77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

                            Enrolled

                         House Bill 3435

Sponsored by Representative GOMBERG, Senator STEINER HAYWARD;
  Representatives BAILEY, BARTON, BUCKLEY, DEMBROW, GALLEGOS,
  GORSEK, GREENLICK, HARKER, HOYLE, KENY-GUYER, LIVELY, MCKEOWN,
  READ, UNGER, WILLIAMSON, WITT

                     CHAPTER ................

                             AN ACT

Relating to distillery licensees; amending ORS 471.230.

Be It Enacted by the People of the State of Oregon:

  SECTION 1. ORS 471.230, as amended by section 1, chapter 20,
Oregon Laws 2012, is amended to read:
  471.230. (1) A distillery license allows the licensee to
import, manufacture, distill, rectify, blend, denature and store
spirits of an alcoholic content greater than 17 percent alcohol
by weight, to sell the spirits to the Oregon Liquor Control
Commission and to transport the spirits out of this state for
sale outside this state. Distillery licensees are permitted to
purchase from and through the commission alcoholic beverages for
blending and manufacturing purposes upon such terms and
conditions as the commission may provide. A distillery licensee
may not sell any alcoholic beverage within this state except to
the commission or as provided in this section. However, any
agricultural producer or association of agricultural producers or
the legal agents of an agricultural producer or association of
agricultural producers that manufactures and converts
agricultural surpluses, by-products and wastes into denatured
ethyl and industrial alcohol for use in the arts and industry are
not required to obtain a license from the commission.
  (2) A distillery licensee may:
  (a) Permit tastings of the distilled liquor manufactured by the
distillery licensee. The tastings may be conducted on the
licensed premises of the distillery  { - , on one - }  { +  and
at no more than five + } other premises owned or leased by the
licensee  { - , or both - } .  The licensee must purchase the
distilled liquor from the commission.
  (b) Obtain a special events distillery license.
  (c) Apply for appointment by the commission as a distillery
retail outlet agent for purposes of retailing only distilled
liquor that the licensee manufactured in Oregon at locations
where tastings are permitted under paragraph (a) of this
subsection or subsection (4)(a) of this section.
  (3) Notwithstanding ORS 471.392 to 471.400, a distillery
licensee may also hold a full on-premises sales license for a
location at the licensed premises of the distillery and a full
on-premises sales license for one other location. All distilled

Enrolled House Bill 3435 (HB 3435-A)                       Page 1

spirits sold under the full on-premises sales license must be
purchased from the commission.
  (4)(a) A distillery licensee that holds a special events
distillery license may conduct an event on a premises at a
designated location other than the location set forth in the
distillery license for a period not exceeding five days. A
distillery licensee conducting an event may:
  (A) Permit tastings of distilled liquor manufactured by the
distillery.
  (B) Permit sales by the drink of distilled liquor manufactured
by the distillery.
  (C) If the distillery licensee has been appointed as a
distillery retail outlet agent under subsection (2)(c) of this
section, sell factory sealed containers of distilled liquor
manufactured by the distillery for consumption off the licensed
premises of the event.
  (b) A distillery licensee that holds a special events
distillery license:
  (A) Must purchase distilled liquor that the licensee uses for
conducting tastings at the event from the commission at the price
set by the commission for distilled liquor removed from bond for
tastings.
  (B) Must purchase distilled liquor that the licensee uses for
sales by the drink at the event at the retail price set by the
commission for the month in which the distilled liquor is sold by
the drink.
  (C) Must purchase distilled liquor that the licensee sells in
factory sealed containers at the event at the retail price set by
the commission for the month in which the licensee makes the
purchase.
  (D) Must sell distilled liquor described in subparagraph (C) of
this paragraph at the retail price set by the commission for the
month in which the licensee makes the sale.
                         ----------

Passed by House April 17, 2013

    .............................................................
                             Ramona J. Line, Chief Clerk of House

    .............................................................
                                     Tina Kotek, Speaker of House

Passed by Senate May 21, 2013

    .............................................................
                              Peter Courtney, President of Senate

Enrolled House Bill 3435 (HB 3435-A)                       Page 2

Received by Governor:

......M.,............., 2013

Approved:

......M.,............., 2013

    .............................................................
                                         John Kitzhaber, Governor

Filed in Office of Secretary of State:

......M.,............., 2013

    .............................................................
                                   Kate Brown, Secretary of State

Enrolled House Bill 3435 (HB 3435-A)                       Page 3