Colorado Code § 44-3-407

Wholesaler's license - discrimination in wholesale sales prohibited - rules
Open in Lexace · Ask the AI about this section
(1) (a) A wholesaler's liquor license shall be issued to persons selling vinous or spirituous
liquors at wholesale for the following purposes only:
(I) To maintain and operate one or more warehouses in this state to handle vinous or
spirituous liquors;
(II) To take orders for vinous and spirituous liquors at any place and deliver vinous and
spirituous liquors on orders previously taken to any place if the licensee has procured a
wholesaler's liquor license and the place where orders are taken and delivered is a place regularly
licensed pursuant to the provisions of this article 3;
(III) To package vinous and spirituous liquors that a licensed importer has legally
transported into Colorado or that a licensed manufacturer has legally produced in Colorado.
(b) (I) A wholesaler's beer license shall be issued to persons that sell malt liquors at
wholesale to retailers licensed under this article 3 or article 4 of this title 44 and that designate to
the state licensing authority on their application the territory within which the licensee may sell
the designated products of any brewer as agreed upon by the licensee and the brewer of the
products for the following purposes only:
(A) To maintain and operate warehouses and one sales room in this state to handle malt
liquors to be denominated a wholesale beer store;
(B) To take orders for malt liquors at any place within the territory designated on the
license application and deliver malt liquors on orders previously taken to any place within the
designated geographical territory, if the licensee has procured a wholesaler's beer license and the
place where orders are taken and delivered is a place regularly licensed to sell at retail for
consumption on or off the licensed premises pursuant to this article 3 or article 4 of this title 44.
(II) (A) Prior to operating a sales room as authorized by this subsection (1)(b), a
wholesaler's beer licensee that is licensed pursuant to this section shall, at the time of application
to the state licensing authority, send a copy of the application or supplemental application for a
sales room to the local licensing authority in the jurisdiction in which the sales room is proposed.
The local licensing authority may submit a response to the application, including its
determination specified in subsection (1)(b)(II)(B) of this section, to the state licensing authority
but must submit its response within forty-five days after the wholesaler's beer licensee submits
its sales room application to the state licensing authority. If the local licensing authority does not
submit a response to the state licensing authority within forty-five days after submission of the
sales room application, the state licensing authority shall deem that the local licensing authority
has determined that the proposed sales room will not impact traffic, noise, or other neighborhood
concerns in a manner that is inconsistent with local regulations or ordinances or that the
applicant will sufficiently mitigate any impacts identified by the local licensing authority.
(B) The state licensing authority must consider the response from the local licensing
authority, if any, and may deny the proposed sales room application if the local licensing
authority determines that approval of the proposed sales room will impact traffic, noise, or other
neighborhood concerns in a manner that is inconsistent with local regulations or ordinances,
which may be determined by the local licensing authority without requiring a public hearing, or
that the applicant cannot sufficiently mitigate any potential impacts identified by the local
licensing authority.
(C) A wholesaler's beer licensee that is operating a sales room as of August 5, 2015, or
that is granted approval pursuant to this subsection (1)(b)(II) to operate a sales room on or after
August 5, 2015, shall notify the state licensing authority of its sales room. The state licensing
authority shall maintain a list of all wholesaler's beer licensee sales rooms in the state and make
the list available on its website.
(D) The local licensing authority may request that the state licensing authority take
action in accordance with section 44-3-601 against a wholesaler's beer licensee approved to
operate a sales room if the local licensing authority demonstrates to the state licensing authority
that the licensee has engaged in an unlawful act as set forth in part 9 of this article 3 or shows
good cause as specified in section 44-3-103 (19)(a), (19)(b), or (19)(d).
(E) This subsection (1)(b)(II) does not apply if the wholesaler's beer licensee does not
sell and serve malt liquors for consumption on the licensed premises.
(c) Each license shall be separate and distinct, but any person may secure both licenses
upon the payment in advance of both fees provided in this article 3.
(d) All malt, vinous, and spirituous liquors purchased by any licensee under this section,
and all malt, vinous, and spirituous liquors shipped into this state by or to any such licensee,
shall be placed in the physical possession of the licensee at the licensee's warehouse facilities
prior to delivery to persons holding licenses pursuant to this article 3 or article 4 of this title 44.
(e) (I) A brewer or importer licensed pursuant to this article 3 shall not sell malt liquors
to a wholesaler without having a written contract with the wholesaler that designates the specific
products of such brewer or importer to be sold by the wholesaler and that establishes the territory
within which the wholesaler may sell the designated products.
(II) A brewer or importer shall not contract with more than one wholesaler to sell the
products of such brewer or importer within the same territory.
(f) Notwithstanding any provision of this article 3 to the contrary, a wholesaler licensed
pursuant to subsection (1)(a) of this section may establish a program for its employees to
purchase directly from the wholesaler vinous or spirituous liquors sold by that wholesaler.
(1.5) (a) A licensed wholesaler may hold trade show events to allow retailers to sample
products on the wholesaler's licensed premises in an area designated for trade show events. A
wholesaler shall not open trade show events to the general public.
(b) (I) Except as provided in subsection (1.5)(b)(II) of this section, a wholesaler may
hold a trade show event on the wholesaler's licensed premises.
(II) A wholesaler shall not hold a trade show event in:
(A) The docking, delivery, or warehouse storage areas of the licensed premises, unless
the warehouse is a designated area for a trade show event or is isolated and excluded from
ongoing business activity; or
(B) A sales room during any time when the sales room is open to the general public.
(c) The state licensing authority may promulgate rules implementing this subsection
(1.5).
(2) It is unlawful for any licensed wholesaler or any person, partnership, association,
organization, or corporation interested financially in or with a licensed wholesaler to be
interested financially, directly or indirectly, in the business of any person licensed to sell at retail
pursuant to this article 3 or article 4 of this title 44.
(3) It is unlawful for a licensed wholesaler of vinous or spirituous liquors or any person,
partnership, association, organization, or corporation interested financially in or with such a
wholesaler to be interested financially in the business of any licensed manufacturer of vinous or
spirituous liquors; except that any such financial interest that occurred on or before July 1, 1969,
is lawful.
(4) (a) A wholesaler shall make available to all retailers licensed pursuant to this article
3 and article 4 of this title 44 in this state without discrimination all malt, vinous, and spirituous
liquors offered by the wholesaler for sale at wholesale. A wholesaler shall use its best efforts to
make available to licensed retailers each brand of alcohol beverage that the wholesaler has been
authorized to distribute.
(b) Nothing in this section prohibits a wholesaler from establishing reasonable allocation
procedures when the anticipated demand for a product is greater than the supply of the product.

‹ Prev All Colorado sections Next ›


Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.