69th OREGON LEGISLATIVE ASSEMBLY--1997 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 2731
House Bill 3386
Sponsored by Representative MONTGOMERY; Representative CARTER (at
the request of Oregon Grocery Industry Association)
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.
Allows manufacturer or wholesaler of wine or malt beverages to
extend credit to retailer of alcoholic beverages. Requires that
manufacturer that elects to extend credit must provide for 15-day
period. Requires that wholesaler that elects to extend credit
must provide for 15-day period, or for period equal to credit
period extended by manufacturer to wholesaler. Removes authority
of Oregon Liquor Control Commission to enforce prohibitions
relating to extension of credit.
A BILL FOR AN ACT
Relating to alcoholic beverages; creating new provisions; and
amending ORS 471.253, 471.398, 471.400 and 471.485.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 4 of this Act are added to and
made a part of ORS chapter 471. + }
SECTION 2. { + (1) Notwithstanding ORS 471.392 to 471.400,
credit may be extended by a manufacturer or wholesaler to a
retail licensee in the manner provided by this section.
(2) Credit may be extended under this section by a manufacturer
or wholesaler to a retail licensee for malt beverages or wine
sold or delivered to a retail licensee. A manufacturer or
wholesaler that elects to extend credit under this section must
establish reasonable criteria for determining when credit will be
extended to a retail licensee. If a manufacturer elects to extend
credit to a retail licensee, credit must be extended for a period
of 15 days. If a wholesaler elects to extend credit to a retail
licensee, credit must be extended for a period of 15 days, or for
a period equal to the credit period extended by the manufacturer
to the wholesaler for alcoholic beverages supplied by the
manufacturer to the wholesaler. A manufacturer or wholesaler that
elects to extend credit must extend credit to all retail
licensees that do business with the manufacturer or wholesaler
and that meet the credit criteria established by the manufacturer
or wholesaler.
(3) For the purposes of this section:
(a) 'Manufacturer' means the holder of a brewery license issued
under ORS 471.220, a winery license issued under ORS 471.223, a
grower sales privilege license issued under ORS 471.227, a
warehouse license issued under ORS 471.242, a bottler license
issued under ORS 471.245, a salesperson license issued under ORS
471.287, a winery salesperson license issued under ORS 471.287 or
any other producer of alcoholic beverages whose products are sold
in the State of Oregon.
(b) 'Retail licensee' has that meaning given in ORS 471.392.
(c) 'Wholesaler' means the holder of a wholesale malt beverage
and wine license issued under ORS 471.235. + }
SECTION 3. { + Notwithstanding any other provision of this
chapter or ORS chapter 472, the Oregon Liquor Control Commission
is not responsible for the enforcement of the prohibitions of
this chapter relating to extension of credit by a manufacturer or
wholesaler to a retail licensee. The commission may not engage in
enforcement proceedings, including denial, cancellation or
suspension of a license, to prevent the extension of credit by a
manufacturer or wholesaler to a retail licensee or the acceptance
of credit by a retail licensee from a manufacturer or
wholesaler. + }
SECTION 4. { + No provision of this chapter or ORS chapter 472
prohibits a manufacturer or wholesaler of alcoholic beverages
from holding an interest in, or extending financial assistance
to, another manufacturer or wholesaler of alcoholic
beverages. + }
SECTION 5. ORS 471.398 is amended to read:
471.398. Except as { + otherwise + } provided { - in ORS
471.400 - } { + by law + }, a person holding a retail license
may not accept directly or indirectly from a manufacturer or
wholesaler, and a manufacturer or wholesaler may not provide
directly or indirectly to the retail licensee, any of the
following:
(1) Any substantial gratuities;
(2) Any finances, money, credit, discounts or rebates;
(3) Any fixtures, furniture or furnishings;
(4) Any equipment other than advertising and point of sale
material and other items of nominal value supplied to all retail
licensees without discrimination; or
(5) Any services other than the inspection of equipment, the
inspection and rotation of stock, the building of displays and
other services of nominal value incidental to merchandising in
the usual course of business furnished to all retail licensees
without discrimination.
SECTION 6. ORS 471.400 is amended to read:
471.400. (1) Notwithstanding ORS 471.394 and 471.398, a
manufacturer or wholesaler may lease or furnish picnic pumps,
cold plates, tubs, refrigerated trailers, refrigerated vans and
refrigerated draft systems to a retail licensee if the equipment
is leased or furnished for a special event, if a reasonable
rental or service fee is charged for the equipment and if the
period that the equipment is leased or furnished does not exceed
10 days.
(2) Notwithstanding ORS 471.394 and 471.398, the Oregon Liquor
Control Commission may specify by rule the manner and
circumstances under which a manufacturer or wholesaler may
provide products and services to a nonprofit special licensee.
(3)(a) Notwithstanding ORS 471.394 and 471.398, the commission
shall allow the sale of nonalcoholic products in the manner in
which the nonalcoholic product is sold by a manufacturer or
wholesaler not licensed by the commission. The commission may
limit merchandising practices involving nonalcoholic products if
the commission finds that the limitations are necessary to
prevent abuses of ORS 471.394 and 471.398 by the industry as a
whole.
(b) Any fixtures, equipment or furnishings provided by a
manufacturer or wholesaler in furtherance of the sale of
nonalcoholic products may not be used by the retail licensee to
store, service, display, advertise, furnish or sell, or aid in
the sale of, alcoholic products regulated by the commission. All
such fixtures, equipment or furnishings must be identified by the
retail licensee as being furnished by a licensed manufacturer or
wholesaler.
{ + (4) Notwithstanding ORS 471.394 and 471.398, credit may
be extended by a manufacturer or wholesaler to a retail licensee
in the manner provided by section 2 of this 1997 Act. + }
SECTION 7. ORS 471.485 is amended to read:
471.485. { + Except as allowed in section 2 of this 1997
Act, + } no wholesale licensee or agent or employee thereof shall
sell or deliver, nor shall any retail licensee purchase or
receive any malt beverages or wine for currency on delivery, but
such malt beverages or wine shall be paid for prior to delivery
thereof, by electronic fund transfer initiated on or before the
date of delivery, or by valid check, order, negotiable instrument
or voucher payable on the date of delivery. The wholesale
licensee may accept cash at the time of delivery if such
acceptance does not create or increase the licensee's, or the
agents' or employees' of the licensee, exposure to or risk of
being victimized by criminal activity.
SECTION 8. ORS 471.253 is amended to read:
471.253. (1) A brewery-public house license shall allow the
licensee:
(a) To manufacture annually 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 containing not more than 21 percent
alcohol by weight 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) 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
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.
(3) A brewery-public house licensee, or any person having an
interest in the licensee, is a retail licensee for the purposes
of ORS 471.398 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 { + ,
section 2 of this 1997 Act + } 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.
(4) Notwithstanding subsection (2) 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.
(5) Notwithstanding subsection (2) of this section, a
brewery-public house licensee is eligible for a retail malt
beverage license and for special one-day retail beer and wine
licenses.
(6)(a) Notwithstanding subsection (2) of this section, and
except as provided by paragraph (b) of this subsection, a
brewery-public house licensee, or any person having an interest
in the licensee, may also hold a dispenser license issued under
ORS chapter 472. If a person holds both a brewery-public house
license and a dispenser 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 dispenser 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.
(c) The commission may not issue a dispenser 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 distillery, unless the distillery produces only
brandy and produces no more than 2,500 gallons of brandy
annually.
(7) 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 if the
licensee produces only brandy, and produces no more than 2,500
gallons of brandy annually. No provision of this chapter prevents
a brewery-public house licensee from becoming a retail sales
agent of the commission for the purpose of selling distilled
liquors.
(8) Notwithstanding subsection (2) of this section, the
commission by rule may authorize a brewery-public house licensee
to co-produce special events with other manufacturers.
(9)(a) Notwithstanding subsection (2) 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
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.
(10) For purposes of ORS chapter 473, a brewery-public house
licensee shall be considered to be a manufacturer.
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