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HB 4146
This proposal did not become law. HB 4146 would have created a new legal category for "low-proof spirit beverages" defined as mixtures of distilled liquor and nonalcoholic liquor containing no more than 14 percent alcohol by volume in containers of 375 milliliters or less. The measure would have allowed craft distilleries producing under 500,000 gallons annually to obtain an endorsement enabling direct sales of these beverages to retailers and consumers, bypassing traditional distribution channels for this specific product class. It would have permitted off-premises retail stores larger than 4,000 square feet to sell and deliver low-proof spirit beverages with the same privileges as wine upon payment of a $2,500 endorsement fee per premises. The bill would have imposed a new privilege tax on manufacturers ($7 per gallon for craft producers, $11 for others), would have established a grant program funded by retailer fees to support the craft brewery and distillery industry, and would have updated various tax administration and bonding provisions to accommodate the new category.
Generated explanation · Introduced · Analyzed 8/19/2026 · Open official Introduced text
This proposal did not become law.
Generated analysis of Introduced text; it does not establish that the bill applies to you. Read the full decision brief.
No upcoming event is verified in the available records.
Plain-language analysis
Generated analysis, not an official summary or legal advice. Confirm with linked Oregon documents.
This proposal did not become law. The generated effects below describe what it would have required if enacted.
HB 4146 would have created a new legal category for "low-proof spirit beverages" defined as mixtures of distilled liquor and nonalcoholic liquor containing no more than 14 percent alcohol by volume in containers of 375 milliliters or less. The measure would have allowed craft distilleries producing under 500,000 gallons annually to obtain an endorsement enabling direct sales of these beverages to retailers and consumers, bypassing traditional distribution channels for this specific product class. It would have permitted off-premises retail stores larger than 4,000 square feet to sell and deliver low-proof spirit beverages with the same privileges as wine upon payment of a $2,500 endorsement fee per premises. The bill would have imposed a new privilege tax on manufacturers ($7 per gallon for craft producers, $11 for others), would have established a grant program funded by retailer fees to support the craft brewery and distillery industry, and would have updated various tax administration and bonding provisions to accommodate the new category.
Basis: Bill text · Source: Introduced
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The measure likely aims to stimulate economic development and market access for small-scale craft beverage producers by lowering barriers to direct sales for low-proof products, while simultaneously generating a dedicated revenue stream through retailer fees to fund industry grants.
Basis: Inferred · Source: Introduced
Distilleries producing no more than 500,000 gallons of low-proof spirit beverages annually might have obtained an endorsement to import, manufacture, blend, and store these beverages. They gain the ability to sell directly to off-premises retailers holding the new endorsement and directly to consumers for off-premises consumption, subject to the same restrictions as wine delivery. They are taxed at a lower rate of $7 per gallon compared to non-craft producers.
Basis: Bill text · Source: Introduced
Producers exceeding the 500,000-gallon threshold or not meeting the craft definition might have manufactured low-proof spirit beverages but are subject to a higher tax rate of $11 per gallon. The text does not explicitly grant them the direct-to-retailer endorsement privileges available to craft distilleries, potentially restricting their sales channels compared to smaller competitors.
Basis: Bill text · Source: Introduced
Stores with premises greater than 4,000 square feet might have applied for a low-proof spirit beverage endorsement by paying a $2,500 nonrefundable fee per location. Endorsed stores gain the ability to sell and deliver low-proof spirit beverages on the same terms as wine, including direct delivery to residents, potentially expanding their product offerings and revenue streams.
Basis: Bill text · Source: Introduced
Consumers gain access to a new category of low-proof spirit beverages and might have purchased them from craft distilleries or large off-premises retailers, including via delivery. They benefit from potential market competition but are subject to the new tax costs passed through in retail prices.
Basis: Bill text · Source: Introduced
Potential effect if enacted: The OLCC is directed to administer new endorsement programs, collect fees and taxes, establish a grant program, and adopt rules defining eligibility and operational requirements. The commission gains authority to issue endorsements and enforce compliance with the new product definitions and sales restrictions.
Basis: Bill text · Source: Introduced
Distilleries might have reformulated existing products to meet the ≤14% ABV and ≤375ml container requirements to qualify for the craft endorsement and lower tax rate, enabling direct-to-consumer sales that bypass distributors.
Basis: Bill text · Source: Introduced
Off-premises retailers would have had to evaluate the $2,500 per premises fee against expected revenue from low-proof spirit sales and ensure compliance with wine-like delivery restrictions and liability insurance requirements.
Basis: Bill text · Source: Introduced
Manufacturers would have had to implement new tax reporting mechanisms for the privilege tax, with annual cost-of-living adjustments capped at 1% after 2030, and maintain records for three years subject to OLCC inspection.
Basis: Bill text · Source: Introduced
The grant program would have created a funding source for business development and marketing efforts, but eligibility criteria and application processes would have depended on future OLCC rulemaking.
Basis: Bill text · Source: Introduced
Craft Distillery
A craft distillery produces a highly popular low-proof spirit beverage that qualifies for the endorsement. By selling directly to consumers and large retailers, the distillery would have eliminated distributor margins, captures the full retail price minus the $7/gal tax, and receives grant funding for marketing, resulting in exponential growth and market dominance within the low-proof segment.
Basis: Inferred · Source: Introduced
Off-Premises Retailer
A retailer obtains the endorsement but fails to navigate the complex intersection of wine delivery rules and low-proof spirit restrictions, leading to a significant compliance violation. The retailer faces severe penalties, loss of the endorsement, and potential liability for unauthorized deliveries, while the grant fund is exhausted by larger competitors before the retailer could have applied.
Basis: Inferred · Source: Introduced
The reliance on specific ABV and container size thresholds would have created a narrow window for classification. Weak enforcement or ambiguous OLCC rules could have allowed high-volume producers to use this category as a backdoor to bypass traditional distribution requirements, or retailers could have misclassified products to avoid stricter spirit regulations.
Sources · Introduced
Potential effect if enacted: The measure trades expanded market access and dedicated industry funding for craft producers against increased regulatory complexity and potential disruption to established distribution hierarchies by creating a distinct sales pathway based on product specifications rather than traditional licensing tiers.
Potential effect if enacted: Enhanced economic opportunities for small craft distilleries through direct sales channels and grant support.
Basis: Bill text · Source: Introduced
Potential effect if enacted: Increased consumer choice and access to low-proof spirit beverages via retail delivery.
Basis: Bill text · Source: Introduced
Potential effect if enacted: Creation of a self-funded grant program to support craft industry development without drawing from the General Fund.
Basis: Bill text · Source: Introduced
Potential effect if enacted: Regulatory complexity and compliance costs for producers and retailers navigating the new endorsement and tax requirements.
Basis: Bill text · Source: Introduced
Potential effect if enacted: Potential market distortion favoring craft producers over non-craft entities due to tax differentials and direct sales privileges.
Basis: Bill text · Source: Introduced
Potential effect if enacted: Risk of regulatory arbitrage where products are designed to meet technical definitions rather than reflecting genuine low-proof characteristics, potentially confusing consumers or undermining spirit regulations.
Basis: Bill text · Source: Introduced
Model self-rating: high. The bill text provides explicit definitions, tax rates, endorsement criteria, and operational privileges. The analysis is grounded directly in the statutory language without reliance on external speculation. This is the model’s assessment of its own analysis, not independent verification or human review.
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Records available in the current snapshot.
Earliest loaded signal
Introduced bill text posted
Posted Jan 28, 2026, 3:25 PM PST
Not a qualifying replacement
Only the introduced bill is available as adopted text; no qualifying replacement is established.
AI assessment dated 2026-09-29. This classification is separate from enactment and legal effect.
Evidence snapshot: 2026-09-29. Later legislative records are not automatically reassessed.
Policy purpose: broadly retained.
Reviewer: /root/review_recent_a · 2026-09-29
Not a qualifying replacement
Only the introduced bill is available as adopted text; no qualifying replacement is established.
Policy purpose: broadly retained.
“SECTION 1. Sections 2 to 5 of this 2026 Act are added to and made a part of ORS chapter 11 471. 12 SECTION 2. (1)(a) The Oregon Liquor and Cannabis Commission may issue a craft low- 13 proof spirit distiller endorsement to the holder of a distillery license issued under ORS 14 471.230 that produces ”
Introduced
“SECTION 1. Sections 2 to 5 of this 2026 Act are added to and made a part of ORS chapter 11 471. 12 SECTION 2. (1)(a) The Oregon Liquor and Cannabis Commission may issue a craft low- 13 proof spirit distiller endorsement to the holder of a distillery license issued under ORS 14 471.230 that produces ”
Introduced
Reviewer: /root/review_recent_b · 2026-09-29
Not a qualifying replacement
No replacement transition is documented.
Policy purpose: broadly retained.
“SECTION 1. Sections 2 to 5 of this 2026 Act are added to and made a part of ORS chapter 11 471. 12 SECTION 2. (1)(a) The Oregon Liquor and Cannabis Commission may issue a craft low- 13 proof spirit distiller endorsement ”
Introduced
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No deeper official pre-number history was found.
Chief sponsors: Representative Jason Kropf
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4 events
Full timeline
4 entries shown.
In committee upon adjournment.
Referred to Revenue.
First reading. Referred to Speaker's desk.
or to other wholesalers. 4 SECTION 28. ORS 317A.100, as amended by section 20, chapter 4, Oregon Laws 2025, and sec- 5 tion 6, chapter 502, Oregon Laws 2025, is amended to read: 6 317A
tion 13 of this 2026 Act. 6 SECTION 27. ORS 317A.100, as amended by section 6, chapter 502, Oregon Laws 2025, is 7 amended to read: 8 317A.100. As used in ORS 317A.100 to 317A.158: 9 (1
100, as amended by section 20, chapter 4, Oregon Laws 2025, and sec- 5 tion 6, chapter 502, Oregon Laws 2025, is amended to read: 6 317A.100. As used in ORS 317A.100 to 317A.158: 7 (1)(a
“Digest: The Act tells OLCC to let a distillery be a craft low-proof spirit distillery. The Act tells OLCC to let some stores sell low-proof spirit beverages. The Act also taxes the low-proof spirit beverages. (Flesch Readability Score: 60.9). Defines "craft low-proof spirit distiller" and "low-proof spirit beverage." Allows the Oregon Liquor and Cannabis Commission to issue a craft low-proof spirit distiller endorsement to certain distillery licensees. Directs the commission to issue a low-proof spirit beverage endorsement to the holder of an off-premises sales license for a premises that is greater than 4,000 square feet. Directs the commission to establish a craft brewery and distillery marketing and economic development grant program to support the craft brewery and distillery industry. Establishes the Craft Brewery and Distillery Marketing and Economic Development Grant Program Fund in the State Treasury. Imposes a tax on low-proof spirit beverages. Takes effect on the 91st day following adjournment sine die.”
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