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Oregon Joins the Bandwagon Prohibiting Powdered Alcohol

Oregon Joins the Bandwagon Prohibiting Powdered Alcohol

The Oregon Legislature passed a pre-emptive ban on sales of powdered alcohol earlier this year.  They were worried that the substance could fall into the hands of unruly teenagers.

Powdered alcohol is a freeze-dried dust (think Crystal Light or Tang) that turns into a cocktail when water is added.  Palcohol, the company behind the idea, designed it as a way for campers, backpackers, and airline travelers to pack a lightweight cocktail for the journey, but creative teens were thought to have more creative uses in mind.

It comes in powdered rum, vodka, “Powderita,” and cosmopolitan mixes.  Sales in the U.S. will begin sometime this summer, according to the company’s website.  Despite its ambiguous potential, lawmakers worry the product could make it easier for teenagers to sneak adult beverages or to snort the alcoholic powder. Six states have already banned it (and that number will likely go up), and lawmakers in 28 others are considering similar bills (very likely to go up).

Change your camping plans accordingly.

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.

Presenter at Oregon State University’s Craft Brewery Startup Workshop

OSU Craft BreweryPresenter at Oregon State University’s Craft Brewery Startup Workshop: May 11, 2015.

I was invited back for another year!  I gave a presentation on “Craft Brewing: the Regulatory Environment.”

The program was fantastic and the students were fully engaged.  Thanks again for another great year.  We covered the history of alcohol regulatory law in the U.S., key issues in the current regulatory environment, the basics of obtaining a TTB Brewer’s Notice and state brewpub license, tax and reporting requirements, COLA’s, distribution agreements, and best practices in compliance.  Three hours of fun!

Presentation at the National Craft Brewers Conference: Strength Through Flexibility: The Three Tier System of the Future?

CBC 2015Presentation at the National Craft Brewers Conference: Strength Through Flexibility: The Three Tier System of the Future?

Portland was full of brewers this April at the 2015 Craft Brewers Conference.  It was amazing.  With over 11,000 attendees and 600 vendors, one day was just not enough.

 We had an engaging conversation with the 100 or so attendees about the current three tier system and how it may involve in the future.  Some may say it was a bit academic, but we had a great time.

I’d like to thank my co-presenters: R.J. O’Hara from Flaherty & O’Hara and Tuck Duncan from Tuck Duncan Law.

Portland Bar Academy on Monday December 1, 2014

Portland Bar Academy on Monday December 1, 2014

Old Town

The Portland Bar Academy (PBA) is a one-day workshop for bar owners, managers, bartenders, servers and security staff.

I will be presenting with Rob Hoover (from the Fournier Group) on the top ten OLCC violations, dram shop and general liability, and the relationship between administrative violations and liability.  We will also focus on practical steps to reduce the risk of administrative violations and liability.

The purpose of the workshop is to bring together all of those involved in Portland’s bar and nightlife to share information, ideas and experiences, and to shape Portland’s nightlife and entertainment for the future.

Participants can attend any session from the three tracks of classes designed for owners/managers, bartenders/servers and security staff. Each class focuses on a critical topic which is facilitated by an expert in his/her field.

See full schedule here and excerpt below.

BAR OWNERS & MANAGERS

11:00 a.m. – 11:50 p.m. 
Raising the Bar
Presenter: Old Town Hospitality Group
Nikki Jones, Jones Bar & The Boiler Room
Dan Lenzen, Dixie Tavern: Dave Leiken, Roseland Theater
Luke Bradley, 5th Ave. Lounge: Tracey Murphy, Kell’s Irish Pub

Description:
Interactive forum on the use and benefits of implementing best practices in your establishment. Network with other bar owners/GMs and discuss the culture of PDX’s current and future nightlife.

12:00 p.m. – 1:30 p.m.
Keynote Speaker/ Lunch
Presenter: Jim Peters, Responsible Hospitality Institute
Description:
Cities throughout the world recognize the importance of sociability as an economic engine. This presentation will trace the evolution of urban hospitality and showcase how cities can join together in modernizing policy and practices to meet consumer demands while maintaining public safety and livability. The presentation will also engage the audience in evaluating Portland’s transformation as a destination for nightlife in comparison to national trends and identify opportunities to enhance Portland as one of America’s most sociable cities.

1:45 p.m. – 2:45 p.m.
Dramshop/ Liability Issues
Presenter: 
Duke Tufty, Attorney & Rob Hoover, Insurance Agent
Description:
Learn how to avoid the top 10 most common violations, dramshop, liability and avoiding lawsuits.

3:00 p.m. – 4:00 p.m.
Lesson Learned/ Legal Use of Force

Presenter: Robert Smith, Nightclub Security Consultants
Description:
Guidance on those “What the hell” moments! This session will identify the top 10 mistakes and best practices in hospitality. Owners and managers will walk away with ideas they can  implement at their bar or club.

4:15 p.m. – 4:30 p.m.
Hear from your Local Resources:
Portland Police Bureau, Entertainment Detail; Portland Fire Bureau, Inspector

4:30 p.m. – 5:45 p.m.
Keynote Speaker
Presenter: Robert Smith, Nightclub Security Consultants
Description:
From the newest door hostess to the seasoned bartender to the “I know everything” owner, the staff of nearly every bar and club too often forget to remember what they already know.  During the keynote, we’ll have a very open and frank discussion on some basic facts of the bar business that every employee already knows but often forget.  This will be a funny, insightful and right on target discussion for every bar and club employee.

SECURITY MANAGER & GUARDS

11:00 a.m. – 11:50 p.m.
No Session Scheduled

12:00 p.m. – 1:30 p.m.
Keynote Speaker/ Lunch
Presenter: Jim Peters, Responsible Hospitality Institute
Description:
Cities throughout the world recognize the importance of sociability as an economic engine. This presentation will trace the evolution of urban hospitality and showcase how cities can join together in modernizing policy and practices to meet consumer demands while maintaining public safety and livability. The presentation will also engage the audience in evaluating Portland’s transformation as a destination for nightlife in comparison to national trends and identify opportunities to enhance Portland as one of America’s most sociable cities.

1:45 p.m. – 2:45 p.m.
Bouncers Legal Use of Force
Presenter: Robert Smith, Nightclub Security Consultants
Description:
Crowd management and de-escalation techniques; Customer service focused security practices; Legal use of force for security professionals

3:00 p.m. – 4:00 p.m.
Fake ID Training

Presenter: Mark Smith, OLCC & Key bouncers from PDX bars
Description:
How to identify fakes, tips and techniques for taking fakes and interacting with customers at the front door in your line queue.

4:15 p.m. – 4:30 p.m.
Hear from your Local Resources:
Portland Police Bureau, Entertainment Detail; Portland Fire Bureau, Inspector

4:30 p.m. – 5:45 p.m.
Keynote Speaker
Presenter: Robert Smith, Nightclub Security Consultants
Description:
From the newest door hostess to the seasoned bartender to the “I know everything” owner, the staff of nearly every bar and club too often forget to remember what they already know.  During the keynote, we’ll have a very open and frank discussion on some basic facts of the bar business that every employee already knows but often forget.  This will be a funny, insightful and right on target discussion for every bar and club employee.

BARTENDERS & SERVERS

11:00 a.m. – 11:50 p.m.
No Session Scheduled

12:00 p.m. – 1:30 p.m.
Keynote Speaker/ Lunch
Presenter: Jim Peters, Responsible Hospitality Institute
Description:
Cities throughout the world recognize the importance of sociability as an economic engine. This presentation will trace the evolution of urban hospitality and showcase how cities can join together in modernizing policy and practices to meet consumer demands while maintaining public safety and livability. The presentation will also engage the audience in evaluating Portland’s transformation as a destination for nightlife in comparison to national trends and identify opportunities to enhance Portland as one of America’s most sociable cities.

1:45 p.m. – 4:00 p.m.
How to Cut People Off

Presenter: Diane Barta, Action Server Education
Description: Interactive workshop on the dos/don’ts of cutting people off, interacting with tough customers & learning tips & tricks of how to cutoff visibly intoxicated persons

Consequences of Overservice
Presenter
: Trauma Nurses & Portland Police
Description:
Learn the science of over-indulging, the ways it affects the human body, the consequences involved in over service, and how to positively impact the customer experience safely and effectively

4:15 p.m. – 4:30 p.m.
Hear from your Local Resources:
Portland Police Bureau, Entertainment Detail; Portland Fire Bureau, Inspector

4:30 p.m. – 5:45 p.m.
Keynote Speaker
Presenter: Robert Smith, Nightclub Security Consultants
Description:
From the newest door hostess to the seasoned bartender to the “I know everything” owner, the staff of nearly every bar and club too often forget to remember what they already know.  During the keynote, we’ll have a very open and frank discussion on some basic facts of the bar business that every employee already knows but often forget.  This will be a funny, insightful and right on target discussion for every bar and club employee.

The Portland Bar Academy is organized by the Old Town Hospitality Group (OTHG), a volunteer organization made up of some of Portland’s most experienced bar and night club owners, and the Safe Nightlife Advocacy Partnership (SNAP).

Hope to see you there!

Initiative 91 Passes: Oregon Welcomes Recreational Marijuana

Initiative 91 Passes: Oregon Welcomes Recreational Marijuana

Oregon Ballot Measure 91 is a 2014 ballot measure that passed in Oregon in November 2014.  Its passage legalized the recreational use of marijuana in Oregon.

Key dates include:

  • July 1, 2015.  The possession and use of marijuana for adults 21 years of age or older, including the ability to carry up to one ounce of marijuana, to keep up to eight ounces of marijuana at home per household, and to cultivate up to four marijuana plants per household.
  • January 4, 2016.  The OLCC must begin accepting applications on or before January 4, 2016.

You can find a copy of the initiative here.

The Oregon Legislature is busy reviewing the measure and has already identified a number of areas of concern, including:

  1. Can Oregon do away with the Oregon Medical Marijuana Program now?
  2. Is the eight ounce limit per household for marijuana possession to high?
  3. How should edibles be regulated?
  4. Does the absence of guidance on driving while high require action?
  5. Should the legislature step to make changes and provide express guidance to the OLCC or let the OLCC conduct rule making on some of these key issues?

With my extensive experience working with the OLCC and the striking similarity between the existing alcohol regulatory framework and the regulatory framework set out by Initiative 91, I am uniquely positioned to counsel clients seeking to start a marijuana based business in Oregon.  I will be closely following the development of this area law and making connections from my deep experience in the alcohol regulatory arena.

My Oregon Marijuana Law blog is currently under construction and should be up and running in early December.  The site will be athttp://olccmarijuanalaw.com/.  Stay tuned!