Chapter 854
AN ACT
HB 2171
Relating to alcoholic beverages; creating new provisions; amending ORS
471.223, 471.229, 471.404, 471.810, 473.050, 473.060, 473.090, 473.100 and
473.170; repealing ORS 473.040 and 473.057; and prescribing an effective date.
Be It Enacted by the People of
the State of
SECTION 1.
ORS 471.229 is amended to read:
471.229. [(1) Any resident of this state who is at
least 21 years of age is entitled to receive not more than two cases of wine or
cider per month for personal use, containing not more than nine liters per
case, from another state without payment of additional state tax, fees or
charges if the state from which the wine or cider is sent allows its residents
to receive wine or cider from this state without imposition of state tax, fees
or charges. For privilege tax purposes, receipt of a shipment into this state
under this subsection shall not be considered to constitute a sale in this
state. No person who transports wine or cider pursuant to this section shall
deliver more than two cases of wine or cider to the same address at one time.
No person who receives wine or cider pursuant to this section shall resell any
of the wine or cider.]
[(2) A licensee who holds an off-premises sales license or any other
license that authorizes retail sale of wine or cider for consumption off the
licensed premises may ship not more than two cases of wine or cider, containing
not more than nine liters per case, per shipment, for personal use and not for
resale, directly to a resident of another state if the state to which the wine
or cider is sent allows residents of this state to receive wine or cider sent
from that state without payment of additional state tax, fees or charges. The
sale shall be considered to have occurred in this state.]
[(3) The shipping container of any wine or cider sent into or out of
this state under this section must be clearly labeled to indicate that the
container contains alcoholic beverages and cannot be delivered to a person who
is not at least 21 years of age or to a person who is visibly intoxicated.]
[(4) For purposes of ORS 471.305, an order for wine or cider that is
received in writing is a bona fide order.]
[(5) Sales authorized by this section are sales made by a retailer who is
not authorized to sell at wholesale or sales by a winery of wine or cider
produced or bottled by the winery.]
[(6) Out-of-state wine or cider suppliers that supply wine or cider
under subsection (1) of this section must obtain a license from the
[(7) Any person who knowingly or negligently delivers wine or cider
under the provisions of this section to a person under 21 years of age, or who
knowingly or negligently delivers wine or cider under the provisions of this
section to a visibly intoxicated person, violates ORS 471.410, whether or not
the person is licensed or appointed under the provisions of this chapter.]
(1) Notwithstanding
any other provision of this chapter, a person may sell and ship wine or cider
directly to a resident of
(a) A person that holds
a license issued by this state or another state that authorizes the manufacture
of wine or cider;
(b) A person that holds
a license issued by this state or another state that authorizes the sale of
wine or cider produced only from grapes or other fruit grown under the control
of the person;
(c) A person that holds
a license authorizing the sale of wine or cider at retail; or
(d) A nonprofit trade
association that holds a temporary sales license under ORS 471.190 and that has
a membership primarily composed of persons holding winery licenses issued under
ORS 471.223 or grower sales privilege licenses issued under ORS 471.227.
(2) A person may apply
for a direct shipper permit by filing an application with the commission. The
application must be made in such form as may be prescribed by the commission.
The person must include in the application the number of the license issued to
the person by the commission, or a true copy of the license issued to the
person by another state. If the application is based on a license issued by
another state, or the application is by a nonprofit trade association described
in subsection (1)(d) of this section, the person or association must pay a $50
registration fee and maintain a bond or other security described in ORS 471.155
in the minimum amount of $1,000.
(3) Sales and shipments
under a direct shipper permit:
(a) May be made only to
a person who is at least 21 years of age;
(b) May be made only for
personal use and not for the purpose of resale; and
(c) May not exceed two
cases, containing not more than nine liters per case, to any resident per
month.
(4) Sales and shipments
under a direct shipper permit must be made directly to a resident of this state
in containers that are conspicuously labeled with the words: “CONTAINS ALCOHOL:
SIGNATURE OF PERSON AGE 21 YEARS OR OLDER REQUIRED FOR DELIVERY.”
(5) A person holding a
direct shipper permit must take all actions necessary to ensure that a carrier
used by the permit holder does not deliver any wine or cider unless the
carrier:
(a) Obtains the
signature of the recipient of the wine or cider upon delivery;
(b) Verifies by
inspecting government-issued photo identification that the recipient is at
least 21 years of age; and
(c) Determines that the
recipient is not visibly intoxicated at the time of delivery.
(6)(a) A person holding
a direct shipper permit must report to the commission all shipments of wine or
cider made to
(b) A person holding a
direct shipper permit must allow the commission to audit the permit holder’s
records upon request and shall make those records available to the commission
in this state.
(c) A person holding a
direct shipper permit consents to the jurisdiction of the commission and the
courts of this state for the purpose of enforcing the provisions of this
section and any related laws or rules.
(7)(a) A person holding
a direct shipper permit must timely pay to the commission all taxes imposed
under ORS chapter 473 on wine and cider sold and shipped under the permit. For
the purpose of the privilege tax imposed under ORS chapter 473, all wine or
cider sold and shipped pursuant to a direct shipper permit is sold in this
state.
(b) A person holding a
direct shipper permit based on a license issued by another state must timely
pay to the commission all taxes imposed under ORS chapter 473 on all wine or
cider sold and shipped directly to Oregon residents under the permit. The
permit holder, not the purchaser, is responsible for the tax.
(8) A direct shipper
permit must be renewed annually. If the person holds the permit based on an
annual license issued by another state, the permit may be renewed by paying a
$50 renewal fee and providing the commission with a true copy of a current
license issued to the person by the other state. If the person holds the permit
based on an annual license issued by this state, the permit may be renewed at
the same time that the license is renewed.
(9) The commission may
refuse to issue or may suspend or revoke a direct shipper permit if the permit
holder fails to comply with the provisions of this section. A person may sell
and ship wine or cider under a direct shipper permit only for as long as the
person has the license issued by this state or another state that authorizes
the person to hold a direct shipper permit.
(10) Any person who
knowingly or negligently delivers wine or cider under the provisions of this
section to a person under 21 years of age, or who knowingly or negligently
delivers wine or cider under the provisions of this section to a visibly
intoxicated person, violates ORS 471.410.
(11) A person may not
make sales and shipments of wine or cider directly to
SECTION 2.
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 that shall entitle the holder to conduct the activities
allowed under paragraph (c) of this subsection at a designated location other
than the one set forth in the winery license for a period not to exceed five
days.
(2) In order to hold a
winery license the licensee shall principally produce wine or cider in this
state.
(3) On and after July 1,
1990, a winery licensee is not authorized to import wine or cider in bottles
unless the brand of wine or cider is owned by the licensee.
[(4) A winery licensee is authorized to ship not more than two cases of
wine or cider per month for personal use and not for resale, containing not
more than nine liters per case to any resident of this state who is at least 21
years of age. The shipping container of any wine or cider shipped under this
subsection must be clearly labeled to indicate that the container contains
alcoholic beverages and cannot be delivered to a person who is not at least 21
years of age or to a person who is visibly intoxicated. Orders for shipments
under this subsection may be taken by phone, mail or any other form of
communication.]
(4) A winery licensee
may sell and ship wine or cider directly to a resident of this state only if
the licensee has a direct shipper permit issued under ORS 471.229.
(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 3.
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
shipped directly to a resident of this state under a direct shipper permit
issued pursuant to ORS 471.229.
(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 4.
ORS 471.810 is amended to read:
471.810. (1) At the end
of each month, the Oregon Liquor Control Commission shall certify the amount of
moneys available for distribution in the Oregon Liquor Control Commission
Account, and after withholding such moneys as it may deem necessary to pay its
outstanding obligations shall within 35 days of the month for which a
distribution is made direct the State Treasurer to pay the amounts due, upon
warrants drawn by the Oregon Department of Administrative Services, as follows:
(a) Fifty-six percent,
or the amount remaining after the distribution under subsection (4) of this
section, credited to the General Fund available for general governmental
purposes wherein it shall be considered as revenue during the quarter
immediately preceding receipt;
(b) Twenty percent to
the cities of the state in such shares as the population of each city bears to
the population of the cities of the state, as determined by the State Board of
Higher Education last preceding such apportionment, under ORS 190.510 to
190.610;
(c) Ten percent to
counties in such shares as their respective populations bear to the total
population of the state, as estimated from time to time by the State Board of
Higher Education; and
(d) Fourteen percent to
the cities of the state to be distributed as provided in ORS 221.770 and this
section.
(2) The commission shall
direct the Oregon Department of Administrative Services to transfer 50 percent
of the revenues from the taxes imposed by ORS 473.030[,] and 473.035 [and
473.040] to the Mental Health Alcoholism and Drug Services Account in the
General Fund to be paid monthly as provided in ORS 430.380.
(3) If the amount of
revenues received from the taxes imposed by ORS 473.030 for the preceding month
were reduced as a result of credits claimed under ORS 473.047, the commission
shall compute the difference between the amounts paid or transferred as
described in subsections (1)(b), (c) and (d) and (2) of this section and the
amounts that would have been paid or transferred under subsections (1)(b), (c)
and (d) and (2) of this section if no credits had been claimed. The commission
shall direct the Oregon Department of Administrative Services to pay or
transfer amounts equal to the differences computed for subsections (1)(b), (c)
and (d) and (2) of this section from the General Fund to the recipients or
accounts described in subsections (1)(b), (c) and (d) and (2) of this section.
(4) Notwithstanding
subsection (1) of this section, no city or county shall receive for any fiscal
year an amount less than the amount distributed to the city or county in
accordance with ORS 471.350 (1965 Replacement Part), 471.810, 473.190 and
473.210 (1965 Replacement Part) during the 1966-1967 fiscal year unless the
city or county had a decline in population as shown by its census. If the
population declined, the per capita distribution to the city or county shall be
not less than the total per capita distribution during the 1966-1967 fiscal
year. Any additional funds required to maintain the level of distribution under
this subsection shall be paid from funds credited under subsection (1)(a) of
this section.
SECTION 5.
ORS 473.050 is amended to read:
473.050. In computing
any privilege tax imposed by ORS 473.030[,]
or 473.035 [or 473.040]:
(1) No malt beverage,
cider or wine 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 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 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
SECTION 6.
ORS 473.060 is amended to read:
473.060. (1) The
privilege taxes imposed by ORS 473.030[,]
and 473.035 [and 473.040]
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 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[,] or
473.035 [or 473.040] 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[,] or
473.035 [or 473.040] 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 beverages upon
which the tax is due.
(4) A manufacturer may
appeal a tax imposed under ORS 473.030[,]
or 473.035 [or 473.040] in the
manner of a contested case under ORS chapter 183.
SECTION 7.
ORS 473.090 is amended to read:
473.090. The privilege
tax required to be paid by ORS 473.030[,]
and 473.035 [and 473.040]
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 8.
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[,] and 473.035
[and 473.040], 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
SECTION 9.
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[,]
and 473.035 [and 473.040] 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 10. ORS
473.040 and 473.057 are repealed.
SECTION 11. (1)
Except as provided in subsection (2) of this section, the amendments to ORS
471.223, 471.229, 471.404, 471.810, 473.050, 473.060, 473.090, 473.100 and
473.170 by sections 1 to 9 of this 2007 Act and the repeal of ORS 473.040 and
473.057 by section 10 of this 2007 Act become operative January 1, 2008.
(2) Prior to January 1,
2008, the Oregon Liquor Control Commission may adopt rules and take all other
measures determined by the commission to be necessary for implementation of the
amendments to ORS 471.223, 471.229, 471.404, 471.810, 473.050, 473.060,
473.090, 473.100 and 473.170 by sections 1 to 9 of this 2007 Act and the repeal
of ORS 473.040 and 473.057 by section 10 of this 2007 Act on January 1, 2008.
SECTION 12. This
2007 Act takes effect on the 91st day after the date on which the regular
session of the Seventy-fourth Legislative Assembly adjourns sine die.
Approved by the Governor July 31, 2007
Filed in the office of Secretary of State July 31, 2007
Effective date September 27, 2007
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