77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
Senate Bill 795
Sponsored by Senator PROZANSKI, Representatives WEIDNER, HOLVEY
CHAPTER ................
AN ACT
Relating to alcoholic beverages; amending ORS 471.157, 471.190,
471.200, 471.223, 471.227, 471.375 and 471.401; and declaring
an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 471.157 is amended to read:
471.157. The licenses described in this chapter may be issued
by the Oregon Liquor Control Commission, subject to its
regulations and restrictions and the provisions of the Liquor
Control Act { - and the Oregon Distilled Liquor Control Act - }
.
SECTION 2. ORS 471.190 is amended to read:
471.190. (1) The holder of a temporary sales license may { + :
(a) + } Sell at retail by the drink wine, malt beverages, cider
and distilled liquor.
{ + (b) Sell for consumption off the licensed premises wine,
malt beverages and cider in factory-sealed containers.
(c) Sell for consumption off the licensed premises wine, malt
beverages and cider in securely covered containers supplied by
the consumer and having capacities of not more than two gallons
each.
(2) + } Distilled liquor served by the holder of a temporary
sales license must be purchased from a retail sales agent of the
Oregon Liquor Control Commission. The holder of a temporary sales
license must provide food service as required by commission rule.
{ - (2) - } { + (3) + } A temporary sales license may be
issued only to:
(a) Nonprofit or charitable organizations that are registered
with the state.
(b) A political committee that has filed a statement of
organization under ORS 260.039 or 260.042.
(c) State agencies.
(d) Local governments, and agencies and departments of local
governments.
(e) Persons not otherwise described in this subsection, as long
as the applicant submits a plan that is approved by the
commission detailing how minors will be prevented from gaining
access to alcoholic beverages and how minors will be prevented
from gaining access to any portion of the licensed premises
prohibited to minors under ORS 471.430 (3) or any rule adopted by
the commission.
Enrolled Senate Bill 795 (SB 795-B) Page 1
{ - (3) The holder of a temporary sales license may sell
wine, malt beverages or cider in factory-sealed containers for
consumption off the licensed premises. - }
(4) The commission may by rule establish additional eligibility
requirements for temporary sales licenses.
(5) Subject to such qualifications as the commission may
establish by rule, persons who hold a full or limited on-premises
sales license are eligible for temporary sales licenses.
(6) A person holding a temporary sales license is not required
to obtain an intermittent temporary restaurant, seasonal
temporary restaurant, single-event temporary restaurant license
or mobile unit license under ORS chapter 624 if only wine, malt
beverages and cider in single-service containers are served and
only nonperishable food items that are exempted from licensure by
the Oregon Health Authority are served.
(7) Employees and volunteers serving alcoholic beverages for a
nonprofit or charitable organization licensed under this section
are not required to have service permits or to complete an
alcohol server education program and examination under ORS
471.542. The commission by rule may establish education
requirements for servers described in this subsection.
(8) Notwithstanding ORS 471.392 to 471.400, a temporary sales
license may be issued to a nonprofit trade association that has a
membership primarily composed of persons that hold winery
licenses issued under ORS 471.223 or grower sales privilege
licenses issued under ORS 471.227.
SECTION 3. ORS 471.200, as amended by section 4, chapter 32,
Oregon Laws 2013, is amended to read:
471.200. (1) A brewery-public house license allows the
licensee:
(a) To manufacture on the licensed premises, store, transport,
sell to wholesale malt beverage and wine licensees of the Oregon
Liquor Control Commission and export malt beverages;
(b) To sell malt beverages manufactured on or off the licensed
premises at retail for consumption on or off the premises;
(c) To sell malt beverages in brewery-sealed packages at retail
directly to the consumer for consumption off the premises;
(d) To sell on the licensed premises at retail malt beverages
manufactured on or off the licensed premises in unpasteurized or
pasteurized form directly to the consumer for consumption off the
premises, delivery of which may be made in a securely covered
container supplied by the consumer;
(e) To sell wine and cider at retail for consumption on or off
the premises;
(f) To sell for consumption off the premises wines and cider in
securely covered containers supplied by the consumer and having
capacities of not more than two gallons each;
(g) To conduct the activities { + , except manufacturing, + }
described in paragraphs { - (b) - } { + (a) + } to (f) of
this subsection at one location other than the premises where the
manufacturing occurs; and
(h) To obtain a special events brewery-public house license
entitling the holder to conduct the activities allowed under
paragraphs (b) { - , (c) and (e) - } { + to (f) + } of this
subsection at a designated location other than the location set
forth in the brewery-public house license for a period not
exceeding five days.
(2) In addition to the privileges specified in subsection (1)
of this section, in any calendar year a brewery-public house
licensee may sell at wholesale to licensees of the commission
Enrolled Senate Bill 795 (SB 795-B) Page 2
malt beverages produced by the brewery-public house licensee if
the brewery-public house licensee produced 5,000 barrels or less
of malt beverages in the immediately preceding calendar year.
(3) A brewery-public house licensee, or any person having an
interest in the licensee, is a retail licensee for the purposes
of ORS 471.394 and, except as otherwise provided by this section
and ORS 471.396, may not acquire or hold any right, title, lien,
claim or other interest, financial or otherwise, in, upon or to
the premises, equipment, business or merchandise of any
manufacturer or wholesaler, as defined in ORS 471.392. A
brewery-public house licensee, or any person having an interest
in the licensee, is also a manufacturer for the purposes of ORS
471.398 and, except as otherwise provided by this section and ORS
471.400, may not acquire or hold any right, title, lien, claim or
other interest, financial or otherwise, in, upon or to the
premises, equipment, business or merchandise of any other retail
licensee, as defined in ORS 471.392.
(4) A brewery-public house licensee, or any person having an
interest in the licensee, is a retail licensee for the purposes
of ORS 471.398 and, except as otherwise provided by this section
and ORS 471.400, may not accept directly or indirectly any
financial assistance described in ORS 471.398 from any
manufacturer or wholesaler, as defined in ORS 471.392. A
brewery-public house licensee, or any person having an interest
in the licensee, is also a manufacturer for the purposes of ORS
471.398 and, except as otherwise provided by this section and ORS
471.400, may not provide directly or indirectly any financial
assistance described in ORS 471.398 to any retail licensee, as
defined in ORS 471.392. The prohibitions on financial assistance
in ORS 471.398 do not apply to financial assistance between
manufacturing and retail businesses licensed to the same person
under the provisions of this section.
(5) Notwithstanding subsection (3) of this section, a
brewery-public house licensee, or any person having an interest
in the licensee, may also hold a winery license authorized by ORS
471.223. A brewery-public house licensee, or any person having an
interest in the licensee, may also hold a warehouse license
authorized by ORS 471.242.
(6) Notwithstanding subsection (3) of this section, a
brewery-public house licensee is eligible for limited on-premises
sales licenses and temporary sales licenses.
(7)(a) Notwithstanding subsection (3) of this section, and
except as provided in this subsection, a brewery-public house
licensee, or any person having an interest in the licensee, may
also hold a full on-premises sales license. If a person holds
both a brewery-public house license and a full on-premises sales
license, nothing in this chapter shall prevent the sale by the
licensee of both distilled liquor and malt beverages manufactured
under the brewery-public house license.
(b) The commission may not issue a full on-premises sales
license to a brewery-public house licensee under the provisions
of this subsection if the brewery-public house licensee, or any
person having an interest in the licensee or exercising control
over the licensee, is a brewery that brews more than 200,000
barrels of malt beverages annually or a winery that produces more
than 200,000 gallons of wine annually.
(8) Notwithstanding any other provision of this chapter, a
brewery-public house licensee, or any person having an interest
in the licensee, may also hold a distillery license. No provision
of this chapter prevents a brewery-public house licensee that
Enrolled Senate Bill 795 (SB 795-B) Page 3
also holds a distillery license from being appointed by the
commission as the distillery's retail outlet agent for the
purpose of selling distilled liquors under ORS 471.230.
(9) Notwithstanding subsection (3) of this section, the
commission by rule may authorize a brewery-public house licensee
to coproduce special events with other manufacturers.
(10)(a) Notwithstanding subsection (3) of this section, a
brewery-public house licensee may hold, directly or indirectly,
an interest in a manufacturer or wholesaler, provided that the
interest does not result in exercise of control over, or
participation in the management of, the manufacturer's or
wholesaler's business or business decisions and does not result
in exclusion of any competitor's brand of alcoholic liquor.
(b) Notwithstanding subsection (3) of this section, a
manufacturer or wholesaler, and any officer, director or
substantial stockholder of any corporate manufacturer or
wholesaler, may hold, directly or indirectly, an interest in a
brewery-public house licensee, provided that the interest does
not result in exercise of control over, or participation in the
management of, the licensee's business or business decisions and
does not result in exclusion of any competitor's brand of
alcoholic liquor.
(11) For purposes of ORS chapter 473, a brewery-public house
licensee shall be considered to be a manufacturer.
SECTION 4. ORS 471.223, as amended by section 5, chapter 32,
Oregon Laws 2013, is amended to read:
471.223. (1) A winery license shall allow the licensee:
(a) To import, bottle, produce, blend, store, transport or
export wines or cider.
(b) To sell wines or cider at wholesale to the Oregon Liquor
Control Commission or to licensees of the commission.
(c) To sell wines or cider at retail directly to the consumer
for consumption on or off the licensed premises.
(d) To sell malt beverages at retail for consumption on or off
the licensed premises.
(e) To sell for consumption off the premises malt beverages,
wines and cider in securely covered containers supplied by the
consumer and having capacities of not more than two gallons each.
(f) To conduct the activities allowed under paragraphs (a) to
(e) of this subsection at a second or third premises as may be
designated by the commission.
(g) To purchase from or through the commission brandy or other
distilled liquors for fortifying wines.
(h) To obtain a special events winery license that shall
entitle the holder to conduct the activities allowed under
paragraphs (c) { - and (d) - } { + to (e) + } of this
subsection at a designated location other than the one set forth
in the winery license for a period not to exceed five days.
{ + (2) A winery licensee shall allow a patron to remove a
partially consumed bottle of wine from the licensed premises if
the patron is not a minor and the patron is not visibly
intoxicated. + }
{ - (2) - } { + (3) + } In order to hold a winery license
the licensee shall principally produce wine or cider in this
state.
{ - (3) - } { + (4) + } A winery licensee is not authorized
to import wine or cider in bottles unless the brand of wine or
cider is owned by the licensee.
Enrolled Senate Bill 795 (SB 795-B) Page 4
{ - (4) - } { + (5) + } A winery licensee may sell and ship
wine or cider directly to a resident of this state only if the
licensee has a direct shipper permit issued under ORS 471.282.
{ - (5)(a) - } { + (6)(a) + } Except as provided in
paragraph (b) of this subsection, a winery licensee, or any
person having an interest in the licensee, may also hold a full
on-premises sales license. If a person holds both a winery
license and a full on-premises sales license, nothing in this
chapter shall prevent the sale by the licensee of both distilled
liquor and wine or cider bottled and produced under the winery
license.
(b) The commission may not issue a full on-premises sales
license to a winery licensee under the provisions of this
subsection if the winery licensee, or any person having an
interest in the licensee or exercising control over the licensee,
is a brewery that brews more than 200,000 barrels of malt
beverages annually or a winery that produces more than 200,000
gallons of wine or cider annually.
{ - (6) - } { + (7) + } More than one winery licensee may
exercise the privileges of a winery license at a single location.
The commission may not refuse to issue a winery license to a
person for the production of wine or cider on specified premises
based on the fact that other winery licensees also produce wine
or cider on those premises.
SECTION 5. ORS 471.223, as amended by section 1, chapter 364,
Oregon Laws 2011, and section 6, chapter 32, Oregon Laws 2013, is
amended to read:
471.223. (1) As used in this section, 'control' means that the
licensee:
(a) Owns the brand under which the wine or cider is labeled; or
(b) Performs or has the legal right to perform all of the acts
common to a brand owner under the terms of a trademark license or
similar agreement that for the brand under which the wine or
cider is labeled has a term of at least three years.
(2) A winery license shall allow the licensee:
(a) To import wine or cider in containers that have a capacity
of more than four liters.
(b) To import wine or cider in containers that have a capacity
of four liters or less if the brand of wine or cider is under the
control of the licensee.
(c) To bottle, produce, blend, store, transport or export wines
or cider.
(d) To sell wines or cider at wholesale to the Oregon Liquor
Control Commission or to licensees of the commission.
(e) To sell wines or cider at retail directly to the consumer
for consumption on or off the licensed premises.
(f) To sell malt beverages at retail for consumption on or off
the licensed premises.
(g) To sell for consumption off the premises malt beverages,
wines and cider in securely covered containers supplied by the
consumer and having capacities of not more than two gallons each.
(h) To conduct any activities described in paragraphs (a) to
(g) of this subsection at a second or third premises as may be
designated by the commission.
(i) To purchase from or through the commission brandy or other
distilled liquors for fortifying wines.
(j) To obtain a special events winery license that shall
entitle the holder to conduct the activities allowed under
paragraphs (e) { - and (f) - } { + to (g) + } of this
Enrolled Senate Bill 795 (SB 795-B) Page 5
subsection at a designated location other than the one set forth
in the winery license for a period not to exceed five days.
{ + (3) A winery licensee shall allow a patron to remove a
partially consumed bottle of wine from the licensed premises if
the patron is not a minor and the patron is not visibly
intoxicated. + }
{ - (3) - } { + (4) + } In order to hold a winery license
the licensee shall:
(a) Possess at a bonded premises within Oregon a valid producer
and blender basic permit issued by the federal Alcohol and
Tobacco Tax and Trade Bureau; or
(b) Possess a valid wine blender or valid wholesaler basic
permit issued by the federal Alcohol and Tobacco Tax and Trade
Bureau and have a written contract with a winery licensed under
paragraph (a) of this subsection that authorizes the winery to
produce for the licensee a brand of wine or cider that is under
the control of the licensee.
{ - (4) - } { + (5) + } A winery licensee may sell and ship
wine or cider directly to a resident of this state only if the
licensee has a direct shipper permit issued under ORS 471.282.
{ - (5)(a) - } { + (6)(a) + } Except as provided in
paragraph (b) of this subsection, a winery licensee, or any
person having an interest in the licensee, may also hold a full
on-premises sales license. If a person holds both a winery
license and a full on-premises sales license, nothing in this
chapter shall prevent the sale by the licensee of both distilled
liquor and wine or cider bottled and produced under the winery
license.
(b) The commission may not issue a full on-premises sales
license to a winery licensee under the provisions of this
subsection if the winery licensee, or any person having an
interest in the licensee or exercising control over the licensee,
is a brewery that brews more than 200,000 barrels of malt
beverages annually or a winery that produces more than 200,000
gallons of wine or cider annually.
{ - (6) - } { + (7) + } More than one winery licensee may
exercise the privileges of a winery license at a single location.
The commission may not refuse to issue a winery license to a
person for the production of wine or cider on specified premises
based on the fact that other winery licensees also produce wine
or cider on those premises.
{ - (7) - } { + (8) + } If a winery licensee does not
possess at a bonded premises within Oregon a valid producer and
blender basic permit issued by the federal Alcohol and Tobacco
Tax and Trade Bureau, the licensee may exercise the privileges
described in this section only for wine and cider brands that are
under the control of the licensee.
SECTION 6. ORS 471.227, as amended by section 7, chapter 32,
Oregon Laws 2013, is amended to read:
471.227. (1) A grower sales privilege license shall allow the
licensee to perform the following activities only for fruit or
grape wine or cider where all of the fruit or grapes used to make
the wine or cider are grown in Oregon under the control of the
licensee:
(a) To import, store, transport or export such wines or cider.
(b) To sell such wines or cider at wholesale to the Oregon
Liquor Control Commission or licensees of the commission.
(c) To sell such wines or cider at retail directly to the
consumer for consumption on or off the licensed premises.
Enrolled Senate Bill 795 (SB 795-B) Page 6
(d) To sell at retail for consumption off the licensed premises
malt beverages and such wines and cider in securely covered
containers provided by the consumer and having capacities of not
more than two gallons each.
(e) To conduct some or all of the activities allowed under
paragraphs (a) to (d) of this subsection at a second or third
premises as may be designated by the commission.
(f) To obtain a special events grower sales privilege license
which shall entitle the holder to conduct the activities allowed
under { - paragraph (c) - } { + paragraphs (c) and (d) + } of
this subsection at a designated location other than the one set
forth in the grower sales privilege license for a period not to
exceed five days.
{ + (2) A grower sales privilege licensee shall allow a
patron to remove a partially consumed bottle of wine from the
licensed premises if the patron is not a minor and the patron is
not visibly intoxicated. + }
{ - (2) - } { + (3) + } For purposes of ORS 471.392 to
471.400, a grower sales privilege licensee shall be considered a
manufacturer.
{ - (3) - } { + (4) + } A person holding a winery license
in another state is not eligible for a license under this
section.
{ - (4) - } { + (5) + } A person licensed under this
section is not eligible for a limited on-premises sales license
or an off-premises sales license.
{ - (5) - } { + (6) + } As used in this section, 'control'
means the grower either owns the land upon which the fruit or
grapes are grown or has a legal right to perform or does perform
all of the acts common to fruit farming or viticulture under
terms of a lease or similar agreement of at least three years'
duration.
{ - (6) - } { + (7) + } For the purposes of tax reporting,
payment and record keeping, the provisions of law that shall
apply to a manufacturer under ORS chapter 473 shall apply to a
grower sales privilege licensee, but such a licensee is not a
manufacturer for purposes of ORS 473.050 (5).
SECTION 7. ORS 471.375, as amended by section 3, chapter 54,
Oregon Laws 2012, is amended to read:
471.375. (1) Any person who has not had a permit refused or
revoked or whose permit is not under suspension may mix, sell or
serve alcoholic beverages { - for consumption on licensed
premises - } { + as provided under subsection (4) of this
section + } if the person prepares in duplicate an application
for a service permit prior to mixing, selling or serving any
alcoholic beverage for consumption on licensed premises and the
application is indorsed as required under subsection (2) of this
section. A copy of the indorsed application must be kept on the
licensed premises by any licensee for whom the person mixes,
sells or serves alcoholic beverages and must be made available
for immediate inspection by any liquor enforcement inspector or
by any other peace officer until the applicant receives the
service permit.
(2) An application for a service permit under subsection (1) of
this section must be indorsed by one of the following persons:
(a) The licensee under whose license the applicant will mix,
sell or serve alcoholic beverages. If a licensee indorses an
application, the licensee must immediately transmit the
application to the commission with the fee required by subsection
(3) of this section.
Enrolled Senate Bill 795 (SB 795-B) Page 7
(b) An officer or employee of a company that provides servers
to licensees on a temporary basis. The commission must give a
company written approval to indorse service permit applications
before an application may be indorsed under this paragraph.
(c) An employee of the commission designated by the commission
to accept and indorse applications under this section. The
applicant must personally appear before the employee of the
commission and provide identification as may be required by
commission rule.
(d) An employee of an alcohol server education course provider
that has been certified by the commission under ORS 471.542 (8).
The employee must be specifically designated by the provider to
indorse applications under this section.
(3) An applicant for a service permit must be 18 years of age
or over. Application for a service permit shall be made on a form
supplied by the commission. The applicant shall truly answer all
questions, provide any further information required, and pay a
fee not to exceed $10. The commission shall either set the fee to
cover only the administrative costs of the service permit
program, or apply any excess to the Alcohol Education Program
established under ORS 471.541.
{ + (4) An applicant for a service permit whose application
has been indorsed as provided under this section may:
(a) Participate in the mixing, selling or service of alcoholic
beverages for consumption on the premises where served or sold;
and
(b) Participate in the dispensing of malt beverages, wine or
cider sold in securely covered containers provided by the
consumer. + }
SECTION 8. ORS 471.401 is amended to read:
471.401. (1) Notwithstanding any other provision of this
chapter, a manufacturer or wholesaler of alcoholic liquor may
purchase advertising space or time from a licensee authorized to
sell alcoholic liquors at retail if the retail licensee:
(a) Holds a full or limited on-premises sales license and has
on the licensed premises at least one room or area for which the
maximum occupancy approved by the State Fire Marshal or a
governmental subdivision granted an exemption under ORS 476.030
is 3,000 or more persons;
(b) Holds a full or limited on-premises sales license and the
licensed premises is owned by the United States Government or a
public body as defined in ORS 174.109;
(c) Holds a full or limited on-premises sales license and is a
foreign corporation or nonprofit corporation, both as defined in
ORS 65.001, that possesses a certificate of authorization or
certificate of existence issued under ORS 65.027; or
(d) Holds a temporary sales license and is an entity described
in ORS 471.190 { - (2)(a) - } { + (3)(a) + }, (c) or (d).
(2) A manufacturer or wholesaler may purchase advertising space
or time under this section only in connection with events to be
held on the licensed premises.
(3) A retail licensee that sells advertising space or time
under this section must serve other brands of distilled liquors,
malt beverages, cider or wine in addition to the brand
manufactured or sold by the manufacturer or wholesaler purchasing
advertising space or time.
(4) A purchase of advertising space or time under the
provisions of this section must be made by written agreement.
SECTION 9. { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
Enrolled Senate Bill 795 (SB 795-B) Page 8
is declared to exist, and this 2013 Act takes effect on its
passage. + }
----------
Passed by Senate April 17, 2013
Repassed by Senate June 18, 2013
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House June 13, 2013
.............................................................
Tina Kotek, Speaker of House
Enrolled Senate Bill 795 (SB 795-B) Page 9
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 Senate Bill 795 (SB 795-B) Page 10