DEPARTMENT OF REVENUE
Division of Liquor Enforcement
LIQUOR CODE
1 CCR 203-2
Regulation 47-432. Colorado Manufacturers– Alternating Proprietor Licensed Premises.
A.  Definitions
1.  “Alternating Proprietor Licensed Premises” shall have the meaning set forth in 12-47-103(2.5), C.R.S.  For purposes of this regulation, alternating proprietor licensed premises shall also mean that portion of the host manufacturer’s licensed premises that is shared by the host manufacturer and alternating proprietors, for the manufacture of malt or vinous liquor, which is readily identified by use of placards showing the license number of the manufacturer using that area.  Such shared premises may include grain storage areas, crush pads, processing tanks, bottling lines, barrel storage, and casking areas.
2.  “Alternating Proprietor” or “tenant manufacturer” shall mean a manufacturer licensed pursuant to 12-46-104(1)(A), 12-47-402, 12-47-403, or 12-47-415, C.R.S. who, by way of written agreement, takes possession of a host manufacturer’s licensed premises for use as an alternating proprietor licensed premises as defined in 12-47-103(2.5), C.R.S. and this regulation. 
3.  “Alternating Proprietor Agreement” shall mean a written agreement between a host manufacturer and an alternating proprietor that, at minimum, conveys possession of specific alternating proprietor licensed premises within a host manufacturer’s licensed premises to specific alternating proprietors, establishes the general time frame for possession of alternating proprietor licensed premises, and the manner in which each alternating proprietor will maintain control over its manufacturing operations as an independent producer.  Such agreement must be approved by the Liquor Enforcement Division, and any changes, modifications, or termination of such agreement must also be reported to the division within the time frame specified within paragraph C of this regulation.
4.  “Host manufacturer” shall mean a manufacturer licensed pursuant to 12-46-104(1)(A), 12-47-402, 12-47-403, or 12-47-415, C.R.S.  who, by way of written agreement, makes available a portion of its licensed premises to other manufacturers licensed pursuant to those sections, for use as an alternating proprietor licensed premises as defined in 12-47-103(2.5), C.R.S. and this regulation. 
5.  “Dedicated Premises” shall mean that portion of a manufacturer’s licensed premises that is not made available to other manufacturers for use as an alternating proprietor licensed premises, and shall always include the host manufacturer’s retail sales area, and/or any consumer tasting area.
B.  Requirements of Alternating Proprietor Licensed Premises in Colorado Wineries, Breweries, and Brewpubs
1.  Only manufacturers licensed pursuant to 12-46-104(1)(A), 12-47-402, 12-47-403, or 12-47-415, C.R.S. for the manufacture of malt or vinous liquor are eligible to engage in alternation of licensed premises, as described in this regulation, either as a host manufacturer or tenant manufacturer (alternating proprietor).
2.  A host manufacturer that elects to alternate its licensed premises may allow more than one tenant manufacturer to take possession of alternating proprietor licensed premises, pursuant to the requirements of this regulation, as long as there is no more than one tenant manufacturer per alternating proprietor licensed premises at any given time.
3.  All manufacturers licensed pursuant to 12-46-104(1)(A), 12-47-402, 12-47-403, or 12-47-415, C.R.S. must maintain possession of their dedicated premises at all times pursuant to 12-47-301(3)(a), C.R.S.  A host manufacturer that elects to alternate its licensed premises must maintain dedicated premises that are separate from tenant manufacturer premises.  Nothing herein shall prohibit any host or tenant manufacturer from temporarily transporting its manufactured product over dedicated premises or alternating proprietor licensed premises. 
4.  At all times specified in the alternating proprietor agreement, a tenant manufacturer must maintain possession, title, and control over raw materials and manufacturing operations, occurring on its assigned alternating proprietor licensed premises.  Nothing in this regulation authorizes joint venture operations, and the operations of each manufacturer must be separate and distinct.  However, nothing herein shall prohibit a host or a tenant manufacturer from utilizing the services of another manufacturer’s staff or employees, as long as such an arrangement is provided for in the alternating proprietor agreement.
5.  Alternating proprietor licensed premises within host manufacturing premises must be separated in a manner that adequately distinguishes each alternating proprietor licensed premises area by use of placards, partitions, or other physical means.
6.  Nothing in this regulation shall authorize a host manufacturer that is licensed solely for the production of vinous liquor, pursuant to 12-47-402 or 12-47-403, to allow any tenant manufacturer to engage in the manufacture of anything other than vinous liquor.
7.   Nothing in this regulation shall authorize a host manufacturer that is licensed solely for the production of malt liquor, pursuant to 12-47-402 or 12-47-415, to allow any tenant manufacturer to engage in the manufacture of anything other than malt liquor.
8. The authorization to alternate any licensed premises may be suspended or denied by the state licensing authority due to violations of the host or tenant manufacturer.

C.  Application for Alternating Proprietor Licensed Premises
1.  When a host manufacturer elects to alternate its licensed premises by designating a portion of its licensed premises as alternating proprietor licensed premises, it shall file notification with the Liquor Enforcement Division, within ten (10) days after alternation has commenced.
2.  Notification shall be filed on forms prepared by the Liquor Enforcement Division, and shall include all applicable fees, an alternating proprietor agreement, color-coded diagrams delineating those sections of the licensed premises that are to be operated as alternating proprietor licensed premises and those sections that are to remain designated premises, and the manner in which alcohol beverage stock ownership will be identified and segregated.
D.  Record Keeping and Excise Tax Reporting Requirements
1.  Both the host and tenant manufacturer shall maintain a record of the movement or transfer of raw materials when introduced to the alternating proprietor licensed premises, and when moved to or from fermentation.
2. Any transfer of malt or vinous liquor to or from the alternating proprietor licensed premises shall be recorded in the business records of each manufacturer.
3.  All manufacturers engaged in the activities described herein must maintain control over their separate business records at all times.  Whether such records are maintained on the alternating proprietor licensed premises or the dedicated premises, tenant manufacturers must provide access to all records when requested by any enforcement officer, without authorization of the host or other tenant manufacturers.
4.  On or before the 20th day of each month, on forms prescribed by the department, each tenant manufacturer shall file a report of the preceding month’s alternating proprietor licensed premises operations. Such report shall be filed with the Monthly Report of Excise Tax, as required by 12-47-503, C.R.S. and related regulations.