(1) No local licensing authority shall issue a license provided for in this article 3 or article 4 or 5 of this title 44 until that share of the license fee due the state has been received by the department. All licenses granted pursuant to this article 3 and articles 4 and 5 of this title 44 shall be valid for a period of one year from the date of their issuance unless revoked or suspended pursuant to section 44-3-601 or 44-3-306. (2) (a) Before granting any license, all licensing authorities shall consider, except where this article 3 and article 4 of this title 44 specifically provide otherwise, the reasonable requirements of the neighborhood, the desires of the adult inhabitants as evidenced by petitions, remonstrances, or otherwise, and all other reasonable restrictions that are or may be placed upon the neighborhood by the local licensing authority. With respect to a second or additional license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w) or 44-3-412 (1) or in a financial institution referred to in section 44-3-308 (4) for the same licensee, all licensing authorities shall consider the effect on competition of the granting or disapproving of additional licenses to such licensee and shall not approve an application for a second or additional license that would have the effect of restraining competition. (b) A local licensing authority may delegate its licensing authority to the state licensing authority when an applicant is applying for or renewing a license to sell alcohol beverages at retail for consumption on or off a licensed premises and the licensed premises is located on state- owned property. A local licensing authority may deny the issuance of any new tavern or retail liquor store license whenever such authority determines that the issuance of the 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. (c) The state licensing authority shall approve the proposed premises for a winery applying pursuant to section 44-3-402 or 44-3-403, which premises includes up to two noncontiguous locations used for manufacturing vinous liquors, or a modification of the licensed premises of a winery licensed pursuant to section 44-3-402 or 44-3-403 to include up to two noncontiguous locations used for manufacturing vinous liquors if the alcohol and tobacco tax and trade bureau of the United States department of the treasury has approved the description and diagram of the proposed or modified premises. Additionally, with the initial license application that includes noncontiguous locations within the proposed premises or a subsequent application to modify the premises to include noncontiguous locations, the winery licensee must submit proof from the municipality in which the premises is located of compliance with all applicable zoning, building, fire, and other requirements for occupancy and operation. The state licensing authority may, by rule, establish a one-time application fee and an annual renewal fee, neither of which may exceed five hundred dollars per location, for applications under this subsection (2)(c). (d) The state licensing authority shall approve the proposed premises for a distillery applying pursuant to section 44-3-402, which premises includes up to two noncontiguous locations used for manufacturing spirituous liquors, or a modification of the licensed premises of a distillery licensed pursuant to section 44-3-402 to include up to two noncontiguous locations used for manufacturing spirituous liquors, if the alcohol and tobacco tax and trade bureau of the United States department of the treasury has approved the description and diagram of the proposed or modified premises. Additionally, with the initial license application that includes noncontiguous locations within the proposed premises or a subsequent application to modify the premises to include noncontiguous locations, the licensee shall submit proof from the local licensing authority in which the premises is located of compliance with all applicable zoning, building, fire, and other requirements for occupancy and operation. The state licensing authority may, by rule, establish a one-time application fee and an annual renewal fee, neither of which may exceed five hundred dollars per location, for applications under this subsection (2)(d). (e) The state licensing authority shall approve the proposed premises for a brewery applying pursuant to section 44-3-402, which premises includes up to two noncontiguous locations used for manufacturing malt liquors, or a modification of the licensed premises of a brewery licensed pursuant to section 44-3-402 to include up to two noncontiguous locations used for manufacturing malt liquors, if the alcohol and tobacco tax and trade bureau of the United States department of the treasury has approved the description and diagram of the proposed or modified premises. Additionally, with the initial license application that includes noncontiguous locations within the proposed premises or a subsequent application to modify the premises to include noncontiguous locations, the licensee shall submit proof from the local licensing authority in which the premises is located of compliance with all applicable zoning, building, fire, and other requirements for occupancy and operation. The state licensing authority may, by rule, establish a one-time application fee and an annual renewal fee, neither of which may exceed five hundred dollars per location, for applications under this subsection (2)(e). (3) (a) (I) Each license issued under this article 3 and article 4 of this title 44 is separate and distinct. It is unlawful for any person to exercise any of the privileges granted under any license other than the license the person holds or for any licensee to allow any other person to exercise the privileges granted under the licensee's license, except as provided in section 44-3- 402 (3), 44-3-403 (2)(a), 44-3-404, or 44-3-417 (1)(b). A separate license must be issued for each specific business or business entity and each geographic location, and in the license the particular alcohol beverages the applicant is authorized to manufacture or sell must be named and described. (II) For purposes of this section, each of the following is considered a single business and location: (A) A resort complex with common ownership; (B) A campus liquor complex; (C) A hotel and restaurant licensee with optional premises; (D) An optional premises licensee for optional premises located on an outdoor sports and recreational facility; (E) A winery or limited winery licensed pursuant to section 44-3-402 or 44-3-403 that has noncontiguous locations included in the licensed premises; (F) A brewery licensed pursuant to section 44-3-402 that has noncontiguous locations included in the licensed premises; (G) A distillery licensed pursuant to section 44-3-402 that has noncontiguous locations included in the licensed premises; and (H) A festival at which more than one licensee participates pursuant to a festival permit. (b) At all times a licensee shall possess and maintain possession of the premises or optional premises for which the license is issued by ownership, lease, rental, or other arrangement for possession of the premises. (4) (a) The licenses provided pursuant to this article 3 and article 4 of this title 44 shall specify the date of issuance, the period which is covered, the name of the licensee, the premises or optional premises licensed, the optional premises in the case of a hotel and restaurant license, and the alcohol beverages that may be sold on the premises or optional premises. The license shall be conspicuously placed at all times on the licensed premises or optional premises, and all sheriffs and police officers shall see to it that every person selling alcohol beverages within their jurisdiction has procured a license to do so. (b) No local licensing authority shall issue, transfer location of, or renew any license to sell any alcohol beverages until the person applying for the license produces a license issued and granted by the state licensing authority covering the whole period for which a license or license renewal is sought. (5) In computing any period of time prescribed by this article 3, the day of the act, event, or default from which the designated period of time begins to run shall not be included. Saturdays, Sundays, and legal holidays shall be counted as any other day. (6) (a) Licensees at facilities owned by a municipality, county, or special district or at publicly or privately owned sports and entertainment venues with a minimum seating capacity of one thousand five hundred seats may possess and serve for on-premises consumption any type of alcohol beverage as may be permitted pursuant to guidelines established by the local and state licensing authorities, and the licensees need not have meals available for consumption. (b) Nothing in this article 3 shall prohibit a licensee at a sports and entertainment venue described in subsection (6)(a) of this section from selling or providing alcohol beverages in sealed containers, as authorized by the license in effect, to adult occupants of luxury boxes located at stadiums, arenas, and similar sports and entertainment venues that are included within the licensed premises of the licensee. However, no person shall be allowed to leave the licensed premises with a sealed container of alcohol beverage that was obtained in the luxury box. As used in this subsection (6)(b), "luxury box" means a limited public access room or booth that is used by its occupants and their guests at sports and entertainment venues that are provided within the licensed premises. (7) A licensee shall report each transfer or change of financial interest in the license to the state licensing authority and, for retail licenses, to the local licensing authority within thirty days after the transfer or change. A report shall be required for transfers of capital stock of a public corporation; except that a report shall not be required for transfers of such stock totaling less than ten percent in any one year, but any transfer of a controlling interest shall be reported regardless of size. It is unlawful for the licensee to fail to report a transfer required by this subsection (7). Failure to report shall be grounds for suspension or revocation of the license. (8) Each licensee holding a fermented malt beverage and wine on-premises license or on- and off-premises license, beer and wine license, hotel and restaurant license, lodging facility license, tavern license, entertainment facility license, club license, arts license, or racetrack license shall manage the premises or employ a separate and distinct manager on the premises and shall report the name of the manager to the state and local licensing authorities. The licensee shall report any change in managers to the state and local licensing authorities within thirty days after the change. When a hotel and restaurant, lodging facility, tavern, or entertainment facility licensee reports a change in manager to the state and local licensing authorities, the licensee shall pay: (a) A thirty-dollar fee to the state licensing authority; and (b) A thirty-dollar fee to the local licensing authority. (9) (a) (I) (A) Subject to subsections (9)(a)(I)(B) and (9)(a)(I)(C) of this section, a licensee may move its permanent location to any other place in the same city, town, or city and county for which the license was originally granted, or in the same county if the license was granted for a place outside the corporate limits of any city, town, or city and county, but it is unlawful to sell any alcohol beverage at the new location until permission is granted by the state and local licensing authorities. (B) The state and local licensing authorities shall not grant permission under this subsection (9)(a)(I) to a fermented malt beverage and wine retailer licensed under section 44-4- 107 (1)(a) to move its permanent location if the new location is: Within one thousand five hundred feet of a retail liquor store licensed under section 44-3-409; for a premises located in a municipality with a population of ten thousand or fewer, within three thousand feet of a retail liquor store licensed under section 44-3-409; or, for a premises located in a municipality with a population of ten thousand or fewer that is contiguous to the city and county of Denver, within one thousand five hundred feet of a retail liquor store licensed under section 44-3-409. (C) The state and local licensing authorities shall not grant permission under this subsection (9)(a)(I) to a retail liquor store licensed under section 44-3-409 to move its permanent location if the new location is: Within one thousand five hundred feet of another retail liquor store licensed under section 44-3-409; for a premises located in a municipality with a population of ten thousand or fewer, within three thousand feet of another retail liquor store licensed under section 44-3-409; or, for a premises located in a municipality with a population of ten thousand or fewer that is contiguous to the city and county of Denver, within one thousand five hundred feet of another retail liquor store licensed under section 44-3-409. (II) Notwithstanding subsection (9)(a)(I) of this section and subject to subsection (9)(a)(I)(C) of this section, for a retail liquor store licensed on or before January 1, 2016, the licensee may apply to move the permanent location to another place within or outside the municipality or county in which the license was originally granted. It is unlawful for the licensee to sell any alcohol beverages at the new location until permission is granted by the state and local licensing authorities. (b) (I) In permitting a change of location, the licensing authorities shall consider the reasonable requirements of the neighborhood to which the applicant seeks to change his or her location, the desires of the adult inhabitants as evidenced by petitions, remonstrances, or otherwise, and all reasonable restrictions that are or may be placed upon the new district by the council, board of trustees, or licensing authority of the city, town, or city and county or by the board of county commissioners of any county. (II) If the state and local licensing authorities approve an application for a change of location submitted under subsection (9)(a)(II) of this section by a retail liquor store licensed on or before January 1, 2016, the licensee must change the location of its premises within three years after the approval is granted. (10) (a) The provisions of this subsection (10) shall only apply within a county, city and county, or municipality if the governing body of the county, city and county, or municipality adopts an ordinance or resolution authorizing tastings pursuant to this subsection (10). The ordinance or resolution may provide for stricter limits than this subsection (10) on the number of tastings per year per licensee, the days on which tastings may occur, or the number of hours each tasting may last. (b) A retail liquor store, liquor-licensed drugstore, or fermented malt beverage and wine retailer licensee who wishes to conduct tastings may submit an application or application renewal to the local licensing authority. The local licensing authority may reject the application if the applicant fails to establish that he or she is able to conduct tastings without violating the provisions of this section or creating a public safety risk to the neighborhood. A local licensing authority may establish its own application procedure and may charge a reasonable application fee. (c) Tastings are subject to the following limitations: (I) Tastings shall be conducted only: (A) By a person who: Has completed a server training program that meets the standards established by the liquor enforcement division in the department and is a retail liquor store, liquor-licensed drugstore, or fermented malt beverage and wine retailer licensee, an employee of a retail liquor store, liquor-licensed drugstore, or fermented malt beverage and wine retailer licensee, or a representative, employee, or agent of the licensed wholesaler, brew pub, distillery pub, manufacturer, limited winery, importer, or vintner's restaurant promoting the alcohol beverages for the tasting; and (B) On a licensee's licensed premises. (II) The alcohol beverage used in tastings must be purchased through a licensed wholesaler, licensed brew pub, licensed distillery pub, or winery licensed pursuant to section 44- 3-403 at a cost that is not less than the laid-in cost of the alcohol beverage. (III) The size of an individual alcohol sample shall not exceed one ounce of malt or vinous liquor or one-half of one ounce of spirituous liquor. (IV) Tastings shall not exceed a total of five hours in duration per day, which need not be consecutive. (V) The licensee may conduct tastings only during the operating hours in which the licensee on whose premises the tastings occur is permitted to sell alcohol beverages, and in no case earlier than 10 a.m. or later than 9 p.m. (VI) The licensee shall prohibit patrons from leaving the licensed premises with an unconsumed sample. (VII) 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 at a tasting conducted at a later time or date. (VIII) The licensee shall not serve a person who is under twenty-one years of age or who is visibly intoxicated. (IX) The licensee shall not serve more than four individual samples to a patron during a tasting. (X) Alcohol samples shall be in open containers and shall be provided to a patron free of charge. (XI) The licensee may conduct tastings on no more than one hundred fifty-six days per year. (XII) No manufacturer of spirituous or vinous liquors shall induce a licensee through free goods or financial or in-kind assistance to favor the manufacturer's products being sampled at a tasting. The retail liquor store, liquor-licensed drugstore, or fermented malt beverage and wine retailer licensee bears the financial and all other responsibility for a tasting conducted on its licensed premises. (d) A violation of a limitation specified in this subsection (10) by a retail liquor store, liquor-licensed drugstore, or fermented malt beverage and wine retailer licensee, whether by the licensee's employees, agents, or otherwise or by a representative, employee, or agent of the licensed wholesaler, brew pub, distillery pub, manufacturer, limited winery, importer, or vintner's restaurant that promoted the alcohol beverages for the tasting, is the responsibility of, and section 44-3-801 applies to, the retail liquor store, liquor-licensed drugstore, or fermented malt beverage and wine retailer licensee that conducted the tasting. (e) A retail liquor store, liquor-licensed drugstore, or fermented malt beverage and wine retailer licensee conducting a tasting shall be subject to the same revocation, suspension, and enforcement provisions as otherwise apply to the licensee. (f) Nothing in this subsection (10) shall affect the ability of a Colorado winery licensed pursuant to section 44-3-402 or 44-3-403 to conduct a tasting pursuant to the authority of section 44-3-402 (2) or 44-3-403 (2)(e). (g) (I) An off-premises retailer may conduct a tasting of alcohol beverages from the off- premises retail licensee's existing inventory. (II) Off-premises retailers may hold tastings, subject to restrictions as to the serving size of any one sample and overall total amounts of all alcohol beverages that are tasted. The total amount of alcohol beverages to be sampled at a tasting shall be limited to, regardless of the number of items being tasted, not more than four ounces of malt liquor, four ounces of vinous liquor, and two ounces of spirituous liquor per customer per day. (11) (a) This subsection (11) applies only within an entertainment district that a governing body of a local licensing authority has created by ordinance or resolution. This subsection (11) does not apply to a special event permit issued under article 5 of this title 44 or the holder thereof unless the permit holder desires to use an existing common consumption area and agrees in writing to the requirements of this article 3 and the local licensing authority concerning the common consumption area. (b) A governing body of a local licensing authority may create an entertainment district by adopting an ordinance or resolution. An entertainment district shall not exceed one hundred acres. The ordinance or resolution may impose stricter limits than required by this subsection (11) on the size, security, or hours of operation of any common consumption area created within the entertainment district. (c) (I) A certified promotional association may operate a common consumption area within an entertainment district and authorize the attachment of a licensed premises to the common consumption area. (II) An association or licensed tavern, entertainment facility, lodging facility, hotel and restaurant, brew pub, distillery pub, retail gaming tavern, vintner's restaurant, beer and wine licensee, manufacturer or beer wholesaler that operates a sales room, or limited winery that wishes to create a promotional association may submit an application to the local licensing authority. To qualify for certification, the promotional association must: (A) Have a board of directors; (B) Have at least one director from each licensed premises attached to the common consumption area on the board of directors; and (C) Agree to submit annual reports by January 31 of each year to the local licensing authority showing a detailed map of the boundaries of the common consumption area, the common consumption area's hours of operation, a list of attached licensed premises, a list of the directors and officers of the promotional association, security arrangements within the common consumption area, and any violation of this article 3 committed by an attached licensed premises. (III) The local licensing authority may refuse to certify or may decertify a promotional association of a common consumption area if the promotional association: (A) Fails to submit the report required by subsection (11)(c)(II)(C) of this section by January 31 of each year; (B) Fails to establish that the licensed premises and common consumption area can be operated without violating this article 3 or creating a safety risk to the neighborhood; (C) Fails to have at least two licensed premises attached to the common consumption area; (D) Fails to obtain or maintain a properly endorsed general liability and liquor liability insurance policy that is reasonably acceptable to the local licensing authority and names the local licensing authority as an additional insured; (E) The use is not compatible with the reasonable requirements of the neighborhood or the desires of the adult inhabitants; or (F) Violates section 44-3-910. (d) A person shall not attach a premises licensed under this article 3 to a common consumption area unless authorized by the local licensing authority. Any noncontiguous location included in the licensed premises of a winery, limited winery, distillery, or brewery licensed pursuant to section 44-3-402 or 44-3-403 that falls outside the approved boundaries of an entertainment district or a common consumption area authorized pursuant to this subsection (11) shall not be included as part of a certified promotional association or entertainment district even though the licensed premises of that winery, limited winery, distillery, or brewery is within the entertainment district. (e) (I) A licensed tavern, entertainment facility, lodging facility, hotel and restaurant, brew pub, distillery pub, retail gaming tavern, vintner's restaurant, beer and wine licensee, manufacturer or beer wholesaler that operates a sales room, limited winery, or optional premises that wishes to attach to a common consumption area may submit an application to the local licensing authority. To qualify, the licensee must include a request for authority to attach to the common consumption area from the certified promotional association of the common consumption area unless the promotional association does not exist when the application is submitted. If the promotional association exists when the application is submitted, the applicant shall request the authority when a promotional association is certified and shall demonstrate to the local licensing authority that the authority has been obtained by the time the applicant's license issued under this article 3 is renewed. (II) The local licensing authority may deauthorize or refuse to authorize or reauthorize a licensee's attachment to a common consumption area if the licensed premises is not within or on the perimeter of the common consumption area and if the licensee: (A) Fails to obtain or retain authority to attach to the common consumption area from the certified promotional association; (B) Fails to establish that the licensed premises and common consumption area can be operated without violating this article 3 or creating a safety risk to the neighborhood; or (C) Violates section 44-3-910. (f) A local licensing authority may establish application procedures and a fee for certifying a promotional authority or authorizing attachment to a common consumption area. The authority shall establish the fee in an amount designed to reasonably offset the cost of implementing this subsection (11). Notwithstanding any other provision of this article 3, a local authority may set the hours during which a common consumption area and attached licensed premises may serve alcohol and the customers may consume alcohol. Before certifying a promotional association, the local licensing authority shall consider the reasonable requirements of the neighborhood, the desires of the adult inhabitants as evidenced by petitions, remonstrances, or otherwise, and all other reasonable restrictions that are or may be placed upon the neighborhood by the local licensing authority. (12) (a) Notwithstanding any other provision of this article 3, on and after July 1, 2016, the state and local licensing authorities shall not issue a new license under this article 3 authorizing the sale at retail of malt, vinous, or spirituous liquors in sealed containers for consumption off the licensed premises if the premises for which the retail license is sought is located: (I) Within one thousand five hundred feet of another licensed premises licensed to sell malt, vinous, or spirituous liquors at retail for off-premises consumption; (II) For a premises located in a municipality with a population of ten thousand or fewer, within three thousand feet of another licensed premises licensed to sell malt, vinous, or spirituous liquors at retail for off-premises consumption; or (III) For a premises located in a municipality with a population of ten thousand or fewer that is contiguous to the city and county of Denver, within one thousand five hundred feet of another licensed premises licensed to sell malt, vinous, or spirituous liquors at retail for off- premises consumption. (a.5) (I) Notwithstanding any other provision of subsection (12)(a) of this section, on and after March 1, 2023, the state and local licensing authorities shall not issue a new fermented malt beverage and wine retailer's license under article 4 of this title 44 authorizing the sale at retail of fermented malt beverages and wine in sealed containers for consumption off the licensed premises if the premises for which the retail license is sought is located within five hundred feet of a retail liquor store licensed under section 44-3-409. (II) This subsection (12)(a.5) does not apply to a person that owns or leases a proposed fermented malt beverage retailer licensed premises and, as of January 1, 2019, has applied for or received from the municipality, city and county, or county in which the premises are located: (A) A building permit for the structure to be used for the fermented malt beverage retailer licensed premises, which permit is currently active and will not expire before the completion of the liquor licensing process; or (B) A certificate of occupancy for the structure to be used for the fermented malt beverage retailer licensed premises. (b) For purposes of subsection (12)(a) of this section, a license under this article 3 authorizing the sale at retail of malt, vinous, or spirituous liquors in sealed containers for consumption off the licensed premises includes a license under this article 3 authorizing the sale of malt and vinous liquors in sealed containers not to be consumed at the place where the malt and vinous liquors are sold. (c) (I) For purposes of determining whether the distance requirements specified in subsections (12)(a) and (12)(a.5) of this section are satisfied, the distance shall be determined by a radius measurement that begins at the principal doorway of the premises for which the application is made and ends at the principal doorway of the other retail licensed premises. (II) This subsection (12) does not apply to the conversion of a license under section 44- 4-107 (1)(a)(II). (III) Notwithstanding any other provision of subsection (12)(a) of this section, the state and local licensing authorities shall not issue a new retail liquor store license under article 3 of this title 44 authorizing the sale at retail of malt, vinous, or spirituous liquors in sealed containers for consumption off the licensed premises if the premises for which the retail license is sought is located within five hundred feet of a fermented malt beverage and wine retailer licensed under section 44-4-107. (13) (a) A person licensed pursuant to section 44-3-409 may hold educational classes pursuant to this subsection (13) and may charge a fee for the educational classes it holds; except that the licensee shall not charge a fee by the drink. (b) A licensee authorized under this subsection (13) to hold educational classes shall not allow class participants to participate in any other tasting events on the licensed premises held on the same day and shall implement a means of tracking how many samples each class participant is provided, which may include the use of a wristband or other means of accurately tracking an individual class participant's consumption. (c) In order to teach an educational class pursuant to this subsection (13), a class instructor must have successfully completed the responsible alcohol beverage vendor training provided in section 44-3-1002. (d) Notwithstanding any law to the contrary, a wholesaler or manufacturer may provide alcohol beverages for an educational class held by a licensee pursuant to this subsection (13). Such alcohol beverages must be used only for the specific educational class for which the alcohol beverages were provided. A wholesaler or manufacturer that provides alcohol beverages for an educational class shall remove all unopened products that remain at the end of the class. Opened, unfinished alcohol beverages may be used by the licensee only at a future educational class and must be locked up off the sales floor. (e) The state licensing authority may promulgate rules establishing sample size limits and total volume limits for educational classes held pursuant to this subsection (13).
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