMISES.10 (II) A WHOLESALER SHALL NOT HOLD A TRADE SHOW EVENT IN :11 (A) T HE DOCKING, DELIVERY, OR WAREHOUSE STORAGE AREAS OF12 THE LICENSED PREMISES, UNLESS THE WAREHOUSE IS A DESIGNATED AREA13 FOR A TRADE SHOW EVENT OR IS ISOLATED AND EXCLUDED FROM ONGOING14 BUSINESS ACTIVITY; OR15 (B) A SALES ROOM DURING ANY TIME WHEN THE SALES ROOM IS16 OPEN TO THE GENERAL PUBLIC.17 (c) T HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES18 IMPLEMENTING THIS SUBSECTION (1.5).19 (3) It is unlawful for a licensed wholesaler of vinous or spirituous20 liquors or any person, partnership, association, organization, or21 corporation interested financially in or with such a wholesaler to be22 interested financially in the business of any licensed manufacturer or 23 importer of vinous or spirituous liquors; except that any such financial24 interest that occurred on or before July 1, 1969, shall be IS lawful.25 SECTION 13. In Colorado Revised Statutes, 44-3-409, amend26 (2)(a)(I); and add (6), (7), and (8) as follows:27 SB24-231 -18- 44-3-409. Retail liquor store license - rules - definitions.1 (2) (a) A person licensed under this section to sell malt, vinous, and2 spirituous liquors in a retail liquor store:3 (I) E XCEPT AS PROVIDED IN SUBSECTION (6) OF THIS SECTION, shall4 purchase the malt, vinous, and spirituous liquors only from a wholesaler5 licensed pursuant to this article 3; and6 (6) (a) A SELLING LICENSEE MAY SELL OR OTHERWISE TRANSFER7 ALL OF THE LICENSEE'S ALCOHOL BEVERAGE INVENTORY TO ANOTHER8 LICENSED RETAIL LIQUOR STORE AS PROVIDED IN THIS SUBSECTION (6).9 (b) (I) T HE SELLING LICENSEE MUST SELL ALL OF THE LICENSEE 'S10 ALCOHOL BEVERAGE INVENTORY TO ONLY ONE ACQUIRING LICENSEE .11 (II) I N DETERMINING THE COST OF THE ALCOHOL BEVERAGE12 INVENTORY, THE SELLING LICENSEE SHALL CHARGE, AND THE ACQUIRING13 LICENSEE MUST PAY, THE HIGHEST AMOUNT THE SELLING LICENSEE PAID14 FOR EACH ALCOHOL BEVERAGE IN THE ACQUIRING LICENSEE 'S INVENTORY15 AT THE TIME THE INVENTORY IS ACQUIRED .16 (c) B OTH THE SELLING LICENSEE AND THE ACQUIRING LICENSEE17 SHALL GIVE NOTICE TO THE STATE AND LOCAL LICENSING AUTHORITIES OF18 THE SALE OR TRANSFER OF THE INVENTORY NOT LESS THAN FIFTEEN DAYS19 BEFORE THE SALE OCCURS.20 (d) (I) P RIOR TO ACCEPTING PAYMENT FROM AN ACQUIRING21 LICENSEE, THE SELLING LICENSEE SHALL NOTIFY ALL WHOLESALERS FROM22 WHICH THE SELLING LICENSEE PURCHASED ALCOHOL BEVERAGES WITHIN23 THE FOUR MONTHS IMMEDIATELY PRECEDING THE DATE OF THE SALE OR24 TRANSFER, INFORMING THE WHOLESALERS OF THE IMPENDING SALE OR25 TRANSFER.26 (II) W ITHIN FIFTEEN BUSINESS DAYS AFTER RECEIVING THE NOTICE27 SB24-231 -19- SENT PURSUANT TO SUBSECTION (6)(d)(I) OF THIS SECTION, A1 WHOLESALER SHALL NOTIFY THE ACQUIRING LICENSEE AND THE SELLING2 LICENSEE OF ANY OUTSTANDING DEBT OWED BY THE SELLING LICENSEE TO3 THE WHOLESALER FOR THE PRODUCTS BEING SOLD OR TRANSFERRED .4 (III) I F AN ACQUIRING LICENSEE RECEIVES NOTICE OF AN5 OUTSTANDING DEBT OWED BY THE SELLING LICENSEE PURSUANT TO6 SUBSECTION (6)(d)(II) OF THIS SECTION, THE ACQUIRING LICENSEE SHALL7 FIRST SATISFY THE SELLING LICENSEE'S DEBT WITH THE WHOLESALER. THE8 ACQUIRING LICENSEE SHALL PAY ANY REMAINING MONEY OWED FOR THE9 PURCHASED INVENTORY AFTER PAYMENT HAS BEEN MADE TO ANY10 WHOLESALERS THAT NOTIFIED THE ACQUIRING LICENSEE IN A MANNER11 CONSISTENT WITH THE AGREEMENT BETWEEN THE SELLING LICENSEE AND12 THE ACQUIRING LICENSEE.13 (IV) I F A WHOLESALER FAILS TO PROVIDE NOTICE OF ANY14 INDEBTEDNESS OWED TO THE WHOLESALER BY THE SELLING LICENSEE15 WITHIN THE TIME SPECIFIED IN SUBSECTION (6)(d)(II) OF THIS SECTION,16 THE ACQUIRING LICENSEE IS EXCUSED OF ANY LIABILITY FOR THE17 OUTSTANDING DEBT THE SELLING LICENSEE OWES THE WHOLESALER .18 (e) A T THE TIME THAT THE SELLING LICENSEE OFFERS ITS ALCOHOL19 BEVERAGE INVENTORY FOR SALE TO AN ACQUIRING LICENSEE , THE20 SELLING LICENSEE SHALL ALSO GIVE NOTICE TO ALL LICENSED21 WHOLESALERS OF THE OFFER , AND THE SELLING LICENSEE SHALL22 IMMEDIATELY, UPON GIVING NOTICE, CEASE TO PURCHASE ANY FURTHER23 PRODUCT FROM A LICENSED WHOLESALER .24 (f) (I) A FTER THE SELLING LICENSEE'S ALCOHOL BEVERAGE25 INVENTORY IS PURCHASED, THE SELLING LICENSEE'S LICENSE IS CANCELED,26 INVALID, AND CONSIDERED TO HAVE BEEN SURRENDERED . EXCEPT AS27 SB24-231 -20- PROVIDED IN SUBSECTION (6)(f)(II) OF THIS SECTION, THE STATE OR A1 LOCAL LICENSING AUTHORITY SHALL NOT ISSUE A NEW RETAIL LIQUOR2 STORE LICENSE AT THE LOCATION OF THE SELLING LICENSEE'S PREMISES OR3 WITHIN ONE THOUSAND FIVE HUNDRED FEET OF THE LICENSED PREMISES4 FOR THE FIVE YEARS IMMEDIATELY FOLLOWING THE DATE THE LICENSE IS5 CANCELED, INVALIDATED, OR CONSIDERED SURRENDERED .6 (II) T HE STATE AND LOCAL LICENSING AUTHORITIES MAY APPROVE7 A TRANSFER OF OWNERSHIP THAT ENABLES A NEW LICENSEE TO OPERATE8 AT THE SAME PREMISES IF THE CONDITIONS IN SUBSECTION (7) OF THIS9 SECTION ARE MET.10 (7) (a) A N ACQUIRING LICENSEE MAY, SUBJECT TO APPROVAL FROM11 THE STATE AND LOCAL LICENSING AUTHORITIES AND THE LIMITATIONS12 SPECIFIED IN SUBSECTION (4)(b)(III) OF THIS SECTION, OBTAIN THE RETAIL13 LIQUOR LICENSE OF A SELLING LICENSEE WHEN THE ALCOHOL BEVERAGE14 INVENTORY OF THE SELLING LICENSEE IS TRANSFERRED TO THE ACQUIRING15 LICENSEE IF:16 (I) T HE LICENSED PREMISES OF THE SELLING LICENSEE DOES NOT17 EXCEED TEN THOUSAND SQUARE FEET ; AND18 (II) T HE ACQUISITION OF THE LICENSE IS APPROVED BY THE STATE19 AND LOCAL LICENSING AUTHORITIES FOR A CHANGE OF OWNERSHIP AS20 REQUIRED BY SECTION 44-3-303.21 (b) I F AN ACQUIRING LICENSEE IS ISSUED A NEW LICENSE PURSUANT22 TO THIS SUBSECTION (7), THE ACQUIRING LICENSEE SHALL NOT EXPAND23 THE LICENSED PREMISES TO A SIZE THAT EXCEEDS THE SIZE OF THE24 LICENSED PREMISES AT THE TIME OF THE TRANSFER FOR A PERIOD OF TEN25 YEARS AFTER THE DATE THE LICENSE WAS TRANSFERRED .26 (c) I F THE ACQUIRING LICENSEE OWNS MORE THAN ONE RETAIL27 SB24-231 -21- LIQUOR STORE LICENSE, THE PURCHASED ALCOHOL BEVERAGE INVENTORY1 MAY BE PAID FOR BY THE ACQUIRING LICENSEE , AND THE ACQUIRING2 LICENSEE MAY ALLOCATE THE COST BETWEEN OR AMONG ALL OF THE3 RETAIL LIQUOR STORES OWNED BY THE ACQUIRING LICENSEE , SO LONG AS4 THE ALLOCATION OCCURS PRIOR TO OR AT THE TIME THE ALCOHOL5 BEVERAGE IS REMOVED FROM THE PREMISES OF THE SELLING LICENSEE .6 (d) U PON ENTERING INTO AN AGREEMENT FOR THE SALE OF THE7 SELLING LICENSEE'S ALCOHOL BEVERAGE INVENTORY , THE SELLING8 LICENSEE AND THE ACQUIRING LICENSEE SHALL PROVIDE NOTICE OF THE9 PENDING SALE TO THE STATE LICENSING AUTHORITY , WHICH SHALL POST10 THE NOTICE ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.11 (e) T HE ACQUIRING LICENSEE MUST TRANSPORT THE ALCOHOL12 BEVERAGE IT PURCHASED FROM THE SELLING LICENSEE AND MAY ONLY13 TRANSPORT THE ALCOHOL BEVERAGES TO THE ACQUIRING LICENSEE 'S14 LICENSED PREMISES OR TO ONE OF THE OTHER LICENSED PREMISES OWNED15 BY THE ACQUIRING LICENSEE.16 (8) A S USED IN THIS SECTION:17 (a) "A CQUIRING LICENSEE" MEANS A LICENSED RETAIL LIQUOR18 STORE PURCHASING OR ATTEMPTING TO PURCHASE THE INVENTORY OF A19 SELLING LICENSEE.20 (b) "S ELLING LICENSEE" MEANS A LICENSED RETAIL LIQUOR STORE21 THAT IS SURRENDERING ITS LICENSE.22 SECTION 14. In Colorado Revised Statutes, 44-3-410, amend23 (2)(b) as follows:24 44-3-410. Liquor-licensed drugstore license - multiple licenses25 permitted - requirements - rules. (2) (b) A person licensed under this26 section on or after January 1, 2017, shall not purchase malt, vinous, or27 SB24-231 -22- spirituous liquors from a wholesaler on credit and shall effect payment1 upon delivery of the alcohol beverages. T HE ACCEPTANCE AND USE OF AN2 ELECTRONIC FUNDS TRANSFER IS NOT AN EXTENSION OR ACCEPTANCE OF3 CREDIT AS PROHIBITED BY THIS SUBSECTION (2)(b) IF THE TRANSFER IS4 INITIATED ON OR BEFORE THE NEXT BUSINESS DAY AFTER THE DELIVERY5 OF THE MALT, VINOUS, OR SPIRITUOUS LIQUORS.6 SECTION 15. In Colorado Revised Statutes, 44-3-411, amend7 (2)(a) as follows:8 44-3-411. Beer and wine license. (2) (a) Every person selling9 malt and vinous liquors as provided in this section shall purchase malt10 and vinous liquors only from a wholesaler licensed pursuant to this article11 3; except that, during a calendar year, any A person selling malt and12 vinous liquors as provided in this section may purchase not more than two13 SEVEN thousand dollars' worth of malt and vinous liquors from retailers14 licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c).15 O N JANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE16 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION17 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH18 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR19 ENFORCEMENT DIVISION'S WEBSITE.20 SECTION 16. In Colorado Revised Statutes, 44-3-413, amend21 (7)(b)(I) as follows:22 44-3-413. Hotel and restaurant license - definitions - rules.23 (7) (b) (I) During a calendar year, a person selling alcohol beverages as24 provided in this section may purchase not more than two SEVEN thousand25 dollars' worth of malt, vinous, and spirituous liquors from retailers26 licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c).27 SB24-231 -23- ON JANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE1 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION2 SPECIFIED IN THIS SUBSECTION (7)(b)(I) FOR INFLATION AND SHALL3 PUBLISH THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR4 ENFORCEMENT DIVISION'S WEBSITE.5 SECTION 17. In Colorado Revised Statutes, 44-3-414, amend6 (2)(a); and repeal (9) as follows:7 44-3-414. Tavern license. (2) (a) Every person selling alcohol8 beverages as provided in this section shall purchase alcohol beverages9 only from a wholesaler licensed pursuant to this article 3; except that,10 during a calendar year, a person selling alcohol beverages as provided in11 this section may purchase not more than two SEVEN thousand dollars'12 worth of malt, vinous, and spirituous liquors from retailers licensed13 pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). O N14 J ANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE15 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION16 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH17 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR18 ENFORCEMENT DIVISION'S WEBSITE.19 (9) (a) At the time a tavern license is due for renewal or by one 20 year after August 10, 2016, whichever occurs later, a tavern licensed21 under this section that does not have as its principal business the sale of22 alcohol beverages, has a valid license on August 10, 2016, and is a23 lodging and entertainment facility may apply to, and the applicable local24 licensing authority shall, convert the tavern license to a lodging and25 entertainment license under section 44-3-428, and the licensee may26 continue to operate as a lodging and entertainment facility licensee. If a27 SB24-231 -24- tavern licensee does not have as its principal business the sale of alcohol1 beverages but is not a lodging and entertainment facility, at the time the2 tavern license is due for renewal or by one year after August 10, 2016,3 whichever occurs later, the licensee may apply to, and the applicable local4 licensing authority shall, convert the tavern license to another license5 under this article 3, if any, for which the person qualifies.6 (b) A person applying under this subsection (9) to convert an7 existing tavern license to another license under this article 3 may apply to8 convert the license, even if the location of the licensed premises is within9 five hundred feet of any public or parochial school or the principal10 campus of any college, university, or seminary, so long as the local11 licensing authority has previously approved the location of the licensed12 premises in accordance with section 44-3-313 (1)(d).13 SECTION 18. In Colorado Revised Statutes, 44-3-416, amend14 (2)(a) as follows:15 44-3-416. Retail gaming tavern license. (2) (a) Every person16 selling alcohol beverages as described in this section shall purchase the17 alcohol beverages only from a wholesaler licensed pursuant to this article18 3; except that, during a calendar year, a person selling alcohol beverages19 as provided in this section may purchase not more than two SEVEN20 thousand dollars' worth of malt, vinous, or spirituous liquors from21 retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-10422 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE23 STATE LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION24 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH25 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR26 ENFORCEMENT DIVISION'S WEBSITE.27 SB24-231 -25- SECTION 19. In Colorado Revised Statutes, 44-3-417, amend1 (3)(a) as follows:2 44-3-417. Brew pub license - definitions. (3) (a) Every person3 selling alcohol beverages pursuant to this section shall purchase alcohol4 beverages, other than those that are manufactured at the licensed brew5 pub, from a wholesaler licensed pursuant to this article 3; except that,6 during a calendar year, a person selling alcohol beverages as provided in7 this section may purchase not more than two SEVEN thousand dollars'8 worth of malt, vinous, and spirituous liquors from retailers licensed9 pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). O N10 J ANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE11 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION12 SPECIFIED IN THIS SUBSECTION (3)(a) FOR INFLATION AND SHALL PUBLISH13 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR14 ENFORCEMENT DIVISION'S WEBSITE.15 SECTION 20. In Colorado Revised Statutes, 44-3-418, amend16 (2)(a) as follows:17 44-3-418. Club license - legislative declaration. (2) (a) Every18 person selling alcohol beverages as provided in this section shall purchase19 the alcohol beverages only from a wholesaler licensed pursuant to this20 article 3; except that, during a calendar year, a person selling alcohol21 beverages as provided in this section may purchase not more than two 22 SEVEN thousand dollars' worth of malt, vinous, and spirituous liquors23 from retailers licensed pursuant to sections 44-3-409, 44-3-410, and24 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY 125 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE26 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (2)(a) FOR27 SB24-231 -26- INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION1 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.2 SECTION 21. In Colorado Revised Statutes, 44-3-419, amend3 (1)(a) and (4)(a) as follows:4 44-3-419. Arts license - definition. (1) (a) An arts license may5 be issued to any nonprofit arts organization that sponsors and presents6 productions or performances of an artistic or cultural nature, and the arts7 license permits the licensee to sell alcohol beverages only to patrons of8 the productions or performances for consumption on the licensed9 premises in connection with the productions or performances. No person10 licensed pursuant to this section shall permit any exterior or interior11 advertising concerning the sale of alcohol beverages on the licensed12 premises A LICENSEE MAY PLACE LIMITED ADVERTISING OF THE13 AVAILABILITY OF ALCOHOL BEVERAGES FOR SALE ON THE LICENSED14 PREMISES WHILE AN ARTISTIC OR CULTURAL PRODUCTION OR15 PERFORMANCE IS TAKING PLACE AND MAY INCLUDE THE LIMITED16 ADVERTISING IN E-MAIL, PRINT, RADIO, TELEVISION, AND SOCIAL MEDIA17 MARKETING ABOUT THE PRODUCTION OR PERFORMANCE , BUT THE18 AVAILABILITY OF ALCOHOL BEVERAGES MUST NOT BE THE PRIMARY FOCUS19 OF THE ADVERTISEMENT.20 (4) (a) Every person selling alcohol beverages as provided in this21 section shall purchase the alcohol beverages only from a wholesaler22 licensed pursuant to this article 3; except that, during a calendar year, a23 person selling alcohol beverages as provided in this section may purchase24 not more than two SEVEN thousand dollars' worth of malt, vinous, and25 spirituous liquors from retailers licensed pursuant to sections 44-3-409,26 44-3-410, and 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY27 SB24-231 -27- 1 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE1 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (4)(a) FOR2 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION3 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.4 SECTION 22. In Colorado Revised Statutes, 44-3-420, amend5 (2)(a) as follows:6 44-3-420. Racetrack license. (2) (a) Every person selling alcohol7 beverages as provided in this section shall purchase the alcohol beverages8 only from a wholesaler licensed pursuant to this article 3; except that,9 during a calendar year, a person selling alcohol beverages as provided in10 this section may purchase not more than two SEVEN thousand dollars'11 worth of malt, vinous, and spirituous liquors from retailers licensed12 pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). O N13 J ANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE14 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION15 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH16 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LI QUOR17 ENFORCEMENT DIVISION'S WEBSITE.18 SECTION 23. In Colorado Revised Statutes, 44-3-422, amend19 (3)(a) as follows:20 44-3-422. Vintner's restaurant license. (3) (a) Every person21 selling alcohol beverages pursuant to this section shall purchase the22 alcohol beverages, other than those that are manufactured at the licensed23 vintner's restaurant, from a wholesaler licensed pursuant to this article 3;24 except that, during a calendar year, a person may purchase not more than25 two SEVEN thousand dollars' worth of malt, vinous, and spirituous liquors26 from retailers licensed pursuant to sections 44-3-409, 44-3-410, and27 SB24-231 -28- 44-4-104 (1)(c). ON JANUARY 1, 2025, AND EACH JANUARY 11 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE2 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (3)(a) FOR3 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION4 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.5 SECTION 24. In Colorado Revised Statutes, 44-3-423, amend6 (2)(a)(X); and add (2)(a)(XI) as follows:7 44-3-423. Removal of vinous liquor from licensed premises.8 (2) This section applies to a person:9 (a) That is duly licensed as a:10 (X) Lodging and Entertainment facility under section 44-3-428;11 and12 (XI) A LODGING FACILITY UNDER SECTION 44-3-432; AND13 SECTION 25. In Colorado Revised Statutes, 44-3-424, amend14 (2)(b) as follows:15 44-3-424. Retail establishment permit - definitions.16 (2) (b) Upon initial application, and for each renewal, the AN applicant17 must list each day that alcohol beverages will be served, which days must18 not be changed without a minimum of fifteen THIRTY days' written notice19 to the state and local licensing authority AUTHORITIES.20 SECTION 26. In Colorado Revised Statutes, 44-3-426, amend21 (4)(b)(I) as follows:22 44-3-426. Distillery pub license - legislative declaration -23 definition. (4) (b) (I) During a calendar year, a person selling alcohol24 beverages as provided in this section may purchase not more than two25 SEVEN thousand dollars' worth of malt, vinous, and spirituous liquors26 from retailers licensed pursuant to sections 44-3-409, 44-3-410, and27 SB24-231 -29- 44-4-104 (1)(c). ON JANUARY 1, 2025, AND EACH JANUARY 11 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE2 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (4)(b)(I) FOR3 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION4 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.5 SECTION 27. In Colorado Revised Statutes, 44-3-428, amend6 (1), (2), (3)(a), (3)(b) introductory portion, and (4)(b); repeal (5); and add7 (6) and (7) as follows:8 44-3-428. Entertainment facility license - repeal. (1) A lodging9 and AN entertainment FACILITY license may be issued to a lodging and AN10 entertainment facility selling alcohol beverages by the drink only to11 customers for consumption on the premises. A lodging and AN12 entertainment facility licensee shall have sandwiches and light snacks13 available for consumption on the LICENSED premises during business14 hours but need not have meals available for consumption.15 (2) (a) A lodging and AN entertainment facility licensed to sell16 alcohol beverages as provided in this section shall purchase alcohol17 beverages only from a wholesaler licensed pursuant to this article 3;18 except that, during a calendar year, a lodging and AN entertainment19 facility licensed to sell alcohol beverages as provided in this section may20 purchase not more than two SEVEN thousand dollars' worth of malt,21 vinous, and spirituous liquors from retailers licensed pursuant to sections22 44-3-409, 44-3-410, and 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH23 J ANUARY 1 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST24 THE PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (2)(a) FOR25 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION26 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.27 SB24-231 -30- (b) A lodging and AN entertainment facility licensee shall retain1 evidence of each purchase of malt, vinous, or spirituous liquors from a2 retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-1043 (1)(c), in the form of a purchase receipt showing the name of the licensed4 retailer, the date of purchase, a description of the alcohol beverages5 purchased, and the price paid for the alcohol beverages. The lodging and6 entertainment facility licensee shall retain the receipt and make it7 available to the state and local licensing authorities at all times during8 business hours.9 (3) (a) Except as provided in subsection (3)(b) of this section, it10 is unlawful for any owner, part owner, shareholder, or person interested11 directly or indirectly in lodging and entertainment FACILITY licenses to12 conduct, own either in whole or in part, or be directly or indirectly13 interested in any other business licensed pursuant to this article 3 or14 article 4 of this title 44.15 (b) An owner, part owner, shareholder, or person interested16 directly or indirectly in a lodging and AN entertainment FACILITY license17 may have an interest in:18 (4) (b) The manager for each lodging and LICENSED entertainment19 license FACILITY, the lodging and entertainment facility licensee, or an20 employee or agent of the lodging and entertainment facility licensee shall21 purchase alcohol beverages for one licensed premises only, and the22 purchases shall be separate and distinct from purchases for any other23 lodging and LICENSED entertainment license FACILITY.24 (5) At the time a tavern license issued under section 44-3-414 is25 due for renewal or by one year after August 10, 2016, whichever occurs26 later, a person licensed as a tavern that does not have as its principal27 SB24-231 -31- business the sale of alcohol beverages, has a valid license on August 10,1 2016, and is a lodging and entertainment facility may apply to, and the2 applicable local licensing authority shall, convert the tavern license to a3 lodging and entertainment license under this section, and the person may4 continue to operate as a lodging and entertainment facility licensee. A5 person applying to convert an existing tavern license to a lodging and6 entertainment license under this subsection (5) may apply to convert the7 license, even if the location of the licensed premises is within five8 hundred feet of any public or parochial school or the principal campus of9 any college, university, or seminary, so long as the local licensing10 authority has previously approved the location of the licensed premises11 in accordance with section 44-3-313 (1)(d).12 (6) (a) O N AND AFTER THE EFFECTIVE DATE OF THIS SUBSECTION13 (6), THE STATE OR A LOCAL LICENSING AUTHORITY SHALL NOT ISSUE OR14 RENEW ANY LICENSES UNDER THIS SECTION TO A LODGING FACILITY .15 (b) T HE STATE AND LOCAL LICENSING AUTHORITIES SHALL TREAT16 ANY APPLICATION SUBMITTED ON OR BEFORE THE EFFECTIVE DATE OF THIS17 SECTION, AS AMENDED, BY A LODGING FACILITY FOR A LODGING AND18 ENTERTAINMENT FACILITY LICENSE OR RENEWAL LICENSE AS AN19 APPLICATION FOR A LODGING FACILITY LICENSE OR RENEWAL LICENSE20 ISSUED PURSUANT TO SECTION 44-3-432.21 (c) O N THE EFFECTIVE DATE OF THIS SUBSECTION (6), EACH22 LODGING AND ENTERTAINMENT FACILITY LICENSE ISSUED UNDER THIS23 SECTION TO A LODGING FACILITY AUTOMATICALLY C ONVERTS TO LODGING24 FACILITY LICENSE ISSUED PURSUANT TO SECTION 44-3-432.25 (d) T HE CONVERSION OF AN ENTERTAINMENT AND LODGING26 LICENSE ISSUED TO A LODGING FACILITY UNDER THIS SECTION TO A27 SB24-231 -32- LODGING FACILITY LICENSE UNDER SECTION 44-3-432 PURSUANT TO THIS1 SUBSECTION (6) IS A CONTINUATION OF THE PRIOR LICENSE AND DOES NOT2 AFFECT:3 (I) A NY PRIOR DISCIPLINE, LIMITATION, OR CONDITION IMPOSED BY4 THE STATE LICENSING AUTHORITY ON A LICENSEE ;5 (II) T HE DEADLINE FOR RENEWAL OF THE LICENSE ; OR6 (III) A NY PENDING OR FUTURE INVESTIGATION OR7 ADMINISTRATIVE PROCEEDING .8 (e) T HIS SUBSECTION (6) IS REPEALED, EFFECTIVE SEPTEMBER 1,9 2026.10 (7) (a) O N THE EFFECTIVE DATE OF THIS SUBSECTION (7), EACH11 LODGING AND ENTERTAINMENT FACILITY LICENSE ISSUED UNDER THIS12 SECTION TO AN ENTERTAINMENT FACILITY AUTOMATICALLY CONVERTS TO13 AN ENTERTAINMENT FACILITY LICENSE .14 (b) T HE STATE AND LOCAL LICENSING AUTHORITIES SHALL TREAT15 ANY APPLICATION SUBMITTED ON OR BEFORE THE EFFECTIVE DATE OF THIS16 SECTION, AS AMENDED, BY AN ENTERTAINMENT FACILITY FOR A LODGING17 AND ENTERTAINMENT FACILITY LICENSE OR RENEWAL LICENSE AS AN18 APPLICATION FOR AN ENTERTAINMENT FACILITY LICENSE OR RENEWAL19 LICENSE ISSUED PURSUANT TO THIS SECTION.20 (c) T HE CONVERSION OF A L ODGING AND ENTERTAINMENT21 FACILITY LICENSE ISSUED TO AN ENTERTAINMENT FACILITY TO AN22 ENTERTAINMENT FACILITY LICENSE PURSUANT TO THIS SUBSECTION (7) IS23 A CONTINUATION OF THE PRIOR LICENSE AND DOES NOT AFFECT :24 (I) A NY PRIOR DISCIPLINE, LIMITATION, OR CONDITION IMPOSED BY25 THE STATE LICENSING AUTHORITY ON A LICENSEE ;26 (II) T HE DEADLINE FOR RENEWAL OF THE LICENSE ; OR27 SB24-231 -33- (III) ANY PENDING OR FUTURE INVESTIGATION OR1 ADMINISTRATIVE PROCEEDING .2 (d) T HIS SUBSECTION (7) IS REPEALED, EFFECTIVE SEPTEMBER 1,3 2026.4 SECTION 28. In Colorado Revised Statutes, 44-3-429, amend5 (1)(j) and (1)(k); and add (1)(l) as follows:6 44-3-429. Purchasing alcohol from a surrendered license of7 common ownership - definition. (1) This section applies to a person8 that has been issued the following license types:9 (j) Distillery pub license under section 44-3-426; or 10 (k) Lodging and Entertainment facility license under section11 44-3-428; OR12 (l) A LODGING FACILITY LICENSE UNDER SECTION 44-3-432.13 SECTION 29. In Colorado Revised Statutes, add 44-3-430,14 44-3-431, and 44-3-432 as follows:15 44-3-430. Alcohol beverage shipper license for wine direct16 shipping - rules. (1) T HE STATE LICENSING AUTHORITY MAY ISSUE AN17 ALCOHOL BEVERAGE SHIPPER LICENSE TO AN ALC OHOL BEVERAGE SHIPPER18 THAT SHIPS VINOUS LIQUORS FOR A LICENSED WINERY THAT HOLDS A19 WINERY DIRECT SHIPPER'S PERMIT PURSUANT TO SECTION 44-3-104.20 (2) A DRIVER DELIVERING ON BEHALF OF AN ALCOHOL BEVERAGE21 SHIPPER LICENSE SHALL NOT LE AVE A PACKAGE UNATTENDED ON A22 DOORSTEP AND SHALL CHECK THE RECIPIENT'S IDENTIFICATION TO ENSURE23 THAT THE INDIVIDUAL ACCEPTING DELIVERY IS THE INDIVIDUAL INTENDED24 TO RECEIVE THE PRODUCT AND IS NOT UNDER TWENTY -ONE YEARS OF AGE25 OR VISIBLY INTOXICATED.26 (3) I F AN ALCOHOL BEVERAGE SHIPPER VIOLATES THIS SECTION ,27 SB24-231 -34- THE STATE LICENSING AUTHORITY SHALL BRING ACTION AGAINST THE1 ALCOHOL BEVERAGE SHIPPER 'S LICENSE.2 (4) T HE STATE LICENSING AUTHORITY SHALL ADOPT RULES3 NECESSARY TO ADMINISTER AND ENFORCE THIS SECTION .4 44-3-431. Catering license - permitted events - private events5 - fees - rules. (1) T HE STATE LICENSING AUTHORITY MAY ISSUE A6 CATERING LICENSE TO A CATERING COMPANY THAT ALLOWS THE CATERING7 LICENSEE TO APPLY FOR TEMPORARY PERMITS TO SELL AND SERVE8 ALCOHOL BEVERAGES ON UNLICENSED PREMISES AT CATERED EVENTS .9 T HE CATERING LICENSE IS VALID FOR ONE CALENDAR YEAR AND RENEWED10 ON AN ANNUAL BASIS.11 (2) (a) T HE STATE LICENSING AUTHORITY SHALL ESTABLISH A12 PROCESS FOR A CATERING LICENSEE TO OBTAIN A PERMIT TO CATER AN13 EVENT THAT MAY BE ATTENDED BY SIX HUNDRED OR MORE INDIVIDUALS .14 T HE STATE LICENSING AUTHORITY MAY ESTABLISH A PROCESS FOR A15 CATERING LICENSEE TO OBTAIN A PERMIT TO CATER AN EVENT THAT MAY16 BE ATTENDED BY FEWER THAN SIX HUNDRED INDIVIDUALS .17 (b) A LOCAL LICENSING AUTHORITY MAY ESTABLISH A PROCESS18 FOR A CATERING LICENSEE TO OBTAIN A PERMIT TO CATER AN EVENT THAT19 MAY BE ATTENDED BY SIX HUNDRED OR MORE INDIVIDUALS . IF A LOCAL20 LICENSING AUTHORITY DOES NOT ESTABLISH A LOCAL CATERING PERMIT ,21 AN APPLICANT NEED NOT OBTAIN A CATERING PERMIT FROM THE LOCAL22 LICENSING AUTHORITY.23 (3) T HE STATE LICENSING AUTHORITY SHALL ESTABLISH AND24 MAINTAIN, ON THE LIQUOR ENFORCEMENT DIVISION 'S PUBLIC-FACING25 WEBSITE, A LISTING OF ALL CATERING LICENSES IN THE STATE. A CATERING26 LICENSEE SHALL SUBMIT INFORMATION REQUIRED BY THE STATE27 SB24-231 -35- LICENSING AUTHORITY IN RULE.1 (4) A CATERING LICENSEE SHALL NOT:2 (a) C ATER AN EVENT ON AN UNLICENSED PREMISES WITHOUT FIRST3 OBTAINING A PERMIT FOR THE EVENT FROM THE STATE LICENSING4 AUTHORITY AND, IF APPLICABLE, THE LOCAL LICENSING AUTHORITY; AND5 (b) P ERMIT AN INDIVIDUAL WHO IS EIGHTEEN YEARS OF AGE OR6 OLDER AND UNDER TWENTY -ONE YEARS OF AGE TO SELL, DISPENSE, OR7 PARTICIPATE IN THE SALE OR DISPENSING OF AN ALCOHOL BEVERAGE ,8 UNLESS THE INDIVIDUAL IS SUPERVISED BY ANOTHER INDIVIDUAL WHO IS9 ON THE UNLICENSED PREMISES AND IS TWENTY -ONE YEARS OF AGE OR10 OLDER.11 (5) T HE STATE LICENSING AUTHORITY MAY ADOPT RULES12 NECESSARY TO IMPLEMENT AND ADMINISTER THIS SECTION .13 44-3-432. Lodging facility license - rules. (1) T HE STATE14 LICENSING AUTHORITY MAY ISSUE A LODGING FACILITY LICENSE TO A15 LODGING FACILITY THAT SELLS ALCOHOL BEVERAGES BY THE DRINK ONLY16 TO CUSTOMERS FOR CONSUMPTION ON THE LICENSED PREMISES . A17 LODGING FACILITY'S LICENSED PREMISES DOES NOT INCLUDE THE18 FACILITY'S SLEEPING ROOMS. A LODGING FACILITY LICENSEE SHALL NOT19 PERMIT ALCOHOL BEVERAGES TO BE PURCHASED IN A SLEEPING ROOM ,20 SERVE OR DELIVER ALCOHOL BEVERAGES TO A SLEEPING ROOM , OR ALLOW21 A MINIBAR, AS DEFINED IN SECTION 44-3-413 (4)(b), IN A SLEEPING ROOM.22 (2) (a) A LODGING FACILITY LICENSED TO SELL ALCOHOL23 BEVERAGES AS PROVIDED IN THIS SECTION SHALL PURCHASE ALCOHOL24 BEVERAGES ONLY FROM A WHOLESALER LICENSED PURSUANT TO THIS25 ARTICLE 3; EXCEPT THAT, DURING A CALENDAR YEAR, A LODGING FACILITY26 LICENSED TO SELL ALCOHOL BEVERAGES AS PROVIDED IN THIS SECTION27 SB24-231 -36- MAY PURCHASE NOT MORE THAN TWO THOUSAND DOLLARS ' WORTH OF1 MALT, VINOUS, AND SPIRITUOUS LIQUORS FROM RETAILERS LICENSED2 PURSUANT TO SECTIONS 44-3-409, 44-3-410, AND 44-4-104 (1)(c). ON3 J ANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE4 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION5 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH6 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR7 ENFORCEMENT DIVISION'S WEBSITE.8 (b) A LODGING FACILITY LICENSEE SHALL RETAIN EVIDENCE OF9 EACH PURCHASE OF MALT , VINOUS, OR SPIRITUOUS LIQUORS FROM A10 RETAILER LICENSED PURSUANT TO SECTION 44-3-409, 44-3-410, OR11 44-4-104 (1)(c) IN THE FORM OF A PURCHASE RECEIPT SHOWING THE NAME12 OF THE LICENSED RETAILER, THE DATE OF PURCHASE, A DESCRIPTION OF13 THE ALCOHOL BEVERAGES PURCHASED , AND THE PRICE PAID FOR THE14 ALCOHOL BEVERAGES. THE LODGING FACILITY LICENSEE SHALL RETAIN15 THE RECEIPT AND MAKE IT AVAILABLE TO THE STATE AND LOCAL16 LICENSING AUTHORITIES AT ALL TIMES DURING BUSINESS HOURS .17 (3) (a) E XCEPT AS PROVIDED IN SUBSECTION (3)(b) OF THIS18 SECTION, IT IS UNLAWFUL FOR ANY OWNER, PART OWNER, SHAREHOLDER,19 OR PERSON INTERESTED DIRECTLY OR INDIRECTLY IN LODGING FACILITY20 LICENSES TO CONDUCT, OWN EITHER IN WHOLE OR IN PART , OR BE21 DIRECTLY OR INDIRECTLY INTERESTED IN ANY OTHER BUSINESS LICENSED22 PURSUANT TO THIS ARTICLE 3 OR ARTICLE 4 OF THIS TITLE 44.23 (b) A N OWNER, PART OWNER, SHAREHOLDER, OR PERSON24 INTERESTED DIRECTLY OR INDIRECTLY IN A LODGING FACILITY LICENSE25 MAY HAVE AN INTEREST IN:26 (I) A LICENSE DESCRIBED IN SECTION 44-3-401 (1)(j) TO (1)(t),27 SB24-231 -37- (1)(v), OR (1)(w); 44-3-412 (1); OR 44-4-104 (1)(c); OR1 (II) A FINANCIAL INSTITUTION REFERRED TO IN SECTION 44-3-3082 (4).3 (4) T HE MANAGER FOR EACH LICENSED LODGING FACILITY , THE4 LODGING FACILITY LICENSEE, OR AN EMPLOYEE OR AGENT OF THE LODGING5 FACILITY LICENSEE SHALL PURCHASE ALCOHOL BEVERAGES FOR ONE6 LICENSED PREMISES ONLY, AND THE PURCHASES SHALL BE SEPARATE AND7 DISTINCT FROM PURCHASES FOR ANY OTHER LICENSED LODGING FACILITY .8 (5) T HE STATE LICENSING AUTHORITY MAY ADOPT RULES9 NECESSARY TO IMPLEMENT AND ADMINISTER THIS SECTION .10 SECTION 30. In Colorado Revised Statutes, 44-3-501, amend11 (1) introductory portion, (1)(v), and (3)(a)(XVIII); repeal (1)(t); and add12 (1)(x), (3)(a)(XX), (3)(a)(XXI), (3)(a)(XXII), (3)(a)(XXIII), and (3)(e) as13 follows:14 44-3-501. State fees - rules. (1) The AN applicant shall pay the15 following license and permit fees to the department annually in advance:16 (t) For each retail establishment permit, up to two hundred dollars;17 (v) For each lodging and entertainment FACILITY license,18 seventy-five dollars;19 (x) F OR EACH LODGING FACILITY LICENSE , SEVENTY-FIVE20 DOLLARS.21 (3) (a) The state licensing authority shall establish fees for22 processing the following types of applications, notices, or reports required23 to be submitted to the state licensing authority:24 (XVIII) Applications for the renewal of a license or permit issued25 in accordance with this article 3; and 26 (XX) A PPLICATIONS FOR RETAIL ESTABLISHMENT PERMITS ;27 SB24-231 -38- (XXI) APPLICATIONS FOR A CATERING LICENSE AND CATERING1 PERMIT;2 (XXII) A PPLICATIONS FOR EACH NONCONTIGUOUS3 MANUFACTURING FACILITY; AND4 (XXIII) A PPLICATIONS FOR AN ALCOHOL BEVERAGE SHIPPER5 LICENSE.6 (e) (I) T HE STATE LICENSING AUTHORITY MAY CHARGE A LICENSEE7 AN INVESTIGATIVE FEE, IN ADDITION TO ANY FINES OR PENALTIES THAT8 MAY BE IMPOSED FOR A VIOLATION, FOR:9 (A) A COMPLEX OR FELONY INVESTIGATION ;10 (B) A N INVESTIGATION THAT RELATES TO PUBLIC HEALTH, SAFETY,11 OR WELFARE AS SPECIFIED BY THE STATE LICENSING AUTHORITY BY RULE ;12 OR13 (C) A N INVESTIGATION WHERE THE LICENSEE HAS ADMITTED GUILT14 IN A STIPULATION, AGREEMENT, AND ORDER.15 (II) (A) A N INVESTIGATIVE FEE MAY INCLUDE THE TIME , ON A16 PER-HOUR BASIS, THAT A CRIMINAL INVESTIGATOR SPENT INVESTIGATING17 A VIOLATION AND TESTIFYING AT AN ADMINISTRATIVE HEARING18 ASSOCIATED WITH THE VIOLATION.19 (B) T O RECOVER THE COST OF THE INVESTIGATOR 'S TIME20 PURSUANT TO THIS SUBSECTION (3)(e), THE STATE LICENSING AUTHORITY21 SHALL PROVIDE TIME TRACKING FOR THE FEE , WITHOUT DISCLOSING ANY22 INFORMATION INVOLVING CONFIDENTIAL ATTORNEY -CLIENT23 COMMUNICATIONS.24 (C) T HE STATE LICENSING AUTHORITY SHALL SET THE HOURLY25 RATE FOR INVESTIGATIVE WORK BY RULE .26 (III) T HE STATE LICENSING AUTHORITY SHALL NOT SEEK27 SB24-231 -39- INVESTIGATIVE FEES:1 (A) F OR A ROUTINE COMPLIANCE CHECK BY THE STATE LICENSING2 AUTHORITY, INCLUDING THE TIME SPENT BY A MINOR WHO ASSISTS THE3 STATE LICENSING AUTHORITY IN THE COMPLIANCE CHECK ;4 (B) B ASED ON A VOLUNTARY DISCLOSURE FROM A LICENSEE TO5 THE STATE LICENSING AUTHORITY; OR6 (C) F OR TIME SPENT BY AN INVESTIGATOR TO PREPARE TO TESTIFY7 AT A HEARING FOR THE VIOLATION.8 (IV) A LICENSEE CHARGED AN INVESTIGATIVE FEE MAY9 CHALLENGE THE REASONABLENESS OF THE FEE AT AN ADMINISTRATIVE10 HEARING.11 (V) A N INVESTIGATIVE FEE COLLECTED PURSUANT TO THIS12 SUBSECTION (3)(e) SHALL BE DEPOSITED INTO THE LIQUOR ENFORCEMENT13 DIVISION AND STATE LICENSING AUTHORITY CASH FUND CREATED IN14 SECTION 44-6-101.15 (VI) T HE STATE LICENSING AUTHORITY MAY ADOPT RULES16 NECESSARY TO IMPLEMENT THIS SUBSECTION (3)(e).17 SECTION 31. In Colorado Revised Statutes, 44-3-505, amend18 (1)(p); and add (1)(r) as follows:19 44-3-505. Local license fees. (1) The applicant shall pay the20 following license fees to the treasurer of the municipality, city and21 county, or county where the licensed premises is located annually in22 advance:23 (p) For each lodging and entertainment FACILITY license, five24 hundred dollars;25 (r) F OR EACH LODGING FACILITY LICENSE , FIVE HUNDRED26 DOLLARS.27 SB24-231 -40- SECTION 32. In Colorado Revised Statutes, 44-3-601, amend1 (1)(a); and add (10) as follows:2 44-3-601. Suspension - revocation - annual renewal - fines -3 investigative fees - rules. (1) (a) (I) Subject to subsection (8) of this4 section, in addition to any other penalties prescribed by this article 3 or5 article 4 or 5 of this title 44, the state or any local licensing authority has6 the power, on its own motion or on complaint, after investigation and7 public hearing at which the licensee shall be afforded an opportunity to8 be heard, to TAKE ANY OF THE FOLLOWING ACTIONS FOR ANY VIOLATION9 BY A LICENSEE, OR BY ANY OF THE AGENTS, SERVANTS, OR EMPLOYEES OF10 THE LICENSEE, OF THIS ARTICLE 3, ANY RULES AUTHORIZED BY THIS11 ARTICLE 3, OR ANY OF THE TERMS, CONDITIONS, OR PROVISIONS OF THE12 LICENSE OR PERMIT ISSUED BY SUCH AUTHORITY :13 (A) Fine a licensee; or to 14 (B) R EQUIRE ANNUAL RENEWAL OF A LICENSE ; OR15 (C) Suspend or revoke, in whole or in part, any license or permit16 issued by such authority. for any violation by the licensee or by any of the 17 agents, servants, or employees of the licensee of this article 3; any rules18 authorized by this article 3; or any of the terms, conditions, or provisions19 of the license or permit issued by such authority.20 (II) A licensing authority may impose a fine pursuant to this21 subsection (1) regardless of whether a licensee has petitioned the22 licensing authority pursuant to subsection (3)(a) of this section for23 permission to pay a fine in lieu of license or permit suspension, and the24 licensing authority need not make the findings specified in subsections25 (3)(a)(I) and (3)(a)(II) of this section.26 (10) (a) I F A LICENSEE WITH A BIENNIAL LICENSE IS FOUND TO27 SB24-231 -41- HAVE VIOLATED THIS ARTICLE 3, THE STATE LICENSING AUTHORITY SHALL1 REQUIRE THE LICENSEE TO RENEW ITS LICENSE ANNUALLY .2 (b) A LICENSEE MAY REAPPLY TO RENEW ITS LICENSE BIENNIALLY3 PURSUANT TO SECTION 44-3-302 (3) AFTER TWO YEARS WITHOUT ANY4 VIOLATIONS.5 SECTION 33. In Colorado Revised Statutes, 44-3-901, amend6 (6)(b)(II), (6)(c), (6)(i)(I), and (6)(p)(II); and add (6)(q) as follows:7 44-3-901. Unlawful acts - exceptions - definitions. (6) It is8 unlawful for any person licensed to sell at retail pursuant to this article 39 or article 4 of this title 44:10 (b) To sell, serve, or distribute any malt, vinous, or spirituous11 liquors at any time other than the following:12 (II) In sealed containers, beginning at 8 a.m. until 12 midnight13 each day; except that no malt, vinous, or spirituous liquors shall be sold, 14 served, or distributed in a sealed container on Christmas day;15 (c) To sell fermented malt beverages:16 (I) To any person under the age of twenty-one years OF AGE,17 except as provided in section 18-13-122; OR18 (II) To any person between the hours of 12 midnight and 8 a.m.;19 or 20 (III) In a sealed container on Christmas day;21 (i) (I) To sell malt, vinous, or spirituous liquors or fermented malt22 beverages in a place where the alcohol beverages are to be consumed,23 unless the place is a hotel, A restaurant, A tavern, lodging and AN24 entertainment facility, A LODGING FACILITY, A racetrack, A club, A retail25 gaming tavern, or AN arts licensed premises or unless the place is a26 dining, club, or parlor car; A plane; A bus; or other conveyance or facility27 SB24-231 -42- of a public transportation system.1 (p) (II) If licensed as a tavern under section 44-3-414 that does not2 regularly serve meals or a lodging and AN entertainment facility under3 section 44-3-428 that does not regularly serve meals, to permit an4 employee who is under twenty-one years of age to sell malt, vinous, or5 spirituous liquors; or6 (q) T O KNOWINGLY PERMIT THE ILLEGAL SALE , OR NEGOTIATIONS7 FOR THE SALE, OF A CONTROLLED SUBSTANCE , AS DEFINED IN SECTION8 18-18-102 (5), ON THE LICENSEE'S LICENSED PREMISES. THIS SUBSECTION9 (6)(q) DOES NOT PROHIBIT A PHARMACY LICENSED BY THE STATE BOARD10 OF PHARMACY TO SELL LAWFULLY PRESCRIBED CONTROLLED SUBSTANCES11 AT A LIQUOR-LICENSED DRUGSTORE.12 SECTION 34. In Colorado Revised Statutes, 44-3-911, amend13 (6)(a)(I) and (6)(a)(II) as follows:14 44-3-911. Takeout and delivery of alcohol beverages - permit15 - on-premises consumption licenses - requirements and limitations -16 rules - definition - repeal. (6) (a) (I) This section authorizes a license17 holder that is issued a license under one of the following sections to sell18 an alcohol beverage to a customer for consumption off of the licensed19 premises: Section 44-3-402 that operates a sales room or section 44-3-40720 that operates a sales room or section 44-3-411, 44-3-413, 44-3-414,21 44-3-417, 44-3-418, 44-3-422, 44-3-426, 44-3-428, 44-3-432, 44-4-10422 (1)(c)(I)(A), or 44-4-104 (1)(c)(III).23 (II) This section authorizes a license holder that is issued a license24 under one of the following sections to deliver an alcohol beverage to a25 customer for consumption off of the licensed premises: Section 44-3-411,26 44-3-412, 44-3-413, 44-3-414, 44-3-415, 44-3-416, 44-3-417, 44-3-418,27 SB24-231 -43- 44-3-419, 44-3-420, 44-3-421, 44-3-422, 44-3-426, or 44-3-428, OR1 44-3-432.2 SECTION 35. Act subject to petition - effective date. This act3 takes effect at 12:01 a.m. on the day following the expiration of the4 ninety-day period after final adjournment of the general assembly; except5 that, if a referendum petition is filed pursuant to section 1 (3) of article V6 of the state constitution against this act or an item, section, or part of this7 act within such period, then the act, item, section, or part will not take8 effect unless approved by the people at the general election to be held in9 November 2024 and, in such case, will take effect on the date of the10 official declaration of the vote thereon by the governor.11 SB24-231 -44-