71st OREGON LEGISLATIVE ASSEMBLY--2001 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 4209
House Bill 3960
Sponsored by Representative DOYLE (at the request of Oregon
Grocery Industry Association)
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.
Allows manufacturer or wholesaler of alcoholic beverages to
enter into agreement with retail licensee that provides for
payment for alcoholic beverages within 10 days after delivery.
A BILL FOR AN ACT
Relating to the manner in which retail licensees pay for
alcoholic beverages; creating new provisions; and amending ORS
471.200 and 471.485.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2001 Act is added to and made
a part of ORS 471.392 to 471.400. + }
SECTION 2. { + (1) Nothing in ORS 471.392 to 471.400 or any
other provision of this chapter prevents a manufacturer or
wholesaler from entering into an agreement with a retail licensee
that provides for payment for alcoholic beverages by check or
electronic fund transfer within 10 days, excluding Saturdays and
legal holidays as defined in ORS 187.010, after the alcoholic
beverages are delivered to the licensed premises of the retail
licensee.
(2) A manufacturer or wholesaler, as a condition of allowing
delayed payment under the provisions of this section, may require
that the retail licensee post a bond in an amount not to exceed
$10,000 as security for the payment of the amounts owing for the
alcoholic beverages.
(3) If a manufacturer or wholesaler has delivered alcoholic
beverages to a retail licensee and allowed delayed payment under
the provisions of this section, and the retail licensee fails to
make payment for the alcoholic beverages within the time allowed
by subsection (1) of this section, the manufacturer or wholesaler
may not deliver any other alcoholic beverages to the retail
licensee unless full payment for the new delivery is made either
before or at the time of delivery. The prohibition on allowing
delayed payment imposed by this subsection remains in effect
until all amounts that are owed and that are more than 10 days in
arrears are paid by the retail licensee.
(4) For the purpose of determining whether a retail licensee
has paid for a delivery of alcoholic beverages within the time
allowed by subsection (1) of this section:
(a) All payments made by the retail licensee to a manufacturer
or wholesaler must be applied to the oldest account receivable
for alcoholic beverages delivered to the retail licensee; and
(b) Promissory notes, postdated checks or checks dishonored on
presentation do not constitute payment. + }
SECTION 3. ORS 471.200, as amended by section 26, chapter 351,
Oregon Laws 1999, is amended to read:
471.200. (1) A brewery-public house license shall allow the
licensee:
(a) To manufacture annually 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; and
(f) To conduct the activities described in paragraphs (b) to
(e) of this subsection at one location other than the premises
where the manufacturing occurs.
(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
malt beverages produced by the brewery-public house licensee if
the brewery-public house licensee produced 500 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 { + and section 2 of this 2001 Act + }, 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.
(c) 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 distillery, unless the distillery
produces only pot distilled liquor and produces no more than
12,000 gallons of pot distilled liquor 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 if the
licensee produces only pot distilled liquor, and produces no more
than 12,000 gallons of pot distilled liquor annually. No
provision of this chapter prevents a brewery-public house
licensee from becoming a retail sales agent of the commission for
the purpose of selling distilled liquors.
(9) Notwithstanding subsection (3) of this section, the
commission by rule may authorize a brewery-public house licensee
to co-produce 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 471.485, as amended by section 74, chapter 351,
Oregon Laws 1999, is amended to read:
471.485. { + Except as provided in section 2 of this 2001
Act, + } no wholesale licensee or agent or employee thereof shall
sell or deliver, nor shall any retail licensee purchase or
receive any malt beverages, cider or wine for currency on
delivery, but such malt beverages, cider or wine shall be paid
for prior to delivery thereof, by electronic fund transfer
initiated on or before the date of delivery, or by valid check,
order, negotiable instrument or voucher payable on the date of
delivery. The wholesale licensee may accept cash at the time of
delivery if such acceptance does not create or increase the
licensee's, or the agents' or employees' of the licensee,
exposure to or risk of being victimized by criminal activity.
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