74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 2677
Sponsored by Representative SCHAUFLER
CHAPTER ................
AN ACT
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 Oregon:
SECTION 1. { + Section 2 of this 2007 Act is added to and made
a part of ORS chapter 471. + }
SECTION 2. { + (1) The Oregon Liquor Control Commission may
issue a wine self-distribution permit to a United States
manufacturer of wine or cider. The commission may issue a wine
self-distribution permit only to a manufacturer of wine or cider
that:
(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
Enrolled House Bill 2677 (HB 2677-B) Page 1
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
Enrolled House Bill 2677 (HB 2677-B) Page 2
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:
_________________________________________________________________
____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$r500l1,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Winery 250 1,000
Distillery 100 None
Wholesale Malt
Enrolled House Bill 2677 (HB 2677-B) Page 3
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Beverage and Wine 275 1,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Warehouse 100 1,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Special events winery
license may be
issued to a
winery licensee a$ 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
____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.
Enrolled House Bill 2677 (HB 2677-B) Page 4
_______________________________________________________________
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 (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
Enrolled House Bill 2677 (HB 2677-B) Page 5
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 ___, 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:
Enrolled House Bill 2677 (HB 2677-B) Page 6
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 Oregon.
(d) Alcoholic liquor coming into Oregon on a common carrier
according to orders placed by a licensed brewery, winery or
wholesaler.
(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.
----------
Passed by House May 17, 2007
Repassed by House June 12, 2007
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 11, 2007
...........................................................
President of Senate
Enrolled House Bill 2677 (HB 2677-B) Page 7
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled House Bill 2677 (HB 2677-B) Page 8