Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 24-1176.01 Yelana Love x2295 SENATE BILL 24-231 Senate Committees House Committees Finance Appropriations 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, AND, IN CONNECTION THEREWITH , 104 MAKING AN APPROPRIATION .105 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, SENATE Amended 2nd Reading May 4, 2024 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. 3, 6, 8, 17, 24, 27, 28, 29, 30, 31, 33, and 34 of the bill convert the 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. 231 -2- Section 25 increases the time to process a retail establishment 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: 13 (a) I S PRIMARILY ENGAGED IN PROVIDING EVENT -BASED 14 ALCOHOL BEVERAGE SERVICES FOR EVENTS :15 (I) A T A VENUE THAT DOES NOT POSSESS A LIQUOR LICENSE OR16 PERMIT; AND17 (II) T HAT HAVE SNACKS AND SANDWICHES AVAILABLE AT THE 18 231-3- EVENT; AND1 (b) H AS EQUIPMENT AND VEHICLES TO TRANSPORT MEALS ,2 ALCOHOL BEVERAGES, AND SNACKS TO EVENTS OR TO PREPARE FOOD AT3 AN OFF-PREMISES SITE.4 (11.5) "Communal outdoor dining area" means an outdoor space5 that is used for food and alcohol beverage service by two or more6 licensees licensed under this article 3 or article 4 of this title 44 as a:7 (j) Lodging and Entertainment facility;8 (k) Optional premises; or9 (l) Fermented malt beverage AND WINE retailer licensed for10 consumption on the premises; OR11 (m) L ODGING FACILITY.12 (14.5) "E DUCATIONAL CLASS" MEANS A CLOSED EVENT ON THE13 PREMISES OF A RETAIL LIQUOR STORE, DURING WHICH CONSUMERS WHO14 ARE TWENTY-ONE YEARS OF AGE OR OLDER ARE TAUGHT ABOUT ALCOHOL15 BEVERAGES THAT ARE SOLD BY THE RETAIL LIQUOR STORE , INCLUDING,16 BUT NOT LIMITED TO, THE HISTORY OF THE ALCOHOL BEVERAGE , FOOD17 PAIRINGS, AND SERVING SUGGESTIONS.18 (15) "Entertainment district" means an area that:19 (c) Contains at least twenty thousand square feet of premises that,20 at the time the district is created, is licensed pursuant to this article 3 as21 a:22 (XI) Lodging and Entertainment facility licensee; or23 (XII) Optional premises; OR24 (XIII) L ODGING FACILITY LICENSEE.25 (15.5) "E NTERTAINMENT FACILITY" MEANS AN ESTABLISHMENT:26 (a) I N WHICH THE PRIMARY BUSINESS IS TO PROVIDE THE PUBLIC27 231 -4- WITH SPORTS OR ENTERTAINMENT ACTIVITIES WITHIN ITS LICENSED1 PREMISES; AND2 (b) T HAT, INCIDENTAL TO ITS PRIMARY BUSINESS , SELLS AND3 SERVES ALCOHOL BEVERAGES AT RETAIL FOR CONSUMPTION ON THE4 LICENSED PREMISES AND HAS SANDWICHES AND LIGHT SNACKS AVAILABLE5 FOR CONSUMPTION ON THE LICENSED PREMISES .6 (21.5) "I NFLATION" MEAN THE ANNUAL PERCENTAGE CHANGE IN7 THE UNITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR8 STATISTICS CONSUMER PRICE INDEX , OR A SUCCESSOR INDEX , FOR9 D ENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID BY URBAN10 CONSUMERS.11 (29) "Lodging and entertainment facility" means an establishment:12 that:13 (a) Is either: IN WHICH THE PRIMARY BUSINESS IS TO PROVIDE THE14 PUBLIC WITH SLEEPING ROOMS AND MEETING FACILITIES ; AND15 (I) A lodging facility, the primary business of which is to provide16 the public with sleeping rooms and meeting facilities; or17 (II) An entertainment facility, the primary business of which is to18 provide the public with sports or entertainment activities within its19 licensed premises; and20 (b) Incidental to its primary business, THAT sells and serves21 alcohol beverages at retail for consumption on the LICENSED premises and22 has sandwiches and light snacks available for consumption on the23 LICENSED premises.24 (38) (b) Notwithstanding subsection (38)(a) of this section, for a25 winery, LIMITED WINERY, DISTILLERY, OR BREWERY authorized to26 manufacture vinous liquors ALCOHOL BEVERAGES pursuant to section27 231 -5- 44-3-402 or 44-3-403, the licensed premises may include up to two1 noncontiguous locations, both of which are used for manufacturing2 purposes, within a radius of ten miles.3 SECTION 2. In Colorado Revised Statutes, 44-3-202, add (4) as4 follows:5 44-3-202. Duties of state licensing authority - feasibility study6 - rules - repeal. (4) (a) (I) B Y JANUARY 1, 2028, THE STATE LICENSING7 AUTHORITY SHALL STUDY THE FEASABILITY OF ADOPTING AN ONLINE8 PORTAL SYSTEM THAT:9 (A) A LLOWS LIQUOR LICENSE APPLICATIONS AND RENEWALS TO BE10 COMPLETED ONLINE;11 (B) A LLOWS A LICENSEE TO HAVE AN ACCOUNT WHERE ALL12 RELEVANT LICENSE INFORMATION FOR ALL OF ITS LICENSES IS STORED ;13 AND14 (C) A T THE TIME OF RENEWAL, ENABLES A LICENSEE TO RENEW ITS15 LICENSE ONLINE BY UPLOADING ALL REQUIRED DOCUMENTATION .16 (II) A S PART OF STUDYING THE FEASABILITY OF AN ONLINE PORTAL17 SYSTEM, THE STUDY MUST INCLUDE:18 (A) A PROPOSED TIMELINE FOR IMPLEMENTING THE SYSTEM ;19 (B) A PROPOSED REQUEST FOR PROPOSAL PROCESS FOR20 DEVELOPING THE SYSTEM; AND21 (C) T HE ESTIMATED COSTS OF DEVELOPING AND IMPLEMENTING22 THE SYSTEM.23 (III) I N ADDITION, THE FEASABILITY STUDY MUST INCLUDE A24 REPRESENTATIVE SAMPLE OF LOCAL LICENSING AUTHORITIES25 THROUGHOUT THE STATE .26 (b) B Y MARCH 1, 2028, THE STATE LICENSING AUTHORITY SHALL27 231 -6- SUBMIT A REPORT TO THE HOUSE OF REPRESENTATIVES FI NANCE1 COMMITTEE AND THE SENATE FINANCE COMMITTEE , OR THEIR SUCCESSOR2 COMMITTEES, ON THE FEASABILITY OF DEVELOPING AND IMPLEMENTING3 AN ONLINE PORTAL SYSTEM. THE REPORT MUST INCLUDE THE ELEMENTS4 SPECIFIED IN SUBSECTION (4)(a)(II) OF THIS SECTION.5 (c) T HE STATE LICENSING AUTHORITY MAY ADOPT RULES6 NECESSARY TO IMPLEMENT AND ADMINISTER THIS SUBSECTION (4).7 (d) T HIS SUBSECTION (4) IS REPEALED, EFFECTIVE JANUARY 1,8 2029.9 SECTION 3. In Colorado Revised Statutes, 44-3-301, amend10 (2)(b), (3)(a)(II)(E), (3)(a)(II)(F), (8) introductory portion, (10)(c)(V),11 (11)(c)(II) introductory portion, (11)(d), and (11)(e)(I); and add (2)(d),12 (2)(e), (3)(a)(II)(G), (3)(a)(II)(H), (10)(g), and (13) as follows:13 44-3-301. Licensing in general - rules - tastings - promotional14 association - educational classes. (2) (b) A local licensing authority or 15 the state may DELEGATE ITS LICENSING AUTHORITY TO THE STATE16 LICENSING AUTHORITY WHEN AN APPLICANT IS APPLYING FOR OR17 RENEWING A LICENSE TO SELL ALCOHOL BEVERAGES AT RETAIL FOR18 CONSUMPTION ON OR OFF A LICENSED PREMISES AND THE LICENSED19 PREMISES IS LOCATED on state-owned property. deny the issuance of any20 new tavern or retail liquor store license whenever such authority21 determines that the issuance of the license would result in or add to an22 undue concentration of the same class of license and, as a result, require23 the use of additional law enforcement resources.24 (d) T HE STATE LICENSING AUTHORITY SHALL APPROVE THE25 PROPOSED PREMISES FOR A DISTILLERY APPLYING PURSUANT TO SECTION26 44-3-402, WHICH PREMISES INCLUDES UP TO TWO NONCONTIGUOUS27 231 -7- LOCATIONS USED FOR MANUFACTURING SPIRITUOUS LIQUORS , OR A1 MODIFICATION OF THE LICENSED PREMISES OF A DISTILLERY LICENSED2 PURSUANT TO SECTION 44-3-402 TO INCLUDE UP TO TWO NONCONTIGUOUS3 LOCATIONS USED FOR MANUFACTURING SPIRITUOUS LIQUORS , IF THE4 ALCOHOL AND TOBACCO TAX AND TRADE BUREAU OF THE UNITED STATES5 DEPARTMENT OF THE TREASURY HAS APPROVED THE DESCRIPTION AND6 DIAGRAM OF THE PROPOSED OR MODIFIED PREMISES . ADDITIONALLY, WITH7 THE INITIAL LICENSE APPLICATION THAT INCLUDES NONCONTIGUOUS8 LOCATIONS WITHIN THE PROPOSED PREMISES OR A SUBSEQUENT9 APPLICATION TO MODIFY THE PREMISES TO INCLUDE NONCONTI GUOUS10 LOCATIONS, THE LICENSEE SHALL SUBMIT PROOF FROM THE LOCAL11 LICENSING AUTHORITY IN WHICH THE PREMISES IS LOCATED OF12 COMPLIANCE WITH ALL APPLICABLE ZONING , BUILDING, FIRE, AND OTHER13 REQUIREMENTS FOR OCCUPANCY AND OPERATION . THE STATE LICENSING14 AUTHORITY MAY, BY RULE, ESTABLISH A ONE-TIME APPLICATION FEE AND15 AN ANNUAL RENEWAL FEE , NEITHER OF WHICH MAY EXCEED FIVE16 HUNDRED DOLLARS PER LOCATION , FOR APPLICATIONS UNDER THIS17 SUBSECTION (2)(d).18 (e) T HE STATE LICENSING AUTHORITY SHALL APPROVE THE19 PROPOSED PREMISES FOR A BREWERY APPLYING PURSUANT TO SECTION20 44-3-402, WHICH PREMISES INCLUDES UP TO TWO NONCONTIGUOUS21 LOCATIONS USED FOR MANUFACTURING MALT LI QUORS , OR A22 MODIFICATION OF THE LICENSED PREMISES OF A BREWERY LICENSED23 PURSUANT TO SECTION 44-3-402 TO INCLUDE UP TO TWO NONCONTIGUOUS24 LOCATIONS USED FOR MANUFACTURING MALT LIQUORS , IF THE ALCOHOL25 AND TOBACCO TAX AND TRADE BUREAU OF THE UNITED STATES26 DEPARTMENT OF THE TREASURY HAS APPROVED THE DESCRIPTION AND27 231 -8- 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)(e).12 (3) (a) (II) For purposes of this section, each of the following is13 considered a single business and location:14 (E) A winery OR LIMITED WINERY licensed pursuant to section15 44-3-402 or 44-3-403 that has noncontiguous locations included in the16 licensed premises; and 17 (F) A festival at which more than one licensee participates18 pursuant to a festival permit. A BREWERY LICENSED PURSUANT TO19 SECTION 44-3-402 THAT HAS NONCONTIGUOUS LOCATIONS INCLUDED IN20 THE LICENSED PREMISES;21 (G) A DISTILLERY LICENSED PURSUANT TO SECTION 44-3-402 THAT22 HAS NONCONTIGUOUS LOCATIONS INCLUDED IN THE LICENSED PREMISES ;23 AND24 (H) A FESTIVAL AT WHICH MORE THAN ONE LICENSEE25 PARTICIPATES PURSUANT TO A FESTIVAL PERMIT .26 (8) Each licensee holding a fermented malt beverage AND WINE27 231 -9- on-premises license or on- and off-premises license, beer and wine1 license, hotel and restaurant license, LODGING FACILITY LICENSE, tavern2 license, lodging and entertainment FACILITY license, club license, arts3 license, or racetrack license shall manage the premises himself or herself4 or employ a separate and distinct manager on the premises and shall5 report the name of the manager to the state and local licensing authorities.6 The licensee shall report any change in managers to the state and local7 licensing authorities within thirty days after the change. When a hotel and8 restaurant, LODGING FACILITY, tavern, or lodging and entertainment9 FACILITY licensee reports a change in manager to the state and local10 licensing authority AUTHORITIES, the licensee shall pay:11 (10) (c) Tastings are subject to the following limitations:12 (V) The licensee may conduct tastings only during the operating13 hours in which the licensee on whose premises the tastings occur is14 permitted to sell alcohol beverages, and in no case earlier than 11 a.m. 1015 a.m. or later than 9 p.m.16 (g) (I) A N OFF-PREMISES RETAILER MAY CONDUCT A TASTING OF17 ALCOHOL BEVERAGES FROM THE OFF -PREMISES RETAIL LICENSEE 'S18 EXISTING INVENTORY.19 20 (II) OFF-PREMISES RETAILERS MAY HOLD TASTINGS , SUBJECT TO21 RESTRICTIONS AS TO THE SERVING SIZE OF ANY ONE SAMPLE AND OVERALL22 TOTAL AMOUNTS OF ALL ALCOHOL BEVERAGES THAT ARE TASTED . THE23 TOTAL AMOUNT OF ALCOHOL BEVERAGES TO BE SAMPLED AT A TASTING24 SHALL BE LIMITED TO, REGARDLESS OF THE NUMBER OF ITEMS BEING25 TASTED, NOT MORE THAN FOUR OUNCES OF MALT LIQUOR , FOUR OUNCES26 OF VINOUS LIQUOR, AND TWO OUNCES OF SPIRITUOUS LIQUOR PER27 231 -10- CUSTOMER PER DAY.1 (11) (c) (II) An association or licensed tavern, lodging and2 entertainment facility, LODGING FACILITY, hotel and restaurant, brew pub,3 distillery pub, retail gaming tavern, vintner's restaurant, beer and wine4 licensee, manufacturer or beer wholesaler that operates a sales room, or5 limited winery that wishes to create a promotional association may submit6 an application to the local licensing authority. To qualify for certification,7 the promotional association must:8 (d) A person shall not attach a premises licensed under this article9 3 to a common consumption area unless authorized by the local licensing10 authority. Any noncontiguous location included in the licensed premises11 of a winery, LIMITED WINERY, DISTILLERY, OR BREWERY licensed pursuant12 to section 44-3-402 or 44-3-403 that falls outside the approved13 boundaries of an entertainment district or a common consumption area14 authorized pursuant to this subsection (11) shall not be included as part15 of a certified promotional association or entertainment district even16 though the licensed premises of that winery, LIMITED WINERY,17 DISTILLERY, OR BREWERY is within the entertainment district.18 (e) (I) A licensed tavern, lodging and entertainment facility,19 LODGING FACILITY, hotel and restaurant, brew pub, distillery pub, retail20 gaming tavern, vintner's restaurant, beer and wine licensee, manufacturer21 or beer wholesaler that operates a sales room, limited winery, or optional22 premises that wishes to attach to a common consumption area may submit23 an application to the local licensing authority. To qualify, the licensee24 must include a request for authority to attach to the common consumption25 area from the certified promotional association of the common26 consumption area unless the promotional association does not exist when27 231 -11- the application is submitted. If so THE PROMOTIONAL ASSOCIATION EXISTS1 WHEN THE APPLICATION IS SUBMITTED , the applicant shall request the2 authority when a promotional association is certified and shall3 demonstrate to the local licensing authority that the authority has been4 obtained by the time the applicant's license issued under this article 3 is5 renewed.6 (13) (a) A PERSON LICENSED PURSUANT TO SECTION 44-3-409 MAY7 HOLD EDUCATIONAL CLASSES PURSUANT TO THIS SUBSECTION (13) AND8 MAY CHARGE A FEE FOR THE EDUCATIONAL CLASSES IT HOLDS ; EXCEPT9 THAT THE LICENSEE SHALL NOT CHARGE A FEE BY THE DRINK .10 (b) A LICENSEE AUTHORIZED UNDER THIS SUBSECTION (13) TO11 HOLD EDUCATIONAL CLASSES SHALL NOT ALLOW CLASS PARTICIPANTS TO12 PARTICIPATE IN ANY OTHER TASTING EVENTS ON THE LICENSED PREMISES13 HELD ON THE SAME DAY AND SHALL IMPLEMENT A MEANS OF TRACKING14 HOW MANY SAMPLES EACH CLASS PARTICIPANT IS PROVIDED , WHICH MAY15 INCLUDE THE USE OF A WRISTBAND OR OTHER MEANS OF ACCURATELY16 TRACKING AN INDIVIDUAL CLASS PARTICIPANT 'S CONSUMPTION.17 (c) I N ORDER TO TEACH AN EDUCATIONAL CLASS PURSUANT TO18 THIS SUBSECTION (13), A CLASS INSTRUCTOR MUST HAVE SUCCESSFULLY19 COMPLETED THE RESPONSIBLE ALCOHOL BEVERAGE VENDOR TRAINING20 PROVIDED IN SECTION 44-3-1002.21 (d) N OTWITHSTANDING ANY LAW TO THE CONTRARY , A22 WHOLESALER OR MANUFACTURER MAY PROVIDE ALCOHOL BEVERAGES23 FOR AN EDUCATIONAL CLASS HELD BY A LICENSEE PURSUANT TO THIS24 SUBSECTION (13). SUCH ALCOHOL BEVERAGES MUST BE USED ONLY FOR25 THE SPECIFIC EDUCATIONAL CLASS FOR WHICH THE ALCOHOL BEVERAGES26 WERE PROVIDED. A WHOLESALER OR MANUFACTURER THAT PROVIDES27 231 -12- ALCOHOL BEVERAGES FOR AN EDUCATIONAL CLASS SHALL REMOVE ALL1 UNOPENED PRODUCTS THAT REMAIN AT THE END OF THE CLASS . OPENED,2 UNFINISHED ALCOHOL BEVERAGES MAY BE USED BY THE LICENSEE ONLY3 AT A FUTURE EDUCATIONAL CLASS AND MUST BE LOCKED UP OFF THE4 SALES FLOOR.5 (e) T HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES6 ESTABLISHING SAMPLE SIZE LIMITS AND TOTAL VOLUME LIMITS FOR7 EDUCATIONAL CLASSES HELD PURSUANT TO THIS SUBSECTION (13).8 SECTION 4. In Colorado Revised Statutes, 44-3-302, amend9 (1)(a), (2)(b), (2)(d)(I), and (2)(d)(VIII); and add (3) as follows:10 44-3-302. License renewal - rules. (1) (a) Ninety days before the11 expiration date of an existing license, the state licensing authority AND,12 FOR LICENSES ISSUED BY A LOCAL LICENSING AUTHORITY , THE LOCAL13 LICENSING AUTHORITY shall notify the licensee of the expiration date by14 any method reasonably likely to actually notify the licensee. The state15 licensing authority shall promulgate rules setting the procedure FOR THE16 STATE LICENSING AUTHORITY to notify a licensee in accordance with this17 subsection (1)(a).18 (2) (b) A state or local licensing authority shall not accept a late19 renewal application more than ninety days after the expiration of a20 licensee's permanent annual OR BIENNIAL license. Any A licensee whose21 permanent annual OR BIENNIAL license has been expired for more than22 ninety days must apply for a new license pursuant to section 44-3-311 or23 a reissued license pursuant to subsection (2)(d) of this section.24 (d) (I) Notwithstanding subsection (2)(b) of this section, with the25 permission of the licensing authority, a licensee whose permanent annual26 OR BIENNIAL license has been expired for more than ninety days but less27 231 -13- than one hundred eighty days may submit to the local licensing authority,1 or to the state licensing authority in the case of a licensee whose alcohol2 beverage license is not subject to issuance or approval by a local licensing3 authority, an application for a reissued license. The licensing authority4 has the sole discretion to determine whether to allow a licensee to apply5 for a reissued license.6 (VIII) (A) E XCEPT AS PROVIDED IN SUBSECTION (2)(d)(VIII)(B) OF7 THIS SECTION, if the state licensing authority approves the reissuance OF8 A LICENSE, the licensee will maintain MAINTAINS the same license period9 dates as if the license had been renewed prior to the expiration date.10 (B) I F THE STATE LICENSING AUTHORITY APPROVES THE11 REISSUANCE OF AN EXPIRED LICENSE THAT WAS A BIENNIAL LICENSE , THE12 STATE LICENSING AUTHORITY MUST REISSUE AN ANNUAL LICENSE INSTEAD13 OF A BIENNIAL LICENSE.14 (3) (a) A PERSON LICENSED PURSUANT TO THIS ARTICLE 3 OR15 ARTICLE 4 OF THIS TITLE 44 BY, AND IN GOOD STANDING WITH, THE STATE16 LICENSING AUTHORITY MAY FILE AN APPLICATION WITH THE STATE17 LICENSING AUTHORITY TO RENEW THE LICENSE FOR A TWO -YEAR PERIOD.18 A PERSON LICENSED PURSUANT TO THIS ARTICLE 3 OR ARTICLE 4 OF THIS19 TITLE 44 BY, AND IN GOOD STANDING WITH , BOTH THE STATE LICENSING20 AUTHORITY AND A LOCAL LICENSING AUTHORITY MAY FILE AN21 APPLICATION WITH BOTH THE STATE AND LOCAL LICENSING AUTHORITIES22 TO RENEW THE LICENSE FOR A TWO-YEAR PERIOD.23 (b) A LICENSEE GRANTED A BIENNIAL LICENSE PURSUANT TO THIS24 SUBSECTION (3) SHALL PAY THE APPLICABLE FEE REQUIRED BY SECTIONS25 44-3-501 (1) AND (3) AND 44-3-505 (1) ANNUALLY AS FOLLOWS:26 (I) T HE FIRST PAYMENT MUST BE SUBMITTED WITH THE27 231 -14- APPLICATION TO RENEW THE LICENSE FOR A TWO -YEAR PERIOD; AND1 (II) T HE SECOND PAYMENT MUST BE SUBMITTED BY A DATE2 SPECIFIED BY THE STATE LICENSING AUTHORITY THAT IS TWELVE MONTHS3 AFTER THE BIENNIAL LICENSE APPLICATION IS FILED.4 (c) T HE STATE LICENSING AUTHORITY SHALL ADOPT RULES5 NECESSARY TO IMPLEMENT AND ADMINISTER THIS SUBSECTION (3).6 SECTION 5. In Colorado Revised Statutes, 44-3-303, amend7 (1)(b) as follows:8 44-3-303. Transfer of ownership and temporary permits.9 (1) (b) When a license has been issued to a husband and wife SPOUSES,10 PARTNERS IN A CIVIL UNION, or to general or limited partners, the death of11 a spouse or partner shall DOES not require the surviving spouse or partner12 to obtain a new license. All rights and privileges granted under the13 original license shall continue in full force and effect as to such THE14 survivors for the balance of the license period.15 SECTION 6. In Colorado Revised Statutes, 44-3-309, amend16 (1)(n); and add (1)(o) as follows:17 44-3-309. Local licensing authority - applications - optional18 premises licenses. (1) A local licensing authority may issue only the19 following alcohol beverage licenses upon payment of the fee specified in20 section 44-3-505:21 (n) Lodging and Entertainment FACILITY license;22 (o) L ODGING FACILITY LICENSE.23 SECTION 7. In Colorado Revised Statutes, 44-3-311, amend (1)24 as follows:25 44-3-311. Public notice - posting and publication - definition.26 (1) Upon receipt of an application, except an application for renewal or27 231 -15- for transfer of ownership, the A local licensing authority shall MAY1 schedule a public hearing upon the application not less than thirty days2 from AFTER the date of the application and shall post and publish the3 public notice thereof OF THE HEARING not less than ten days prior to the4 hearing. I F A PUBLIC HEARING IS SCHEDULED , THE LOCAL LICENSING5 AUTHORITY SHALL GIVE public notice shall be given by the posting of a6 sign in a conspicuous place on the premises for which application has7 been made and by publication in a newspaper of general circulation in the8 county in which the premises are located.9 SECTION 8. In Colorado Revised Statutes, 44-3-401, amend10 (1)(w); and add (1)(y) and (1)(z) as follows:11 44-3-401. Classes of licenses and permits - rules. (1) For the12 purpose of regulating the manufacture, sale, and distribution of alcohol13 beverages, the state licensing authority in its discretion, upon application14 in the prescribed form made to it, may issue and grant to the applicant a15 license or permit from any of the following classes, subject to the16 provisions and restrictions provided by this article 3:17 (w) Lodging and Entertainment FACILITY license;18 (y) L ODGING FACILITY LICENSE;19 (z) C ATERING LICENSE.20 SECTION 9. In Colorado Revised Statutes, 44-3-402, amend21 (7)(a) as follows:22 44-3-402. Manufacturer's license - rules. (7) (a) (I) A23 manufacturer of spirituous liquors licensed pursuant to this section may24 conduct tastings and sell to customers spirituous liquors of its own25 manufacture on its licensed premises and at one other approved sales26 room location at no additional cost. A sales room location may be27 231 -16- included in the license at the time of the original license issuance or by1 supplemental application. I F THE LICENSED PREMISES INCLUDES MULTIPLE2 NONCONTIGUOUS LOCATIONS , THE MANUFACTURER MAY OPERATE A SALES3 ROOM ON ONLY ONE OF THOSE NONCONTIGUOUS LOCATIONS .4 (II) A MANUFACTURER OF SPIRITUOUS LIQUORS LICENSED5 PURSUANT TO THIS SECTION THAT OPERATES A SALES ROOM MAY6 PURCHASE AND USE COMMON ALCOHOL MODIFIERS , INCLUDING7 VERMOUTH, AMAROS, AND LIQUEURS, TO COMBINE WITH SPIRITUOUS8 LIQUORS TO PRODUCE COCKTAILS FOR CONSUMPTION ON OR OFF THE SALES9 ROOM PREMISES. A MANUFACTURER THAT USES AN ALC OHOL MODIFIER 10 PURSUANT TO THIS SUBSECTION (7)(a)(II) SHALL COMBINE THE MODIFIER11 WITH A SPIRITUOUS LIQUOR PRODUCED BY THE MANUFACTURER . A12 MANUFACTURER SHALL NOT SELL AN ALCOHOL MODIFIER THAT HAS NOT13 BEEN COMBINED WITH A SPIRITOUS LIQUOR . THE STATE LICENSING14 AUTHORITY MAY ADOPT RULES NECESSARY TO IMPLEMENT AND15 ADMINISTER THIS SUBSECTION (7)(a)(II).16 SECTION 10. In Colorado Revised Statutes, 44-3-404, amend17 (1)(c) as follows:18 44-3-404. Festival permit - rules. (1) (c) If a festival permittee19 notifies the state licensing authority and the appropriate local licensing20 authority of the location of and dates of each festival at least thirty21 business CALENDAR days before holding the festival, the permittee may22 hold up to, but no more than, nine festivals during the twelve months after23 the festival permit is issued. Beginning January 1, 2024, a permittee may24 hold up to nine festivals during each calendar year.25 SECTION 11. In Colorado Revised Statutes, 44-3-405, repeal (2)26 as follows:27 231 -17- 44-3-405. Importer's license. (2) It is unlawful for any licensed1 importer of vinous or spirituous liquors or any person, partnership,2 association, organization, or corporation interested financially in or with3 such a licensed importer to be interested financially, directly or indirectly,4 in the business of any vinous or spirituous wholesale licensee; except that5 any such financial interest that occurred on or before July 1, 1969, shall6 be lawful.7 SECTION 12. In Colorado Revised Statutes, 44-3-407, amend8 (3); and add (1.5) as follows:9 44-3-407. Wholesaler's license - discrimination in wholesale10 sales prohibited - rules. (1.5) (a) A LICENSED WHOLESALER MAY HOLD11 TRADE SHOW EVENTS TO ALLOW RETAILERS TO SAMPLE PRODUCTS ON THE12 WHOLESALER'S LICENSED PREMISES IN AN AREA DESIGNATED FOR TRADE13 SHOW EVENTS. A WHOLESALER SHALL NOT OPEN TRADE SHOW EVENTS TO14 THE GENERAL PUBLIC.15 (b) (I) E XCEPT AS PROVIDED IN SUBSECTION (1.5)(b)(II) OF THIS16 SECTION, A WHOLESALER MAY HOLD A TRADE SHOW EVENT ON THE17 WHOLESALER'S LICENSED PREMISES.18 (II) A WHOLESALER SHALL NOT HOLD A TRADE SHOW EVENT IN :19 (A) T HE DOCKING, DELIVERY, OR WAREHOUSE STORAGE AREAS OF20 THE LICENSED PREMISES, UNLESS THE WAREHOUSE IS A DESIGNATED AREA21 FOR A TRADE SHOW EVENT OR IS ISOLATED AND EXCLUDED FROM ONGOING22 BUSINESS ACTIVITY; OR23 (B) A SALES ROOM DURING ANY TIME WHEN THE SALES ROOM IS24 OPEN TO THE GENERAL PUBLIC.25 (c) T HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES26 IMPLEMENTING THIS SUBSECTION (1.5).27 231 -18- (3) It is unlawful for a licensed wholesaler of vinous or spirituous1 liquors or any person, partnership, association, organization, or2 corporation interested financially in or with such a wholesaler to be3 interested financially in the business of any licensed manufacturer or4 importer of vinous or spirituous liquors; except that any such financial5 interest that occurred on or before July 1, 1969, shall be IS lawful.6 SECTION 13. In Colorado Revised Statutes, 44-3-409, amend7 (2)(a)(I); and add (6), (7), and (8) as follows:8 44-3-409. Retail liquor store license - rules - definitions.9 (2) (a) A person licensed under this section to sell malt, vinous, and10 spirituous liquors in a retail liquor store:11 (I) E XCEPT AS PROVIDED IN SUBSECTION (6) OF THIS SECTION, shall12 purchase the malt, vinous, and spirituous liquors only from a wholesaler13 licensed pursuant to this article 3; and14 (6) (a) A SELLING LICENSEE MAY SELL OR OTHERWISE TRANSFER15 ALL OF THE LICENSEE'S ALCOHOL BEVERAGE INVENTORY TO ANOTHER16 LICENSED RETAIL LIQUOR STORE AS PROVIDED IN THIS SUBSECTION (6).17 (b) (I) T HE SELLING LICENSEE MUST SELL ALL OF THE LICENSEE 'S18 ALCOHOL BEVERAGE INVENTORY TO ONLY ONE ACQUIRING LICENSEE .19 (II) I N DETERMINING THE COST OF THE ALCOHOL BEVERAGE20 INVENTORY, THE SELLING LICENSEE SHALL CHARGE, AND THE ACQUIRING21 LICENSEE MUST PAY, THE HIGHEST AMOUNT THE SELLING LICENSEE PAID22 FOR EACH ALCOHOL BEVERAGE IN THE ACQUIRING LICENSEE 'S INVENTORY23 AT THE TIME THE INVENTORY IS ACQUIRED .24 (c) B OTH THE SELLING LICENSEE AND THE ACQUIRING LICENSEE25 SHALL GIVE NOTICE TO THE STATE AND LOCAL LICENSING AUTHORITIES OF26 THE SALE OR TRANSFER OF THE INVENTORY NOT LESS THAN FIFTEEN DAYS27 231 -19- BEFORE THE SALE OCCURS.1 (d) (I) P RIOR TO ACCEPTING PAYMENT FROM AN ACQUIRING2 LICENSEE, THE SELLING LICENSEE SHALL NOTIFY ALL WHOLESALERS FROM3 WHICH THE SELLING LICENSEE PURCHASED ALCOHOL BEVERAGES WITHIN4 THE FOUR MONTHS IMMEDIATELY PRECEDING THE DATE OF THE SALE OR5 TRANSFER, INFORMING THE WHOLESALERS OF THE IMPENDING SALE OR6 TRANSFER.7 (II) W ITHIN FIFTEEN BUSINESS DAYS AFTER RECEIVING THE NOTICE8 SENT PURSUANT TO SUBSECTION (6)(d)(I) OF THIS SECTION, A9 WHOLESALER SHALL NOTIFY THE ACQUIRING LICENSEE AND THE SELLING10 LICENSEE OF ANY OUTSTANDING DEBT OWED BY THE SELLING LICENSEE TO11 THE WHOLESALER FOR THE PRODUCTS BEING SOLD OR TRANSFERRED .12 (III) I F AN ACQUIRING LICENSEE RECEIVES NOTICE OF AN13 OUTSTANDING DEBT OWED BY THE SELLING LICENSEE PURSUANT TO14 SUBSECTION (6)(d)(II) OF THIS SECTION, THE ACQUIRING LICENSEE SHALL15 FIRST SATISFY THE SELLING LICENSEE'S DEBT WITH THE WHOLESALER. THE16 ACQUIRING LICENSEE SHALL PAY ANY REMAINING MONEY OWED FOR THE17 PURCHASED INVENTORY AFTER PAYMENT HAS BEEN MADE TO ANY18 WHOLESALERS THAT NOTIFIED THE ACQUIRING LICENSEE IN A MANNER19 CONSISTENT WITH THE AGREEMENT BETWEEN THE SELLING LICENSEE AND20 THE ACQUIRING LICENSEE.21 (IV) I F A WHOLESALER FAILS TO PROVIDE NOTICE OF ANY22 INDEBTEDNESS OWED TO THE WHOLESALER BY THE SELLING LICENSEE23 WITHIN THE TIME SPECIFIED IN SUBSECTION (6)(d)(II) OF THIS SECTION,24 THE ACQUIRING LICENSEE IS EXCUSED OF ANY LIABILITY FOR THE25 OUTSTANDING DEBT THE SELLING LICENSEE OWES THE WHOLESALER .26 (e) A T THE TIME THAT THE SELLING LICENSEE OFFERS ITS ALCOHOL27 231 -20- BEVERAGE INVENTORY FOR SALE TO AN ACQUIRING LICENSEE , THE1 SELLING LICENSEE SHALL ALSO GIVE NOTICE TO ALL LICENSED2 WHOLESALERS OF THE OFFER , AND THE SELLING LICENSEE SHALL3 IMMEDIATELY, UPON GIVING NOTICE, CEASE TO PURCHASE ANY FURTHER4 PRODUCT FROM A LICENSED WHOLESALER .5 (f) (I) A FTER THE SELLING LICENSEE 'S ALCOHOL BEVERAGE6 INVENTORY IS PURCHASED, THE SELLING LICENSEE'S LICENSE IS CANCELED,7 INVALID, AND CONSIDERED TO HAVE BEEN SURRENDERED . EXCEPT AS8 PROVIDED IN SUBSECTION (6)(f)(II) OF THIS SECTION, THE STATE OR A9 LOCAL LICENSING AUTHORITY SHALL NOT ISSUE A NEW RETAIL LIQUOR10 STORE LICENSE AT THE LOCATION OF THE SELLING LICENSEE'S PREMISES OR11 WITHIN ONE THOUSAND FIVE HUNDRED FEET OF THE LICENSED PREMISES12 FOR THE FIVE YEARS IMMEDIATELY FOLLOWING THE DATE THE LICENSE IS13 CANCELED, INVALIDATED, OR CONSIDERED SURRENDERED .14 (II) T HE STATE AND LOCAL LICENSING AUTHORITIES MAY APPROVE15 A TRANSFER OF OWNERSHIP THAT ENABLES A NEW LICENSEE TO OPERATE16 AT THE SAME PREMISES IF THE CONDITIONS IN SUBSECTION (7) OF THIS17 SECTION ARE MET.18 (7) (a) A N ACQUIRING LICENSEE MAY, SUBJECT TO APPROVAL FROM19 THE STATE AND LOCAL LICENSING AUTHORITIES AND THE LIMITATIONS20 SPECIFIED IN SUBSECTION (4)(b)(III) OF THIS SECTION, OBTAIN THE RETAIL21 LIQUOR LICENSE OF A SELLING LICENSEE WHEN THE ALCOHOL BEVERAGE22 INVENTORY OF THE SELLING LICENSEE IS TRANSFERRED TO THE ACQUIRING23 LICENSEE IF:24 (I) T HE LICENSED PREMISES OF THE SELLING LICENSEE DOES NOT25 EXCEED TEN THOUSAND SQUARE FEET ; AND26 (II) T HE ACQUISITION OF THE LICENSE IS APPROVED BY THE STATE27 231 -21- AND LOCAL LICENSING AUTHORITIES FOR A CHANGE OF OWNERSHIP AS1 REQUIRED BY SECTION 44-3-303.2 3 (b) IF THE ACQUIRING LICENSEE OWNS MORE THAN ONE RETAIL4 LIQUOR STORE LICENSE, THE PURCHASED ALCOHOL BEVERAGE INVENTORY5 MAY BE PAID FOR BY THE ACQUIRING LICENSEE , AND THE ACQUIRING6 LICENSEE MAY ALLOCATE THE COST BETWEEN OR AMONG ALL OF THE7 RETAIL LIQUOR STORES OWNED BY THE ACQUIRING LICENSEE , SO LONG AS8 THE ALLOCATION OCCURS PRIOR TO OR AT THE TIME THE ALCOHOL9 BEVERAGE IS REMOVED FROM THE PREMISES OF THE SELLING LICENSEE .10 (c) UPON ENTERING INTO AN AGREEMENT FOR THE SALE OF THE11 SELLING LICENSEE'S ALCOHOL BEVERAGE INVENTORY , THE SELLING12 LICENSEE AND THE ACQUIRING LICENSEE SHALL PROVIDE NOTICE OF THE13 PENDING SALE TO THE STATE LICENSING AUTHORITY , WHICH SHALL POST14 THE NOTICE ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.15 (d) THE ACQUIRING LICENSEE MUST TRANSPORT THE ALCOHOL16 BEVERAGE IT PURCHASED FROM THE SELLING LICENSEE AND MAY ONLY17 TRANSPORT THE ALCOHOL BEVERAGES TO THE ACQUIRING LICENSEE 'S18 LICENSED PREMISES OR TO ONE OF THE OTHER LICENSED PREMISES OWNED19 BY THE ACQUIRING LICENSEE.20 (8) A S USED IN THIS SECTION:21 (a) "A CQUIRING LICENSEE" MEANS A LICENSED RETAIL LIQUOR22 STORE PURCHASING OR ATTEMPTING TO PURCHASE THE INVENTORY OF A23 SELLING LICENSEE.24 (b) "S ELLING LICENSEE" MEANS A LICENSED RETAIL LIQUOR STORE25 THAT IS SURRENDERING ITS LICENSE.26 SECTION 14. In Colorado Revised Statutes, 44-3-410, amend27 231 -22- (2)(b) as follows:1 44-3-410. Liquor-licensed drugstore license - multiple licenses2 permitted - requirements - rules. (2) (b) A person licensed under this3 section on or after January 1, 2017, shall not purchase malt, vinous, or4 spirituous liquors from a wholesaler on credit and shall effect payment5 upon delivery of the alcohol beverages. T HE ACCEPTANCE AND USE OF AN6 ELECTRONIC FUNDS TRANSFER IS NOT AN EXTENSION OR ACCEPTANCE OF7 CREDIT AS PROHIBITED BY THIS SUBSECTION (2)(b) IF THE TRANSFER IS8 INITIATED ON OR BEFORE THE NEXT BUSINESS DAY AFTER THE DELIVERY9 OF THE MALT, VINOUS, OR SPIRITUOUS LIQUORS.10 SECTION 15. In Colorado Revised Statutes, 44-3-411, amend11 (2)(a) as follows:12 44-3-411. Beer and wine license. (2) (a) Every person selling13 malt and vinous liquors as provided in this section shall purchase malt14 and vinous liquors only from a wholesaler licensed pursuant to this article15 3; except that, during a calendar year, any A person selling malt and16 vinous liquors as provided in this section may purchase not more than two17 SEVEN thousand dollars' worth of malt and vinous liquors from retailers18 licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c).19 O N JANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE20 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION21 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH22 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR23 ENFORCEMENT DIVISION'S WEBSITE.24 SECTION 16. In Colorado Revised Statutes, 44-3-413, amend25 (7)(b)(I) as follows:26 44-3-413. Hotel and restaurant license - definitions - rules.27 231 -23- (7) (b) (I) During a calendar year, a person selling alcohol beverages as1 provided in this section may purchase not more than two SEVEN thousand2 dollars' worth of malt, vinous, and spirituous liquors from retailers3 licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c).4 O N JANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE5 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION6 SPECIFIED IN THIS SUBSECTION (7)(b)(I) FOR INFLATION AND SHALL7 PUBLISH THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR8 ENFORCEMENT DIVISION'S WEBSITE.9 SECTION 17. In Colorado Revised Statutes, 44-3-414, amend10 (2)(a); and repeal (9) as follows:11 44-3-414. Tavern license. (2) (a) Every person selling alcohol12 beverages as provided in this section shall purchase alcohol beverages13 only from a wholesaler licensed pursuant to this article 3; except that,14 during a calendar year, a person selling alcohol beverages as provided in15 this section may purchase not more than two SEVEN thousand dollars'16 worth of malt, vinous, and spirituous liquors from retailers licensed17 pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). O N18 J ANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE19 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION20 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH21 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR22 ENFORCEMENT DIVISION'S WEBSITE.23 (9) (a) At the time a tavern license is due for renewal or by one 24 year after August 10, 2016, whichever occurs later, a tavern licensed25 under this section that does not have as its principal business the sale of26 alcohol beverages, has a valid license on August 10, 2016, and is a27 231 -24- lodging and entertainment facility may apply to, and the applicable local1 licensing authority shall, convert the tavern license to a lodging and2 entertainment license under section 44-3-428, and the licensee may3 continue to operate as a lodging and entertainment facility licensee. If a4 tavern licensee does not have as its principal business the sale of alcohol5 beverages but is not a lodging and entertainment facility, at the time the6 tavern license is due for renewal or by one year after August 10, 2016,7 whichever occurs later, the licensee may apply to, and the applicable local8 licensing authority shall, convert the tavern license to another license9 under this article 3, if any, for which the person qualifies.10 (b) A person applying under this subsection (9) to convert an11 existing tavern license to another license under this article 3 may apply to12 convert the license, even if the location of the licensed premises is within13 five hundred feet of any public or parochial school or the principal14 campus of any college, university, or seminary, so long as the local15 licensing authority has previously approved the location of the licensed16 premises in accordance with section 44-3-313 (1)(d).17 SECTION 18. In Colorado Revised Statutes, 44-3-416, amend18 (2)(a) as follows:19 44-3-416. Retail gaming tavern license. (2) (a) Every person20 selling alcohol beverages as described in this section shall purchase the21 alcohol beverages only from a wholesaler licensed pursuant to this article22 3; except that, during a calendar year, a person selling alcohol beverages23 as provided in this section may purchase not more than two SEVEN24 thousand dollars' worth of malt, vinous, or spirituous liquors from25 retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-10426 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE27 231 -25- STATE LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION1 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH2 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR3 ENFORCEMENT DIVISION'S WEBSITE.4 SECTION 19. In Colorado Revised Statutes, 44-3-417, amend5 (3)(a) as follows:6 44-3-417. Brew pub license - definitions. (3) (a) Every person7 selling alcohol beverages pursuant to this section shall purchase alcohol8 beverages, other than those that are manufactured at the licensed brew9 pub, 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 (3)(a) FOR INFLATION AND SHALL PUBLISH17 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR18 ENFORCEMENT DIVISION'S WEBSITE.19 SECTION 20. In Colorado Revised Statutes, 44-3-418, amend20 (2)(a) as follows:21 44-3-418. Club license - legislative declaration. (2) (a) Every22 person selling alcohol beverages as provided in this section shall purchase23 the alcohol beverages only from a wholesaler licensed pursuant to this24 article 3; except that, during a calendar year, a person selling alcohol25 beverages as provided in this section may purchase not more than two 26 SEVEN thousand dollars' worth of malt, vinous, and spirituous liquors27 231 -26- from retailers licensed pursuant to sections 44-3-409, 44-3-410, and1 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY 12 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE3 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (2)(a) FOR4 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION5 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.6 SECTION 21. In Colorado Revised Statutes, 44-3-419, amend7 (1)(a) and (4)(a) as follows:8 44-3-419. Arts license - definition. (1) (a) An arts license may9 be issued to any nonprofit arts organization that sponsors and presents10 productions or performances of an artistic or cultural nature, and the arts11 license permits the licensee to sell alcohol beverages only to patrons of12 the productions or performances for consumption on the licensed13 premises in connection with the productions or performances. No person 14 licensed pursuant to this section shall permit any exterior or interior15 advertising concerning the sale of alcohol beverages on the licensed16 premises A LICENSEE MAY PLACE LIMITED ADVERTISING OF THE17 AVAILABILITY OF ALCOHOL BEVERAGES FOR SALE ON THE LICENSED18 PREMISES WHILE AN ARTISTIC OR CULTURAL PRODUCTION OR19 PERFORMANCE IS TAKING PLACE AND MAY INCLUDE THE LIMITED20 ADVERTISING IN E-MAIL, PRINT, RADIO, TELEVISION, AND SOCIAL MEDIA21 MARKETING ABOUT THE PRODUCTION OR PERFORMANCE , BUT THE22 AVAILABILITY OF ALCOHOL BEVERAGES MUST NOT BE THE PRIMARY FOCUS23 OF THE ADVERTISEMENT.24 (4) (a) Every person selling alcohol beverages as provided in this25 section shall purchase the alcohol beverages only from a wholesaler26 licensed pursuant to this article 3; except that, during a calendar year, a27 231 -27- person selling alcohol beverages as provided in this section may purchase1 not more than two SEVEN thousand dollars' worth of malt, vinous, and2 spirituous liquors from retailers licensed pursuant to sections 44-3-409,3 44-3-410, and 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY4 1 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE5 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (4)(a) FOR6 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION7 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.8 SECTION 22. In Colorado Revised Statutes, 44-3-420, amend9 (2)(a) as follows:10 44-3-420. Racetrack license. (2) (a) Every person selling alcohol11 beverages as provided in this section shall purchase the alcohol beverages12 only from a wholesaler licensed pursuant to this article 3; except that,13 during a calendar year, a person selling alcohol beverages as provided in14 this section may purchase not more than two SEVEN thousand dollars'15 worth of malt, vinous, and spirituous liquors from retailers licensed16 pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). O N17 J ANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE18 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION19 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH20 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR21 ENFORCEMENT DIVISION'S WEBSITE.22 SECTION 23. In Colorado Revised Statutes, 44-3-422, amend23 (3)(a) as follows:24 44-3-422. Vintner's restaurant license. (3) (a) Every person25 selling alcohol beverages pursuant to this section shall purchase the26 alcohol beverages, other than those that are manufactured at the licensed27 231 -28- vintner's restaurant, from a wholesaler licensed pursuant to this article 3;1 except that, during a calendar year, a person may purchase not more than2 two SEVEN thousand dollars' worth of malt, vinous, and spirituous liquors3 from retailers licensed pursuant to sections 44-3-409, 44-3-410, and4 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY 15 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE6 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (3)(a) FOR7 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION8 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.9 SECTION 24. In Colorado Revised Statutes, 44-3-423, amend10 (2)(a)(X); and add (2)(a)(XI) as follows:11 44-3-423. Removal of vinous liquor from licensed premises.12 (2) This section applies to a person:13 (a) That is duly licensed as a:14 (X) Lodging and Entertainment facility under section 44-3-428;15 and16 (XI) A LODGING FACILITY UNDER SECTION 44-3-432; AND17 SECTION 25. In Colorado Revised Statutes, 44-3-424, amend18 (2)(b) as follows:19 44-3-424. Retail establishment permit - definitions.20 (2) (b) Upon initial application, and for each renewal, the AN applicant21 must list each day that alcohol beverages will be served, which days must22 not be changed without a minimum of fifteen THIRTY days' written notice23 to the state and local licensing authority AUTHORITIES.24 SECTION 26. In Colorado Revised Statutes, 44-3-426, amend25 (4)(b)(I) as follows:26 44-3-426. Distillery pub license - legislative declaration -27 231 -29- definition. (4) (b) (I) During a calendar year, a person selling alcohol1 beverages as provided in this section may purchase not more than two2 SEVEN thousand dollars' worth of malt, vinous, and spirituous liquors3 from retailers licensed pursuant to sections 44-3-409, 44-3-410, and4 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY 15 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE6 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (4)(b)(I) FOR7 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION8 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.9 SECTION 27. In Colorado Revised Statutes, 44-3-428, amend10 (1), (2), (3)(a), (3)(b) introductory portion, and (4)(b); repeal (5); and add11 (6) and (7) as follows:12 44-3-428. Entertainment facility license - repeal. (1) A lodging 13 and AN entertainment FACILITY license may be issued to a lodging and AN14 entertainment facility selling alcohol beverages by the drink only to15 customers for consumption on the premises. A lodging and AN16 entertainment facility licensee shall have sandwiches and light snacks17 available for consumption on the LICENSED premises during business18 hours but need not have meals available for consumption.19 (2) (a) A lodging and AN entertainment facility licensed to sell20 alcohol beverages as provided in this section shall purchase alcohol21 beverages only from a wholesaler licensed pursuant to this article 3;22 except that, during a calendar year, a lodging and AN entertainment23 facility licensed to sell alcohol beverages as provided in this section may24 purchase not more than two SEVEN thousand dollars' worth of malt,25 vinous, and spirituous liquors from retailers licensed pursuant to sections26 44-3-409, 44-3-410, and 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH27 231 -30- JANUARY 1 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST1 THE PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (2)(a) FOR2 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION3 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.4 (b) A lodging and AN entertainment facility licensee shall retain5 evidence of each purchase of malt, vinous, or spirituous liquors from a6 retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-1047 (1)(c), in the form of a purchase receipt showing the name of the licensed8 retailer, the date of purchase, a description of the alcohol beverages9 purchased, and the price paid for the alcohol beverages. The lodging and10 entertainment facility licensee shall retain the receipt and make it11 available to the state and local licensing authorities at all times during12 business hours.13 (3) (a) Except as provided in subsection (3)(b) of this section, it14 is unlawful for any owner, part owner, shareholder, or person interested15 directly or indirectly in lodging and entertainment FACILITY licenses to16 conduct, own either in whole or in part, or be directly or indirectly17 interested in any other business licensed pursuant to this article 3 or18 article 4 of this title 44.19 (b) An owner, part owner, shareholder, or person interested20 directly or indirectly in a lodging and AN entertainment FACILITY license21 may have an interest in:22 (4) (b) The manager for each lodging and LICENSED entertainment23 license FACILITY, the lodging and entertainment facility licensee, or an24 employee or agent of the lodging and entertainment facility licensee shall25 purchase alcohol beverages for one licensed premises only, and the26 purchases shall be separate and distinct from purchases for any other27 231 -31- lodging and LICENSED entertainment license FACILITY.1 (5) At the time a tavern license issued under section 44-3-414 is2 due for renewal or by one year after August 10, 2016, whichever occurs3 later, a person licensed as a tavern that does not have as its principal4 business the sale of alcohol beverages, has a valid license on August 10,5 2016, and is a lodging and entertainment facility may apply to, and the6 applicable local licensing authority shall, convert the tavern license to a7 lodging and entertainment license under this section, and the person may8 continue to operate as a lodging and entertainment facility licensee. A9 person applying to convert an existing tavern license to a lodging and10 entertainment license under this subsection (5) may apply to convert the11 license, even if the location of the licensed premises is within five12 hundred feet of any public or parochial school or the principal campus of13 any college, university, or seminary, so long as the local licensing14 authority has previously approved the location of the licensed premises15 in accordance with section 44-3-313 (1)(d).16 (6) (a) O N AND AFTER THE EFFECTIVE DATE OF THIS SUBSECTION17 (6), THE STATE OR A LOCAL LICENSING AUTHORITY SHALL NOT ISSUE OR18 RENEW ANY LICENSES UNDER THIS SECTION TO A LODGING FACILITY .19 (b) T HE STATE AND LOCAL LICENSING AUTHORITIES SHALL TREAT20 ANY APPLICATION SUBMITTED ON OR BEFORE THE EFFECTIVE DATE OF THIS21 SECTION, AS AMENDED, BY A LODGING FACILITY FOR A LODGING AND22 ENTERTAINMENT FACILITY LICENSE OR RENEWAL LICENSE AS AN23 APPLICATION FOR A LODGING FACILITY LICENSE OR RENEWAL LICENSE24 ISSUED PURSUANT TO SECTION 44-3-432.25 (c) O N THE EFFECTIVE DATE OF THIS SUBSECTION (6), EACH26 LODGING AND ENTERTAINMENT FACILITY LICENSE ISSUED UNDER THIS27 231 -32- SECTION TO A LODGING FACILITY AUTOMATICALLY C ONVERTS TO LODGING1 FACILITY LICENSE ISSUED PURSUANT TO SECTION 44-3-432.2 (d) T HE CONVERSION OF AN ENTERTAINMENT AND LODGING3 LICENSE ISSUED TO A LODGING FACILITY UNDER THIS SECTION TO A4 LODGING FACILITY LICENSE UNDER SECTION 44-3-432 PURSUANT TO THIS5 SUBSECTION (6) IS A CONTINUATION OF THE PRIOR LICENSE AND DOES NOT6 AFFECT:7 (I) A NY PRIOR DISCIPLINE, LIMITATION, OR CONDITION IMPOSED BY8 THE STATE LICENSING AUTHORITY ON A LICENSEE ;9 (II) T HE DEADLINE FOR RENEWAL OF THE LICENSE ; OR10 (III) A NY PENDING OR FUTURE INVESTIGATION OR11 ADMINISTRATIVE PROCEEDING .12 (e) T HIS SUBSECTION (6) IS REPEALED, EFFECTIVE SEPTEMBER 1,13 2026.14 (7) (a) O N THE EFFECTIVE DATE OF THIS SUBSECTION (7), EACH15 LODGING AND ENTERTAINMENT FACILITY LICENSE ISSUED UNDER THIS16 SECTION TO AN ENTERTAINMENT FACILITY AUTOMATICALLY CONVERTS TO17 AN ENTERTAINMENT FACILITY LICENSE .18 (b) T HE STATE AND LOCAL LICENSING AUTHORITIES SHALL TREAT19 ANY APPLICATION SUBMITTED ON OR BEFORE THE EFFECTIVE DATE OF THIS20 SECTION, AS AMENDED, BY AN ENTERTAINMENT FACILITY FOR A LODGING21 AND ENTERTAINMENT FACILITY LICENSE OR RENEWAL LICENSE AS AN22 APPLICATION FOR AN ENTERTAINMENT FACILITY LICENSE OR RENEWAL23 LICENSE ISSUED PURSUANT TO THIS SECTION.24 (c) T HE CONVERSION OF A L ODGING AND ENTERTAINMENT25 FACILITY LICENSE ISSUED TO AN ENTERTAINMENT FACILITY TO AN26 ENTERTAINMENT FACILITY LICENSE PURSUANT TO THIS SUBSECTION (7) IS27 231 -33- A CONTINUATION OF THE PRIOR LICENSE AND DOES NOT AFFECT :1 (I) A NY PRIOR DISCIPLINE, LIMITATION, OR CONDITION IMPOSED BY2 THE STATE LICENSING AUTHORITY ON A LICENSEE ;3 (II) T HE DEADLINE FOR RENEWAL OF THE LICENSE ; OR4 (III) A NY PENDING OR FUTURE INVESTIGATION OR5 ADMINISTRATIVE PROCEEDING .6 (d) T HIS SUBSECTION (7) IS REPEALED, EFFECTIVE SEPTEMBER 1,7 2026.8 SECTION 28. In Colorado Revised Statutes, 44-3-429, amend9 (1)(j) and (1)(k); and add (1)(l) as follows:10 44-3-429. Purchasing alcohol from a surrendered license of11 common ownership - definition. (1) This section applies to a person12 that has been issued the following license types:13 (j) Distillery pub license under section 44-3-426; or 14 (k) Lodging and Entertainment facility license under section15 44-3-428; OR16 (l) A LODGING FACILITY LICENSE UNDER SECTION 44-3-432.17 SECTION 29. In Colorado Revised Statutes, add 44-3-430,18 44-3-431, and 44-3-432 as follows:19 44-3-430. Alcohol beverage shipper license for wine direct20 shipping - rules. (1) E FFECTIVE JANUARY 1, 2026, THE STATE LICENSING21 AUTHORITY MAY ISSUE AN ALCOHOL BEVERAGE SHIPPER LICENSE TO AN22 ALCOHOL BEVERAGE SHIPPER THAT SHIPS VI NOUS LIQUORS FOR A LICENSED23 WINERY THAT HOLDS A WINERY DIRECT SHIPPER 'S PERMIT PURSUANT TO24 SECTION 44-3-104.25 (2) A DRIVER DELIVERING ON BEHALF OF AN ALCOHOL BEVERAGE26 SHIPPER LICENSE SHALL NOT LE AVE A PACKAGE UNATTENDED ON A27 231 -34- DOORSTEP AND SHALL CHECK THE RECIPIENT 'S IDENTIFICATION TO ENSURE1 THAT THE INDIVIDUAL ACCEPTING DELIVERY IS THE INDIVI DUAL INTENDED2 TO RECEIVE THE PRODUCT AND IS NOT UNDER TWENTY -ONE YEARS OF AGE3 OR VISIBLY INTOXICATED.4 (3) I F AN ALCOHOL BEVERAGE SHIPPER VIOLATES THIS SECTION ,5 THE STATE LICENSING AUTHORITY SHALL BRING ACTION AGAINST THE6 ALCOHOL BEVERAGE SHIPPER 'S LICENSE.7 (4) T HE STATE LICENSING AUTHORITY SHALL ADOPT RULES8 NECESSARY TO ADMINISTER AND ENFORCE THIS SECTION .9 44-3-431. Catering license - permitted events - private events10 - fees - rules. (1) E FFECTIVE JANUARY 1, 2026, THE STATE LICENSING11 AUTHORITY MAY ISSUE A CATERING LICENSE TO A CATERING COMPANY12 THAT ALLOWS THE CATERING LICENSEE TO APPLY FOR TEMPORARY13 PERMITS TO SELL AND SERVE ALCOHOL BEVERAGES ON UNLICENSED14 PREMISES AT CATERED EVENTS. THE CATERING LICENSE IS VALID FOR ONE15 CALENDAR YEAR AND RENEWED ON AN ANNUAL BASIS .16 (2) (a) T HE STATE LICENSING AUTHORITY SHALL ESTABLISH A17 PROCESS FOR A CATERING LICENSEE TO OBTAIN A PERMIT TO CATER AN18 EVENT THAT MAY BE ATTENDED BY SIX HUNDRED OR MORE INDIVIDUALS .19 T HE STATE LICENSING AUTHORITY MAY ESTABLISH A PROCESS FOR A20 CATERING LICENSEE TO OBTAIN A PERMIT TO CATER AN EVENT THAT MAY21 BE ATTENDED BY FEWER THAN SIX HUNDRED INDIVIDUALS .22 (b) A LOCAL LICENSING AUTHORITY MAY ESTABLISH A PROCESS23 FOR A CATERING LICENSEE TO OBTAIN A PERMIT TO CATER AN EVENT THAT24 MAY BE ATTENDED BY SIX HUNDRED OR MORE INDIVIDUALS . IF A LOCAL25 LICENSING AUTHORITY DOES NOT ESTABLISH A LOCAL CATERING PERMIT ,26 AN APPLICANT NEED NOT OBTAIN A CATERING PERMIT FROM THE LOCAL27 231 -35- LICENSING AUTHORITY.1 (3) T HE STATE LICENSING AUTHORITY SHALL ESTABLISH AND2 MAINTAIN, ON THE LIQUOR ENFORCEMENT DIVISION 'S PUBLIC-FACING3 WEBSITE, A LISTING OF ALL CATERING LICENSES IN THE STATE. A CATERING4 LICENSEE SHALL SUBMIT INFORMATION REQUIRED BY THE STATE5 LICENSING AUTHORITY IN RULE.6 (4) A CATERING LICENSEE SHALL NOT PERMIT AN INDIVIDUAL WHO 7 IS EIGHTEEN YEARS OF AGE OR OLDER AND UNDER TWENTY-ONE YEARS OF8 AGE TO SELL, DISPENSE, OR PARTICIPATE IN THE SALE OR DISPENSING OF AN9 ALCOHOL BEVERAGE, UNLESS THE INDIVIDUAL IS SUPERVISED BY ANOTHER10 INDIVIDUAL WHO IS ON THE UNLICENSED PREMISES AND IS TWENTY -ONE11 YEARS OF AGE OR OLDER.12 (5) T HE STATE LICENSING AUTHORITY MAY ADOPT RULES13 NECESSARY TO IMPLEMENT AND ADMINISTER THIS SECTION .14 44-3-432. Lodging facility license - rules. (1) T HE STATE15 LICENSING AUTHORITY MAY ISSUE A LODGING FACILITY LICENSE TO A16 LODGING FACILITY THAT SELLS ALCOHOL BEVERAGES BY THE DRINK ONLY17 TO CUSTOMERS FOR CONSUMPTION ON THE LICENSED PREMISES . A18 LODGING FACILITY'S LICENSED PREMISES DOES NOT INCLUDE THE19 FACILITY'S SLEEPING ROOMS. A LODGING FACILITY LICENSEE SHALL NOT20 PERMIT ALCOHOL BEVERAGES TO BE PURCHASED IN A SLEEPING ROOM ,21 SERVE OR DELIVER ALCOHOL BEVERAGES TO A SLEEPING ROOM , OR ALLOW22 A MINIBAR, AS DEFINED IN SECTION 44-3-413 (4)(b), IN A SLEEPING ROOM.23 (2) (a) A LODGING FACILITY LICENSED TO SELL ALCOHOL24 BEVERAGES AS PROVIDED IN THIS SECTION SHALL PURCHASE ALCOHOL25 BEVERAGES ONLY FROM A WHOLESALER LICENSED PURSUANT TO THIS26 ARTICLE 3; EXCEPT THAT, DURING A CALENDAR YEAR, A LODGING FACILITY27 231 -36- LICENSED TO SELL ALCOHOL BEVERAGES AS PROVIDED IN THIS SECTION1 MAY PURCHASE NOT MORE THAN SEVEN THOUSAND DOLLARS' WORTH OF2 MALT, VINOUS, AND SPIRITUOUS LIQUORS FROM RETAILERS LICENSED3 PURSUANT TO SECTIONS 44-3-409, 44-3-410, AND 44-4-104 (1)(c). ON4 J ANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE5 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION6 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH7 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR8 ENFORCEMENT DIVISION'S WEBSITE.9 (b) A LODGING FACILITY LICENSEE SHALL RETAIN EVIDENCE OF10 EACH PURCHASE OF MALT , VINOUS, OR SPIRITUOUS LIQUORS FROM A11 RETAILER LICENSED PURSUANT TO SECTION 44-3-409, 44-3-410, OR12 44-4-104 (1)(c) IN THE FORM OF A PURCHASE RECEIPT SHOWING THE NAME13 OF THE LICENSED RETAILER, THE DATE OF PURCHASE, A DESCRIPTION OF14 THE ALCOHOL BEVERAGES PURCHASED , AND THE PRICE PAID FOR THE15 ALCOHOL BEVERAGES. THE LODGING FACILITY LICENSEE SHALL RETAIN16 THE RECEIPT AND MAKE IT AVAILABLE TO THE STATE AND LOCAL17 LICENSING AUTHORITIES AT ALL TIMES DURING BUSINESS HOURS .18 (3) (a) E XCEPT AS PROVIDED IN SUBSECTION (3)(b) OF THIS19 SECTION, IT IS UNLAWFUL FOR ANY OWNER, PART OWNER, SHAREHOLDER,20 OR PERSON INTERESTED DIRECTLY OR INDIRECTLY IN LODGING FACILITY21 LICENSES TO CONDUCT, OWN EITHER IN WHOLE OR IN PART , OR BE22 DIRECTLY OR INDIRECTLY INTERESTED IN ANY OTHER BUSINESS LICENSED23 PURSUANT TO THIS ARTICLE 3 OR ARTICLE 4 OF THIS TITLE 44.24 (b) A N OWNER, PART OWNER, SHAREHOLDER, OR PERSON25 INTERESTED DIRECTLY OR INDIRECTLY IN A LODGING FACILITY LICENSE26 MAY HAVE AN INTEREST IN:27 231 -37- (I) A LICENSE DESCRIBED IN SECTION 44-3-401 (1)(j) TO (1)(t),1 (1)(v), OR (1)(w); 44-3-412 (1); OR 44-4-104 (1)(c); OR2 (II) A FINANCIAL INSTITUTION REFERRED TO IN SECTION 44-3-3083 (4).4 (4) T HE MANAGER FOR EACH LICENSED LODGING FACILITY , THE5 LODGING FACILITY LICENSEE, OR AN EMPLOYEE OR AGENT OF THE LODGING6 FACILITY LICENSEE SHALL PURCHASE ALCOHOL BEVERAGES FOR ONE7 LICENSED PREMISES ONLY, AND THE PURCHASES SHALL BE SEPARATE AND8 DISTINCT FROM PURCHASES FOR ANY OTHER LICENSED LODGING FACILITY .9 (5) T HE STATE LICENSING AUTHORITY MAY ADOPT RULES10 NECESSARY TO IMPLEMENT AND ADMINISTER THIS SECTION .11 SECTION 30. In Colorado Revised Statutes, 44-3-501, amend12 (1) introductory portion, (1)(v), and (3)(a)(XVIII); repeal (1)(t); and add13 (1)(x), (3)(a)(XX), (3)(a)(XXI), (3)(a)(XXII), (3)(a)(XXIII), and (3)(e) as14 follows:15 44-3-501. State fees - rules. (1) The AN applicant shall pay the16 following license and permit fees to the department annually in advance:17 (t) For each retail establishment permit, up to two hundred dollars;18 (v) For each lodging and entertainment FACILITY license,19 seventy-five dollars;20 (x) F OR EACH LODGING FACILITY LICENSE , SEVENTY-FIVE21 DOLLARS.22 (3) (a) The state licensing authority shall establish fees for23 processing the following types of applications, notices, or reports required24 to be submitted to the state licensing authority:25 (XVIII) Applications for the renewal of a license or permit issued26 in accordance with this article 3; and 27 231 -38- (XX) APPLICATIONS FOR RETAIL ESTABLISHMENT PERMITS1 PURSUANT TO SECTION 44-3-424 AND RULES ADOPTED PURSUANT TO THAT2 SECTION;3 (XXI) A PPLICATIONS FOR A CATERING LICENSE AND CATERING4 PERMIT PURSUANT TO SECTION 44-3-431 AND RULES ADOPTED PURSUANT 5 TO THAT SECTION;6 (XXII) A PPLICATIONS FOR EACH NONCONTI GUOUS7 MANUFACTURING FACILITY PURSUANT TO SECTION 44-3-402 AND RULES 8 ADOPTED PURSUANT TO THAT SECTION ; AND9 (XXIII) A PPLICATIONS FOR AN ALCOHOL BEVERAGE SHIPPER10 LICENSE PURSUANT TO SECTION 44-3-430 AND RULES ADOPTED PURSUANT 11 TO THAT SECTION.12 (e) (I) T HE STATE LICENSING AUTHORITY MAY CHARGE A LICENSEE13 AN INVESTIGATIVE FEE, IN ADDITION TO ANY FINES OR PENALTIES THAT14 MAY BE IMPOSED FOR A VIOLATION, FOR:15 (A) A COMPLEX OR FELONY INVESTIGATION ;16 (B) A N INVESTIGATION THAT RELATES TO PUBLIC HEALTH, SAFETY,17 OR WELFARE AS SPECIFIED BY THE STATE LICENSING AUTHORITY BY RULE ;18 OR19 (C) A N INVESTIGATION WHERE THE LICENSEE HAS ADMITTED GUILT20 IN A STIPULATION, AGREEMENT, AND ORDER.21 (II) (A) A N INVESTIGATIVE FEE MAY INCLUDE THE TIME , ON A22 PER-HOUR BASIS, THAT A CRIMINAL INVESTIGATOR SPENT INVESTIGATING23 A VIOLATION AND TESTIFYING AT AN ADMINISTRATIVE HEARING24 ASSOCIATED WITH THE VIOLATION.25 (B) T O RECOVER THE COST OF THE INVESTIGATOR 'S TIME26 PURSUANT TO THIS SUBSECTION (3)(e), THE STATE LICENSING AUTHORITY27 231 -39- SHALL PROVIDE TIME TRACKING FOR THE FEE , WITHOUT DISCLOSING ANY1 INFORMATION INVOLVING CONFIDENTIAL ATTORNEY -CLIENT2 COMMUNICATIONS.3 (C) T HE STATE LICENSING AUTHORITY SHALL SET THE HOURLY4 RATE FOR INVESTIGATIVE WORK BY RULE .5 (III) T HE STATE LICENSING AUTHORITY SHALL NOT SEEK6 INVESTIGATIVE FEES:7 (A) F OR A ROUTINE COMPLIANCE CHECK BY THE STATE LICENSING8 AUTHORITY, INCLUDING THE TIME SPENT BY A MINOR WHO ASSISTS THE9 STATE LICENSING AUTHORITY IN THE COMPLIANCE CHECK ;10 (B) B ASED ON A VOLUNTARY DISCLOSURE FROM A LICENSEE TO11 THE STATE LICENSING AUTHORITY; OR12 (C) F OR TIME SPENT BY AN INVESTIGATOR TO PREPARE TO TESTIFY13 AT A HEARING FOR THE VIOLATION.14 (IV) A LICENSEE CHARGED AN INVESTIGATIVE FEE MAY15 CHALLENGE THE REASONABLENESS OF THE FEE AT AN ADMINISTRATIVE16 HEARING.17 (V) A N INVESTIGATIVE FEE COLLECTED PURSUANT TO THIS18 SUBSECTION (3)(e) SHALL BE DEPOSITED INTO THE LIQUOR ENFORCEMENT19 DIVISION AND STATE LICENSING AUTHORITY CASH FUND CREATED IN20 SECTION 44-6-101.21 (VI) T HE STATE LICENSING AUTHORITY MAY ADOPT RULES22 NECESSARY TO IMPLEMENT THIS SUBSECTION (3)(e).23 SECTION 31. In Colorado Revised Statutes, 44-3-505, amend24 (1)(p); and add (1)(r) as follows:25 44-3-505. Local license fees. (1) The applicant shall pay the26 following license fees to the treasurer of the municipality, city and27 231 -40- county, or county where the licensed premises is located annually in1 advance:2 (p) For each lodging and entertainment FACILITY license, five3 hundred dollars;4 (r) F OR EACH LODGING FACILITY LICENSE , FIVE HUNDRED5 DOLLARS.6 SECTION 32. In Colorado Revised Statutes, 44-3-601, amend7 (1)(a); and add (10) as follows:8 44-3-601. Suspension - revocation - annual renewal - fines -9 investigative fees - rules. (1) (a) (I) Subject to subsection (8) of this10 section, in addition to any other penalties prescribed by this article 3 or11 article 4 or 5 of this title 44, the state or any local licensing authority has12 the power, on its own motion or on complaint, after investigation and13 public hearing at which the licensee shall be afforded an opportunity to14 be heard, to TAKE ANY OF THE FOLLOWING ACTIONS FOR ANY VIOLATION15 BY A LICENSEE, OR BY ANY OF THE AGENTS, SERVANTS, OR EMPLOYEES OF16 THE LICENSEE, OF THIS ARTICLE 3, ANY RULES AUTHORIZED BY THIS17 ARTICLE 3, OR ANY OF THE TERMS, CONDITIONS, OR PROVISIONS OF THE18 LICENSE OR PERMIT ISSUED BY SUCH AUTHORITY :19 (A) Fine a licensee; or to 20 (B) R EQUIRE ANNUAL RENEWAL OF A LICENSE ; OR21 (C) Suspend or revoke, in whole or in part, any license or permit22 issued by such authority. for any violation by the licensee or by any of the 23 agents, servants, or employees of the licensee of this article 3; any rules24 authorized by this article 3; or any of the terms, conditions, or provisions25 of the license or permit issued by such authority.26 (II) A licensing authority may impose a fine pursuant to this27 231 -41- subsection (1) regardless of whether a licensee has petitioned the1 licensing authority pursuant to subsection (3)(a) of this section for2 permission to pay a fine in lieu of license or permit suspension, and the3 licensing authority need not make the findings specified in subsections4 (3)(a)(I) and (3)(a)(II) of this section.5 (10) (a) I F A LICENSEE WITH A BIENNIAL LICENSE IS FOUND TO6 HAVE VIOLATED THIS ARTICLE 3, THE STATE LICENSING AUTHORITY SHALL7 REQUIRE THE LICENSEE TO RENEW ITS LICENSE ANNUALLY .8 (b) A LICENSEE MAY REAPPLY TO RENEW ITS LICENSE BIENNIALLY9 PURSUANT TO SECTION 44-3-302 (3) AFTER TWO YEARS WITHOUT ANY10 VIOLATIONS.11 SECTION 33. In Colorado Revised Statutes, 44-3-901, amend12 (6)(b)(II), (6)(c), (6)(i)(I), and (6)(p)(II); and add (6)(q) as follows:13 44-3-901. Unlawful acts - exceptions - definitions. (6) It is14 unlawful for any person licensed to sell at retail pursuant to this article 315 or article 4 of this title 44:16 (b) To sell, serve, or distribute any malt, vinous, or spirituous17 liquors at any time other than the following:18 (II) In sealed containers, beginning at 8 a.m. until 12 midnight19 each day; except that no malt, vinous, or spirituous liquors shall be sold, 20 served, or distributed in a sealed container on Christmas day;21 (c) To sell fermented malt beverages:22 (I) To any person under the age of twenty-one years OF AGE,23 except as provided in section 18-13-122; OR24 (II) To any person between the hours of 12 midnight and 8 a.m.;25 or 26 (III) In a sealed container on Christmas day;27 231 -42- (i) (I) To sell malt, vinous, or spirituous liquors or fermented malt1 beverages in a place where the alcohol beverages are to be consumed,2 unless the place is a hotel, A restaurant, A tavern, lodging and AN3 entertainment facility, A LODGING FACILITY, A racetrack, A club, A retail4 gaming tavern, or AN arts licensed premises or unless the place is a5 dining, club, or parlor car; A plane; A bus; or other conveyance or facility6 of a public transportation system.7 (p) (II) If licensed as a tavern under section 44-3-414 that does not8 regularly serve meals or a lodging and AN entertainment facility under9 section 44-3-428 that does not regularly serve meals, to permit an10 employee who is under twenty-one years of age to sell malt, vinous, or11 spirituous liquors; or12 (q) T O KNOWINGLY PERMIT THE ILLEGAL SALE , OR NEGOTIATIONS13 FOR THE SALE, OF A CONTROLLED SUBSTANCE , AS DEFINED IN SECTION14 18-18-102 (5), ON THE LICENSEE'S LICENSED PREMISES. THIS SUBSECTION15 (6)(q) DOES NOT PROHIBIT A PHARMACY LICENSED BY THE STATE BOARD16 OF PHARMACY TO SELL LAWFULLY PRESCRIBED CONTROLLED SUBSTANCES17 AT A LIQUOR-LICENSED DRUGSTORE.18 SECTION 34. In Colorado Revised Statutes, 44-3-911, amend19 (6)(a)(I) and (6)(a)(II) as follows:20 44-3-911. Takeout and delivery of alcohol beverages - permit21 - on-premises consumption licenses - requirements and limitations -22 rules - definition - repeal. (6) (a) (I) This section authorizes a license23 holder that is issued a license under one of the following sections to sell24 an alcohol beverage to a customer for consumption off of the licensed25 premises: Section 44-3-402 that operates a sales room or section 44-3-40726 that operates a sales room or section 44-3-411, 44-3-413, 44-3-414,27 231 -43- 44-3-417, 44-3-418, 44-3-422, 44-3-426, 44-3-428, 44-3-432, 44-4-1041 (1)(c)(I)(A), or 44-4-104 (1)(c)(III).2 (II) This section authorizes a license holder that is issued a license3 under one of the following sections to deliver an alcohol beverage to a4 customer for consumption off of the licensed premises: Section 44-3-411,5 44-3-412, 44-3-413, 44-3-414, 44-3-415, 44-3-416, 44-3-417, 44-3-418,6 44-3-419, 44-3-420, 44-3-421, 44-3-422, 44-3-426, or 44-3-428, OR7 44-3-432.8 SECTION 35. Appropriation. For the 2024-25 state fiscal year,9 $5,000 is appropriated to the department of revenue for use by the liquor10 and tobacco enforcement division. This appropriation is from the liquor11 enforcement division and state licensing authority cash fund created in12 section 44-6-101, C.R.S. To implement this act, the division may use this13 appropriation for operating expenses.14 SECTION 36. Act subject to petition - effective date. This act15 takes effect at 12:01 a.m. on the day following the expiration of the16 ninety-day period after final adjournment of the general assembly; except17 that, if a referendum petition is filed pursuant to section 1 (3) of article V18 of the state constitution against this act or an item, section, or part of this19 act within such period, then the act, item, section, or part will not take20 effect unless approved by the people at the general election to be held in21 November 2024 and, in such case, will take effect on the date of the22 official declaration of the vote thereon by the governor.23 231 -44-