OAR 845-005-0413: Special Events Distillery License

(1) ORS 471.230 authorizes the Commission to issue a Special Events Distillery (SED) license to an Oregon Distillery licensee. This rule sets the qualifications and requirements for an SED license. (2) Definitions. For this rule: (a) “Bar” means a counter at which the preparation, pouring, serving, sale, or consumption of alcoholic beverages is the primary activity; (b) “Food counter” means a counter in an area in which minors are allowed and at which the primary activity at all times is the preparation, serving, sale, or consumption of food; (c) “License day” means from 7:00 am until 2:30 am on the succeeding calendar day, or any part of a license day. The license fee as required by ORS 471.311 is per license day or any part of a license day. (d) “Manufactured by the distillery licensee” means the licensee distills, rectifies, blends, or otherwise produces the distilled liquor product on the distillery licensed premises in Oregon. (e) “Serious violation history” means: (A) Two or more category III or IIIa administrative violations of any type, or category IV violations involving minors. However, if the circumstances of a violation include aggravation, one violation may be sufficient; or (B) One category I, II, or IIa administrative violation; or (C) Two or more crimes or offenses involving liquor laws. (f) “Social game” means a game other than a lottery, if authorized by a local county or city ordinance pursuant to ORS 167.121, between players in a private business, private club, or place of public accommodation where no house player, house bank, or house odds exist and there is no house income from the operation of the social game. (g) “Trade visitor” means a person whose job includes the purchase, or recommended purchase, of distilled spirits by a licensee of the Commission or distributors and others in the commercial distribution chain; or a person representing an agency of mass communication, such as television, radio, newspaper, magazine, and internet. (h) “Video lottery game” means a video lottery game terminal authorized by the Oregon State Lottery. Examples include but are not limited to video poker and video slots. Keno monitors are not considered a video lottery game. (3) Only the holder of a Distillery license issued under ORS 471.230 may qualify for a Special Events Distillery license. (a) A distillery licensee providing tastings of distilled liquor for retailers at an educational seminar that is not open to the public is not required to obtain a SED and is subject to OAR 845-013-0060. (b) A distillery licensee providing tastings of distilled liquor at a retail liquor store must follow OAR 845-015-0155. A distillery licensee is not eligible for a SED at a retail liquor store. (4) An applicant for an SED license must submit the following forms, documents, information, or fees to the Commission: (a) A complete application form provided by the Commission containing all information and signatures required by the form, including but not limited to: (A) The local government recommendation; (B) Documentation from the local government that the applicant provided written notice to the local government; or (C) Documentation from the local government that the applicant is not required to submit the application to the local government. (b) The license fee as described in ORS Chapter 471.311. (c) Proof of liquor liability insurance or bond as required by ORS 471.168 or Commission rules. (d) A written plan the Commission determines adequately manages events to: (A) Prevent problems and violations; (B) Control patronage by minors as set out in this rule; and (C) Prevent over-service of alcoholic beverages to patrons. (e) Identification of at least one individual responsible for managing the licensed premises. (f) Identification of the premises or area proposed to be licensed. (g) Confirmation of compliance with the food service standards of OAR 845-006-0465. (h) Information regarding the type of event to be licensed, type and extent of entertainment to be offered, expected patronage overall and by minors, proposed hours of food service, and proposed hours of operation. (5) The Commission will not approve more than five license days on a single application. The Commission may limit approval of any application to a single license day or to any number of license days fewer than five days. (6) After an applicant has submitted the application materials required by subsection (4) of this rule, the Commission may: (a) Require additional forms, documents, information, or fees from an applicant, licensee, or other persons where there is reason to believe that the forms, documents, information, or fees are required by law or rule or may help the Commission determine the merits of an application or to otherwise perform its statutory duties. (b) At any time, inactivate the application, and the inactivation is not subject to the requirements of ORS Chapter 183, when the Commission determines: (A) One or more of the materials, forms, documents, information, or fees required by law or rule are missing or are not complete, accurate, legible, or correct; (B) The applicant or licensee fails to provide to the Commission all required materials, forms, documents, information, or fees in a manner that are complete, accurate, legible, and correct within 10 calendar days of the Commission’s notice to the applicant or licensee; (C) The plan submitted by the applicant to manage the event is not adequate; or (D) The applicant’s submission of the application materials did now allow the Commission sufficient processing time prior to the event date. (7) A plan for managing patronage by minors under this rule must meet the following requirements: (a) If the SED license will be on any part of a premises, room, or area with an annual license issued by the Commission, the Commission must be convinced that the plan will follow the minor posting and control plan, including any temporary relaxation or tightening of the minor posting, assigned to that premises, room, or area under the annual license. The Commission must also be convinced that the plan will prevent minors from gaining access to alcoholic beverages and any portion of the licensed premises prohibited to minors. (b) If the SED license will not be on any part of a premises, room, or area with an annual license issued by the Commission, the Commission must be convinced that the plan will prevent minors from gaining access to alcoholic beverages and any portion of the licensed premises the Commission prohibits to minors. (8) Minors are prohibited from the SED licensed premises or portions of the licensed premises as follows: (a) Minors may not sit or stand at a bar; however, minors may sit or stand at a food counter; (b) Minors may not be in an area where there are video lottery games, social games, or nude entertainment or where such activities are visible; (c) Minors may not be in an area where the licensee’s approved written plan designates that minors will be excluded. (9) The Commission may deny, cancel or restrict a SED license for any reason for which the Commission may deny, cancel or restrict a regular license. (10) The Commission may deny or restrict a SED license if the applicant has a serious violation history at events previously licensed with a special license within the past 36 months. (11) The Commission shall limit the issuance of a SED license to the same applicant at the same location to no more than 62 license days from January 1 to December 31 of each year. (12) When the Commission approves a written plan under this rule, the licensee must follow that written plan. Failure to follow that written plan is a Category III violation. (13) If the licensee fails to prevent minors from gaining access to alcoholic beverages or fails to prevent minors from gaining access to any portion of the licensed premises prohibited to minors, the Commission may immediately prohibit minors from the licensed premises or portion(s) of the premises. (14) A distillery licensee with a SED may: (a) Permit tastings of distilled liquor approved by the Commission for sale in Oregon The taste must contain distilled liquor manufactured in Oregon by the distillery licensee. Once the taste contains distilled liquor manufactured in Oregon by the distillery licensee, the taste may contain other distilled liquor approved by the Commission for sale in Oregon and may also include malt beverages, wine, cider, and non-alcoholic liquids. (A) The distillery licensee must pay the Commission a processing fee for any distilled liquor in the taste that is manufactured by the distillery licensee and is obtained from the inventory of the Commission. (B) The distillery licensee must purchase at the retail price set by the Commission any distilled liquor in the taste that was not manufactured by the distillery licensee. (b) Permit sales by the drink of distilled liquor approved by the Commission for sale in Oregon. The drink must contain distilled liquor manufactured in Oregon by the distillery licensee. Once the drink contains distilled liquor manufactured in Oregon by the distillery licensee, the drink may contain other distilled liquor approved by the Commission for sale in Oregon and may also include malt beverages, wine, cider, and non-alcoholic liquids. The distillery licensee must purchase the distilled liquor that the licensee uses for sales by the drink at the event at the retail price set by the Commission for the month in which the distilled liquor is sold by the drink. (c) If the distillery licensee has been appointed as a distillery retail outlet agent, sell factory-sealed containers of distilled liquor manufactured by the licensee for consumption off the licensed premises of the event. The distillery licensee must purchase and sell the factory-sealed containers in accordance with the terms of the Distillery Retail Outlet Agent Agreement and the Commission’s Distillery Retail Outlet Manual. (15) Tastings provided to the general public. (a) A tasting provided to the general public shall be no more than one-half fluid ounce of distilled liquor in a single container. The container may also contain malt beverage, wine, cider, and nonalcoholic beverages; however, the total amount of liquid in the container may be no more than two ounces. A licensee may charge a member of the general public a fee for tastings. (b) A distillery licensee shall not provide more than two and one-half fluid ounces of distilled liquor per person per license day. (16) Tastings provided to a trade visitor. (a) A tasting provided to a trade visitor shall be no more than one fluid ounce of distilled liquor in a single container. The container may also contain malt beverage, wine, cider, and nonalcoholic beverages; however, the total amount of liquid in the container may be no more than three ounces. A licensee may not charge a trade visitor a fee for tastings. (b) There is no daily limit on distilled liquor tastings provided to a trade visitor. (c) Trade visitors must be distinguished from members of the general public. For example, providing tastings for trade visitors in separate areas or at separate times from tastings for the general public, using distinctive glassware for trade visitors, or using badges or name tags to identify trade visitors could be ways a licensee complies with this requirement.