Category Archives: OLCC

NALCP Conference: Growler/Crowler Session Was a Hit!

Craft Brewing, OLCC, Speaking Engagements, WSLCB, , ,

NALCP Conference: Growler/Crowler Session Was a Hit!

Our session on growlers and crowlers was a big hit in New Orleans.  Speaking to nearly a full room, our speakers hit it out of the park.  Attendees were engaged, asking questions, and busily taking notes.

Thank you so much!

Attendees learned about the difference between growlers and crowlers, the regulatory issues presented by selling them, the scope and nature of the license privileges related to growlers and crowlers, the varied regulatory landscape across jurisdictions, the public safety issues presented by growlers, and best practices in setting up a growler/crowler business.

Another big thank you to Jeremy and Meg and Oskar Blues for bringing a crowler machine to the conference and demoing it with hundreds of cans with the NALCP logo at the trade show.

Oregon and Washington continue to be pioneers in the growler and crowler arena.  This success has been driven in part by the OLCC and WSLCB, thoughtful laws and rules, engaged industry groups and members, and the innovative alcohol beverage businesses in the Pacific Northwest.

Looking forward to next year’s conference in San Diego!

Alcohol and Marijuana Go Together Like . . . Oil and Water: They Don’t Mix

Marijuana Law, OLCC

Alcohol and Marijuana Go Together Like . . . Oil and Water: They Don’t Mix

The OLCC recently issued formal guidance on recreational marijuana.  In sum, the use of recreational marijuana is not allowed in a public place.  While this may not be a surprise to some, it’s still a secret to many.  Or, more likely, it’s simply widely disregarded.  For those of us living in Portland, it’s not uncommon to see or smell public marijuana use.  Strict enforcement of this prohibition is obviously a tremendous challenge to law enforcement and simply may not be a top priority.  (Hmm . . .what to pursue?  Violent crime or marijuana smokers?)

It’s an entirely different story for businesses with liquor licenses.  Businesses with liquor licenses are considered “public places” and the OLCC is (and has been) making this prohibition a top enforcement priority.

If you operate a licensed business in Oregon, you must be extremely careful when it comes to recreational marijuana.  Oregon law absolutely prohibits the following conduct at licensed businesses:

  1. Using recreational marijuana;
  2. Selling recreational marijuana; or,
  3. Distributing recreational marijuana.
  4. You get the idea: a liquor license means NO RECREATIONAL MARIJUANA!

Even if a licensed business is not currently selling alcohol, it’s still considered a licensed business.  A liquor license applies to the business 24 hours a day, 7 days a week, 365 days a year.  No exceptions.

And, it should go without saying that the prohibitions against recreational marijuana use also apply to illegal recreational drugs too.

The public’s rapidly changing perception about the use, sale and distribution of recreational marijuana poses a significant challenge to licensed businesses.  The public—particularly young people who tend to frequent bars more often—is increasingly coming to accept the public use of marijuana.  They also are more willing to disregard what they perceive to be outdated social conventions about when and where marijuana can be used, even if those social conventions still happen to be supported by current law.  Further, the public is generally neither aware of, nor concerned about, the consequences of their actions on your liquor license.

The practical take away for Oregon licensees is simple: Keep recreational marijuana out of your licensed business!  It is ultimately your responsibility to comply with Oregon law.  Licensed businesses that fail to heed the OLCC’s repeated public pronouncements that marijuana use at licensed premises is a top enforcement priority may find their liquor license in serious jeopardy.

UO Annual Law of Beer & Wine Event

OLCC, Speaking Engagements,

UO Annual Law of Beer & Wine Event

I had the pleasure of sharing my knowledge of beer and wine law with a fantastic group of UO law students last night.  We had an engaging discussion of the practice of law in this space, common legal concerns of businesses in this space, and current issues of interest.

I’d like to thank my co-panelists for their contributions to the success of the event:

I also enjoyed sticking around for the next panel and appreciated the experience and hard earned wisdom shared by Mark Williams—the owner of Oregon Wine Lab—and Edward Fus—owner of Angel Vine.  After listening to Mark and Ed, I’ll be stopping by their tasting rooms soon and recommend you do the same!

I hope that the students got as much out of the presentations and Q&A sessions as I did.

The TTB Issued New Guidance on Kombucha

Compliance, OLCC

The TTB Issued New Guidance on Kombucha

The TTB continues to be interested in kombucha.  The federal agency recently published new guidance.  The term “kombucha” refers to a fermented beverage produced from a mixture of steeped tea and sugar, combined with a culture of yeast strains and bacteria.  Some kombucha products also have fruit juice or other flavors added during production.  The combination of sugar and yeast triggers fermentation, which may produce a kombucha with an alcohol content of 0.5% or more alcohol by volume. The TTB is the federal agency that regulates alcohol in the United States and it’s that last issue that has garnered the TTB’s attention.

Kombucha is increasingly popular and hitting more shelves everyday. Manufacturers are lining up to take advantage of the opportunity, but must be mindful of the special regulations that apply to beverages that contain alcohol, or may contain alcohol at some point. The way in which kombucha is made naturally produces alcohol and sometimes in amounts that rise above the 0.5% threshold that triggers regulatory requirements. In such cases, the manufacturer must have the appropriate state and federal permits in order to make and sell the kombucha.

Kombucha can be classified as a beer or wine depending on the primary fermentable ingredient. It would be classified as beer if the predominant fermentable material is sugar or a similar sweetener. It would be classified as wine if the predominant fermentable material is fruit or fruit juice as the fermentable material. Both beer and wine products must also comply with the TTB’s and FDA’s labeling requirements.

The following TTB chart highlights the analysis that each kombucha manufacturer must go through to determine if their kombucha is actually an alcoholic beverage.

Kombucha is AT OR ABOVE 0.5% alcohol by volume at any time

Correct TTB Regulations
DO APPLY

Kombucha is NEVER at or above 0.5% alcohol by volume during production, at time of bottling, or after bottling

Correct TTB Regulations
DO NOT APPLY

Of course, it’s not so simple because even if the product leaves the manufacturer under the 0.5% limit, the threshold can still be met if the kombucha continues to ferment in the bottle.

In short, a manufacturer must have the appropriate federal and state permits before producing kombucha that contains more than 0.5% alcohol. At the federal level, such a manufacturer would need a Brewer’s Notice if the kombucha is classified as a beer or a Winery Basic Permit if the kombucha is classified as a wine. The manufacturer will need the corresponding state permit also—typically a brewery or winery liquor license respectively.

In addition to the new permitting and labeling requirements, the status of a kombucha product as an alcoholic beverage will also change how the product is distributed and sold at retail.  Navigating the alcohol regulatory environment is truly an adventure.

Oregon Joins the Bandwagon Prohibiting Powdered Alcohol

Laws & Rules, OLCC, Uncategorized

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

Laws & Rules, OLCC

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.

Brewery-Public House License Privileges Expanded

Laws & Rules, OLCC

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.

 

Portland Bar Academy on Monday December 1, 2014

OLCC,

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!

OLCC Privatization Initiative Withdrawn

OLCC, Privatization

OLCC Privatization Initiative Withdrawn

Problems with the drafting of the initiative led to delays in obtaining a final ballot title for the preferred version of the measure.   The primary problem related to references to the word “tax.”  The Oregonians for Competition, proponents of the initiative, wanted the word “tax” replaced with the phrase “revenue replacement fee.”  The issue ended up at the Oregon Supreme Court where supporters and opponents of the measure made their arguments.  On May 30th, the Court ruled to require a rewrite.

Ultimately, proponents of the measure would not have enough time to gather the 87,213 signatures needed to qualify an initiative for the November ballot by the July 3rd deadline.  After the ruling, it would have likely taken another week or two for the Court to approve a revised ballot title.

Oregonians for Competition indicated that they plan to push for privatization in the 2015 Legislative session or on the 2016 ballot.

 

New OLCC Rules: What is “Amplified Entertainment”?

Laws & Rules, OLCC

New OLCC Rules: What is “Amplified Entertainment”?

Amplifier2

The OLCC recently enacted two new rules and amended a third applicable to licensed outdoor areas.  The effective date for these changes is June 1, 2014.

  1. OAR 845-005-0329.  Licensing Outdoor Areas Not Abutting a Licensed Building.
  2. OAR 845-005-0331.  Licensing Outdoor Areas Abutting a Licensed Building.
  3. OAR 845-006-0309.  Requirements for Outdoor Areas Not Abutting a Licensed Building

All licensees with outdoor licensed areas should review these changes to ensure that they are in compliance by June 1, 2014.  

Food cart licensees should pay particular attention to the new operational requirements set out in OAR 845-006-0309.  The reference to “areas not abutting a licensed building” is primarily code for “food carts.”

One issue that may be of particular concern to both brick and mortar and food cart licensees relates to when “amplified entertainment” will be allowed.  For brick and mortar licensees, the OLCC will be able to cancel the license for an outdoor area effective June 1st if “the applicant or licensee will allow amplified entertainment in the outdoor area between 12:00am and 7:00am.”  For food cart licensees, it will be a category III violation if there is “amplified entertainment” from 10:00pm to 7:00am effective June 1, 2014.

Interestingly, the requirement regarding amplified entertainment is respectively a licensing requirement for brick and mortar licensees and a violation for food cart licensees.  It is not a licensing requirement for food cart licensees and it is not a violation for brick and mortar licensees.  This could lead to very different outcomes for non-compliance for this two categories of licensees.

Much will depend on the OLCC’s definition of “amplified entertainment.”  Would it include playing recorded music over a speaker?  Only live entertainment, such as DJ’s, bands, etc.?  If the former, we can all anticipate some very quiet outdoor seating areas after midnight in Oregon.