(1) (a) (I) On or after July 1, 2021, a retailer doing business in this state shall not sell or offer for sale cigarettes, tobacco products, or nicotine products in this state without first obtaining a state license as a retailer from the division.
(II) A state license is valid for one year and may be renewed by application in the form and manner prescribed by the division and by payment of a fee set by rule pursuant to section 44-7-104 (5)(a)(I).
(b) An owner of multiple retail locations in the state at which cigarettes, tobacco products, or nicotine products are sold or offered for sale must apply for a separate state license for each retail location. If the executive director wishes to authorize an owner of multiple retail locations in the state to apply simultaneously for state licenses for each retail location owned by submitting a joint application, the executive director may establish by rule:
(I) The process by which the owner may apply for state licenses for multiple retail locations in a joint application; and
(II) A joint application fee.
(2) (a) Except as provided in subsection (4)(b) of this section, the division shall approve or deny a state license application within sixty days after receiving the application. The division may deny an application only for good cause. If the division denies an application, the division shall inform the applicant in writing of the reasons for the denial, and the applicant, within fourteen days after receiving the written denial, may request that a hearing be held on the matter in accordance with section 44-7-105.
(b) Repealed.
(3) (a) Upon obtaining a state license from the division for a retail location, a retailer shall conspicuously display the state license at the retail location.
(b) (I) State licenses are not transferable. If a licensee ceases to be a retailer at a retail location by reason of discontinuation, sale, or transfer of the licensee's business, the licensee shall notify the division in writing on or before the date on which the discontinuance, sale, or transfer takes effect.
(II) If a person to whom a retailer's retail location is sold applies for a state license for the retail location within thirty days after taking ownership of the retail location, which date of taking ownership must be demonstrated in the application in a manner determined by the division, the person may continue to sell or offer to sell cigarettes, tobacco products, or nicotine products without a state license during the pendency of the division's review of the person's state license application.
(4) (a) If a local government imposes licensing requirements on retailers, the licensing requirements must be as stringent as, and may be more stringent than, the statewide licensing requirements set forth in this article 7.
(b) If a retailer applies for a state license from the division pursuant to this section for a retail location that is within the jurisdiction of a local government that imposes licensing requirements on retailers, the division shall:
(I) Issue a state license to the retailer upon the retailer demonstrating to the division that the retailer has obtained a local license and paying the state license fee; and
(II) (A) Except as provided in subsection (4)(b)(II)(B) of this section, set the state license renewal date on the same date as the local license renewal date. The division shall prorate the initial state license fee if setting the state license renewal date in line with the local license renewal date requires renewal within less than twelve months after the initial state license was issued.
(B) If a local government first imposes a local licensing requirement on cigarettes, tobacco products, or nicotine products on or after July 1, 2021, the local government shall set the local license renewal date for a retailer on the same date as the state license renewal date.
(c) The division shall collaborate with any local authority regarding the performance of compliance checks and complaints received in accordance with rules promulgated by the executive director pursuant to section 44-7-104 (5)(a)(III).
(5) (a) Ninety days before the expiration date of an existing state license, the division shall notify the licensee of the expiration date of the state license by electronic mail or by first-class mail, as determined by the executive director, at the mailing address that the division has on file for the licensee. The division shall establish a process for a licensee to confirm receipt of a notice sent pursuant to this subsection (5)(a). The division shall describe the confirmation process in the notice itself and on the division's website.
(b) If the state license concerns a retail location that is located within the jurisdiction of a local authority that imposes licensing requirements on retailers, the division shall renew the licensee's state license upon the licensee demonstrating to the division that the licensee is operating under a valid local license and paying the renewal state license fee.
(c) If the retailer's state license concerns a retail location that is located within the jurisdiction of a local authority that imposes licensing requirements on retailers and the local authority:
(I) Suspends the retailer's local license, the division shall, pursuant to the notice and hearing process set forth in section 44-7-105 (1)(b), suspend the retailer's state license until the retailer can demonstrate to the division's satisfaction that the local license has been reinstated; or
(II) Revokes the retailer's local license, the division shall, pursuant to the notice and hearing process set forth in section 44-7-105 (1)(b), revoke the retailer's state license.
(6) The division shall transfer any fees collected in accordance with this article 7 to the state treasurer, who shall credit the fees to the liquor enforcement division and state licensing authority cash fund created in section 44-6-101.
Source: L. 2020: Entire section added, (HB 20-1001), ch. 302, p. 1509, � 9, effective July 14.
Editor's note: Subsection (2)(b)(II) provided for the repeal of subsection (2)(b), effective July 1, 2022. (See L. 2020, p. 1509.)
44-7-104.7. Restrictions on sales - minimum distance requirement - advertising restriction - online sales prohibited - exemptions - rules. (1) (a) Unless a local authority has approved an application for a new retail location pursuant to an ordinance or resolution adopted pursuant to subsection (1)(d) of this section, the division shall not approve a state license application for the new retail location if the new retail location is located within five hundred feet of a school. The distance between the new retail location and the school is measured from the nearest property line of land used for school purposes to the nearest portion of the building where cigarettes, tobacco products, or nicotine products will be sold, using a route of direct pedestrian access.
(b) This subsection (1) does not apply to retail locations at which cigarettes, tobacco products, or nicotine products were sold before July 14, 2020.
(c) If a retail location that was in existence as of July 14, 2020, is transferred to a new owner after July 14, 2020, the new owner need not comply with this subsection (1).
(d) A local authority may by ordinance or resolution:
(I) Eliminate one or more types of schools from the distance restriction set forth in subsection (1)(a) of this section; or
(II) Adopt shorter distance restrictions.
(2) A retailer shall not advertise an electronic smoking device product in a manner that is visible from outside the retail location at which the product is offered for sale.
(3) (a) Except as provided in subsection (3)(b) or (3)(c) of this section, a person shall not ship or deliver cigarettes, tobacco products, or nicotine products directly to a consumer in this state.
(b) (I) A retailer licensed to sell cigarettes, tobacco products, or nicotine products pursuant to this article 7 that complies with this subsection (3)(b) and rules promulgated pursuant to this subsection (3)(b) may deliver cigarettes, tobacco products, or nicotine products to a person twenty-one years of age or older if:
(A) The person receiving the delivery of cigarettes, tobacco products, or nicotine products is located at a place that is not licensed pursuant to this article 7;
(B) The delivery is made by an owner or employee of the licensed retailer who is at least twenty-one years of age; and
(C) The person making the delivery verifies that the person receiving the delivery is twenty-one years of age or older by requiring the person receiving the delivery to present a valid government-issued photographic identification. The licensee or employee shall make a determination from the information presented whether the person receiving the delivery is twenty-one years of age or older.
(II) The executive director shall promulgate rules as necessary for the proper delivery of cigarettes, tobacco products, or nicotine products, and the division is authorized to issue a permit to any retailer that is licensed under this article 7 and delivers cigarettes, tobacco products, or nicotine products pursuant to this subsection (3)(b). A permit issued under this subsection (3)(b) is subject to the same suspension and revocation provisions as are set forth in section 44-7-105 (1)(b).
(c) The prohibition set forth in subsection (3)(a) of this section does not apply to the direct shipment or delivery of cigars and pipe tobacco to a consumer who is twenty-one years of age or older.
Source: L. 2020: Entire section added, (HB 20-1001), ch. 302, p. 1511, � 10, effective July 14.
44-7-105. Enforcement - fines - suspension and revocation - injunctive relief - hearings - appeals. (1) (a) (I) Subject to the fine limitations contained in section 44-7-106, the division, on its own motion or on a complaint from another governmental agency responsible for the enforcement of laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors, may penalize retailers for violations of this article 7.
(II) The division, in the name of the people of the state of Colorado and through the attorney general of the state of Colorado, may apply for an injunction in any court of competent jurisdiction to enjoin any person from committing an act prohibited by this article 7. If the division establishes that the defendant has been or is committing an act prohibited by this article 7, the court shall enter a decree enjoining the defendant from further committing the act. An injunctive proceeding may be brought pursuant to this article 7 in addition to, and not in lieu of, penalties and other remedies provided in this article 7 and the rules promulgated pursuant to this article 7 or otherwise provided by law.
(b) In addition to any other sanctions prescribed by this article 7 or rules promulgated pursuant to this article 7, the division may, after investigation and a public hearing at which a retailer must be afforded an opportunity to be heard, fine a retailer or, if the retailer holds a state license, suspend or revoke the retailer's state license for a violation of this article 7 or any rule promulgated pursuant to this article 7 committed by the retailer or by any agent or employee of the retailer.
(2) (a) A retailer accused of violating this article 7 or any rule promulgated pursuant to this article 7 is entitled to written notice of the time and place of the hearing personally delivered to the retailer at the actual retail location or mailed to the retailer at the last-known address as shown by the records of the division. The retailer is also entitled to be represented by counsel, to present evidence, and to cross-examine witnesses.
(b) A retailer that does not claim an affirmative defense pursuant to section 44-7-106 (2) may waive its right to a hearing and pay the appropriate fine.
(3) A hearing pursuant to this section shall be conducted at a location designated by the division before a hearing officer. The hearing officer may administer oaths and issue subpoenas to require the presence of persons and the production of documents relating to any alleged violation of this article 7 or any rule promulgated pursuant to this article 7.
(4) If the hearing officer finds, by a preponderance of the evidence, that the retailer violated this article 7 or any rule promulgated pursuant to this article 7, the hearing officer may issue a written order to suspend or revoke the retailer's state license or to levy a fine against the retailer in accordance with section 44-7-106.
(5) The decision of the hearing officer is a final agency action. Any appeal of the decision of the hearing officer shall be filed with a district court of competent jurisdiction.
(6) Any unpaid fine levied pursuant to this section, together with reasonable attorney fees, may be collected in a civil action filed by the attorney general.
(7) The division shall forward any fines collected for violations of this article 7 or any rule promulgated pursuant to this article 7 to the state treasurer, who shall credit them to the cigarette, tobacco product, and nicotine product use by minors prevention fund created in section 44-7-107.
(8) Nothing in this section or section 44-7-106 prohibits a local government from imposing sanctions on a retailer for a violation of a local ordinance or resolution.
Source: L. 2018: Entire article added with relocations, (SB 18-036), ch. 34, p. 375, � 2, effective October 1. L. 2020: Entire section amended, (HB 20-1001), ch. 302, p. 1513, � 11, effective July 14.
Editor's note: This section is similar to former � 24-35-505 as it existed prior to 2018.