68th OREGON LEGISLATIVE ASSEMBLY--1995 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 1344

                         House Bill 3205

Sponsored by Representative BROWN; Representatives ROBERTS,
  TARNO, Senator MILLER (at the request of McMenamins Pubs &
  Breweries)


                             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.

  Authorizes person holding brewery-public house license issued
by Oregon Liquor Control Commission to also hold distillery
license if the licensee produces no more than ___ gallons of
distilled liquors annually.
  Authorizes distillery that produces no more than ___ gallons of
distilled liquors annually to provide tastings of all distilled
liquors produced by distillery. Allows appointment of distillery
licensee who produces no more than ___ gallons of distilled
liquors annually as retail sales agent of commission solely for
purpose of selling distilled liquors produced by licensee.

                        A BILL FOR AN ACT
Relating to distilled liquors; creating new provisions; and
  amending ORS 471.230 and 471.253.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. 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 no more
than 200,000 barrels of malt beverages, as defined in ORS
473.010;
  (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 not eligible for a brewery license
authorized by ORS 471.220 or a wholesale malt beverage and wine
license authorized by ORS 471.235.
  (3) 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.
  (4) A brewery-public house licensee is eligible for a retail
malt beverage license and for special one-day retail beer
licenses.
  (5)(a) 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's license issued under
ORS chapter 472. If a person holds both a brewery-public house
license and a dispenser's license, nothing in
  { - ORS 471.455, 471.460, 471.465 or 471.470 - }   { + this
chapter + } shall prevent the sale by the licensee of both
distilled liquor, as defined in ORS 472.010, and malt beverages
manufactured under the brewery-public house license.
  (b) The commission may not issue a dispenser's 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  { + that produces more than ___
gallons of distilled liquor annually + }, 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.
   { +  (6) 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 no more than ___ gallons of distilled liquors
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. + }
    { - (6) - }   { + (7) + } For purposes of ORS chapter 473, a
brewery-public house licensee shall be considered to be a
manufacturer.
  SECTION 2. 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
of 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
liquor and spirits for blending and manufacturing purposes upon
such terms and conditions as the commission may provide. No such
licensee shall sell any alcoholic liquor within this state except
to the commission or as provided in subsection (2) of 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   { - which distills brandy - }
 { + that produces less than ___ gallons of distilled liquors
annually + } may:
  (a) Permit tastings of   { - such brandy - }   { + distilled
liquors produced on the licensed premises + } by visitors on the
premises and on at least one other premises owned or leased by
the licensee.  The licensee must purchase the   { - brandy - }
 { + distilled liquors + } from the commission.
  (b) Apply for appointment as a retail sales agent of the
commission for purposes of retailing   { - only brandy which the
licensee distilled in Oregon - }   { + distilled liquor + } at
the two locations at which tastings are permitted pursuant to
paragraph (a) of this subsection.  { + A licensee appointed as a
retail sales agent under this paragraph may only make retail
sales of distilled liquors distilled by the licensee in
Oregon. + }
  SECTION 3.  { + The amendments to ORS 471.230 and 471.253 by
sections 1 and 2 of this Act apply to all distillery and
brewery-public house licenses, whether issued before, on or after
the effective date of this Act. + }
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