ORS 471.230
Distillery license


(1)

A distillery license allows the licensee to import, manufacture, distill, rectify, blend, denature and store distilled liquor, to sell the distilled liquor to the Oregon Liquor and Cannabis Commission and to transport the distilled liquor out of this state for sale outside this state. Distillery licensees may purchase and sell distilled liquor from or to another distillery licensee in containers having a capacity greater than one U.S. gallon for blending and manufacturing purposes. A distillery licensee may not sell any alcoholic beverage within this state except to the commission or as provided in this section. However, any agricultural producer or association of agricultural producers or the legal agents of an agricultural producer or association of agricultural producers that manufactures and converts agricultural surpluses, by-products and wastes into denatured ethyl and industrial alcohol for use in the arts and industry are not required to obtain a license from the commission.

(2)

If a distillery licensee holds a valid distilled spirits plant basic permit issued by the federal Alcohol and Tobacco Tax and Trade Bureau for the licensed premises, the distillery licensee may:

(a)

Permit tastings of distilled liquor approved by the commission for sale in Oregon and manufactured in Oregon by the distillery licensee or by another distillery licensee. 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. This paragraph does not authorize sales by the drink of distilled liquor. The tastings may be conducted on the licensed premises of the distillery and at no more than five other premises owned or leased by the licensee. The commission may allow more than one distillery licensee to use the same premises at the same time for conducting tastings if the premises are a primary production location and the licensees share the premises or are owned by the same entity. If the manufacturer of the distilled liquor obtains distilled liquor for conducting tastings from the inventory of the commission, the licensee shall pay the commission a processing fee.

(b)

Obtain a special events distillery license.

(c)

Apply for appointment by the commission as a distillery retail outlet agent for purposes of retailing distilled liquor at locations where tastings are permitted under paragraph (a) of this subsection or subsection (4)(a) of this section. A distillery retail outlet agent may sell at locations where tastings are allowed under paragraph (a) of this subsection only distilled liquor that is on the list of products approved by the commission for retail sale in Oregon and is manufactured in Oregon by the distillery licensee or by another distillery licensee that uses the same premises as a primary production location or is owned by the same entity as the distillery licensee.

(3)

Notwithstanding ORS 471.392 (Definitions for ORS 471.392 to 471.400) to 471.400 (Exceptions to prohibition of financial assistance), a distillery licensee may hold one or more full on-premises sales licenses. All distilled liquor sold under a full on-premises sales license must be purchased from the commission.

(4)

A distillery licensee that holds a special events distillery license may conduct an event on premises designated in the special events distillery license. Except as provided in this subsection, a special events distillery license may be valid for a period not exceeding five days. The commission shall limit the approval of special events distillery licenses for a distillery licensee at the same location to not more than 62 days during a calendar year. A distillery licensee conducting a special event may:

(a)

Permit tastings of distilled liquor approved by the commission for sale in Oregon and manufactured in Oregon by the distillery licensee. 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. If the manufacturer of the distilled liquor obtains distilled liquor for conducting tastings from the inventory of the commission, the licensee shall pay the commission a processing fee.

(b)

Permit sales by the drink of distilled liquor. A drink that a distillery licensee sells under this paragraph must include distilled liquor that the licensee manufactured in Oregon. Any distilled liquor contained in the drink must be on the list of products approved by the commission for retail sale in Oregon. The distillery licensee selling the drink must purchase all distilled liquor contained in the drink at the retail price set by the commission for the month in which the drink is sold.

(c)

If the distillery licensee has been appointed as a distillery retail outlet agent under subsection (2)(c) of this section, sell distilled liquor in factory-sealed containers for consumption off the licensed premises. A distillery retail outlet agent may sell at a location where tastings are allowed under paragraph (a) of this subsection only distilled liquor that is on the list of products approved by the commission for retail sale in Oregon and is manufactured in Oregon by the distillery licensee. The distillery retail outlet agent must sell the distilled liquor at the retail price set by the commission for the month of sale.

(5)

The commission shall pay a distillery retail outlet agent compensation for distilled liquor retail sales by the agent under subsection (2)(c) or (4)(c) of this section. The compensation rate shall be:

(a)

For the first $250,000 of annual total combined retail sales from all distillery retail outlet agent tasting locations operated by the distillery licensee under subsection (2)(a) or (4)(a) of this section, 45 percent of the retail price set by the commission for the sold distilled liquor.

(b)

For distilled liquor retail sales by the agent that are not described in paragraph (a) of this subsection, 17 percent of the retail price set by the commission for the sold distilled liquor. [Amended by 1987 c.558 §1; 1995 c.301 §16; 1997 c.803 §1; 2007 c.134 §1; 2009 c.38 §3; 2009 c.237 §2; 2011 c.9 §64; 2012 c.20 §1; 2013 c.253 §1; 2015 c.549 §1; 2017 c.533 §9; 2019 c.658 §2; 2021 c.351 §61; 2021 c.649 §1]
Note: The amendments to 471.230 (Distillery license) by section 3, chapter 649, Oregon Laws 2021, become operative January 2, 2028, and apply to distilled liquor retail sales made by a distillery retail outlet agent on or after January 2, 2028. See section 4, chapter 649, Oregon Laws 2021. The text that is operative on and after January 2, 2028, is set forth for the user’s convenience.
471.230 (Distillery license). (1) A distillery license allows the licensee to import, manufacture, distill, rectify, blend, denature and store distilled liquor, to sell the distilled liquor to the Oregon Liquor and Cannabis Commission and to transport the distilled liquor out of this state for sale outside this state. Distillery licensees may purchase and sell distilled liquor from or to another distillery licensee in containers having a capacity greater than one U.S. gallon for blending and manufacturing purposes. A distillery licensee may not sell any alcoholic beverage within this state except to the commission or as provided in this section. However, any agricultural producer or association of agricultural producers or the legal agents of an agricultural producer or association of agricultural producers that manufactures and converts agricultural surpluses, by-products and wastes into denatured ethyl and industrial alcohol for use in the arts and industry are not required to obtain a license from the commission.

(2)

If a distillery licensee holds a valid distilled spirits plant basic permit issued by the federal Alcohol and Tobacco Tax and Trade Bureau for the licensed premises, the distillery licensee may:

(a)

Permit tastings of distilled liquor approved by the commission for sale in Oregon and manufactured in Oregon by the distillery licensee or by another distillery licensee. 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. This paragraph does not authorize sales by the drink of distilled liquor. The tastings may be conducted on the licensed premises of the distillery and at no more than five other premises owned or leased by the licensee. The commission may allow more than one distillery licensee to use the same premises at the same time for conducting tastings if the premises are a primary production location and the licensees share the premises or are owned by the same entity. If the manufacturer of the distilled liquor obtains distilled liquor for conducting tastings from the inventory of the commission, the licensee shall pay the commission a processing fee.

(b)

Obtain a special events distillery license.

(c)

Apply for appointment by the commission as a distillery retail outlet agent for purposes of retailing distilled liquor at locations where tastings are permitted under paragraph (a) of this subsection or subsection (4)(a) of this section. A distillery retail outlet agent may sell at locations where tastings are allowed under paragraph (a) of this subsection only distilled liquor that is on the list of products approved by the commission for retail sale in Oregon and is manufactured in Oregon by the distillery licensee or by another distillery licensee that uses the same premises as a primary production location or is owned by the same entity as the distillery licensee.

(3)

Notwithstanding ORS 471.392 (Definitions for ORS 471.392 to 471.400) to 471.400 (Exceptions to prohibition of financial assistance), a distillery licensee may hold one or more full on-premises sales licenses. All distilled liquor sold under a full on-premises sales license must be purchased from the commission.

(4)

A distillery licensee that holds a special events distillery license may conduct an event on premises designated in the special events distillery license. Except as provided in this subsection, a special events distillery license may be valid for a period not exceeding five days. The commission shall limit the approval of special events distillery licenses for a distillery licensee at the same location to not more than 62 days during a calendar year. A distillery licensee conducting a special event may:

(a)

Permit tastings of distilled liquor approved by the commission for sale in Oregon and manufactured in Oregon by the distillery licensee. 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. If the manufacturer of the distilled liquor obtains distilled liquor for conducting tastings from the inventory of the commission, the licensee shall pay the commission a processing fee.

(b)

Permit sales by the drink of distilled liquor. A drink that a distillery licensee sells under this paragraph must include distilled liquor that the licensee manufactured in Oregon. Any distilled liquor contained in the drink must be on the list of products approved by the commission for retail sale in Oregon. The distillery licensee selling the drink must purchase all distilled liquor contained in the drink at the retail price set by the commission for the month in which the drink is sold.

(c)

If the distillery licensee has been appointed as a distillery retail outlet agent under subsection (2)(c) of this section, sell distilled liquor in factory-sealed containers for consumption off the licensed premises. A distillery retail outlet agent may sell at a location where tastings are allowed under paragraph (a) of this subsection only distilled liquor that is on the list of products approved by the commission for retail sale in Oregon and is manufactured in Oregon by the distillery licensee. The distillery retail outlet agent must sell the distilled liquor at the retail price set by the commission for the month of sale.

Source: Section 471.230 — Distillery license, https://www.­oregonlegislature.­gov/bills_laws/ors/ors471.­html.

471.001
Definitions for ORS chapters 471 and 473
471.023
“Cider” defined
471.027
Short title
471.030
Purpose of Liquor Control Act
471.035
Certain products excepted from liquor laws
471.037
Homemade beer, wine and fermented fruit juice exemption from liquor laws
471.038
Nonbeverage food products
471.039
Certain cruise ships exempt from liquor laws
471.040
General powers and duties of the commission
471.045
Liquor laws supersede and repeal inconsistent charters and ordinances
471.105
Purchaser’s qualifications
471.115
Limitations on purchasing may be imposed
471.130
Requiring statement of age or identification from certain purchasers
471.135
False statement of age
471.155
Commission’s licensing duties
471.157
Licenses issuable
471.159
Enclosure of licensed premises
471.162
Exemptions from license requirement
471.164
Authority of cities and counties over establishments that offer entertainment or serve alcoholic beverages
471.166
Local government recommendations on license issuance and renewal
471.168
Certain licensees required to maintain liquor liability insurance or bond
471.175
Full on-premises sales license
471.176
Sale of mixed drinks and single servings of wine by holder of full on-premises sales license
471.178
Limited on-premises sales license
471.180
In-room supply of alcoholic beverages by hotel or arena
471.182
Issuance of full or limited on-premises sales license to public passenger carrier
471.184
Catering and other temporary off-premises service under full or limited on-premises sales license
471.186
Off-premises sales license
471.190
Temporary sales license
471.192
Purchases by Indian tribe
471.194
Purchases by airline
471.200
Brewery-public house license
471.221
Brewery license
471.223
Winery license
471.227
Grower sales privilege license
471.230
Distillery license
471.235
Wholesale malt beverage and wine license
471.242
Warehouse license
471.244
Certificates of approval for malt beverages, cider or wine
471.251
Certificates of approval for distilled liquor
471.268
Homemade malt beverages and wines at licensed premises
471.271
Requirement to report sex trafficking at licensed premises
471.272
Manner of shipping or transporting wine or cider
471.274
Wine self-distribution permit
471.282
Direct shipper permit
471.292
Characteristics of license
471.294
License terms
471.297
Temporary letter of authority on change of ownership
471.305
Delivery of alcoholic beverages
471.310
Cities, counties as licensees
471.311
Application for license
471.313
Grounds for refusing to issue license or for issuing restricted license
471.315
Grounds for cancellation, suspension or restriction of license, requiring training or imposing civil penalty
471.316
Mandatory suspension if licensee fails to prevent certain unlawful drug use or sales on premises
471.318
Commission authority following lapse, suspension or revocation
471.322
Civil penalty in lieu of or in addition to short-term suspension of certain licenses and permits
471.326
Refund of civil penalty if suspension not sustained on judicial review
471.327
Civil penalty in addition to or in lieu of suspending certain other licenses or certificates
471.329
Serious and persistent problems involving noise as grounds for discipline of licensee or applicant
471.331
Notice to licensee when refusal to renew or suspension or cancellation of license based on adverse neighborhood impact
471.333
Effect of sanitation violations
471.341
Mandatory clerk training course for employees of off-premises sales licensees
471.342
Acquisition and use of age verification equipment in lieu of other penalty
471.344
Responsible vendor program
471.346
Uniform standards for minor decoy operations
471.351
Examination of books and premises of licensees
471.360
Service permit required
471.365
Characteristics of permit
471.370
Expiration
471.375
Application
471.380
Grounds for refusing to issue permit
471.385
Grounds for revoking or suspending permit or imposing civil penalty
471.392
Definitions for ORS 471.392 to 471.400
471.394
Prohibition on sales at both wholesale and retail
471.396
Exceptions to prohibition on financial connection between wholesaler and retailer
471.398
Prohibition of financial assistance from wholesaler to retailer
471.400
Exceptions to prohibition of financial assistance
471.401
Purchase of alcoholic liquor advertising space or time from retail licensee
471.402
Sample tastings authorized
471.403
License required to produce alcoholic liquor
471.404
Importing liquor without license prohibited
471.405
Prohibited sales, purchases, possession, transportation, importation or solicitation in general
471.406
Activities covered by prohibitions on sale of alcoholic beverages
471.407
Offer of alcoholic beverages as inducement to make purchases
471.408
Alcoholic liquor may not be given as prize
471.410
Providing liquor to person under 21 or to intoxicated person
471.412
Allowing visibly intoxicated person to consume alcoholic beverages
471.425
Misrepresentations by licensee and others
471.430
Purchase or possession of alcoholic beverages by person under 21
471.432
Examination for problem condition involving alcohol upon conviction
471.434
Immunity for violation of ORS 471.430 when reporting sexual assault crime
471.440
Manufacture, fermentation or possession of mash, wort or wash
471.442
Wine compliance with standards
471.445
Use of misleading mark or label on container
471.446
Seals on wine and cider containers
471.473
Liquor store business loss compensation
471.475
Mixing, storing or serving of liquor without license
471.480
Sale of liquor by certain employees 18 years of age or older
471.482
Sale or service of liquor by employees 18 years of age or older generally
471.485
Payment required on or before delivery of liquor
471.490
Delivery or acceptance of instrument drawn upon insufficient funds or not payable according to terms
471.495
Report by wholesaler of instruments not paid on presentment required
471.500
Application of ORS 471.485 to 471.495
471.501
Malt beverage container refunds
471.506
Petition and election for local option
471.510
Sales not affected by local option laws
471.515
Effective date of local option
471.541
Alcohol Education Program
471.542
Alcohol server education course and examination
471.547
Alcohol Server Education Advisory Committee
471.549
Civil penalty
471.551
Warning signs required
471.553
Consultation with certain groups on production and posting of signs
471.557
Solicitation of private funds
471.559
Violations
471.561
Production and distribution of signs
471.565
Liability for providing or serving alcoholic beverages to intoxicated person
471.567
Liability for providing alcoholic beverages to minor
471.575
School district culinary arts classes
471.580
Education provider food or beverage career programs
471.605
Duty of officers to enforce and to inform district attorney
471.610
Confiscation of liquor and property by commission
471.615
Duty to notify commission of conviction of licensee
471.620
Property and places as common nuisances
471.625
Lien on place used to unlawfully handle liquor
471.630
Authority to abate nuisance
471.635
Issuance of restraining order
471.640
Service of restraining order
471.645
Temporary injunction
471.650
Nature of permanent injunction
471.655
Owner may defend
471.657
Confiscation and forfeiture for violation of ORS 471.475
471.660
Seizure of conveyance transporting liquor and liquor therein
471.666
Disposal of seized liquor and of vehicle or other conveyance
471.675
Resisting arrest or interfering with enforcement
471.680
Allegation and proof in prosecutions
471.685
Governor authorized to suspend license
471.695
Fingerprinting of license applicants and certain commission employees
471.700
Revocation of license on gambling conviction
471.703
Police notice to commission or social host when certain persons involved in motor vehicle accidents
471.705
Oregon Liquor and Cannabis Commission
471.710
Removal
471.715
Chairperson
471.720
Administrator
471.725
Buying, leasing, contracting and borrowing powers of commission
471.730
Regulatory powers of commission
471.732
Policy relating to sanitation in licensed premises
471.735
Testing and seizure of wines
471.737
Vermouth sales
471.740
Exclusive right of commission to handle certain liquors
471.745
Fixing prices and selling liquor
471.747
Granulated alcohol
471.750
Liquor stores and warehouses
471.752
Agent participation in programs for state employees
471.753
Agent compensation
471.754
Commission to develop recycling education materials
471.757
Statement of financial interest in business of licensee
471.760
Subpoena
471.765
Procedure when person refuses to testify or produce books
471.770
Self-incrimination as a basis for refusing to testify or produce books
471.775
Service of subpoenas
471.790
Commissioners not liable for official acts
471.795
Purchase and use of liquor by member or employee of commission
471.800
Restrictions on out-of-state wine
471.802
Wine label designation of American viticultural area
471.805
Disposition of moneys
471.810
Distribution of available moneys in Oregon Liquor and Cannabis Commission Account
471.817
Alternative transportation organization to report annually
471.990
Penalties
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