COLORADO LIQUOR RULES

ColoradoRegulations

Ask Donna

How this section applies to your facts.

Code of Colorado Regulations › 200 Department of Revenue › 203 Liquor and Tobacco Enforcement Division › 1 CCR 203-2

This text was captured on Aug 14, 2026. It is a snapshot, not a live feed, so check the official code before relying on it.

Text

______________________________________________________________________

Regulation 47-002. Repealed.

Regulation 47-004. Fermented Malt Beverages On or On/Off - Possession of

Alcohol Liquors.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-4-104(1)(c)(I)(A), and 44-4-

107(1), C.R.S. The purpose of this regulation is to prohibit possession and consumption

of vinous or spirituous liquors on a fermented malt beverage on or on/off licensee’s

licensed premises.

A.

Except as provided by subsection 44-3-107(2), C.R.S., no Fermented Malt

Beverage On or On/Off retailer licensed pursuant to Article 4 of Title 44, C.R.S.,

shall allow the sale, possession, or consumption of vinous or spirituous liquor on

its licensed premises.

B.

Except as provided in subsection 44-3-107(2), C.R.S., no person shall possess

or consume vinous or spirituous liquor on the licensed premises of a Fermented

Malt Beverage On or On/Off retailer licensed pursuant to Article 4 of Title 44,

C.R.S.

C.

Except as provided by subsection 44-3-107(2), C.R.S., no Fermented Malt

Beverage and Wine Retailer licensed pursuant to Article 4 of Title 44, C.R.S.,

shall allow the sale, possession, or consumption of spirituous liquor on its

licensed premises.

D.

Except as provided in subsection 44-3-107(2), C.R.S., no person shall possess

or consume spirituous liquor on the licensed premises of a Fermented Malt

Beverage and Wine Retailer licensed pursuant to Article 4 of Title 44, C.R.S.

Code of Colorado Regulations

Secretary of State

State of Colorado

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

licensed premises.

D.

Except as provided in subsection 44-3-107(2), C.R.S., no person shall possess

or consume spirituous liquor on the licensed premises of a Fermented Malt

Beverage and Wine Retailer licensed pursuant to Article 4 of Title 44, C.R.S.

Code of Colorado Regulations

Secretary of State

State of Colorado

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

2

Regulation 47-006. Repealed.

Regulation 47-008. Fermented Malt Beverages - Limitations of License.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(R), 44-4-107(1),

44-3-901(6)(k), and 44-3-911(6)(a)(I), C.R.S. The purpose of this regulation is to

differentiate fermented malt beverage on-premises retailers, fermented malt beverage

and wine retailers, and fermented malt beverage on- and off- premises retailers and

clarify what activities are permitted under each license type.

A.

Fermented Malt Beverage retailers licensed for on-premise consumption under

subsection 44-4-107(1)(b), C.R.S., shall not sell or permit the removal from the

licensed premises of any fermented malt beverages in sealed containers unless:

1.

A special event is being conducted pursuant to subsection 44-3-107(2),

C.R.S.; or

2.

A licensee is selling fermented malt beverages in sealed containers for

take-out pursuant to subsection 44-3-911(6)(a)(I), C.R.S.

B.

Fermented Malt Beverage and Wine Retailers licensed for off-premises

consumption under subsection 44-4- 107(1)(a)(1), C.R.S., shall not allow open

containers of fermented malt beverage or wine on their licensed premises unless:

1.

A sampling for the fermented malt beverage and wine retailer is being

provided pursuant to subsection 44-3-901(6)(k)(II)(B), C.R.S.;

2.

A tasting is being conducted by the fermented malt beverage and wine

retailer pursuant to subsection 44-3-901(6)(k)(IV), C.R.S.; or

3

-4- 107(1)(a)(1), C.R.S., shall not allow open

containers of fermented malt beverage or wine on their licensed premises unless:

1.

A sampling for the fermented malt beverage and wine retailer is being

provided pursuant to subsection 44-3-901(6)(k)(II)(B), C.R.S.;

2.

A tasting is being conducted by the fermented malt beverage and wine

retailer pursuant to subsection 44-3-901(6)(k)(IV), C.R.S.; or

3.

A damaged or defective product is present in order to be returned and is

stored outside the sales area of the licensed premises until such time that

the product can be returned to the wholesaler.

C.

Fermented Malt Beverages retailers licensed for both on- and off-premises

consumption under subsection 44-7-107(1)(c)(I), C.R.S., when using the

privileges for on-premises consumption shall not allow removal of fermented malt

beverages from its licensed premises, unless:

1.

The fermented malt beverage retailer licensed for both on- and off-

premises consumption is providing the fermented malt beverage for take-

out pursuant to subsection 44-3- 911(6)(a)(I), C.R.S.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

3

Regulation 47-009 Fermented Malt Beverage and Wine Retailer Licenses Distance

Requirement.

Basis and Purpose. The statutory authority for this regulation is found at subsections

44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(D), 44-3-202(2)(a)(I)(R), 44-3-

202(2)(a)(I)(O), and 44-3-301(12), C.R.S. The purpose of this regulation is to clarify the

distance restrictions for new fermented malt beverage and wine retailer applicants as

well as the availability of the exception to the statutory distance requirement.

A.

The exceptions to the five hundred (500) foot distance restriction set forth in

subsection 44-3-301(12)(a.5)(II)(A) and (B), C.R.S., shall apply only if a building

permit or certificate of occupancy for the structure has been timely applied for or

received on or prior to January 1, 2019.

Regulation 47-010

icants as

well as the availability of the exception to the statutory distance requirement.

A.

The exceptions to the five hundred (500) foot distance restriction set forth in

subsection 44-3-301(12)(a.5)(II)(A) and (B), C.R.S., shall apply only if a building

permit or certificate of occupancy for the structure has been timely applied for or

received on or prior to January 1, 2019.

Regulation 47-010. Items Approved for Sale in Fermented Malt Beverage and Wine

Retailer Licenses.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-4-107(3)(c), 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-

202(2)(a)(I)(D), 44-3-202(2)(a)(I)(R), and 44-3-202(2)(a)(I)(O), C.R.S. The purpose of

this regulation is to define how applicable licensees must report and demonstrate

compliance concerning this specific statutory requirement.

A.

To demonstrate compliance with subsection 44-4-107(3), C.R.S., if applicable,

the applicant or licensee must affirm on its new and annual renewal application

that the license derives or will derive at least twenty (20) percent of its gross

annual revenues from total sales from the sale of food items for consumption off

the premises. The exceptions to the foregoing requirement, set forth in

subsections 44-4-107(3)(d)(I) and (II), C.R.S., shall apply only if a building permit

or certificate of occupancy for the structure has been applied for or received on

or prior to January 1, 2019.

B.

Nothing within this regulation shall limit the authority of the state licensing

authority to inspect books and records pursuant to Regulation 47-700, 1 C.C.R.

203-2, to verify this affirmation or compliance with this statutory requirement.

Regulation 47-100. Definitions.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), and 44-3-202(2)(a)(I)(R),

C.R.S

the state licensing

authority to inspect books and records pursuant to Regulation 47-700, 1 C.C.R.

203-2, to verify this affirmation or compliance with this statutory requirement.

Regulation 47-100. Definitions.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), and 44-3-202(2)(a)(I)(R),

C.R.S. The purpose of this regulation is to ensure consistent application and

interpretation of common terms within the relevant articles.

As used in these regulations, unless the context otherwise requires:

A.

Repealed.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

4

B.

“Manufacturer” means a Colorado licensed brewery, winery, limited winery,

distillery, vintner’s restaurant, distillery pub or brew pub as defined by section 44-

3-103, C.R.S.

C.

“Nonresident manufacturer” means a Colorado licensee that manufactures malt

liquor or fermented malt beverages outside the state of Colorado and has been

issued a Brewer's Notice by the Alcohol and Tobacco Tax and Trade Bureau.

D.

“On-site product sales promotion” means a sales promotion, featuring a particular

brand of alcohol beverage, that is conducted on a retailer's licensed premises by

an alcohol beverage supplier. On-site product sales promotion may include drink

specials, product sampling and the giveaway of consumer goods.

E.

“Sponsored event” means an event supported in whole or in part by a licensed

supplier that is conducted at a retail licensed establishment.

F.

“Supplier” means a Colorado licensed brewery, winery, distillery, brew pub,

distillery pub, vintner’s restaurant, limited winery, nonresident manufacturer,

wholesaler or importer of alcohol beverages.

G.

“Retailer” or an entity “licensed to sell at retail” means those persons licensed

pursuant to subsections 44-3-401(1)(h) – (t), (v – w), and (y – z), C.R.S., and

subsection 44-4-104(1)(c), C.R.S., to sell alcohol beverages to the end

consumer.

H

ery, distillery, brew pub,

distillery pub, vintner’s restaurant, limited winery, nonresident manufacturer,

wholesaler or importer of alcohol beverages.

G.

“Retailer” or an entity “licensed to sell at retail” means those persons licensed

pursuant to subsections 44-3-401(1)(h) – (t), (v – w), and (y – z), C.R.S., and

subsection 44-4-104(1)(c), C.R.S., to sell alcohol beverages to the end

consumer.

H.

“Unreasonable noise” means a level of noise that violates local noise ordinance

standards, or where no local noise ordinance standard exists, a level of noise

that would violate section 25-12-103, C.R.S.

I.

“Wholesaler” means those entities authorized to sell alcohol beverages at

wholesale to licensed retailers, including wholesalers of fermented malt

beverages, malt liquors, vinous and spirituous liquors, limited wineries, brew

pubs, distillery pubs, and vintner's restaurants.

J.

“Sandwiches” as used in Articles 3 and 5 of Title 44, C.R.S. are defined as

single-serving items such as hamburgers, hot dogs, frozen pizzas, burritos,

chicken wings, or items of a similar nature. “Light snacks” as used in Articles 3

and 5 of Title 44, C.R.S. are defined as popcorn, pretzels, nuts, chips, or items of

a similar nature.

K.

“Colorado Liquor Code” or “Liquor Code” means Article 3 of Title 44, C.R.S.

L.

“Colorado Beer and Wine Code” or “Beer and Wine Code” means Article 4 of

Title 44, C.R.S.

M.

“Special Event Code” means Article 5 of Title 44, C.R.S.

N.

“Colorado Liquor Rules” means this regulatory article, 1 C.C.R. 203-2.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

ilar nature.

K.

“Colorado Liquor Code” or “Liquor Code” means Article 3 of Title 44, C.R.S.

L.

“Colorado Beer and Wine Code” or “Beer and Wine Code” means Article 4 of

Title 44, C.R.S.

M.

“Special Event Code” means Article 5 of Title 44, C.R.S.

N.

“Colorado Liquor Rules” means this regulatory article, 1 C.C.R. 203-2.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

5

O.

“Division” means the State of Colorado Department of Revenue’s Liquor

Enforcement Division, except as provided otherwise.

P.

“Communal Outdoor Dining Area” means an outdoor space that is used for food

and alcohol beverage service by two or more licensees licensed under Article 3

or Article 4 of Title 44, C.R.S., as a:

1.

Tavern;

2.

Hotel and Restaurant;

3.

Brew Pub;

4.

Distillery Pub;

5.

Vintner’s Restaurant;

6.

Beer and Wine Licensee;

7.

Manufacturer that operates a sales room authorized under subsection 44-

3-402(2) or (7), C.R.S.;

8.

Beer wholesaler that operates a sales room under subsection 44-3-

407(1)(b)(I), C.R.S.;

9.

Limited Winery;

10.

Lodging Facility;

11.

Optional Premises;

12.

Fermented Malt Beverage Retailer licensed for consumption on the

premises; or

13.

Entertainment Facility.

Regulation 47-104. Winery Direct Shipper’s Permits.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), and 44-3-104(6), C.R.S. The

purpose of this regulation is to clarify the scope of a winery direct shipper’s permittee’s

privileges.

A.

For purposes of this regulation, the term “permit” or “permittee” means the

natural person or entity holding a winery direct shipper’s permit and any

manager, agent, servant, officer, or employee thereof.

B.

For purposes of this regulation, the term “personal consumer” has the meaning

set forth in section 44-3-103(36), C.R.S.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

ses of this regulation, the term “permit” or “permittee” means the

natural person or entity holding a winery direct shipper’s permit and any

manager, agent, servant, officer, or employee thereof.

B.

For purposes of this regulation, the term “personal consumer” has the meaning

set forth in section 44-3-103(36), C.R.S.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

6

C.

Subject to the requirements and limitations in section 44-3-104, C.R.S., a

permittee may ship or deliver only wine that it produced or bottled to a personal

consumer located in Colorado.

D.

A winery direct shipper’s permittee shall not engage in any in-person sale (as

defined in section 44-3-103(52), C.R.S.) of wine to be shipped or delivered to a

consumer in the State of Colorado, except at the licensed premises of a

permittee’s licensed winery or limited winery, or at an approved sales room of a

licensed winery or limited winery that also has received a winery direct shipper’s

permit.

E.

In-person sales (as defined in section 44-3-103(52), C.R.S.) of wine to be

shipped or delivered to a consumer in the State of Colorado, shall also be

allowed upon the licensed premises associated with a festival permit validly held

by a licensed winery or limited winery.

Regulation 47-200. Petitions for Statements of Position and Declaratory Orders

Concerning the Colorado Liquor Code, Colorado Beer and Wine Code, Special

Event Code, or Colorado Liquor Rules.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-202(1)(b), 44-3-202(2)(a)(I)(R), and 24-4-105(11), C.R.S. The

purpose of this regulation is to establish clear and comprehensive procedures and

considerations required for a statement of position and/or a declaratory order.

A.

Statements of Position. Any person may petition the Division for a statement of

position concerning the applicability to the petitioner of any provision of the

Liquor Code, Beer and Wine Code, Special Event Code, or Colorado Liquor

Rules

rpose of this regulation is to establish clear and comprehensive procedures and

considerations required for a statement of position and/or a declaratory order.

A.

Statements of Position. Any person may petition the Division for a statement of

position concerning the applicability to the petitioner of any provision of the

Liquor Code, Beer and Wine Code, Special Event Code, or Colorado Liquor

Rules. The petition must include the information set forth in paragraph (E)(1)-

(E)(6) of this regulation.

B.

Service of Petition for Statement of Position. A letter for petition for a statement

of position shall be served on the Division by mailing or emailing such petition to

the Division with a copy sent on the same date to the local licensing authority in

the county or municipality where the petitioner’s licensed premises or proposed

licensed premises are located, if applicable. Each petition for a statement of

position shall contain a certification that the service requirements of this

paragraph have been met.

C.

Time to Respond. The Division shall respond to a petition for statement of

position in writing within forty-five (45) days of receiving such petition and set

forth its position and the reasons therefore, or the grounds on which the division

declines to provide a statement of position, pursuant to section 24-4-105(11),

C.R.S., and/or paragraph (G) of this regulation.

D.

Declaratory Orders. Any person who has petitioned the Division for a statement

of position and who is dissatisfied with the statement of position may petition the

state licensing authority within forty-five (45) days of the issuance of the

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

t to section 24-4-105(11),

C.R.S., and/or paragraph (G) of this regulation.

D.

Declaratory Orders. Any person who has petitioned the Division for a statement

of position and who is dissatisfied with the statement of position may petition the

state licensing authority within forty-five (45) days of the issuance of the

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

7

statement of position for a declaratory order pursuant to section 24-4-105(11),

C.R.S. Furthermore, any person who has not received a response within forty-

five (45) days, may petition the state licensing authority for a declaratory order

pursuant to section 24-4-105(11), C.R.S. The parties to any petition for a

declaratory order pursuant to this regulation shall be the petitioner and the

Division.

E.

Requirements for a Petition for a Statement of Position or a Petition for

Declaratory Order. Each petition for a statement of position or petition for a

declaratory order shall set forth the following:

1.

The name and address of the petitioner; whether the petitioner is licensed

pursuant to the Liquor Code, Beer and Wine Code, or Special Events

Code and if so, the type of license or permit and address of the licensed

premises.

2.

The statute, rule, or order to which the petition relates.

3.

A concise statement of all of the facts necessary to show the nature of the

controversy or the uncertainty as to the applicability to the petitioner of the

statute, rule or order to which the petition relates.

4.

A concise statement of the legal authorities if any, and such other reasons

upon which petitioner relies.

5.

A concise statement of the statement of position or declaratory order

sought by the petitioner.

6.

The Statement of Position previously issued if the petitioner is filing a

Petition for a Declaratory Order.

F.

Service of Petition for Declaratory Order

order to which the petition relates.

4.

A concise statement of the legal authorities if any, and such other reasons

upon which petitioner relies.

5.

A concise statement of the statement of position or declaratory order

sought by the petitioner.

6.

The Statement of Position previously issued if the petitioner is filing a

Petition for a Declaratory Order.

F.

Service of Petition for Declaratory Order. A petition for a declaratory order shall

be served on the state licensing authority by mailing such petition to the state

licensing authority with a copy of the petition sent on the same date to the

Division, the local licensing authority in the county or municipality where the

petitioner’s licensed premises or proposed licensed premises are located, and to

the Revenue & Utilities Section of the Colorado Department of Law. Each petition

for a declaratory order shall contain a certification that the service requirements

of this paragraph have been met.

G.

Acceptance. The Division will determine whether to entertain any petition for

statement of position. The state licensing authority will determine whether to

entertain any petition for declaratory order. If either the Division or the state

licensing authority decides it will not entertain a petition, it shall promptly notify

the petitioner in writing of its decision and the reasons for that decision. Any of

the following grounds may be sufficient reason to refuse to entertain a petition:

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

tition for declaratory order. If either the Division or the state

licensing authority decides it will not entertain a petition, it shall promptly notify

the petitioner in writing of its decision and the reasons for that decision. Any of

the following grounds may be sufficient reason to refuse to entertain a petition:

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

8

1.

For a petition for declaratory order, the petitioner has failed to petition the

Division for a statement of position, or if a statement of position has been

issued, the petition for declaratory order was filed with the state licensing

authority more than forty-five (45) days after issuance of the statement of

position.

2.

A ruling on the petition will not terminate the controversy nor remove

uncertainties concerning the applicability to petitioner of the statute, rule or

order in question.

3.

The petition involves a subject, question or issue which is currently

involved in a court action, an administrative action before the state or any

local licensing authority, ongoing investigation conducted by the Division

or a written complaint filed with the state licensing authority or Division.

4.

The petition seeks a ruling on a moot or hypothetical question, having no

applicability to the petitioner.

5.

Petitioner has some other adequate legal remedy, other than an action for

declaratory relief pursuant to Colo.R.Civ.P. 57, which will terminate the

controversy or remove any uncertainty concerning applicability of the

statute, rule or order.

6.

The petitioner failed to properly serve the petition pursuant to this

regulation.

7.

The petitioner failed to include information required in paragraph (E) of this

regulation.

H.

Determination. If the state licensing authority determines that it will entertain the

petition for declaratory order, it shall promptly so notify all parties involved, and

the following procedures shall apply:

1

order.

6.

The petitioner failed to properly serve the petition pursuant to this

regulation.

7.

The petitioner failed to include information required in paragraph (E) of this

regulation.

H.

Determination. If the state licensing authority determines that it will entertain the

petition for declaratory order, it shall promptly so notify all parties involved, and

the following procedures shall apply:

1.

The state licensing authority may expedite the hearing, where the interests

of the petitioner will not be substantially prejudiced thereby, by ruling on

the basis of the facts and legal authority presented in the petition, or by

requesting the petitioner or the Division to submit additional evidence and

legal argument in writing. Any such request for additional information shall

be served on all parties.

2.

If the state licensing authority determines that an evidentiary hearing or

legal argument is necessary to a ruling on the petition, the state licensing

authority shall issue a Notice to Set to all parties and on the date so set, a

hearing shall be conducted in conformance with section 24-4-105, C.R.S.

3.

In ruling on a petition for declaratory order, the state licensing authority

may take administrative notice of general, technical or scientific facts

within its knowledge, so long as the fact is specified in the record or is

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

9

brought to the attention of the parties before final decision and every party

is afforded an opportunity to controvert the fact so noticed.

4.

Every declaratory order shall be promptly decided and issued in writing,

specifying the basis in fact and law for the order.

5.

Any other interested person may seek leave of the state licensing

authority to intervene in the proceeding and such leave may be granted if

the licensing authority determines that such intervention will make

unnecessary a separate petition for declaratory order by the interested

person.

6

order shall be promptly decided and issued in writing,

specifying the basis in fact and law for the order.

5.

Any other interested person may seek leave of the state licensing

authority to intervene in the proceeding and such leave may be granted if

the licensing authority determines that such intervention will make

unnecessary a separate petition for declaratory order by the interested

person.

6.

A declaratory order shall constitute final agency action subject to judicial

review pursuant to section 24-4-106, C.R.S.

I.

Record Retention and Reliability. Files of all requests, statements of position, and

declaratory orders will be maintained and relied upon by the Division for a period

of five (5) years, unless the statement of position or declaratory order is

superseded by a statutory or regulatory change, amended by the Division, or

amended or reversed by the state licensing authority. Except with respect to any

material required by law to be kept confidential, such files shall be available for

public inspection.

Regulation 47-300. Change in Class of License.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-202(1)(a), 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), and 44-3-

202(2)(a)(I)(R), C.R.S. The purpose of this regulation is to establish procedures for a

licensee requesting to change its license class, and provide clarity regarding a

licensee’s status pending this change.

A.

A request for a change in the class of license from that presently held by a

licensee shall be considered an application for a new license and subject to the

requirements of sections 44-3-311, C.R.S and 44-3-313, C.R.S.

B.

Repealed.

C.

A new application to change the class of license shall not prohibit a licensee from

operating under the terms and conditions of the old license, while its application

for change in class is pending

ss of license from that presently held by a

licensee shall be considered an application for a new license and subject to the

requirements of sections 44-3-311, C.R.S and 44-3-313, C.R.S.

B.

Repealed.

C.

A new application to change the class of license shall not prohibit a licensee from

operating under the terms and conditions of the old license, while its application

for change in class is pending. Upon issuance of the new license, the licensee

may continue the sale of the alcohol beverage inventory that was purchased

under the old license, as long as the new license authorizes the sale of the same

type of alcohol beverages. However, nothing herein shall authorize a licensee to

sell a type of alcohol beverage unless specifically authorized to do so by the

license it holds.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

10

Regulation 47-301. Undue Concentration of Licenses.

Basis and Purpose. The statutory authority for this regulation is located at subsections

44-3-202(1)(b) and 44-3-202(2)(a)(I)(F), C.R.S. The purpose of this regulation is to

establish factors the licensing authority may consider when determining whether certain

new licenses would result in an undue concentration of the same license type in making

such a determination pursuant to section 44-3-301(2)(b), C.R.S.

A.

For purposes of determining if the issuance of a new tavern or retail liquor store

license would result in or add to an undue concentration of the same class of

license and, as a result, require the use of additional law enforcement resources,

the state or local licensing authority may consider factors, including, but not

limited to:

1.

Whether the ratio of the number of tavern or retail liquor store licenses

within the county or counties of the neighborhood to be served where

application has been made to the county or counties population exceeds

the ratio of the statewide number of licenses of the same class to the state

population;

2

the state or local licensing authority may consider factors, including, but not

limited to:

1.

Whether the ratio of the number of tavern or retail liquor store licenses

within the county or counties of the neighborhood to be served where

application has been made to the county or counties population exceeds

the ratio of the statewide number of licenses of the same class to the state

population;

2.

Whether the ratio of the number of tavern or retail liquor store licenses

within the census tract or census division in the neighborhood in which the

applicant premises are located to the population of the census tract or

division exceeds the ratio of number of licenses of the same class in the

county or municipality to the population of the county or municipality where

application has been made;

3.

The distance between the applicant premises and the premises of other

holders of the same class of license;

4.

Published data concerning the concentration of tavern or retail liquor store

licenses and its effect on the need for law enforcement resources; and

5.

Testimony concerning the use of law enforcement resources by law

enforcement officials with the responsibility for enforcing state or local law

in the area in which the applicant premises are located.

B.

For purposes of this regulation:

1.

The number of tavern and retail liquor store licenses within a given area

shall be as published by the state licensing authority;

2.

The population shall be the estimate published by the most recent United

States decennial or special census (for state, census tract, and census

division data) or the most recent estimates published by the Department of

Local Affairs (for county and municipal data).

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

e as published by the state licensing authority;

2.

The population shall be the estimate published by the most recent United

States decennial or special census (for state, census tract, and census

division data) or the most recent estimates published by the Department of

Local Affairs (for county and municipal data).

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

11

3.

“Neighborhood” shall be that area as required pursuant to 44-3-312(2)(a),

C.R.S.

Regulation 47-302. Changing, Altering, or Modifying Licensed Premises.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(D), and 44-3-

202(2)(a)(I)(R), C.R.S. The purpose of this regulation is to establish procedures for a

licensee seeking to make material or substantial alterations to the licensed premises,

and provide factors the licensing authority must consider when evaluating such

alterations for approval or rejection.

A.

After issuance of a license, the licensee shall make no physical change,

alteration or modification of the licensed premises that materially or substantially

alters the licensed premises or the usage of the licensed premises from the latest

approved plans and specifications on file with the state and local licensing

authorities without application to, and the approval of, the respective licensing

authorities. For purposes of this regulation, physical changes, alterations or

modifications of the licensed premises, or in the usage of the premises requiring

prior approval, shall include, but not be limited to, the following:

1.

Any increase or decrease in the total size or capacity of the licensed

premises.

2.

The sealing off, creation of or relocation of a common entryway, doorway,

passage or other such means of public ingress and/or egress, when such

common entryway, doorway or passage alters or changes the sale or

distribution of alcohol beverages within the licensed premises.

3

ut not be limited to, the following:

1.

Any increase or decrease in the total size or capacity of the licensed

premises.

2.

The sealing off, creation of or relocation of a common entryway, doorway,

passage or other such means of public ingress and/or egress, when such

common entryway, doorway or passage alters or changes the sale or

distribution of alcohol beverages within the licensed premises.

3.

Any substantial or material enlargement of a bar, relocation of a bar, or

addition of a separate bar. However, the temporary addition of bars or

service areas to accommodate seasonal operations shall not require prior

approval unless the additional service areas are accompanied by an

enlargement of the licensed premises.

4.

An outside service area located on a property owned by a municipality, a

city and county, or the unincorporated area of a county, and that the

licensee possesses in accordance with subsection (B)(2) of this

regulation, may be approved by the state and local licensing authorities

upon the annual filing of a modification of premises application, due at the

time of initial application or at the time of renewal, on a form approved by

the State Licensing Authority, and payment of the associated modification

of licensed premises fee as set forth in Regulation 47-506, provided that:

a.

The proposed outside service area located on property owned by

the municipality, city and county, or unincorporated areas of a

county, is immediately adjacent to the licensed premises;

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

g Authority, and payment of the associated modification

of licensed premises fee as set forth in Regulation 47-506, provided that:

a.

The proposed outside service area located on property owned by

the municipality, city and county, or unincorporated areas of a

county, is immediately adjacent to the licensed premises;

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

12

b.

The licensed premises, as temporarily modified, will comprise a

definite contiguous area;

c.

Plans and specifications identifying the outside service area,

including dates of seasonal operation (if applicable), accompany

the form and fee;

d.

Licensees shall maintain records of the dates alcohol service

occurs on the outside service area if such space is used seasonally

or sporadically, and must provide records to the Division upon

request; and

e.

All outside service areas are closed to motor vehicle traffic by

physical barriers during all times that alcohol service occurs.

5.

Any material change in the interior of the premises that would affect the

basic character of the premises or the physical structure detailed in the

latest approved plans and specifications on file with the state and local

licensing authorities. However, the following types of modifications will not

require prior approval, even if a local building permit is required: painting

and redecorating of premises; the installation or replacement of electric

fixtures or equipment, plumbing, refrigeration, air conditioning or heating

fixtures and equipment; the lowering of ceilings; the installation and

replacement of floor coverings; the replacement of furniture and

equipment; and any non-structural remodeling where the remodel does

not expand or reduce the existing area designed for the display or sale of

alcohol beverage products.

6

ment of electric

fixtures or equipment, plumbing, refrigeration, air conditioning or heating

fixtures and equipment; the lowering of ceilings; the installation and

replacement of floor coverings; the replacement of furniture and

equipment; and any non-structural remodeling where the remodel does

not expand or reduce the existing area designed for the display or sale of

alcohol beverage products.

6.

The destruction or demolition, and subsequent reconstruction, of a

building that contained the retailer’s licensed premises shall require the

filing of new building plans with the local licensing authority, or in the case

of manufacturers and wholesalers, with the state licensing authority.

However, reconstruction shall not require an application to modify the

premises unless the proposed plan for the newly-constructed premises

materially or substantially alters the licensed premises or the usage of the

licensed premises from the plans and specifications detailed in the latest

approved plans and specifications on file with the state and local licensing

authorities.

7.

Nothing herein shall prohibit a licensee from modifying its licensed

premises to include in the licensed premises a public thoroughfare, if the

following conditions are met:

a.

The licensee has been granted an easement for the public

thoroughfare for the purpose of transporting alcohol beverages;

b.

The licensee has been granted an easement for the public

thoroughfare for the purpose of transporting alcohol beverages;

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

d premises a public thoroughfare, if the

following conditions are met:

a.

The licensee has been granted an easement for the public

thoroughfare for the purpose of transporting alcohol beverages;

b.

The licensee has been granted an easement for the public

thoroughfare for the purpose of transporting alcohol beverages;

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

13

c.

The inclusion of the public thoroughfare is solely for the purpose of

transporting alcohol beverages between licensed areas, and no

sale or consumption will occur on or within the public thoroughfare;

and

d.

Any other conditions as established by the local licensing authority.

8.

The addition of a noncontiguous location to the licensed premises of a

winery, limited winery, distillery, or brewery licensed pursuant to sections

44-3-402 or 44-3-403, C.R.S.

9.

Modification of the licensed premises to include a communal outdoor

dining area, subject to the requirements of section 44-3-912, C.R.S., and

Regulation 47-1103.

B.

In making its decision with respect to any proposed changes, alterations or

modifications, the licensing authority must consider whether the premises, as

changed, altered or modified, will meet all of the pertinent requirements of the

Liquor or Beer and Wine Codes and related regulations. Factors to be taken into

account by the licensing authority shall include, but not be limited to, the

following:

1.

The reasonable requirements of the neighborhood and the desires of the

adult inhabitants.

2.

The possession, by the licensee, of the changed premises by ownership,

lease, rental or other arrangement.

3.

Compliance with the applicable zoning laws of the municipality, city and

county or county.

4.

Compliance with the distance prohibition in regard to any public or

parochial school or the principal campus of any college, university, or

seminary.

5

and the desires of the

adult inhabitants.

2.

The possession, by the licensee, of the changed premises by ownership,

lease, rental or other arrangement.

3.

Compliance with the applicable zoning laws of the municipality, city and

county or county.

4.

Compliance with the distance prohibition in regard to any public or

parochial school or the principal campus of any college, university, or

seminary.

5.

The legislative declaration that the Liquor and Beer and Wine Codes are

an exercise of the police powers of the state for the protection of the

economic and social welfare and the health, peace, and morals of the

people of this state.

C.

If permission to change, alter or modify the licensed premises is denied, the

licensing authority shall give notice in writing and shall state grounds upon which

the application was denied. The licensee shall be entitled to a hearing on the

denial if a request in writing is made to the licensing authority within fifteen (15)

days after the date of notice.

D.

This regulation shall be applicable to the holder of a manufacturer's license as

specifically defined in Section 44-3-402, C.R.S., or a limited winery defined in

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

14

section 44-3-403, C.R.S., only if the physical change, alteration, or modification

involves any increase or decrease in the total size of the licensed premises,

including the addition of a noncontiguous location to the licensed premises of a

winery, limited winery, distillery, or brewery licensed pursuant to sections 44-3-

402 or 44-3-403, C.R.S. Except, any change, alteration, or modification of a sales

room, shall be reported in accordance with subsection (A).

E

r modification

involves any increase or decrease in the total size of the licensed premises,

including the addition of a noncontiguous location to the licensed premises of a

winery, limited winery, distillery, or brewery licensed pursuant to sections 44-3-

402 or 44-3-403, C.R.S. Except, any change, alteration, or modification of a sales

room, shall be reported in accordance with subsection (A).

E.

The state licensing authority shall not impose any additional fees for the

processing or review of an application for a modification of premises for the

holder of a manufacturer’s license, except for applications to modify the premises

through the addition of a noncontiguous location to the licensed premises of a

winery, limited winery, distillery, or brewery licensed pursuant to sections 44-3-

402 or 44-3-403, C.R.S.

Regulation 47-303. License Renewal.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-202(1)(b), 44-3-202(2)(a)(I)(C), 44-3-202(2)(a)(I)(D), 44-3-

202(2)(a)(I)(R), 44-3-302, 44-3-501, and 44-4-105, C.R.S. The purpose of this

regulation is to clarify and establish procedures and deadlines for a licensee that is

applying to renew its license in accordance with section 44-3-302, C.R.S.

A.

No one other than the license holder, or their duly-authorized representative, may

file an application to renew the license with local and state licensing authorities.

B.

At least ninety (90) days before the expiration date of an existing license, the

State Licensing Authority shall notify the licensee of the expiration date by

sending notice to the most recently provided email address and/or mailing

address for the licensee.

C.

A complete renewal application shall include evidence that the licensee remains

in possession of the licensed premises by ownership, lease, rental, or other

arrangement at the time of application

n existing license, the

State Licensing Authority shall notify the licensee of the expiration date by

sending notice to the most recently provided email address and/or mailing

address for the licensee.

C.

A complete renewal application shall include evidence that the licensee remains

in possession of the licensed premises by ownership, lease, rental, or other

arrangement at the time of application. An agreement that may lapse within the

new license year neither automatically disqualifies the licensee from renewing,

nor automatically invalidates the license. However, this provision does not

preclude the state or local licensing authority from initiating any action as

provided by law to suspend or revoke a license for loss of possession of the

licensed premises.

D.

Nothing herein authorizes a licensee to purchase, sell, or serve alcohol

beverages with an expired license, except as authorized in subparagraphs (E),

(F)(2), and (G)(3) of this regulation. Licensed privileges are not restored until and

unless the applicable requirements of subparagraph (F)(2) and/or (G)(3) of this

regulation are met.

E.

Application for the renewal of an existing license shall be made to the local

licensing authority not less than forty-five (45) days prior to the date of expiration

and to the state licensing authority not less than thirty (30) days prior to the date

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

of subparagraph (F)(2) and/or (G)(3) of this

regulation are met.

E.

Application for the renewal of an existing license shall be made to the local

licensing authority not less than forty-five (45) days prior to the date of expiration

and to the state licensing authority not less than thirty (30) days prior to the date

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

15

of expiration. The state or local licensing authority may waive these requirements

for good cause. Once an application for renewal has been filed with the local

licensing authority, or the state licensing authority for state only licenses, the

licensee may continue to operate until final agency action.

F.

License expired for not more than ninety (90) days.

1.

A licensee whose license has not been expired for more than ninety (90)

days may file a late renewal application upon the payment of a non-

refundable late application fee to the local licensing authority, and/or the

state licensing authority.

2.

A licensee who files a late renewal application and pays the requisite fees

may resume operation until the state and/or local licensing authorities

have taken final agency action to approve or deny such licensee’s late

renewal application.

G.

License expired for more than ninety (90) days, but less than one hundred eighty

(180) days.

1.

Any licensee whose license has been expired more than ninety (90) but

less than one hundred eighty (180) days, may submit to the local licensing

authority, or state licensing authority for state only licenses, an application:

a.

For a new license, subject to section 44-3-301, C.R.S., or

b.

For a reissued license, subject to subsection 44-3-302(2)(d), C.R.S.

2.

The local licensing authority, or state licensing authority for state-only

licenses, shall have sole discretion to determine whether to allow a

licensee to apply for a reissued license

thority, or state licensing authority for state only licenses, an application:

a.

For a new license, subject to section 44-3-301, C.R.S., or

b.

For a reissued license, subject to subsection 44-3-302(2)(d), C.R.S.

2.

The local licensing authority, or state licensing authority for state-only

licenses, shall have sole discretion to determine whether to allow a

licensee to apply for a reissued license. If the local licensing authority, or

state licensing authority for state-only licenses, does not allow the licensee

to apply for a reissued license, then the licensee must apply for a new

license.

3.

A licensee applying for a reissued license may resume operation pending

final agency action by all of the relevant licensing authorities to approve or

deny the licensee’s application only if:

a.

The local licensing authority, or state licensing authority for state-

only licensee, allows the licensee to apply for a reissued license;

b.

The licensee submits the application, along with payment for the

required fees and fines, to the local licensing authority or the state

licensing authority for state- only licensees; and

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

16

c.

The local licensing authority, or the state licensing authority for

state-only licenses, accepts the reissued license application and

required fees and fines.

H.

Any licensee whose license has been expired for one hundred eighty (180) days

or more must apply for a new license pursuant to section 44-3-311, C.R.S., and

shall not purchase or sell any alcohol beverage until all required licenses have

been obtained, unless otherwise authorized under these regulations.

I

tate-only licenses, accepts the reissued license application and

required fees and fines.

H.

Any licensee whose license has been expired for one hundred eighty (180) days

or more must apply for a new license pursuant to section 44-3-311, C.R.S., and

shall not purchase or sell any alcohol beverage until all required licenses have

been obtained, unless otherwise authorized under these regulations.

I.

A licensee that is in lawful possession of its alcohol beverage inventory at the

time it receives approval from the local licensing authorities for an application for

the late license renewal pursuant to paragraph (F) of this regulation, or for an

application for new license of reissued license pursuant to paragraph (G) of this

regulation, may continue to possess its alcohol beverage inventory.

J.

For the purposes of biennial licensure, a licensee in good standing may apply to

renew its state license on a two-year basis, only needing to file the license

renewal paperwork in the first year. However, applicable fees required by

subsections 44-3-501(1) and (3), 44-3-505(1), C.R.S., and Regulation 47-506,

shall be paid annually as provided in subsection 44-3-302(3)(b), C.R.S. The first

payment must be submitted with the application to renew the license for a two-

year period. To aid the licensee to remember the obligation to pay applicable

fees annually, the division will send notice to the licensee that the license is set to

expire in the following ninety (90) days, pursuant to subsection 44-3-302(1)(a),

C.R.S., each year. The licensee must make the second payment in the following

State of Colorado fiscal year, which runs from July 1 through June 30, but prior to

the expiration of the license. Failure of the licensee to timely make the second

payment may result in discipline of the license, which may include an

administrative action, fine, suspension or revocation of the license, and the

licensee will no longer be considered to be in good standing as defined in

subparagraph (J)(1) of this regulation.

1

, which runs from July 1 through June 30, but prior to

the expiration of the license. Failure of the licensee to timely make the second

payment may result in discipline of the license, which may include an

administrative action, fine, suspension or revocation of the license, and the

licensee will no longer be considered to be in good standing as defined in

subparagraph (J)(1) of this regulation.

1.

For purposes of this regulation, the term “good standing” means a

licensee that:

a.

Has not been found, in a final agency action, to be in violation of

Articles 3, 4, or 5 of Title 44 C.R.S., or any regulations promulgated

pursuant thereto, in the 365 days period before applying to renew

the license on a two (2) year basis;

b.

Maintains a license that has not expired;

c.

Has paid all fines and fees owed to the state licensing authority and

the local licensing authority;

d.

Has paid their annual license fee for their biennial license in

consecutive fiscal years (July 1- June 30); and

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

17

e.

Has not been found to be currently delinquent in the payment of

any state or local taxes related to a business.

2.

A licensee that falls out of good standing automatically has its biennial

renewal privilege revoked and must apply for a license renewal on an

annual basis. A licensee that loses its good standing status may not be

granted biennial renewal for two (2) calendar years.

3.

An application for biennial renewal shall be completed on a form

prescribed by the state licensing authority.

a.

Once a licensee is granted biennial renewal, the licensee shall

continue to renew biennially unless the licensee falls out of good

standing.

Regulation 47-304. Transfer of Ownership and Changes in Licensed Entities.

Basis and Purpose

anted biennial renewal for two (2) calendar years.

3.

An application for biennial renewal shall be completed on a form

prescribed by the state licensing authority.

a.

Once a licensee is granted biennial renewal, the licensee shall

continue to renew biennially unless the licensee falls out of good

standing.

Regulation 47-304. Transfer of Ownership and Changes in Licensed Entities.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-107(1), 44-3-202(1)(a), 44-3-202(1)(b), 44-3-

202(2)(a)(I)(A), 44-3-202(2)(a)(I)(J), 44-3-202(2)(a)(I)(O), 44-3-202(2)(a)(I)(R), 44-3-

301(3)(a)(I), 44-3-301(7), 44-3-303(1)(c), 44-3-303(3)(b), 44-3-308, 44-3-409(6), and

44-3-409(7), C.R.S. The purpose of this regulation is to establish reporting and

disclosure requirements for the identification of applicants, licensees, and their relevant

financial interests to promote transparency and prevent the occurrence of statutorily

prohibited financial interests between the manufacturing, wholesale, and retail tiers.

A.

Corporations

1.

If the applicant for any license under Articles 3 or 4 of Title 44 is a

corporation, it shall submit with the application, the names, addresses,

and individual history records of all of its principal officers, directors, or

managers, and a copy of its articles of incorporation or articles of

organization; and if a foreign entity, evidence of its qualification to do

business within this state. In addition, each applicant shall submit the

names, addresses, and individual history records of all persons owning

ten percent (10%) or more of the outstanding or issued capital stock, or

persons holding a ten percent (10%) or more membership interest.

2

articles of incorporation or articles of

organization; and if a foreign entity, evidence of its qualification to do

business within this state. In addition, each applicant shall submit the

names, addresses, and individual history records of all persons owning

ten percent (10%) or more of the outstanding or issued capital stock, or

persons holding a ten percent (10%) or more membership interest.

2.

Any transfer of capital stock or any change in principal officers or directors

of any corporation holding a license under the provisions of the Liquor or

Beer and Wine Codes and which is not subject to the reporting

requirements of the Securities and Exchange Act of 1934, as amended,

shall be reported to the respective licensing authorities within thirty (30)

days after such transfer or change. With the report, the licensee shall

submit the names, addresses, and individual history records for any new

officer, director, or stockholder acquiring ten percent (10%) or more

outstanding capital stock, as well as the corporate minutes verifying the

transactions. Licensees that are subject to the Securities and Exchange

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

18

Act of 1934, as amended, shall be required to do the same, except that

they shall not be required to report any single transfer of outstanding

capital stock of less than ten percent (10%).

3.

Any transfer of membership interest or any change in managers of any

limited liability company holding a license shall be reported to the

respective licensing authorities within thirty (30) days after such transfer or

change. With the report, the licensee shall submit the names, addresses,

and individual history records for any new manager, or member acquiring

ten percent (10%) or more membership interest.

B.

Partnerships

1

interest or any change in managers of any

limited liability company holding a license shall be reported to the

respective licensing authorities within thirty (30) days after such transfer or

change. With the report, the licensee shall submit the names, addresses,

and individual history records for any new manager, or member acquiring

ten percent (10%) or more membership interest.

B.

Partnerships

1.

If the applicant for any license under Articles 3 or 4 of Title 44 is a general

partnership, limited partnership, limited liability partnership, or limited

liability limited partnership, it shall submit with the application the names,

addresses, and individual history records of all of its general or managing

partners, and a copy of its partnership agreement; and, if a foreign entity,

evidence of its qualification to do business within this state. In addition,

each applicant shall submit the names, addresses, and individual history

records of any other partner holding a ten percent (10%) or more

partnership interest.

2.

Any transfer of partnership interest or any change in general or managing

partners of any partnership holding a license shall be reported to the

respective licensing authorities within thirty (30) days after such transfer or

change. With the report, the licensee shall submit the names, addresses,

and individual history records for any new general or managing partner, or

any other partner holding ten percent (10%) or more partnership interest.

C.

Municipalities and Other Governmental Entities

1

hip holding a license shall be reported to the

respective licensing authorities within thirty (30) days after such transfer or

change. With the report, the licensee shall submit the names, addresses,

and individual history records for any new general or managing partner, or

any other partner holding ten percent (10%) or more partnership interest.

C.

Municipalities and Other Governmental Entities

1.

If the applicant for any license under Articles 3 or 4 of Title 44 is a

municipality or other governmental entity, it shall submit with the

application the name, address and individual history record of at least one

member of its governing body, or at least one person hired or appointed

by its governing body, to serve as an officer or director; except that,

pursuant to subsection 44-3-107(1), C.R.S., a person who has an interest

in a liquor license may not be listed as an officer or director on a license

owned, or to be owned, by a municipality or other governmental entity if

that person individually manages or receives any direct financial benefit

from the operation of such license. If the governing body of a municipality

or other governmental entity hires or appoints more than one officer or

director, the name, address, and individual history record of each such

officer or director shall be submitted with the application.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

19

2.

Any change in the officers or directors of a license held by a municipality

or other governmental entity shall be reported to the respective licensing

authorities within thirty (30) days after such change. With the report, the

licensee shall submit the names, addresses, and individual history records

for any new officers or directors.

D.

Entity Conversions

1.

Any licensee that qualifies for an entity conversion pursuant to section 7-

90-201, C.R.S., et

d by a municipality

or other governmental entity shall be reported to the respective licensing

authorities within thirty (30) days after such change. With the report, the

licensee shall submit the names, addresses, and individual history records

for any new officers or directors.

D.

Entity Conversions

1.

Any licensee that qualifies for an entity conversion pursuant to section 7-

90-201, C.R.S., et. seq., or similar law enacted by other states, shall not

be required to file a transfer of ownership application pursuant to section

44-3-303, C.R.S., upon statutory conversion, but shall submit a report

containing suitable evidence of conversion within thirty (30) days of such

conversion. Such evidence shall include, but not be limited to, recognition

of conversion by the Colorado Secretary of State. In addition, within thirty

(30) days of the conversion, the licensee shall submit the names,

addresses, and individual history records of any new officers, directors,

managers, general or managing partners, and all persons having an

ownership interest of ten percent (10%) or more.

E.

All reports required by this regulation shall be made on forms supplied by the

Division.

F.

For all applicants for the issuance of a license by reason of a transfer of

possession of the licensed premises by methods to include operation of law, a

petition in bankruptcy pursuant to federal bankruptcy law, the appointment of a

receiver, a foreclosure action by a secured party, or a court order dispossessing

the prior licensee of all rights of possession pursuant to Article 40 of Title 13,

C.R.S., the licensing authorities shall consider the requirements of subsection

44-3-303(1)(c)(I), C.R.S. The loss of possession of the licensed premises by the

licensee does not in itself automatically invalidate, cancel, or terminate the

underlying license. This provision does not prohibit a licensing authority from

initiating any action as provided by law to suspend or revoke a license for loss of

possession of the licensed premises.

G

nsider the requirements of subsection

44-3-303(1)(c)(I), C.R.S. The loss of possession of the licensed premises by the

licensee does not in itself automatically invalidate, cancel, or terminate the

underlying license. This provision does not prohibit a licensing authority from

initiating any action as provided by law to suspend or revoke a license for loss of

possession of the licensed premises.

G.

No application for a transfer of ownership may be received or acted upon by

either the state or local licensing authority if the previous licensee has

surrendered its license and had it canceled by either authority prior to submission

of the transfer application. In cases where cancellation has occurred prior to the

submission of a transfer of ownership application, the license applicant shall

follow the procedures for a new license application pursuant to section 44-3-311,

C.R.S.

H.

Transfer of alcohol beverage inventory between retail liquor store licenses, when

a selling licensee will surrender or transfer its license, pursuant to subsections

44-3-409(6) and (7), C.R.S.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

20

1.

As used in this paragraph (H), an “acquiring licensee” means a licensed

retail liquor store purchasing or attempting to purchase the inventory of a

selling licensee. A “selling licensee” means a licensed retail liquor store

that is surrendering its license.

2.

Transfer of a retail liquor store license and the alcohol beverage inventory

to another retail liquor store pursuant to subsections 44-3-409(6) and (7),

C.R.S.

a.

An acquiring licensee that purchases the alcohol beverage

inventory of a selling licensee, subject to approval from the state

and local licensing authorities, may also apply for a transfer of

ownership for the selling licensee’s retail liquor store license if the

acquiring licensee is eligible to obtain additional retail liquor store

licenses pursuant to subsection 44-3-409(4)(b)(iii), C.R.S.;

i

.

An acquiring licensee that purchases the alcohol beverage

inventory of a selling licensee, subject to approval from the state

and local licensing authorities, may also apply for a transfer of

ownership for the selling licensee’s retail liquor store license if the

acquiring licensee is eligible to obtain additional retail liquor store

licenses pursuant to subsection 44-3-409(4)(b)(iii), C.R.S.;

i.

Upon approval of a transfer of ownership, a separate retail

liquor store license will be issued to the acquiring licensee

pursuant to subsections 44-3-301(3)(a)(i), and 44-3-

409(6)(f)(ii), C.R.S.

3.

Transfer of a retail liquor store’s alcohol beverage inventory only:

a.

For a selling licensee that only sells its entire alcohol beverage

inventory to the acquiring licensee pursuant to subsection 44-3-

409(6), C.R.S., but does not transfer ownership of its retail liquor

store license pursuant to subsection 44-3-409(7), C.R.S., the

selling licensee’s retail liquor store license shall be considered

canceled, invalid, and surrendered. Neither the state nor local

licensing authorities shall issue a new retail liquor store license at

the location or within 1,500 feet of the location of the canceled,

invalidated, or surrendered retail liquor store license for the next

five (5) years after the date the retail liquor store license is

canceled, invalidated, or considered surrendered.

3.5

Transport of the alcohol beverage inventory

a.

The acquiring licensee must transport the alcohol beverage

inventory from the selling licensee and may only transport the

alcohol beverages to the acquiring licensee’s licensed premises or

to one of the other licensed premises owned by the acquiring

licensee.

3.6

Costs associated with the alcohol beverage inventory for purposes of

below cost sales

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

nsport the alcohol beverage

inventory from the selling licensee and may only transport the

alcohol beverages to the acquiring licensee’s licensed premises or

to one of the other licensed premises owned by the acquiring

licensee.

3.6

Costs associated with the alcohol beverage inventory for purposes of

below cost sales

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

21

a.

For the purposes of enforcing the prohibition on below-cost sales

as set forth in Regulation 47-321 and Regulation 47-322(A), the

acquiring licensee shall not sell an alcohol beverage product below

the retailer’s cost. For purposes of this regulation, the retailer's cost

is defined pursuant to subsection 44-3-409(6)(b)(II), C.R.S.

i.

The acquiring licensee shall retain records, including but not

limited to invoices or copies of invoices, showing that the

amount the selling licensee charged and the acquiring

licensee paid complied with subsection 44-3-409(6)(b)(II),

C.R.S.

4.

Notice to state and local licensing authorities

a.

Both the selling licensee and the acquiring licensee shall give

notice to the state and local licensing authorities of the sale or

transfer of the inventory not less than fifteen (15) days before the

sale occurs.

b.

For sales or transfers of alcohol beverage inventory pursuant to

subparagraph (H)(2) or (H)(3) of this regulation, prior to or at the

time of removing the acquired alcohol beverages from the selling

licensee, the acquiring licensee shall provide notice to the Division

and local licensing authority of the specific alcohol beverage

inventory transported to the licensed premises of and/or to any

other licensed premises owned by the acquiring licensee,

specifying which alcohol beverages were transported to each such

licensed premises.

5.

Notice to wholesalers and satisfaction of debt.

a

e selling

licensee, the acquiring licensee shall provide notice to the Division

and local licensing authority of the specific alcohol beverage

inventory transported to the licensed premises of and/or to any

other licensed premises owned by the acquiring licensee,

specifying which alcohol beverages were transported to each such

licensed premises.

5.

Notice to wholesalers and satisfaction of debt.

a.

The notification to every wholesaler that sold alcohol beverages to

the selling licensee within the prior four (4) months from the sale of

the alcohol beverage inventory, as required under subsection 44-3-

409(6)(d)(I), C.R.S., must occur at least thirty (30) days prior to the

alcohol beverage inventory sale. A copy of the notification provided

to the wholesaler must be submitted to the state and local licensing

authorities with the notice set forth in subsection 44-3-406(6)(c),

C.R.S.

i.

The notice to the wholesaler shall be made by certified mail,

electronic mail, or by another method agreed to in writing

between the wholesaler and selling licensee.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

22

b.

Within fifteen (15) business days after receiving the notice sent

pursuant to subparagraph (H)(5)(a) of this rule, a wholesaler shall

notify the acquiring licensee and the selling licensee of any

outstanding debt owed by the selling licensee to the wholesaler for

the products being sold or transferred.

c.

If an acquiring licensee receives notice of an outstanding debt

owed by the selling licensee pursuant to subparagraph (H)(5)(b) of

this rule, the acquiring licensee shall first satisfy the selling

licensee's debt with the wholesaler. The acquiring licensee shall

pay any remaining money owed for the purchased inventory after

payment has been made to any wholesalers that notified the

acquiring licensee in a manner consistent with the agreement

between the selling licensee and the acquiring licensee.

d

subparagraph (H)(5)(b) of

this rule, the acquiring licensee shall first satisfy the selling

licensee's debt with the wholesaler. The acquiring licensee shall

pay any remaining money owed for the purchased inventory after

payment has been made to any wholesalers that notified the

acquiring licensee in a manner consistent with the agreement

between the selling licensee and the acquiring licensee.

d.

If agreed to by the selling licensee and wholesaler, the selling

licensee may return all or a portion of the selling licensee's

inventory to the wholesaler from which it purchased the selling

licensee's inventory in lieu of a monetary payment to satisfy

outstanding debt owed to the wholesaler pursuant to Regulation 47-

322(G)(3)(h).

i.

Should the wholesaler accept a return of all or a portion of

the inventory of the selling licensee, the selling licensee

must report this transfer of product to the state and local

licensing authority in writing prior to or at the time that the

inventory is removed from the selling licensee.

Regulation 47-305. Transfers – Wholesaler Confirmation.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(C), and 44-3-

303(1)(d), C.R.S. The purpose this regulation is to provide guidance to applicants and

licensing authorities regarding statutory requirements for transfers under subsection 44-

3-303(1)(d), C.R.S., and what is satisfactory to demonstrate fulfillment of the

requirement that all wholesalers have been paid in full prior to approval of a transfer

application.

A.

In accordance with subsection 44-3-303(1)(d), C.R.S., the applicant shall deliver

a confirmation to each wholesaler licensed under this article, including brew

pubs, distillery pubs, vintner’s restaurants, and limited wineries, who has sold

alcohol beverages to the transferor-licensee within the preceding one hundred

eighty (180) calendar days, in the form and substance approved by the Division.

B

In accordance with subsection 44-3-303(1)(d), C.R.S., the applicant shall deliver

a confirmation to each wholesaler licensed under this article, including brew

pubs, distillery pubs, vintner’s restaurants, and limited wineries, who has sold

alcohol beverages to the transferor-licensee within the preceding one hundred

eighty (180) calendar days, in the form and substance approved by the Division.

B.

The confirmation may be delivered via email, so long as the applicant can prove

receipt of the email by the wholesaler. If the applicant cannot prove receipt by

email, the confirmation shall be delivered via United States mail or other common

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

23

carrier with a minimum of a return receipt to the last known business address of

the wholesaler, attention: credit department. The confirmation shall be deemed

received by a wholesaler upon the third (3rd) day following the date on which the

confirmation is deposited in the United States mail or common carrier or the date

on the return receipt.

C.

Upon delivery of a confirmation to a wholesaler, the transferor-licensee shall not

purchase alcohol beverage on credit or accept an offer or extension of credit

from the wholesaler and shall effect payment upon delivery of the alcohol

beverage from the wholesaler. Allowed payments include cash, credit or debit

cards, check, money orders, certified check, EFT transfer, and any other method

of payment approved by the Division.

D.

A wholesaler shall have fifteen (15) business days upon receipt of a confirmation

to complete and return the confirmation to the applicant, in the same manner and

extent as specified in paragraph (B) of this regulation. If a wholesaler does not

complete and return the confirmation within the fifteen (15) business day period

of time, the wholesaler shall be deemed paid in full solely for purposes of

transferring the license.

E

en (15) business days upon receipt of a confirmation

to complete and return the confirmation to the applicant, in the same manner and

extent as specified in paragraph (B) of this regulation. If a wholesaler does not

complete and return the confirmation within the fifteen (15) business day period

of time, the wholesaler shall be deemed paid in full solely for purposes of

transferring the license.

E.

Nothing within this regulation shall prohibit or restrict a local licensing authority

from issuing a temporary permit or from processing the transfer application.

However, a transfer shall not be approved unless the transferor-licensee is in

compliance with this regulation.

F.

The applicant, transferor-licensee, and/or its agent and assign, and each

wholesaler shall act in good faith and fair dealing with each other.

Regulation 47-306. Change of Trade Name.

Basis and Purpose. The statutory authority for this regulation is located at subsections

44-3-202(1)(b) and 44-3-202(2)(a)(I)(J), C.R.S. The purpose of this regulation is to

establish guidelines of the use of a trade name and the reporting requirements for a

licensee that is changing the name or trade name of its licensed premises.

A.

No licensee shall use a new business name or trade name without submitting

written notice to the local and state licensing authorities, not less than ten (10)

days prior to the use of a new business name or trade name.

B.

Exterior signage or advertising of the business name or trade name is not

required, but if used, must accurately reflect the current business name or trade

name on file with the Division.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

o the local and state licensing authorities, not less than ten (10)

days prior to the use of a new business name or trade name.

B.

Exterior signage or advertising of the business name or trade name is not

required, but if used, must accurately reflect the current business name or trade

name on file with the Division.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

24

Regulation 47-307. Master Files.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(R), and

44-3-304(1)(d), C.R.S. The purpose of this regulation is to establish rules governing

master files, and the minimum number of locations required for master file privileges.

A.

Any person or entity seeking the issuance of a state master file pursuant to

subsection 44-3- 304(1)(b), C.R.S., shall have an interest in a minimum of five (5)

approved state licenses, pursuant to Articles 3 and/or 4 of Title 44, C.R.S.

B.

A master file applicant can meet the minimum requirements of this regulation by

having an interest in separate licensed locations, as long as there are a minimum

of five (5) total licenses approved.

C.

To maintain a state master file, once approved and established, the licensee

shall comply with subsection 44-3-301(7), C.R.S., and Regulation 47-304 as it

relates to the timely disclosure of any change in structure. Repeated failure to

comply with timely advisement to the state licensing authority shall be grounds

for the state licensing authority to suspend or revoke a licensee’s master file

privileges.

D.

Any licensed premises included in a master file must be constructed and placed

in operation within two (2) years of approval of the license in order to be

considered part of the master file.

E.

No local licensing authority shall require applicants with an approved master file

to file additional fingerprints or background investigation forms

suspend or revoke a licensee’s master file

privileges.

D.

Any licensed premises included in a master file must be constructed and placed

in operation within two (2) years of approval of the license in order to be

considered part of the master file.

E.

No local licensing authority shall require applicants with an approved master file

to file additional fingerprints or background investigation forms. Nothing in this

section shall prohibit a local licensing authority from conducting its own

investigation, or from verifying any of the information provided by the applicant,

or from denying the application of the applicant pursuant to the provisions set

forth in section 44-3-307, C.R.S.

Regulation 47-308. Repealed.

Regulation 47-309. Sports and Entertainment Venues.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(R), and

44-3-301(6), C.R.S. The purpose of this regulation is to establish guidelines for the sale

of alcohol beverages in sports and entertainment venues with at least one thousand five

hundred (1,500) seats.

A.

This regulation shall apply to licensees at facilities owned by a municipality,

county, or special district, or at publicly or privately owned sports and

entertainment venue with a minimum seating capacity of one thousand five

hundred (1,500) seats.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

ent venues with at least one thousand five

hundred (1,500) seats.

A.

This regulation shall apply to licensees at facilities owned by a municipality,

county, or special district, or at publicly or privately owned sports and

entertainment venue with a minimum seating capacity of one thousand five

hundred (1,500) seats.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

25

B.

Licensees authorized to sell alcohol beverages in these venues may sell or

provide alcohol beverages in sealed containers to adult occupants of areas within

the licensed premises that have limited public access.

C.

Licensees are otherwise responsible for any violations of the Colorado Liquor

Code within such limited public access areas and shall not prevent inspection of

the premises by any law enforcement official.

D.

The licensee shall not allow any person to bring alcohol beverages onto the

licensed premises that were not purchased from the licensee, or allow any

person to leave the licensed premises with a container of alcohol beverage that

was provided by the licensee.

Regulation 47-310. Application - General Provisions.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(a), 44-3-202(1)(b), 44-3-202(2)(a)(l)(A),44-3-

202(2)(a)(l)(R), 44-3-303(1)(b), 44-3-304(1), 44-3-307, and 24-5-101 C.R.S. The

purpose of this regulation is to establish requirements for a license application, and

provide factors the licensing authority must consider when evaluating an application for

approval or rejection.

A.

All applications for state licenses for the manufacture or sale of alcohol

beverages shall be made upon forms prescribed by the Division. No application

will be considered which is not complete in every material detail, or which is not

accompanied by a remittance in full for the whole amount of the annual state

license fee, and eighty five percent (85%) of the local license fee

al or rejection.

A.

All applications for state licenses for the manufacture or sale of alcohol

beverages shall be made upon forms prescribed by the Division. No application

will be considered which is not complete in every material detail, or which is not

accompanied by a remittance in full for the whole amount of the annual state

license fee, and eighty five percent (85%) of the local license fee. Each

application for a new retail license shall contain a report from the local licensing

authority of the town, city, county, or city and county, in which the applicant

proposes to conduct its business, which report shall show the opinion of the local

licensing authority concerning the reasonable requirements of the neighborhood

and the desires of the adult inhabitants with respect to the issuance of the license

applied for and the character of a new applicant.

B.

If the applicant for a license is a partnership, except as between spouses or

partners in a civil union, it shall submit with the application a certificate of co-

partnership.

C.

Upon request of any licensing authority, each applicant and licensee shall

provide suitable additional evidence of its good character and reputation, and if

otherwise required by law or regulation, the applicant shall provide evidence of

the reasonable requirements of the neighborhood and the desires of the adult

inhabitants. Applicants and licensees shall also submit upon request of any

licensing authority all required information concerning financial and management

associations and interests of other persons in the business, and the deed, lease,

contract, or other document governing the terms and conditions of occupancy of

the premises licensed or proposed to be licensed.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

submit upon request of any

licensing authority all required information concerning financial and management

associations and interests of other persons in the business, and the deed, lease,

contract, or other document governing the terms and conditions of occupancy of

the premises licensed or proposed to be licensed.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

26

D.

All information submitted to any licensing authority, by application for license or

otherwise, shall be given fully, faithfully, truthfully, and fairly. Willful or deliberate

misrepresentation may result in a denial or revocation of a license.

E.

When a licensing authority is required to make a determination as to the

character, record, and reputation of existing licensees or applicants for new

licenses, including transfers of ownership of existing licenses, the authority may

consider the following factors, which may include but are not to be limited to the

following:

1.

Subject to section 24-5-101, C.R.S., the applicant or licensee has

knowingly submitted false applications, made willful misrepresentations,

and/or knowingly committed fraudulent acts;

2.

The applicant or licensee has a criminal history of crimes of moral

turpitude. By way of example, crimes of moral turpitude shall include but

not be limited to, fraud, forgery, murder, burglary, robbery, arson,

kidnapping, sexual assault, illegal drugs, or narcotics convictions;

3.

The applicant or licensee has had previous alcohol beverage licenses

denied or revoked as a result of violations of law, resulting in a finding of

bad moral character by any licensing authority;

4.

The applicant or licensee has been found to be currently delinquent in the

payment of any state or local taxes related to a business;

5.

The applicant or licensee has an established pattern of multiple statutory

violations which resulted in the revocation or denial of any other

professional license; and

6

olations of law, resulting in a finding of

bad moral character by any licensing authority;

4.

The applicant or licensee has been found to be currently delinquent in the

payment of any state or local taxes related to a business;

5.

The applicant or licensee has an established pattern of multiple statutory

violations which resulted in the revocation or denial of any other

professional license; and

6.

The finding of a person who is not of good moral character by any

licensing authority.

F.

When making a determination as to the character or good moral character of a

licensee or applicant as required by Title 44, Articles 3, 4 and 5, the licensing

authority shall also consider the factors set forth in section 24-5-101, C.R.S.

G.

When a licensing authority is required to make a determination as to the

character or good moral character of a licensee or applicant for license, in

addition to the items listed in subsection 24-5- 101(2)(b), C.R.S., the authority

may not consider the following:

1.

The applicant or licensee had a civil or criminal judgment, discipline, or

other sanction threatened or imposed under the laws of another state

regarding consumption, possession, cultivation, or processing of

marijuana that is lawful and consistent with the professional conduct and

standards of care within the State of Colorado.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

27

H.

When considering whether the applicant for a special event permit is of good

moral character and record, the state or local licensing authority shall determine,

at a minimum, whether the applicant failed to conduct past special events in

compliance with applicable liquor laws. Officers of the organization or of a

political candidate making an application shall not be required to submit

individual history applications and fingerprint cards unless the state or local

licensing authority determines that such information is necessary to establish the

good moral character of the applicant.

I

cant failed to conduct past special events in

compliance with applicable liquor laws. Officers of the organization or of a

political candidate making an application shall not be required to submit

individual history applications and fingerprint cards unless the state or local

licensing authority determines that such information is necessary to establish the

good moral character of the applicant.

I.

A municipality or other governmental entity that applies for a license, or to renew

a license, shall submit with the application the name, address, and individual

history record of at least one member of its governing body, or at least one

person hired or appointed by its governing body, to serve as an officer or

director; except that, pursuant to subsection 44-3-107(1), C.R.S., a person who

has an interest in a liquor license may not be listed as an officer or director on a

license owned, or to be owned, by a municipality or other governmental entity if

that person individually manages or receives any direct financial benefit from the

operation of such license. If the governing body of a municipality or other

governmental entity hires or appoints more than one officer or director, the name,

address and individual history record of each such officer or director shall be

submitted with the application.

Regulation 47-311. Public Transportation System License.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), and 44-3-202(2)(a)(I)(R),

C.R.S. The purpose of this regulation is to make clear that under the specified

circumstances a commercial airline must apply for and receive a public transportation

system license.

In addition to any public system transportation licenses issued for a permanent licensed

premises, a commercial airline shall apply for and receive a public system transportation

license for an airplane if any of the following conditions are met:

A

ulation is to make clear that under the specified

circumstances a commercial airline must apply for and receive a public transportation

system license.

In addition to any public system transportation licenses issued for a permanent licensed

premises, a commercial airline shall apply for and receive a public system transportation

license for an airplane if any of the following conditions are met:

A.

Alcohol beverages are sold or served while the airplane is stationary anywhere in

the State of Colorado; or

B.

Alcohol beverages are purchased from a Colorado Wholesaler; or

C.

Alcohol beverages are stored on the airplane for more than twenty-four (24)

hours while in the State of Colorado.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

28

Regulation 47-312. Change of Location.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(D), 44-

3-202(2)(a)(I)(R), 44-3-301(9), 44-3-309, and 44-3-410, C.R.S. The purpose of this

regulation is to establish procedures for a licensee requesting to change the location of

the licensed premises and provide factors the licensing authority must consider when

evaluating a change for approval or rejection.

A.

When a licensee desires to change the location of its licensed premises from the

location named in an existing license, it shall make application to the applicable

licensing authorities for permission to change location of its licensed premises,

except that an application for change of location shall not be required for the

demolition and reconstruction of the building in which the original licensed

premises was located.

B.

Applications to change location shall be made upon forms prepared by the state

licensing authority and shall be complete in every detail

licensing authorities for permission to change location of its licensed premises,

except that an application for change of location shall not be required for the

demolition and reconstruction of the building in which the original licensed

premises was located.

B.

Applications to change location shall be made upon forms prepared by the state

licensing authority and shall be complete in every detail. Each such application

shall state the reason for such change, and in case of a retail license, shall be

supported by evidence that the proposed change will not conflict with the desires

of the adult inhabitants and the reasonable requirements of the neighborhood in

the vicinity of the new location.

1.

An application to change the location of a retail license shall contain a

report of the applicable local licensing authority. Such report shall describe

the findings of the local licensing authority concerning the reasonable

requirements of the neighborhood and the desires of the adult inhabitants

with respect to the new location, except that, pursuant to subsection 44-3-

312(2)(a), C.R.S., the needs of the neighborhood shall not be considered

for a change of location for a club license.

2.

When a licensee is required by lease, lease renewal, condemnation, or

reconstruction to move its licensed premises to a new address that is

located within the same shopping center, campus, fairground, or similar

retail center, the local or state licensing authority may, at its discretion,

waive the neighborhood needs and desires assessment requirements

should it determine that the new location remains within the same

neighborhood as the old location.

C.

For retail licenses, no change of location shall be permitted until the state

licensing authority has, after approval of the local licensing authority, considered

the application and such additional information as it may require, and approved

of such change

eds and desires assessment requirements

should it determine that the new location remains within the same

neighborhood as the old location.

C.

For retail licenses, no change of location shall be permitted until the state

licensing authority has, after approval of the local licensing authority, considered

the application and such additional information as it may require, and approved

of such change. The licensee shall, within sixty (60) days of approval from the

state licensing authority, change the location of its licensed premises to the

location specified therein. Once at the new location, the licensee shall no longer

conduct the manufacture or sale of alcohol beverages at the former location. A

local licensing authority may, at its discretion, extend the time to change the

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

29

location of the licensed premises, for good cause shown. However, no extension

that is beyond twelve (12) months from the original date of approval shall be

granted.

D.

For those licensees not subject to approval by the local licensing authority, no

change of location shall be permitted until the state licensing authority has

considered the application, and such additional information as it may require, and

approved of such change. The licensee shall, within sixty (60) days of approval,

change the location of its licensed premises to the place specified therein. Once

at the new location, the licensee shall no longer conduct the manufacture or sale

of alcohol beverages at the former location. The state licensing authority may, at

its discretion, extend the time to change the location for good cause shown.

However, no extension that is beyond twelve (12) months from the original date

of approval shall be granted.

E.

Once the licensee has changed the location of its licensed premises, the permit

to change location shall be conspicuously displayed at the new location,

immediately adjacent to the license to which it pertains until the license is

renewed.

F

e to change the location for good cause shown.

However, no extension that is beyond twelve (12) months from the original date

of approval shall be granted.

E.

Once the licensee has changed the location of its licensed premises, the permit

to change location shall be conspicuously displayed at the new location,

immediately adjacent to the license to which it pertains until the license is

renewed.

F.

For retail licenses, no change of location shall be allowed except to another

location within the same city, town, county, or city and county in which the license

was originally issued. Except, a retail liquor store licensed on or before January

1, 2016, may apply to move its permanent location to another place within or

outside the municipality or county in which the license was originally granted.

Once approved, the retail liquor store licensee shall change the location of its

premises within three (3) years after such approval.

1.

A change of location for a fermented malt beverage and wine retailer or

retail liquor store will be approved only if the new location satisfies the

distance requirements in subsections 44-3-301(9)(a)(I)(B)-(C), C.R.S.

2.

It is unlawful for a licensee to sell any alcohol beverage at a new location

until permission is granted by the state and local licensing authorities.

G.

Upon application for change of location, public notice shall be required by the

local licensing authority in accordance with section 44-3-311, C.R.S.

H.

A licensee located within 500 feet from any public or parochial school or principal

campus of any college, university, or seminary may apply for a change of

location within the same prohibited area, in accordance with the requirements of

subsection 44-3-301(9), C.R.S., but may not apply for a change of location within

any other prohibited area as defined within section 44-3-313, C.R.S.

I

C.R.S.

H.

A licensee located within 500 feet from any public or parochial school or principal

campus of any college, university, or seminary may apply for a change of

location within the same prohibited area, in accordance with the requirements of

subsection 44-3-301(9), C.R.S., but may not apply for a change of location within

any other prohibited area as defined within section 44-3-313, C.R.S.

I.

A licensee that is in lawful possession of its alcohol beverage inventory at the

time it receives approval from the local and/or state licensing authorities to

change the location of its licensed premises may continue to possess its alcohol

beverage inventory for sale at the new location.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

30

J.

Pursuant to subsection 44-3-410(8)(b)(I), C.R.S., the state and local licensing

authorities shall not approve the change of location for a liquor licensed

drugstore licensed pursuant to section 44-3-410, C.R.S., except that, pursuant to

subsection 44-3-410(8)(b)(II), C.R.S., the state and local licensing authorities

may approve a change of location for a liquor licensed drugstore license that was

issued to an independent pharmacy, as defined in subsection 44-3-103(21.3),

C.R.S., before January 1, 2025.

Regulation 47-313. Tastings.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(R), 44-

3-301(10), 44-3-409(1)(c)(III), and 44-4-104(1)(c)(I)(A), C.R.S. The purpose of this

regulation is to clarify who may conduct tastings and how open and unconsumed

samples must be appropriately treated after a tasting. This regulation applies only to

tastings conducted on the licensed premises of retail liquor stores, liquor-licensed

drugstores, and fermented malt beverage and wine retailers pursuant to subsections

44-3-301(10), 44-3-409(1)(c)(III), and 44-4-104(1)(c)(I)(A), C.R.S.

A.

Tastings.

1

o clarify who may conduct tastings and how open and unconsumed

samples must be appropriately treated after a tasting. This regulation applies only to

tastings conducted on the licensed premises of retail liquor stores, liquor-licensed

drugstores, and fermented malt beverage and wine retailers pursuant to subsections

44-3-301(10), 44-3-409(1)(c)(III), and 44-4-104(1)(c)(I)(A), C.R.S.

A.

Tastings.

1.

A tasting shall be conducted only by a person who has completed seller-

server training that meets the standards established by the Division, and

is:

a.

A retail liquor store, liquor-licensed drugstore, or fermented malt

beverage and wine retailer licensee or employee; or

b.

A representative, employee, or agent of one of the following

suppliers licensed by the state licensing authority:

i.

Wholesaler;

ii.

Brew pub;

iii.

Distillery pub;

iv.

Manufacturer;

v.

Limited winery;

vi.

Importer; or

vii.

Vintner’s restaurant.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

31

B.

Following a tasting, the licensee shall promptly remove all open and unconsumed

alcohol beverage samples from the licensed premises, destroy the samples

immediately following the completion of the tasting, or store any open containers

of unconsumed alcohol beverages in a secure area outside the sales area of the

licensed premises for use only at a tasting conducted at a later time or date. A

secure area means:

1.

A designated area, including, but not limited to, a closet, cabinet, or safe;

2.

That is upon the licensed premises and not accessible to consumers; and

3.

Is secured by a locking mechanism at all times while any open containers

of unconsumed alcohol beverages are stored for use at a future tasting.

C

sed premises for use only at a tasting conducted at a later time or date. A

secure area means:

1.

A designated area, including, but not limited to, a closet, cabinet, or safe;

2.

That is upon the licensed premises and not accessible to consumers; and

3.

Is secured by a locking mechanism at all times while any open containers

of unconsumed alcohol beverages are stored for use at a future tasting.

C.

To ensure alcohol samples are provided to a patron free of charge, as required

by subsection 44-3-301(10)(c)(X), C.R.S., the licensee shall not charge or accept

any money for a tasting, directly or indirectly, including for any education

provided in connection with a tasting, or to reserve a spot at a tasting event,

regardless of whether the money charged is donated to a charity or is refunded.

Education shall not be considered to be provided in connection with a tasting if

the tasting occurs after the education event has concluded and is available to

any adult patron of the licensee, free of charge.

D.

To comply with the obligation not to serve more than four individual samples to a

patron during a tasting, as required by subsection 44-3-301(10)(c)(IX), C.R.S.,

the licensee shall implement a means of tracking how many samples each patron

is provided, which may include the use of a wristband, or other means of

accurately tracking individual patron consumption.

E.

To comply with the obligation not to serve samples to a patron over the maximum

allowed volume per alcohol type, as required by subsection 44-3-

301(10)(c)(I)(B)(III), C.R.S., a licensee serving alcohol beverages mixed with

non-alcohol beverage product shall either:

1.

Serve no more than the maximum allowed volume per alcohol type, per

sample, of a premixed beverage, if the mixing of the alcohol is not done in

public view during the tasting event; or

2.

Mix the alcohol beverage with the non-alcohol beverage in public view

during the tasting event, wherein only the maximum allowable amount of

alcohol beverage is incorporated into each mixed drink, per sample.

1.

Serve no more than the maximum allowed volume per alcohol type, per

sample, of a premixed beverage, if the mixing of the alcohol is not done in

public view during the tasting event; or

2.

Mix the alcohol beverage with the non-alcohol beverage in public view

during the tasting event, wherein only the maximum allowable amount of

alcohol beverage is incorporated into each mixed drink, per sample.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

32

Regulation 47-314. Limited Liability Company.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(J), 44-

3-202(2)(a)(I)(R), and 44-3-307(1), C.R.S. The purpose of this regulation is to establish

reporting and disclosure requirements for the identification of a limited liability

company’s managers, and applicable members and their relevant financial interests in

order to promote transparency and avoid violations of statutorily prohibited overlapping

financial interests.

A.

A Limited Liability Company may conduct any business that a partnership with

limited partners may lawfully conduct and may not conduct any business that is

prohibited by law to such partnership.

B.

Each Limited Liability Company licensed pursuant to Articles 3 or 4, of Title 44,

shall report changes of any of its managers, or members having a ten percent

(10%) or more interest in the license, except that any transfer of a controlling

interest shall be reported regardless of its size, within thirty (30) days from the

date of the change, and shall submit said information to the respective local or

state licensing authorities on forms approved by the Division.

Regulation 47-315. Entertainment Facility License.

Basis and Purpose

s having a ten percent

(10%) or more interest in the license, except that any transfer of a controlling

interest shall be reported regardless of its size, within thirty (30) days from the

date of the change, and shall submit said information to the respective local or

state licensing authorities on forms approved by the Division.

Regulation 47-315. Entertainment Facility License.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103(15.5), 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-

202(2)(a)(I)(C), 44-3-202(2)(a)(I)(L), 44-3-202(2)(a)(I)(R), and 44-3-428, C.R.S. The

purpose of this regulation is to describe those sports and entertainment activities which

qualify an establishment as an entertainment facility. Additionally, the purpose of this

regulation is to describe how to determine the primary business of an entertainment

facility.

A.

In addition to other statutory requirements, an entertainment facility license may

be issued to a qualifying entertainment facility.

1.

An “entertainment facility” means an establishment:

a.

In which the primary business is to provide the public with sports or

entertainment activities within its licensed premises; and

b.

That, incidental to its primary business, sells and serves alcohol

beverages at retail for consumption on the licensed premises and

has sandwiches and light snacks available for consumption on the

licensed premises.

B.

To qualify as an entertainment facility, the applicant or entertainment licensee

must demonstrate that its primary business is to provide qualifying sports or

entertainment activities within its licensed premises.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

nsed premises and

has sandwiches and light snacks available for consumption on the

licensed premises.

B.

To qualify as an entertainment facility, the applicant or entertainment licensee

must demonstrate that its primary business is to provide qualifying sports or

entertainment activities within its licensed premises.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

33

1.

To qualify as a sports activity, the activity must provide the public with an

opportunity to participate in, or to observe others who participate in, an

activity such as a game, recreation, team or individual sport, or an activity

of a similar nature. Examples of qualifying sports activities include, but are

not limited to, the following:

a.

Arcade games;

b.

Billiards;

c.

Bowling;

d.

Golf; or

e.

Laser tag.

2.

To qualify as an entertainment activity, the activity must provide the public

with an opportunity to participate in or observe others who participate in an

activity that is primarily artistic, cultural, educational, or entertaining, or an

activity of a similar nature. Examples of qualifying entertainment activities

include, but are not limited to, the following:

a.

Artistic exhibitions, films, or performances;

b.

Arts and crafts classes;

c.

Cooking classes;

d.

Amusement rides; or

e.

Spa experiences.

i.

For purposes of this regulation, to qualify as a “spa

experience” the facility must offer at least three (3) of the

following treatments and experiences:

A.

Facials;

B.

Massage therapy;

C.

Skin treatment;

D.

Body wraps; or

E.

Body waxing.

3.

The following activities shall not qualify as sports or entertainment

activities for purposes of an entertainment facility:

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

a “spa

experience” the facility must offer at least three (3) of the

following treatments and experiences:

A.

Facials;

B.

Massage therapy;

C.

Skin treatment;

D.

Body wraps; or

E.

Body waxing.

3.

The following activities shall not qualify as sports or entertainment

activities for purposes of an entertainment facility:

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

34

a.

Any activity not described in subparagraphs (B)(1) or (B)(2) of this

regulation; and

b.

Shopping for or receiving goods or personal services, including but

not limited to hair care or nail care services.

C.

An activity that would otherwise qualify under subparagraphs (B)(1) and (B)(2) of

this regulation, shall not qualify if the activity involves the use of a deadly weapon

as defined by subsection 18-1901(3)(e), C.R.S., or creates a substantial health

and safety risk to any person.

D.

Determining the primary business of an entertainment facility.

1.

To satisfy the requirement that the primary business of an entertainment

facility is to provide the public with sports or entertainment activities, and

that serving and selling alcohol beverages is incidental thereto, the

entertainment facility’s annual gross revenues from the sale of sports or

entertainment activities must exceed fifty (50) percent of the entertainment

facility’s total annual gross sales revenues.

Regulation 47-316. Advertising Practices

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(G), 44-

3-202(2)(a)(I)(O), 44-3-202(2)(a)(I)(R), 44-3-308, 44-3-409(2)(a)(II)(B), 44-3-

410(2)(a)(II)(B), and 44-4-107(4)(a)(II), C.R.S. The purpose of this regulation is to

establish certain permitted and prohibited advertising practices between suppliers and

retailers.

A.

Consumer Advertising Specialties

1

limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(G), 44-

3-202(2)(a)(I)(O), 44-3-202(2)(a)(I)(R), 44-3-308, 44-3-409(2)(a)(II)(B), 44-3-

410(2)(a)(II)(B), and 44-4-107(4)(a)(II), C.R.S. The purpose of this regulation is to

establish certain permitted and prohibited advertising practices between suppliers and

retailers.

A.

Consumer Advertising Specialties

1.

“Consumer advertising specialties” shall mean those items primarily

designed to advertise or promote a specific alcohol beverage brand or

supplier, that are intended and designed to be carried away by the

consumer, and that have negligible value. Consumer advertising

specialties are considered to be of negligible value if the suppliers’ cost to

purchase the consumer advertising specialties is less than ten (10) dollars

per item. Apparel items are considered to be of negligible value if the

suppliers’ cost to purchase a single apparel item is less than twenty-five

(25) dollars per item. For purposes of this regulation, glassware, plates,

and barware such as jiggers, bar tins, and utensils do not qualify as

consumer advertising specialties.

2.

Suppliers may provide consumer advertising specialties of negligible value

free of charge to a licensed retailer, so long as the consumer advertising

specialties contain an advertising message that promotes the supplier or

their products, and do not contain any information, markings, or logos that

are specific to a retailer.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

s may provide consumer advertising specialties of negligible value

free of charge to a licensed retailer, so long as the consumer advertising

specialties contain an advertising message that promotes the supplier or

their products, and do not contain any information, markings, or logos that

are specific to a retailer.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

35

3.

Consumer advertising specialties that contain any information, markings,

or logos specific to a licensed retailer may not be provided free of charge,

but must be purchased by a retailer at a minimum of the supplier’s cost.

4.

Licensees must have available for inspection those customary business

records that verify these transactions, in accordance with section 44-3-

701, C.R.S., and for the time frame specified in Regulation 47-700.

B.

Point-of-Sale Advertising

1.

“Point-of-sale advertising” shall mean alcohol beverage brand-specific or

supplier-specific promotional materials, within a retailer’s licensed

premises. Such items may also include a retailer’s name and address.

2.

Suppliers may provide the following point-of-sale advertising materials of

negligible value to licensed retailers free of charge for use within retail

premises: display decorations of negligible value, table tents, table tent

holders, sports schedules and brackets, case cards, serving trays,

condiment trays, bar utensil caddies, stir rods, strainers, presses, check

and credit card holders, shakers, pitchers, table mats, bar mats, alcohol

beverage lists or menus, menu cards, menu holders, calendars, napkins,

napkin holders, coasters, stir sticks, and similar items of negligible value,

as approved by the Division.

3.

A supplier may advertise, within a retailer’s licensed premises, alcohol

beverage products, consumer mail-in rebate offers, consumer giveaways,

sweepstakes, contests, and cross promotions with non-alcohol beverage

products. Suppliers may also provide contest and sweepstakes

information and consumer entry forms.

4

, stir sticks, and similar items of negligible value,

as approved by the Division.

3.

A supplier may advertise, within a retailer’s licensed premises, alcohol

beverage products, consumer mail-in rebate offers, consumer giveaways,

sweepstakes, contests, and cross promotions with non-alcohol beverage

products. Suppliers may also provide contest and sweepstakes

information and consumer entry forms.

4.

Supplier Rebates for Consumers and Supplier Coupons

Supplier rebates and coupons, as contemplated in this regulation, are a

permitted method of alcohol beverage product promotion if they are

intended to reach the consumer through permitted advertising practices,

and to provide the consumer with a direct financial benefit through the

redemption process. Rebates and coupons may not be used as a means

of financial assistance to licensed retailers or as a means to influence or

control a retailer’s product selection.

a.

A supplier’s “consumer rebate” provides a consumer with cash

back after the consumer has purchased a supplier’s product and

has provided proof of product purchase upon redemption to the

supplier. The retailer may not act as an intermediary for the supplier

or the consumer.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

36

i.

A supplier may provide consumer rebate certificates to

consumers through point-of-sale advertising (such as tear

pads, shelf talkers, case cards, or other point-of-sales

materials), package inserts, or other printed or electronic

media. Suppliers are prohibited from providing their

consumer rebate certificates directly to licensed retailers

including, but not limited to, through the use of a retailer’s

bona fide loyalty or reward program or on the retailer’s

website or mobile application.

ii.

A supplier’s consumer rebate certificate may not be

redeemed through a licensed retailer.

b

inserts, or other printed or electronic

media. Suppliers are prohibited from providing their

consumer rebate certificates directly to licensed retailers

including, but not limited to, through the use of a retailer’s

bona fide loyalty or reward program or on the retailer’s

website or mobile application.

ii.

A supplier’s consumer rebate certificate may not be

redeemed through a licensed retailer.

b.

A supplier’s “instant redeemable coupon” provides a consumer with

a discount off of the retailer’s selling price of an alcohol beverage

product, at the time it is redeemed through a licensed retailer.

i.

Licensed retailers may redeem suppliers’ instant redeemable

coupons only after they have been made available by

suppliers to consumers through general print or electronic

media directed at the consumer; package inserts; or, a

supplier’s representative or agent, who is not the retailer or

their agent, who is providing coupons to consumers at the

retail premises for the purpose of product promotion.

ii.

Licensed retailers are prohibited from accepting and

redeeming any supplier-issued instant redeemable coupons

unless redemption included presentation of the coupon by a

consumer with the purchase of the product advertised

therein, or in accordance with other applicable redemption

rules specified by the supplier or their marketing agents.

Licensed retailers are also prohibited from providing a

supplier’s instant redeemable coupon through the retailer’s

bona fide loyalty or reward program, or on the retailer’s

mobile application or website.

iii.

Suppliers are prohibited from providing their instant

redeemable coupons directly to licensed retailers, including,

but not limited to, through the use of a retailer’s bona fide

loyalty or reward program or on the retailer’s mobile

application or website.

iv.

Suppliers shall not directly reimburse licensed retailers for

suppliers’ instant redeemable coupons

er’s

mobile application or website.

iii.

Suppliers are prohibited from providing their instant

redeemable coupons directly to licensed retailers, including,

but not limited to, through the use of a retailer’s bona fide

loyalty or reward program or on the retailer’s mobile

application or website.

iv.

Suppliers shall not directly reimburse licensed retailers for

suppliers’ instant redeemable coupons. Reimbursement for

the amount of the redeemed coupons must be paid to the

retailer through a third party that is independent from the

supplier and the retailer.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

37

v.

Retailers must have available for inspection, applicable

business and banking records that verify these transactions,

in accordance with section 44-3-701, C.R.S., and for the

time frame specified in Regulation 47-700. Verification may

include the retailer’s reconciliation of coupons redeemed to

related products sold to consumers.

vi.

Suppliers may provide suppliers’ instant redeemable

coupons available to the public through general print or

electronic media directed at the consumer; package inserts;

or through a supplier’s representative or agent, who is

providing coupons to the consumers at the retail premises

for the purpose of product promotion. Suppliers may also

provide their instant redeemable coupons packaged with, or

attached to, each individual product before such products

are delivered to a licensed retailer.

5.

Supplier Sponsored Consumer Contests and Related Displays

A supplier may advertise, within retail premises, alcohol beverage

products, via consumer mail-in rebate offers, consumer give-a-ways,

sweepstakes, contests, and cross promotions with non-alcohol beverage

products. Suppliers may also provide contest and sweepstakes

information and consumer entry forms

re delivered to a licensed retailer.

5.

Supplier Sponsored Consumer Contests and Related Displays

A supplier may advertise, within retail premises, alcohol beverage

products, via consumer mail-in rebate offers, consumer give-a-ways,

sweepstakes, contests, and cross promotions with non-alcohol beverage

products. Suppliers may also provide contest and sweepstakes

information and consumer entry forms. Further, suppliers may provide

items to be given away in a consumer give-a-way, sweepstake, or contest,

to a retailer with the purpose of the item being displayed in the retail

licensed premises during the contest period, subject to the regulations

below, to be given away in a consumer give-away, sweepstake or contest.

For consumer give-a-ways, sweepstake or contests, (collectively

“Consumer Contest”) the following regulations shall apply:

a.

No item provided as part of a Consumer Contest may be awarded

to, received by or otherwise kept by the licensee or any of the

licensee’s employees or an employee’s immediate or extended

family members.

b.

No item provided as part of a Consumer Contest may be awarded

to, received by or otherwise kept by a supplier licensee that is

providing alcohol beverage products to the retail licensee or any of

the supplier licensee’s employees or any supplier licensee’s

employee’s immediate or extended family members.

c.

Any item(s) to be given away in a Consumer Contest must be

awarded and given to the winning consumer within the time

afforded by this regulation. Otherwise the item(s) must be returned

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

l licensee or any of

the supplier licensee’s employees or any supplier licensee’s

employee’s immediate or extended family members.

c.

Any item(s) to be given away in a Consumer Contest must be

awarded and given to the winning consumer within the time

afforded by this regulation. Otherwise the item(s) must be returned

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

38

to the supplier who will be responsible for awarding the item(s) to

the winner.

d.

If the actual item(s) that is(are) part of the Consumer Contest are

delivered to the retail license premises with the intention of

displaying the item during the contest period, the item(s) shall be

delivered together with an invoice made out to the retail licensee for

not less than the actual cost of the item(s). The retail licensee shall

be responsible for and required to pay the invoice cost for the item

unless the retail licensee can establish to the satisfaction of the

Division that the item(s) was(were) in fact presented to the winning

consumer in accordance with the rules of the Consumer Contest.

Both the retail licensee and the supplier of the item shall each

maintain in their respective records proof establishing that the

item(s) was(were) delivered to the winning consumer. Such records

shall include but not be limited to a signed acknowledgement of

receipt of the item(s) by the winning consumer which

acknowledgment shall include a valid form of identification proving

the identity of the consumer, the consumer’s name, address, phone

number, e-mail address (if available) and the date on which the

item was presented to the consumer. In addition, the records shall

include the name and position of the person or persons presenting

the item to the consumer sufficient so that the Division can verify

that the item was presented to the Consumer Contest winner.

e.

The Consumer Contest, including the drawing period, shall not last

longer than sixty (60) days.

f

f available) and the date on which the

item was presented to the consumer. In addition, the records shall

include the name and position of the person or persons presenting

the item to the consumer sufficient so that the Division can verify

that the item was presented to the Consumer Contest winner.

e.

The Consumer Contest, including the drawing period, shall not last

longer than sixty (60) days.

f.

In the event that the supplier does not have the signed

acknowledgement of receipt from the consumer within thirty (30)

days of the end of the Consumer Contest, it is the responsibility of

both the retail licensee and the supplier, that payment in full of the

invoice by the retail licensee is made to the supplier for the item(s).

Absent payment within twenty-four (24) hours of the expiration of

the thirty (30) day period, no supplier representing the brand

advertised in the Consumer Contest shall be permitted to sell or

otherwise provide any product to the retail licensee until the invoice

is paid in full.

g.

Entrance into the Consumer Contest is not contingent on any

purchases.

h.

The actual item(s) that is (are) part of the Consumer Contest may

be on display in the licensed premises of the retailer only during the

period of the Consumer Contest. At the end of the contest period,

the item(s) may be stored at the retailer location for no more than

thirty (30) days following the end of the Consumer Contest period.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

that is (are) part of the Consumer Contest may

be on display in the licensed premises of the retailer only during the

period of the Consumer Contest. At the end of the contest period,

the item(s) may be stored at the retailer location for no more than

thirty (30) days following the end of the Consumer Contest period.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

39

i.

The item(s) must be properly identified in signage as a prize that is

part of the Consumer Contest, e.g. “Win this Umbrella.”

j.

Signage shall display the starting date and ending date of the

Consumer Contest, the name of the company providing the item(s),

and all other relevant terms and conditions of the Consumer

Contest.

C.

Media Advertising

1.

Except as provided in Regulations 47-322(B) and 47-322(C), and

subparagraph (C)(3) of this regulation, no supplier shall directly or

indirectly furnish or pay for any advertising for or with respect to any one

or more retail licensee by means of the internet, device applications

(apps), radio or television broadcast, magazines, newspapers, pamphlets,

or similar media, or by means of any sign not located on or in the licensed

premises of the retailer which is advertised.

2.

Except as provided in Regulations 47-322(B) and 47-322(C), suppliers

that purchase internet, device applications (apps), radio or television

advertising packages from third party advertising agencies:

a.

May not authorize the advertising agency to apply any value

attributable to the supplier’s advertising package toward the

advertising or promotion of any licensed retailer or their location.

b.

May not authorize the advertising agency to combine supplier-

purchased advertising packages with those purchased by licensed

retailers, for the purpose and benefit of cooperative advertising.

3.

A supplier may directly or indirectly advertise for or with respect to any one

able to the supplier’s advertising package toward the

advertising or promotion of any licensed retailer or their location.

b.

May not authorize the advertising agency to combine supplier-

purchased advertising packages with those purchased by licensed

retailers, for the purpose and benefit of cooperative advertising.

3.

A supplier may directly or indirectly advertise for or with respect to any one

(1) or more retailers that sell the supplier’s alcohol beverages, via the

supplier’s internet websites (including forums such as a supplier’s

Facebook page, blog or device applications (apps)) and electronic

advertising messages delivered directly to consumers’ private electronic

devices.

4.

Closed-circuit television advertising networks, or similar advertising

networks, that deliver advertising messages to consumers are permitted in

retail licensed premises with the following conditions:

a.

A supplier may not provide a licensed retailer with any electronic

equipment necessary to deliver network advertising.

b.

A licensed retailer may not receive revenues, directly or indirectly,

from licensed suppliers who advertise on the network. Revenue

from non-alcohol beverage suppliers who advertise on the same

network, which can be clearly distinguished by the network

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

40

advertiser from supplier revenues, are permitted provided that the

retailer can document that the source of the revenue is not a

licensed supplier.

c.

The advertising network and all related advertising receipts and

distributions must be controlled by third party entities who are not

licensed pursuant to Articles 3 or 4 of Title 44, and who are wholly

independent, in both form and substance, of any licensed supplier

or retailer.

D

are permitted provided that the

retailer can document that the source of the revenue is not a

licensed supplier.

c.

The advertising network and all related advertising receipts and

distributions must be controlled by third party entities who are not

licensed pursuant to Articles 3 or 4 of Title 44, and who are wholly

independent, in both form and substance, of any licensed supplier

or retailer.

D.

Nothing in this regulation shall apply to non-profit, charitable, or other qualifying

organizations, when such organization conducts licensed events pursuant to the

requirements contained in Article 5 of Title 44, and related regulations, and such

organization does not otherwise hold a retail license pursuant to Articles 3 or 4 of

Title 44. However, nothing herein shall authorize any financial assistance for the

purpose of altering or influencing an organization’s product selection for said

events.

E.

Except as otherwise provided for in this regulation, no supplier shall directly or

indirectly pay to any retailer, and no retailer shall accept, any value or

consideration in connection with or for the right or privilege of posting or

maintaining any advertising message, on or in, or relating to a retailer’s licensed

premises.

Regulation 47-317. Market Research - Non-Licensed Locations.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-202(1)(b), and 44-3-202(2)(a)(I)(A), C.R.S. The purpose of 1

C.C.R. 203-2, Regulation 47-317 is to provide guidance regarding the circumstances

and processes under which consumer market research may be conducted on non-

licensed premises.

Market research alcohol beverage consumer taste tests on an unlicensed liquor

premises are authorized subject to the following guidelines:

A.

The research company may contact people and conduct taste tests at shopping

malls or other public meeting places, but the taste tests must take place in a non-

public area.

B

es under which consumer market research may be conducted on non-

licensed premises.

Market research alcohol beverage consumer taste tests on an unlicensed liquor

premises are authorized subject to the following guidelines:

A.

The research company may contact people and conduct taste tests at shopping

malls or other public meeting places, but the taste tests must take place in a non-

public area.

B.

All participants must be twenty-one (21) years of age or older and not exhibit

visible signs of intoxication.

C.

There shall be no charge or fee to participate in the taste test, however, the

participant may be paid for participating in the market research.

D.

The product tasted must come through the 3-tier system to a Colorado

wholesaler and the excise tax on the product has been paid.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

41

E.

The product must be purchased from a liquor licensee authorized to sell alcohol

beverages for off-premises consumption.

F.

The research company must notify the Division in writing of the date, time and

location of the tasting prior to the taste tests by email at

DOR_LED@STATE.CO.US.

G.

Taste tests will be limited to two days per week between the hours of 2:00 PM

and 8:00 PM at each location and to a maximum of one hundred (100)

participants.

H.

Results of market research where competitors’ products are being used may not

be used in advertising.

I.

Failure to follow this regulation could result in the loss of the ability to conduct

marketing research pursuant to this regulation.

Regulation 47-318. Owner-Manager.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(B), 44-

3-202(2)(a)(I)(J), and 44-3-202(a)(I)(R), C.R.S. The purpose of this regulation is to

define the difference between a licensee/owner and a manager, and to clarify the

allowable method of payment to the manager.

A

ager.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(B), 44-

3-202(2)(a)(I)(J), and 44-3-202(a)(I)(R), C.R.S. The purpose of this regulation is to

define the difference between a licensee/owner and a manager, and to clarify the

allowable method of payment to the manager.

A.

Each license under the Liquor Code or the Beer and Wine Code must be held by

the owner of the establishment. “Owner” means the person or persons whose

proprietary interest is such that they bear risk of loss other than as an insurer,

and have opportunity to gain profit from operation or sale of the establishment.

In determining who is the “owner”, elements considered other than risk of loss

and opportunity for profit will include, but are not limited to: who has the right of

possession of the licensed premises, who controls the licensee, who guarantees

its debts, who is beneficiary under its insurance policies, who acknowledges

liability for federal, state or local taxes.

B.

Owners may hire managers, and managers may be compensated on the basis of

profits made, gross or net. In such cases, (except through an I.R.S. qualified

retirement account), the financial interests of the manager(s) must be reported on

the forms prescribed by the Division. The manager may be required to complete

an individual history report and be subject to a background check. A license may

not be held in the name of the manager.

C.

A spouse or partner in a civil union of a licensee may hold a license in their own

right if they are the owner of the licensed establishment, regardless of whether

they file separate or joint income tax returns.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

tory report and be subject to a background check. A license may

not be held in the name of the manager.

C.

A spouse or partner in a civil union of a licensee may hold a license in their own

right if they are the owner of the licensed establishment, regardless of whether

they file separate or joint income tax returns.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

42

D.

A partnership interest, limited or general, a joint venture interest, or ownership of

a share or shares in a corporation which is licensed, constitutes ownership.

Regulation 47-319. Liquor-Licensed Drugstore Manager Permit.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(B), 44-3-202(2)(a)(I)(R), 44-

3-410(6), and 44-3-427, C.R.S. The purpose of this regulation is to provide guidance

and clarity to licensees regarding statutory requirements found in sections 44-3-410(6)

and 44-3-427, C.R.S. involving manager’s permits and when a permitted manager is

required.

A.

A liquor-licensed drugstore permitted manager is a person who has been

designated by the licensee as a person who is in actual control of the liquor-

licensed drugstore’s alcohol beverage operations, including purchases of alcohol

beverages from a licensed wholesaler in accordance with sections 44-3-410(6)

and 44-3-427(1), C.R.S.

B.

A liquor-licensed drugstore shall have a permitted manager on duty and working

on the licensed premises during all hours of operation.

C.

A liquor-licensed drugstore licensee must submit an application for each

permitted manager with the Division on forms approved by the State Licensing

Authority. The manager permit is an annual permit that is renewed every year.

D.

All liquor-licensed drugstore alcohol orders shall only be made by a person who

has a valid manager permit pursuant to section 44-3-427, C.R.S.

Regulation 47-320. Signs and Interior Displays.

Basis and Purpose

t submit an application for each

permitted manager with the Division on forms approved by the State Licensing

Authority. The manager permit is an annual permit that is renewed every year.

D.

All liquor-licensed drugstore alcohol orders shall only be made by a person who

has a valid manager permit pursuant to section 44-3-427, C.R.S.

Regulation 47-320. Signs and Interior Displays.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(G), 44-3-202(2)(a)(I)(H), 44-

3-202(2)(a)(I)(R), and 44-3-308, C.R.S. The purpose of this regulation is to establish

certain permitted and prohibited sign and display practices between suppliers and

retailers in order to clarify and prevent statutorily prohibited financial assistance

between tiers.

A.

For purposes of this regulation, “signs” shall mean any visual message intended

for the consumer that is located within, or on the exterior of, the retailer’s licensed

premises for the purpose of displaying advertising messages or other information

related to alcohol beverage suppliers or their products.

B.

A supplier's signs, illuminated or otherwise, that may be provided free of charge

to a licensed retailer, shall be composed of any standard, pre-manufactured

material such as paper, plastic, glass (including mirrored glass), cloth, metal, or

programmable electronic components, and shall have no other utilitarian value.

Murals and other permanently installed works of art that are not comprised of

pre-manufactured materials may not be provided to a licensed retailer free of

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

material such as paper, plastic, glass (including mirrored glass), cloth, metal, or

programmable electronic components, and shall have no other utilitarian value.

Murals and other permanently installed works of art that are not comprised of

pre-manufactured materials may not be provided to a licensed retailer free of

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

43

charge, but must be paid for by the retailer at a price not less than the suppliers’

actual cost.

C.

The term “displays within such premises,” hereinafter referred to as “interior

displays,” shall mean all non-refrigerated racks, bins, barrels, casks, shelving, or

similar items, the primary function of which is to hold, shelve, or display alcohol

beverages within retail premises.

D.

A supplier's standard interior display that may be provided free of charge to a

licensed retailer, shall have no other utilitarian value other than that of being

purely for display purposes. Any interior display containing any property other

than that authorized in paragraph (C) above, may not be given or loaned to a

licensed retailer, but must be sold at a price not less than the supplier’s actual

cost.

E.

Advertising statements on signs and interior displays that are permitted to be

provided free of charge to a retailer, shall primarily consist of a supplier's name,

brand name, trade name, or trademarks; words or phrases, such as “on tap,” “on

draft,” “in bottles,” “in cans,” “beverages,” “beverage department,” “ice cold,” “take

home,” and similar copy; and words or phrases such as “delicious with [insert a

specifically named food or food products or food generally]” or a similar

statement suggesting pairing of an alcohol beverage with a type of food and

constituting a part of the supplier's standard advertising

s, such as “on tap,” “on

draft,” “in bottles,” “in cans,” “beverages,” “beverage department,” “ice cold,” “take

home,” and similar copy; and words or phrases such as “delicious with [insert a

specifically named food or food products or food generally]” or a similar

statement suggesting pairing of an alcohol beverage with a type of food and

constituting a part of the supplier's standard advertising. Permitted language may

also include a retailer's name and address, the retailer-established selling price

of alcohol beverages, and retailer-specific promotional announcements, provided

that the sign or interior display, in its totality, primarily advertise the supplier or its

products.

F.

No supplier shall directly or indirectly pay to any retailer, and no retailer shall

accept, any value or consideration in connection with, or for the right or privilege

of, installing or maintaining any sign or interior display on, or in, or relating to, a

retailer's licensed premises.

G.

Nothing in this regulation shall apply to non-profit, charitable, or other qualifying

organizations, when such organization conducts licensed events pursuant to the

requirements contained in Article 5 of Title 44, and related regulations, and such

organization does not otherwise hold a retail license pursuant to Articles 3 or 4 of

Title 44. However, nothing herein shall authorize any financial assistance for the

purpose of altering or influencing an organization's product selection for said

events.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

ed in Article 5 of Title 44, and related regulations, and such

organization does not otherwise hold a retail license pursuant to Articles 3 or 4 of

Title 44. However, nothing herein shall authorize any financial assistance for the

purpose of altering or influencing an organization's product selection for said

events.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

44

Regulation 47-321. Bona Fide Loyalty or Rewards Programs – Discontinued Sales

– Close-Out Sales.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-103, 44-3-202(1)(b), 44-3-202(2)(a)(I)(A), 44-3-202(2)(a)(I)(D), 44-

3-202(2)(a)(I)(G), 44-3-202(2)(a)(I)(O), 44-3-202(2)(a)(I)(R), 44-3-409(2)(a), 44-3-

410(2)(a)(II), and 44-4-107(4)(a), C.R.S. The purpose of this regulation is to clarify how

applicable licensees may sell alcohol beverages below cost under limited statutory

exceptions.

A.

A.

A retailer licensed pursuant to sections 44-3-409 or 44-3-410, or

subsection 44-4-107(1)(a), C.R.S., shall not sell alcohol beverages to consumers

at a consumer price that is below the retailer’s cost, as listed on the invoice,

unless the sale is of discontinued or close-out alcohol beverages. For purposes

of this paragraph:

1.

“Discontinued” means when a manufacturer or importer discontinues the

production, importation, or market availability of a specific alcohol

beverage product. A retailer’s decision to stop making available the

alcohol beverage product for purchase by a consumer does not qualify as

a discontinued product.

2.

To qualify as a “close-out” sale, the following conditions must be satisfied:

a.

The close-out sale must include and liquidate, by sale or

destruction, all of the retailer’s current inventory of a specific

alcohol beverage product as of the date the close-out sale begins.

b

stop making available the

alcohol beverage product for purchase by a consumer does not qualify as

a discontinued product.

2.

To qualify as a “close-out” sale, the following conditions must be satisfied:

a.

The close-out sale must include and liquidate, by sale or

destruction, all of the retailer’s current inventory of a specific

alcohol beverage product as of the date the close-out sale begins.

b.

The retailer is prohibited from selling the specific alcohol beverage

product that was involved in the close-out sale at a price below the

retailer’s cost for a period of two (2) years commencing on the date

the last item included in the close-out sale is liquidated.

B.

A retailer licensed pursuant to section 44-3-409 or 44-3-410, or subsection 44-4-

107(1)(a), C.R.S., shall not be prohibited from operating a bona fide loyalty or

rewards program for alcohol beverages the retailer is licensed to sell so long as

the consumer price for the product is not below the retailer’s costs as listed on

the invoice. For purposes of paragraph (A) through (C) of this regulation:

1.

“Bona fide loyalty program” means a structured program used by a retailer

licensed pursuant to sections 44-3-409 or 44-3-410, or subsection 44-4-

107(1)(a), C.R.S., to encourage participants to continue to shop at the

retailer’s licensed business by allowing participants access to special

pricing on products by virtue of being a member of the bona fide loyalty

program.

2.

“Bona fide rewards program” means a structured program used by a

retailer licensed pursuant to section 44-3-409 or 44-3-410, or subsection

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

ontinue to shop at the

retailer’s licensed business by allowing participants access to special

pricing on products by virtue of being a member of the bona fide loyalty

program.

2.

“Bona fide rewards program” means a structured program used by a

retailer licensed pursuant to section 44-3-409 or 44-3-410, or subsection

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

45

44-4-107(1)(a), C.R.S., to encourage participants to continue to shop at

the retailer’s licensed business by allowing participants to accrue program

benefits, in the form of points or other accrual-based methods of reward,

through the purchase of alcohol beverages, to be redeemed in the form of

a discount upon a subsequent sales transaction on alcohol beverage

products only.

3.

“Retailer’s cost” means:

a.

If purchased from a wholesaler, the actual proportionate invoice

price charged by the wholesaler, per item, including applicable

state and federal taxes. All invoices must clearly designate a price

paid for each product, which shall not be less than the wholesaler’s

laid-in cost for each product.

b.

If purchased from a selling licensee pursuant to subsection 44-3-

409(6), C.R.S., and Regulation 47-304(H)(3), the cost paid by the

acquiring licensee, as defined in subsection 44-3-409(6)(b)(II),

C.R.S.

4.

“Consumer Price” means the amount paid by a consumer to a retailer for

an alcohol beverage product, which includes any bona fide loyalty or

rewards program benefits in the form of a discount. The consumer price

does not include applicable sales taxes paid by the consumer.

5.

A supplier shall not provide to a retailer, and a retailer shall not accept

from a supplier, any financial assistance in connection with a bona fide

loyalty or rewards program.

6.

Bona fide rewards program benefits shall be structured so that both the

accrual and redemption of benefits is applied without discrimination across

all brands and labels of alcohol beverages

axes paid by the consumer.

5.

A supplier shall not provide to a retailer, and a retailer shall not accept

from a supplier, any financial assistance in connection with a bona fide

loyalty or rewards program.

6.

Bona fide rewards program benefits shall be structured so that both the

accrual and redemption of benefits is applied without discrimination across

all brands and labels of alcohol beverages. However, bona fide rewards

program benefits may differentiate in accrual and redemption rate for

classes of alcohol products (beer, wine, spirits).

C.

A.

A retailer described in subparagraph (B) of this regulation shall maintain

and make available those business records regarding all bona fide loyalty or

rewards program transactions consistent with Regulation 47-700, 1 C.C.R. 203-

2. A retailer described in subparagraph (B) of this regulation must maintain, at a

minimum, the following records regarding its bona fide loyalty or rewards

program:

1.

Documentation regarding the value of loyalty or rewards program benefits

and how those benefits may be accrued and redeemed by participants;

2.

Documentation showing the loyalty or rewards program benefits actually

accrued and redeemed by each participant, organized by a unique

customer identification number assigned to each participant;

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

46

3.

Invoices showing the retailer’s cost of the individual alcohol beverage

product to which any consumer loyalty or rewards benefit was applied or

redeemed; and

4.

Receipts for every alcohol beverage sale to which loyalty or rewards

program benefits are redeemed, showing the consumer price for every

alcohol beverage and the amount of such benefits.

Regulation 47-322. Unfair Trade Practices and Competition.

Basis and Purpose

ailer’s cost of the individual alcohol beverage

product to which any consumer loyalty or rewards benefit was applied or

redeemed; and

4.

Receipts for every alcohol beverage sale to which loyalty or rewards

program benefits are redeemed, showing the consumer price for every

alcohol beverage and the amount of such benefits.

Regulation 47-322. Unfair Trade Practices and Competition.

Basis and Purpose. The statutory authority for this regulation includes, but is not limited

to, subsections 44-3-102, 44-3-103, 44-3-201(1), 44-3-202(1)(b), 44-3-202(2)(a), 44-3-

202(2)(a)(I)(A), 44-3-202(2)(a)(I)(C), 44- 3-202(2)(a)(I)(G), 44-3-202(2)(a)(I)(R), 44-3-

308, 44-3-407(1.5), and 44-4-102, C.R.S. The purpose of this regulation is to establish

certain permitted and prohibited trade practices between suppliers and retailers in order

to clarify and prevent statutorily prohibited financial assistance between tiers.

Retailers may not accept any prohibited financial assistance as described herein, and

suppliers are prohibited from directly or indirectly engaging in the following unfair

practices:

A.

Sales of alcohol beverages.

1.

No vinous or spirituous liquor may be sold by a vinous or spirituous liquor

manufacturer or wholesaler to a retail licensee below the laid-in cost of

said vinous and spirituous liquor products.

2.

No malt liquors or fermented malt beverages may be sold by a malt

liquor/beverage manufacturer or wholesaler to a retail licensee below the

laid-in cost of said malt liquor/beverage products.

3.

Product cost per case will be determined utilizing a “Last In/First Out”

basis unless a supplier has adequate records to verify that the actual cost

of said products was less than the most recent shipment received.

4.

A wholesaler's laid-in cost is defined as the actual proportionate invoice

price and freight charge to that wholesaler or distributor, plus applicable

state and federal taxes of any given product

per case will be determined utilizing a “Last In/First Out”

basis unless a supplier has adequate records to verify that the actual cost

of said products was less than the most recent shipment received.

4.

A wholesaler's laid-in cost is defined as the actual proportionate invoice

price and freight charge to that wholesaler or distributor, plus applicable

state and federal taxes of any given product. An in-state manufacturer's

laid-in cost is defined as the actual costs of the manufacturer, plus

applicable state and federal taxes.

5.

Certain sales of alcohol beverages below cost are not designed or

intended to influence or control a retailer's product selection. The following

exceptions to below cost product sales are therefore permitted:

a.

Product lines that will be discontinued by a supplier for a minimum

of at least one year may be sold below cost at market value.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

47

b.

A wholesaler's aged inventory of vinous and spirituous liquors for

which the current market value has fallen substantially below the

wholesaler's original purchase cost, after a period of twelve (12)

months, and for which a recovery of the original cost through an

increase in market value is unlikely. For aged inventories sold to

retailers below their cost due to market-below-cost conditions,

wholesalers shall maintain the following records for a minimum of

three (3) years:

i.

Original purchase invoice.

ii.

Aged inventory schedule verifying slow sales and drop in

market value.

iii.

Other factors that had an effect on a decrease in market

value (e.g. overproduction, poor media critique).

c.

Products for use, but not for resale by the drink, by a non-profit

organization or similar group, as defined in section 44-5-102,

C.R.S., on a retailer's licensed premises, may be invoiced to a

retailer at no cost. The invoice for said products must detail the

products provided and the group for whose benefit it is provided

a decrease in market

value (e.g. overproduction, poor media critique).

c.

Products for use, but not for resale by the drink, by a non-profit

organization or similar group, as defined in section 44-5-102,

C.R.S., on a retailer's licensed premises, may be invoiced to a

retailer at no cost. The invoice for said products must detail the

products provided and the group for whose benefit it is provided. At

the conclusion of the organization's event any unused product must

be returned to the wholesaler, brew pub, distillery pub, or vintner's

restaurant, or invoiced at a minimum of laid in cost to the retailer.

6.

Suppliers authorized to sell alcohol beverages to licensed retailers

pursuant to Articles 3 or 4 of Title 44, may offer product discounts to

licensed retailers that meet the requirements of paragraph (A), and the

following additional conditions:

a.

“Product Discount” shall mean a price reduction negotiated

between supplier and retailer before the sale and delivery of alcohol

beverage products, and where a description of the products subject

to discount, and the dollar amount of the discount, is finalized and

recorded in the supplier's sales records.

b.

Discount programs are not subject to time limitations, and any

discount program that will affect more than a single sales

transaction and sales invoice are permitted, provided that no

invoice, by itself, reflects a zero cost or below-cost sale.

c.

Product discounts that are conditioned upon a retailer's

commitment to prominently display the supplier's products are

prohibited.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

ny

discount program that will affect more than a single sales

transaction and sales invoice are permitted, provided that no

invoice, by itself, reflects a zero cost or below-cost sale.

c.

Product discounts that are conditioned upon a retailer's

commitment to prominently display the supplier's products are

prohibited.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

48

7.

Any rebate, whereby a monetary value is returned by a supplier to a

retailer, in cash, account credit, or free goods, as a reward or

compensation for meeting a pre-specified purchase goal, is prohibited.

8.

Suppliers authorized to sell alcohol beverages to licensed retailers

pursuant to Articles 3 or 4 of Title 44, may offer account credits to licensed

retailers under the following conditions:

a.

Any account credit offered on previously issued sales invoices must

be in direct relation to previous product purchases, lawful returns

pursuant to this regulation or other legitimate commercial

transactions as authorized under Articles 3 or 4 of Title 44, C.R.S.

and related regulations.

b.

Credits that cannot be connected with authorized business

transactions, as described herein, will be considered unlawful

financial assistance, and are therefore prohibited.

c.

Both the seller and retail licensee shall maintain copies of sales

invoices and evidence of payment related to the transactions

described in this section, in accordance with section 44-3-701,

C.R.S., and for the time frame specified in Regulation 47-700.

9.

Wholesaler invoices provided to retail liquor store, fermented malt

beverage and wine retailer, and liquor licensed drugstore licensees must

clearly designate a price paid for each product, which shall not be less

than the wholesaler’s laid-in cost of each product. At no point may a retail

liquor store, fermented malt beverage and wine retailer, or liquor licensed

drugstore licensee receive any products from a wholesaler at less than

laid-in cost.

B.

On-site sales promotions

1

wine retailer, and liquor licensed drugstore licensees must

clearly designate a price paid for each product, which shall not be less

than the wholesaler’s laid-in cost of each product. At no point may a retail

liquor store, fermented malt beverage and wine retailer, or liquor licensed

drugstore licensee receive any products from a wholesaler at less than

laid-in cost.

B.

On-site sales promotions

1.

Suppliers may conduct an on-site product sales promotion at a retailer's

licensed premises subject to the following conditions:

a.

Free goods of any value may be provided to the public, provided

that a supplier's representative or authorized agent, who is not the

retailer or a retail employee/agent, is physically present to award

free goods to the public. Suppliers shall not require a customer

purchase in order for the customer to receive the free goods.

b.

If only consumer advertising specialties, as described in Regulation

47-316(A), are to be provided at the promotion, neither suppliers or

their agents need be present for their distribution.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

49

c.

Suppliers are prohibited from providing anything other than the

items specified in Regulation 47-316(A) to retailers or their

employees at on-site product sales promotions.

d.

Suppliers may provide or pay for any media announcement of an

on-site product sales promotion that primarily advertises the

product, the location, and the date and time of the promotion. The

name of the retail outlet may also be mentioned.

e.

Retailers may at their own cost advertise in advance a supplier's

product sales promotion.

f.

No supplier may require that a retailer change its product selection

as a condition of conducting a product sales promotion. Retailers

may at their option change their product selection in support of a

product sales promotion.

g.

Competitors' products may not be excluded during a product sales

promotion.

2.

On-Premises Sampling

own cost advertise in advance a supplier's

product sales promotion.

f.

No supplier may require that a retailer change its product selection

as a condition of conducting a product sales promotion. Retailers

may at their option change their product selection in support of a

product sales promotion.

g.

Competitors' products may not be excluded during a product sales

promotion.

2.

On-Premises Sampling. A supplier-sponsored consumer sampling of

alcohol beverages may be held at a retailer’s premises licensed for on-

premises consumption for the purpose of product sales promotion under

the following conditions:

a.

A supplier-sponsored consumer sampling held at the licensed

premises of a retailer licensed for on-premises consumption shall

include only the alcohol beverages the retailer is licensed to sell.

b.

The supplier shall only offer its alcohol beverage product to

consumers during a supplier-sponsored consumer sampling.

c.

A retailer or supplier shall not impose any charge to the consumer

to enter or participate in the sampling.

d.

Product used for sampling must be invoiced by the supplier, who is

authorized to sell the alcohol beverages to licensed retailers

pursuant to Articles 3 or 4 of Title 44, as if sold to the retailer.

e.

If all product listed in the sales invoice is consumed as permitted

herein, the supplier may issue the retailer a credit against the entire

amount of the original invoice.

f.

Any remaining product must be returned to the wholesaler, or sold

to the retailer at a minimum of the wholesaler’s cost.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

ld to the retailer.

e.

If all product listed in the sales invoice is consumed as permitted

herein, the supplier may issue the retailer a credit against the entire

amount of the original invoice.

f.

Any remaining product must be returned to the wholesaler, or sold

to the retailer at a minimum of the wholesaler’s cost.

CODE OF COLORADO REGULATIONS

1 CCR 203-2

Liquor and Tobacco Enforcement Division

50

g.

The supplier must be present and shall be the person who provides

the sample to a consumer who is twenty-one (21) years of age or

older.

h.

Suppliers may provide or pay for any media announcement of a

supplier-sponsored consumer sampling that primarily advertises the

product, the location, and the date and time of the sampling. The

name of the retailer may also be mentioned.

3.

Off-Premises Giveaway. A supplier-sponsored consumer giveaway of

sealed malt liquor or fermented malt beverages may be held at a retailer’s

premises licensed for off-premises consumption for the purpose of product

sales promotion under the following conditions:

a.

A supplier-sponsored consumer giveaway held at the licensed

premises of a retailer licensed for off-premises consumption is

limited to either sealed malt liquor or fermented malt beverages,

whichever the retailer is licensed to sell.

b.

The supplier shall only offer its malt liquor or fermented malt

beverages product to consumers during a supplier-sponsored

consumer giveaway.

c.

A retailer or supplier shall not impose any charge to the consumer

to enter or participate in the giveaway.

d.

Product used for the giveaway must be invoiced by a supplier, who

is authorized to sell malt liquor or fermented malt beverage to

licensed retailers pursuant to Articles 3 or 4 of Title 44, as if sold to

the retailer.

e.

If all product listed in the sales invoice is given away as permitted

herein, the supplier may issue the retailer a credit against the entire

amount of the original invoice.

f

d.

Product used for the giveaway must be invoiced by a supplier, who

is authorized to sell malt liquor or fermented malt beverage to

licensed retailers pursuant to Articles 3 or 4 of Title 44, as if sold to

the retailer.

e.

If all product listed in the sales invoice is given away as permitted

herein, the supplier may issue the retailer a credit against the entire

amount of the original invoice.

f.

Any remaining product must be returned to the wholesaler, or sold

to the retailer at a minimum of the wholesaler's cost.

g.

The supplier must be present and shall be the person who gives

the sealed container to consumers. The supplier must verify that

each consumer is of lawful age prior to giving away the sealed

container.

h.

Suppliers may provide or pay for any media announcement of a

supplier-sponsored consumer giveaway that primarily advertises

the product, the location, and the date and time of the giveaway.

The

This text is long and has been trimmed here. Open the source document for the complete record.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.