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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3730
Sponsored by Representative NOSSE
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act says what “low-proof spirit beverage” means and that some OLCC licensees can
sell low-proof spirit beverages.The Act also says that there is a tax on the sale of a low-proof spirit
beverage. (Flesch Readability Score: 65.7).
Allows a licensee, permittee or certificate holder authorized to import, export, sell, distribute,
ship or deliver wine to import, export, sell, distribute, ship and deliver low-proof spirit beverages.
Defines “low-proof spirit beverages.” Conditionally allows a distillery licensee to distribute or de-
liver low-proof spirit beverages. Allows a distillery licensee to import, manufacture, offer tasting of
and make certain sales of low-proof spirit beverages. Allows an importer of distilled liquor to import
low-proof spirit beverages.
Imposes a tax on the privilege of engaging in business as a manufacturer or importing distrib-
utor of low-proof spirit beverages. Creates exceptions. Makes provisions regarding tax payments,
liens and record keeping applicable for low-proof spirit beverages.
Applies to low-proof spirit beverages manufactured or imported on or after January 1, 2026.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to low-proof spirit beverages; creating new provisions; amending ORS 430.256, 471.155,
471.230, 471.810, 473.060, 473.065, 473.070, 473.080, 473.090, 473.100, 473.140, 473.150, 473.160 and
473.170; prescribing an effective date; and providing for revenue raising that requires approval
by a three-fifths majority.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 2 of this 2025 Act is added to and made a part of ORS chapter 471.
SECTION 2. (1) As used in this section, “low-proof spirit beverage” means an alcoholic
beveragethat:
(a) Contains, at a minimum, a mixture of distilled liquor and a nonalcoholic liquid;
(b) Contains not more than 14 percent alcohol by volume; and
(c) Is sold at retail in a factory-sealed container that does not exceed 375 milliliters in
volume.
(2) Notwithstanding ORS 471.186, the holder of an off-premises sales license that holds a
license for a premises that is greater than 4,000 square feet may, at the premises, sell and
deliver a low-proof spirit beverage. The retail sale and delivery of low-proof spirit beverages
under this subsection is subject to the same restrictions and requirements imposed under
this chapter and by the Oregon Liquor and Cannabis Commission by rule for retail sales and
delivery of wine by off-premises sales licensees.
(3)(a) Subject to paragraph (c) of this subsection, a holder of a full on-premises sales li-
cense, limited on-premises sales license, temporary sales license, brewery-public house li-
cense, brewery license, winery license, grower sales privilege license or other license under
this chapter that allows the sale of wine for on-premises consumption may sell a low-proof
spirit beverage for on-premises consumption.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
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(b) Subject to paragraph (c) of this subsection, a holder of a license under this chapter
that allows the sale of wine in factory-sealed containers for off-premises consumption may
sell a low-proof spirit beverage at the premises for off-premises consumption. Any limitations
imposed on a licensee described in this subsection with regard to the sale of wine apply to
the sale of a low-proof spirit beverage by the licensee.
(c) This subsection does not allow a sale other than a sale at retail in conformance with
subsection (1)(c) of this section.
(4)(a) A holder of a winery license, grower sales privilege license, wholesale malt beverage
and wine license, warehouse license, certificate of approval under ORS 471.244 or other li-
cense, certificate or permit under this chapter that allows the person to import or export
wine into or out of this state may import or export a low-proof spirit beverage on the same
terms that the person is allowed to import or export wine.
(b) A holder of a certificate of approval under ORS 471.251 may import a low-proof spirit
beverage on the same terms that the holder of a certificate of approval under ORS 471.244
may import a low-proof spirit beverage.
(5) A holder of a wholesale malt beverage and wine license, warehouse license or other
license, certificate or permit under this chapter that allows the person to distribute or ship
wine in this state may distribute or ship a low-proof spirit beverage on the same terms that
the person is allowed to distribute or ship wine in this state.
(6)(a) A holder of a winery license, grower sales privilege license, wholesale malt beverage
and wine license, warehouse license, direct shipper permit, certificate of approval under ORS
471.244, direct to retailer permit or other license, certificate or permit under this chapter
that allows the person to deliver wine to a licensee of the commission may deliver a low-
proof spirit beverage to a licensee of the commission on the same terms that the person is
allowed to deliver wine.
(b) A holder of a distillery license or a certificate of approval under ORS 471.251 that pays
to the commission an amount equal to the fee for a direct to retailer permit may deliver a
low-proof spirit beverage to a licensee of the commission on the same terms as a holder of
a direct to retailer permit.
(7)(a) A holder of a direct shipper permit, warehouse license or other license, certificate
or permit under this chapter that allows the person to deliver wine directly to a resident of
this state for personal use may deliver a low-proof spirit beverage directly to a resident of
this state for personal use on the same terms that the person is allowed to deliver wine.
(b) A holder of a distillery license or a certificate of approval under ORS 471.251 that pays
to the commission an amount equal to the fee for a direct shipper permit may deliver a
low-proof spirit beverage directly to a resident of this state for personal use on the same
terms as a holder of a direct shipper permit.
(8) Any liability insurance or bonding requirement imposed on a licensee under this
chapter regarding the sale or service of a low-proof spirit beverage must be identical to the
liability insurance or bonding requirement imposed on a licensee under this chapter regard-
ing the sale or service of wine.
(9) A nonprofit or charitable organization may sell a low-proof spirit beverage at an
auction or through a raffle on the same terms that the organization may sell wine under
ORS 471.162.This subsection does not allow the sale of a low-proof spirit beverage that is
not manufactured in this state or imported into this state as provided under this chapter.
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(10) An individual entering this state may possess an amount of low-proof spirit beverage
that does not exceed the amount of wine that ORS 471.405 allows an individual entering the
state to possess.
(11) ORS 471.740 and 471.745 do not apply to low-proof spirit beverages.
(12) Subsections (2) to (7) of this section do not allow a holder of a license, certificate or
permit issued under this chapter to:
(a) Carry out any function or power regarding wine that the holder is not otherwise al-
lowed to carry out under the license, certificate or permit; or
(b) Carry out any function or power regarding distilled liquor, other than low-proof spirit
beverages, that the holder is not otherwise allowed to carry out under the license, certificate
orpermit.
SECTION 3. Section 4 of this 2025 Act is added to and made a part of ORS chapter 473.
SECTION 4. (1) As used in this section, “low-proof spirit beverage” has the meaning
given that term in section 2 of this 2025 Act.
(2) A tax is imposed on the privilege of engaging in business as a manufacturer or im-
porting distributor of low-proof spirit beverages. The tax shall be cents per gallon
of low-proof spirit beverage manufactured or imported.
(3) In computing the privilege tax imposed under this section:
(a) A low-proof spirit beverage is not subject to tax more than once.
(b) A tax may not be levied, collected or imposed upon any low-proof spirit beverage sold
to the Oregon Liquor and Cannabis Commission or exported from this state.
(c) A tax may not be levied, collected or imposed upon any low-proof spirit beverage given
away and consumed on the licensed premises of a distillery licensee, or sold to or by a vol-
untary nonincorporated organization of army, air corps or navy personnel operating a place
for the sale of goods pursuant to regulations promulgated by the proper authority of each
suchservice.
(d) A tax may not be levied, collected or imposed upon any low-proof spirit beverage de-
termined by the commission to be unfit for human consumption or unsalable.
SECTION 5. ORS 471.230 is amended to read:
471.230. (1)(a) A distillery license allows the licensee to:
(A) Import, manufacture, distill, rectify, blend, denature and store distilled liquor[, to];
(B) Sell the distilled liquor to the Oregon Liquor and Cannabis Commission [and to];
(C) Transport the distilled liquor out of this state for sale outside this state[. Distillery licensees
may]; and
(D) 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 pro-
vided in this section.
(b) An [However, any] agricultural producer [or], an association of agricultural producers or the
[legal agents] agent of an agricultural producer or association of agricultural producers that manu-
factures and converts agricultural surpluses, by-products and wastes into denatured ethyl and in-
dustrial alcohol for use in the arts and industry [are] is 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:
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(a) Permit tastings of distilled liquor approved by the commission for sale in Oregon and manu-
factured 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 li-
quors, 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 com-
mission. 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] selling at retail distilled liquor at locations where tastings are permitted under para-
graph (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 li-
quor 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 to 471.400, 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 pur-
chased 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 lo-
cation to not more than 62 days during a calendar year. A distillery licensee conducting a special
eventmay:
(a) Permit tastings of distilled liquor approved by the commission for sale in Oregon and manu-
factured 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 li-
quor 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 sub-
section (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
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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 com-
mission 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.
(6)(a) In addition to any other privilege granted to a distillery licensee, a distillery
licensee may import, manufacture, blend and store low-proof spirit beverages as defined in
section 2 of this 2025 Act. A distillery licensee may sell a low-proof spirit beverage:
(A) To export;
(B) To any commission licensee authorized under section 2 of this 2025 Act to sell, dis-
tribute or deliver low-proof spirit beverages; or
(C) At retail directly to the consumer for consumption off of the distillery’s licensed
premises.
(b) A distillery licensee may conduct tastings of low-proof spirit beverages at any location
where the licensee may conduct tastings of distilled liquor under subsection (2) or (4) of this
section.
SECTION 6. ORS 471.230, as amended by section 3, chapter 649, Oregon Laws 2021, is amended
toread:
471.230. (1)(a) A distillery license allows the licensee to:
(A) Import, manufacture, distill, rectify, blend, denature and store distilled liquor[, to];
(B) Sell the distilled liquor to the Oregon Liquor and Cannabis Commission [and to];
(C) Transport the distilled liquor out of this state for sale outside this state[. Distillery licensees
may]; and
(D) 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 pro-
vided in this section.
(b) An [However, any] agricultural producer [or], an association of agricultural producers or the
[legal agents] agent of an agricultural producer or association of agricultural producers that manu-
factures and converts agricultural surpluses, by-products and wastes into denatured ethyl and in-
dustrial alcohol for use in the arts and industry [are] is 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 manu-
factured 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 li-
quors, they must be distilled liquors on the list of products approved by the commission for retail
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sale in Oregon and must be purchased by the licensee at the retail price established by the com-
mission. 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] selling at retail distilled liquor at locations where tastings are permitted under para-
graph (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 li-
quor 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 to 471.400, 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 pur-
chased 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 lo-
cation to not more than 62 days during a calendar year. A distillery licensee conducting a special
eventmay:
(a) Permit tastings of distilled liquor approved by the commission for sale in Oregon and manu-
factured 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 li-
quor 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 sub-
section (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 com-
mission for the month of sale.
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(5)(a) In addition to any other privilege granted to a distillery licensee, a distillery
licensee may import, manufacture, blend and store low-proof spirit beverages as defined in
section 2 of this 2025 Act. A distillery licensee may sell a low-proof spirit beverage:
(A) To export;
(B) To any commission licensee authorized under section 2 of this 2025 Act to sell, dis-
tribute or deliver low-proof spirit beverages; or
(C) At retail directly to the consumer for consumption off of the distillery’s licensed
premises.
(b) A distillery licensee may conduct tastings of low-proof spirit beverages at any location
where the licensee may conduct tastings of distilled liquor under subsection (2) or (4) of this
section.
SECTION 7. ORS 473.060 is amended to read:
473.060. (1) The privilege taxes imposed by ORS 473.030 and 473.035and section 4 of this 2025
Act shall be paid to the Oregon Liquor and Cannabis Commission. The taxes covering the periods
for which statements are required to be rendered by ORS 473.070 shall be paid before the time for
filing such statements expires or, as concerns wines, on or before the 20th day of the month after
such wines have been withdrawn from federal bond. If not so paid, a penalty of 10 percent and in-
terest at the rate of one percent a month or fraction of a month shall be added and collected. The
commission may refund any tax payment imposed upon or paid in error by any licensee or holder
of a direct to retailer permit issued under ORS 471.274 or a direct shipper permit issued under ORS
471.282, and may waive the collection or refund the payment of any tax imposed and collected on
wine, cider or malt beverages subsequently exported from this state, sold to a federal
instrumentality or to the commission, or determined by the commission to be unfit for human con-
sumption or unsalable.
(2) The commission may waive any interest or penalty assessed to a manufacturer or holder of
a permit described in subsection (1) of this section subject to the tax imposed under ORS 473.030
or 473.035or section 4 of this 2025 Act if the commission, in its discretion, determines that the
manufacturer or permit holder has made a good faith attempt to comply with the requirements of
this chapter.
(3) Except in the case of fraud, the commission may not assess any interest or penalty on any
tax due under ORS 473.030 or 473.035 or section 4 of this 2025 Act following the expiration of 36
months from the date on which was filed the statement required under ORS 473.070 reporting the
quantity of wine, cider or malt beverages upon which the tax is due.
(4) A manufacturer or holder of a permit described in subsection (1) of this section may appeal
a tax imposed under ORS 473.030 or 473.035 or section 4 of this 2025 Act in the manner of a
contested case under ORS chapter 183.
SECTION 8. ORS 473.070 is amended to read:
473.070. (1) On or before the 20th day of each month:
(a) Every manufacturer shall file with the Oregon Liquor and Cannabis Commission a statement
of the quantity of wine, cider [and], malt beverages and low-proof spirit beverages produced,
purchased or received by the manufacturer during the preceding calendar month.
(b) Every holder of a direct to retailer permit issued under ORS 471.274 shall file with the
commission a statement of the quantity of wine, cider [and], malt beverages and low-proof spirit
beverages the holder transported to the holder of a license issued under ORS 471.175, 471.178,
471.186, 471.190 or 471.200 during the preceding calendar month.
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(c) Every holder of a direct shipper permit issued under ORS 471.282 shall file with the com-
mission a statement of the quantity of wine, cider, [and] malt beverages and low-proof spirit
beverages the holder delivered directly to an Oregon resident during the preceding three calendar
months.
(2) Notwithstanding subsection (1) of this section, a manufacturer of wine, the holder of a direct
to retailer permit or the holder of a direct shipper permit that was not liable for a privilege tax
under this chapter in the prior calendar year and that does not expect to be liable for a privilege
tax under this chapter in the current calendar year, or a manufacturer of wine, the holder of a di-
rect to retailer permit or the holder of a direct shipper permit that is newly established during the
current calendar year and that does not expect to be liable for a privilege tax under this chapter
in the current calendar year, may file a single annual statement of the quantity of wine produced,
purchased or received by the manufacturer, the holder of a direct to retailer permit or the holder
of a direct shipper permit during the current calendar year. The annual statement shall be filed with
the commission on or before January 20 of the following year.
(3) The commission shall by rule establish procedures that allow manufacturers, importing dis-
tributors, holders of direct to retailer permits and holders of direct shipper permits to use electronic
meansto:
(a) File statements required under this section; and
(b) Pay privilege taxes imposed by ORS 473.030 and 473.035.
SECTION 9. ORS 473.080 is amended to read:
473.080. If any manufacturer or holder of a direct to retailer permit issued under ORS 471.274
or a direct shipper permit issued under ORS 471.282 fails, neglects or refuses to file a statement
required by ORS 473.070 or files a false statement, the Oregon Liquor and Cannabis Commission
shall estimate the amount of wine, cider [and], malt beverages and low-proof spirit beverages
produced, purchased or received by the manufacturer or permit holder and assess the privilege tax
thereon. The manufacturer or permit holder shall be estopped from complaining of the amount so
estimated.
SECTION 10. ORS 473.090 is amended to read:
473.090. The privilege tax required to be paid by ORS 473.030 and 473.035 and section 4 of this
2025 Act constitutes a lien upon, and has the effect of an execution duly levied against, any and
all property of the manufacturer or the holder of a direct to retailer permit issued under ORS
471.274 or a direct shipper permit issued under ORS 471.282, attaching at the time the beverages
subject to the tax were produced, purchased or received, as the case may be, and remaining until
the tax is paid or the property sold in payment thereof. The lien created by this section is para-
mount to all private liens or encumbrances.
SECTION 11. ORS 473.100 is amended to read:
473.100. (1) Whenever any manufacturer or holder of a direct to retailer permit issued under
ORS 471.274 or a direct shipper permit issued under ORS 471.282 is delinquent in the payment of
the privilege tax provided for in ORS 473.030 and 473.035 and section 4 of this 2025 Act, the
Oregon Liquor and Cannabis Commission or its duly authorized representative shall seize any
property subject to the tax and sell, at public auction, property so seized, or a sufficient portion
thereof to pay the privilege tax due, together with any penalties imposed under ORS 473.060 for such
delinquency and all costs incurred on account of the seizure and sale.
(2) Written notice of the intended sale and the time and place thereof, shall be given to such
delinquent manufacturer or holder of a permit described in subsection (1) of this section and to all
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persons appearing of record to have an interest in the property, at least 10 days before the date set
for the sale. The notice shall be enclosed in an envelope addressed to the manufacturer or permit
holder at the last-known residence or place of business of the manufacturer or permit holder in this
state, if any, and in the case of any person appearing of record to have an interest in such property,
addressed to such person at the last-known place of residence of the person, if any. The envelope
shall be deposited in the United States mail, postage prepaid. In addition, notice shall be published
for at least 10 days before the date set for such sale, in a newspaper of general circulation published
in the county in which the property seized is to be sold. If there is no newspaper of general circu-
lation in such county, the notice shall be posted in three public places in such county for the 10-day
period. The notice shall contain a description of the property to be sold, a statement of the amount
of the privilege taxes, penalties and costs, the name of the manufacturer or permit holder and the
further statement that, unless the privilege taxes, penalties and costs are paid on or before the time
fixed in the notice for the sale, the property, or so much thereof as may be necessary, will be sold
in accordance with law and the notice.
SECTION 12. ORS 473.140 is amended to read:
473.140. Every manufacturer and holder of a direct to retailer permit issued under ORS 471.274
or a direct shipper permit issued under ORS 471.282 shall keep a complete and accurate record of
all sales of wine, cider [and], malt beverages and low-proof spirit beverages, a complete and ac-
curate record of the number of gallons imported, produced, purchased, manufactured, brewed,
fermented or delivered, and the date of importation, production, purchase, manufacturing, brewing,
fermentation or delivery. The records must be in the form and contain other information as the
Oregon Liquor and Cannabis Commission may prescribe. The commission, by rule or regulation, may
require the delivery of statements by distributors to purchasers, with wine, cider [and], malt
beverages and low-proof spirit beverages, and prescribe the matters to be contained in the state-
ments. The records and statements must be preserved by the distributor and the purchaser respec-
tively, for a period of three years, and must be offered for inspection at any time upon oral or
written demand by the commission or its duly authorized agents.
SECTION 13. ORS 473.150 is amended to read:
473.150. (1) The Oregon Liquor and Cannabis Commission may, at any time, examine the books
and records of a holder of a direct to retailer permit issued under ORS 471.274 or direct shipper
permit issued under ORS 471.282 or of any manufacturer of wine, cider [or], malt beverages or
low-proof spirit beverages, and may appoint auditors, investigators and other employees that the
commission considers necessary to enforce its powers and perform its duties under this section.
(2) Every holder of a direct to retailer permit or direct shipper permit and every manufacturer
shall maintain and keep for three years all records, books and accounts required by this chapter and
shall provide copies of those records, books and accounts to the commission when requested by the
commission.
SECTION 14. ORS 473.160 is amended to read:
473.160. Every person transporting wine, cider [or], malt beverages or low-proof spirit
beverages within this state, whether [such] the transportation originates within or without this
state, shall keep a true and accurate record of [wine, cider or malt] the beverages transported. The
record shall include ingredients which may be used in the manufacture, production, brewing or
fermentation of the [wine, cider or malt] beverages, showing such facts with relation to those
beverages, their ingredients and their transportation, as the Oregon Liquor and Cannabis Commis-
sion may require. The records shall be open to inspection by the representative of the commission
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at any time. The commission may require from any such person sworn returns of all or any part of
the information shown by the records.
SECTION 15. ORS 473.170 is amended to read:
473.170. (1) A manufacturer or a holder of a direct to retailer permit issued under ORS 471.274
or a direct shipper permit issued under ORS 471.282 may not:
(a) Fail to pay the privilege tax prescribed in ORS 473.030 and 473.035and section 4 of this
2025 Act when it is due; or
(b) Falsify the statement required by ORS 473.070.
(2) A person may not:
(a) Refuse to permit the Oregon Liquor and Cannabis Commission or any of its representatives
to make an inspection of the books and records authorized by ORS 473.140 to 473.160;
(b) Fail to keep books of account prescribed by the commission or required by this chapter;
(c) Fail to preserve the books for three years for inspection of the commission; or
(d) Alter, cancel or obliterate entries in the books of account for the purpose of falsifying any
record required by this chapter to be made, maintained or preserved.
SECTION 16. ORS 471.810 is amended to read:
471.810. (1) At the end of each month, the Oregon Liquor and Cannabis Commission shall certify
the amount of moneys available for distribution in the Oregon Liquor and Cannabis Commission
Account and, after withholding such moneys as it may deem necessary to pay its outstanding obli-
gations, shall within 35 days of the month for which a distribution is made direct the State Treas-
urer to pay the amounts due, upon warrants drawn by the Oregon Department of Administrative
Services, as follows:
(a) Fifty-six percent, or the amount remaining after the distribution under subsection (4) of this
section, credited to the General Fund available for general governmental purposes wherein it shall
be considered as revenue during the quarter immediately preceding receipt;
(b) Twenty percent to the cities of the state in such shares as the population of each city bears
to the population of the cities of the state, as determined by Portland State University last preceding
such apportionment, under ORS 190.510 to 190.610;
(c) Ten percent to counties in such shares as their respective populations bear to the total
population of the state, as estimated from time to time by Portland State University; and
(d) Fourteen percent to the cities of the state to be distributed as provided in ORS 221.770 and
this section.
(2) The commission shall direct the Oregon Department of Administrative Services to transfer
50 percent of the revenues from the taxes imposed by ORS 473.030 and 473.035 and28 percent of
the revenues received from the tax imposed under section 4 of this 2025 Act to the Mental
Health Alcoholism and Drug Services Account in the General Fund to be paid monthly as provided
in ORS 430.380. Revenues received from the tax imposed under section 4 of this 2025 Act are
to be used for youth alcohol use prevention programs.
(3) If the amount of revenues received from the taxes imposed by ORS 473.030 for the preceding
month was reduced as a result of credits claimed under ORS 473.047, the commission shall compute
the difference between the amounts paid or transferred as described in subsections (1)(b), (c) and (d)
and (2) of this section and the amounts that would have been paid or transferred under subsections
(1)(b), (c) and (d) and (2) of this section if no credits had been claimed. The commission shall direct
the Oregon Department of Administrative Services to pay or transfer amounts equal to the differ-
ences computed for subsections (1)(b), (c) and (d) and (2) of this section from the General Fund to
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the recipients or accounts described in subsections (1)(b), (c) and (d) and (2) of this section.
(4) Notwithstanding subsection (1) of this section, no city or county shall receive for any fiscal
year an amount less than the amount distributed to the city or county in accordance with ORS
471.350 (1965 Replacement Part), 473.190 and 473.210 (1965 Replacement Part) and this section dur-
ing the 1966-1967 fiscal year unless the city or county had a decline in population as shown by its
census. If the population declined, the per capita distribution to the city or county shall be not less
than the total per capita distribution during the 1966-1967 fiscal year.Any additional funds required
to maintain the level of distribution under this subsection shall be paid from funds credited under
subsection (1)(a) of this section.
(5) Notwithstanding subsection (1) of this section, amounts to be distributed from the Oregon
Liquor and Cannabis Commission Account that are attributable to a per bottle surcharge imposed
by the Oregon Liquor and Cannabis Commission, shall be credited to the General Fund.
SECTION 17. ORS 430.256 is amended to read:
430.256. (1) The Director of the Oregon Health Authority shall administer alcohol and drug
abuse programs, including but not limited to programs or components of programs described in ORS
430.397 to 430.401 and 475.225 and ORS chapters 430 and 801 to 822.
(2) Subject to ORS 417.300 and 417.305, the director shall:
(a) Report to the Alcohol and Drug Policy Commission on accomplishments and issues occurring
during each biennium, and report on a new biennial plan describing resources, needs and priorities
for all alcohol and drug abuse programs.
(b) Develop within the Oregon Health Authority priorities for alcohol and drug abuse programs
and activities.
(c) Conduct statewide and special planning processes that provide for participation from state
and local agencies, groups and individuals.
(d) Identify the needs of special populations including minorities, elderly, youth, women and in-
dividuals with disabilities.
(e) Subject to ORS chapter 183, adopt such rules as are necessary for the performance of the
duties and functions specified by this section.
(3) The director may apply for, receive and administer funds, including federal funds and grants,
from sources other than the state. Subject to expenditure limitation set by the Legislative Assembly,
funds received under this subsection may be expended by the director:
(a) For the study, prevention or treatment of alcohol and drug abuse and dependence in this
state.
(b) To provide training, both within this state and in other states, in the prevention and treat-
ment of alcohol and drug abuse and dependence.
(4) The director shall, in consultation with state agencies and counties, establish guidelines to
coordinate program review and audit activities by state agencies and counties that provide funds to
alcohol and drug prevention and treatment programs. The purpose of the guidelines is to minimize
duplication of auditing and program review requirements imposed by state agencies and counties on
alcohol and drug prevention and treatment programs that receive state funds, including programs
that receiverevenues from beer and wine tax [revenues] and low-proof spirit beverage tax under
ORS 430.380 and 471.810.
SECTION 18. ORS 471.155 is amended to read:
471.155. (1) The Oregon Liquor and Cannabis Commission shall provide for the licensing of per-
sons and cities within the state to manufacture, distribute, take orders for and sell spirits, wines,
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beer and other alcoholic liquors. Except as provided in subsection (2) of this section, the holder of
a brewery, winery, wholesale, warehouse, grower sales privilege or brewery-public house license or
the holder of a direct to retailer permit shall give, and at all times maintain on file with the com-
mission, a bond with a corporate surety authorized to transact business in this state. The bond shall
be in form and amount acceptable to the commission, shall be payable to the commission and con-
ditioned that the licensee or permittee will pay any fine imposed for any violation of any provision
of the Liquor Control Act and that the licensee or permittee will pay all license fees, privilege taxes,
taxes imposed under ORS 473.045 and other taxes on alcoholic liquors, together with penalties and
interest thereon, levied or assessed against the licensee or permittee under statutes relating to the
importation, manufacture, distribution, sale or taxation of alcoholic liquors in the State of Oregon.
(2) Under such conditions as the commission may prescribe, the holder of a brewery, winery,
wholesale, warehouse, grower sales privilege or brewery-public house license or the holder of a di-
rect to retailer permit may deposit, in lieu of the bond required by subsection (1) of this section, the
equivalent value in cash, bank letters of credit recognized by the State Treasurer or negotiable se-
curities of a character approved by the State Treasurer. The deposit is to be made in a bank or trust
company for the benefit of the commission. Interest on deposited funds or securities shall accrue to
the depositor.
(3) The bonding provisions of this section do not apply to section 4 of this 2025 Act.
SECTION 19. ORS 473.065 is amended to read:
473.065. (1) If the total tax liability under ORS 473.030 (1) of a manufacturer or holder of a direct
to retailer permit issued under ORS 471.274 or a direct shipper permit issued under ORS 471.282 in
the previous calendar year was less than $1,000, the manufacturer or permit holder may deposit with
the Oregon Liquor and Cannabis Commission an amount in cash equal to the manufacturer’s or
permit holder’s total tax liability under ORS 473.030 (1) for the previous calendar year in lieu of the
bond required by ORS 471.155 (1).
(2) If the actual tax liability under ORS 473.030 (1) of a manufacturer or holder of a permit de-
scribed in subsection (1) of this section is less than the amount deposited under subsection (1) of this
section, the manufacturer or permit holder may request that the commission refund the excess funds
or may apply those funds toward the manufacturer’s or permit holder’s tax liability under ORS
473.030 (1) for the next calendar year.
(3) If the actual tax liability under ORS 473.030 (1) of a manufacturer or holder of a permit de-
scribed in subsection (1) of this section is greater than the amount deposited under subsection (1)
of this section, the manufacturer or permit holder shall pay to the commission the additional amount
owed in the manner required under ORS 473.060.
(4) Unless the commission determines that a winery, grower sales privilege or warehouse
licensee or direct shipper or direct to retailer permit holder presents an unusual risk for nonpay-
ment of any license fees, privilege taxes, agricultural products taxes or other tax, penalty or interest
imposed under this chapter or ORS chapter 471, the commission shall waive the bond required under
ORS 471.155 (1) for the licensee or permit holder if:
(a) The licensee or permit holder was not liable for a privilege tax under this chapter in the
immediately preceding calendar year and does not expect to be liable for a privilege tax under this
chapter in the current calendar year; or
(b) The licensee or permit holder of a business established during the current calendar year does
not expect to be liable for a privilege tax under this chapter in the current calendar year.As used
in this paragraph, “business” means:
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(A) A winery.
(B) A business operated pursuant to a license issued under ORS 471.227.
(C) A warehouse.
(D) A business operated pursuant to a permit issued under ORS 471.274.
(E) A business operated pursuant to a permit issued under ORS 471.282.
(5) The section does not apply to section 4 of this 2025 Act.
SECTION 20. Section 4 of this 2025 Act and the amendments to ORS 430.256, 471.155,
471.810, 473.060, 473.065, 473.070, 473.080, 473.090, 473.100, 473.140, 473.150, 473.160 and 473.170
by sections 7 to 19 of this 2025 Act apply to low-proof spirit beverages manufactured or im-
ported on or after January 1, 2026.
SECTION 21.(1) Section 2 of this 2025 Act and the amendments to ORS 430.256, 471.155,
471.230, 471.810, 473.060, 473.065, 473.070, 473.080, 473.090, 473.100, 473.140, 473.150, 473.160 and
473.170 by sections 5 to 19 of this 2025 Act become operative on January 1, 2026.
(2) The Oregon Liquor and Cannabis Commission and the Director of the Oregon Health
Authority may take any action before the operative date specified in subsection (1) of this
section that is necessary for the commission and the director to exercise, on and after the
operative date specified in subsection (1) of this section, all of the duties, functions and
powers conferred on the commission and the director by section 2 of this 2025 Act and the
amendments to ORS 430.256, 471.155, 471.230, 471.810, 473.060, 473.065, 473.070, 473.080, 473.090,
473.100, 473.140, 473.150, 473.160 and 473.170 by sections 5 to 19 of this 2025 Act.
SECTION 22.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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