Bill Text: OR SB296 | 2013 | Regular Session | Introduced
Bill Title: Relating to wine traveling in commerce for use by off-premises sales licensees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB296 Detail]
Download: Oregon-2013-SB296-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1608
Senate Bill 296
Sponsored by Senator JOHNSON (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Authorizes holder of off-premises sales license, under certain
conditions, to store wine at licensed premises for transport to
other licensed premises for sale at retail. Authorizes sale of
wine transported to receiving premises on behalf of transporting
holder.
Creates central warehouse license. Authorizes central warehouse
licensee, under certain circumstances, to store wine at central
warehouse for transport to premises in which licensee holds
qualifying interest. Authorizes member of cooperative that is
central warehouse licensee, under certain circumstances, to store
wine at central warehouse for transport to premises in which
member holds qualifying interest.
Makes central warehouse licensee responsible, under certain
circumstances, for payment of taxes on wine received from winery
licensee or manufacturer holding wine self-distribution permit.
Allows central warehouse operated by cooperative to take title to
wine and transfer title to members of cooperative under certain
conditions.
A BILL FOR AN ACT
Relating to wine traveling in commerce for use by off-premises
sales licensees; creating new provisions; and amending ORS
471.186, 471.274, 471.311 and 473.065.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 5 of this 2013 Act are added to
and made a part of ORS chapter 471. + }
SECTION 2. { + (1) The holder of an off-premises sales license
may store wine at the licensed premises and cause the wine to be
transported to another premises that is licensed for off-premises
sales if the holder:
(a) Takes title to the wine no later than when the wine is
delivered to the licensed premises at which the holder will store
the wine before transportation;
(b) Retains title to the wine until the wine is sold at retail;
(c) Owns, leases or subleases the premises receiving wine
transported from the licensed premises of the holder; and
(d) Ensures that wine transported from the licensed premises of
the holder to another premises licensed for off-premises sales is
transported to the receiving premises:
(A) On a vehicle owned or operated by the holder;
(B) On a vehicle owned by a licensed wholesaler; or
(C) On a common carrier.
(2) Notwithstanding ORS 471.305, if the holder of an
off-premises sales license causes wine to be transported under
this section to another premises that is licensed for
off-premises sales, the operator of the receiving premises may
sell the wine on behalf of the holder at retail at the receiving
premises. + }
SECTION 3. { + (1) A central warehouse license allows the
licensee to:
(a) Subject to subsection (4) of this section, receive wine
directly from a licensed wholesaler or winery licensee or from a
manufacturer of wine that holds a wine self-distribution permit
issued under ORS 471.274;
(b) Hold wine described in this subsection in storage; and
(c) Release the wine for transport to a licensed premises
described in section 4 (3) or 5 (3) of this 2013 Act.
(2) A central warehouse licensee may receive wine only if the
wine is transported to the central warehouse:
(a) On a vehicle owned or operated by the central warehouse
licensee;
(b) On a vehicle owned or operated by the member having or
taking title to the wine if the central warehouse is licensed
under section 5 of this 2013 Act;
(c) On a vehicle owned by the licensed wholesaler;
(d) On a vehicle owned by the winery licensee;
(e) On a vehicle owned by the manufacturer of wine holding the
wine self-distribution permit; or
(f) On a common carrier.
(3) Holding a central warehouse license does not qualify the
central warehouse licensee as a manufacturer or wholesaler for
purposes of ORS 471.392 to 471.400.
(4) A central warehouse licensee may receive wine from a
wholesaler only if the wholesaler has paid the taxes on the wine.
A central warehouse licensee that receives wine from a winery
licensee or from a manufacturer of wine that holds a wine
self-distribution permit must pay the taxes imposed under ORS
chapter 473 and comply with reporting requirements imposed by ORS
chapter 473 unless:
(a) The winery licensee or the manufacturer of wine that holds
a wine self-distribution permit has paid the taxes and complied
with the reporting requirements;
(b) The central warehouse is licensed under section 5 of this
2013 Act and a member of the cooperative operating the warehouse
takes title to the wine and pays the taxes and complies with the
reporting requirements; or
(c) The wine is exempted from taxation under ORS 473.050 (5).
(5) Notwithstanding ORS 471.392 to 471.400:
(a) If a central warehouse is licensed under section 5 of this
2013 Act, the cooperative operating the warehouse may take title
to wine received at the warehouse.
(b) Title to wine described in this subsection must be
transferred from the cooperative to a member of the cooperative
prior to removal of the wine from the central warehouse and upon
reimbursement by the member of any taxes paid on the wine by the
cooperative. The cooperative shall report the transfer of title
to the Oregon Liquor Control Commission. + }
SECTION 4. { + (1) The Oregon Liquor Control Commission may
issue a central warehouse license to a person for the purpose of
supplying wine to licensed premises described in subsection (3)
of this section.
(2) The central warehouse licensee may store wine at the
central warehouse and may cause the wine to be transported to a
premises licensed for off-premises sales if the central warehouse
licensee:
(a) Takes title to the wine no later than when the wine is
delivered to the central warehouse;
(b) Retains title to the wine until the wine is sold at retail;
and
(c) Causes the wine to be transported from the central
warehouse only to a licensed premises in which the central
warehouse licensee has an interest described in subsection (3) of
this section.
(3) A premises licensed for off-premises sales may receive wine
from a central warehouse licensed under this section if the
central warehouse licensee is named on the off-premises sales
license and the premises is:
(a) Wholly owned by the central warehouse licensee;
(b) Owned in part by the central warehouse licensee and sells
wine at retail under a trade name of the central warehouse
licensee; or
(c) Operated under a contract with the central warehouse
licensee and sells wine at retail under a trade name of the
central warehouse licensee.
(4) Subsections (1) to (3) of this section do not apply to a
central warehouse or central warehouse licensee described in
section 5 of this 2013 Act. + }
SECTION 5. { + (1) The Oregon Liquor Control Commission may
issue a central warehouse license to a cooperative if each member
is a holder of an off-premises sales license.
(2) A member of the cooperative may store wine at the central
warehouse of the cooperative and may cause the wine to be
transported to a premises of the member that is licensed for
off-premises sales if:
(a) The member or the cooperative takes title to the wine no
later than when the wine is delivered to the central warehouse;
(b) Title to the wine is held by the member or the cooperative
until the wine is removed from the central warehouse;
(c) Title to the wine is held by the member from the time the
wine is removed from the central warehouse until the wine is sold
at retail; and
(d) The member causes the wine to be transported from the
central warehouse only to a licensed premises in which the member
has an interest described in subsection (3) of this section.
(3) A premises licensed for off-premises sales in this state
may receive wine from a central warehouse that is owned by a
cooperative described in this section if a member of the
cooperative is named on the off-premises sales license and the
premises is:
(a) Wholly owned by the member;
(b) Owned in part by the member and sells wine at retail under
a trade name of the member; or
(c) Operated under a contract with the member and sells wine at
retail under a trade name of the member. + }
SECTION 6. ORS 471.186 is amended to read:
471.186. (1) The holder of an off-premises sales license may
sell factory-sealed containers of wine, malt beverages and cider.
Containers of malt beverages sold under the license may not hold
more than two and one-quarter gallons.
(2) The holder of an off-premises sales license may provide
sample tasting of alcoholic beverages on the licensed premises if
the licensee makes written application to the Oregon Liquor
Control Commission and receives approval from the commission to
conduct tastings on the premises. Tastings must be limited to the
alcoholic beverages that may be sold under the privileges of the
license.
(3) An off-premises sales license may not be issued for use at
a premises that is mobile.
(4) Except as provided in ORS 471.402, a manufacturer or
wholesaler may not provide or pay for sample tastings of
alcoholic beverages for the public on premises licensed under an
off-premises sales license.
(5) The holder of an off-premises sales license may deliver
wine or cider that is sold under the privileges of the license to
retail customers in this state without a direct shipper permit
issued under ORS 471.282. Any deliveries by the holder of an
off-premises sales license are subject to any rules adopted by
the commission relating to deliveries made under this subsection.
Deliveries under this subsection:
(a) May be made only to a person who is at least 21 years of
age;
(b) May be made only for personal use and not for the purpose
of resale; and
(c) Must be made in containers that are conspicuously labeled
with the words: 'CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21
YEARS OR OLDER REQUIRED FOR DELIVERY. '
(6) The holder of an off-premises sales license that makes
deliveries of wine or cider under subsection (5) of this section
must take all actions necessary to ensure that a carrier used by
the licensee does not deliver any wine or cider unless the
carrier:
(a) Obtains the signature of the recipient of the wine or cider
upon delivery;
(b) Verifies by inspecting government-issued photo
identification that the recipient is at least 21 years of age;
and
(c) Determines that the recipient is not visibly intoxicated at
the time of delivery.
(7) Any person who knowingly or negligently delivers wine or
cider under the provisions of this section to a person under 21
years of age, or who knowingly or negligently delivers wine or
cider under the provisions of this section to a visibly
intoxicated person, violates ORS 471.410.
(8) If a court determines that deliveries of wine or cider
under subsection (5) of this section cannot be restricted to
holders of off-premises sales licenses, and the decision is a
final judgment that is no longer subject to appeal, the holder of
an off-premises sales license may not make deliveries of wine or
cider under the provisions of subsection (5) of this section
after entry of the final judgment.
{ + (9) The holder of an off-premises sales license may cause
wine to be transported from the licensed premises to another
premises that is licensed for off-premises sales if the holder
complies with section 2 of this 2013 Act. The holder of an
off-premises sales license may cause wine to be transported from
a central warehouse to a premises licensed for off-premises sales
if the holder complies with section 4 or 5 of this 2013 Act. + }
SECTION 7. ORS 471.274 is amended to read:
471.274. (1) The Oregon Liquor Control Commission may issue a
wine self-distribution permit to a United States manufacturer of
wine or cider. The commission may issue a wine self-distribution
permit only to a manufacturer of wine or cider that:
(a) Holds a license issued by another state that authorizes the
manufacture of wine or cider; and
(b) Holds a certificate of approval issued under ORS 471.244.
(2) The holder of a wine self-distribution permit may sell at
wholesale and transport wine or cider that the manufacturer
produces directly to the commission, or to retail licensees in
the manner provided by this section. A wine self-distribution
permit allows the holder to sell wine or cider that the holder
produces only to retail licensees who hold a valid endorsement
issued by the commission authorizing receipt of wine or cider
from the holder of a wine self-distribution permit.
(3) In addition to the information required by ORS 471.311 for
licenses, an applicant for a wine self-distribution permit shall
provide the commission with a copy of the license held by the
applicant or with sufficient information to allow verification of
the license by electronic means or other means acceptable to the
commission. The applicant also shall provide the commission with
any information required by the commission to establish that the
license held by the applicant authorizes the manufacture of wine
or cider.
(4) { + Except as provided in this subsection, + }a person
holding a wine self-distribution permit is responsible for paying
all taxes imposed under ORS chapter 473, and for complying with
all reporting requirements imposed by ORS chapter 473, for all
wine and cider sold and transported to retail licensees in this
state. { + If a person holding a wine self-distribution permit
delivers wine to a central warehouse and fails to pay taxes
imposed under ORS chapter 473 or to comply with reporting
requirements imposed by ORS chapter 473, the licensee taking
title to the wine is responsible for the unpaid taxes imposed
under ORS chapter 473 and for complying with reporting
requirements imposed by ORS chapter 473. + }The commission may
revoke, or refuse to issue, a wine self-distribution permit if
the holder of a permit fails to pay taxes or make reports as
required by ORS chapter 473. { + A retail licensee that is
required under this subsection to comply with reporting
requirements is exempt from the reporting requirement imposed by
subsection (6) of this section. + }
(5) A retail licensee may receive wine or cider from the holder
of a wine self-distribution permit only if the licensee has
received prior authorization from the commission. Prior
authorization under this subsection must be made by an
endorsement to the license for the premises where the wine or
cider will be received. The commission may not charge or collect
a fee for an endorsement under this subsection.
(6)(a) Except as provided in { + subsection (4) of this
section or + } paragraph (b) of this subsection, a retail
licensee that receives wine or cider from holders of wine
self-distribution permits must make a monthly report to the
commission, using a form prescribed by the commission, listing
the amount of all wine or cider received from permit holders in
the previous month, and the names of the permit holders from whom
the wine or cider was received. Retail licensees shall retain
such purchase records for products received from permit holders
as may be required by the commission.
(b) The holder of a full or limited on-premises sales license
is not required to file a report under this subsection for any
month in which the licensee receives two or fewer cases of wine
from holders of wine self-distribution permits.
(7) A manufacturer that is not licensed by the commission may
sell and transport wine or cider directly to a retail licensee,
and a retail licensee may receive wine or cider directly from a
manufacturer that is not licensed by the commission, only if the
manufacturer holds a wine self-distribution permit issued under
this section.
(8) The holder of a wine self-distribution permit consents to
the jurisdiction of the commission and the courts of this state
for the purpose of enforcing the provisions of this chapter, ORS
chapter 473 and any related laws or rules.
(9) The holder of a wine self-distribution permit must post a
bond or other security, as described in ORS 471.155.
(10) The commission may revoke, or refuse to issue, a wine
self-distribution permit if the holder of a permit fails to
comply with any provision of this section.
SECTION 8. ORS 471.311 is amended to read:
471.311. (1) Any person desiring a license or renewal of a
license under this chapter shall make application to the Oregon
Liquor Control Commission upon forms to be furnished by the
commission showing the name and address of the applicant,
location of the place of business that is to be operated under
the license, and such other pertinent information as the
commission may require. { - No - } { + A + } license
{ - shall - } { + may not + } be granted or renewed until the
applicant has complied with the provisions of this chapter and
the rules of the commission.
(2) The commission may reject any application that is not
submitted in the form required by rule. The commission shall give
applicants an opportunity to be heard if an application is
rejected. A hearing under this subsection is not subject to the
requirements for contested case proceedings under ORS chapter
183.
(3) Subject to subsection (4) of this section, the commission
shall assess a nonrefundable fee for processing a renewal
application for any license authorized by this chapter only if
the renewal application is received by the commission less than
20 days before expiration of the license. If the renewal
application is received prior to expiration of the license but
less than 20 days prior to expiration, { - this - } { +
the + } fee shall be 25 percent of the annual license fee. If a
renewal application is received by the commission after
expiration of the license but no more than 30 days after
expiration, { - this - } { + the + } fee shall be 40 percent
of the annual license fee. This subsection does not apply to a
certificate of approval, a brewery-public house license or any
license that is issued for a period of less than 30 days.
(4) The commission may waive the fee imposed under subsection
(3) of this section if { - it - } { + the commission + }
finds that failure to submit a timely application was due to
unforeseen circumstances or to a delay in processing the
application by the local governing authority that is no fault of
the licensee.
(5) The license fee is nonrefundable and { - shall - } { +
must + } be paid by each applicant upon the granting or
committing of a license. Subject to ORS 471.155 and 473.065, the
annual or daily license fee and the minimum bond required of each
class of license under this chapter are as follows:
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Minimum
License Fee Bond
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Brewery, including Certificate
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of Approval $ 500 1,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Winery $ 250 1,000
Distillery $ 100 None
Wholesale Malt Beverage
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
and Wine $ 275 1,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Warehouse $ 100 1,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Central Warehouse 1,000 1,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Special events winery
license $ 10 per day
Brewery-Public House,
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
including Certificate
of Approval $ 250 1,000
Limited On-Premises$S200s None
Off-Premises Sales $ 100 None
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Temporary Sales $ 50 per day
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Grower sales privilege
license $ 250 1,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Special events grower
sales privilege
license $ 10 per day
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Special events
brewery-public house
license $ 10 per day
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Special events
distillery
license $ 10 per day
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
(6) The fee for a certificate of approval or special
certificate of approval granted under ORS 471.244 is
nonrefundable and must be paid by each applicant upon the
granting or committing of a certificate of approval or special
certificate of approval. No bond is required for the granting of
a certificate of approval or special certificate of approval.
Certificates of approval are valid for a period commencing on the
date of issuance and ending on December 31 of the fifth calendar
year following the calendar year of issuance. The fee for a
certificate of approval is $175. Special certificates of
approval are valid for a period of 30 days. The fee for a special
certificate of approval is $10.
(7) Except as provided in subsection (8) of this section, the
annual license fee for a full on-premises sales license is $400.
No bond is required for any full on-premises sales license.
(8) The annual license fee for a full on-premises sales license
held by a nonprofit private club as described in ORS 471.175 (8),
or held by a nonprofit or charitable organization that is
registered with the state, is $200.
(9) The annual fee for a wine self-distribution permit is $100,
and the minimum bond is $1,000.
SECTION 9. ORS 473.065 is amended to read:
473.065. (1) If a manufacturer's total tax liability under ORS
473.030 (1) in the previous calendar year was less than $1,000,
the manufacturer may deposit with the Oregon Liquor Control
Commission an amount in cash equal to the manufacturer's total
tax liability under ORS 473.030 (1) for the previous calendar
year in lieu of the bond required by ORS 471.155 (1).
(2) If a manufacturer's actual tax liability under ORS 473.030
(1) is less than the amount deposited under subsection (1) of
this section, the manufacturer may request that the commission
refund the excess funds or may apply those funds toward the
manufacturer's tax liability under ORS 473.030 (1) for the next
calendar year.
(3) If a manufacturer's actual tax liability under ORS 473.030
(1) is greater than the amount deposited under subsection (1) of
this section, the manufacturer shall pay to the commission the
additional amount owed in the manner required under ORS 473.060.
(4) Unless the commission determines that a winery, grower
sales privilege { + , central warehouse + } or warehouse licensee
or direct shipper or wine self-distribution permit holder
presents an unusual risk for nonpayment of any license fees,
privilege taxes, agricultural products taxes or other tax,
penalty or interest imposed under this chapter or ORS chapter
471, the commission shall waive the bond required under ORS
471.155 (1) for the licensee or permit holder if:
(a) The licensee or permit holder was not liable for a
privilege tax under this chapter in the immediately preceding
calendar year and does not expect to be liable for a privilege
tax under this chapter in the current calendar year; or
(b) The licensee or permit holder of a business established
during the current calendar year does not expect to be liable for
a privilege tax under this chapter in the current calendar year.
As used in this paragraph, 'business' means:
(A) A winery.
{ + (B) A central warehouse.
(C) A warehouse. + }
{ - (B) - } { + (D) + } A business operated pursuant to a
license issued under ORS 471.227.
{ - (C) A warehouse. - }
{ - (D) - } { + (E) + } A business operated pursuant to a
permit issued under ORS 471.274.
{ - (E) - } { + (F) + } A business operated pursuant to a
permit issued under ORS 471.282.
SECTION 10. { + Section 2 of this 2013 Act applies to the
transportation, storage and sale of wine occurring before, on or
after the effective date of this 2013 Act. + }
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