Chapter 44 Oregon Laws 2003

AN ACT

HB 2295

Relating to cider; creating new provisions; amending ORS 471.223, 471.229 and 473.057; and declaring an emergency.

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

SECTION 1. ORS 471.223 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.

(d) To sell malt beverages at retail for consumption on or off the licensed premises.

(e) To conduct the activities allowed under paragraph (a), (b), (c) or (d), or all, of this subsection at a second or third premises as may be designated by the commission.

(f) To purchase from or through the commission brandy or other distilled liquors for fortifying wines.

(g) To obtain a special events winery license [which] that shall entitle the holder to conduct the activities allowed under paragraph (c) 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) In order to hold a winery license the licensee shall principally produce wine or cider in this state.

(3) On and after July 1, 1990, 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.

(4) A winery licensee is authorized to ship not more than two cases of wine or cider per month for personal use and not for resale, containing not more than nine liters per case to any resident of this state who is at least 21 years of age. The shipping container of any wine or cider shipped under this subsection must be clearly labeled to indicate that the container contains alcoholic beverages and cannot be delivered to a person who is not at least 21 years of age or to a person who is visibly intoxicated. Orders for shipments under this subsection may be taken by phone, mail or any other form of communication.

(5)(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 distillery, 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) 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 2. The amendments to ORS 471.223 by section 1 of this 2003 Act apply to all winery licenses, whether issued before, on or after the effective date of this 2003 Act.

SECTION 3. ORS 471.229 is amended to read:

471.229. (1) Any resident of this state who is at least 21 years of age is entitled to receive not more than two cases of wine or cider per month for personal use, containing not more than nine liters per case, from another state without payment of additional state tax, fees or charges if the state from which the wine or cider is sent allows its residents to receive wine or cider from this state without imposition of state tax, fees or charges. For privilege tax purposes, receipt of a shipment into this state under this subsection shall not be considered to constitute a sale in this state. No person who transports wine or cider pursuant to this section shall deliver more than two cases of wine or cider to the same address at one time. No person who receives wine or cider pursuant to this section shall resell any of the wine or cider.

(2) A licensee who holds an off-premises sales license or any other license that authorizes retail sale of wine or cider for consumption off the licensed premises may ship not more than two cases of wine or cider, containing not more than nine liters per case, per shipment, for personal use and not for resale, directly to a resident of another state if the state to which the wine or cider is sent allows residents of this state to receive wine or cider sent from that state without payment of additional state tax, fees or charges. The sale shall be considered to have occurred in this state.

(3) The shipping container of any wine or cider sent into or out of this state under this section must be clearly labeled to indicate that the container contains alcoholic beverages and cannot be delivered to a person who is not at least 21 years of age or to a person who is visibly intoxicated.

(4) For purposes of ORS 471.305, an order for wine or cider that is received in writing is a bona fide order.

(5) Sales authorized by this section are sales made by a retailer who is not authorized to sell at wholesale or sales by a winery of wine or cider produced or bottled by the winery.

(6) Out-of-state wine or cider suppliers that supply wine or cider under subsection (1) of this section must obtain a license from the Oregon Liquor Control Commission under procedures prescribed by rule of the commission before selling or soliciting sales of wine or cider in Oregon.

(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, whether or not the person is licensed or appointed under the provisions of this chapter.

SECTION 4. ORS 473.057 is amended to read:

473.057. No tax, fee or other charge shall be imposed on wine or cider sent into this state from another state pursuant to ORS 471.229 if the state from which the wine or cider is sent does not impose a tax, fee or charge on wine or cider from this state sent into the other state in the manner described in ORS 471.229.

SECTION 5. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.

Approved by the Governor April 1, 2003

Filed in the office of Secretary of State April 2, 2003

Effective date April 1, 2003

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