Current through Register Vol. 63, No. 12, December 1, 2024
(1)
"Custom order agreement" means an agreement whereby a Brewery or Brewery-Public
House licensee agrees to produce or manufacture malt beverages based on certain
specifications for a commission licensee authorized by the commission to
receive the malt beverages under a custom order agreement.
(2) Malt beverages produced or manufactured
under a custom order agreement are produced or manufactured by the producing
Brewery or Brewery-Public House licensee and not by the receiving
licensee.
(3) Privilege taxes for
malt beverages produced or manufactured under a custom order agreement are due
from the producing licensee when the producing licensee sells or transfers the
malt beverage to the receiving licensee. Despite this requirement, the
producing licensee may qualify for nonpayment of privilege taxes under ORS
473.050.
(4) A Brewery licensee:
(a) May not use a custom order agreement to
produce or manufacture malt beverages for a retail licensee as defined in ORS
471.392. Despite this
requirement, a Brewery licensee may use a custom order agreement to produce or
manufacture malt beverages for a Full On-Premises Sales licensee licensed to
the same licensee of record as the Brewery licensee.
(b) May use a custom order agreement to
produce or manufacture malt beverages for a Brewery-Public House licensee. The
custom order agreement must be in writing and both parties must comply with ORS
471.398. The custom order
agreement does not absolve the receiving Brewery-Public House licensee from
complying with all other laws and rules regulated by the commission. The custom
order agreement must identify the malt beverage by a specific formula and it
must identify a defined period of time for the agreement that is no longer than
60 days from production to delivery of the malt beverage to the receiving
licensee. The agreement may not allow the producing Brewery licensee to store
the malt beverage longer than the 60 day time period. The Brewery licensee and
Brewery-Public House licensee shall provide the written custom order agreement
to the Commission within 10 calendar days of the Commission's request for the
agreement.
(c) May use a custom
order agreement to produce or manufacture malt beverages for a manufacturer or
wholesaler as defined in ORS
471.392.
(d) A violation of this section is a Category
III violation.
(5) A
Brewery-Public House Licensee:
(a) May not
use a custom order agreement to produce or manufacture malt beverages for a
retail licensee as defined in ORS
471.392. Despite this
requirement, a Brewery-Public House licensee may use a custom order agreement
to produce or manufacture malt beverages for a retail premises licensed to the
same licensee of record as the Brewery-Public House licensee.
(b) May use a custom order agreement to
produce or manufacture malt beverages for a different Brewery-Public House
licensee. The custom order agreement must be in writing and both parties must
comply with ORS 471.398. The custom order
agreement does not absolve the receiving Brewery-Public House licensee from
complying with all other laws and rules regulated by the commission. The custom
order agreement must identify the malt beverage by a specific formula and it
must identify a defined period of time for the agreement that is no longer than
60 days from production to delivery of the malt beverage to the receiving
licensee. The agreement may not allow the producing Brewery-Public House
licensee to store the malt beverage longer than the 60 day time period. The
producing Brewery-Public House licensee and receiving Brewery-Public House
licensee shall provide the written custom order agreement to the Commission
within 10 calendar days of the Commission's request for the
agreement.
(c) May use a custom
order agreement to produce or manufacture malt beverages for a manufacturer or
wholesaler as defined in ORS
471.392. The custom order
agreement must be in writing and both parties must Page 10 of 15 comply with
ORS 471.398. The Brewery-Public
House licensee and receiving licensee shall provide the written custom order
agreement to the Commission within 10 calendar days of the Commission's request
for the agreement.
(d) A violation
of this section is a Category III violation.
Statutory/Other Authority: 2019 OL Ch. 373
