Monthly Archives: June 2015

The Oregon Distillery License Privileges Have Been Changed

The Oregon Distillery License Privileges Have Been Changed

House Bill 2567 passed the Oregon Legislature earlier this year and became effective June 25, 2015.

Inter-distillery Sales Allowed.  Oregon distillery licensees may purchase from, and sell distilled liquor to, another distillery licensee in containers having a capacity greater than one gallon for blending and manufacturing purposes. The provision that allowed distillery licensees to purchase alcoholic beverages for blending and manufacturing purposes from the Liquor Control Commission is removed. A distillery licensee must hold a valid distilled spirits basic permit from the Federal Alcohol and Tobacco Tax and Trade Bureau for the licensed premises.

Tasting Privileges Clarified and Expanded.  Tastings may be of the distilled liquor alone or with a mix of other liquids. If any of the other liquids are distilled liquors, they must be distilled liquors on the list of products approved by the commission for retail sale in Oregon and must be purchased by the licensee at the retail price established by the commission.  Oregon distilleries can now offer tastings of spirits manufactured in Oregon by another distillery. Sales by the drink are not authorized by Oregon’s distillery license.  More than one distillery licensee may use the same premises at the same time for conducting tastings if the premises are a primary production location shared by the licensees (i.e. “alternating proprietors”) or the licenses are owned by the same entity. A distillery retail outlet agent may make sales of approved distilled liquor at locations where tasting is allowed as specified.

Special Event Privileges Clarified and Expanded.  Oregon distillery licensees may obtain special events distillery licenses for events for a period of up to five days.  Special event distillery licensees are limited to hosting such events at the same location to not more than 6 days during a calendar year.  Such licensees may offer tastings or make sales by the drink of distilled liquor that the licensee manufactured in Oregon provided that the spirit is on the list of products approved by the OLCC for retail sale in Oregon.  If the distillery licensee has been appointed as a distillery retail outlet agent, the special event distillery licensee may sell distilled spirits in factory-sealed containers to go at the retail price set by the OLCC for the month of sale.

Small Brewer Distribution Bill Passes

Small Brewer Distribution Bill Passes: Signed by Governor on June 16, 2015

OLCC

The Governor signed S.B. 138 today.  The legislation will permit brewery-public house licensees to sell at wholesale and distribute up to 7,500 barrels of malt beverages per year produced by the licensee to other licensees of the Oregon Liquor Control Commission (the “OLCC“).  It will also allow brewery-public house licensees to distribute any amount of malt beverages manufactured at the licensee’s premises to any other manufacturer, wholesaler or retail premises licensed to the same licensee and allow brewery-public house licensees to distribute for export any amount of malt beverages manufactured at the licensee’s premises.

 

Guest Presenter at Portland State University’s Business of Craft Brewing Program

Guest Presenter at Portland State University’s Business of Craft Brewing Program

PSU Craft Brew

It’s no longer a secret that Portland State University has a great Business of Craft Brewing program. Check their program out here.

I was lucky enough to be asked to be a guest presenter for the program last night.  I gave a talk on “The Regulatory Environment: the TTB, State ABC’s, and the Three Tier System.”  The students were fantastic and the program was truly interactive.  We have a nice crop of future brewers learning how to succeed as a craft brewer.

Thank you to Marcus Reed of Craft Brew Alliance and Maria Young of Radix Accounting for inviting me to speak!

 

Brewery-Public House License Privileges Expanded

Brewery-Public House License Privileges Expanded

Senate Bill 138 passed the Oregon Legislature earlier this year.

Effective January 1, 2016, an Oregon brewery-public house licensee (a “BPH”) is allowed to: (1) distribute malt beverages manufactured at the licensed premises to any other premises licensed to the same licensee, whether a manufacturer, wholesaler, or retail premises, and (2) distribute for export any amount of malt beverages manufactured at the licensed premises.

In any calendar year, a BPH may sell at wholesale and distribute to licensees no more than 7,500 barrels of malt beverages produced by the licensee. Currently, in any calendar year, a BPH may sell at wholesale to licensees malt beverages produced by the licensee if the licensee produced 5,000 barrels or less of malt beverages in the immediately preceding calendar year.

 

Senator Wyden Sponsors the Craft Beverage Modernization and Tax Reform Act

Senator Wyden Sponsors the Craft Beverage Modernization and Tax Reform Act

Sen. Ron Wyden, D-Ore., has introduced legislation that would promote continued job creation in the growing craft beverage, cider, wine and distillery industries throughout Oregon and the country.

The Craft Beverage Modernization and Tax Reform Act, S.1562, would cut taxes and modernize outdated regulations for craft brewers, cider makers, vintners, and distillers.

In Oregon, wineries, breweries and distilleries are responsible for an estimated 40,000 jobs collectively and generate about $6 billion annually in revenue.

In addition to providing tax relief for Oregon’s wineries, breweries and distillers, this legislation would also reduce compliance burdens for craft beverage producers by exempting nearly 90 percent of all industry members from complex bonding and bi-weekly tax filing requirements.  The bill would exempt aged beers, ciders, wines, and spirits from complicated and burdensome accounting rules.  It would reform rules on brewers to encourage more collaboration and streamline regulations.  And it would equalize the playing field for all distilled spirits producers.  Finally, this bill would cut administrative backlogs by ensuring the Alcohol and Tobacco Tax and Trade Bureau, which is charged with regulating these industries, is sufficiently funded.  Having a more fully staffed TTB would likely have a big impact on how long it took for a new business to start up.  Additional enforcement funding and authority would help offset the cost of this bill by cracking down on tax cheats.