Chapter 651
AN ACT
HB 2677
Relating to wine self-distribution permits;
creating new provisions; and amending ORS 471.155, 471.311, 471.404 and
473.150.
Be It Enacted by the People of
the State of
SECTION 1. Section 2 of this 2007 Act is added to and
made a part of ORS chapter 471.
SECTION 2. (1) The
(a) Holds a license
issued by another state that authorizes the manufacture of wine or cider; and
(b) Holds a certificate
of approval issued under ORS 471.289.
(2) The holder of a wine
self-distribution permit may sell at wholesale and transport wine or cider that
the manufacturer produces directly to the commission, or to retail licensees in
the manner provided by this section. A wine self-distribution permit allows the
holder to sell wine or cider that the holder produces only to retail licensees
who hold a valid endorsement issued by the commission authorizing receipt of
wine or cider from the holder of a wine self-distribution permit.
(3) In addition to the
information required by ORS 471.311 for licenses, an applicant for a wine
self-distribution permit shall provide the commission with a copy of the
license held by the applicant and any information required by the commission to
establish that the license held by the applicant authorizes the manufacture of
wine or cider.
(4) A person holding a
wine self-distribution permit is responsible for paying all taxes imposed under
ORS chapter 473, and for complying with all reporting requirements imposed by
ORS chapter 473, for all wine and cider sold and transported to retail
licensees in this state. The commission may revoke, or refuse to issue, a wine
self-distribution permit if the holder of a permit fails to pay taxes or make
reports as required by ORS chapter 473.
(5) A retail licensee
may receive wine or cider from the holder of a wine self-distribution permit
only if the licensee has received prior authorization from the commission.
Prior authorization under this subsection must be made by an endorsement to the
license for the premises where the wine or cider will be received. The
commission may not charge or collect a fee for an endorsement under this
subsection.
(6)(a) Except as
provided in paragraph (b) of this subsection, a retail licensee that receives
wine or cider from holders of wine self-distribution permits must make a
monthly report to the commission, using a form prescribed by the commission,
listing the amount of all wine or cider received from permit holders in the
previous month, and the names of the permit holders from whom the wine or cider
was received. Retail licensees shall retain such purchase records for products
received from permit holders as may be required by the commission.
(b) The holder of a full
or limited on-premises sales license is not required to file a report under
this subsection for any month in which the licensee receives two or fewer cases
of wine from holders of wine self-distribution permits.
(7) A manufacturer that
is not licensed by the commission may sell and transport wine or cider directly
to a retail licensee, and a retail licensee may receive wine or cider directly
from a manufacturer that is not licensed by the commission, only if the
manufacturer holds a wine self-distribution permit issued under this section.
(8) The holder of a wine
self-distribution permit consents to the jurisdiction of the commission and the
courts of this state for the purpose of enforcing the provisions of this
chapter, ORS chapter 473 and any related laws or rules.
(9) The holder of a wine
self-distribution permit must post a bond or other security, as described in
ORS 471.155.
(10) The commission may
revoke, or refuse to issue, a wine self-distribution permit if the holder of a
permit fails to comply with any provision of this section.
SECTION 2a. Section 2b of this 2007 Act is added to and
made a part of ORS chapter 471.
SECTION 2b. (1) Wine or cider may be shipped or
transported by a licensee or permit holder described in subsection (2) of this
section only by employees of the licensee or permit holder, or by a common
carrier using a commission-approved delivery plan. The holder of a wine
self-distribution permit that uses a common carrier to ship or transport wine
or cider shall take reasonable steps to ensure that the wine or cider is sold
and transported only to licensees that are authorized to receive the wine or
cider under section 2 of this 2007 Act.
(2) The provisions of
this section apply to persons holding wine self-distribution permits and the
holders of winery licenses, grower sales privilege
licenses, wholesale malt beverage and wine licenses and warehouse licenses
issued by the commission.
SECTION 3. ORS 471.311 is amended to read:
471.311. (1) Any person
desiring a license or renewal of a license under this chapter shall make
application to the Oregon Liquor Control Commission upon forms to be furnished
by the commission showing the name and address of the applicant, location of
the place of business that is to be operated under the license, and such other
pertinent information as the commission may require. No 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 chapter 183.
(3) Subject to
subsection (4) of this section, the commission shall assess a nonrefundable fee
for processing a renewal application for any license authorized by this chapter
only if the renewal application is received by the commission less than 20 days
before expiration of the license. If the renewal application is received prior
to expiration of the license but less than 20 days prior to expiration, this
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 does not apply to a certificate of approval, a brewery-public
house license or any license that is issued for a period of less than 30 days.
(4) The commission may
waive the fee imposed under subsection (3) of this section if it 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. Subject to ORS 471.155 and 473.065, the annual license
fee and the minimum bond required of each class of license under this chapter
are as follows:
______________________________________________________________________________
Minimum
License Fee Bond
Brewery, including
Certificate of Approval $ 500 $ 1,000
Winery 250 1,000
Distillery 100 None
Wholesale Malt
Beverage and Wine 275 1,000
Warehouse 100 1,000
Special events winery
license
may be
issued
to a
winery
licensee at $ 10
per day
Brewery-Public House,
including
Certificate
of
Approval $ 250 $ 1,000
Limited On-Premises Sales $ 200 None
Off-Premises Sales $ 100 None
Temporary Sales $
25 for events
lasting five hours
or less and
$25
for each
additional period
of five hours
or less
Grower sales privilege
license $ 250 $ 1,000
Special events grower
sales
privilege
license $ 10
per day
______________________________________________________________________________
(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 (8), or held by a nonprofit or charitable organization that is
registered with the state, is $200.
(9) The annual fee for
a wine self-distribution permit is $100, and the minimum bond is $1,000.
SECTION 4. 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 a
holder of a wine self-distribution permit or of any manufacturer of wine,
cider or malt beverages, and may appoint [such]
auditors, investigators and other employees [as it deems] that the commission considers necessary to
enforce its powers and perform its duties under this section.
(2) Every holder of a
wine self-distribution permit and every manufacturer shall maintain and
keep[, within this state] for two
years[,] all records, books and
accounts required by this chapter and shall provide copies of those records,
books and accounts to the commission when requested by the commission.
SECTION 5. ORS 471.155 is amended to read:
471.155. (1) The Oregon
Liquor Control Commission shall provide for the licensing of persons and cities
within the state to manufacture, distribute, take orders for and sell spirits,
wines, beer and other alcoholic liquors. Except as provided in subsection (2)
of this section, [every licensee or
applicant for a] the holder of a brewery, winery, wholesale,
warehouse, grower sales privilege or brewery-public house license or the
holder of a wine self-distribution permit shall give, and at all times
maintain on file with the commission, a bond with a corporate surety authorized
to transact business in this state. The bond shall be in form and amount
acceptable to the commission, shall be payable to the commission and
conditioned that [such] the
licensee or [applicant] permittee
will pay any fine imposed for any violation of any provision of the Liquor
Control Act and that the licensee or [applicant]
permittee will pay all license fees, privilege taxes[,] and taxes on alcoholic
liquors, together with penalties and interest thereon, levied or assessed
against the licensee or [applicant]
permittee under statutes relating to the importation, manufacture,
distribution, sale or taxation of alcoholic liquors in the State of Oregon.
(2) Under such
conditions as the commission may prescribe, [a] the holder of a brewery, winery, wholesale, warehouse,
grower sales privilege or brewery-public house [licensee or applicant] license or the holder of a wine
self-distribution permit may deposit, in lieu of the bond required
by subsection (1) of this section, the equivalent value in cash, bank letters
of credit recognized by the State Treasurer or negotiable securities of a
character approved by the State Treasurer. The deposit is to be made in a bank
or trust company for the benefit of the commission. Interest on deposited funds
or securities shall accrue to the depositor.
SECTION 5a. If House Bill 2486 becomes law, section 5
of this 2007 Act (amending ORS 471.155) is repealed and ORS 471.155, as amended
by section 1, chapter 637, Oregon Laws 2007 (Enrolled House Bill 2486), is
amended to read:
471.155. (1) The Oregon
Liquor Control Commission shall provide for the licensing of persons and cities
within the state to manufacture, distribute, take orders for and sell spirits,
wines, beer and other alcoholic liquors. Except as provided in subsection (2)
of this section, [every licensee or
applicant for a] the holder of a brewery, winery, wholesale,
warehouse, grower sales privilege or brewery-public house license or the
holder of a wine self-distribution permit shall give, and at all times
maintain on file with the commission, a bond with a corporate surety authorized
to transact business in this state. The bond shall be in form and amount
acceptable to the commission, shall be payable to the commission and
conditioned that [such] the
licensee or [applicant] permittee
will pay any fine imposed for any violation of any provision of the Liquor
Control Act and that the licensee or [applicant]
permittee will pay all license fees, privilege taxes, taxes imposed under
ORS 473.045 and other taxes on alcoholic liquors, together with penalties and
interest thereon, levied or assessed against the licensee or [applicant] permittee under
statutes relating to the importation, manufacture, distribution, sale or
taxation of alcoholic liquors in the State of Oregon.
(2) Under such
conditions as the commission may prescribe, [a] the holder of a brewery, winery, wholesale, warehouse,
grower sales privilege or brewery-public house [licensee or applicant] license or the holder of a wine
self-distribution permit may deposit, in lieu of the bond required
by subsection (1) of this section, the equivalent value in cash, bank letters
of credit recognized by the State Treasurer or negotiable securities of a
character approved by the State Treasurer. The deposit is to be made in a bank
or trust company for the benefit of the commission. Interest on deposited funds
or securities shall accrue to the depositor.
SECTION 6. 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) Wines for
sacramental purposes according to rules adopted by the commission.
(c) Alcoholic liquor
that is in transit on a common carrier to a destination outside
(d) Alcoholic liquor
coming into
(e) Imported alcoholic
liquor pursuant to a permit issued under subsection (2) of this section.
(f) Wine or cider that
is sold and transported by the holder of a wine self-distribution permit to a
retail licensee that has the endorsement described in section 2 (5) of this
2007 Act.
(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.
Approved by the Governor June 27, 2007
Filed in the office of Secretary of State June 27, 2007
Effective date January 1, 2008
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