City Council Study Session Agenda and Packet 2012 09 11

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Carol Hanson, Deputy City Clerk City of Louisville April 30, 2012 Page 2 of 4 and at one other licensed sales room3 at no additional cost; and (2) serve and sell food, general merchandise, and nonalcohol beverages for consumption on the premises or to be taken home by the consumer. C.R.S. § 12- 47- 402(2), (3), and (6). o it is unlawful for a licensed manufacturer or "any person, partnership, association, organization, or corporation interested financially in or with a licensed manufacturer to be interested financially, directly or indirectly, in the business of any person licensed to sell at retail" pursuant to the Colorado Liquor Code. C.R.S. § 12-47 - 402(4)(a). o Neither the Liquor Code nor the regulations address whether a brewery with a manufacturer's license can sell alcohol for consumption on the premises. While C.R.S. § 12 -47 -402 authorizes manufacturers of wines and spirituous liquors to conduct tastings on their premises and in their sales rooms, it is silent with respect to manufacturers of malt liquors. One possible interpretation is that the absence of language regarding breweries in that section means that on -site consumption is prohibited in breweries with a manufacturer's license. On the other hand, nothing in the statute prohibits malt liquor manufacturers from selling liquor for consumption on the premises. Therefore, an alternative interpretation is that on -site consumption is authorized. 1 spoke to someone in the State's Liquor Enforcement Division, but he was not able to provide clear guidance on this matter. He first stated that a malt liquor manufacturer could conduct tastings but that it could not sell liquor for on -site consumption. However, he then stated that because nothing in the statutes and regulations appear to prohibit such action that it may be acceptable. Brew Pub License o A brew pub license must be approved by both the State and Local Licensing Authorities. See C.R.S. § 12- 47- 309(1)(f). a Brew pubs may manufacture not more than 1,860,000 gallons of malt liquor and fermented malt beverages on its licensed premises or licensed alternating proprietor licensed premises, combined, each calendar year. C.R.S. § 12- 47- 103(4), a Malt liquors and fermented malt beverages manufactured on the licensed premises or the alternating premises may be: (1) sold and consumed on the premises; (2) sold to the public in sealed containers for consumption off the premises; (3) sold at wholesale to retailers in an amount up to 300,000 gallons per calendar year; and (4) 3 Wineries and spirituous liquors manufacturers must submit copies of their sales room applications to the Local Licensing Authority, which may request that the State Licensing Authority deny the issuance of the sales room license if it has determined that issuance of the proposed license would be in conflict with the reasonable requirements of the neighborhood and the desires of the adult inhabitants. C.R.S. § 12- 47- 403(6)(c) and Liquor Regulation 47 -428, 7