75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
House Bill 2250
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Oregon Liquor Control Commission)
CHAPTER ................
AN ACT
Relating to liquor licensees; amending ORS 471.200, 471.223,
471.230 and 471.710.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 471.200 is amended to read:
471.200. (1) A brewery-public house license allows the
licensee:
(a) To manufacture 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 1,000 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
Enrolled House Bill 2250 (HB 2250-INTRO) Page 1
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.
(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. No provision
of this chapter prevents a brewery-public house licensee
{ - from becoming a retail sales agent of the commission - }
{ + that also holds a distillery license from being appointed
by the commission as the distillery's retail outlet agent + } for
the purpose of selling distilled liquors { + under ORS
471.230 + }.
(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
Enrolled House Bill 2250 (HB 2250-INTRO) Page 2
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 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
paragraphs (c) and (d) 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 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 471.282.
(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
Enrolled House Bill 2250 (HB 2250-INTRO) Page 3
other winery licensees also produce wine or cider on those
premises.
SECTION 3. 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 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 or as provided in 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 may:
(a) Permit tastings of the distilled liquor manufactured by the
distillery { + licensee + }. The tastings may be conducted on
the
{ - premises and on at least - } { + licensed premises of the
distillery, on + } one other premises owned or leased by the
licensee { + , or both + }. The licensee must purchase the
distilled liquor from the commission.
(b) Apply for appointment { - as a retail sales agent of the
commission - } { + by the commission as a distillery retail
outlet agent + } for purposes of retailing only distilled liquor
that the licensee
{ - distilled in Oregon at the two locations at which tastings
are permitted pursuant to - } { + manufactured in Oregon at
locations where tastings are permitted under + } paragraph (a) of
this subsection.
(3) Notwithstanding ORS 471.392 to 471.400, a distillery
licensee may also hold a full on-premises sales license for a
location at the licensed premises of the distillery and a full
on-premises sales license for one other location. All distilled
spirits sold under the full on-premises sales license must be
purchased from the commission.
SECTION 4. ORS 471.710 is amended to read:
471.710. (1) The Governor may remove any commissioner 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;
Enrolled House Bill 2250 (HB 2250-INTRO) Page 4
(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. - }
{ + (3)(a) A retail sales agent appointed by the commission,
or a person in the household or immediate family of a retail
sales agent, may not have any financial interest in or business
connection with:
(A) A person or business that is licensed as a distillery;
(B) A person or business that holds a full on-premises sales
license; or
(C) A distillery whose products are sold in Oregon.
(b) Paragraph (a) of this subsection does not apply to a
distillery retail outlet agent appointed by the commission under
ORS 471.230. + }
(4) 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) 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.
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Passed by House February 23, 2009
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate March 18, 2009
...........................................................
President of Senate
Enrolled House Bill 2250 (HB 2250-INTRO) Page 5
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled House Bill 2250 (HB 2250-INTRO) Page 6