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Colorado Passes Alcohol Takeout And Delivery Law

Colorado Alcohol DeliveryUPDATE: On June 8, 2021, the Colorado Legislature passed HB21-1027 which extends the authorization for on-premise Colorado Liquor Licenses to sell alcohol beverages to-go, for takeout and delivery until July 1, 2026.  The bill has not yet been signed by Governor Polis.  However, manufacturers who have a sales room may continue to deliver alcohol beverages only until January 2, 2022.  Current law limits. The bill also changes the amounts of alcohol beverages that may be sold for delivery or takeout:

  • From 750 milliliters (one bottle) to 1,500 milliliters (two bottles) of vinous liquors;
  • From 72 fluid ounces (6-pack) to 144 fluid ounces (12-pack) of malt liquors, fermented malt beverages, and hard cider; and
  • From 750 milliliters to one liter of spirituous liquors.

The bill also creates a communal outdoor dining area program. The program allows multiple licensees to attach to the area and serve alcohol beverages to the diners in the area. A licensee may attach to the area only if the licencee’s premises are within 1,000 feet of the area. The area and attachment must be approved by both the local and state licensing agencies, who may charge a fee for the approval. The following Colorado liquor licensees may attach to a an area:

  • Tavern;
  • Hotel and restaurant;
  • Brew pub;
  • Distillery pub;
  • Vintner’s restaurant;
  • Beer and wine licensee;
  • Manufacturer that operates a sales room;
  • Beer wholesaler that operates a sales room;
  • Limited winery;
  • Lodging and entertainment facility;
  • Optional premises; or
  • Fermented malt beverage retailer licensed for consumption on the premises.

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On July 10, 2020, Colorado governor Jared Polis signed SB 20-213, making alcohol takeout and delivery the law of the land … until July 1, 2021 that is.  The law permits on-premise retailers such as restaurants and bars sell alcohol via take-out and delivery.  This practice has been in place during the COVID-19 crisis and this law sets additional rules and clarifications.

You can read the entire Colorado  Alcohol Takeout And Delivery Law HERE.

Key Points of Colorado’s Alcohol Take-out and Delivery law:

  • APPLIES TO  BUSINESSES LICENSED TO SELL ALCOHOL BEVERAGES FOR CONSUMPTION ON THE LICENSED PREMISES TO SELL ALCOHOL BEVERAGES FOR CONSUMPTION OFF THE LICENSED PREMISES, I.E., HOTEL RESTAURANT LICENSES, TAVERN LICENSES, BREW PUBS, DISTILLERY PUBS, BEER AND WINE LICENSES, SALES ROOMS, TAP ROOMS, ETC.;
  • A LICENSEE MAY SELL AND DELIVER AN ALCOHOL BEVERAGE TO
    A CUSTOMER FOR CONSUMPTION OFF THE LICENSED PREMISES;
  • IF AN ALCOHOL BEVERAGE IS PART OF A TAKEOUT ORDER FOR
    CONSUMPTION OFF THE LICENSED PREMISES:

    • A CUSTOMER MAY REMOVE THE ALCOHOL BEVERAGE FROM THE
      LICENSED PREMISES IF THE ALCOHOL BEVERAGE IS IN A SEALED CONTAINER
      THAT COMPLIES WITH THE RULES OF THE STATE LICENSING AUTHORITY;
    • A LICENSEE MAY ALLOW A CUSTOMER TO REMOVE THE
      ALCOHOL BEVERAGE FROM THE LICENSED PREMISES;
    • A LICENSEE MAY SELL OR DELIVER ALCOHOL BEVERAGES UNDER THIS SECTION
      BY THE DRINK;
    • MUST OBTAIN / PAY FEE FOR STATE PERMIT;
    • LOCAL LICENSING AUTHORITY MAY CREATE / REQUIRE PERMIT;
    • DELIVERY DRIVERS MUST PASS SELLER / SERVER TRAINING
    • LAW EXPIRES JULY 1, 2026** See above.

To-Go and Delivery Orders are limited to:

  • 1,500 milliliters (two bottles) of vinous liquors;
  • 144 fluid ounces (12-pack) of malt liquors, fermented malt beverages, and hard cider; and
  • One liter of spirituous liquors.

Retail Licensees Cannot:

  • Derive more than 50% of its gross annual revenues from sales of food and alcohol beverages from the sale of alcohol beverages through takeout and delivery UNLESS Colorado is under a state of emergency.

The wording of the 50% rule above is slightly confusing, but I interpret it to mean that like Colorado Retail Liquor Stores, a business can delivery up to 50% of its annual alcohol sales revenue.

If you have any questions, please contact us.

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