Current through Register Vol. 63, No. 9, September 1, 2024
ORS 471.230 authorizes the
Commission to issue a Special Events Distillery (SED) license to an Oregon
Distillery licensee. This rule sets the qualifications and requirements for a
Special Events Distillery license.
(1)
Definitions. For this rule:
(a) "Bar" means a
counter at which the preparation, pouring, serving, sale, or consumption of
alcoholic beverages is the primary activity;
(b) "Food counter" means a counter in an area
in which minors are allowed and at which the primary activity at all times is
the preparation, serving, sale, or consumption of food;
(c) "License day" means from 7:00 am until
2:30 am on the succeeding calendar day. The license fee is $10.00 per license
day or any part of a license day.
(d) "Manufactured by the distillery licensee"
means the licensee distills, rectifies, blends, or otherwise produces the
distilled liquor product on the distillery licensed premises in
Oregon.
(e) "Serious violation
history" means:
(A) Two or more category III
or IIIa administrative violations of any type, or category IV violations
involving minors. However, if the circumstances of a violation include
aggravation, one violation may be sufficient; or
(B) One category I, II, or IIa administrative
violation; or
(C) Two or more
crimes or offenses involving liquor laws.
(f) "Social game" means a game other than a
lottery, if authorized by a local county or city ordinance pursuant to ORS
167.121, between players in a
private business, private club, or place of public accommodation where no house
player, house bank, or house odds exist and there is no house income from the
operation of the social game.
(g)
"Trade visitor" means a person whose job includes the purchase, or recommended
purchase, of distilled spirits by a licensee of the Commission or distributors
and others in the commercial distribution chain; or a person representing an
agency of mass communication, such as television, radio, newspaper, magazine,
and internet.
(h) "Video lottery
game" means a video lottery game terminal authorized by the Oregon State
Lottery. Examples include but are not limited to video poker and video slots.
Keno monitors are not considered a video lottery game.
(2) Only the holder of a Distillery license
issued under ORS 471.230 may qualify for a
Special Events Distillery license.
(a) A
distillery licensee providing tastings of distilled liquor for retailers at an
educational seminar that is not open to the public is not required to obtain a
SED and is subject to OAR
845-013-0060.
(b) A distillery licensee providing tastings
of distilled liquor at a retail liquor store must follow OAR
845-015-0155. A distillery
licensee is not eligible for a SED at a retail liquor
store.
(3) The Commission
will not approve more than five license days on a single application. The
Commission may limit approval of any application to a single license day or to
any number of license days fewer than five days.
(4) Applicants must apply in writing for a
Special Events Distillery license, using the application form provided by the
Commission. The Commission may require additional forms, documents, or
information as part of the application. The Commission may refuse to process
any application not complete, not accompanied by the documents or disclosures
required by the form or the Commission, or that does not allow the Commission
sufficient time to investigate it. Sufficient time is typically one to three
weeks prior to the event date. The Commission may give applicants the
opportunity to be heard if the Commission refuses to process an application. A
hearing under this subsection is not subject to the requirements for contested
case proceeding under ORS
183.310 to
183.550.
(5) The application for a SED license under
this rule shall include:
(a) A written, dated,
and signed plan. An application is not complete if this plan is not approved by
the Commission. To approve a plan, the Commission must determine that the plan
adequately manages:
(A) The event to prevent
problems and violations;
(B)
Patronage by minors as set out in subsection (6) of this rule; and
(C) Alcohol consumption by adults.
(b) Identification of the
individuals to be employed by the licensee to manage events on the SED licensed
premises;
(c) Identification of the
premises or area proposed to be licensed;
(d) Statement of the type of event to be
licensed, type and extent of entertainment to be offered, expected patronage
overall and by minors, and proposed hours of operation;
(e) A description of how the licensee will
distinguish trade visitors from members of the general public, such as by
providing tastings for trade visitors in separate areas or at separate times
from tastings for the general public, by using distinctive glassware for trade
visitors, or by the use of badges or name tags;
(f) The recommendation in writing of the
local governing body where the licensed premises will be located; and
(g) License fees as established by ORS
471.311.
(h) If the licensee will provide distilled
liquor by the drink, a written proposal showing compliance with the food
service standards of OAR
845-006-0465.
(6) A plan for managing patronage by minors
under subsection (5)(a) of this rule must meet the following requirements:
(a) If the SED license will be on any part of
a premises, room, or area with an annual license issued by the Commission, the
Commission must be convinced that the plan will follow the minor posting and
control plan, including any temporary relaxation of the minor posting, assigned
to that premises, room, or area under the annual license. The Commission must
also be convinced that the plan will prevent minors from gaining access to
alcoholic beverages and any portion of the licensed premises prohibited to
minors.
(b) If the SED license will
not be on any part of a premises, room, or area with an annual license issued
by the Commission, the Commission must be convinced that the plan will prevent
minors from gaining access to alcoholic beverages and any portion of the
licensed premises the Commission prohibits to minors.
(7) Minors are prohibited from the SED
licensed premises or portions of the licensed premises as follows:
(a) Minors may not sit or stand at a bar;
however, minors may sit or stand at a food counter;
(b) Minors may not be in an area where there
are video lottery games, social games, or nude entertainment or where such
activities are visible;
(c) Minors
may not be in an area where the licensee's approved written plan designates
that minors will be excluded.
(8) The Commission may deny, cancel or
restrict a SED license for any reason for which the Commission may deny, cancel
or restrict a regular license.
(9)
The Commission may deny or restrict a SED license if the applicant has a
serious violation history at events previously licensed with a special license
within the past 36 months.
(10) The
Commission shall limit the issuance of a SED license to the same applicant at
the same location to no more than 62 license days from January 1 to December 31
of each year.
(11) The Commission
may refund the SED license fee if the application is withdrawn by the applicant
or denied by the Commission, or if the event does not take place because of
circumstances beyond the licensees control, or if the Commission determines the
applicant does not need a license for the event proposed in the
application.
(12) When the
Commission approves a written plan under subsection (5)(a) of this rule, the
licensee must follow that written plan. Failure to follow that written plan is
a Category III violation.
(13) If
the licensee fails to prevent minors from gaining access to alcoholic beverages
or fails to prevent minors from gaining access to any portion of the licensed
premises prohibited to minors, the Commission may immediately prohibit minors
from the licensed premises or portion(s) of the premises.
(14) A distillery licensee with a SED may:
(a) Permit tastings of distilled liquor
approved by the Commission for sale in Oregon The taste must contain distilled
liquor manufactured in Oregon by the distillery licensee. Once the taste
contains distilled liquor manufactured in Oregon by the distillery licensee,
the taste may contain other distilled liquor approved by the Commission for
sale in Oregon and may also include malt beverages, wine, cider, and
non-alcoholic liquids.
(A) The distillery
licensee must pay the Commission a processing fee for any distilled liquor in
the taste that is manufactured by the distillery licensee and is obtained from
the inventory of the Commission.
(B) The distillery licensee must purchase at
the retail price set by the Commission any distilled liquor in the taste that
was not manufactured by the distillery licensee.
(b) Permit sales by the drink of distilled
liquor approved by the Commission for sale in Oregon. The drink must contain
distilled liquor manufactured in Oregon by the distillery licensee. Once the
drink contains distilled liquor manufactured in Oregon by the distillery
licensee, the drink may contain other distilled liquor approved by the
Commission for sale in Oregon and may also include malt beverages, wine, cider,
and non-alcoholic liquids. The distillery licensee must purchase the distilled
liquor that the licensee uses for sales by the drink at the event at the retail
price set by the Commission for the month in which the distilled liquor is sold
by the drink.
(c) If the distillery
licensee has been appointed as a distillery retail outlet agent, sell
factory-sealed containers of distilled liquor manufactured by the licensee for
consumption off the licensed premises of the event. The distillery licensee
must purchase and sell the factory-sealed containers in accordance with the
terms of the Distillery Retail Outlet Agent Agreement and the Commission's
Distillery Retail Outlet Manual.
(15) Tastings provided to the general public.
(a) A tasting provided to the general public
shall be no more than one-half fluid ounce of distilled liquor in a single
container. The container may also contain malt beverage, wine, cider, and
nonalcoholic beverages; however, the total amount of liquid in the container
may be no more than two ounces. A licensee may charge a member of the general
public a fee for tastings.
(b) A
distillery licensee shall not provide more than two and one-half fluid ounces
of distilled liquor per person per license day.
(16) Tastings provided to a trade visitor.
(a) A tasting provided to a trade visitor
shall be no more than one fluid ounce of distilled liquor in a single
container. The container may also contain malt beverage, wine, cider, and
nonalcoholic beverages; however, the total amount of liquid in the container
may be no more than three ounces. A licensee may not charge a trade visitor a
fee for tastings.
(b) There is no
daily limit on distilled liquor tastings provided to a trade visitor.
(c) Trade visitors must be distinguished from
members of the general public. For example, providing tastings for trade
visitors in separate areas or at separate times from tastings for the general
public, using distinctive glassware for trade visitors, or using badges or name
tags to identify trade visitors could be ways a licensee complies with this
requirement.
Statutory/Other Authority: ORS 471,
471.030,
471.040,
471.730(1) &
(5)
Statutes/Other Implemented: ORS
471.230
