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Oregon Bulletin

September 1, 2011

 

Oregon Liquor Control Commission
Chapter 845

Rule Caption: Amend two distilled spirits tasting rules allowing mixing with nonalcoholic beverages.

Adm. Order No.: OLCC 5-2011

Filed with Sec. of State: 8-15-2011

Certified to be Effective: 9-1-11

Notice Publication Date: 5-1-2011

Rules Amended: 845-005-0428, 845-015-0155

Subject: There are two rules in this package: OAR 845-005-0428 Retail On-Premises Distilled Spirits Sampling Involving Distillery Representative and OAR 845-015-0155 Consumption in a Retail Liquor Store. Both of these rules describe the conditions under which distilled spirits tastings for the public involving distilled spirits representatives are allowed. The first rule governs distilled spirits tastings at a Full On-Premises location and the second governs tastings in a retail liquor store. In November 2009 the Commission adopted new tastings rules for tastings at a Distillery licensee’s premises and then in September 2010 the Commission adopted the new Special Event Distillery rule which included the parameters for allowable distilled spirits tastings at these events. The rule amendments in this package allow the mixing of distilled spirits with nonalcoholic beverages in tastings which parallels what is allowed at the Distillery premises and at their special events. The maximum one-quarter ounce distilled spirits per taste and one-half ounce total distilled spirits per customer per day remains the same. The amendments allow, at both a Full On-Premises location and at a retail liquor store, the ability to use a nonalcoholic mixer to enhance the taste for consumers and set the maximum total ounces of liquid in each taste (including mixer) at two ounces.

Rules Coordinator: Jennifer Huntsman—(503) 872-5004

845-005-0428

Retail On-Premises Distilled Spirits Sampling Involving Distillery Representative

(1) Full On-Premises Sales licensees may allow a distillery with products approved for sale in Oregon (distillery) and its representatives, employees, contractors, and agents to participate in distilled spirits educational seminars and sample tasting events. These events must be sponsored by the Full On-Premises Sales licensee and be held on the Full On-Premises Sales licensee’s permanently (not temporarily) licensed premises.

(2) Sample Tasting Events. These are events sponsored by the Full On-Premises Sales licensee where a distillery and its representatives, employees, contractors, and agents visit the Full On-Premises Sales licensee’s permanently licensed premises for the purpose of offering free sample tastings of the distillery’s product to customers of the Full On-Premises Sales licensee. At any event allowed by sections (2) through (7) of this rule, the Full On-Premises Sales licensee is responsible for ensuring that the distillery and its representatives, employees, contractors, and agents:

(a) Provide or pay for the person to serve the distilled spirit tasting. The server must be the distillery’s representative, employee, contractor, or agent. The server may not be an employee or agent of the Full On-Premises licensee where the tastings occur. All servers must have valid Oregon Service Permits;

(b) Do not compensate the Full On-Premises Sales licensee or its employees or agents in order to conduct the tasting event;

(c) Do not sell, serve, or coordinate the sale or service of alcohol for the Full On-Premises Sales licensee or its employees or agents;

(d) Do not advertise the tasting. The Full On-Premises Sales licensee may advertise the tasting event only inside its retail business;

(e) Do not provide any other service normally provided by the Full On-Premises Sales licensee (for example: taking orders for alcohol or food, serving drinks to customers, promoting alcohol beyond service of the sample tasting);

(f) Provide the distilled spirits product to be sampled, and remove any remaining product at the end of the tasting;

(g) Provide only distilled spirits product approved for sale in Oregon;

(h) Do not give anything prohibited by division 13 of chapter 845 of the Commission’s administrative rules to a retailer or its customers;

(i) Comply with ORS 471.398, and division 13 of chapter 845 of the Commission’s administrative rules.

(3) Tastings allowed under sections (2) though (7) of this rule are permitted only in premises or portions of premises where minors are not allowed, either due to an existing OLCC minor posting sign which prohibits minors, or because the event is not open to minor patronage.

(4) Sample tasting sizes, number of samples per customer. At sample tasting events allowed under sections (2) through (7) of this rule, a tasting shall be no more than one-quarter fluid ounce of distilled spirits in a single container. The container may also contain nonalcoholic beverages; however, the total amount of liquid in the container may be no more than two ounces. A distillery and its representatives, employees, contractors, and agents may not provide more than one-half ounce total of distilled spirits per customer per day. For purposes of this rule, a day is from 7:00 a.m. until 2:30 a.m. on the succeeding calendar day.

(5) Number of sample tasting events allowed. Each Full On-Premises Sales licensee shall sponsor no more than eight sample tasting events (as described in sections (2) through (7) of this rule) per calendar year on its premises.

(6) Violations associated with sample tastings. In the case of a liquor law violation associated with a sample tasting allowed under sections (2) through (7) of this rule, the Full On-Premises Sales licensee will be held responsible. When the violation also involves a server (for example, service of a sample to a minor or a visibly intoxicated person), both the server and the Full On-Premises Sales licensee will be held responsible.

(7) Record keeping. The Full On-Premises Sales licensee must keep a record of each tasting event it sponsors, including the date and location of each event, the products served, and the names of the servers. Records of tasting events must be retained for one year from the date of the tasting.

(8) Promotional Dinner Events. These are events sponsored by a Full On-Premises Sales licensee on its permanently licensed premises where it accepts assistance from the distillery and its representatives, employees, contractors, and agents, where meals are served, and multiple servings/samples (“flights”) of distilled spirits accompany the meals. These are not considered sample tasting events as described in sections (2) through (7) of this rule. At all promotional dinner events the Full On-Premises Sales licensees must meet the Commission’s food service standards as described in OAR 845-006-0459 through 845-006-0469. All distilled spirits consumed at promotional dinner events as described in this section must be purchased by the Full On-Premises Sales licensee from a retail sales agent of the Commission or from another Full On-Premises Sales licensee who has purchased the distilled spirits from a retail sales agent of the Commission. All advertising of the promotional dinner event must be purchased by the Full On-Premises Sales licensee.

(a) Each Full On-Premises Sales licensee may sponsor no more than eight promotional dinner events per calendar year on its premises.

(b) At events allowed under this section, the Full On-Premises Sales licensee is responsible for ensuring that the distillery and its representatives, employees, contractors, and agents:

(A) Provide only education to patrons and staff (the distillery and its representatives, employees, contractors, and agents may not pour, serve or sell alcoholic beverages);

(B) Participate in these promotional events only for the products they represent;

(C) Do not compensate any employee or agent of the retail licensee to participate in any promotional event as described in this section;

(D) Do not pay for advertising the event;

(E) Do not donate, give, pay for, underwrite, or otherwise compensate the Full On-Premises Sales licensee for the distilled spirits consumed at the promotional dinner event.

(c) The Full On-Premises Sales licensee must keep a record of each promotional dinner event it holds, including the date and location of each event, the proof of purchase of each product(s) served, the distillery or distilleries represented, and the name of each distillery representative, employee, contractor, or agent who participated in an educational capacity at the event. These records must be retained by the Full On-Premises Sales licensee for one year from the date of the promotional dinner event.

(9) Violation of sections (2) through (8) of this rule are Category III violations.

(10) A distillery and its representatives, employees, contractors, and agents may offer samples not exceeding one-quarter ounce of alcohol per sample by measured pour to those attending an industry trade show.

Stat. Auth.: ORS 471, including 471.030, 471.040 & 471.730(1) & (5)

Stats. Implemented: ORS 471.398

Hist.: OLCC 19-2000, f. 12-6-00, cert. ef. 1-1-01; OLCC 3-2001(Temp), f. & cert. ef. 8-10-01 thru 2-6-02; OLCC 3-2002, f. & cert. ef. 2-15-02; OLCC 7-2005, f. 10-19-05, cert. ef. 11-1-05; OLCC 5-2011, f. 8-15-11, cert. ef. 9-1-11

845-015-0155

Consumption in a Retail Liquor Store

(1) The Commission allows sponsors to conduct distilled spirits sample tastings in retail liquor stores at the sole discretion of the retail sales agent for the purpose of promoting the sponsor’s products. For purposes of this rule, “sponsors” are: Oregon Distillery licensees, out-of-state manufacturers of distilled spirits, importers of distilled spirits, distillery representatives, and the employees or agents of Distillery licensees, out-of-state manufacturers, importers, and distillery representatives. Sample tastings are subject to the requirements and limits described in this rule.

(2) Sample Sizes, Number of Samples per Customer. The size of each distilled spirits tasting shall be no more than one-quarter fluid ounce of distilled spirits in a single container. The container may also contain nonalcoholic beverages; however, the total amount of liquid in the container may be no more than two ounces. A sponsor may not provide more than one-half ounce total of distilled spirits per customer per day.

(3) The distilled spirits product(s) provided for sample tastings must be available for sale at the retail sales agency where the sample tasting occurs at the time of the sample tasting.

(4) Identified Tasting Area. Retail sales agents who allow tastings at their retail liquor store must identify a specific tasting area. The area must be of a size and design such that the person(s) conducting the tasting can observe and control persons in the area to ensure no minors or visibly intoxicated persons possess or consume alcohol. Customers must remain in the tasting area until they have finished consuming the sample(s). In exclusive retail liquor stores, the tasting area may be the entire retail liquor store. In non-exclusive retail liquor stores, the retail sales agent must identify a tasting area, and keep on file at the retail liquor store a floor plan sketch identifying the tasting area.

(5) Duration of Tastings Allowed. Tastings are limited to a maximum of three consecutive hours per sponsor per retail sales agency per day. Only one sponsor at a time may conduct sample tastings in a retail sales agency.

(6) Server Requirements. Alcohol servers must have valid Oregon service permits.

(7) Record Keeping. The sponsor must keep a record of each tasting they conduct, including the date and location of each event, the products served, and the names of the servers. The sponsor must retain records of tastings for one year.

(8) Sponsor responsibilities. Sponsors must:

(a) Provide the distilled spirits product to be tasted, and remove any remaining product at the end of the tasting;

(b) Provide or pay for a person to serve the distilled spirits being tasted. The server must be a sponsor or an employee or agent of the sponsor;

(c) Not compensate the retail sales agent, or any employee or agent of the retail sales agent to participate in the tasting; and

(d) Not advertise the tasting outside of the retail liquor store.

(9) Retail Sales Agent Responsibilities. Retail sales agents:

(a) Must not advertise the sample tasting outside the retail sales agency; and

(b) Are responsible for liquor law violations occurring in the retail sales agency which are not related to the sample tasting.

(10) Violations Associated with the Sample Tasting. In the case of a liquor law violation associated with sample tasting (for example, service of a sample to a minor or a visibly intoxicated person), both the server and the sponsor may be held responsible for violations of Oregon liquor laws which occur due to or during the tasting. Violations which occur due to a sponsor or server violating the law will not be charged to the retail sales agent.

Stat. Auth.: ORS 471, 471.030, 471.730(1) & (5)

Stats. Implemented: ORS 471.750

Hist.: LCC 27-1986, f. 11-20-86, ef. 1-1-87; OLCC 2-2003, f. 1-27-03, cert. ef. 2-1-03, Renumbered from 845-015-0095; OLCC 9-2004, f. 6-29-04 cert. ef. 7-1-04; OLCC 5-2011, f. 8-15-11, cert. ef. 9-1-11

 

Rule Caption: Requires licensees with evidence of serious compliance problems to submit and follow a compliance plan.

Adm. Order No.: OLCC 6-2011

Filed with Sec. of State: 8-15-2011

Certified to be Effective: 9-1-11

Notice Publication Date: 5-1-2011

Rules Adopted: 845-006-0497

Subject: Previously compliance plans were voluntary and were usually developed at the time of an intervention meeting between regulatory staff and a licensee. Adoption of this new rule gives the Commission authority to require such plans when there is evidence of compliance problems that are or are likely to become serious. The compliance plan will set out specific actions the licensee will take to address the problems and must be approved by the Commission. The new rule also gives the Commission the authority to sanction a licensee if a required compliance plan is not submitted or is not being followed.

Rules Coordinator: Jennifer Huntsman—(503) 872-5004

845-006-0497

Enforceable Compliance Plans

(1) When the Commission issues a written Notice of Warning to a licensee for a history of serious and persistent problems under ORS 471.315(1)(c), the Commission shall require the licensee to submit a written compliance plan setting out the specific actions that the licensee will take to address the problems.

(2) A draft compliance plan required under this rule must be submitted to the Commission within 15 days of the licensee receiving notice of the requirement. The Commission will provide written feedback regarding the licensee’s draft plan within 10 days of receipt. A final acceptable compliance plan must be submitted no later than 30 days from the date the licensee received initial notice of the requirement, or 5 days from the date the licensee received written feedback on their draft plan, whichever is later. The Commission will give written approval of a compliance plan as acceptable if it determines that implementation of the plan is reasonably likely to reduce or prevent the identified compliance problems. Under no circumstances will the time period between initial Commission notice of the requirement and Commission approval of a final acceptable compliance plan exceed 45 days.

(3) Once a compliance plan is approved, the licensee must follow the plan. The licensee may request Commission approval to discontinue a compliance plan no sooner than one year from the approval date. The licensee may request Commission approval to modify a compliance plan no sooner than six months from the approval date. The Commission will grant the request if it finds there is no longer a significant risk at the premises of future compliance problems pertaining to the elements of the plan contained in the licensee’s request.

(4) Approval of a compliance plan under this rule does not prevent the Commission from taking any other compliance action.

(5) Failure to submit an acceptable compliance plan as required or to follow an approved compliance plan is a Category III violation.

(6) The licensee must keep the compliance plan on the licensed premises and make the compliance plan available at any time for immediate inspection by any Commission employee or any peace officer. Failure to comply with this requirement is a Category IV violation.

Stat. Auth.: ORS 471, including 471.030, 471.040 & 471.730(1) & (5)

Stats. Implemented: ORS 471.030

Hist.: OLCC 6-2011, f. 8-15-11, cert. ef. 9-1-11

 

Rule Caption: New sponsorship rule describing items/services manufacturers may give retail licensees at temporary special events.

Adm. Order No.: OLCC 7-2011

Filed with Sec. of State: 8-15-2011

Certified to be Effective: 9-1-11

Notice Publication Date: 11-1-2010

Rules Adopted: 845-013-0080

Subject: This new rule describes the items and services that a supplier may provide to a retail licensee for use at a temporary special event. Staff recommended adoption of this new rule regulating sponsorships which replaces the current Commission guidelines titled “Corporate Sponsorships Information Memo”. Under the new rule the only approved items/services for the most part are those allowed under the existing financial assistance rules (Division 13); however licensees providing or accepting these sponsorships will now have this specific rule to reference which provides a definition of temporary special events for the purposes of sponsorship regulations.

Rules Coordinator: Jennifer Huntsman—(503) 872-5004

845 013-0080

Manufacturer or Wholesaler Sponsorship of a Temporary Special Event

ORS 471.398 and 471.400 allow manufacturers and wholesalers to provide certain items and services to retail licensees. This rule describes the terms and conditions under which a manufacturer or wholesaler may provide items or services to a retail licensee in connection with the sponsorship of a temporary special event.

(1) For this rule: “temporary special event” means an event licensed with a temporary sales license under ORS 471.190, a temporary use of an annual license under ORS 471.184(2), or a special event brewery public house license under ORS 471.200 where the event does not exceed five license days (which need not be consecutive), and the event is not on a licensee’s annually licensed premises. It does not mean an event licensed with a special event winery license or a special event grower license issued under OAR 845-005-0415 or licensed with a special event distillery license under OAR 845-005-0413.

(2) This rule does not apply to the purchase of advertising from a licensee as authorized under ORS 471.401.

(3) This rule does not apply to items or services a manufacturer or wholesaler provides under OAR 845-013-0090 to a nonprofit or governmental temporary sales licensee as described in OAR 845-013-0090(4)(a).

(4) This rule does not apply to a manufacturer or wholesaler providing items and services to a retail licensee (Full On-Premises Sales licensee, Limited On-Premises Sales licensee, Off-Premises Sales licensee, and Brewery-Public House Sales licensee) at the retail licensee’s annually licensed premises or at an event where the retail licensee has pre-approval for small-scale private catering under OAR 845-005-0405 or large-scale private catering under OAR 845-005-0410. Instead, the manufacturer or wholesaler must comply with ORS 471.398, 471.400, 471.401, and division 13 of chapter 845 of the Commission’s administrative rules.

(5) A manufacturer or wholesaler sponsoring a temporary special event may provide to the temporary special event licensee only the items or services allowed under division 13 of chapter 845 of the Commission’s administrative rules. However, notwithstanding OAR 845-013-0040, a manufacturer or wholesaler may also provide advertising of a temporary special event that lists the name and location of the temporary special event along with the name of the manufacturer’s or wholesaler’s product.

(6) No monetary payments of any kind may be made by a manufacturer or wholesaler or its agent to a retail licensee in connection with a temporary special event, except for payments to purchase advertising allowed under ORS 471.401(1)(d). Any payments for advertising provided under this rule must be made by the manufacturer or wholesaler or its agent directly to the third party provider of the advertising (for example, payments for advertising furnished by the manufacturer or wholesaler must be made to the media outlet that provides the advertising and not to the retail licensee). Advertising does not include fixtures, furniture or furnishings as prohibited by ORS 471.398(3) and OAR 845-013-0030.

(7) All alcoholic beverages sold or served at a temporary special event must be purchased by the temporary special event licensee from a licensed manufacturer or wholesaler at the established wholesale price or from the Commission. The manufacturer or wholesaler may not require the temporary special event licensee to exclude any competitor’s products.

(8) Each manufacturer or wholesaler and each retail licensee providing or accepting sponsorship for a temporary special event shall maintain an accurate and complete record of the sponsorship. These records must include the items or services provided in connection with the sponsorship, the name and duration of the event, and the names of the licensee and sponsoring manufacturers or wholesalers. These records must be retained for a period of two years from the date of the event, and this information shall be provided to the OLCC upon request.

(9) Violation of any section of this rule is a Category III violation.

Stat. Auth.: ORS 471, including 471.030, 471.040 & 471.730(1) & (5)

Stats implemented: ORS 471.398 & 471.400

Hist.: OLCC 7-2011, f. 8-15-11, cert. ef. 9-1-11

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.

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