72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 1359
House Bill 3130
Sponsored by Representative MILLER; Representatives BUTLER,
FLORES, GALLEGOS, KITTS, G SMITH, T SMITH, Senators GEORGE,
HARPER
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.
Eliminates role of Oregon Liquor Control Commission in
importing, warehousing and retailing of distilled liquors.
Creates off-premises distilled liquor license. Authorizes
holder of license to sell factory-sealed containers of distilled
liquor for consumption off licensed premises. Allows holder of
license to establish prices of distilled liquor. Establishes
conditions and fees for off-premises distilled liquor license.
Creates wholesale liquor license. Prohibits importation,
storage, transportation, wholesale sale or distribution of
distilled liquor without wholesale liquor license. Establishes
conditions and fees for wholesale liquor license.
Imposes privilege tax on distilled liquor of $___ per gallon.
Becomes operative July 1, 2004.
A BILL FOR AN ACT
Relating to alcoholic beverages; creating new provisions;
amending ORS 279.015, 279.019, 279.103, 279.712, 430.338,
430.345, 430.366, 430.368, 430.385, 471.038, 471.039, 471.105,
471.175, 471.184, 471.190, 471.200, 471.223, 471.227, 471.230,
471.235, 471.289, 471.302, 471.311, 471.327, 471.341, 471.346,
471.392, 471.404, 471.405, 471.480, 471.510, 471.710, 471.725,
471.805, 473.040, 473.050, 473.060, 473.070, 473.080, 473.090,
473.100, 473.140, 473.150, 473.160 and 473.170; repealing ORS
471.740, 471.745, 471.750, 471.752 and 471.754; and providing
for revenue raising that requires approval by a three-fifths
majority.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 6 of this 2003 Act are added to
and made a part of ORS chapter 471. + }
SECTION 2. { + On and after the operative date of this 2003
Act, the Oregon Liquor Control Commission shall cease
importation, storage and retail sales of distilled liquor.
Importation, storage and retail sales of distilled liquor shall
be performed under wholesale liquor licenses and off-premises
distilled liquor licenses as authorized under sections 2 to 6 of
this 2003 Act. + }
SECTION 3. { + (1) A holder of an off-premises distilled
liquor license may sell factory-sealed containers of distilled
liquor for consumption off the licensed premises. Containers of
distilled liquor sold under the license may not hold more than
one gallon.
(2) A holder of an off-premises distilled liquor license may
buy distilled liquor only from the holder of a wholesale liquor
license.
(3) A holder of an off-premises distilled liquor license may
sell distilled liquor only at the premises approved by the Oregon
Liquor Control Commission at the time the license is issued or
renewed. The location may be changed only with the prior approval
of the commission. In deciding whether to allow a change in
location under this subsection, the commission shall apply the
same criteria used in making a determination on an initial
application for an off-premises distilled liquor license. The
commission shall also consider increases and decreases in
population densities in considering requests for changing the
location of the licensed premises.
(4) An off-premises distilled liquor license may not be issued
for the same premises that are used for sales of alcoholic liquor
for consumption on the premises. A holder of an off-premises
distilled liquor license shall not permit the consumption of
alcoholic liquor upon the licensed premises.
(5) The holder of an off-premises distilled liquor license may
not hold a full or limited on-premises sales license.
(6) The holder of an off-premises distilled liquor licenses may
establish retail prices for the sale of distilled liquor. + }
SECTION 4. { + (1) As soon as reasonably practicable after the
operative date of this 2003 Act, and not later than January 1,
2005, the Oregon Liquor Control Commission shall sell all liquor
stock located in the warehouses and stores established by the
commission under ORS 471.750 (2001 Edition). The commission may
sell liquor stock only to holders of off-premises distilled
liquor licenses. A holder of an off-premises distilled liquor
license may acquire liquor stock by paying the price per bottle
paid by the commission for the alcoholic beverage, plus the
markup amount imposed under the law in effect before the
operative date of this 2003 Act after deduction of all amounts
attributable to agent compensation.
(2) The purchase price of liquor stock acquired under this
section must be paid in cash or under an agreement requiring full
payment within five years of the purchase. The interest rate on
any deferred payment for the liquor stock may not exceed nine
percent per annum. The commission may require such security and
terms as the commission deems appropriate for the sale of the
liquor stock.
(3) As soon as practicable after the operative date of this
2003 Act, and no later than January 1, 2005, the Oregon Liquor
Control Commission shall sell all equipment, supplies and
property other than liquor stock, real and personal, held by the
commission for the operation of warehouses and stores established
under ORS 471.750 (2001 Edition).
(4) All proceeds from the sale of liquor stock and other
property under this section shall be paid into the General
Fund. + }
SECTION 5. { + The Oregon Liquor Control Commission may by
rule establish a limit for the number of off-premises distilled
liquor licenses. The commission may not change the number of
authorized licenses more than once every two years. The number
must be based on the best available population estimates for the
state. If at any time there is more than one application for an
available off-premises distilled liquor license, and more than
one applicant is qualified to receive the license, the commission
shall grant the license based on a lottery. + }
SECTION 6. { + (1) The holder of a wholesale liquor license
may import, store, transport, export, sell at wholesale and
distribute distilled liquors to holders of off-premises distilled
liquor licenses issued under section 3 of this 2003 Act. The
holder of a wholesale liquor license may not sell alcoholic
liquor for consumption on the licensed premises. The holder of a
wholesale liquor license may deliver distilled liquor only to
premises licensed under section 3 of this 2003 Act.
(2) A person may not import, store, transport, export, sell at
wholesale or distribute distilled liquors unless the person is
licensed under the provisions of this section.
(3) The holder of an off-premises distilled liquor license may
make payment for purchases of distilled liquor, and the holder of
a wholesale liquor license may accept payment for purchases of
distilled liquor, by cash, check or electronic fund transfer. All
payments for distilled liquors by the holder of an off-premises
distilled liquor license must be made before or at the time the
distilled liquor is delivered. + }
SECTION 7. ORS 279.712 is amended to read:
279.712. (1) The Oregon Department of Administrative Services
shall purchase or otherwise provide for the acquisition or
furnishing of all supplies, materials, equipment and services,
including architectural, engineering and other personal services,
required by state agencies, except to the extent the department
authorizes a state agency to purchase directly in accordance with
ORS 279.727.
(2) Subsection (1) of this section does not apply to:
{ - (a) Purchases of alcoholic liquor by the Oregon Liquor
Control Commission; - }
{ - (b) - } { + (a) + } Agreements entered into by the
Department of Education for the purchase or distribution of
textbooks;
{ - (c) - } { + (b) + } Personal service and public
improvement contracts of the Department of Transportation
relating to maintenance or construction of highways, bridges,
parks or other transportation facilities;
{ - (d) - } { + (c) + } Personal service and public
improvement contracts of the State Department of Fish and
Wildlife for dams, fishways, ponds and related fish and game
propagation facilities;
{ - (e) - } { + (d) + } Insurance and service contracts to
provide medical assistance as provided for under ORS 414.115,
414.125, 414.135 and 414.145;
{ - (f) - } { + (e) + } Personal service and public
improvement contracts of the Economic and Community Development
Department relating to its foreign trade offices operating
outside the state;
{ - (g) - } { + (f) + } Personal service contracts of the
Attorney General relating to attorney services required by law to
be performed by the Attorney General;
{ - (h) - } { + (g) + } Personal service contracts entered
into by the Director of Veterans' Affairs for real estate broker
or principal real estate broker services; and
{ - (i) - } { + (h) + } A contract of any other state
agency when the agency is specifically authorized by any
provisions of law other than this chapter to enter into the
contract.
(3) The following requirements and procedures apply to personal
service contracts:
(a) Except as provided in subsection (2) of this section, the
Oregon Department of Administrative Services shall execute all
personal service contracts of state agencies, and all requisite
approvals must be obtained, including the approval of the
Attorney General, if applicable, before any state agency personal
service contract becomes binding upon the state and before any
service may be performed or payment may be made under the
contract, unless the contract is exempt from the prohibition
against services being performed before review for legal
sufficiency is obtained under ORS 291.047 (6).
(b) The department shall by rule set forth the requirements
necessary to implement the provisions of this subsection,
including but not limited to rules establishing:
(A) The type of documentation that must accompany contracts
submitted to the department for procurement.
(B) A reporting system for personal service contracts. A state
agency shall submit to the department personal service contract
information as directed by the department.
(C) Procedures for the screening and selection of persons to
perform personal services when the department authorizes a state
agency to contract directly pursuant to ORS 279.051.
(D) Procedures to permit services to be performed when
circumstances exist that create substantial risk of loss, damage,
interruption of services or threat to public health or safety and
that require prompt action to protect the interests of this
state.
(c) The department may exempt certain personal service
contracts or classes of personal service contracts, in whole or
in part, from the requirements of this subsection if the
department finds that:
(A) It is unlikely that an exemption will encourage favoritism
in the awarding of a personal service contract or will
substantially diminish competition for personal service
contracts; and
(B) The awarding of a personal service contract pursuant to the
exemption will result in substantial cost savings to the state
agency.
(d) In making its findings under paragraph (c) of this
subsection, the department may consider the type, cost and amount
of the contract, number of persons available to contract and such
other factors as the department considers appropriate.
(e) Each state agency shall file with the department a copy of
each personal service contract entered into by the agency,
including appropriate documentation as required by the
department. The department shall keep the copy of the contract
and its documentation on file for three years, after which the
department may destroy the file.
(f) The department shall maintain a system for filing copies of
personal service contracts and documentation submitted to it
under paragraph (e) of this subsection.
(g) The department shall submit a biennial report to the
Legislative Assembly concerning the use of personal service
contracts by state agencies. The report shall specify the name of
each contracting agency, the amount paid under each personal
service contract entered into by the agency, the name of the
contractor, the duration of the contract and the contract's basic
purpose. The report also shall include the total dollar figure of
all personal service contracts for each year of the preceding
biennium.
(h) The department may not approve any personal service
contract before the contract has been reviewed for legal
sufficiency and approved by the Attorney General, if such review
and approval are required under ORS 291.047.
(i) Whenever a state agency pays more in a calendar year under
a personal service contract for services historically performed
by state employees than the agency would have paid to its
employees performing the same work, the agency shall so report to
the department and include in the report a statement of
justification for the greater costs.
(j) The department shall notify all state agencies of the
requirements of this section.
SECTION 8. ORS 471.038 is amended to read:
471.038. (1) Nonbeverage food products described in subsection
(6) of this section may be sold at retail by any holder of a
license issued by the Oregon Liquor Control Commission that
authorizes the sale of alcoholic liquor at retail { - , or in
any store operated by the commission under the provisions of ORS
471.750 - } . Any nonbeverage food product containing more than
one-half of one percent of alcohol by volume must be clearly
labeled to reflect the alcohol content of the product and clearly
labeled on the front of the package to indicate that the product
may not be sold to persons under 21 years of age.
(2) Except as provided by this section, sales of nonbeverage
food products described in subsection (6) of this section are
subject to all provisions of this chapter, including the
prohibitions on sales to persons under 21 years of age and the
prohibitions on sales to persons who are visibly intoxicated.
(3) Nonbeverage food products described in subsection (6) of
this section may be imported, stored and distributed in this
state without a license issued by the commission. Nonbeverage
food products described in subsection (6) of this section are not
subject to the privilege taxes imposed by ORS chapter 473.
(4) Manufacturers of nonbeverage food products described in
subsection (6) of this section are not subject to the provisions
of ORS 471.392 to 471.400, 471.485, 471.490 or 471.495 or any
other provision of this chapter relating to manufacturers of
alcoholic liquor. A manufacturer of nonbeverage food products
described in subsection (6) of this section may sell and deliver
the product directly to a licensee authorized under this section
to sell the product at retail.
(5) The holder of a distillery license issued under ORS 471.230
who is also a manufacturer of nonbeverage food products described
in subsection (6) of this section may purchase distilled liquor
directly from other distilleries.
(6) The provisions of this section apply only to nonbeverage
food products that contain not more than five percent alcohol by
weight or 10 percent alcohol by volume, whichever is greater.
SECTION 9. ORS 471.175 is amended to read:
471.175. (1) The holder of a full on-premises sales license may
sell by the drink at retail wine, malt beverages, cider and
distilled liquor. Except as provided in this section, all
alcoholic beverages sold under a full on-premises sales license
must be consumed on the licensed premises.
(2) A full on-premises sales license may be issued only to:
(a) Private clubs as described in subsection { - (8) - }
{ + (7) + } of this section.
(b) Public passenger carriers as provided in ORS 471.182.
(c) Commercial establishments as defined in ORS 471.001 (2).
(d) Public locations, other than those described in paragraphs
(a) to (c) of this subsection, where food is cooked and served,
and other food service amenities are provided, as prescribed by
rules of the Oregon Liquor Control Commission.
(e) A caterer, subject to the requirements of ORS 471.184.
(3) The holder of a full on-premises sales license shall allow
a patron to remove a partially consumed bottle of wine from the
licensed premises if the wine is served in conjunction with the
patron's meal, the patron is not a minor and the patron is not
visibly intoxicated.
{ - (4) The holder of a full on-premises sales license is
entitled to purchase any distilled liquor from an agent of the
commission appointed pursuant to ORS 471.750 at a discount of not
more than five percent off the regular listed price fixed by the
commission, together with all taxes, in a manner prescribed by
commission rule. For purposes of compensation by the commission,
the appointed agent shall be credited with such sales at full
retail cost. - }
{ - (5) - } { + (4) + } The holder of a full on-premises
sales license may purchase distilled liquor only from { - a
retail sales agent of the commission - } { + a holder of an
off-premises distilled liquor license + } or from another person
licensed under this section who has purchased the distilled
liquor from { - a retail sales agent of the commission - }
{ + a holder of an off-premises distilled liquor license + }.
{ - (6) - } { + (5) + } The holder of a full on-premises
sales license may sell factory-sealed containers of wine to a
person who organizes a private gathering on the licensee's
premises if the wine was acquired as part of a larger purchase of
wine by the licensee for the purpose of the gathering and only
part of the larger purchase was consumed at the gathering. Wine
sold under this subsection may be sold only for an amount
adequate to compensate the licensee for the amounts paid by the
licensee for the wine.
{ - (7) - } { + (6) + } The holder of a full on-premises
sales license may sell malt beverages for consumption off the
licensed premises in securely covered containers provided by the
purchaser. Containers that hold beverages sold under this
subsection may not hold more than two gallons.
{ - (8) - } { + (7) + } A private club, including fraternal
and veterans organizations, may qualify for a full on-premises
sales license under this section only if the club meets minimum
membership, charter time and food service requirements set by
commission rule and the club is an association of persons,
whether incorporated or unincorporated, for the promotion of some
common object, not including associations organized for any
commercial or business purpose the object of which is money
profit, owning, hiring or leasing a building or space in a
building, of such extent and character as in the judgment of the
commission may be suitable and adequate for the reasonable and
comfortable use and accommodation of its members and their guests
and provided with suitable and adequate space and equipment,
implements and facilities, and employing a sufficient number of
servants or employees for serving food and meals for its members
and their guests; provided that no member or any officer, agent
or employee of the club is paid, or directly or indirectly
receives in the form of salary or other compensation, any profits
from the disposition or sale of alcoholic liquor to the club or
to the members of the club or its guests introduced by members,
beyond the amount of such salary as may be fixed and voted on at
annual meetings by the members, directors or other governing body
of the club, and that, in the judgment of the commission, shall
be reasonable and proper compensation for the services of such
member, officer, agent or employee.
SECTION 10. ORS 471.190 is amended to read:
471.190. (1) The holder of a temporary sales license may sell
at retail by the drink wine, malt beverages, cider and distilled
liquor. 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 - } { + a holder of an
off-premises distilled liquor license + }. The holder of a
temporary sales license must provide food service as required by
commission rule.
(2) 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 if,
under the rules of the commission applicable to the presence of
minor patrons on licensed premises, minor patrons would be
allowed to be anywhere on the licensed premises during the time
that the event is occurring.
(3) The holder of a temporary sales license may sell or raffle
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 a 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 Department of Human
Services are served.
(7) Employees and volunteers serving alcoholic beverages for a
nonprofit or charitable organization licensed under this section
are not required to have server permits nor 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.
SECTION 11. ORS 471.200 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, 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 - } { + holding an
off-premises distilled liquor license + }.
(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 12. 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.
(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 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 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 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 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 13. ORS 471.227 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
{ + Oregon Liquor Control + }Commission.
(c) To sell such wines or cider at retail directly to the
consumer for consumption on or off the licensed premises.
(d) To conduct the activities allowed under paragraph (a), (b)
or (c), or all, of this subsection at a second or third premises
as may be designated by the commission.
(e) To obtain a special events grower sales privilege license
which 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 grower sales privilege
license for a period not to exceed five days.
(2) For purposes of ORS 471.392 to 471.400, a grower sales
privilege licensee shall be considered a manufacturer.
(3) A person holding a winery license in another state is not
eligible for a license under this section.
(4) A person licensed under this section is not eligible for a
limited on-premises sales license { + , + } { - or - } an
off-premises sales license { + or an off-premises distilled
liquor license + }.
(5) 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) 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 14. ORS 471.230 is amended to read:
471.230. (1) A distillery license shall allow the holder
thereof to import, manufacture, distill, rectify, blend, denature
and store spirits of an alcoholic content greater than 17 percent
alcohol by weight, to sell the same to { - the Oregon Liquor
Control Commission - } { + the holders of wholesale liquor
licenses or off-premises distilled liquor licenses + }, and to
transport the same out of this state for sale outside this state.
{ - Distillery licensees shall be 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. - } No such licensee shall sell any
alcoholic beverage within this state except to the
{ - commission - } { + holders of wholesale liquor licenses or
off-premises distilled liquor licenses + } or as provided in
subsection (2) of this section. However, any agricultural
producer or association of agricultural producers or legal agents
thereof who manufacture and convert agricultural surpluses,
by-products and wastes into denatured ethyl and industrial
alcohol for use in the arts and industry shall not be required to
obtain a license from the commission.
(2) A distillery licensee that distills brandy or pot distilled
liquor may:
(a) Permit tastings of such brandy or pot distilled liquor by
visitors on the premises and on at least one other premises owned
or leased by the licensee. { - The licensee must purchase the
brandy or pot distilled liquor from the commission. - }
(b) { - Apply for appointment as a retail sales agent of the
commission for purposes of retailing - } { + Hold an
off-premises distilled liquor license that is limited to selling
at retail + } only brandy or pot distilled liquor that the
licensee distilled in Oregon at the two locations at which
tastings are permitted pursuant to paragraph (a) of this
subsection.
SECTION 15. ORS 471.235 is amended to read:
471.235. (1) A wholesale malt beverage and wine license shall
allow the importation, storage, transportation, wholesale sale
and distribution { + of wine, cider and malt beverages + } to
licensees of the Oregon Liquor Control Commission { - , - } and
the export of wine, cider and malt beverages { - , and the
importation and sale to the commission and the export of wine of
alcoholic content in excess of 21 percent alcohol by volume - } .
No such licensee shall sell any alcoholic liquor for consumption
upon the licensed premises. However, a wholesale malt beverage
and wine licensee may sell naturally fermented wine or cider in
quantities of not less than four gallons nor more than 55 gallons
at any one time to consumers for consumption not on the licensed
premises. Wholesale malt beverage and wine licensees may sell
malt beverages containing not more than eight percent alcohol by
volume in quantities not less than five gallons to any unlicensed
organization, lodge, picnic party or private gathering. Such malt
beverages shall not be sold by such unlicensed group. A wholesale
malt beverage and wine license shall permit the licensee also to
sell malt beverages at wholesale only, to persons holding
licenses authorizing them to resell such beverages at retail.
Employees of wholesale malt beverage and wine licensees may serve
sample tastings of malt beverages, cider and wine at alcoholic
beverage industry trade shows, seminars and conventions and at
alcoholic beverage industry sample tastings for employees of
retail licensees.
(2) Nothing in subsection (1) of this section shall be
considered to prohibit the transportation or wholesale sale or
distribution of malt beverage or wine by a wholesale malt
beverage and wine licensee to any alcoholic treatment center
licensed by the Department of Human Services.
(3) A wholesale malt beverage and wine licensee may impose an
additional handling fee on any wine sold to any retailer in this
state if the quantity of wine sold to the retailer is less than
the smallest multiple-package case available to be sold and the
handling fee is uniform for all licensees.
SECTION 16. ORS 471.289 is amended to read:
471.289. (1) No licensee of the Oregon Liquor Control
Commission shall manufacture, import into, or purchase in the
State of Oregon for resale therein any { - malt beverages,
cider or wine - } { + alcoholic beverage + } unless the
manufacturer of { - such malt beverages, cider or wine - }
{ + the alcoholic beverage + } has first obtained from the
commission a certificate of approval, except that with respect to
{ - malt beverages, cider or wine - } { + alcoholic
beverages + } manufactured outside the United States, the
certificate of approval may be obtained by the person importing
same into the United States. Such certificate of approval shall
be granted only to manufacturers or importers who shall have
entered into an agreement with the commission to furnish a report
to the commission, on or before the 20th day of each month,
showing the quantity of { - malt beverages, cider or wine - }
{ + alcoholic beverages + } delivered to each licensee of the
commission during the preceding calendar month, and to faithfully
comply with all laws of the State of Oregon pertaining to traffic
in { - malt beverages, cider or wine - } { + alcoholic
beverages + }. If any holder of such certificate, or any officer,
agent or employee of such holder, shall violate any term or
provision of such agreement, or submit any false or fictitious
report, the commission may, in its discretion, suspend or revoke
such certificate.
(2) The commission may grant special certificates of approval
to manufacturers and importers of { - malt beverages, cider or
wine - } { + alcoholic beverages + }. A special certificate of
approval has the effect of a certificate of approval granted
under subsection (1) of this section, but is valid only for a
period of 30 days.
SECTION 17. ORS 471.302 is amended to read:
471.302. (1) Upon receiving an application for an off-premises
sales license { + or an off-premises distilled liquor
license + }, the Oregon Liquor Control Commission may grant a
temporary letter of authority for a period not exceeding 90 days,
if it finds:
(a) The applicant is located in an area presently zoned for
commercial use and presents documentation of such zoning to the
commission.
(b) The applicant pays the fee prescribed by the commission for
a temporary letter of authority.
(2) A temporary letter of authority issued under this section
does not constitute a license for the purposes of ORS 183.310 to
183.550. The commission summarily and without prior
administrative proceedings may revoke a temporary letter of
authority at any time during the 90 days if:
(a) The commission finds that any of the grounds for refusing a
license under ORS 471.313 exist; or
(b) The city or county in which the applicant is located
provides evidence of reasonable grounds to the commission:
(A) That the temporary letter of authority should be revoked;
or
(B) That an off-premises sales license { + or an off-premises
distilled liquor license + } should not be issued.
SECTION 18. 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 which is to be operated under
the license, and such other pertinent information as the
commission may require. No license shall be granted or renewed
until the applicant has complied with the provisions of the
Liquor Control Act, the provisions of the Oregon Distilled Liquor
Control Act 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 183.310 to
183.550.
(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 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 fee shall be 40 percent
of the annual license fee. This subsection shall not apply to a
certificate of approval, a brewery-public house license or to any
license which 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 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 annual license fee is nonrefundable and shall be paid
by each applicant upon the granting or committing of a license.
The annual 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
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Certificate of Ap$r500l1,000
____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 Distilled Liquor
__
__
Wholesale Malt
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Beverage 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.
_______________________________________________________________
Special events winery
license may be
issued to a
winery licensee a$ 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
Off-Premises Distilled
Liquor $ 400 None
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Temporary Sales $ 25 for events
lasting five hours
or less and
$25 for each
additional period
of five hours
or less
____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
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
(6) The fee for a certificate of approval or special
certificate of approval granted under ORS 471.289 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 private club as described in ORS 471.175 (7), or held
by a nonprofit or charitable organization that is registered with
the state, is $200.
SECTION 19. ORS 471.327 is amended to read:
471.327. (1) The Oregon Liquor Control Commission, in
suspending any { + off-premises distilled liquor license, + }
brewery license, wholesale wine license, wholesale malt beverage
license, { + wholesale liquor license + } or certificate of
approval, may further impose against the licensee or the holder
of the certificate of approval a civil penalty not to exceed
$5,000, or, in its discretion, may impose such civil penalty
without suspending the license or the certificate of approval.
(2) Civil penalties under this section shall be imposed as
provided in ORS 183.090.
SECTION 20. ORS 471.341 is amended to read:
471.341. (1) An employee of an off-premises sales licensee { +
or an off-premises distilled liquor licensee + } who has been
found by the Oregon Liquor Control Commission to have sold
alcoholic beverages to a minor, or to have failed to properly
verify identification of a person who purchased alcoholic
beverages, must attend a clerk training course approved by the
commission as a condition of making sales of alcoholic beverages
to members of the public under an off-premises sales license { +
or off-premises distilled liquor license + }.
(2) The commission shall by rule establish times for employees
to complete a required clerk training course under this section.
An employee required to complete a clerk training course under
this section may continue to make sales of alcoholic beverages to
members of the public until taking such training, but may not
make any sales of alcoholic beverages after the expiration of the
time allowed by commission rule if the employee has not completed
the training before the expiration of that time.
(3) Except as provided in subsection (2) of this section, the
holder of an off-premises sales license { + or off-premises
distilled liquor license + } may not allow an employee who has
been found by the Oregon Liquor Control Commission to have sold
alcoholic beverages to a minor, or to have failed to properly
verify identification of a person who purchased alcoholic
beverages, to sell alcoholic beverages under the license unless
the employee completes a clerk training course as required by
this section.
(4) The Oregon Liquor Control Commission, as part of the
Alcohol Education Program established under ORS 471.541, shall
approve all clerk training courses offered for the purpose of
this section. The holder of an off-premises sales license { + or
off-premises distilled liquor license + } may establish a clerk
training course for employees of the licensee, but the course
must be approved by the commission to meet the requirements of
this section. Clerk training courses approved under this section
must address at least the following topics:
(a) The importance of not selling alcoholic beverages to minors
and visibly intoxicated persons.
(b) Guidelines for recognizing minors and visibly intoxicated
persons.
(c) Guidelines for checking and verifying identification, and
for recognizing false or altered identification.
(d) Recommended approaches for refusing sales of alcoholic
beverages to minors and visibly intoxicated persons.
(5) If an employee of an off-premises sales licensee { + or an
off-premises distilled liquor licensee + } is found to have sold
alcoholic beverages to a minor, or to have failed to properly
verify identification of a person who purchased alcoholic
beverages, the commission shall notify the licensee that the
employee must complete a clerk training course approved under
this section and may not sell alcoholic beverages to members of
the public after the time established by the commission unless
the employee completes the training within the time allowed. If
the off-premises sales licensee { + or the off-premises
distilled liquor licensee + } offers a clerk training course to
new employees, and the employee has previously completed that
course, the requirements of this section may be met by retaking
the clerk training course if the course has been approved by the
commission for the purposes of this section.
(6) Upon completion of a clerk training course by an employee
of an off-premises sales licensee { + or an off-premises
distilled liquor licensee + } pursuant to the requirements of
this section, the
{ - off-premises sales - } licensee that employs the person
must notify the commission in writing that the employee has
successfully completed the training. The notification must
include the name and address of the employee, the name of the
clerk training course attended by the employee, and the date or
dates on which the course was attended. The notification shall be
kept by the commission in the licensee's file.
(7) The commission shall assess and collect a fee not to exceed
$13 from each person required to attend a clerk training course
under this section. Amounts collected under this section shall be
used for the administrative expenses incurred by the commission
in the performance of the commission's duties under the Alcohol
Education Program.
(8) In addition to any other penalty provided for by law, the
commission may impose a civil penalty against any employee of an
off-premises sales licensee { + or an off-premises distilled
liquor licensee + } who sells alcoholic beverages to members of
the public and who is prohibited from making those sales under
this section. A civil penalty under this subsection may not
exceed $500. Civil penalties under this subsection shall be
imposed by the commission in the manner provided by ORS 183.090.
SECTION 21. ORS 471.346 is amended to read:
471.346. (1) The Oregon Liquor Control Commission shall by rule
develop uniform standards for minor decoy operations used to
investigate licensees { - and agents operating stores on behalf
of the commission under ORS 471.750 - } for violations of the
laws of this state prohibiting sales of alcoholic beverages to
minors. Uniform standards established by the commission under
this section apply to all investigations conducted by the
commission that use minor decoys. The commission shall encourage
all law enforcement agencies of this state to use the uniform
standards established under this section for minor decoy
operations conducted by the law enforcement agencies.
(2) To the greatest extent possible, the uniform standards
established by the commission under this section:
(a) Shall be the same for minor decoy operations conducted by
the commission and for minor decoy operations conducted by law
enforcement agencies of this state; and
(b) Shall provide for coordination between the commission and
law enforcement agencies of this state in conducting minor decoy
operations.
(3) The uniform standards established by the commission under
this section shall provide that minor decoy operations must be
conducted on either a random or a targeted basis in cities with
populations of 20,000 or more. Random minor decoy operations
shall cover a range of retail outlets. Targeted minor decoy
operations may be conducted for a single licensee { - or
agent - } , but may be used only if there is a documented
compliance problem with the specific licensee { - or agent - }
that is the target of the operation. For the purpose of
implementing standards for random minor decoy operations under
this subsection, the commission shall by rule adopt a methodology
that produces, to the greatest extent possible, an equal chance
that any licensee { - or agent - } will be subject to a minor
decoy operation.
(4) Except as provided in subsection (5) of this section, the
failure of the commission or of a law enforcement agency to
follow uniform standards established by the commission under this
section is not grounds for challenging any complaint, citation or
conviction for violation of the laws prohibiting the sale of
alcoholic beverages to minors.
(5) In determining whether to impose sanctions based on
multiple violations of the laws of this state prohibiting sales
of alcoholic beverages to minors, the commission may not consider
any complaint filed against a licensee for selling alcoholic
beverages to a minor, citation issued to a licensee for selling
alcoholic beverages to a minor or conviction of a licensee for
selling alcoholic beverages to a minor if the complaint, citation
or conviction arose out of a minor decoy operation that was not
conducted pursuant to the uniform standards established by the
commission under this section.
(6) Notwithstanding any other provision of this chapter, the
commission may not consider any sale of alcoholic beverages to a
minor that results from a minor decoy operation that is not
conducted in compliance with the standards established under this
section for the purpose of imposing any civil penalty against a
licensee, making a decision on the renewal, suspension or
cancellation of a license issued under this chapter or otherwise
sanctioning a licensee for the sale of alcoholic beverages to a
minor.
(7) The commission shall give notice of the uniform standards
established under this section to all law enforcement agencies of
this state that conduct minor decoy operations.
SECTION 22. ORS 471.392 is amended to read:
471.392. For the purposes of ORS 471.392 to 471.400:
(1) 'Manufacturer or wholesaler' means:
(a) A person holding a brewery license issued under ORS
471.220, a winery license issued under ORS 471.223, a grower
sales privilege license issued under ORS 471.227, a distillery
license issued under ORS 471.230, a wholesale malt beverage and
wine license issued under ORS 471.235 { + , a wholesale liquor
license issued under section 6 of this 2003 Act + } or a
warehouse license issued under ORS 471.242.
(b) Any manufacturer of alcoholic liquors whose products are
sold in the State of Oregon.
(2) 'Retail licensee' means the holder of a full or limited
on-premises sales license, an off-premises sales license { + , an
off-premises distilled liquor license + } or a temporary sales
license. 'Retail licensee' does not include a bona fide trade
association that represents retail licensees and that is open to
all persons licensed under at least one type of retail license.
SECTION 23. { + Section 24 of this 2003 Act is added to and
made a part of ORS 471.392 to 471.400. + }
SECTION 24. { + The prohibitions of ORS 471.392 to 471.400 do
not apply to sales by holders of off-premises distilled liquor
licenses to holders of full on-premises sales licenses. + }
SECTION 25. ORS 471.404 is amended to read:
471.404. (1) No alcoholic liquor shall be imported into this
state by any person not holding a brewery, winery, distillery or
wholesaler's license, except as follows:
{ - (a) Alcoholic liquor ordered by and en route to the
Oregon Liquor Control Commission. - }
{ - (b) - } { + (a) + } Wines for sacramental purposes
according to rules adopted by the { + Oregon Liquor Control + }
Commission.
{ - (c) - } { + (b) + } Alcoholic liquor that is in transit
on a common carrier to a destination outside Oregon.
{ - (d) - } { + (c) + } Alcoholic liquor coming into Oregon
on a common carrier according to orders placed by a licensed
brewery, winery or wholesaler.
{ - (e) - } { + (d) + } Imported alcoholic liquor pursuant
to a permit issued under subsection (2) of this section.
(2) The commission may require importers of alcoholic liquor to
secure a permit for each importation and may charge a reasonable
fee based on quantity and type for the permit.
SECTION 26. ORS 471.405 is amended to read:
471.405. (1) No person shall peddle or deliver alcoholic
beverages to or at any place, where, without a license, alcoholic
beverages are sold or offered for sale. No licensee shall sell or
offer for sale any alcoholic beverage in a manner, or to a
person, other than the license permits the licensee to sell.
(2) No person shall purchase, possess, transport or import,
except for sacramental purposes, an alcoholic beverage
{ - unless it is procured from or through the Oregon Liquor
Control Commission, except as provided otherwise in the Liquor
Control Act - } { + except as allowed under the provisions of
this chapter + }.
(3) No person not licensed under the Liquor Control Act shall
sell, solicit, take orders for or peddle alcoholic beverages.
(4) Notwithstanding the provisions of subsection (2) of this
section, an individual entering the state may have in possession
an amount not to exceed four liters (135.2 fluid ounces) of
distilled liquor, two cases of wine or cider (620 fluid ounces)
and two cases of malt beverages (576 fluid ounces). These
quantities of alcoholic beverages are exempt from fees collected
by the { + Oregon Liquor Control + } Commission.
(5) Upon conviction for unlawfully purchasing or importing
alcoholic beverages into this state, the person convicted shall
forfeit { - to the commission - } the alcoholic beverage so
purchased or imported. { - The commission shall thereupon seize
the forfeited beverage and it shall then become the commission's
property. - }
SECTION 27. ORS 471.480 is amended to read:
471.480. (1) Any employee 18 years of age or older of a person
who holds an off-premises sales license { + or off-premises
distilled liquor license + } from the Oregon Liquor Control
Commission may sell any alcoholic liquor authorized by such
license on the licensed premises.
(2) Any employee 18 years of age or older of a person who holds
a wholesale malt beverage and wine license { + or wholesale
liquor license + } from the Oregon Liquor Control Commission may
assist the licensee in the delivery of any alcoholic liquor
authorized by such license.
SECTION 28. ORS 471.510 is amended to read:
471.510. ORS 471.506 shall not prohibit the sale of pure
alcohol for scientific or manufacturing purposes, or of wines to
church officials for sacramental purposes, nor shall it prevent
any person residing in the county or city from ordering and
having delivered to the home of the person, for the personal use
of self and family, alcoholic liquors purchased from { - the
Oregon Liquor Control Commission or from - } persons duly
licensed to sell them under the Liquor Control Act.
SECTION 29. ORS 471.710 is amended to read:
471.710. (1) The Governor may remove any commissioner { + of
the Oregon Liquor Control Commission + } for inefficiency,
neglect of duty, or misconduct in office, giving to the
commissioner a copy of the charges made and an opportunity of
being publicly heard in person or by counsel, in the
commissioner's own defense, upon not less than 10 days' notice.
If such commissioner is removed, the Governor shall file in the
office of the Secretary of State a complete statement of all
charges made against such commissioner, the findings thereon, and
a complete record of the proceedings.
(2) No person, other than the member appointed in accordance
with ORS 471.705 who is designated from the food and alcoholic
beverage retail industry, is eligible to hold the office of
commissioner, or to be employed by the Oregon Liquor Control
Commission if:
(a) The person has any financial interest in any business
licensed by the commission or in any business which manufactures
alcoholic beverages sold in Oregon;
(b) Anyone in the person's household or immediate family has a
financial interest described in paragraph (a) of this subsection;
(c) Anyone in the person's household or immediate family is
employed by a business licensed by the commission, unless the
person is not in a position to take action or make decisions
which could affect the licensed business; or
(d) The person or anyone in the person's household or immediate
family has a business connection with any business licensed by
the commission, unless the person is not in a position to take
action or make decisions which could affect the licensed
business.
{ - (3) No liquor store agent appointed by the commission and
no person in the household or immediate family of a liquor store
agent shall have any financial interest in or business connection
with any person or business licensed as a distillery, dispenser
or agent licensed by the commission, or with any distillery whose
products are sold in Oregon. - }
{ - (4) - } { + (3) + } Nothing in this section prohibits a
person from having a financial interest resulting from
investments made by the Public Employees Retirement System or
through mutual funds, blind trusts or similar investments where
the person does not exercise control over the nature, amount or
timing of the investment.
{ - (5) - } { + (4) + } The commission by rule may
establish additional restrictions to prohibit potential conflicts
of interest. The commission by rule shall define 'immediate
family' and ' business connection' as used in this section.
SECTION 30. ORS 471.725 is amended to read:
471.725. The function, duties and powers of the Oregon Liquor
Control Commission include the following:
{ - (1) To buy, have in its possession, bottle, blend,
rectify, transport and sell, for present or future delivery, in
its own name, alcoholic liquor in the manner set forth in this
chapter. - }
{ - (2) - } { + (1) + } To purchase, acquire, rent, lease
or occupy any building, rooms, stores or land and acquire, own,
lease and sell equipment and fixtures required for its
operations.
{ - (3) - } { + (2) + } To lease or sublet to others
property which it acquires or owns and which is not immediately
required for its operations. However, no real property shall be
purchased without the consent and approval of the Governor.
{ - (4) - } { + (3) + } To borrow money, guarantee the
payment thereof and of the interest thereon, by the transfer or
pledge of goods or in any other manner required or permitted by
law.
{ - (5) - } { + (4) + } To issue, sign, indorse and accept
checks, promissory notes, bills of exchange and other negotiable
instruments.
{ - (6) - } { + (5) + } In the event the United States
Government provides any plan or method whereby the taxes upon
alcoholic liquors are collected at the source, to enter into any
and all contracts and comply with all regulations, even to the
extent of partially or wholly abrogating any statutory provisions
which might be in conflict with federal law or regulations, to
the end that the commission receives the portion thereof
allocated to this state, to be distributed as provided by
statute.
{ - (7) - } { + (6) + } To secure and pay for such policies
of insurance as may be necessary to adequately protect it from
loss by fire, theft or other casualty.
SECTION 31. ORS 471.039 is amended to read:
471.039. (1) Notwithstanding any provision of this chapter, the
Oregon Liquor Control Commission may not require the owners,
operators and employees of a cruise ship to have a license or
permit issued under the provisions of this chapter for the
purpose of possessing, transporting, storing, selling or serving
alcoholic beverages that are described in subsection
{ - (3) - } { + (2) + } of this section.
{ - (2) The provisions of ORS 471.740 do not apply to
alcoholic beverages that are described in subsection (3) of this
section. - }
{ - (3) - } { + (2) + } The provisions of this section
apply only to alcoholic beverages that are served aboard a cruise
ship and that are served solely for the purpose of onboard
consumption by a cruise ship's passengers, guests, officers and
employees.
{ - (4) - } { + (3) + } For the purposes of this section,
'cruise ship ' means a marine vessel used primarily for
nonfishing purposes that is licensed to carry at least 500
passengers, provides overnight accommodations for those
passengers and operates on the rivers or waterways within the
boundaries of the State of Oregon, including docking and dry
docking, fewer than 45 days during a calendar year.
SECTION 32. { + Section 33 of this 2003 Act is added to and
made a part of ORS chapter 473. + }
SECTION 33. { + (1) A tax is imposed upon the privilege of
engaging in business as a manufacturer or as an importing
distributor of distilled liquor at the rate of $__ per gallon.
(2) The rate of tax imposed by this section shall apply
proportionately to quantities in containers with a capacity of
less than one gallon.
(3) The tax imposed by this section shall be measured by the
volume of alcoholic beverages produced, purchased or received by
any manufacturer. If the alcoholic beverage remains unsold and in
the possession of the producer at the plant where it was
produced, no tax imposed or levied by this section is required to
be paid until the alcoholic beverage has become sufficiently aged
for marketing at retail, but this subsection may not be construed
so as to alter or affect any provision of this chapter relating
to tax liens or the filing of statements. + }
SECTION 34. ORS 430.338 is amended to read:
430.338. The purposes of ORS { - 430.306, - } 430.338 to
430.380 { - , 471.810, 473.030 and 473.050 - } are:
(1) To encourage local units of government to provide treatment
and rehabilitation services to persons suffering from alcoholism;
(2) To foster sound local planning to address the problem of
alcoholism and its social consequences;
(3) To promote a variety of treatment and rehabilitation
services for alcoholics designed to meet the therapeutic needs of
diverse segments of a community's population, recognizing that no
single approach to alcoholism treatment and rehabilitation is
suitable to every individual;
(4) To increase the independence and ability of individuals
recovering from alcoholism to lead satisfying and productive
lives, thereby reducing continued reliance upon therapeutic
support;
(5) To insure sufficient emphasis upon the unique treatment and
rehabilitation needs of minorities; and
(6) To stimulate adequate evaluation of alcoholism treatment
and rehabilitation programs.
SECTION 35. ORS 430.345 is amended to read:
430.345. Upon application therefor, the Department of Human
Services may make grants from funds specifically appropriated for
the purposes of carrying out ORS 430.345 to 430.380 to any
applicant for the establishment, operation and maintenance of
alcohol and drug abuse prevention, early intervention and
treatment services. When necessary, a portion of the appropriated
funds may be designated by the division for training and
technical assistance, or additional funds may be appropriated for
this purpose. Alcohol and drug abuse prevention, early
intervention and treatment services shall be approved if the
applicant establishes to the satisfaction of the department:
(1) The adequacy of the services to accomplish the goals of the
applicant and the program goals are consonant with the purposes
of ORS { - 430.306, - } 430.338 to 430.380 { - , 471.810,
473.030 and 473.050 - } and goals of the State Plan for Alcohol
Problems.
(2) The community need for the services as documented in the
annual community mental health plan.
(3) That an appropriate operating relationship exists, or will
exist with other community facilities able to assist in providing
alcohol and drug abuse prevention, early intervention and
treatment services, including nearby detoxification centers and
halfway houses.
(4) That the services comply with the rules adopted by the
department pursuant to ORS 430.357.
SECTION 36. ORS 430.366 is amended to read:
430.366. (1) Every proposal for alcohol and drug abuse
prevention, early intervention and treatment services received
from an applicant shall contain:
(a) A clear statement of the goals and objectives of the
program for the following fiscal year, including the number of
persons to be served and methods of measuring the success of
services rendered;
(b) A description of services to be funded; and
(c) A statement of the minorities to be served, if a minority
program.
(2) Thirty days before the end of each fiscal year, every
service funded under ORS { - 430.306, - } 430.338 to 430.380
{ - , 471.810, 473.030 and 473.050 - } shall file a concise
progress report with the Department of Human Services, including
a narrative statement of progress made in meeting its goals and
objectives for the year.
(3) The department shall assemble all progress reports received
in each biennium and transmit them to the succeeding session of
the Legislative Assembly.
SECTION 37. ORS 430.368 is amended to read:
430.368. (1) Any alcohol and drug abuse prevention, early
intervention and treatment service, including but not limited to
minority programs, aggrieved by any final action of an applicant
with regard to requesting funding for the program from the
Department of Human Services, may appeal the applicant's action
to the director of the department within 30 days of the action.
For the purposes of this section 'final action' means the
submission of the applicant's compiled funding requests to the
department. The director shall review, in consultation with the
Governor's Council on Alcohol and Drug Abuse Programs, all
appealed actions for compliance with the purposes and
requirements of ORS
{ - 430.306, - } 430.338 to 430.380 { - , 471.810, 473.030
and 473.050 - } , including but not limited to ORS 430.338 (5).
(2) The director shall act on all appeals within 60 days of
filing, or before the time of the department's decision on the
applicant's funding request, whichever is less. The director is
not required to follow procedures for hearing a contested case,
but shall set forth written findings justifying the action. The
decision of the director shall be final, and shall not be subject
to judicial review.
SECTION 38. ORS 430.385 is amended to read:
430.385. Nothing in ORS { - 430.347, 430.359, 430.380,
471.805, 471.810, 473.030 or this section - } { + 430.338 to
430.380 + } shall be construed as justification for a reduction
in General Fund support of local alcohol and drug abuse
prevention, early intervention and treatment services.
SECTION 39. ORS 473.040 is amended to read:
473.040. (1) If the laws of another state, territory or nation,
or the rules and regulations of any administrative body therein:
(a) Authorize or impose any tax, fee or charge upon the right
to transport or import into such state { - any beer, malt
liquor, cider or wine - } { + alcoholic beverages + }
manufactured in this state;
(b) Authorize or impose any different warehousing requirements
or higher warehousing fees or inspection fees upon
{ - any beer, malt liquor, cider or wine - } { + alcoholic
beverages + } manufactured in this state and imported into or
sold in such state, than are imposed upon { - beer, malt
liquor, cider and wine - } { + alcoholic beverages + }
manufactured in such state; or
(c) Impose any higher fee for the privilege of selling or
handling { - beer, malt liquor, cider or wine - }
{ + alcoholic beverages + } manufactured in this state than is
imposed for the privilege of handling or selling the same kind of
beverages manufactured within such state or any other state,
the Oregon Liquor Control Commission shall levy and collect
similar taxes, fees and charges from licensees or persons selling
in Oregon { - , beer, malt liquor, cider and wine - }
{ + alcoholic beverages + } manufactured in such other state,
territory or nation.
(2) The taxes, fees and charges authorized in this section are
in addition to the taxes, fees and charges authorized to be
assessed and collected by the commission under this chapter.
SECTION 40. ORS 473.050 is amended to read:
473.050. In computing any privilege tax imposed by ORS 473.030,
473.035 or 473.040 { + or section 33 of this 2003 Act + }:
(1) No { - malt beverage, cider or wine is - }
{ + alcoholic beverage is + } subject to tax more than once.
(2) No tax shall be levied, collected or imposed upon { - any
malt beverage, cider or wine sold to the Oregon Liquor Control
Commission or - } { + alcoholic beverages + } exported from the
state.
(3) No tax shall be levied, collected or imposed upon any malt
beverage given away and consumed on the licensed premises of a
brewery licensee, or sold to or by a voluntary nonincorporated
organization of army, air corps or navy personnel operating a
place for the sale of goods pursuant to regulations promulgated
by the proper authority of each such service.
(4) No tax shall be levied, collected or imposed upon { - any
malt beverage, cider or wine - } { + alcoholic beverages + }
determined by the commission to be unfit for human consumption or
unsalable.
(5) No tax shall be levied, collected or imposed upon the first
40,000 gallons, or 151,000 liters, of wine sold annually in
Oregon from a United States manufacturer of wines producing less
than 100,000 gallons, or 379,000 liters, annually.
SECTION 41. ORS 473.060 is amended to read:
473.060. (1) The privilege taxes imposed by ORS 473.030,
473.035 and 473.040 { + and section 33 of this 2003 Act + }
shall be paid to the Oregon Liquor Control Commission. The taxes
covering the periods for which statements are required to be
rendered by ORS 473.070 shall be paid before the time for filing
such statements expires or, as concerns wines, on or before the
20th day of the month after such wines have been withdrawn from
federal bond. If not so paid, a penalty of 10 percent and
interest at the rate of one percent a month or fraction of a
month shall be added and collected. The commission may refund any
tax payment imposed upon or paid in error by any licensee, and
may waive the collection or refund the payment of any tax imposed
and collected on { - wine, cider or malt - }
{ + alcoholic + } beverages subsequently exported from this
state, sold to a federal instrumentality or to the commission, or
determined by the commission to be unfit for human consumption or
unsalable.
(2) The commission may waive any interest or penalty assessed
to a manufacturer subject to the tax imposed under ORS 473.030,
473.035 or 473.040 { + or section 33 of this 2003 Act + } if the
commission, in its discretion, determines that the manufacturer
has made a good faith attempt to comply with the requirements of
this chapter.
(3) Except in the case of fraud, the commission may not assess
any interest or penalty on any tax due under ORS 473.030, 473.035
or 473.040 { + or section 33 of this 2003 Act + } following the
expiration of 36 months from the date on which was filed the
statement required under ORS 473.070 reporting the quantity of
{ - wine, cider or malt - } { + alcoholic + } beverages upon
which the tax is due.
(4) A manufacturer may appeal a tax imposed under ORS 473.030,
473.035 or 473.040 { + or section 33 of this 2003 Act + } in the
manner of a contested case under ORS 183.310 to 183.550.
SECTION 42. ORS 473.070 is amended to read:
473.070. On or before the 20th day of each month, every
manufacturer shall render to the Oregon Liquor Control Commission
a statement of the quantity of { - wine, cider and malt - }
{ + alcoholic + } beverages produced, purchased or received by
the manufacturer during the preceding calendar month { + and the
alcohol content by volume of the alcoholic beverages + }.
SECTION 43. ORS 473.080 is amended to read:
473.080. If any manufacturer fails, neglects or refuses to file
a statement required by ORS 473.070 or files a false statement,
the Oregon Liquor Control Commission shall estimate the amount of
{ - wine, cider and malt - } { + alcoholic + } beverages
produced, purchased or received by the manufacturer and assess
the privilege tax thereon. The manufacturer shall be estopped
from complaining of the amount so estimated.
SECTION 44. ORS 473.090 is amended to read:
473.090. The privilege tax required to be paid by ORS 473.030,
473.035 and 473.040 { + or section 33 of this 2003 Act + }
constitutes a lien upon, and has the effect of an execution duly
levied against, any and all property of the manufacturer,
attaching at the time the beverages subject to the tax were
produced, purchased or received, as the case may be, and
remaining until the tax is paid or the property sold in payment
thereof. The lien created by this section is paramount to all
private liens or encumbrances.
SECTION 45. ORS 473.100 is amended to read:
473.100. (1) Whenever any manufacturer is delinquent in the
payment of the privilege tax provided for in ORS 473.030, 473.035
and 473.040 { + or section 33 of this 2003 Act + }, the Oregon
Liquor Control Commission or its duly authorized representative
shall seize any property subject to the tax and sell, at public
auction, property so seized, or a sufficient portion thereof to
pay the privilege tax due, together with any penalties imposed
under ORS 473.060 for such delinquency and all costs incurred on
account of the seizure and sale.
(2) Written notice of the intended sale and the time and place
thereof, shall be given to such delinquent manufacturer and to
all persons appearing of record to have an interest in the
property, at least 10 days before the date set for the sale. The
notice shall be enclosed in an envelope addressed to the
manufacturer at the last-known residence or place of business of
the manufacturer in this state, if any; and in the case of any
person appearing of record to have an interest in such property,
addressed to such person at the last-known place of residence of
the person, if any. The envelope shall be deposited in the United
States mail, postage prepaid. In addition, notice shall be
published for at least 10 days before the date set for such sale,
in a newspaper of general circulation published in the county in
which the property seized is to be sold. If there is no newspaper
of general circulation in such county, the notice shall be posted
in three public places in such county for the 10-day period. The
notice shall contain a description of the property to be sold, a
statement of the amount of the privilege taxes, penalties and
costs, the name of the manufacturer and the further statement
that, unless the privilege taxes, penalties and costs are paid on
or before the time fixed in the notice for the sale, the
property, or so much thereof as may be necessary, will be sold in
accordance with law and the notice.
SECTION 46. ORS 473.140 is amended to read:
473.140. Every manufacturer shall keep a complete and accurate
record of all sales of { - wine, cider and malt - }
{ + alcoholic + } beverages, a complete and accurate record of
the number of gallons imported, produced, purchased,
manufactured, brewed or fermented, and the date of importation,
production, purchase, manufacturing, brewing or fermentation. The
records shall be in such form and contain such other information
as the Oregon Liquor Control Commission may prescribe. The
commission, by rule or regulation, may require the delivery of
statements by distributors to purchasers, with { - wine, cider
and malt - } { + alcoholic + } beverages, and prescribe the
matters to be contained therein. Such records and statements
shall be preserved by the distributor and the purchaser
respectively, for a period of two years, and shall be offered for
inspection at any time upon oral or written demand by the
commission or its duly authorized agents.
SECTION 47. ORS 473.150 is amended to read:
473.150. (1) The Oregon Liquor Control Commission may, at any
time, examine the books and records of any manufacturer of
{ - wine, cider or malt - } { + alcoholic + } beverages, and
may appoint such auditors, investigators and other employees as
it deems necessary to enforce its powers and perform its duties
under this section.
(2) Every manufacturer shall maintain and keep, within this
state for two years, all records, books and accounts required by
this chapter.
SECTION 48. ORS 473.160 is amended to read:
473.160. Every person transporting { - wine, cider or
malt - } { + alcoholic + } beverages within this state, whether
such transportation originates within or without this state,
shall keep a true and accurate record of { - wine, cider or
malt - } { + alcoholic + } beverages transported. The record
shall include ingredients { - which - } { + that + } may be
used in the manufacture, production, brewing or fermentation of
the { - wine, cider or malt - } { + alcoholic + } beverages,
showing such facts with relation to those beverages, their
ingredients and their transportation, as the Oregon Liquor
Control Commission may require. The records shall be open to
inspection by the representative of the commission at any time.
The commission may require from any such person sworn returns of
all or any part of the information shown by the records.
SECTION 49. ORS 473.170 is amended to read:
473.170. (1) No manufacturer shall:
(a) Fail to pay the privilege tax prescribed in ORS 473.030,
473.035 and 473.040 { + or section 33 of this 2003 Act + } when
it is due; or
(b) Falsify the statement required by ORS 473.070.
(2) No person shall:
(a) Refuse to permit the Oregon Liquor Control Commission or
any of its representatives to make an inspection of the books and
records authorized by ORS 473.140 to 473.160;
(b) Fail to keep books of account prescribed by the commission
or required by this chapter;
(c) Fail to preserve the books for two years for inspection of
the commission; or
(d) Alter, cancel or obliterate entries in the books of account
for the purpose of falsifying any record required by this chapter
to be made, maintained or preserved.
SECTION 50. ORS 471.805 is amended to read:
471.805. (1) Except as otherwise provided in ORS 471.810 (2)
{ + and subsection (2) of this section + }, all money collected
by the Oregon Liquor Control Commission under this chapter and
ORS chapter 473 and privilege taxes shall be remitted to the
State Treasurer who shall credit it to a suspense account of the
commission. Whenever the commission determines that moneys have
been received by it in excess of the amount legally due and
payable to the commission or that it has received money to which
it has no legal interest, or that any license fee or deposit is
properly refundable, the commission is authorized and directed to
refund such money by check drawn upon the State Treasurer and
charged to the suspense account of the commission. After
withholding refundable license fees and such sum, not to exceed
$250,000, as it considers necessary as a revolving fund for a
working cash balance for the purpose of paying travel expenses,
advances, other miscellaneous bills and extraordinary items which
are payable in cash immediately upon presentation, the commission
shall direct the State Treasurer to transfer the money remaining
in the suspense account to the Oregon Liquor Control Commission
Account in the General Fund.
{ + (2) All privilege taxes collected under section 33 of
this 2003 Act shall be deposited in the General Fund and shall be
available for general governmental purposes. + }
{ - (2) - } { + (3) + } All necessary expenditures of the
commission incurred in carrying out the purposes and provisions
required of the commission by law, including the salaries of its
employees, purchases made by the commission and such sums
necessary to reimburse the $250,000 revolving fund, shall be
audited and paid from the Oregon Liquor Control Commission
Account in the General Fund, upon warrants drawn by the Oregon
Department of Administrative Services, pursuant to claims duly
approved by the commission.
{ - (3) - } { + (4) + } Money produced by the operation of
this chapter and ORS chapter 473 necessary to pay such
expenditures is appropriated from the Oregon Liquor Control
Commission Account in the General Fund for such purposes.
SECTION 51. { + Section 33 of this 2003 Act and the amendments
to statutes by sections 34 to 50 of this 2003 Act apply to
privilege tax reporting periods beginning on or after the
operative date of this 2003 Act. + }
SECTION 52. ORS 279.015, as amended by section 5, chapter 3,
Oregon Laws 2002, is amended to read:
279.015. (1) Subject to the policies and provisions of ORS
279.005 and 279.007, all public contracts shall be based upon
competitive bids or proposals except:
(a) Contracts made with other public agencies or the federal
government.
(b) Contracts made with qualified nonprofit agencies providing
employment opportunities for disabled individuals.
(c) A public contract exempt under subsection (2) of this
section.
(d) A contract for products, services or supplies if the value
of the contract is less than $5,000.
(e) Insurance and service contracts as provided for under ORS
414.115, 414.125, 414.135 and 414.145.
(f) Contracts for repair, maintenance, improvement or
protection of property obtained by the Director of Veterans'
Affairs under ORS 407.135 and 407.145 (1).
(g) Contracts between public agencies utilizing an existing
solicitation or current requirement contract of one of the public
agencies that is party to the contract for which:
(A) The original contract met the requirements of this chapter;
(B) The contract allows other public agency usage of the
contract; and
(C) The original contracting public agency concurs.
(h) If a project is competitively bid and all responsive bids
from responsible bidders exceed the public agency's cost
estimate, the public agency, in accordance with rules adopted by
the public agency, may negotiate with the lowest responsive,
responsible bidder, prior to awarding the contract, in order to
solicit value engineering and other options to attempt to bring
the project within the agency's cost estimate. A negotiation with
the lowest responsive, responsible bidder pursuant to this
paragraph shall not result in the award of the contract to that
bidder if the scope of the project is significantly changed from
the original bid proposal. Notwithstanding any other provision of
law, the records of a bidder used in contract negotiation
pursuant to this paragraph are not subject to public inspection
until after the negotiated contract has been awarded or the
negotiation process has been terminated.
(2) Subject to subsection (6)(b) of this section, the Director
of the Oregon Department of Administrative Services, a local
contract review board or, for contracts described in ORS 279.712
{ - (2)(c) - } { + (2)(b) + }, the Director of Transportation
may exempt certain public contracts or classes of public
contracts from the competitive bidding requirements of subsection
(1) of this section upon approval of the following findings
submitted by the public contracting agency seeking the exemption:
(a) It is unlikely that such exemption will encourage
favoritism in the awarding of public contracts or substantially
diminish competition for public contracts; and
(b) The awarding of public contracts pursuant to the exemption
will result in substantial cost savings to the public contracting
agency or, if the contracts are for public improvements described
in ORS 279.712 { - (2)(c) - } { + (2)(b) + }, to the agency
or the public. In making such finding, the Director of the Oregon
Department of Administrative Services, the Director of
Transportation or the local contract review board may consider
the type, cost, amount of the contract, number of persons
available to bid and such other factors as may be deemed
appropriate.
(3)(a) Before final adoption of the findings required by
subsection (2) of this section exempting a contract for a public
improvement, or a class of contracts for public improvements
described in ORS 279.712 { - (2)(c) - } { + (2)(b) + }, from
the requirement of competitive bidding, a public agency shall
hold a public hearing.
(b) Notification of the public hearing shall be published in at
least one trade newspaper of general statewide circulation a
minimum of 14 days prior to the hearing.
(c) The notice shall state that the public hearing is for the
purpose of taking comments on the agency's draft findings for an
exemption from the competitive bidding requirement. At the time
of the notice, copies of the draft findings shall be made
available to the public. At the option of the public agency, the
notice may describe the process by which the findings are finally
adopted and may indicate the opportunity for any further public
comment.
(d) At the public hearing, the public agency shall offer an
opportunity for any interested party to appear and present
comment.
(e) If a public agency is required to act promptly due to
circumstances beyond its control that do not constitute an
emergency, notification of the public hearing can be published
simultaneously with the agency's solicitation of contractors for
the alternative public contracting method, as long as responses
to the solicitation are due at least five days after the meeting
and approval of the findings.
(4) A public contract also may be exempted from the
requirements of subsection (1) of this section if:
(a) Emergency conditions require prompt execution of the
contract;
(b) In case of sale of surplus property by a public agency, the
number, value and nature of the items to be sold make it probable
that the cost of conducting a sale by competitive bidding will be
such that a liquidation sale will result in substantially greater
net revenue to the public agency; or
(c)(A) The public contract is made between regularly organized
fire departments, as defined in ORS 652.050, for fire protection
equipment, as defined in ORS 476.005, and:
(i) The recipient regularly organized fire department makes a
written request for the fire protection equipment to the
transferor regularly organized fire department;
(ii) The fire protection equipment is surplus to or unusable by
the transferor;
(iii) The total fair market value of fire protection equipment
received by the recipient does not exceed $50,000 per calendar
year; and
(iv) The transferor holds a public hearing, with notice given
as outlined in subsection (3)(b) of this section, and finds that
the public contract is in the public's interest.
(B) As used in subparagraph (A) of this paragraph, 'public
contract' includes a sale at no cost.
(5) The Director of the Oregon Department of Administrative
Services or the local contract review board shall adopt rules
allowing the governing body of a public agency and the officer of
a public agency for contracts under $50,000 to declare that an
emergency exists and establishing procedures for determining when
the conditions in subsection (4)(a) of this section are present.
The rules shall prescribe that if an emergency is declared, any
contract awarded under this subsection and subsection (4)(a) of
this section must be awarded within 60 days following declaration
of the emergency, unless the director or board grants an
extension.
(6) In granting exemptions pursuant to subsection (2)(a) and
(b) of this section, the Director of the Oregon Department of
Administrative Services, the Director of Transportation or the
local contract review board shall:
(a) Where appropriate, direct the use of alternate contracting
and purchasing practices that take account of market realities
and modern or innovative contracting and purchasing methods,
which are also consistent with the public policy of encouraging
competition.
(b) Require and approve or disapprove written findings by the
public contracting agency that support the awarding of a
particular public contract or a class of public contracts,
without the competitive requirements of subsection (1) of this
section. The findings must show that the exemption of a contract
or class of contracts complies with the requirements of
subsection (2)(a) and (b) of this section.
(7) A written agreement under ORS chapter 190 is not necessary
under subsection (1)(g) of this section if the arrangement is
between or among units of local government.
SECTION 53. ORS 279.019, as amended by section 6, chapter 3,
Oregon Laws 2002, is amended to read:
279.019. (1) Exemptions granted by the Director of the Oregon
Department of Administrative Services pursuant to ORS 279.015 (2)
or 279.017 (2) constitute rulemaking and not contested cases
under ORS 183.310 to 183.550. However, an exemption granted with
regard to a specific contract by the Director of the Oregon
Department of Administrative Services, or an exemption granted by
the Director of Transportation with regard to a specific contract
or class of contracts for public improvements described in ORS
279.712
{ - (2)(c) - } { + (2)(b) + }, shall be granted by order,
which order shall set forth findings supporting the decision to
grant or deny the request for exemption. Such order shall be
reviewable pursuant to ORS 183.484 and shall not constitute a
contested case order. Jurisdiction for review of the order shall
be with the Circuit Court of Marion County. The court may award
costs and attorney fees to the prevailing party.
(2) Any person except the public contracting agency or anyone
representing it may bring a petition for a declaratory judgment
to test the validity of any rule adopted by the Director of the
Oregon Department of Administrative Services under ORS 279.015
and 279.017 in the manner provided in ORS 183.400.
(3) Any person except the public contracting agency or anyone
representing it may bring an action for writ of review pursuant
to ORS chapter 34 to test the validity of any exemption granted
pursuant to ORS 279.015, 279.017 and 279.055 by a board.
SECTION 54. ORS 279.103, as amended by section 7, chapter 3,
Oregon Laws 2002, is amended to read:
279.103. (1) Upon completion of and final payment for any
public improvement contract, or class of contracts for public
improvements described in ORS 279.712 { - (2)(c) - } { +
(2)(b) + }, in excess of $100,000 for which the public agency did
not use the competitive bidding process, the public agency shall
prepare and deliver to the Director of the Oregon Department of
Administrative Services, the local contract review board or, for
a class of contracts for public improvements described in ORS
279.712
{ - (2)(c) - } { + (2)(b) + }, the Director of Transportation
an evaluation of the public improvement project or the class of
contracts.
(2) The evaluation shall include but not be limited to the
following matters:
(a) The actual project cost as compared with original project
estimates.
(b) The amount of any guaranteed maximum price.
(c) The number of project change orders issued by the public
agency.
(d) A narrative description of successes and failures during
the design, engineering and construction of the project.
(e) An objective assessment of the use of the alternative
contracting process as compared to the findings required by ORS
279.015.
(3) Evaluations required by this section shall be made
available for public inspection.
(4) The evaluations required by this section must be completed
within 30 days of the date that the public agency accepts:
(a) The public improvement project; or
(b) The last public improvement project if the project falls
within a class of contracts for public improvements described in
ORS 279.712 { - (2)(c) - } { + (2)(b) + }.
SECTION 55. ORS 471.105 is amended to read:
471.105. { - Before being qualified to purchase alcoholic
liquor from the Oregon Liquor Control Commission, - } A person
must be over 21 years of age { + to purchase alcoholic
beverages + }.
SECTION 56. ORS 471.184 is amended to read:
471.184. (1) The holder of a full or limited on-premises sales
license may cater a temporary event at a location other than the
licensed premises if the event is not open to the general public.
Catering of an event under this subsection must be pursuant to a
contract with a client. The contract must provide that the
licensee will furnish food and beverage services for no more than
100 patrons. The licensee must serve food as required by rules of
the commission. The licensee may cater events under this
subsection without giving advance notice to the Oregon Liquor
Control Commission if, before the event occurs, the commission
gives written approval to the licensee authorizing catering
pursuant to this subsection. Events catered under the provisions
of this subsection must meet all requirements for enclosure of
premises that may be imposed by the commission for the purposes
of this section. Notwithstanding ORS 471.175 (3) and
{ - (7) - } { + (6) + } and 471.178 (2) to (4), the licensee
may not permit patrons of the event to remove any alcoholic
beverages from the premises of the event.
(2) In addition to catered events under subsection (1) of this
section, the commission may by rule allow the exercise of the
privileges of a full or limited on-premises sales license at
temporary events held at locations other than the licensed
premises. The commission may:
(a) Require notice to the commission before the exercise of
license privileges at temporary events under this subsection;
(b) Require that written approval by the commission be obtained
before the exercise of license privileges at temporary events
under this subsection;
(c) Establish eligibility criteria for the exercise of license
privileges at temporary events under this subsection; and
(d) Establish fees reasonably calculated to cover
administrative expenses incurred by the commission in
administering this subsection.
SECTION 57. { + ORS 471.740, 471.745, 471.750, 471.752 and
471.754 are repealed. + }
SECTION 58. { + (1) Except as provided in subsection (2) of
this section, this 2003 Act becomes operative July 1, 2004.
(2) On or before July 1, 2004, the Oregon Liquor Control
Commission shall take all steps necessary to have off-premises
distilled liquor licenses under section 3 of this 2003 Act, and
wholesale liquor licenses under section 6 of this 2003 Act,
issued and in effect on July 1, 2004. + }
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