70th OREGON LEGISLATIVE ASSEMBLY--1999 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 1919
House Bill 3145
Sponsored by Representative KRUSE (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 package store licensee of alcoholic beverages.
Requires that manufacturer or wholesaler that elects to extend
credit must provide credit for 15-day period. Allows civil action
to enforce provisions relating to extension of credit.
A BILL FOR AN ACT
Relating to alcoholic beverages; creating new provisions; and
amending ORS 471.253, 471.400 and 471.485.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 and 3 of this 1999 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 in the manner provided by this section by
a manufacturer or wholesaler to the holder of a package store
license issued under ORS 471.260.
(2) Credit may be extended under this section by a manufacturer
or wholesaler to a package store licensee for malt beverages or
wine sold or delivered to a package store 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 package store licensee. If a
manufacturer or wholesaler elects to extend credit to a package
store licensee, credit must be extended for a period of 15 days.
A manufacturer or wholesaler that elects to extend credit must
extend credit to all package store 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) 'Wholesaler' means the holder of a wholesale malt beverage
and wine license issued under ORS 471.235. + }
SECTION 3. { + (1) An action for injunctive relief may be
brought in circuit court by any manufacturer, wholesaler or
package store licensee for the purpose of enforcing the
provisions of this chapter relating to extension of credit by a
manufacturer or wholesaler to a package store licensee. The
action may be brought against a manufacturer or wholesaler that
provides credit and against a package store licensee that accepts
credit.
(2) If a court issues an injunction in an action under the
provisions of this section, the court shall promptly notify the
Oregon Liquor Control Commission of the court's order. The
commission may then cancel or suspend the license of a person
against whom the injunction is issued or impose such other
penalty as may be authorized under the provisions of this
chapter. Except as provided in this section, the commission may
decline to investigate or pursue complaints of violations of the
provisions of this chapter relating to extensions of credit by a
manufacturer or wholesaler to a package store licensee.
(3) The court shall award reasonable attorney fees to a
prevailing party in an action under the provisions of this
section.
(4) An action under this section must be brought within one
year after the date on which credit is extended in violation of
the provisions of this chapter relating to extensions of credit
by a manufacturer or wholesaler to a package store licensee. + }
SECTION 4. 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 package store
licensee in the manner provided by section 2 of this 1999
Act. + }
SECTION 5. ORS 471.485 is amended to read:
471.485. { + Except as allowed in section 2 of this 1999
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 6. 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 1999 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
pot distilled liquor and produces no more than 12,000 gallons of
pot distilled liquor 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 pot distilled liquor, and produces no more
than 12,000 gallons of pot distilled liquor 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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