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. + } ----------