Q&A About Liquor Licensing in Colorado

How do I obtain a copy of the Colorado Liquor and Beer Code?

Copies may be in booklet form by contacting the State Forms Center at 303.370.2165.

What are the requirements to hold retail liquor?

Colorado liquor and beer retail licenses are issued by “dual” licensing authorities. Your local City or County Clerk can provide applications and answer questions concerning the application process. Your local licensing authority (City or County) must first approve all retail licenses before forwarding liquor and beer license applications to the State Liquor Enforcement Division. Licenses can take several months to acquire and therefore, you must communicate with your local licensing authority far in advance of your opening date. Failure to file applications far in advance of your opening date will most likely result in a delay.

Colorado liquor and beer licenses may be issued in the name of natural persons, corporations, partnerships, and limited liability companies. Applicants and other persons involved with partnerships, corporations, or limited liability companies, must be at least 21 years of age. Persons under 21 may be involved with an established trust as long as the trustee is at least 21 and the person under 21 cannot benefit from the trust until that person reaches the age of 21.
All corporations and limited liability companies must be registered with the Colorado Secretary of State’s Office and authorized to do business. Foreign corporations and foreign limited liability companies must also register with the Secretary of State and be authorized to do business in Colorado.

Applicants do not have to be a United States citizen or a Colorado resident to acquire a liquor or beer license and the existence of a criminal record does not preclude a person from licensure. However, applicants with criminal records must be able to provide evidence of rehabilitation or they may be
denied a license.

What are the posting requirements for Liquor Licenses or Liquor Permits?

Liquor and Beer Licensees must have currently valid State and Local liquor or beer licenses, sales tax and food service licenses posted conspicuously on the licensed premises so that the general public may see them. A wise Licensee will check their license expiration date to ensure that they do not
forget to file for license renewal.

A Federal Tax Stamp must also be obtained and conspicuously posted on the licensed premises. (See section 12-47-301(4)(a)).

Do I have to post a Minor Warning Sign?

You must have a sign, which warns underage persons that it is illegal to attempt to purchase alcohol beverages. These signs are available free of charge from the State Liquor Enforcement Division.

What are the meal/food requirements for the different types of liquor licenses?

Does a Licensee have to have books and invoice available?

A. Licensees are required to maintain records to fully show all business transactions and must make these records available for examination upon request. You may be asked to show invoices concerning alcohol beverage purchases.

Is it illegal to allow the consumption or possession of alcohol beverages to or for a person under the age of 21 years old?

It is unlawful for licensee to sell, serve, give or allow the consumption or possession of alcohol beverages to or for a person under the age of 21 year. On-premises and 3.2% Beer Licensee, with the exception of Tavern Licensees who do not regular provide full meals, may employ persons who are at least 18 years of age to participate in the sale of alcohol beverages. These persons may participate in the selling, serving or giving of alcohol beverages as long as they are actively supervised by a person who is at least 21 years old (18 for 3.2% Beer). Because of the many public safety issues created by these violations, the Division will always initiate an investigation into violations of this nature.

Do patrons have to produce identification, and what kinds of identification can I accept?

Colorado law does not prohibit underage persons (those persons under the age of 21 years) from entering or remaining in a licensed establishment. However, Colorado law does prohibit any licensed establishment from selling, serving, or giving alcohol beverages to an underage person. Licensees
should always check for acceptable proof of age if there is any doubt about the age of the patron. If an acceptable proof of age is not available from the questionable patron, no service or sale should be provided.

Only the following types of identification may be relied upon by Licensees as proof of age of a patron. Note that each identification listed must be valid (not expired), have a photograph and description of the bearer:

1. An operator’s, chauffeur’s or similar type driver’s license containing a picture, issued by any state, Canada, Mexico, or United States Territory
2. An Identification card containing a picture, issued by any state for the purpose of proof of age in accordance with C.R.S. 42-2-402
3. A Military Identification Card
4. A Passport
5. An Alien Registration Card
6. A valid employment authorization card containing a picture and date of birth issued by the U.S. Department of Justice, Immigration and Naturalization Service.

Those patrons attempting to purchase alcohol beverages who are unable to provide one of the forms of identification described above may be refused service of alcohol beverages. If you suspect that a fraudulent or altered identification has been given to you for proof of age, ask for a second identification or ask questions concerning the information on the face of the identification. If you still believe you have been given a fraudulent or altered identification, you may confiscate it and turn it over to a state or local law enforcement officer within 72 hours. (See Reg. 47-912 and 12-47-901(5)(a)).

What are the hours that alcohol beverages may be sold?

On-Premises Liquor Licensees: Licensees who sell alcohol beverages for consumption on the premises, i.e., taverns, restaurants, brew pubs, may sell alcohol beverages to be consumed on the premises, from 7:00 a.m., until 2:00 a.m., 365 days a year.
Off-Premises Liquor Licensees:Licensees who sell alcohol beverages in sealed containers, for consumption off the licensed premises, i.e., liquor stores, drug stores and brew pubs, may sell alcohol beverages in sealed containers from 8:00 a.m., until midnight every day except Christmas.

3.2% Beer Licensees: 3.2% beer may be sold from 5:00 a.m., until midnight, 365 days a year.
There are no state prohibitions concerning the sale or service of alcohol beverages on election days.

Is public consumption of alcohol beverages legal?

Colorado law prohibits public consumption of malt liquor (beer other than 3.2% beer), vinous liquor (wine) and spirituous liquors (bourbon, gin, vodka, etc.) in public, except in a business which is licensed with a Colorado liquor license. Public consumption of 3.2% beer is not prohibited by state law,
however, many cities and counties have local laws prohibiting public consumption of 3.2% beer.

Can I bring my own alcohol beverages into a place that has a liquor license?

It is also unlawful to bring alcohol beverages into any place that is licensed to sell or serve alcohol beverages, i.e., restaurants, sports stadiums. Similarly, it is unlawful to bring alcohol beverages into an unlicensed public business, i.e., restaurants, for consumption due to the prohibition on public
consumption.

Can I renovate or remodel my liquor licensed business?

Once you have received your Colorado liquor license, you may not cause structural changes to your licensed business without first reporting the changes to the local and state licensing authorities. Cosmetic changes, i.e., painting, carpeting, etc., generally do not require authorization. However,
the addition of a bar (or to lengthen a bar), or the relocation of entrances or exits, the addition of, (or deletion of) walls, patio areas, etc., require pre-approval from the local and state licensing authorities. Generally, any change that substantially alters the usage of the licensed premises from that originally
approved, requires pre-approval. The applications to change, alter or modify your licensed premises are usually available from your local City or County Clerk, or the Liquor Enforcement Division.

If I sell my business, does the buyer have to obtain its own liquor license to continue the operation of the business?

The new owner of the business must acquire its own liquor or beer license by filing applications with the local licensing authority. Should the new owner desire to operate, it must ask the local authority for a “temporary permit” which may be granted (discretionary) upon filing of the applications for a
permanent annual license. It is unlawful for you to allow anyone to “use” your license, and it is unlawful for them to use your license.

Corporations and limited liability company licensees who are purchased and remain in business as the licensee/owner of the business, may continue to operate and must only report the “internal changes” i.e., change of officers, directors, stockholders, members, etc., to the local licensing authority. This report must be filed within 30 days of the date of the internal change. Failure to meet the reporting deadlines may result in sanctions against your license.

How often do I have to renew my liquor or beer license?

Liquor and Beer licenses must be renewed every year. Liquor licenses, unlike many other licenses, are not issued on a calendar year basis. Instead they expire one year from the date of initial license issuance. Your license applications will be mailed to the business address listed on your application, (or mailing address, if designated) at least 90 days before your license expires. If you change the mailing address for your state tax information after your liquor license was issued, your liquor or beer license renewals will be mailed to that new address (we share a common computer system). It is your responsibility to ensure your license renewal is filed with your local licensing authority at least 45 days before the expiration date. Failure to file your renewal at least 45 days prior to its expiration may result in the license not being renewed.

If your license expires and you notice its expiration within 90 days from the date of actual expiration, you can pay an additional $500 late fee to your local authority and an additional $500 late fee to the state licensing authority, so that the license can be renewed. These fees are in addition to your license fees. If you do not notice that your license has expired within 90 days from the date of its expiration, you must apply for a totally new license. It is unlawful to continue to sell, serve, or distribute alcohol beverages without valid local and state liquor or beer licenses.

Where can I purchase my alcohol beverage inventory?

All Retail liquor and beer licensees may purchase their alcohol beverage inventory from a licensed Colorado Brew pub, Winery or Wholesale licensee. On-premises Licensees, licensed to sell alcohol beverages for consumption on the licensed premises, may purchase up to $500 per calendar year of alcohol beverage inventory from a retail liquor store. All purchases must be evidenced by a receipt or invoice which is to be maintained by the Licensee. (12-47-901(1)(e), 12-47-409, 12-47-411, 12-47-412, 12-47-414, 12-47-415, 12-47-416, 12-47-417, and 12-47-418, C.R.S.)

Can I cater or deliver alcohol beverages?

It is not unlawful to provide a bar tending service off a licensed premise for private events. It is unlawful to sell alcohol beverages (as a caterer, bartender or other person) without first being licensed to do so. Since liquor and beer licenses are issued to a specific person at a specific place, there exists no license for the “mobile” catering of alcohol beverages. Those liquor and beer licensees that have a Retail Liquor Store License, Drug store license, or a 3.2% Beer license-combination on/off premises license, may deliver alcohol beverages upon acquiring a delivery permit from the Liquor Enforcement Division. (See 12-47-901(1) (g) and Reg. 47-426

Colorado Liquor Code of Regulations