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 2612

                         House Bill 3217

Sponsored by COMMITTEE ON GENERAL GOVERNMENT AND REGULATORY
  REFORM


                             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.

  Eliminates Oregon Liquor Control Commission's authority to sell
distilled liquor in sealed containers. Creates retail liquor
store license. Prohibits retail sale of distilled liquor by any
person except holder of retail liquor store license or dispenser
license. Creates wholesale liquor license. Prohibits importation,
storage, transportation, wholesale sale or distribution of
distilled liquors without wholesale liquor license. Establishes
conditions and fees for retail liquor store and wholesale liquor
licenses.
  Requires manufacturers and importers of distilled liquors to
acquire certificates of approval for sale of product in state.
  Transfers investigation powers and duties of commission to
Oregon State Police. Transfers tax enforcement functions of
commission to Department of Revenue.
  Decreases size of commission from five members to three.
  Eliminates existing malt beverage and wine privilege tax.
Substitutes single tax on privilege of manufacturing or importing
of alcoholic liquor equal to $11 for each gallon of alcohol
content of the alcoholic liquor as measured by volume.
  Takes effect January 1, 1996.

                        A BILL FOR AN ACT
Relating to alcoholic liquors; creating new provisions; amending
  ORS 279.712, 471.005, 471.210, 471.230, 471.235, 471.262,
  471.270, 471.275, 471.289, 471.290, 471.295, 471.315, 471.327,
  471.335, 471.355, 471.405, 471.452, 471.510, 471.705, 471.710,
  471.725, 471.730, 471.805, 471.810, 471.990, 472.060, 472.110,
  472.116, 472.205, 472.310, 473.010, 473.020, 473.030, 473.040,
  473.045, 473.050, 473.060, 473.070, 473.080, 473.090, 473.100,
  473.110, 473.120, 473.130, 473.140, 473.150, 473.160, 473.170
  and 576.765; repealing ORS 471.285, 471.740, 471.745, 471.750,
  471.752 and 471.780; appropriating money; and prescribing an
  effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 7 of this Act are added to and
made a part of ORS 471.230 to 471.260. + }
  SECTION 2.  { + (1) Except as provided in ORS chapter 472,
distilled liquors may be sold at retail only by the holder of a
retail liquor store license. Distilled liquors sold by a holder
of a retail liquor store license must be in sealed containers.
Holders of retail liquor store licenses may establish retail
prices for the sale of distilled liquors. Retail liquor store
licenses shall be issued by the Oregon Liquor Control Commission.
Retail liquor store licenses may be issued only to individuals.
  (2) In addition to the other requirements of this chapter, an
applicant for a retail liquor store license shall provide proof
to the commission that the applicant is insured for tort
liability arising out of the operation of the store in an amount
not less than $300,000. The commission may require that the
holder of a retail liquor store license provide continuing
evidence of liability insurance in that amount for the license
period.
  (3) The location of a retail liquor store operated by a retail
liquor store licensee may be changed only with the prior approval
of the commission. In deciding whether to allow a change in
location, the commission shall apply the same criteria used in
making a determination on an application for a new retail liquor
store license. The commission shall consider increases and
decreases in population densities in considering requests for
changing the location of a retail liquor store.
  (4) A retail liquor store may not be located on the same
premises that are used for sales of alcoholic beverages under a
restaurant license, package store license or any other license
issued pursuant to this chapter or ORS chapter 472. Retail liquor
store licensees shall not permit the consumption of alcoholic
liquors upon their licensed premises.
  (5) Retail liquor stores may be open for sales of distilled
liquor only from 6 a.m. to 12 midnight on Monday through Saturday
and from 12 noon to 6 p.m. on Sunday.
  (6) Retail liquor store licensees may sell mixers, tobacco
products and lottery tickets. In addition, retail liquor store
licensees may sell other items allowed by commission rule.
  (7) Retail liquor store licensees may accept credit cards in
payment for distilled liquors.
  (8) A retail liquor store licensee may not make deliveries of
distilled liquors.
  (9) The maximum number of stores that are licensed by the
commission under retail liquor store licenses at any time during
the calendar year may not exceed 235.
  (10) If more than one qualified person applies for a retail
liquor store license, the commission shall select among the
qualified applicants by lottery. The commission shall adopt rules
for the conduct of a lottery under the provisions of this
subsection. + }
  SECTION 3.  { + (1) A wholesale liquor license shall allow the
importation, storage, transportation, wholesale sale and
distribution of distilled liquors only to holders of retail
liquor store licenses issued under section 2 of this 1995 Act.
The holder of a wholesale liquor license may not sell alcoholic
liquor for consumption upon the licensed premises. A wholesale
liquor licensee may deliver distilled liquors only to the
premises licensed under section 2 of this 1995 Act. Wholesale
liquor licenses shall be issued by the Oregon Liquor Control
Commission.
  (2) No person may import, store, transport or engage in the
wholesale sale or distribution of distilled liquors unless the
person is licensed under the provisions of this section. + }
  SECTION 4.  { + (1) As soon as may be reasonably practicable
after the effective date of this 1995 Act, the Oregon Liquor
Control Commission shall sell all liquor stock, equipment,
supplies and other property, real and personal, held by the
Oregon Liquor Control Commission for the operation of warehouses
and stores established under ORS 471.750 (1993 Edition).
  (2) The commission may sell liquor stock only to holders of
retail liquor store licenses. A retail liquor store licensee may
acquire the liquor stock of the store by paying the wholesale
price paid by the commission to distilleries or importers for the
acquisition of the stock. A retail liquor store that acquires
liquor stock from the commission under the provisions of this
section must pay in addition, at the time of purchase, privilege
taxes on the alcoholic liquor in the amount specified by ORS
473.030. The purchase price must be paid in cash or under an
agreement requiring full payment within 60 days. The commission
may require such security and terms as the commission deems
appropriate for the sale of the stock.
  (3) Notwithstanding any other provision of this 1995 Act, the
commission may not refuse to renew a retail liquor store license
to an agent operating a store established under the provisions of
ORS 471.750 (1993 Edition) based on the location of the store, or
based upon the agent holding another license issued by the Oregon
Liquor Control Commission if that license was first issued before
the effective date of this 1995 Act.
  (4) Notwithstanding any provisions of this 1995 Act or any
provisions of this chapter, the commission shall issue a retail
liquor store license to any agent who is operating a store
established under ORS 471.750 (1993 Edition) on the effective
date of this 1995 Act if the agent pays the fee required by ORS
471.290 and provides proof of the bond required by ORS 471.290
and the insurance required by section 2 (2) of this 1995 Act.
This subsection does not affect the application of the provisions
of this 1995 Act or this chapter to the renewal of any retail
liquor store license. + }
  SECTION 5.  { + All proceeds from the sale of liquor stock,
equipment, supplies and other property used in the operation of
warehouses and stores established under ORS 471.750 (1993
Edition) shall be paid into the General Fund. Privilege taxes
collected on the sale of liquor stock held by the Oregon Liquor
Control Commission for the operation of stores established under
ORS 471.750 (1993 Edition) pursuant to section 4 of this 1995 Act
shall be paid into the General Fund and be available for general
governmental purposes. + }
  SECTION 6.  { + The Oregon State Police shall investigate
violations of the provisions of ORS chapters 471 and 472, and
violations of the rules of the Oregon Liquor Control Commission
adopted pursuant to the provisions of ORS chapters 471 and 472.
The Oregon State Police shall inform the commission from time to
time of the progress of investigations being conducted. Upon
completing an investigation of a violation of a law or rule under
the provisions of this section, the Oregon State Police shall
provide a written report to the commission. The Oregon State
Police shall make such officers available for testimony as may be
required by the commission for the purpose of proceedings before
the commission. + }
  SECTION 7.  { + (1) The duties and powers of the Oregon Liquor
Control Commission to investigate violations of laws and rules of
the commission, including investigations of violations of laws
and rules of the commission that could be the basis of denial,
revocation or suspension of a license issued under this chapter
or ORS chapter 472, are transferred to the Oregon State Police.
  (2) The transfer of duties and powers to the Oregon State
Police under this section does not affect any action, suit,
proceeding or prosecution involving or with respect to those
duties and powers begun before and pending at the time of the
transfer.
  (3) There are transferred to the Oregon State Police:
  (a) All the supplies, materials, equipment, records, books,
papers and facilities of the commission used in the investigation
of violations of laws and rules of the commission.
  (b) All the employees of the Oregon Liquor Control Commission
whose principal job duties relate to the investigation of
violations of laws and rules of the commission are transferred to
the Oregon State Police, subject to the right of the
Superintendent of State Police to abolish positions and change
duties to the extent that the superintendent finds it desirable
for sound, efficient and economical administration. However,
subject to the right of the superintendent to abolish positions
and change duties under this subsection, in the case of any
transfer of personnel made under this subsection, an employee
occupying a classified position under the State Personnel
Relations Law who is so transferred shall retain the same salary
classification and civil service status insofar as is possible.
  (4) The unexpended balances of amounts authorized to be
expended for the biennium beginning July 1, 1995, from revenues
dedicated, continuously appropriated, appropriated or otherwise
made available for the purpose of investigating violations of
laws and rules of the commission are appropriated and transferred
to and are available for expenditure by the Oregon State Police,
to the extent provided in subsection (5) of this section, for the
biennium beginning July 1, 1995.
  (5) For the purpose of administering and enforcing the duties
and powers transferred by this section and for the payment of the
expenses lawfully incurred by the Oregon State Police with
respect to the administration and enforcement of such duties and
powers, the Oregon State Police may expend the money that is
authorized to be expended by the Oregon Liquor Control Commission
for administering and enforcing the duties and powers transferred
by this 1995 Act and that is unexpended on the effective date of
this 1995 Act. The Oregon State Police shall assume and pay all
outstanding obligations lawfully incurred by the Oregon Liquor
Control Commission before the effective date of this 1995 Act
that properly are charged against amounts authorized by this
section to be expended by the Oregon State Police. The
expenditure classifications, if any, established by Acts
authorizing or limiting expenditures remain applicable to
expenditures by the Oregon State Police under this section. + }
  SECTION 8. ORS 279.712 is amended to read:
  279.712. (1) The Oregon Department of Administrative Services
shall purchase or otherwise provide for the acquisition or
furnishing of all supplies, materials, equipment and services
other than personal required by state agencies.
  (2) The department shall approve all professional and personal
services contracts of agencies for architectural, engineering,
and related services before any such contract becomes binding and
before any service may be performed under the contract.
  (3) Subsections (1) and (2) of this section do not apply to:
    { - (a) Purchases of alcoholic liquor by the Oregon Liquor
Control Commission; - }
    { - (b) - }  { +  (a) + } Agreements entered into by the
Department of Education for the purchase or distribution of
textbooks;
    { - (c) - }  { +  (b) + } Personal service and public
improvement contracts of the Department of Transportation
relating to maintenance or construction of highways, bridges,
parks or other transportation facilities;
    { - (d) - }  { +  (c) + } Personal service and public
improvement contracts of the Department of Higher Education
relating to instructional, research, student union, athletic and
recreational facilities;
    { - (e) - }  { +  (d) + } Personal service and public
improvement contracts of the State Department of Fish and
Wildlife for dams, fishways, ponds and related fish and game
propagation facilities;
    { - (f) - }  { +  (e) + } Personal and professional service
contracts subject to review by the Oregon Department of
Administrative Services as provided in ORS 291.021;
    { - (g) - }  { +  (f) + } Insurance and service contracts to
provide medical assistance as provided for under ORS 414.115,
414.125, 414.135 and 414.145; and
    { - (h) - }  { +  (g) + } Personal service and public
improvement contracts of the Economic Development Department
relating to its foreign trade offices operating outside the
state.
  SECTION 9. ORS 471.005 is amended to read:
  471.005. (1) 'Alcoholic liquor' means any alcoholic beverage
containing more than one-half of one percent alcohol by volume,
and every liquid or solid, patented or not, containing alcohol,
and capable of being consumed by a human being.
  (2) 'Commission,' as used in this chapter and ORS 474.105 and
474.115, means the Oregon Liquor Control Commission.
   { +  (3) 'Distilled liquor' means any wine containing more
than 21 percent of alcohol by volume or any other alcoholic
beverage containing more than eight percent of alcohol by volume,
including all spirituous liquor. + }
  SECTION 10. ORS 471.210 is amended to read:
  471.210. (1) The commission shall provide for the licensing of
persons and incorporated cities within the state to manufacture,
distribute, take orders for and sell spirits, wines, beer and
other alcoholic liquors. Except as provided in subsection (2) of
this section, every licensee or applicant for a brewery, winery,
wholesale, wine warehouse or brewery-public house license shall
give, and at all times maintain on file with the commission, a
bond with a corporate surety authorized to transact business in
this state. The bond shall be in form and amount acceptable to
the commission, shall be payable to the commission and
conditioned that such licensee or applicant will pay any fine
imposed for any violation of any provision of the Liquor Control
Act and that the licensee or applicant will pay all license fees,
privilege taxes, taxes on alcoholic liquors, together with
penalties and interest thereon, levied or assessed against the
licensee or applicant under statutes relating to the importation,
manufacture, distribution, sale or taxation of alcoholic liquors
in the State of Oregon. { +  In addition, the bond of a retail
liquor store licensee shall be conditioned that the licensee pay
for all distilled liquor delivered to the licensee. + }
  (2) Under such conditions as the commission may prescribe, a
brewery, winery, wholesale, wine warehouse or brewery-public
house licensee or applicant may deposit in lieu of the bond
required by subsection (1) of this section, the equivalent value
in cash, bank letters of credit recognized by the State Treasurer
or negotiable securities of a character approved by the State
Treasurer. The deposit is to be made in a bank or trust company
for the benefit of the commission. Interest on deposited funds or
securities shall accrue to the depositor.
  (3) The commission may require of every applicant for a license
the recommendation in writing of the governing body of the county
in the event the place of business of the applicant is outside an
incorporated city, and of the city council if the place of
business of the applicant is within an incorporated city. The
commission may take such recommendation into consideration before
granting or refusing the license. The applicant shall pay to such
recommending authority a fee determined by the governing body of
the recommending authority, not to exceed $25, for each
application for a license.
  (4) After public notice and hearing, the governing body of a
city or county may adopt an ordinance, rule or resolution
prescribing licensing guidelines to be followed in making
recommendations on license applications and in allowing
opportunity for public comment on applications. If the guidelines
are approved by the commission as consistent with commission
rules, after public notice and hearing the governing body may
adopt an ordinance, rule or regulation establishing a system of
fees that is reasonable and necessary to pay expenses of
processing the written recommendation. In no case shall the fees
be greater than $100 for an original application, $75 for a
change-in-ownership or change in location or change in privilege
application and $35 for a renewal or temporary application.
  SECTION 11. 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
commission - }  { +  persons holding wholesale liquor
licenses + }, 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 - }  { +  a
person holding a wholesale liquor license + } 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 may:
  (a) Permit tastings of such brandy by visitors on the premises
and on at least one other premises owned or leased by the
licensee.   { - The licensee must purchase the brandy from the
commission. - }
  (b)   { - Apply for appointment as a retail sales agent of the
commission for purposes of  - }  { +  Hold a retail liquor store
license limited to + } retailing only brandy which the licensee
distilled in Oregon at the two locations at which tastings are
permitted pursuant to paragraph (a) of this subsection.  { + A
retail liquor store license issued under this subsection is not
subject to the limitation on total retail liquor store licenses
imposed by section 2 of this 1995 Act. + }
  SECTION 12. ORS 471.235 is amended to read:
  471.235. (1) A wholesale malt beverage and wine license shall
allow the importation, storage, transportation, wholesale sale
and distribution  { + of malt beverages and wine + } to
 { - licensees of the commission - }  { +  persons licensed by
the Oregon Liquor Control Commission under the provisions of this
chapter or ORS chapter 472 + },   { - and - }  the export of
 { + malt beverages as defined in ORS 473.010 and the export of
 + }wine of  { + any + } alcoholic content   { - not in excess of
21 percent of alcohol by volume, and malt beverages, as defined
in ORS 473.010 - } , and the importation and sale   { - to the
commission and the export - }  { +   + }of wine of alcoholic
content in excess of 21 percent of alcohol by volume { +  solely
for the purpose of sales to holders of retail liquor store
licenses + }. No such licensee shall sell any alcoholic liquor
for consumption upon the licensed premises.  However, a wholesale
malt beverage and wine licensee may sell naturally fermented wine
containing not more than 21 percent of alcohol by volume in
quantities of not less than five gallons nor more than 55 gallons
at any one time to consumers for consumption not on the licensed
premises. Wholesale malt beverage and wine licensees may sell
malt beverages containing not more than four percent of alcohol
by weight in quantities not less than five gallons to any
unlicensed organization, lodge, picnic party or private
gathering. Such malt beverages shall not be sold by such
unlicensed group. A wholesale malt beverage and wine license
shall permit the licensee also to sell malt beverages, as defined
in ORS 473.010, at wholesale only, to persons holding licenses
authorizing them to resell such beverages at retail. No wholesale
malt beverage and wine licensee shall sell within this state any
beer containing in excess of four percent of alcohol by weight.
Employees of wholesale malt beverage and wine licensees who have
salespersons' licenses may serve sample tastings of malt
beverages and wine at alcoholic beverage industry trade shows,
seminars and conventions and at alcoholic beverage industry
sample tastings for employees of retail licensees.
  (2) Nothing in subsection (1) of this section shall be
considered to prohibit the transportation or wholesale sale or
distribution of malt beverage or wine by a wholesale malt
beverage and wine licensee to any alcoholic treatment center
licensed by the Health Division of the Department of Human
Resources.
  (3) A wholesale malt beverage and wine licensee may impose an
additional handling fee on any wine sold to any retailer in this
state if the quantity of wine sold to the retailer is less than
the smallest multiple-package case available to be sold and the
handling fee is uniform for all licensees.
  SECTION 13. ORS 471.262 is amended to read:
  471.262. (1) Upon receiving an application for a package store
license   { - as defined in ORS 471.260 - }   { + or a retail
liquor store license + }, the commission may grant a temporary
license or letter of authority for a period not exceeding 90
days, if it finds:
  (a) The applicant is located in an area presently zoned for
commercial use and presents documentation of such zoning to the
commission.
  (b) The applicant pays the fee prescribed by the commission for
a temporary license or letter.
  (2) The commission summarily and without prior administrative
proceedings may revoke a temporary license or letter of authority
at any time during the 90 days if:
  (a) The commission finds that any of the grounds for refusing a
permanent license under ORS 471.295 exist; or
  (b) The city or county in which the applicant is located
provides evidence of reasonable grounds to the commission:
  (A) That the temporary license or letter of authority should be
revoked; or
  (B) That a package store  { + or retail liquor store + }
license should not be issued.
  SECTION 14. ORS 471.270 is amended to read:
  471.270. (1) A druggist's license may be issued to any person
operating a pharmacy, and who is, or who employs, a qualified
pharmacist registered under the laws of this state. A druggist's
license shall allow the sale of all alcoholic liquors listed in
the U. S. P. and N. F., in containers of not more than one quart
capacity, upon prescriptions only, and with the limit of one
quart on each prescription. No such licensee shall permit the
drinking of such alcoholic liquors on the premises of any drug
store, except that such drug store may hold a retail malt
beverage license. Such licensee may purchase alcoholic liquor in
excess of 14 percent of alcohol by volume  { + only + } from
 { - or through the commission only - }  { +  a person holding a
retail liquor store license + }.
  (2) Registered pharmacists may fill a prescription containing
alcoholic liquors of any kind for any physician duly licensed by
this state, without regard to any local option laws or ordinances
forbidding the sale of such liquors. Such prescription shall
include the name and address of the person for whom it is
prescribed, and shall be signed by the full name of the physician
issuing it. It shall be filled only once, and the person making
the sale of such prescription shall write on its face the number
of the prescription, and the date of the sale or delivery of the
liquor. The person shall keep such prescription on file and
available at all reasonable times to the inspection of the
commission.
  SECTION 15. ORS 471.275 is amended to read:

  471.275. A license may be granted to any public passenger
carrier or any corporation which operates an electric or steam
railroad in this state, or which operates club, parlor or dining
cars upon the lines of any railroad in this state, or to any
corporation or person operating a boat or boats engaged in the
transportation of passengers to or from any port of this state.
Such license shall allow the sale and public consumption of malt
beverages, as defined in ORS 473.010, and wine containing not
more than 14 percent of alcohol by volume, upon such terms as the
commission shall prescribe. Railroad or boat licensees may
 { - be appointed by the commission to act as agents of the
commission for the sale, in sealed packages, of alcoholic liquors
containing more than 14 percent of alcohol by volume on - }  { +
hold retail liquor store licenses limited to sales on
 + }railroad trains or boats of such licensees. { +  A retail
liquor store license issued under this section is not subject to
the limitation on total retail liquor store licenses imposed by
section 2 of this 1995 Act. + }
  SECTION 16. ORS 471.289 is amended to read:
  471.289. (1) No   { - licensee of the commission - }  { +
person licensed under this chapter or ORS chapter 472 + } shall
manufacture, import into, or purchase in the State of Oregon for
resale therein any
  { - malt beverages or wine - }  { +  alcoholic liquor + }
unless the manufacturer of such   { - malt beverages or wine - }
 { +  alcoholic liquor + } has first obtained from the
 { + Oregon Liquor Control  + }Commission a certificate of
approval, except that with respect to   { - malt beverages or
wine - }  { +  alcoholic liquors + } manufactured outside the
United States, the certificate of approval may be obtained by the
person importing same into the United States. Such certificate of
approval shall be granted only to manufacturers or importers who
shall have entered into an agreement with the commission to
furnish a report to the commission, on or before the 20th day of
each month, showing the quantity of   { - malt beverages or
wine - }  { +  alcoholic liquor + } delivered to each
 { - licensee of the commission - }  { +  person licensed under
this chapter or ORS chapter 472 + } during the preceding calendar
month, and to faithfully comply with all laws of the State of
Oregon pertaining to traffic in   { - malt beverages or wine - }
 { +  alcoholic liquor + }. If any holder of such certificate, or
any officer, agent or employee of such holder, shall violate any
term or provision of such agreement, or submit any false or
fictitious report, the commission may, in its discretion, suspend
or revoke such certificate.
  (2) Certificates of approval shall be of two classes:
  (a) Class 'A' certificate of approval shall apply to
manufacturers or importers of   { - malt beverages or wine - }
 { +  alcoholic liquor + } manufactured outside the United
States.
  (b) Class 'B' certificate of approval shall apply to
manufacturers of   { - malt beverages or wine - }  { +  alcoholic
liquor + } manufactured within the United States.
  SECTION 17. ORS 471.290 is amended to read:
  471.290. (1) Any person desiring a license or renewal of a
license shall make application to the Oregon Liquor Control
Commission upon forms to be furnished by the commission showing
the name and address of the applicant, the applicant's
citizenship, location of the place of business which is to be
operated under the license, and such other pertinent information
as the commission may require. No license shall be granted or
renewed until the provisions of the Liquor Control Act and the
rules of the commission have been complied with.
  (2) Except as provided in this section, the commission shall
assess a nonrefundable fee for processing each application for
any license authorized by ORS chapter 471 and ORS 474.105 and
474.115 or ORS chapter 472, in an amount equal to 25 percent of
the license fee. The commission shall not begin to process any
license application until the application fee is paid. If the
commission allows an applicant to apply at the same time for
alternative licenses at one premises, only the application fee
for the most expensive license shall be required. If a license is
granted or committed, the application fee of 25 percent shall be
applied against the annual license fee. This subsection shall not
apply to an agent's license, a salesperson's license, a
manufacturer certificate of approval, a druggist's license, a
health care facility license or to any license which is issued
for a period of less than 30 days.
  (3) Subject to subsection (4) of this section, the commission
shall assess a nonrefundable fee for processing a renewal
application for any license authorized by ORS chapter 471 and ORS
474.105 and 474.115 or ORS chapter 472 only if the renewal
application is received by the commission less than 20 days
before expiration of the license. If the renewal application is
received prior to expiration of the license but less than 20 days
prior to expiration, this fee shall be 25 percent of the annual
license fee. If a renewal application is received by the
commission after expiration of the license but no more than 30
days after expiration, this fee shall be 40 percent of the annual
license fee. This subsection shall not apply to an agent's
license, a salesperson's license, a manufacturer certificate of
approval, a druggist's license, a health care facility license, a
brewery-public house license or to any license which is issued
for a period of less than 30 days.
  (4) The commission may waive the fee imposed under subsection
(3) of this section if it finds that failure to submit a timely
application was due to unforeseen circumstances or to a delay in
processing the application by the local governing authority that
is no fault of the licensee.
  (5) The annual license fee is nonrefundable and shall be paid
by each applicant upon the granting or committing of a license.
The annual license fee and the minimum bond required of each
class of license are as follows:
_________________________________________________________________

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

                       Minimum
       License      Fee   Bond

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

Brewery, including

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

  Certificate of Ap$r500l1,000

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

Winery.............  250 1,000
Distillery.........  100  None
Wholesale Malt

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

  Beverage and Wine  275 1,000

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

Wholesale Liquor...   __
...................
__

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

Bottler............  150  None
Restaurant.........  200  None
Certificate of Approval,

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

  Class A..........   15  None
Certificate of Approval,
  Class B..........   50  None

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

Package Store......   50  None
Package Store Tasting 75  None
Druggist...........    5  None
Railroad System or Public

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

  Passenger Carrier
  or Boat..........  100  None

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

Industrial Alcohol.   50  None
Retail Malt Beverage 200  None

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

Retail Liquor Store  500 1,000
Health Care Facility   5  None
Warehouse..........  100 1,000
Special retail beer

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

  license may be
  issued for any picnic,
  convention, fair, civic
  or community enterprise
  or business promotion on
  a licensed premis$s10tper day
Special retail wine
  license may be issued
  for any special auction,
  picnic, convention,
  fair, civic or community
  enterprise or business
  promotion on a licensed
  premises at......$ 10 per day
Special events winery
  license may be
  issued to a
  winery licensee a$ 10 per day
Bed and breakfast
  license..........$  5 per guest unit
Brewery-Public House,
  including Certificate
  of Approval......$250  $ 1,000
Grower's sales privilege
  license..........$250  $ 1,000
Special events grower's
  sales privilege
  license..........$ 10 per day

____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

Agent..............$125 for five years
Salesperson........$ 25 for five years
Winery Salesperson.$ 35 for five years
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
  SECTION 18. ORS 471.295 is amended to read:
  471.295. The  { + Oregon Liquor Control  + }Commission may
refuse to license any applicant if it has reasonable ground to
believe any of the following to be true:
  (1) That there are sufficient licensed premises in the locality
set out in the application, or that the granting of a license in
the locality set out in the application is not demanded by public
interest or convenience.
  (2) That the applicant has not furnished an acceptable bond.
  (3) That, except as allowed by ORS 471.456, any applicant to
sell at retail for consumption on the premises  { + or applicant
for a retail liquor store license + } has been financed or
furnished with money or property by, or has any connection with,
or is a manufacturer of, or wholesale dealer in, alcoholic
liquor.
  (4) That the applicant:
  (a) Is in the habit of using alcoholic beverages, habit-forming
drugs or controlled substances to excess.
  (b) Has made false statements to the commission.
  (c) Is not a citizen of the United States, or is incompetent or
physically unable to carry on the management of the establishment
proposed to be licensed.
  (d) Has been convicted of violating any of the alcoholic liquor
laws of this state, general or local, or has been convicted at
any time of a felony.
  (e) Has maintained an insanitary establishment.
  (f) Is not of good repute and moral character.
  (g) Did not have a good record of compliance with the alcoholic
liquor laws of this state and the rules of the commission when
previously licensed.
  (h) Is not the legitimate owner of the business proposed to be
licensed, or other persons have ownership interests in the
business which have not been disclosed.
  (i) Is not possessed of or has not demonstrated financial
responsibility sufficient to adequately meet the requirements of
the business proposed to be licensed.
  (j) Is unable to read or write the English language or to
understand the Liquor Control Act or rules of the commission.
  (5) That there is a history of serious and persistent problems
involving disturbances, lewd or unlawful activities or noise
either in the premises proposed to be licensed or involving
patrons of the establishment in the immediate vicinity of the
premises if the activities in the immediate vicinity of the
premises are related to the sale or service of alcohol under the
exercise of the license privilege. Behavior which is grounds for
refusal of a license under this section, where so related to the
sale or service of alcohol, includes, but is not limited to
obtrusive or excessive noise, music or sound vibrations; public
drunkenness; fights; altercations; harassment; unlawful drug
sales; alcohol or related litter; trespassing on private
property; and public urination. Histories from premises currently
or previously operated by the applicant may be considered when
reasonable inference may be made that similar activities will
occur as to the premises proposed to be licensed. The applicant
may overcome the history by showing that the problems are not
serious or persistent or that the applicant demonstrates a
willingness and ability to control adequately the premises
proposed to be licensed and patrons' behavior in the immediate
vicinity of the premises which is related to the licensee's sale
or service of alcohol under the licensee's exercise of the
license privilege.  { +
  (6) That an applicant for a retail liquor store license has not
supplied proof of liability insurance. + }
  SECTION 19. ORS 471.315 is amended to read:
  471.315. (1) The  { + Oregon Liquor Control  + }Commission may
cancel or suspend any license, or impose a civil penalty in lieu
of or in addition to suspension as provided by ORS 471.322, if it
finds or has reasonable ground to believe any of the following to
be true:
  (a) That the licensee:
  (A) Has violated any provision of this chapter and ORS 474.105
and 474.115 or any rule of the commission adopted pursuant
thereto.
  (B) Has made any false representation or statement to the
commission in order to induce or prevent action by the
commission.
  (C) Is not maintaining an acceptable bond.
  (D) Has maintained an insanitary establishment.
  (E) Is insolvent or incompetent or physically unable to carry
on the management of the establishment of the licensee.
  (F) Is in the habit of using alcoholic liquor, habit-forming
drugs or controlled substances to excess.
  (G) Knowingly has sold alcoholic liquor to persons under 21
years of age or to persons visibly intoxicated at the time of
sale or has knowingly allowed the consumption of alcoholic liquor
on the licensed premises by a person who is visibly intoxicated
at the time of consumption.
  (H) Has misrepresented to a customer or the public any
alcoholic liquor sold by the licensee.
  (I) Since the granting of the license, has been convicted of a
felony, of violating any of the liquor laws of this state,
general or local, or of any misdemeanor or violation of any
municipal ordinance committed on the licensed premises.
  (b) That any person licensed to sell at retail for consumption
on the premises  { + or holding a retail liquor store license + }
is acting as an agent of, or is a manufacturer or wholesaler of
alcoholic liquors, or has borrowed money or property, or has
accepted gratuities or rebates, or has obtained the use of
equipment from any manufacturer or wholesaler of alcoholic liquor
or any agent thereof.
  (c) That there is a history of serious and persistent problems
involving disturbances, lewd or unlawful activities or noise
either in the premises or involving patrons of the establishment
in the immediate vicinity of the premises if the activities in
the immediate vicinity of the premises are related to the sale or
service of alcohol under the exercise of the license privilege.
Behavior which is grounds for cancellation or suspension of a
license under this section, where so related to the sale or
service of alcohol, includes, but is not limited to obtrusive or
excessive noise, music or sound vibrations; public drunkenness;
fights; altercations; harassment or unlawful drug sales; alcohol
or related litter; trespassing on private property; and public
urination. Mitigating factors include a showing by the licensee
that the problems are not serious or persistent or that the
applicant has demonstrated a willingness and ability to control
adequately the licensed premises and patrons' behavior in the
immediate vicinity of the premises which is related to the
licensee's sale or service of alcohol under the licensee's
exercise of the license privilege.
   { +  (d) That a retail liquor store licensee has not supplied
proof of liability insurance.
   + }  { - (d) - }  { +  (e) + } That there is any other reason
which, in the opinion of the commission, based on public
convenience or necessity, warrants canceling or suspending such
license.
  (2) Civil penalties under this section shall be imposed as
provided in ORS 183.090.
  SECTION 20. ORS 471.327 is amended to read:
  471.327. (1) The  { + Oregon Liquor Control + } Commission, in
suspending any  { + retail liquor store license, + } brewery
license, wholesale wine license, wholesale malt beverage license,
 { + wholesale liquor license + } or certificate of approval, may
further impose against the licensee or the holder of the
certificate of approval a civil penalty not to exceed $5,000, or,
in its discretion, may impose such civil penalty without
suspending the license or the certificate of approval.
  (2) Civil penalties under this section shall be imposed as
provided in ORS 183.090.
  SECTION 21. ORS 471.335 is amended to read:
  471.335. (1) No alcoholic liquor shall be imported into this
state by any person not holding a brewery, winery, distillery or
wholesaler's license, except as follows:
    { - (a) Alcoholic liquor ordered by and en route to the
commission. - }
    { - (b) - }  { +  (a) + } Wines for sacramental purposes
according to rules adopted by the  { + Oregon Liquor Control + }
Commission.
    { - (c) - }  { +  (b) + } Alcoholic liquor that is in transit
on a common carrier to a destination outside Oregon.
    { - (d) - }  { +  (c) + } Alcoholic liquor coming into Oregon
on a common carrier according to orders placed by a licensed
brewery, winery or wholesaler.
    { - (e) - }  { +  (d) + } Imported alcoholic liquor pursuant
to a permit issued under subsection (2) of this section.
  (2) The commission may require importers of alcoholic liquor to
secure a permit for each importation and may charge a reasonable
fee based on quantity and type for the permit.
  SECTION 22. ORS 471.355 is amended to read:
  471.355. (1) Except for special retail beer, special retail
wine and special events winery licenses provided for by ORS
471.290, and   { - agent, - }  salesperson and winery salesperson
licenses provided for by subsection (2) of this section, all
licenses and renewals thereof shall be issued for a period of one
year which shall expire at 12 midnight on March 31, June 30,
September 30 or December 31 of each year.
  (2)   { - Agent, - }  Salesperson and winery salesperson
licenses and renewals shall be issued for a period of five years,
which shall expire at 12 midnight on December 31 of the fifth
year following issuance. The fee is nonrefundable.
  (3) Notwithstanding subsection (1) of this section, a license
issued for the first time to an applicant may be issued for less
than a year. Except for licenses issued under ORS   { - 471.285
and - } 471.287, the license fee for the first license issued to
an applicant, if the license is issued for a fraction of a year,
shall be proportionate to the annual license computed on a
quarterly basis, counting a major fraction of a quarter as a
whole quarter.
  SECTION 23. ORS 471.405 is amended to read:
  471.405. (1) No person shall peddle or deliver alcoholic liquor
to or at any place, where, without a license, alcoholic liquor is
sold or offered for sale. No licensee shall sell or offer for
sale any alcoholic liquor in a manner, or to a person, other than
the license permits the licensee to sell.
  (2) No person shall purchase, possess, transport or import,
except for sacramental purposes, alcoholic liquor   { - unless it
is procured from or through the commission, except as provided
otherwise in the Liquor Control Act - }  { +  except in the
manner authorized by this chapter and ORS chapter 472 + }.
  (3) No person not licensed under the Liquor Control Act shall
sell, solicit, take orders for or peddle alcoholic liquor.
  (4) Notwithstanding the provisions of subsection (2) of this
section, an individual entering the state may have in possession
an amount not to exceed four liters (135.2 fluid ounces) of
distilled spirits, two cases of wine (620 fluid ounces)
containing not more than 21 percent of alcohol by volume and two
cases of malt beverages (576 fluid ounces), as defined in ORS
473.010.  These quantities of alcoholic liquor are exempt from
fees collected by the commission.
  (5) Upon conviction for unlawfully purchasing or importing into
this state   { - wine containing over 21 percent of alcohol by
volume or any other alcoholic liquor containing over 14 percent
of alcohol by volume from any source except from or through the
commission, or for unlawfully purchasing or importing into this
state any wine containing 21 percent or less of alcohol by volume
or any other alcoholic liquor containing 14 percent or less of
alcohol by volume from any source except from or through the
commission or its duly authorized licensees - }  { +  any
alcoholic liquor in violation of the provisions of this chapter
or ORS chapter 472 + }, the person convicted shall forfeit to the
commission the alcoholic liquor so purchased or imported. The
commission shall thereupon seize the forfeited liquor and it
shall then become the commission's property.
  SECTION 24. ORS 471.452 is amended to read:
  471.452.  { + (1) + } Excepting persons holding a winery
license, winery salesperson's license, grower's sales privilege
license or brewery-public house license, no   { - licensee of the
commission - }  { +  person licensed under this chapter or ORS
chapter 472 + } shall sell or engage in the business of selling
alcoholic liquors both at wholesale and retail.
   { +  (2) This section does not apply to sales of distilled
liquor by retail liquor store licensees to holders of dispenser
licenses issued under ORS chapter 472. + }
  SECTION 25. ORS 471.510 is amended to read:
  471.510. ORS 471.506 shall not prohibit the sale of pure
alcohol for scientific or manufacturing purposes, or of wines to
church officials for sacramental purposes, or of alcoholic
stimulants where they have been prescribed by a regular
practicing physician, dated and signed by the physician as
provided by ORS 471.270 (2); nor shall it prevent any person
residing in the county or city from ordering and having delivered
to the home of the person, for the personal use of self and
family, alcoholic liquors purchased from   { - the commission or
from - }  persons duly licensed to sell them under the Liquor
Control Act.  { +
   + }  { +  SECTION 26. + } ORS 471.705 is amended to read:
  471.705. (1) There is created the Oregon Liquor Control
Commission, consisting of   { - five - }  { +  three + } persons
appointed by the Governor.   { - One member shall be from among
the bona fide residents of each congressional district of the
state. - }  One member shall be from the food and alcoholic
beverage retail industry. Not more than   { - three - }  { +
two + } commissioners shall be of the same political
party { + . + }   { - and - }  One  { + member + } shall be
designated by the Governor to be
  { - chairman - }   { + chair + } of the commission. The
commissioners are entitled to compensation and expenses as
provided in ORS 292.495. Each commissioner at the time of
appointment and qualification shall be a resident of this state
and shall have resided in this state for at least five years next
preceding appointment and qualification.  The commissioner shall
be an elector therein and not less than 30 years of age. A
commissioner shall cease to hold office if the commissioner
ceases to possess   { - the residency or - }  industry
qualification for appointment and the Governor shall appoint a
qualified individual to complete the unexpired term.
  (2) The term of office of a commissioner shall be four years
from the time of appointment and qualification and until a
successor qualifies. The terms of the commissioners shall
commence April 1. In case any commissioner is allowed to hold
over after the expiration of the term, the successor shall be
appointed for the balance of the unexpired term. Vacancies in the
commission shall be filled by the Governor for the unexpired
term. Each commissioner is eligible for reappointment but no
person shall be eligible to serve for more than two full terms.
  (3) All appointments of commissioners by the Governor are
subject to confirmation by the Senate pursuant to section 4,
Article III, Oregon Constitution.
  SECTION 27. 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;
  (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. - }
    { - (4) - }  { +  (3) + } Nothing in this section prohibits a
person from having a financial interest resulting from
investments made by the Public Employes' 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) - }  { +  (4) + } 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.
  SECTION 28. ORS 471.725 is amended to read:
  471.725. The function, duties and powers of the  { + Oregon
Liquor Control + } Commission include the following:
    { - (1) To buy, have in its possession, bottle, blend,
rectify, transport and sell, for present or future delivery, in
its own name, alcoholic liquor in the manner set forth in this
chapter and ORS 474.105 and 474.115. - }
    { - (2) - }  { +  (1) + } To purchase, acquire, rent, lease
or occupy any building, rooms, stores or land and acquire, own,
lease and sell equipment and fixtures required for its
operations.
    { - (3) - }  { +  (2) + } To lease or sublet to others
property which it acquires or owns and which is not immediately
required for its operations. However, no real property shall be
purchased without the consent and approval of the Governor.
    { - (4) - }  { +  (3) + } To borrow money, guarantee the
payment thereof and of the interest thereon, by the transfer or
pledge of goods or in any other manner required or permitted by
law.
    { - (5) - }  { +  (4) + } To issue, sign, indorse and accept
checks, promissory notes, bills of exchange and other negotiable
instruments.
    { - (6) - }  { +  (5) + } In the event the United States
Government provides any plan or method whereby the taxes upon
alcoholic liquors are collected at the source, to enter into any
and all contracts and comply with all regulations, even to the
extent of partially or wholly abrogating any statutory provisions
which might be in conflict with federal law or regulations, to
the end that the commission receives the portion thereof
allocated to this state, to be distributed as provided by
statute.
    { - (7) - }  { +  (6) + } To secure and pay for such policies
of insurance as may be necessary to adequately protect it from
loss by fire, theft or other casualty.
  SECTION 29. ORS 471.730 is amended to read:
  471.730. The function, duties and powers of the  { + Oregon
Liquor Control + } Commission include the following:
  (1) To control the manufacture, possession, sale, purchase,
transportation, importation and delivery of alcoholic liquor in
accordance with the provisions of this chapter and ORS 474.105
and 474.115.
  (2) To grant, refuse, suspend or cancel licenses and permits
for the sale or manufacture of alcoholic liquor, or other
licenses and permits in regard thereto, and to permit, in its
discretion, the transfer of a license of any person.
    { - (3) To collect the taxes and duties imposed by statutes
relating to alcoholic liquors, and to issue, and provide for
cancellation, stamps and other devices as evidence of payment of
such taxes or duties. - }
    { - (4) To investigate and aid in the prosecution of every
violation of statutes relating to alcoholic liquors, to seize
alcoholic liquor manufactured, sold, kept, imported or
transported in contravention of this chapter and ORS 474.105 and
474.115, and apply for the confiscation thereof, whenever
required by statute, and cooperate in the prosecution of
offenders before any court of competent jurisdiction. - }
    { - (5) - }  { +  (3) + } To adopt such regulations as are
necessary and feasible for carrying out the provisions of this
chapter and ORS 474.105 and 474.115 and to amend or repeal such
regulations. When such regulations are adopted they shall have
the full force and effect of law.
    { - (6) - }  { +  (4) + } To exercise all powers incidental,
convenient or necessary to enable it to administer or carry out
any of the provisions of this chapter and ORS 474.105 and
474.115.
    { - (7) - }  { +  (5) + } To control, regulate and prohibit
any advertising by manufacturers, wholesalers or retailers of
alcoholic liquor by the medium of newspapers, letters,
billboards, radio or otherwise.
    { - (8) - }  { +  (6) + } To sell, license, regulate and
control the use of alcohol for scientific, pharmaceutical,
manufacturing, mechanical, industrial and other purposes, and to
provide by regulation for the sale thereof for such uses.
  SECTION 30. ORS 472.060 is amended to read:
  472.060. (1) For all purposes in connection with this chapter,
the  { + Oregon Liquor Control + } Commission shall have and
exercise all of the powers and be subject to the duties conferred
upon it by the Oregon Liquor Control Act and Acts amendatory
thereof and supplemental thereto, and constitutional provisions,
and the commission is hereby authorized and directed to
administer and perform the duties provided by this chapter within
and in accordance with the powers and duties prescribed in the
Oregon Liquor Control Act and Acts amendatory thereof and
supplemental thereto, and constitutional provisions, so far as is
applicable.
  (2) In addition to the functions, duties and powers vested with
and possessed by the commission, the commission is hereby vested
with the following functions, duties and powers:
  (a) To grant, refuse, suspend or cancel licenses for the sale
upon licensed premises, by licensees, of distilled liquor for
consumption on the premises;
    { - (b) To collect taxes and duties imposed by Acts relating
to the sale of distilled liquors, and to issue, and to provide
for the cancellation of, revenue stamps and other devices
evidencing payment of such taxes or duties; - }
    { - (c) - }  { +  (b) + } To investigate and aid in the
prosecution of each violation of this chapter and other Acts
relating to alcoholic liquors, to make seizure of distilled
liquors, manufactured, sold, kept, imported or transported in
contravention of this chapter, and to apply for the confiscation
thereof, whenever required by this chapter, and to cooperate in
the prosecution of offenders before any court of competent
jurisdiction;  { + and + }
    { - (d) - }  { +  (c) + } To adopt such regulations as are
necessary and feasible for carrying out the provisions of this
chapter and to amend or repeal such regulations, and to exercise
all such other powers, duties and functions covered by this
chapter, and all powers incidental, convenient or necessary to
enable it to administer or carry out any of the provisions of
this chapter.
  SECTION 31. ORS 472.110 is amended to read:
  472.110. (1) A dispenser's license may be issued to private
clubs, fraternal organizations, veterans' organizations, railroad
corporations operating interstate trains and commercial
establishments where food is cooked and served, and shall be in
three classes, designated as 'Class A,' 'Class B' and 'Class C. '
  (2) Class 'A' dispenser's license. A Class 'A ' dispenser's
license may be issued to railroad corporations operating
interstate trains and commercial establishments where food is
cooked and served. Such license shall permit the licensee to
purchase distilled spirits from either   { - an agent of the
commission appointed pursuant to ORS 471.750 - }   { + the holder
of a retail liquor store license + } or a dispenser licensee and
to store the same on the licensed premises and to sell the same
from the original container by the individual glass or drink for
consumption on the licensed premises. The license shall allow the
licensee to sell malt beverages and wine for consumption on the
premises and shall permit the patron to remove from the premises
a wine container the contents of which have been only partially
consumed. The malt beverages and wine shall be purchased only
from licensees duly authorized to sell at wholesale under ORS
471.220, 471.230 to 471.260 and 471.265 to 471.287. In the
absence of municipal ordinance or local regulation to the
contrary, Class ' A' dispensers' licensees shall be permitted to
allow dancing and to have and permit other proper forms of
entertainment upon the licensed premises.
  (3) Class 'B' dispenser's license. A Class 'B ' dispenser's
license may be issued to private clubs, fraternal organizations
and veterans' organizations. Such license shall permit the
licensee to purchase distilled spirits from either   { - an agent
of the commission appointed pursuant to ORS 471.750 - }   { + the
holder of a retail liquor store license + } or a dispenser
licensee and to store the same on the licensed premises and to
sell the same from the original container by the individual glass
or drink for consumption on the licensed premises. Such license
shall allow the licensee to sell malt beverages and wine for
consumption on the premises and shall permit the patron to remove
from the premises a wine container the contents of which have
been only partially consumed. Such malt beverages and wine shall
be purchased only from licensees duly authorized to sell at
wholesale under ORS 471.220, 471.230 to 471.260 and 471.265 to
471.287. In the absence of municipal ordinance or local
regulation to the contrary, Class 'B' dispensers' licensees shall
be permitted to allow dancing and to have and permit other proper
forms of entertainment upon the licensed premises.
  (4) The total number of licensed premises dispensing distilled
liquor pursuant to this chapter shall not in the aggregate at any
time exceed one such licensed premises for each 2,000 population
in the state, determined according to the last available
estimated quarterly State Board of Higher Education figures.

  (5) On and after July 26, 1979, the commission may issue up to
100 Class 'A' dispensers' licenses that shall not be subject to
the limitation of subsection (4) of this section.
  (6) Class 'C' dispenser's license. A Class 'C ' dispenser's
license may be issued to restaurants. A Class 'C ' licensee shall
have the same privileges as a Class 'A' licensee except that the
Class 'C' licensee must meet the following requirements:
  (a) Liquor service is from an area not accessible to patrons of
the restaurant;
  (b) Patrons are served alcoholic liquors only at tables as an
incident to food service; and
  (c) The restaurant does not have a lounge or public bar and the
applicant and facilities are otherwise qualified to hold a Class
'A' dispenser's license.
    { - (7) On and after July 1, 1984, a Class 'A,' 'B' or 'C '
licensee shall be entitled to purchase any distilled spirits from
an agent of the commission appointed pursuant to ORS 471.750 at a
discount of not more than five percent off the regular listed
price fixed by the commission, together with all taxes, in a
manner prescribed by commission rule. For purposes of
compensation by the commission, the appointed agent shall be
credited with such sales at full retail cost. - }
    { - (8) - }  { +  (7) + } Before allowing a patron to remove
from the licensed premises a wine container the contents of which
have been only partially consumed, the holder of a dispenser's
license must:
  (a) Inform the patron of the prohibitions of ORS 811.170
relating to open containers of alcoholic liquors in motor
vehicles; and
  (b) Inform the patron of the provisions of ORS 811.170
(1)(c)(B) allowing the transport of open containers of alcoholic
liquors in the trunk of a motor vehicle or in some other area of
the vehicle not normally occupied by the driver or passengers if
the vehicle is not equipped with a trunk.
   { +  (8) Dispenser licensees may purchase distilled liquors
only from the holders of retail liquor store licenses or
dispenser licenses. The holder of a retail liquor store license
may offer distilled liquors to the holder of a dispenser license
at a price lower than the retail price at which the retail liquor
store licensee sells the distilled liquor to the public. + }
  SECTION 32. ORS 472.116 is amended to read:
  472.116. (1) A community events dispenser's license may be
issued to a municipal corporation, including a city or county,
association or not for profit corporation that is engaged in the
production or promotion of a convention, festival, fair, rodeo,
civic or community event. A license issued under this section
shall permit the licensee to purchase, from   { - the
commission - }  { +  holders of retail liquor store licenses + }
only, distilled spirits at regular listed retail prices, to store
the spirits on the licensed premises and to sell the spirits from
the original containers by the individual drink for consumption
on the licensed premises. The license also allows the licensee to
sell malt beverages and wine for consumption on the premises if
the beverages and wine are purchased from a licensee authorized
to sell at wholesale under ORS 471.220, 471.230 to 471.260 and
471.265 to 471.289.
  (2) The license shall be granted for specific premises and all
beverages must be consumed on the premises. Food must be served
within the area of the licensed premises.
  (3) The  { + Oregon Liquor Control + } Commission may excuse
the licensee from compliance with such other license requirements
as may be found not inconsistent with the purpose of this
chapter.
  (4) The license may be issued for a period fixed by the
commission. The fee for a license issued under this section shall
not exceed $25 per day.
  SECTION 33. ORS 472.205 is amended to read:
  472.205. (1) A seasonal dispenser's license which is valid for
a season, as fixed by rule of the  { + Oregon Liquor Control + }
Commission, may be issued or renewed. The commission shall
designate the term of the license without regard to the calendar
year.
  (2) The license shall be issued to commercial establishments
where food is cooked and served and shall permit the licensee to
purchase, from   { - the commission - }  { +  holders of retail
liquor store licenses + } only, distilled spirits as defined in
this chapter at regular listed retail prices and to store the
same on the licensed premises and to sell the same from the
original container by the individual glass or drink for
consumption on the licensed premises, including mixed drinks and
cocktails compounded or mixed on the premises only, and shall
allow the licensee to sell malt beverages and wine for
consumption on the premises.
  (3) Such malt beverages and wine shall be purchased only from
licensees duly authorized to sell at wholesale under ORS 471.220,
471.230 to 471.260 and 471.265 to 471.287.
  (4) In the absence of any municipal ordinance or local
regulation to the contrary, seasonal dispensers' licensees shall
be permitted to allow dancing and other proper forms of
entertainment upon the licensed premises.
  (5) As used in this section, 'season' means a period not
exceeding nine months which is generally suitable for or
associated with certain activities including but not limited to
hunting, fishing, skiing or usually associated with vacations or
other specialized activities.
  SECTION 34. ORS 472.310 is amended to read:
  472.310. It shall be unlawful:
  (1) For any person to peddle or deliver alcoholic liquor to or
at any place where, without a license, alcoholic liquor is sold
or offered for sale, or for any licensee to sell or offer for
sale, any alcoholic liquor of a kind, in a manner, or to a person
other than the license permits the person to sell.
  (2) For any licensee under this chapter to sell or dispense any
distilled liquor, or to purchase, possess, transport or import
any distilled liquor for the purpose of dispensing same,
 { - except such as shall have been procured from or through the
commission - }  { + except in the manner authorized by this
chapter and ORS chapter 471 + }.
  (3) For any person to serve, sell or dispense alcoholic liquor
to any person under the age of 21 years or to a person who is
visibly intoxicated. However, nothing in this subsection
prohibits any licensee from allowing a person who is visibly
intoxicated from remaining on the licensed premises so long as
the person is not sold or served any alcoholic liquor.
  (4) For any person to maintain or assist in maintaining a
common nuisance.
  (5) For any person to make false representation or statement to
the commission in order to induce or prevent action.
  (6) For any   { - licensee of the commission - }  { +  person
licensed under this chapter + } to maintain a noisy, lewd,
disorderly or insanitary establishment or to supply impure or
otherwise deleterious alcoholic beverages.
  (7) For any   { - licensee of the commission - }  { +  person
licensed under this chapter + } to misrepresent to a customer or
to the public any alcoholic liquor sold by such licensee.
  (8) For any person under the age of 21 years to purchase
alcoholic liquor.
  (9) For any person knowingly to suffer or permit a nuisance as
defined by ORS 471.620 to exist or be kept or maintained in any
room, house, building, boat, structure or place of any kind of
which the person is the owner, manager or lessor.

  SECTION 35.  { + Sections 36 to 41 of this Act are added to and
made a part of ORS 471.230 to 471.260. + }
  SECTION 36.  { + Subject to the provisions of this 1995 Act,
the duties, functions and powers of the Oregon Liquor Control
Commission under ORS chapter 473 are transferred to the
Department of Revenue. + }
  SECTION 37.  { + Notwithstanding the transfer of duties,
functions and powers by section 36 of this 1995 Act, the lawfully
adopted rules of the Oregon Liquor Control Commission in effect
on the effective date of this 1995 Act continue in effect until
lawfully superseded or repealed by rules of the Department of
Revenue.  References in rules of the Oregon Liquor Control
Commission implementing the provisions of ORS chapter 473 to the
Oregon Liquor Control Commission or an officer or employee
thereof are considered to be references to the Department of
Revenue or an officer or employee thereof.
   + }  { +  SECTION 38. + }  { + The transfer of duties,
functions and powers to the Department of Revenue under this 1995
Act does not affect any action, suit, proceeding or prosecution
involving or with respect to those duties, functions and powers
begun before and pending at the time of the transfer, except that
the Department of Revenue shall be substituted for the Oregon
Liquor Control Commission in the action, suit, proceeding or
prosecution. + }
  SECTION 39.  { + (1) This 1995 Act does not relieve any person
of an obligation with respect to a tax, fee, fine or other
charge, interest, penalty, forfeiture or other liability, duty or
obligation accruing under or with respect to the duties,
functions and powers under ORS chapter 473 transferred by this
1995 Act. The Department of Revenue may undertake the collection
or enforcement of any such tax, fee, fine, charge, interest,
penalty, forfeiture or other liability, duty or obligation.
  (2) The rights and obligations of the Oregon Liquor Control
Commission legally incurred under contracts, leases and business
transactions executed, entered into or begun under the provisions
of ORS chapter 473 before the effective date of this 1995 Act are
transferred to the Department of Revenue. For the purpose of
succession to these rights and obligations, the Department of
Revenue is considered to be a continuation of the Oregon Liquor
Control Commission and not a new authority, and the Department of
Revenue shall exercise rights and fulfill obligations as if they
had not been transferred. + }
  SECTION 40.  { + There are transferred to the Department of
Revenue:
  (1) All the supplies, materials, equipment, records, books,
papers and facilities of the Oregon Liquor Control Commission
used in the administration of ORS chapter 473.
  (2) All the employees of the Oregon Liquor Control Commission
whose principal job duties relate to the administration of ORS
chapter 473, subject to the right of the Director of the
Department of Revenue to abolish positions and change duties to
the extent that the director finds it desirable for the sound,
efficient and economical administration and enforcement of the
duties, functions and powers transferred by this 1995 Act.
However, subject to the right of the director to abolish
positions and change duties under this subsection, in the case of
any transfer of personnel made under this subsection, an employee
occupying a classified position under the State Personnel
Relations Law who is so transferred shall retain the same salary
classification and civil service status insofar as is
possible. + }
  SECTION 41.  { + (1) The unexpended balances of amounts
authorized to be expended for the biennium beginning July 1,
1995, from revenues dedicated, continuously appropriated,
appropriated or otherwise made available for the purpose of
administering and enforcing the duties, functions and powers
under ORS chapter 473 transferred by this 1995 Act are
appropriated and transferred to and are available for expenditure
by the Department of Revenue, to the extent provided in
subsection (2) of this section, for the biennium beginning July
1, 1995.
  (2) For the purpose of administering and enforcing the duties,
functions and powers under ORS chapter 473 transferred by this
1995 Act and for the payment of the expenses lawfully incurred by
the Oregon Liquor Control Commission with respect to the
administration and enforcement of such duties, functions and
powers, the Department of Revenue may expend the money that is
authorized to be expended by the Oregon Liquor Control Commission
for administering and enforcing the duties, functions and powers
under ORS chapter 473 transferred by this 1995 Act and that is
unexpended on the effective date of this 1995 Act. The Department
of Revenue shall assume and pay all outstanding obligations
lawfully incurred by the Oregon Liquor Control Commission before
the effective date of this 1995 Act that properly are charged
against amounts authorized by this section to be expended by the
Department of Revenue. The expenditure classifications, if any,
established by Acts authorizing or limiting expenditures remain
applicable to expenditures by the Department of Revenue under
this section. + }
  SECTION 42. ORS 471.805 is amended to read:
  471.805. (1) Except as otherwise provided in ORS 471.810 (2),
all money collected by the  { + Oregon Liquor Control + }
Commission under this chapter  { - , ORS chapters 472 and 473 and
ORS 474.105 and 474.115 - }  { +  and ORS chapter 472, + } and
privilege taxes  { + collected by the Department of Revenue on
wine and malt beverages under ORS 473.030 (1) and ORS
473.040, + } shall be remitted to the State Treasurer who shall
credit it to a suspense account of the commission. Whenever the
commission determines that moneys have been received by it in
excess of the amount legally due and payable to the commission or
that it has received money to which it has no legal interest, or
that any license fee or deposit is properly refundable, the
commission is authorized and directed to refund such money by
check drawn upon the State Treasurer and charged to the suspense
account of the commission. After withholding refundable license
fees and such sum, not to exceed $250,000, as it considers
necessary as a revolving fund for a working cash balance for the
purpose of paying travel expenses, advances, other miscellaneous
bills and extraordinary items which are payable in cash
immediately upon presentation, the commission shall direct the
State Treasurer to transfer the money remaining in the suspense
account to the Oregon Liquor Control Commission Account in the
General Fund.
  (2) All necessary expenditures of the commission incurred in
carrying out the purposes and provisions required of the
commission by law, including the salaries of its employees,
purchases made by the commission and such sums necessary to
reimburse the $250,000 revolving fund, shall be audited and paid
from the Oregon Liquor Control Commission Account in the General
Fund, upon warrants drawn by the Oregon Department of
Administrative Services, pursuant to claims duly approved by the
commission.
  (3) Money produced by the operation of this chapter  { - , - }
 { + and + } ORS chapters 472 and 473   { - and ORS 474.105 and
474.115 - }  necessary to pay such expenditures is appropriated
from the Oregon Liquor Control Commission Account in the General
Fund for such purposes.
  SECTION 43. ORS 471.810 is amended to read:
  471.810. (1) At the end of each month, the commission shall
certify the amount of money available for distribution in the
Oregon Liquor Control Commission Account, and after withholding
such money as it may deem necessary to pay its outstanding
obligations shall within 35 days of the month for which a
distribution is made direct the State Treasurer to pay the
amounts due, upon warrants drawn by the Oregon Department of
Administrative Services, as follows:
  (a) Fifty-six percent, or the amount remaining after the
distribution under subsection (3) of this section, credited to
the General Fund available for general governmental purposes
wherein it shall be considered as revenue during the quarter
immediately preceding receipt;
  (b) Twenty percent to the cities of the state in such shares as
the population of each city bears to the population of the cities
of the state, as determined by the State Board of Higher
Education last preceding such apportionment, under ORS 190.510 to
190.610;
  (c) Ten percent to counties in such shares as their respective
populations bear to the total population of the state, as
estimated from time to time by the State Board of Higher
Education; and
  (d) Fourteen percent to the cities of the state to be
distributed as provided in ORS 221.770 and this section.
  (2) The commission { +   + }shall direct the Oregon Department
of Administrative Services to transfer 50 percent of the revenues
from the taxes imposed by ORS 473.030 { +  (1)  + }and 473.040
 { + on wine and malt beverages + } to the Mental Health
Alcoholism and Drug Services Account in the General Fund to be
paid monthly as provided in ORS 430.380.
  (3) Notwithstanding subsection (1) of this section, no city or
county shall receive for any fiscal year an amount less than the
amount distributed to the city or county in accordance with ORS
471.350 (1965 Replacement Part), 471.810, 473.190 and 473.210
(1965 Replacement Part) during the 1966-1967 fiscal year unless
the city or county had a decline in population as shown by its
census. If the population declined, the per capita distribution
to the city or county shall be not less than the total per capita
distribution during the 1966-1967 fiscal year. Any additional
funds required to maintain the level of distribution under this
subsection shall be paid from funds credited under subsection
(1)(a) of this section.
  SECTION 44. ORS 473.010 is amended to read:
  473.010. For the purposes of this chapter, unless the context
clearly indicates a different meaning:
    { - (1) 'Alcoholic beverages' means and includes any
fortified wine or similar fermented vinous liquor and fruit
juice, or other fermented beverage fit for beverage purposes,
containing more than one-half of one percent of alcohol by volume
and not more than 21 percent of alcohol by volume. - }
    { - (2) 'Commission' means the Oregon Liquor Control
Commission. - }
   { +  (1) 'Alcoholic liquor' means any alcoholic beverage
containing more than one-half of one percent alcohol by volume,
and every liquid or solid, patented or not, containing alcohol,
and capable of being consumed by a human being.
  (2) 'Department' means the Department of Revenue. + }
  (3) 'Malt beverages' means and includes beer, ale, porter,
stout and similar beverages obtained by the alcoholic
fermentation of an infusion or decoction of barley malt and hops
in drinking water and containing more than one-half of one
percent of alcohol by volume and not more than 14 percent of
alcohol by volume.
  (4) 'Manufacturer' means every person who produces, brews,
ferments, manufactures or blends an alcoholic beverage or a malt
beverage, or both, within this state, or who imports or causes to
be imported into this state an alcoholic beverage or a malt
beverage for use, sale or distribution within the state.
   { +  (5) 'Wine' means any wine containing not more than 21
percent of alcohol by volume and produced in all respects in
conformity with the laws of the United States and the regulations
of the Bureau of Alcohol, Tobacco and Firearms, Department of the
Treasury. + }
  SECTION 45. ORS 473.020 is amended to read:
  473.020.  { + (1) + } The   { - commission - }  { +  Department
of Revenue + } shall administer this chapter, and shall prescribe
forms and make such rules and regulations as it deems necessary
to enforce its provisions.
   { +  (2) All revenues from the taxes imposed by ORS 473.030
and 473.040 on alcoholic liquor other than wine and malt
beverages shall be transferred to the State Treasurer for deposit
in the General Fund and are available for general governmental
purposes.  All revenues from the taxes imposed by ORS 473.030 (1)
and 473.040 on wine and malt beverages shall be transferred to
the State Treasurer who shall credit it to the suspense account
created by ORS 471.805. + }
  SECTION 46. ORS 473.030 is amended to read:
  473.030. (1) A tax hereby is imposed upon the privilege of
engaging in business as a manufacturer or as an importing
distributor of   { - malt beverages - }  { +  alcoholic
liquor + } at the rate of
  { - $2.60 per barrel of 31 gallons on all such beverages - }
 { +  $11 per gallon of alcohol content of the alcoholic liquor
as measured by volume + }.
    { - (2) A tax hereby is imposed upon the privilege of
engaging in business as a manufacturer or as an importing
distributor of alcoholic beverages at the rate of 65 cents per
gallon on all such beverages. - }
    { - (3) In addition to the tax imposed by subsection (2) of
this section, alcoholic beverages containing more than 14 percent
of alcohol by volume and not more than 21 percent of alcohol by
volume shall be taxed at 10 cents per gallon. - }
    { - (4) - }  { +  (2) + } In addition to the   { - taxes
imposed by subsections (2) and (3) - }  { +  tax imposed by
subsection (1) + } of this section,
  { - alcoholic beverages - }  { +  wines + } containing not more
than 21 percent of alcohol by volume shall be taxed an additional
two cents per gallon. Notwithstanding any other provision of law,
all moneys collected by the   { - commission - }  { +  Department
of Revenue + } pursuant to this subsection shall be paid into the
Wine Advisory Board Account established under ORS 576.765.
    { - (5) The rates of tax imposed by this section upon malt
beverages apply proportionately to quantities in containers of
less capacity than those quantities specified in this
section. - }
    { - (6) - }  { +  (3) + } The taxes imposed by this section
shall be measured by the volume of   { - beverages - }  { +
alcoholic liquors + } produced, purchased or received by any
manufacturer. If the   { - beverage - }  { +  alcoholic
liquor + } remains unsold and in the possession of the producer
at the plant where it was produced, no tax imposed or levied by
this section is required to be paid until such   { - beverage - }
 { +  alcoholic liquor + } has become sufficiently aged for
marketing at retail, but this subsection shall not be construed
so as to alter or affect any provision of this chapter relating
to tax liens or the filing of statements.
  SECTION 47. ORS 473.040 is amended to read:
  473.040. (1) If the laws of another state, territory or nation,
or the rules and regulations of any administrative body therein:
  (a) Authorize or impose any tax, fee or charge upon the right
to transport or import into such state any   { - beer, malt
liquor or wine - }  { +  alcoholic liquor + } manufactured in
this state;
  (b) Authorize or impose any different warehousing requirements
or higher warehousing fees or inspection fees upon any
 { - beer, malt liquor or wine - }  { +  alcoholic liquor + }
manufactured in this state and imported into or sold in such
state, than are imposed upon   { - beer, malt liquor and wine - }
 { +  alcoholic liquor + } manufactured in such state; or
  (c) Impose any higher fee for the privilege of selling or
handling   { - beer, malt liquor or wine - }  { +  alcoholic
liquor + } manufactured in this state than is imposed for the
privilege of handling or selling the same kind of
 { - beverages - }  { +  alcoholic liquor + } manufactured within
such state or any other state,

the   { - commission - }  { +  Department of Revenue + } shall
levy and collect similar taxes, fees and charges from licensees
or persons selling in Oregon  { - , beer, malt liquor and
wine - }  { +  alcoholic liquor + } manufactured in such other
state, territory or nation.
  (2) The taxes, fees and charges authorized in this section are
in addition to the taxes, fees and charges authorized to be
assessed and collected by the   { - commission - }  { +
department + } under this chapter.
  SECTION 48. ORS 473.045 is amended to read:
  473.045. (1) A tax is hereby imposed upon the sale or use of
all agricultural products used in a winery for making wine.
  (2) The amount of the tax shall be $25 per ton of grapes of the
vinifera varieties, whether true or hybrid.
  (3) An equivalent tax is imposed upon the sale or use of
vinifera or hybrid grape products imported for use in a winery
licensed under ORS chapter 471   { - and ORS 474.105 and
474.115 - }  for making wine. Such tax shall be $25 per ton of
grapes used to produce the imported grape product. The tax shall
be determined on the basis of one ton of grapes for each 150
gallons of wine made from such vinifera or hybrid grape products.
  (4) A tax on the sale or use of products that are not subject
to subsection (2) or (3) of this section that are used to make
wine in this state shall be imposed at a rate of $.021 per gallon
of wine made from those products.
  (5) In the case of vinifera or hybrid grape products harvested
in this state, $12.50 of such tax shall be levied and assessed
against the person selling or providing such grape products to
the winery. If the purchasing winery is licensed under ORS
chapter 471   { - and ORS 474.105 and 474.115 - } , that winery
shall deduct the tax levied under this subsection from the price
paid to the seller. If the purchasing winery is not licensed
under ORS chapter 471   { - and ORS 474.105 and 474.115 - } , the
seller shall report all sales on forms provided by the State
Department of Agriculture and pay $12.50 per ton as a tax
directly to the department.
  (6) Except for the tax specified in subsection (4) of this
section the taxes specified under this section shall be levied
and assessed to the licensed winery at the time of purchase of
the product by the winery or of importation of the product,
whichever is later. The tax specified in subsection (4) of this
section shall be levied and assessed to the licensed winery at
the time the wine is made.
  (7) Except for taxes to be paid to the State Department of
Agriculture pursuant to subsection (5) of this section, the taxes
imposed by this section shall be paid by the licensed winery and
collected by the   { - Oregon Liquor Control Commission - }  { +
Department of Revenue + } subject to the same powers as taxes
imposed and collected under ORS chapter 473. Taxes to be paid by
sellers under subsection (5) of this section shall be collected
by the State Department of Agriculture in the manner provided in
ORS 576.345 to 576.365. Failure to pay the tax subjects the
violator to the same penalty as provided in ORS 576.991 (2) for
failure to pay assessments to the department as required by ORS
576.345 to 576.365. The tax obligation for a calendar year shall
be paid in two installments. Half shall be due on December 31 of
the current calendar year. The remaining half shall be due the
following June 30.
  SECTION 49. ORS 473.050 is amended to read:
  473.050. In computing any privilege tax imposed by ORS 473.030
or 473.040:
  (1) No   { - malt beverage or - }  alcoholic   { - beverage - }
 { +  liquor + } is subject to tax more than once.
  (2) No tax shall be levied, collected or imposed upon any
  { - malt beverage or - }  alcoholic   { - beverage sold to the
commission or - }  { +  liquor + } exported from the state.
  (3) No tax shall be levied, collected or imposed upon any malt
beverage given away and consumed on the licensed premises of a
brewery licensee, or sold to or by a voluntary nonincorporated
organization of army, air corps or navy personnel operating a
place for the sale of goods pursuant to regulations promulgated
by the proper authority of each such service.
  (4) No tax shall be levied, collected or imposed upon any
  { - malt beverage or - }  alcoholic   { - beverage - }  { +
liquor + } determined by the commission { +   + }to be unfit for
human consumption or unsalable.
  (5) No tax shall be levied, collected or imposed upon the first
40,000 gallons, or 151,000 liters, of   { - alcoholic
beverage - }  { +  wine + } sold annually in Oregon from a United
States manufacturer of
  { - alcoholic beverages - }  { +  wine + } producing less than
100,000 gallons, or 379,000 liters, annually.
  SECTION 50. ORS 473.060 is amended to read:
  473.060. The privilege taxes imposed by ORS 473.030 and 473.040
shall be paid to the   { - commission - }  { +  Department of
Revenue + }.  The taxes covering the periods for which statements
are required to be rendered by ORS 473.070 shall be paid before
the time for filing such statements expires or, as concerns
 { - alcoholic beverages - }  { +  wine + }, on or before the
20th day of the month after such
  { - beverages have - }  { +  wine has + } been withdrawn from
federal bond. If not so paid, a penalty of 10 percent and
interest at the rate of one percent a month or fraction of a
month shall be added and collected. The   { - commission - }
 { +  department + } may refund any tax payment imposed upon or
paid in error by any licensee, and may waive the collection or
refund the payment of any tax imposed and collected on alcoholic
liquor subsequently exported from this state, sold to a federal
instrumentality   { - or to the commission, - }  or determined by
the commission to be unfit for human consumption or unsalable.
  SECTION 51. ORS 473.070 is amended to read:
  473.070. On or before the 20th day of each month, every
manufacturer shall render to the   { - commission - }  { +
Department of Revenue + } a statement of the quantity of
alcoholic   { - beverages and malt beverages - }  { +
liquors + } produced, purchased or received by the manufacturer
during the preceding calendar month.
  SECTION 52. ORS 473.080 is amended to read:
  473.080. If any manufacturer fails, neglects or refuses to file
a statement required by ORS 473.070 or files a false statement,
the   { - commission - }  { +  Department of Revenue + } shall
estimate the amount of alcoholic   { - beverages and malt
beverages - }  { +  liquors + } produced, purchased or received
by the manufacturer and assess the privilege tax thereon. Such
manufacturer shall be estopped from complaining of the amount so
estimated.
  SECTION 53. ORS 473.090 is amended to read:
  473.090. The privilege tax required to be paid by ORS 473.030
and 473.040 constitutes a lien upon, and has the effect of an
execution duly levied against, any and all property of the
manufacturer, attaching at the time the   { - beverages - }  { +
alcoholic liquor + } subject to the tax   { - were - }  { +
is + } produced, purchased or received, as the case may be, and
remaining until the tax is paid or the property sold in payment
thereof. The lien created by this section is paramount to all
private liens or encumbrances.
  SECTION 54. ORS 473.100 is amended to read:
  473.100. (1) Whenever any manufacturer is delinquent in the
payment of the privilege tax provided for in ORS 473.030 and
473.040, the   { - commission - }  { +  Department of Revenue + }
or its duly authorized representative shall seize any property
subject to the tax and sell, at public auction, property so
seized, or a sufficient portion thereof to pay the privilege tax
due, together with any penalties imposed under ORS 473.060 for
such delinquency and all costs incurred on account of the seizure
and sale.
  (2) Written notice of the intended sale and the time and place
thereof, shall be given to such delinquent manufacturer and to
all persons appearing of record to have an interest in the
property, at least 10 days before the date set for the sale. The
notice shall be enclosed in an envelope addressed to the
manufacturer at the last-known residence or place of business of
the manufacturer in this state, if any; and in the case of any
person appearing of record to have an interest in such property,
addressed to such person at the last-known place of residence of
the person, if any. The envelope shall be deposited in the United
States mail, postage prepaid. In addition, notice shall be
published for at least 10 days before the date set for such sale,
in a newspaper of general circulation published in the county in
which the property seized is to be sold. If there is no newspaper
of general circulation in such county, the notice shall be posted
in three public places in such county for the 10-day period. The
notice shall contain a description of the property to be sold, a
statement of the amount of the privilege taxes, penalties and
costs, the name of the manufacturer and the further statement
that, unless the privilege taxes, penalties and costs are paid on
or before the time fixed in the notice for the sale, the
property, or so much thereof as may be necessary, will be sold in
accordance with law and the notice.
  SECTION 55. ORS 473.110 is amended to read:
  473.110. At the sale { +  described in ORS 473.100 + }, the
property shall be sold by the   { - commission - }  { +
Department of Revenue + } or by its duly authorized agent in
accordance with law and the notice. The
  { - commission - }  { +  department + } shall deliver to the
purchaser a bill of sale for the personal property, and a deed
for any real property so sold. The bill of sale or deed vests
title in the purchaser.  The unsold portion of any property
seized under ORS 473.100 may be left at the place of sale at the
risk of the manufacturer. If upon any such sale, the money
received exceeds the amount of all privilege taxes, penalties and
costs due the state from the manufacturer, the excess shall be
returned to the manufacturer, and a receipt therefor obtained.
However, if any person having an interest in or lien upon the
property has filed with the
  { - commission - }  { +  department + }, prior to the sale,
notice of interest or lien, the   { - commission - }  { +
department + } shall withhold any such excess pending a
determination of the rights of the respective parties thereto by
a court of competent jurisdiction. If the receipt of the
manufacturer is not available, the   { - commission - }  { +
department + } shall deposit such excess money with the State
Treasurer, as trustee for the owner, subject to the order of the
manufacturer, the heirs, successors or assigns of the
manufacturer.
  SECTION 56. ORS 473.120 is amended to read:
  473.120. (1) The   { - commission - }  { +  Department of
Revenue + } shall immediately transmit notice of the delinquency
mentioned in ORS 473.100 to the Attorney General. The Attorney
General shall at once proceed to collect all sums due to the
state from the manufacturer under this chapter by bringing suit
against the necessary parties to effect forfeiture of the bonds
of the manufacturer, reducing any deficiency to judgment against
the manufacturer.
  (2) The remedies of the state provided in ORS 473.090 to
473.120 are cumulative and no action taken by the
 { - commission - }  { +  department + } or Attorney General
constitutes an election on the part of the state or any of its
officers to pursue one remedy to the exclusion of any other
remedy provided in this chapter.
  SECTION 57. ORS 473.130 is amended to read:
  473.130. In any suit brought to enforce the rights of the
state, the assessment made by the   { - commission - }  { +
Department of Revenue + } under ORS 473.080, or a copy of so much
thereof as is applicable in such suit, duly certified by the
 { - commission - }  { +  department + } and showing unpaid
privilege taxes assessed against any manufacturer, is prima facie
evidence:
  (1) Of the assessment of the privilege tax and the delinquency
thereof.
  (2) Of the amount of the privilege tax, interest, penalties and
costs due and unpaid to the state.
  (3) That the manufacturer is indebted to this state in the
amount of such privilege tax, interest and penalties therein
appearing unpaid.
  (4) That the law relating to assessment and levy of such
privilege tax has been fully complied with by all persons
required to perform administrative duties under this chapter.
  SECTION 58. ORS 473.140 is amended to read:
  473.140. Every manufacturer shall keep a complete and accurate
record of all sales of alcoholic   { - beverages and malt
beverages - }  { +  liquor + }, a complete and accurate record of
the number of gallons imported, produced, purchased,
manufactured, brewed or fermented, and the date of importation,
production, purchase, manufacturing, brewing or fermentation. The
records shall be in such form and contain such other information
as the   { - commission - }  { +  Department of Revenue + } may
prescribe. The   { - commission - }  { +  department + }, by rule
or regulation, may require the delivery of statements by
distributors to purchasers, with alcoholic   { - beverages and
malt beverages - }  { +  liquor + }, and prescribe the matters to
be contained therein. Such records and statements shall be
preserved by the distributor and the purchaser respectively, for
a period of two years, and shall be offered for inspection at any
time upon oral or written demand by the   { - commission - }
 { +  department + } or its duly authorized agents.
  SECTION 59. ORS 473.150 is amended to read:
  473.150. (1) The   { - commission - }  { +  Department of
Revenue + } may, at any time, examine the books and records of
any manufacturer and may appoint such auditors, investigators and
other employees as it deems necessary to enforce its powers and
perform its duties under this section.
  (2) Every manufacturer shall maintain and keep, within this
state for two years, all records, books and accounts required by
this chapter.
  SECTION 60. ORS 473.160 is amended to read:
  473.160. Every person transporting alcoholic   { - beverages or
malt beverages - }  { +  liquors + } within this state, whether
such transportation originates within or without this state,
shall keep a true and accurate record of all such
 { - beverages - }  { +  alcoholic liquors + } transported. The
record shall include ingredients which may be used in the
manufacture, production, brewing or fermentation of the
 { - beverages - }  { +  alcoholic liquors + }, showing such
facts with relation to such   { - beverages - }  { +  alcoholic
liquors + }, their ingredients and their transportation, as the
 { - commission - }  { +  Department of Revenue + } may require.
Such records shall be open to inspection by the representative of
the   { - commission - }  { +  department + } at any time. The
 { - commission - }  { +  department + } may require from any
such person sworn returns of all or any part of the information
shown by such records.
  SECTION 61. ORS 473.170 is amended to read:
  473.170. (1) No manufacturer shall:
  (a) Fail to pay the privilege tax prescribed in ORS 473.030 and
473.040 when it is due; or
  (b) Falsify the statement required by ORS 473.070.
  (2) No person shall:
  (a) Refuse to permit the   { - commission - }  { +  Department
of Revenue + } or any of its representatives to make an
inspection of the books and records authorized by ORS 473.140 to
473.160;
  (b) Fail to keep books of account prescribed by the
  { - commission - }  { +  department + } or required by this
chapter;
  (c) Fail to preserve such books for two years for inspection of
the   { - commission - }  { +  department + }; or
  (d) Alter, cancel or obliterate entries in such books of
account for the purpose of falsifying any record required by this
chapter to be made, maintained or preserved.
  SECTION 62. ORS 576.765 is amended to read:
  576.765. (1) There is established in the General Fund of the
State Treasury a Wine Advisory Board Account. Funds collected
pursuant to ORS 473.030 { +  (2) + } and 473.045 shall be
credited to such account and shall be continuously appropriated
exclusively for the expenses of the Wine Advisory Board. In any
fiscal year the board shall budget, from funds other than fees
collected by the Wine Advisory Board, at least one-third of its
funds towards research and development and at least one-third
towards promotion and marketing including administrative costs
associated with either category.
  (2) All funds collected pursuant to ORS 473.030   { - (4) - }
 { +  (2) + } shall be credited to the account and are
appropriated continuously to the Wine Advisory Board for the
payment of expenses of any duty, function or power imposed by law
upon the board.
  SECTION 63. ORS 471.990 is amended to read:
  471.990. (1) Except where other punishment is specifically
provided for, violation of any provision of this chapter and ORS
474.105 and 474.115 is a misdemeanor.
  (2) Except as otherwise specifically provided, municipal,
justices', district and circuit courts have concurrent
jurisdiction of all violations of this chapter and ORS 474.105
and 474.115 committed within their respective jurisdictions.
  (3) A second or subsequent violation of ORS 471.440 is
punishable upon conviction by imprisonment in the custody of the
Department of Corrections for not more than three years and by a
fine of not more than $3,000.
  (4) Violation of any regulation promulgated under ORS 471.730
  { - (5) - }   { + (3) + } is punishable upon conviction by a
fine of not more than $200.
  SECTION 64.  { + The amendments to ORS 471.705 by section 26 of
this Act do not affect the term of any commissioner serving on
the Oregon Liquor Control Commission on the effective date of
this Act. Notwithstanding ORS 471.705, the Governor shall not
appoint replacements upon the completion of the terms of the two
commissioners whose terms on the commission next expire after the
effective date of this Act. Any person appointed to the
commission thereafter must meet the requirements of ORS 471.705
as amended by section 26 of this Act. + }
  SECTION 65.  { + ORS 471.285, 471.740, 471.745, 471.750,
471.752 and 471.780 are repealed. + }
  SECTION 66.  { + This Act takes effect January 1, 1996. + }
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