76th OREGON LEGISLATIVE ASSEMBLY--2011 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 1069
 
                         Senate Bill 444
 
Sponsored by Senator PROZANSKI; Senators BATES, BEYER, BONAMICI,
  BOQUIST, BURDICK, DEVLIN, DINGFELDER, EDWARDS, HASS, JOHNSON,
  MONNES ANDERSON, NELSON, ROSENBAUM, STARR, WHITSETT, WINTERS,
  Representatives BARNHART, BERGER, BEYER, GELSER, HOLVEY, HOYLE,
  HUNT, NATHANSON, ROBLAN (at the request of Oregon Home Brewers
  Alliance, former Senator Rick Metsger, former Senator Bill
  Morrisette) (Presession filed.)
 
 
                             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.
 
  Expands exemption of homemade beer, wine and fermented fruit
juice from Liquor Control Act. Allows storage at licensed
premises of malt beverages and wine made on premises by
unlicensed person and storage of homemade beer, wine and
fermented fruit juice.  Allows licensee to conduct organized
judging, tasting, exhibition, contest or competition of
unlicensed malt beverages and wine or homemade beer, wine or
fermented fruit juice at licensed premises subject to Oregon
Liquor Control Commission restrictions.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to alcoholic beverages; creating new provisions;
  amending ORS 471.403 and 471.440; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 and 3 of this 2011 Act are added to
and made a part of ORS chapter 471. + }
  SECTION 2.  { + (1) As used in this section and section 3 of
this 2011 Act:
  (a)(A) 'Financial consideration,' except as provided in
subparagraph (B) of this paragraph, means value that is given or
received directly or indirectly through sales, barter, trade,
fees, charges, dues, contributions or donations.
  (B) 'Financial consideration' does not mean any of the
following:
  (i) A tax deduction or credit for donating beer, wine or
fermented fruit juice to a nonprofit organization.
  (ii) An event admission charge or club or organization dues, if
the amount of the admission charge or dues is independent of the
amount of alcoholic beverages to be provided or consumed at the
event or through club or organization activities.
  (iii) A prize awarded at a state or county fair or other
organized judging, tasting, exhibition, contest or competition at
which consumption of a submitted beer, wine or fermented fruit
 
juice is without charge and only by the entrants, submitters,
judges, exhibitors, contestants or competitors.
  (iv) Homemade beers, wines or fermented fruit juices made by
other persons.
  (v) Beer, wine or fermented fruit juice ingredients.
  (b) 'Homemade' means made at a private residence for
noncommercial purposes by a person living at the residence.
  (c) 'Noncommercial' means not dependent or conditioned upon the
provision or receipt of financial consideration.
  (2) Except as provided in subsection (3) of this section, the
Liquor Control Act does not apply to the following:
  (a) The making of homemade beer, wine or fermented fruit juice,
if the total of beer, wine and fermented fruit juice produced
during a calendar year does not exceed:
  (A) One hundred gallons in a household having one person who is
21 years of age or older; or
  (B) Two hundred gallons in a household having two or more
persons who are 21 years of age or older.
  (b) The keeping, storage or transportation of homemade beer,
wine or fermented fruit juice.
  (c) The possession of mash, wort or wash, for the purpose of
making homemade beer, wine or fermented fruit juice.
  (d) Except as provided in section 3 of this 2011 Act, the
noncommercial consumption at any location of homemade beer, wine
or fermented fruit juice.
  (3) Subsection (2) of this section does not exempt any person
from ORS 471.410, 471.430 or 471.432. + }
  SECTION 3.  { + (1) In addition to any other privilege granted
to a licensee under this chapter, a licensee may conduct an
organized judging, tasting, exhibition, contest or competition of
malt beverages and wines produced under ORS 471.403 (2) and (3)
or homemade beers, wines and fermented fruit juices at the
premises described in a full or limited on-premises sales
license, off-premises sales license, brewery-public house
license, brewery license, winery license or warehouse license of
the licensee.  However, the Oregon Liquor Control Commission may
restrict the portion of the licensed premises that may be used
for the judging, tasting, exhibition, contest or competition and
may restrict or prohibit sales of alcoholic beverages on the
portion of the premises that is being used for conducting the
judging, tasting, exhibition, contest or competition.
  (2) In addition to any other privilege granted to a licensee
under this chapter, a licensee may allow malt beverages and wines
produced under ORS 471.403 (2) and (3) or homemade beers, wines
and fermented fruit juices to be stored at the premises described
in a full or limited on-premises sales license, off-premises
sales license, brewery-public house license, brewery license,
winery license or warehouse license of the licensee. The malt
beverages or wines and the homemade beers, wines or fermented
fruit juices must be clearly identified by owner and kept
separate from the alcoholic beverage stock of the licensee.
  (3) A licensee may not acquire any ownership interest in malt
beverages and wines produced under ORS 471.403 (2) and (3) or
homemade beers, wines or fermented fruit juices stored under this
section. However, this subsection does not prohibit a licensee
from using malt beverages and wines produced under ORS 471.403
(2) and (3) or homemade beers, wines or fermented fruit juices in
conducting an organized judging, tasting, exhibition, contest or
competition of the malt beverages and wines or homemade beers,
wines or fermented fruit juices if the malt beverages and wines
or the homemade beers, wines or fermented fruit juices are stored
with the licensee for that purpose. + }
  SECTION 4. ORS 471.403 is amended to read:
  471.403. (1)   { - No person shall - }   { + Except as provided
in this section, a person may not + } brew, ferment, distill,
blend or rectify any alcoholic liquor unless licensed so to do by
the Oregon Liquor Control Commission.   { - However, the Liquor
Control Act does not apply to the making or keeping of naturally
fermented wines and fruit juices or beer in the home, for home
consumption and not for sale. - }
  (2)   { - Notwithstanding subsection (1) of this section, - }
The holder of a brewery-public house license or a brewery license
may allow patrons to brew malt beverages not to exceed 14 percent
alcoholic content by volume if the brewing is conducted under the
direct supervision of the licensee or employees of the licensee.
Malt beverages produced under this subsection may not be sold by
the patron   { - or consumed on the licensed premises - } . { +
Malt beverages produced under this subsection may not be consumed
on the licensed premises except when submitted as an entry in an
organized judging, tasting, exhibition, contest or competition
authorized under section 3 of this 2011 Act. + }
  (3)   { - Notwithstanding subsection (1) of this section, - }
The holder of a winery license may allow patrons to make wine if
the winemaking is conducted under the direct supervision of the
licensee or employees of the licensee. Wine produced under this
subsection may not be sold by the patron   { - or consumed on the
licensed premises - } . { +  Wine produced under this subsection
may not be consumed on the licensed premises except when
submitted as an entry in an organized judging, tasting,
exhibition, contest or competition authorized under section 3 of
this 2011 Act.
  (4) A person may make homemade beer, wine and fermented fruit
juice as authorized under section 2 of this 2011 Act. A person
may provide assistance to another in making the homemade beer,
wine or fermented fruit juice, if the person does not receive
financial consideration as defined in section 2 of this 2011 Act
for providing the assistance. + }
  SECTION 5. ORS 471.440 is amended to read:
  471.440. (1)   { - No - }   { + Except as provided in ORS
471.403 and section 2 of this 2011 Act,  + }mash, wort or wash
fit for distillation or for the manufacture of spirituous
alcoholic liquors  { - , shall - }  { +  may not + } be made,
fermented or possessed within this state by any person
 { - who - }  { +  that + } does not at the time own a distillery
license under the Liquor Control Act.   { - This section does not
prevent the possession of mash for the purpose of manufacturing
wine, cider or beer for home consumption as provided for in ORS
471.403. - }
  (2)   { - No distillery shall - }  { +  A distillery may
not + } be set up or operated in this state for the purpose of
manufacturing alcoholic liquor for beverage purposes except by a
person duly licensed under the Liquor Control Act to operate a
distillery. Any device or process   { - which - }  { +  that + }
separates alcoholic spirits from any fermented substance shall be
regarded as a distillery. A distillery is set up   { - when - }
 { +  if + } the still is in position over a furnace, or is
connected with a boiler, so that heat may be applied, although
the worm or worm tank is not in position.
  (3) The finding of any mash, wort, wash or distillery in any
house, on any premises or within any enclosure, is prima facie
evidence that it was made and fermented by, or set up by, and the
property of, the person who is in possession of   { - such - }
 { +  the + } house, premises or enclosure.
  SECTION 6.  { + Sections 2 and 3 of this 2011 Act and the
amendments to ORS 471.403 and 471.440 by sections 4 and 5 of this
2011 Act apply to malt beverages, beers, wines and fermented
fruit juices made before, on or after the effective date of this
2011 Act. + }
  SECTION 7.  { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
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