Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 24-1176.01 Yelana Love x2295 SENATE BILL 24-231 Senate Committees House Committees Finance Finance Appropriations 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, HOUSE Amended 2nd Reading May 7, 2024 SENATE 3rd Reading Unamended May 7, 2024 SENATE Amended 2nd Reading May 4, 2024 SENATE SPONSORSHIP Rodriguez and Gardner, Van Winkle 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. A LOCAL LICENSING20 AUTHORITY MAY deny the issuance of any new tavern or retail liquor store21 license whenever such authority determines that the issuance of the22 license would result in or add to an undue concentration of the same class23 of license and, as a result, require the use of additional law enforcement24 resources.25 (d) T HE STATE LICENSING AUTHORITY SHALL APPROVE THE26 PROPOSED PREMISES FOR A DISTILLERY APPLYING PURSUANT TO SECTION27 231 -7- 44-3-402, WHICH PREMISES INCLUDES UP TO TWO NONCONTIGUOUS1 LOCATIONS USED FOR MANUFACTURING SPIRITUOUS LIQUORS , OR A2 MODIFICATION OF THE LICENSED PREMISES OF A DISTILLERY LICENSED3 PURSUANT TO SECTION 44-3-402 TO INCLUDE UP TO TWO NONCONTIGUOUS4 LOCATIONS USED FOR MANUFACTURING SPIRITUOUS LIQUORS , IF THE5 ALCOHOL AND TOBACCO TAX AND TRADE BUREAU OF THE UNITED STATES6 DEPARTMENT OF THE TREASURY HAS APPROVED THE DESCRIPTION AND7 DIAGRAM OF THE PROPOSED OR MODIFIED PREMISES . ADDITIONALLY, WITH8 THE INITIAL LICENSE APPLICATION THAT INCLUDES NONCONTIGUOUS9 LOCATIONS WITHIN THE PROPOSED PREMISES OR A SUBSEQUENT10 APPLICATION TO MODIFY THE PREMISES TO INCLUDE NONCONTIGUOUS11 LOCATIONS, THE LICENSEE SHALL SUBMIT PROOF FROM THE LOCAL12 LICENSING AUTHORITY IN WHICH THE PREMISES IS LOCATED OF13 COMPLIANCE WITH ALL APPLICABLE ZONING , BUILDING, FIRE, AND OTHER14 REQUIREMENTS FOR OCCUPANCY AND OPERATION . THE STATE LICENSING15 AUTHORITY MAY, BY RULE, ESTABLISH A ONE-TIME APPLICATION FEE AND16 AN ANNUAL RENEWAL FEE , NEITHER OF WHICH MAY EXCEED FIVE17 HUNDRED DOLLARS PER LOCATION , FOR APPLICATIONS UNDER THIS18 SUBSECTION (2)(d).19 (e) T HE STATE LICENSING AUTHORITY SHALL APPROVE THE20 PROPOSED PREMISES FOR A BREWERY APPLYING PURSUANT TO SECTION21 44-3-402, WHICH PREMISES INCLUDES UP TO TWO NONCONTIGUOUS22 LOCATIONS USED FOR MANUFACTURING MALT LI QUORS , OR A23 MODIFICATION OF THE LICENSED PREMISES OF A BREWERY LICENSED24 PURSUANT TO SECTION 44-3-402 TO INCLUDE UP TO TWO NONCONTIGUOUS25 LOCATIONS USED FOR MANUFACTURING MALT LIQUORS , IF THE ALCOHOL26 AND TOBACCO TAX AND TRADE BUREAU OF THE UNITED STATES27 231 -8- DEPARTMENT OF THE TREASURY HAS APPROVED THE DESCRIPTION AND1 DIAGRAM OF THE PROPOSED OR MODIFIED PREMISES . ADDITIONALLY, WITH2 THE INITIAL LICENSE APPLICATION THAT INCLUDES NONCONTIGUOUS3 LOCATIONS WITHIN THE PROPOSED PREMISES OR A SUBSEQUENT4 APPLICATION TO MODIFY THE PREMISES TO INCLUDE NONCONTIGUOUS5 LOCATIONS, THE LICENSEE SHALL SUBMIT PROOF FROM THE LOCAL6 LICENSING AUTHORITY IN WHICH THE PREMISES IS LOCATED OF7 COMPLIANCE WITH ALL APPLICABLE ZONING , BUILDING, FIRE, AND OTHER8 REQUIREMENTS FOR OCCUPANCY AND OPERATION . THE STATE LICENSING9 AUTHORITY MAY, BY RULE, ESTABLISH A ONE-TIME APPLICATION FEE AND10 AN ANNUAL RENEWAL FEE , NEITHER OF WHICH MAY EXCEED FIVE11 HUNDRED DOLLARS PER LOCATION , FOR APPLICATIONS UNDER THIS12 SUBSECTION (2)(e).13 (3) (a) (II) For purposes of this section, each of the following is14 considered a single business and location:15 (E) A winery OR LIMITED WINERY licensed pursuant to section16 44-3-402 or 44-3-403 that has noncontiguous locations included in the17 licensed premises; and 18 (F) A festival at which more than one licensee participates19 pursuant to a festival permit. A BREWERY LICENSED PURSUANT TO20 SECTION 44-3-402 THAT HAS NONCONTIGUOUS LOCATIONS INCLUDED IN21 THE LICENSED PREMISES;22 (G) A DISTILLERY LICENSED PURSUANT TO SECTION 44-3-402 THAT23 HAS NONCONTIGUOUS LOCATIONS INCLUDED IN THE LICENSED PREMISES ;24 AND25 (H) A FESTIVAL AT WHICH MORE THAN ONE LICENSEE26 PARTICIPATES PURSUANT TO A FESTIVAL PERMIT .27 231 -9- (8) Each licensee holding a fermented malt beverage AND WINE1 on-premises license or on- and off-premises license, beer and wine2 license, hotel and restaurant license, LODGING FACILITY LICENSE, tavern3 license, lodging and entertainment FACILITY license, club license, arts4 license, or racetrack license shall manage the premises himself or herself5 or employ a separate and distinct manager on the premises and shall6 report the name of the manager to the state and local licensing authorities.7 The licensee shall report any change in managers to the state and local8 licensing authorities within thirty days after the change. When a hotel and9 restaurant, LODGING FACILITY, tavern, or lodging and entertainment10 FACILITY licensee reports a change in manager to the state and local11 licensing authority AUTHORITIES, the licensee shall pay:12 (10) (c) Tastings are subject to the following limitations:13 (V) The licensee may conduct tastings only during the operating14 hours in which the licensee on whose premises the tastings occur is15 permitted to sell alcohol beverages, and in no case earlier than 11 a.m. 1016 a.m. or later than 9 p.m.17 (g) (I) A N OFF-PREMISES RETAILER MAY CONDUCT A TASTING OF18 ALCOHOL BEVERAGES FROM THE OFF -PREMISES RETAIL LICENSEE'S19 EXISTING INVENTORY.20 21 (II) OFF-PREMISES RETAILERS MAY HOLD TASTINGS , SUBJECT TO22 RESTRICTIONS AS TO THE SERVING SIZE OF ANY ONE SAMPLE AND OVERALL23 TOTAL AMOUNTS OF ALL ALCOHOL BEVERAGES THAT ARE TASTED . THE24 TOTAL AMOUNT OF ALCOHOL BEVERAGES TO BE SAMPLED AT A TASTING25 SHALL BE LIMITED TO, REGARDLESS OF THE NUMBER OF ITEMS BEING26 TASTED, NOT MORE THAN FOUR OUNCES OF MALT LIQUOR , FOUR OUNCES27 231 -10- OF VINOUS LIQUOR, AND TWO OUNCES OF SPIRITUOUS LIQUOR PER1 CUSTOMER PER DAY.2 (11) (c) (II) An association or licensed tavern, lodging and3 entertainment facility, LODGING FACILITY, hotel and restaurant, brew pub,4 distillery pub, retail gaming tavern, vintner's restaurant, beer and wine5 licensee, manufacturer or beer wholesaler that operates a sales room, or6 limited winery that wishes to create a promotional association may submit7 an application to the local licensing authority. To qualify for certification,8 the promotional association must:9 (d) A person shall not attach a premises licensed under this article10 3 to a common consumption area unless authorized by the local licensing11 authority. Any noncontiguous location included in the licensed premises12 of a winery, LIMITED WINERY, DISTILLERY, OR BREWERY licensed pursuant13 to section 44-3-402 or 44-3-403 that falls outside the approved14 boundaries of an entertainment district or a common consumption area15 authorized pursuant to this subsection (11) shall not be included as part16 of a certified promotional association or entertainment district even17 though the licensed premises of that winery, LIMITED WINERY,18 DISTILLERY, OR BREWERY is within the entertainment district.19 (e) (I) A licensed tavern, lodging and entertainment facility,20 LODGING FACILITY, hotel and restaurant, brew pub, distillery pub, retail21 gaming tavern, vintner's restaurant, beer and wine licensee, manufacturer22 or beer wholesaler that operates a sales room, limited winery, or optional23 premises that wishes to attach to a common consumption area may submit24 an application to the local licensing authority. To qualify, the licensee25 must include a request for authority to attach to the common consumption26 area from the certified promotional association of the common27 231 -11- consumption area unless the promotional association does not exist when1 the application is submitted. If so THE PROMOTIONAL ASSOCIATION EXISTS2 WHEN THE APPLICATION IS SUBMITTED , the applicant shall request the3 authority when a promotional association is certified and shall4 demonstrate to the local licensing authority that the authority has been5 obtained by the time the applicant's license issued under this article 3 is6 renewed.7 (13) (a) A PERSON LICENSED PURSUANT TO SECTION 44-3-409 MAY8 HOLD EDUCATIONAL CLASSES PURSUANT TO THIS SUBSECTION (13) AND9 MAY CHARGE A FEE FOR THE EDUCATIONAL CLASSES IT HOLDS ; EXCEPT10 THAT THE LICENSEE SHALL NOT CHARGE A FEE BY THE DRINK .11 (b) A LICENSEE AUTHORIZED UNDER THIS SUBSECTION (13) TO12 HOLD EDUCATIONAL CLASSES SHALL NOT ALLOW CLASS PARTICIPANTS TO13 PARTICIPATE IN ANY OTHER TASTING EVENTS ON THE LICENSED PREMISES14 HELD ON THE SAME DAY AND SHALL IMPLEMENT A MEANS OF TRACKING15 HOW MANY SAMPLES EACH CLASS PARTICIPANT IS PROVIDED , WHICH MAY16 INCLUDE THE USE OF A WRISTBAND OR OTHER MEANS OF ACCURATELY17 TRACKING AN INDIVIDUAL CLASS PARTICIPANT 'S CONSUMPTION.18 (c) I N ORDER TO TEACH AN EDUCATIONAL CLASS PURS UANT TO19 THIS SUBSECTION (13), A CLASS INSTRUCTOR MUST HAVE SUCCESSFULLY20 COMPLETED THE RESPONSIBLE ALCOHOL BEVERAGE VENDOR TRAINING21 PROVIDED IN SECTION 44-3-1002.22 (d) N OTWITHSTANDING ANY LAW TO THE CONTRARY , A23 WHOLESALER OR MANUFACTURER MAY PROVIDE ALCOHOL BEVERAGES24 FOR AN EDUCATIONAL CLASS HELD BY A LICENSEE PURS UANT TO THIS25 SUBSECTION (13). SUCH ALCOHOL BEVERAGES MUST BE USED ONLY FOR26 THE SPECIFIC EDUCATIONAL CLASS FOR WHICH THE ALCOHOL BEVERAGES27 231 -12- WERE PROVIDED. A WHOLESALER OR MANUFACTURER THAT PROVIDES1 ALCOHOL BEVERAGES FOR AN EDUCATIONAL CLASS SHALL REMOVE ALL2 UNOPENED PRODUCTS THAT REMAIN AT THE END OF THE CLASS . OPENED,3 UNFINISHED ALCOHOL BEVERAGES MAY BE USED BY THE LICENSEE ONLY4 AT A FUTURE EDUCATIONAL CLASS AND MUST BE LOCKED UP OFF THE5 SALES FLOOR.6 (e) T HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES7 ESTABLISHING SAMPLE SIZE LIMITS AND TOTAL VOLUME LIMITS FOR8 EDUCATIONAL CLASSES HELD PURSUANT TO THIS SUBSECTION (13).9 SECTION 4. In Colorado Revised Statutes, 44-3-302, amend10 (1)(a), (2)(b), (2)(d)(I), and (2)(d)(VIII); and add (3) as follows:11 44-3-302. License renewal - rules. (1) (a) Ninety days before the12 expiration date of an existing license, the state licensing authority AND,13 FOR LICENSES ISSUED BY A LOCAL LICENSING AUTHORITY , THE LOCAL14 LICENSING AUTHORITY shall notify the licensee of the expiration date by15 any method reasonably likely to actually notify the licensee. The state16 licensing authority shall promulgate rules setting the procedure FOR THE17 STATE LICENSING AUTHORITY to notify a licensee in accordance with this18 subsection (1)(a).19 (2) (b) A state or local licensing authority shall not accept a late20 renewal application more than ninety days after the expiration of a21 licensee's permanent annual OR BIENNIAL license. Any A licensee whose22 permanent annual OR BIENNIAL license has been expired for more than23 ninety days must apply for a new license pursuant to section 44-3-311 or24 a reissued license pursuant to subsection (2)(d) of this section.25 (d) (I) Notwithstanding subsection (2)(b) of this section, with the26 permission of the licensing authority, a licensee whose permanent annual27 231 -13- OR BIENNIAL license has been expired for more than ninety days but less1 than one hundred eighty days may submit to the local licensing authority,2 or to the state licensing authority in the case of a licensee whose alcohol3 beverage license is not subject to issuance or approval by a local licensing4 authority, an application for a reissued license. The licensing authority5 has the sole discretion to determine whether to allow a licensee to apply6 for a reissued license.7 (VIII) (A) E XCEPT AS PROVIDED IN SUBSECTION (2)(d)(VIII)(B) OF8 THIS SECTION, if the state licensing authority approves the reissuance OF9 A LICENSE, the licensee will maintain MAINTAINS the same license period10 dates as if the license had been renewed prior to the expiration date.11 (B) I F THE STATE LICENSING AUTHORITY APPROVES THE12 REISSUANCE OF AN EXPIRED LICENSE THAT WAS A BIENNIAL LICENSE , THE13 STATE LICENSING AUTHORITY MUST REISSUE AN ANNUAL LICENSE INSTEAD14 OF A BIENNIAL LICENSE.15 (3) (a) A PERSON LICENSED SOLELY BY THE STATE LICENSING16 AUTHORITY PURSUANT TO THIS ARTICLE 3 OR ARTICLE 4 OF THIS TITLE 4417 AND IN GOOD STANDING WITH THE STATE LICENSING AUTHORITY MAY FILE18 AN APPLICATION WITH THE STATE LICENSING AUTHORITY TO RENEW THE19 LICENSE FOR A TWO-YEAR PERIOD. A PERSON LICENSED BY BOTH THE20 STATE AND LOCAL LICENSING AUTHORITIES PURSUANT TO THIS ARTICLE 321 OR ARTICLE 4 OF THIS TITLE 44 AND IN GOOD STANDING WITH BOTH THE22 STATE LICENSING AUTHORITY AND A LOCAL LICENSING AUTHORITY MAY23 FILE AN APPLICATION AS SPECIFIED IN SUBSECTION (1)(b) OF THIS SECTION24 TO RENEW THE LICENSE FOR A TWO-YEAR PERIOD.25 (b) A LICENSEE GRANTED A BIENNIAL LICENSE PURSUANT TO THIS26 SUBSECTION (3) SHALL PAY THE APPLICABLE FEE REQUIRED BY SECTIONS27 231 -14- 44-3-501 (1) AND (3) AND 44-3-505 (1) ANNUALLY AS FOLLOWS:1 (I) T HE FIRST PAYMENT MUST BE SUBMITTED WITH THE2 APPLICATION TO RENEW THE LICENSE FOR A TWO -YEAR PERIOD; AND3 (II) T HE SECOND PAYMENT MUST BE SUBMITTED BY A DATE4 SPECIFIED BY THE STATE LICENSING AUTHORITY THAT IS TWELVE MONTHS5 AFTER THE BIENNIAL LICENSE APPLICATION IS FILED.6 (c) THIS SUBSECTION (3) APPLIES TO LICENSES ISSUED BY A LOCAL7 LICENSING AUTHORITY ONLY IF THE GOVERNING BODY OF THE COUNTY,8 CITY AND COUNTY, OR MUNICIPALITY WITH JURISDICTION OVER THE LOCAL9 LICENSING AUTHORITY ADOPTS AN ORDINANCE OR RESOLUTION10 AUTHORIZING THE ISSUANCE OF BIENNIAL LICENSES .11 (d) THE STATE LICENSING AUTHORITY SHALL ADOPT RULES12 NECESSARY TO IMPLEMENT AND ADMINISTER THIS SUBSECTION (3).13 SECTION 5. In Colorado Revised Statutes, 44-3-303, amend14 (1)(b) as follows:15 44-3-303. Transfer of ownership and temporary permits.16 (1) (b) When a license has been issued to a husband and wife SPOUSES,17 PARTNERS IN A CIVIL UNION, or to general or limited partners, the death of18 a spouse or partner shall DOES not require the surviving spouse or partner19 to obtain a new license. All rights and privileges granted under the20 original license shall continue in full force and effect as to such THE21 survivors for the balance of the license period.22 SECTION 6. In Colorado Revised Statutes, 44-3-309, amend23 (1)(n); and add (1)(o) as follows:24 44-3-309. Local licensing authority - applications - optional25 premises licenses. (1) A local licensing authority may issue only the26 following alcohol beverage licenses upon payment of the fee specified in27 231 -15- section 44-3-505:1 (n) Lodging and Entertainment FACILITY license;2 (o) L ODGING FACILITY LICENSE.3 SECTION 7. In Colorado Revised Statutes, 44-3-311, amend (1)4 as follows:5 44-3-311. Public notice - posting and publication - definition.6 (1) Upon receipt of an application, except an application for renewal or7 for transfer of ownership, the A local licensing authority shall MAY8 schedule a public hearing upon the application not less than thirty days9 from AFTER the date of the application and shall post and publish the10 public notice thereof OF THE HEARING not less than ten days prior to the11 hearing. I F A PUBLIC HEARING IS SCHEDULED , THE LOCAL LICENSING12 AUTHORITY SHALL GIVE public notice shall be given by the posting of a13 sign in a conspicuous place on the premises for which application has14 been made and by publication in a newspaper of general circulation in the15 county in which the premises are located.16 SECTION 8. In Colorado Revised Statutes, 44-3-401, amend17 (1)(w); and add (1)(y) and (1)(z) as follows:18 44-3-401. Classes of licenses and permits - rules. (1) For the19 purpose of regulating the manufacture, sale, and distribution of alcohol20 beverages, the state licensing authority in its discretion, upon application21 in the prescribed form made to it, may issue and grant to the applicant a22 license or permit from any of the following classes, subject to the23 provisions and restrictions provided by this article 3:24 (w) Lodging and Entertainment FACILITY license;25 (y) L ODGING FACILITY LICENSE;26 (z) C ATERING LICENSE.27 231 -16- SECTION 9. In Colorado Revised Statutes, 44-3-402, amend1 (7)(a) as follows:2 44-3-402. Manufacturer's license - rules. (7) (a) (I) A3 manufacturer of spirituous liquors licensed pursuant to this section may4 conduct tastings and sell to customers spirituous liquors of its own5 manufacture on its licensed premises and at one other approved sales6 room location at no additional cost. A sales room location may be7 included in the license at the time of the original license issuance or by8 supplemental application. I F THE LICENSED PREMISES INCLUDES MULTIPLE9 NONCONTIGUOUS LOCATIONS , THE MANUFACTURER MAY OPERATE A SALES10 ROOM ON ONLY ONE OF THOSE NONCONTIGUOUS LOCATIONS .11 (II) A MANUFACTURER OF SPIRITUOUS LIQUORS LICENSED12 PURSUANT TO THIS SECTION THAT OPERATES A SALES ROOM MAY13 PURCHASE AND USE COMMON ALCOHOL MODIFIERS , INCLUDING14 VERMOUTH, AMAROS, AND LIQUEURS, TO COMBINE WITH SPIRITUOUS15 LIQUORS TO PRODUCE COCKTAILS FOR CONSUMPTION ON OR OFF THE SALES16 ROOM PREMISES. A MANUFACTURER THAT USES AN ALCOHOL MODIFIER 17 PURSUANT TO THIS SUBSECTION (7)(a)(II) SHALL COMBINE THE MODIFIER18 WITH A SPIRITUOUS LIQUOR PRODUCED BY THE MANUFACTURER . A19 MANUFACTURER SHALL NOT SELL AN ALCOHOL MODIFIER THAT HAS NOT20 BEEN COMBINED WITH A SPIRITOUS LIQUOR . THE STATE LICENSING21 AUTHORITY MAY ADOPT RULES NECESSARY TO IMPLEMENT AND22 ADMINISTER THIS SUBSECTION (7)(a)(II).23 SECTION 10. In Colorado Revised Statutes, 44-3-404, amend24 (1)(c) as follows:25 44-3-404. Festival permit - rules. (1) (c) If a festival permittee26 notifies the state licensing authority and the appropriate local licensing27 231 -17- authority of the location of and dates of each festival at least thirty1 business CALENDAR days before holding the festival, the permittee may2 hold up to, but no more than, nine festivals during the twelve months after3 the festival permit is issued. Beginning January 1, 2024, a permittee may4 hold up to nine festivals during each calendar year.5 SECTION 11. In Colorado Revised Statutes, 44-3-405, repeal (2)6 as follows:7 44-3-405. Importer's license. (2) It is unlawful for any licensed8 importer of vinous or spirituous liquors or any person, partnership,9 association, organization, or corporation interested financially in or with10 such a licensed importer to be interested financially, directly or indirectly,11 in the business of any vinous or spirituous wholesale licensee; except that12 any such financial interest that occurred on or before July 1, 1969, shall13 be lawful.14 SECTION 12. In Colorado Revised Statutes, 44-3-407, amend15 (3); and add (1.5) as follows:16 44-3-407. Wholesaler's license - discrimination in wholesale17 sales prohibited - rules. (1.5) (a) A LICENSED WHOLESALER MAY HOLD18 TRADE SHOW EVENTS TO ALLOW RETAILERS TO SAMPLE PRODUCTS ON THE19 WHOLESALER'S LICENSED PREMISES IN AN AREA DESIGNATED FOR TRADE20 SHOW EVENTS. A WHOLESALER SHALL NOT OPEN TRADE SHOW EVENTS TO21 THE GENERAL PUBLIC.22 (b) (I) E XCEPT AS PROVIDED IN SUBSECTION (1.5)(b)(II) OF THIS23 SECTION, A WHOLESALER MAY HOLD A TRADE SHOW EVENT ON THE24 WHOLESALER'S LICENSED PREMISES.25 (II) A WHOLESALER SHALL NOT HOLD A TRADE SHOW EVENT IN :26 (A) T HE DOCKING, DELIVERY, OR WAREHOUSE STORAGE AREAS OF27 231 -18- THE LICENSED PREMISES, UNLESS THE WAREHOUSE IS A DESIGNATED AREA1 FOR A TRADE SHOW EVENT OR IS ISOLATED AND EXCLUDED FROM ONGOING2 BUSINESS ACTIVITY; OR3 (B) A SALES ROOM DURING ANY TIME WHEN THE SALES ROOM IS4 OPEN TO THE GENERAL PUBLIC.5 (c) T HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES6 IMPLEMENTING THIS SUBSECTION (1.5).7 (3) It is unlawful for a licensed wholesaler of vinous or spirituous8 liquors or any person, partnership, association, organization, or9 corporation interested financially in or with such a wholesaler to be10 interested financially in the business of any licensed manufacturer or 11 importer of vinous or spirituous liquors; except that any such financial12 interest that occurred on or before July 1, 1969, shall be IS lawful.13 SECTION 13. In Colorado Revised Statutes, 44-3-409, amend14 (2)(a)(I); and add (6), (7), and (8) as follows:15 44-3-409. Retail liquor store license - rules - definitions.16 (2) (a) A person licensed under this section to sell malt, vinous, and17 spirituous liquors in a retail liquor store:18 (I) E XCEPT AS PROVIDED IN SUBSECTION (6) OF THIS SECTION, shall19 purchase the malt, vinous, and spirituous liquors only from a wholesaler20 licensed pursuant to this article 3; and21 (6) (a) A SELLING LICENSEE MAY SELL OR OTHERWISE TRANSFER22 ALL OF THE LICENSEE'S ALCOHOL BEVERAGE INVENTORY TO ANOTHER23 LICENSED RETAIL LIQUOR STORE AS PROVIDED IN THIS SUBSECTION (6).24 (b) (I) T HE SELLING LICENSEE MUST SELL ALL OF THE LICENSEE 'S25 ALCOHOL BEVERAGE INVENTORY TO ONLY ONE ACQUIRING LICENSEE .26 (II) I N DETERMINING THE COST OF THE ALCOHOL BEVERAGE27 231 -19- INVENTORY, THE SELLING LICENSEE SHALL CHARGE, AND THE ACQUIRING1 LICENSEE MUST PAY, THE HIGHEST AMOUNT THE SELLING LICENSEE PAID2 FOR EACH ALCOHOL BEVERAGE IN THE ACQUIRING LICENSEE 'S INVENTORY3 AT THE TIME THE INVENTORY IS ACQUIRED .4 (c) B OTH THE SELLING LICENSEE AND THE ACQUIRING LICENSEE5 SHALL GIVE NOTICE TO THE STATE AND LOCAL LICENSING AUTHORITIES OF6 THE SALE OR TRANSFER OF THE INVENTORY NOT LESS THAN FIFTEEN DAYS7 BEFORE THE SALE OCCURS.8 (d) (I) P RIOR TO ACCEPTING PAYMENT FROM AN ACQUIRING9 LICENSEE, THE SELLING LICENSEE SHALL NOTIFY ALL WHOLESALERS FROM10 WHICH THE SELLING LICENSEE PURCHASED ALCOHOL BEVERAGES WITHIN11 THE FOUR MONTHS IMMEDIATELY PRECEDING THE DATE OF THE SALE OR12 TRANSFER, INFORMING THE WHOLESALERS OF THE IMPENDING SALE OR13 TRANSFER.14 (II) W ITHIN FIFTEEN BUSINESS DAYS AFTER RECEIVING THE NOTICE15 SENT PURSUANT TO SUBSECTION (6)(d)(I) OF THIS SECTION, A16 WHOLESALER SHALL NOTIFY THE ACQUIRING LICENSEE AND THE SELLING17 LICENSEE OF ANY OUTSTANDING DEBT OWED BY THE SELLING LICENSEE TO18 THE WHOLESALER FOR THE PRODUCTS BEING SOLD OR TRANSFERRED .19 (III) I F AN ACQUIRING LICENSEE RECEIVES NOTICE OF AN20 OUTSTANDING DEBT OWED BY THE SELLING LICENSEE PURSUANT TO21 SUBSECTION (6)(d)(II) OF THIS SECTION, THE ACQUIRING LICENSEE SHALL22 FIRST SATISFY THE SELLING LICENSEE'S DEBT WITH THE WHOLESALER. THE23 ACQUIRING LICENSEE SHALL PAY ANY REMAINING MONEY OWED FOR THE24 PURCHASED INVENTORY AFTER PAYMENT HAS BEEN MADE TO ANY25 WHOLESALERS THAT NOTIFIED THE ACQUIRING LICENSEE IN A MANNER26 CONSISTENT WITH THE AGREEMENT BETWEEN THE SELLING LICENSEE AND27 231 -20- THE ACQUIRING LICENSEE.1 (IV) I F A WHOLESALER FAILS TO PROVIDE NOTICE OF ANY2 INDEBTEDNESS OWED TO THE WHOLESALER BY THE SELLING LICENSEE3 WITHIN THE TIME SPECIFIED IN SUBSECTION (6)(d)(II) OF THIS SECTION,4 THE ACQUIRING LICENSEE IS EXCUSED OF ANY LIABILITY FOR THE5 OUTSTANDING DEBT THE SELLING LICENSEE OWES THE WHOLESALER .6 (e) A T THE TIME THAT THE SELLING LICENSEE OFFERS ITS ALCOHOL7 BEVERAGE INVENTORY FOR SALE TO AN ACQUIRING LICENSEE , THE8 SELLING LICENSEE SHALL ALSO GIVE NOTICE TO ALL LICENSED9 WHOLESALERS OF THE OFFER , AND THE SELLING LICENSEE SHALL10 IMMEDIATELY, UPON GIVING NOTICE, CEASE TO PURCHASE ANY FURTHER11 PRODUCT FROM A LICENSED WHOLESALER .12 (f) (I) A FTER THE SELLING LICENSEE 'S ALCOHOL BEVERAGE13 INVENTORY IS PURCHASED, THE SELLING LICENSEE'S LICENSE IS CANCELED,14 INVALID, AND CONSIDERED TO HAVE BEEN SURRENDERED . EXCEPT AS15 PROVIDED IN SUBSECTION (6)(f)(II) OF THIS SECTION, THE STATE OR A16 LOCAL LICENSING AUTHORITY SHALL NOT ISSUE A NEW RETAIL LIQUOR17 STORE LICENSE AT THE LOCATION OF THE SELLING LICENSEE'S PREMISES OR18 WITHIN ONE THOUSAND FIVE HUNDRED FEET OF THE LICENSED PREMISES19 FOR THE FIVE YEARS IMMEDIATELY FOLLOWING THE DATE THE LICENSE IS20 CANCELED, INVALIDATED, OR CONSIDERED SURRENDERED .21 (II) T HE STATE AND LOCAL LICENSING AUTHORITIES MAY APPROVE22 A TRANSFER OF OWNERSHIP THAT ENABLES A NEW LICENSEE TO OPERATE23 AT THE SAME PREMISES IF THE CONDITIONS IN SUBSECTION (7) OF THIS24 SECTION ARE MET.25 (7) (a) A N ACQUIRING LICENSEE MAY, SUBJECT TO APPROVAL FROM26 THE STATE AND LOCAL LICENSING AUTHORITIES AND THE LIMITATIONS27 231 -21- SPECIFIED IN SUBSECTION (4)(b)(III) OF THIS SECTION, OBTAIN THE RETAIL1 LIQUOR LICENSE OF A SELLING LICENSEE WHEN THE ALCOHOL BEVERAGE2 INVENTORY OF THE SELLING LICENSEE IS TRANSFERRED TO THE ACQUIRING3 LICENSEE IF:4 (I) T HE LICENSED PREMISES OF THE SELLING LICENSEE DOES NOT5 EXCEED TEN THOUSAND SQUARE FEET ; AND6 (II) T HE ACQUISITION OF THE LICENSE IS APPROVED BY THE STATE7 AND LOCAL LICENSING AUTHORITIES FOR A CHANGE OF OWNERSHIP AS8 REQUIRED BY SECTION 44-3-303.9 10 (b) IF THE ACQUIRING LICENSEE OWNS MORE THAN ONE RETAIL11 LIQUOR STORE LICENSE, THE PURCHASED ALCOHOL BEVERAGE INVENTORY12 MAY BE PAID FOR BY THE ACQUIRING LICENSEE , AND THE ACQUIRING13 LICENSEE MAY ALLOCATE THE COST BETWEEN OR AMONG ALL OF THE14 RETAIL LIQUOR STORES OWNED BY THE ACQUIRING LICENSEE , SO LONG AS15 THE ALLOCATION OCCURS PRIOR TO OR AT THE TIME THE ALCOHOL16 BEVERAGE IS REMOVED FROM THE PREMISES OF THE SELLING LICENSEE .17 (c) UPON ENTERING INTO AN AGREEMENT FOR THE SALE OF THE18 SELLING LICENSEE'S ALCOHOL BEVERAGE INVENTORY , THE SELLING19 LICENSEE AND THE ACQUIRING LICENSEE SHALL PROVIDE NOTICE OF THE20 PENDING SALE TO THE STATE LICENSING AUTHORITY , WHICH SHALL POST21 THE NOTICE ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.22 (d) THE ACQUIRING LICENSEE MUST TRANSPORT THE ALCOHOL23 BEVERAGE IT PURCHASED FROM THE SELLING LICENSEE AND MAY ONLY24 TRANSPORT THE ALCOHOL BEVERAGES TO THE ACQUIRING LICENSEE 'S25 LICENSED PREMISES OR TO ONE OF THE OTHER LICENSED PREMISES OWNED26 BY THE ACQUIRING LICENSEE.27 231 -22- (8) AS USED IN THIS SECTION:1 (a) "A CQUIRING LICENSEE" MEANS A LICENSED RETAIL LIQUOR2 STORE PURCHASING OR ATTEMPTING TO PURCHASE THE INVENTORY OF A3 SELLING LICENSEE.4 (b) "S ELLING LICENSEE" MEANS A LICENSED RETAIL LIQUOR STORE5 THAT IS SURRENDERING ITS LICENSE.6 SECTION 14. In Colorado Revised Statutes, 44-3-410, amend7 (2)(b) as follows:8 44-3-410. Liquor-licensed drugstore license - multiple licenses9 permitted - requirements - rules. (2) (b) A person licensed under this10 section on or after January 1, 2017, shall not purchase malt, vinous, or11 spirituous liquors from a wholesaler on credit and shall effect payment12 upon delivery of the alcohol beverages. T HE ACCEPTANCE AND USE OF AN13 ELECTRONIC FUNDS TRANSFER IS NOT AN EXTENSION OR ACCEPTANCE OF14 CREDIT AS PROHIBITED BY THIS SUBSECTION (2)(b) IF THE TRANSFER IS15 INITIATED ON OR BEFORE THE NEXT BUSINESS DAY AFTER THE DELIVERY16 OF THE MALT, VINOUS, OR SPIRITUOUS LIQUORS.17 SECTION 15. In Colorado Revised Statutes, 44-3-411, amend18 (2)(a) as follows:19 44-3-411. Beer and wine license. (2) (a) Every person selling20 malt and vinous liquors as provided in this section shall purchase malt21 and vinous liquors only from a wholesaler licensed pursuant to this article22 3; except that, during a calendar year, any A person selling malt and23 vinous liquors as provided in this section may purchase not more than two24 SEVEN thousand dollars' worth of malt and vinous liquors from retailers25 licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c).26 O N JANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE27 231 -23- 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 16. In Colorado Revised Statutes, 44-3-413, amend5 (7)(b)(I) as follows:6 44-3-413. Hotel and restaurant license - definitions - rules.7 (7) (b) (I) During a calendar year, a person selling alcohol beverages as8 provided in this section may purchase not more than two SEVEN thousand9 dollars' worth of malt, vinous, and spirituous liquors from retailers10 licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c).11 O N JANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE12 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION13 SPECIFIED IN THIS SUBSECTION (7)(b)(I) FOR INFLATION AND SHALL14 PUBLISH THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR15 ENFORCEMENT DIVISION'S WEBSITE.16 SECTION 17. In Colorado Revised Statutes, 44-3-414, amend17 (2)(a); and repeal (9) as follows:18 44-3-414. Tavern license. (2) (a) Every person selling alcohol19 beverages as provided in this section shall purchase alcohol beverages20 only from a wholesaler licensed pursuant to this article 3; except that,21 during a calendar year, a person selling alcohol beverages as provided in22 this section may purchase not more than two SEVEN thousand dollars'23 worth of malt, vinous, and spirituous liquors from retailers licensed24 pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). O N25 J ANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE26 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION27 231 -24- SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH1 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR2 ENFORCEMENT DIVISION'S WEBSITE.3 (9) (a) At the time a tavern license is due for renewal or by one4 year after August 10, 2016, whichever occurs later, a tavern licensed5 under this section that does not have as its principal business the sale of6 alcohol beverages, has a valid license on August 10, 2016, and is a7 lodging and entertainment facility may apply to, and the applicable local8 licensing authority shall, convert the tavern license to a lodging and9 entertainment license under section 44-3-428, and the licensee may10 continue to operate as a lodging and entertainment facility licensee. If a11 tavern licensee does not have as its principal business the sale of alcohol12 beverages but is not a lodging and entertainment facility, at the time the13 tavern license is due for renewal or by one year after August 10, 2016,14 whichever occurs later, the licensee may apply to, and the applicable local15 licensing authority shall, convert the tavern license to another license16 under this article 3, if any, for which the person qualifies.17 (b) A person applying under this subsection (9) to convert an18 existing tavern license to another license under this article 3 may apply to19 convert the license, even if the location of the licensed premises is within20 five hundred feet of any public or parochial school or the principal21 campus of any college, university, or seminary, so long as the local22 licensing authority has previously approved the location of the licensed23 premises in accordance with section 44-3-313 (1)(d).24 SECTION 18. In Colorado Revised Statutes, 44-3-416, amend25 (2)(a) as follows:26 44-3-416. Retail gaming tavern license. (2) (a) Every person27 231 -25- selling alcohol beverages as described in this section shall purchase the1 alcohol beverages only from a wholesaler licensed pursuant to this article2 3; except that, during a calendar year, a person selling alcohol beverages3 as provided in this section may purchase not more than two SEVEN4 thousand dollars' worth of malt, vinous, or spirituous liquors from5 retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-1046 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE7 STATE LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION8 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH9 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR10 ENFORCEMENT DIVISION'S WEBSITE.11 SECTION 19. In Colorado Revised Statutes, 44-3-417, amend12 (3)(a) as follows:13 44-3-417. Brew pub license - definitions. (3) (a) Every person14 selling alcohol beverages pursuant to this section shall purchase alcohol15 beverages, other than those that are manufactured at the licensed brew16 pub, from a wholesaler licensed pursuant to this article 3; except that,17 during a calendar year, a person selling alcohol beverages as provided in18 this section may purchase not more than two SEVEN thousand dollars'19 worth of malt, vinous, and spirituous liquors from retailers licensed20 pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). O N21 J ANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE22 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION23 SPECIFIED IN THIS SUBSECTION (3)(a) FOR INFLATION AND SHALL PUBLISH24 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR25 ENFORCEMENT DIVISION'S WEBSITE.26 SECTION 20. In Colorado Revised Statutes, 44-3-418, amend27 231 -26- (2)(a) as follows:1 44-3-418. Club license - legislative declaration. (2) (a) Every2 person selling alcohol beverages as provided in this section shall purchase3 the alcohol beverages only from a wholesaler licensed pursuant to this4 article 3; except that, during a calendar year, a person selling alcohol5 beverages as provided in this section may purchase not more than two6 SEVEN thousand dollars' worth of malt, vinous, and spirituous liquors7 from retailers licensed pursuant to sections 44-3-409, 44-3-410, and8 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY 19 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE10 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (2)(a) FOR11 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION12 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.13 SECTION 21. In Colorado Revised Statutes, 44-3-419, amend14 (1)(a) and (4)(a) as follows:15 44-3-419. Arts license - definition. (1) (a) An arts license may16 be issued to any nonprofit arts organization that sponsors and presents17 productions or performances of an artistic or cultural nature, and the arts18 license permits the licensee to sell alcohol beverages only to patrons of19 the productions or performances for consumption on the licensed20 premises in connection with the productions or performances. No person 21 licensed pursuant to this section shall permit any exterior or interior22 advertising concerning the sale of alcohol beverages on the licensed23 premises A LICENSEE MAY PLACE LIMITED ADVERTISING OF THE24 AVAILABILITY OF ALCOHOL BEVERAGES FOR SALE ON THE LICENSED25 PREMISES WHILE AN ARTISTIC OR CULTURAL PRODUCTION OR26 PERFORMANCE IS TAKING PLACE AND MAY INCLUDE THE LIMITED27 231 -27- ADVERTISING IN E-MAIL, PRINT, RADIO, TELEVISION, AND SOCIAL MEDIA1 MARKETING ABOUT THE PRODUCTION OR PERFORMANCE , BUT THE2 AVAILABILITY OF ALCOHOL BEVERAGES MUST NOT BE THE PRIMARY FOCUS3 OF THE ADVERTISEMENT.4 (4) (a) Every person selling alcohol beverages as provided in this5 section shall purchase the alcohol beverages only from a wholesaler6 licensed pursuant to this article 3; except that, during a calendar year, a7 person selling alcohol beverages as provided in this section may purchase8 not more than two SEVEN thousand dollars' worth of malt, vinous, and9 spirituous liquors from retailers licensed pursuant to sections 44-3-409,10 44-3-410, and 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY11 1 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE12 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (4)(a) FOR13 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION14 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.15 SECTION 22. In Colorado Revised Statutes, 44-3-420, amend16 (2)(a) as follows:17 44-3-420. Racetrack license. (2) (a) Every person selling alcohol18 beverages as provided in this section shall purchase the alcohol beverages19 only from a wholesaler licensed pursuant to this article 3; except that,20 during a calendar year, a person selling alcohol beverages as provided in21 this section may purchase not more than two SEVEN thousand dollars'22 worth of malt, vinous, and spirituous liquors from retailers licensed23 pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). O N24 J ANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE25 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION26 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH27 231 -28- THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR1 ENFORCEMENT DIVISION'S WEBSITE.2 SECTION 23. In Colorado Revised Statutes, 44-3-422, amend3 (3)(a) as follows:4 44-3-422. Vintner's restaurant license. (3) (a) Every person5 selling alcohol beverages pursuant to this section shall purchase the6 alcohol beverages, other than those that are manufactured at the licensed7 vintner's restaurant, from a wholesaler licensed pursuant to this article 3;8 except that, during a calendar year, a person may purchase not more than9 two SEVEN thousand dollars' worth of malt, vinous, and spirituous liquors10 from retailers licensed pursuant to sections 44-3-409, 44-3-410, and11 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY 112 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE13 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (3)(a) FOR14 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION15 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.16 SECTION 24. In Colorado Revised Statutes, 44-3-423, amend17 (2)(a)(X); and add (2)(a)(XI) as follows:18 44-3-423. Removal of vinous liquor from licensed premises.19 (2) This section applies to a person:20 (a) That is duly licensed as a:21 (X) Lodging and Entertainment facility under section 44-3-428;22 and23 (XI) A LODGING FACILITY UNDER SECTION 44-3-432; AND24 SECTION 25. In Colorado Revised Statutes, 44-3-424, amend25 (2)(b) as follows:26 44-3-424. Retail establishment permit - definitions.27 231 -29- (2) (b) Upon initial application, and for each renewal, the AN applicant1 must list each day that alcohol beverages will be served, which days must2 not be changed without a minimum of fifteen THIRTY days' written notice3 to the state and local licensing authority AUTHORITIES.4 SECTION 26. In Colorado Revised Statutes, 44-3-426, amend5 (4)(b)(I) as follows:6 44-3-426. Distillery pub license - legislative declaration -7 definition. (4) (b) (I) During a calendar year, a person selling alcohol8 beverages as provided in this section may purchase not more than two9 SEVEN thousand dollars' worth of malt, vinous, and spirituous liquors10 from retailers licensed pursuant to sections 44-3-409, 44-3-410, and11 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH JANUARY 112 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST THE13 PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (4)(b)(I) FOR14 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION15 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.16 SECTION 27. In Colorado Revised Statutes, 44-3-428, amend17 (1), (2), (3)(a), (3)(b) introductory portion, and (4)(b); repeal (5); and add18 (6) and (7) as follows:19 44-3-428. Entertainment facility license - repeal. (1) A lodging 20 and AN entertainment FACILITY license may be issued to a lodging and AN21 entertainment facility selling alcohol beverages by the drink only to22 customers for consumption on the premises. A lodging and AN23 entertainment facility licensee shall have sandwiches and light snacks24 available for consumption on the LICENSED premises during business25 hours but need not have meals available for consumption.26 (2) (a) A lodging and AN entertainment facility licensed to sell27 231 -30- alcohol beverages as provided in this section shall purchase alcohol1 beverages only from a wholesaler licensed pursuant to this article 3;2 except that, during a calendar year, a lodging and AN entertainment3 facility licensed to sell alcohol beverages as provided in this section may4 purchase not more than two SEVEN thousand dollars' worth of malt,5 vinous, and spirituous liquors from retailers licensed pursuant to sections6 44-3-409, 44-3-410, and 44-4-104 (1)(c). O N JANUARY 1, 2025, AND EACH7 J ANUARY 1 THEREAFTER, THE STATE LICENSING AUTHORITY SHALL ADJUST8 THE PURCHASE LIMITATION SPECIFIED IN THIS SUBSECTION (2)(a) FOR9 INFLATION AND SHALL PUBLISH THE ADJUSTED PURCHASE LIMITATION10 AMOUNT ON THE LIQUOR ENFORCEMENT DIVISION 'S WEBSITE.11 (b) A lodging and AN entertainment facility licensee shall retain12 evidence of each purchase of malt, vinous, or spirituous liquors from a13 retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-10414 (1)(c), in the form of a purchase receipt showing the name of the licensed15 retailer, the date of purchase, a description of the alcohol beverages16 purchased, and the price paid for the alcohol beverages. The lodging and17 entertainment facility licensee shall retain the receipt and make it18 available to the state and local licensing authorities at all times during19 business hours.20 (3) (a) Except as provided in subsection (3)(b) of this section, it21 is unlawful for any owner, part owner, shareholder, or person interested22 directly or indirectly in lodging and entertainment FACILITY licenses to23 conduct, own either in whole or in part, or be directly or indirectly24 interested in any other business licensed pursuant to this article 3 or25 article 4 of this title 44.26 (b) An owner, part owner, shareholder, or person interested27 231 -31- directly or indirectly in a lodging and AN entertainment FACILITY license1 may have an interest in:2 (4) (b) The manager for each lodging and LICENSED entertainment3 license FACILITY, the lodging and entertainment facility licensee, or an4 employee or agent of the lodging and entertainment facility licensee shall5 purchase alcohol beverages for one licensed premises only, and the6 purchases shall be separate and distinct from purchases for any other7 lodging and LICENSED entertainment license FACILITY.8 (5) At the time a tavern license issued under section 44-3-414 is9 due for renewal or by one year after August 10, 2016, whichever occurs10 later, a person licensed as a tavern that does not have as its principal11 business the sale of alcohol beverages, has a valid license on August 10,12 2016, and is a lodging and entertainment facility may apply to, and the13 applicable local licensing authority shall, convert the tavern license to a14 lodging and entertainment license under this section, and the person may15 continue to operate as a lodging and entertainment facility licensee. A16 person applying to convert an existing tavern license to a lodging and17 entertainment license under this subsection (5) may apply to convert the18 license, even if the location of the licensed premises is within five19 hundred feet of any public or parochial school or the principal campus of20 any college, university, or seminary, so long as the local licensing21 authority has previously approved the location of the licensed premises22 in accordance with section 44-3-313 (1)(d).23 (6) (a) O N AND AFTER THE EFFECTIVE DATE OF THIS SUBSECTION24 (6), THE STATE OR A LOCAL LICENSING AUTHORITY SHALL NOT ISSUE OR25 RENEW ANY LICENSES UNDER THIS SECTION TO A LODGING FACILITY .26 (b) T HE STATE AND LOCAL LICENSING AUTHORITIES SHALL TREAT27 231 -32- ANY APPLICATION SUBMITTED ON OR BEFORE THE EFFECTIVE DATE OF THIS1 SECTION, AS AMENDED, BY A LODGING FACILITY FOR A LODGING AND2 ENTERTAINMENT FACILITY LICENSE OR RENEWAL LICENSE AS AN3 APPLICATION FOR A LODGING FACILITY LICENSE OR RENEWAL LICENSE4 ISSUED PURSUANT TO SECTION 44-3-432.5 (c) O N THE EFFECTIVE DATE OF THIS SUBSECTION (6), EACH6 LODGING AND ENTERTAINMENT FACILITY LICENSE ISSUED UNDER THIS7 SECTION TO A LODGING FACILITY AUTOMATICALLY C ONVERTS TO LODGING8 FACILITY LICENSE ISSUED PURSUANT TO SECTION 44-3-432.9 (d) T HE CONVERSION OF AN ENTERTAINMENT AND LODGING10 LICENSE ISSUED TO A LODGING FACILITY UNDER THIS SECTION TO A11 LODGING FACILITY LICENSE UNDER SECTION 44-3-432 PURSUANT TO THIS12 SUBSECTION (6) IS A CONTINUATION OF THE PRIOR LICENSE AND DOES NOT13 AFFECT:14 (I) A NY PRIOR DISCIPLINE, LIMITATION, OR CONDITION IMPOSED BY15 THE STATE LICENSING AUTHORITY ON A LICENSEE ;16 (II) T HE DEADLINE FOR RENEWAL OF THE LICENSE ; OR17 (III) A NY PENDING OR FUTURE INVESTIGATION OR18 ADMINISTRATIVE PROCEEDING .19 (e) T HIS SUBSECTION (6) IS REPEALED, EFFECTIVE SEPTEMBER 1,20 2026.21 (7) (a) O N THE EFFECTIVE DATE OF THIS SUBSECTION (7), EACH22 LODGING AND ENTERTAINMENT FACILITY LICENSE ISSUED UNDER THIS23 SECTION TO AN ENTERTAINMENT FACILITY AUTOMATICALLY CONVERTS TO24 AN ENTERTAINMENT FACILITY LICENSE .25 (b) T HE STATE AND LOCAL LICENSING AUTHORITIES SHALL TREAT26 ANY APPLICATION SUBMITTED ON OR BEFORE THE EFFECTIVE DATE OF THIS27 231 -33- SECTION, AS AMENDED, BY AN ENTERTAINMENT FACILITY FOR A LODGING1 AND ENTERTAINMENT FACILITY LICENSE OR RENEWAL LICENSE AS AN2 APPLICATION FOR AN ENTERTAINMENT FACILITY LICENSE OR RENEWAL3 LICENSE ISSUED PURSUANT TO THIS SECTION.4 (c) T HE CONVERSION OF A L ODGING AND ENTERTAINMENT5 FACILITY LICENSE ISSUED TO AN ENTERTAINMENT FACILITY TO AN6 ENTERTAINMENT FACILITY LICENSE PURSUANT TO THIS SUBSECTION (7) IS7 A CONTINUATION OF THE PRIOR LICENSE AND DOES NOT AFFECT :8 (I) A NY PRIOR DISCIPLINE, LIMITATION, OR CONDITION IMPOSED BY9 THE STATE LICENSING AUTHORITY ON A LICENSEE ;10 (II) T HE DEADLINE FOR RENEWAL OF THE LICENSE ; OR11 (III) A NY PENDING OR FUTURE INVESTIGATION OR12 ADMINISTRATIVE PROCEEDING .13 (d) T HIS SUBSECTION (7) IS REPEALED, EFFECTIVE SEPTEMBER 1,14 2026.15 SECTION 28. In Colorado Revised Statutes, 44-3-429, amend16 (1)(j) and (1)(k); and add (1)(l) as follows:17 44-3-429. Purchasing alcohol from a surrendered license of18 common ownership - definition. (1) This section applies to a person19 that has been issued the following license types:20 (j) Distillery pub license under section 44-3-426; or 21 (k) Lodging and Entertainment facility license under section22 44-3-428; OR23 (l) A LODGING FACILITY LICENSE UNDER SECTION 44-3-432.24 SECTION 29. In Colorado Revised Statutes, add 44-3-430,25 44-3-431, and 44-3-432 as follows:26 44-3-430. Alcohol beverage shipper license for wine direct27 231 -34- shipping - rules - notice to revisor of statutes. (1) THE STATE1 LICENSING AUTHORITY MAY ISSUE AN ALCOHOL BEVERAGE SHIPPER2 LICENSE TO AN ALCOHOL BEVERAGE SHIPPER THAT SHIPS VINOUS LIQUORS3 FOR A LICENSED WINERY THAT HOLDS A WINERY DIRECT SHIPPER 'S PERMIT4 PURSUANT TO SECTION 44-3-104.5 (2) A DRIVER DELIVERING ON BEHALF OF AN ALCOHOL BEVERAGE6 SHIPPER LICENSE SHALL NOT LE AVE A PACKAGE UNATTENDED ON A7 DOORSTEP AND SHALL CHECK THE RECIPIENT 'S IDENTIFICATION TO ENSURE8 THAT THE INDIVIDUAL ACCEPTING DELIVERY IS THE INDIVIDUAL INTENDED9 TO RECEIVE THE PRODUCT AND IS NOT UNDER TWENTY -ONE YEARS OF AGE10 OR VISIBLY INTOXICATED.11 (3) I F AN ALCOHOL BEVERAGE SHIPPER VIOLATES THIS SECTION ,12 THE STATE LICENSING AUTHORITY SHALL BRING ACTION AGAINST THE13 ALCOHOL BEVERAGE SHIPPER 'S LICENSE.14 (4) T HE STATE LICENSING AUTHORITY SHALL ADOPT RULES15 NECESSARY TO ADMINISTER AND ENFORCE THIS SECTION .16 (5) THIS SECTION TAKES EFFECT IF THE STATE LICENSING17 AUTHORITY DETERMINES THAT THE LIQUOR ENFORCEMENT DIVISION HAS18 SUFFICIENT LEGALLY AVAILABLE FUNDING FOR THE ADMINISTRATION AND19 ENFORCEMENT OF THIS SECTION. THE STATE LICENSING AUTHORITY SHALL20 NOTIFY THE REVISOR OF STATUTES IN WRITING OF THE DATE WHEN THE21 CONDITION SPECIFIED IN THIS SUBSECTION (5) HAS OCCURRED BY22 E-MAILING THE NOTICE TO REVISOROFSTATUTES .GA@COLEG.GOV. THIS23 SECTION TAKES EFFECT UPON THE DATE IDENTIFIED IN THE NOTICE THAT24 THE LIQUOR ENFORCEMENT DIVISION HAS SUFFICIENT LEGALLY AVAILABLE25 FUNDING FOR THE ADMINISTRATION AND ENFORCEMENT OF THIS SECTION26 OR, IF THE NOTICE DOES NOT SPECIFY THAT DATE, UPON THE DATE OF THE27 231 -35- NOTICE TO THE REVISOR OF STATUTES.1 44-3-431. Catering license - permitted events - private events2 - fees - rules - notice to revisor of statutes. (1) THE STATE LICENSING3 AUTHORITY MAY ISSUE A CATERING LICENSE TO A CATERING COMPANY4 THAT ALLOWS THE CATERING LICENSEE TO APPLY FOR TEMPORARY5 PERMITS TO SELL AND SERVE ALCOHOL BEVERAGES ON UNLICENSED6 PREMISES AT CATERED EVENTS. THE CATERING LICENSE IS VALID FOR ONE7 CALENDAR YEAR AND RENEWED ON AN ANNUAL BASIS .8 (2) (a) T HE STATE LICENSING AUTHORITY SHALL ESTABLISH A9 PROCESS FOR A CATERING LICENSEE TO OBTAIN A PERMIT TO CATER AN10 EVENT THAT MAY BE ATTENDED BY SIX HUNDRED OR MORE INDIVIDUALS .11 T HE STATE LICENSING AUTHORITY MAY ESTABLISH A PROCESS FOR A12 CATERING LICENSEE TO OBTAIN A PERMIT TO CATER AN EVENT THAT MAY13 BE ATTENDED BY FEWER THAN SIX HUNDRED INDIVIDUALS .14 (b) A LOCAL LICENSING AUTHORITY MAY ESTABLISH A PROCESS15 FOR A CATERING LICENSEE TO OBTAIN A PERMIT TO CATER AN EVENT THAT16 MAY BE ATTENDED BY SIX HUNDRED OR MORE INDIVIDUALS . IF A LOCAL17 LICENSING AUTHORITY DOES NOT ESTABLISH A LOCAL CATERING PERMIT ,18 AN APPLICANT NEED NOT OBTAIN A CATERING PERMIT FROM THE LOCAL19 LICENSING AUTHORITY.20 (3) T HE STATE LICENSING AUTHORITY SHALL ESTABLISH AND21 MAINTAIN, ON THE LIQUOR ENFORCEMENT DIVISION 'S PUBLIC-FACING22 WEBSITE, A LISTING OF ALL CATERING LICENSES IN THE STATE. A CATERING23 LICENSEE SHALL SUBMIT INFORMATION REQUIRED BY THE STATE24 LICENSING AUTHORITY IN RULE.25 (4) A CATERING LICENSEE SHALL NOT PERMIT AN INDIVIDUAL WHO 26 IS EIGHTEEN YEARS OF AGE OR OLDER AND UNDER TWENTY-ONE YEARS OF27 231 -36- AGE TO SELL, DISPENSE, OR PARTICIPATE IN THE SALE OR DISPENSING OF AN1 ALCOHOL BEVERAGE, UNLESS THE INDIVIDUAL IS SUPERVISED BY ANOTHER2 INDIVIDUAL WHO IS ON THE UNLICENSED PREMISES AND IS TWENTY -ONE3 YEARS OF AGE OR OLDER.4 (5) T HE STATE LICENSING AUTHORITY MAY ADOPT RULES5 NECESSARY TO IMPLEMENT AND ADMINISTER THIS SECTION .6(6) THIS SECTION TAKES EFFECT IF THE STATE LICENSING7 AUTHORITY DETERMINES THAT THE LIQUOR ENFORCEMENT DIVISION HAS8 SUFFICIENT LEGALLY AVAILABLE FUNDING FOR THE ADMINISTRATION AND9 ENFORCEMENT OF THIS SECTION. THE STATE LICENSING AUTHORITY SHALL10 NOTIFY THE REVISOR OF STATUTES IN WRITING OF THE DATE WHEN THE11 CONDITION SPECIFIED IN THIS SUBSECTION (6) HAS OCCURRED BY12 E-MAILING THE NOTICE TO REVISOROFSTATUTES.GA@COLEG.GOV. THIS13 SECTION TAKES EFFECT UPON THE DATE IDENTIFIED IN THE NOTICE THAT14 THE LIQUOR ENFORCEMENT DIVISION HAS SUFFICIENT LEGALLY AVAILABLE15 FUNDING FOR THE ADMINISTRATION AND ENFORCEMENT OF THIS SECTION16 OR, IF THE NOTICE DOES NOT SPECIFY THAT DATE, UPON THE DATE OF THE17 NOTICE TO THE REVISOR OF STATUTES.18 44-3-432. Lodging facility license - rules. (1) A LODGING19 FACILITY LICENSE MAY BE ISSUED TO A LODGING FACILITY THAT SELLS20 ALCOHOL BEVERAGES BY THE DRINK ONLY TO CUSTOMERS FOR21 CONSUMPTION ON THE LICENSED PREMISES . A LODGING FACILITY'S22 LICENSED PREMISES DOES NOT INCLUDE THE FACILITY 'S SLEEPING ROOMS.23 A LODGING FACILITY LICENSEE SHALL NOT PERMIT ALCOHOL BEVERAGES24 TO BE PURCHASED IN A SLEEPING ROOM , SERVE OR DELIVER ALCOHOL25 BEVERAGES TO A SLEEPING ROOM , OR ALLOW A MINIBAR, AS DEFINED IN26 SECTION 44-3-413 (4)(b), IN A SLEEPING ROOM.27 231 -37- (2) (a) A LODGING FACILITY LICENSED TO SELL ALCOHOL1 BEVERAGES AS PROVIDED IN THIS SECTION SHALL PURCHASE ALCOHOL2 BEVERAGES ONLY FROM A WHOLESALER LICENSED PURSUANT TO THIS3 ARTICLE 3; EXCEPT THAT, DURING A CALENDAR YEAR, A LODGING FACILITY4 LICENSED TO SELL ALCOHOL BEVERAGES AS PROVIDED IN THIS SECTION5 MAY PURCHASE NOT MORE THAN SEVEN THOUSAND DOLLARS' WORTH OF6 MALT, VINOUS, AND SPIRITUOUS LIQUORS FROM RETAILERS LICENSED7 PURSUANT TO SECTIONS 44-3-409, 44-3-410, AND 44-4-104 (1)(c). ON8 J ANUARY 1, 2025, AND EACH JANUARY 1 THEREAFTER, THE STATE9 LICENSING AUTHORITY SHALL ADJUST THE PURCHASE LIMITATION10 SPECIFIED IN THIS SUBSECTION (2)(a) FOR INFLATION AND SHALL PUBLISH11 THE ADJUSTED PURCHASE LIMITATION AMOUNT ON THE LIQUOR12 ENFORCEMENT DIVISION'S WEBSITE.13 (b) A LODGING FACILITY LICENSEE SHALL RETAIN EVIDENCE OF14 EACH PURCHASE OF MALT , VINOUS, OR SPIRITUOUS LIQUORS FROM A15 RETAILER LICENSED PURSUANT TO SECTION 44-3-409, 44-3-410, OR16 44-4-104 (1)(c) IN THE FORM OF A PURCHASE RECEIPT SHOWING THE NAME17 OF THE LICENSED RETAILER, THE DATE OF PURCHASE, A DESCRIPTION OF18 THE ALCOHOL BEVERAGES PURCHASED , AND THE PRICE PAID FOR THE19 ALCOHOL BEVERAGES. THE LODGING FACILITY LICENSEE SHALL RETAIN20 THE RECEIPT AND MAKE IT AVAILABLE TO THE STATE AND LOCAL21 LICENSING AUTHORITIES AT ALL TIMES DURING BUSINESS HOURS .22 (3) (a) E XCEPT AS PROVIDED IN SUBSECTION (3)(b) OF THIS23 SECTION, IT IS UNLAWFUL FOR ANY OWNER, PART OWNER, SHAREHOLDER,24 OR PERSON INTERESTED DIRECTLY OR INDIRECTLY IN LODGING FACILITY25 LICENSES TO CONDUCT, OWN EITHER IN WHOLE OR IN PART , OR BE26 DIRECTLY OR INDIRECTLY INTERESTED IN ANY OTHER BUSINESS LICENSED27 231 -38- PURSUANT TO THIS ARTICLE 3 OR ARTICLE 4 OF THIS TITLE 44.1 (b) A N OWNER, PART OWNER, SHAREHOLDER, OR PERSON2 INTERESTED DIRECTLY OR INDIRECTLY IN A LODGING FACILITY LICENSE3 MAY HAVE AN INTEREST IN:4 (I) A LICENSE DESCRIBED IN SECTION 44-3-401 (1)(j) TO (1)(t),5 (1)(v), OR (1)(w); 44-3-412 (1); OR 44-4-104 (1)(c); OR6 (II) A FINANCIAL INSTITUTION REFERRED TO IN SECTION 44-3-3087 (4).8 (4) T HE MANAGER FOR EACH LICENSED LODGING FACILITY , THE9 LODGING FACILITY LICENSEE, OR AN EMPLOYEE OR AGENT OF THE LODGING10 FACILITY LICENSEE SHALL PURCHASE ALCOHOL BEVERAGES FOR ONE11 LICENSED PREMISES ONLY, AND THE PURCHASES SHALL BE SEPARATE AND12 DISTINCT FROM PURCHASES FOR ANY OTHER LICENSED LODGING FACILITY .13 (5) T HE STATE LICENSING AUTHORITY MAY ADOPT RULES14 NECESSARY TO IMPLEMENT AND ADMINISTER THIS SECTION .15 SECTION 30. In Colorado Revised Statutes, 44-3-501, amend16 (1) introductory portion, (1)(v), and (3)(a)(XVIII); repeal (1)(t); and add17 (1)(x), (3)(a)(XX), (3)(a)(XXI), (3)(a)(XXII), and (3)(a)(XXIII) as18 follows:19 44-3-501. State fees - rules. (1) The AN applicant shall pay the20 following license and permit fees to the department annually in advance:21 (t) For each retail establishment permit, up to two hundred dollars;22 (v) For each lodging and entertainment FACILITY license,23 seventy-five dollars;24 (x) F OR EACH LODGING FACILITY LICENSE , SEVENTY-FIVE25 DOLLARS.26 (3) (a) The state licensing authority shall establish fees for27 231 -39- processing the following types of applications, notices, or reports required1 to be submitted to the state licensing authority:2 (XVIII) Applications for the renewal of a license or permit issued3 in accordance with this article 3; and4 (XX) A PPLICATIONS FOR RETAIL ESTABLISHMENT PERMITS 5 PURSUANT TO SECTION 44-3-424 AND RULES ADOPTED PURSUANT TO THAT6 SECTION;7 (XXI) A PPLICATIONS FOR A CATERING LICENSE AND CATERING8 PERMIT PURSUANT TO SECTION 44-3-431 AND RULES ADOPTED PURSUANT 9 TO THAT SECTION;10 (XXII) A PPLICATIONS FOR EACH NONCONTIGUOUS11 MANUFACTURING FACILITY PURSUANT TO SECTION 44-3-402 AND RULES 12 ADOPTED PURSUANT TO THAT SECTION ; AND13 (XXIII) A PPLICATIONS FOR AN ALCOHOL BEVERAGE SHIPPER14 LICENSE PURSUANT TO SECTION 44-3-430 AND RULES ADOPTED PURSUANT 15 TO THAT SECTION.16 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.27 231 -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 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 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, 44-3-418,27 231 -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. Appropriation. For the 2024-25 state fiscal year,3 $5,000 is appropriated to the department of revenue for use by the liquor4 and tobacco enforcement division. This appropriation is from the liquor5 enforcement division and state licensing authority cash fund created in6 section 44-6-101, C.R.S. To implement this act, the division may use this7 appropriation for operating expenses.8 SECTION 36. Act subject to petition - effective date. This act9 takes effect at 12:01 a.m. on the day following the expiration of the10 ninety-day period after final adjournment of the general assembly; except11 that, if a referendum petition is filed pursuant to section 1 (3) of article V12 of the state constitution against this act or an item, section, or part of this13 act within such period, then the act, item, section, or part will not take14 effect unless approved by the people at the general election to be held in15 November 2024 and, in such case, will take effect on the date of the16 official declaration of the vote thereon by the governor.17 231 -44-