The January 2017 “Guidance for Food Service at Wineries on Farmland under Oregon Senate Bill 841” issued by the Oregon Land Conservation and Development Commission and Oregon Liquor Commission with input from the Oregon Winegrowers Association, seeks to help answer questions that have arisen since the 2013 enactment of Senate Bill 841.

Prior to enactment of SB 841, food service at permitted use wineries on farm land was limited to “individually portioned prepackaged foods prepared from an approved source by a commercial processor.” Guidance at 2. Counties may no longer enforce that limited service restaurant restriction on wineries that qualify as permitted uses under current law. Guidance at 3. That said, restaurants are still not allowed.

Oregon’s land use system places a high priority on preservation of farmland for farm use, and state law identifies types of uses permitted outright on land with exclusive farm use zoning and uses that may be conditionally allowed on those lands. (See, for example, ORS 215.283.) SB 841 revised ORS 215.452 to provide production and vineyard size standards for wineries classified as permitted outright. Food service is allowed at these permitted wineries on both exclusive farm use land and mixed farm forest lands subject to statutory limitations.

Given that Oregon Liquor Control Commission Rules may require that food be available as part of the onsite consumption of wine, and the fact that tailored events such as wine-food pairings and winemaker dinners may promote winery success, the enhanced flexibility provided by SB 841 is welcome. Still, as the Guidance makes clear, food service may not become the predominant activity. The Guidance ends with a series of questions that may help a winery operation determine whether proposed food service is authorized at a permitted use winery. Among those questions are:
Continue Reading 2017 Food Service Guidance for Oregon Wineries

Significant changes are on the way for Liquor Laws in Utah.  H.B. 442 passed the legislature on March 8, 2017 and Governor Herbert signed it into law March 29, 2017.  The new law makes numerous changes to how restaurants, dining clubs and off-premise beer retailers will operate.  These changes will create opportunities for some, and present significant challenges for others.  Following is a summary of some of the more meaningful changes for businesses.  Note that the law affects many licensees though, so we encourage anyone who sells alcohol in Utah to discuss the changes with their attorney.

Restaurants and Bars

The law replaces the current Restaurant – Dining Club – Social Club structure with two categories: Restaurants and Bars, making Dining Clubs obsolete.  Bars and restaurants will have to start displaying an 8.5 x 11 sign declaring that they are either a bar or a restaurant, and not the other.

On the good news front, restaurants will be able to choose how they want to operate their own bars from the following three options:
Continue Reading 2017 Changes to Utah Liquor Laws

This blog post was co-authored by Stoel Rives attorneys Wes Miliband and Eric Skanchy.

Under the Sustainable Groundwater Management Act (“SGMA”), California’s landmark groundwater legislation, local Groundwater Sustainability Agencies (“GSAs”) must be formed to assess conditions in their local water basins and to develop locally-based groundwater sustainability plans (“GSPs”).

GSAs, which must be formed by June 30, 2017, will have the ability to register and monitor wells and to potentially restrict pumping and prevent drilling of new wells. GSAs will also have the ability to assess new fees and taxes. These local agencies will be in the driver’s seat when it comes to addressing a very complex problem seen in many areas of California: managing groundwater to ensure long-term sustainability of groundwater supplies.

Given the influence these GSAs will have, it is not surprising that various interest groups and stakeholders covet a seat at the table. This was not lost on wine industry representatives in Sonoma County, who petitioned the County to give the industry voting power on the yet-to-be-formed GSAs.
Continue Reading Sonoma County Rejects Wine Industry Request for Voice in Groundwater Regulations

The following is an adaptation by my colleague Tony DeCristoforo of a post by Bryan Hawkins, Kirk Maag and Adam Belzberg that originally appeared on Stoel Rives World of Employment blog.

California Governor Jerry Brown recently signed AB 1066, which will require grape growers and other agricultural employers in California to pay overtime under the same conditions as non-agricultural businesses. The bill is the first of its kind in the nation.

California law defines employees “employed in an agricultural occupation” broadly to include any employment relating to the cultivation or harvesting of agricultural commodities, or the maintenance and improvement of a farm and/or farm equipment.  Prior to the signing of AB 1066, such employees were entitled to time-and-a-half pay after working 10 hours in a day or 60 hours in a week.  This is substantially different from the overtime laws for California employees in most other industries and occupations, where overtime pay typically kicks in after eight hours in a day or 40 hours in a week.
Continue Reading California Expands Overtime for Farmworkers

The interest in urban wineries is on the rise, with companies looking to take advantage of close proximity to customers, empty warehouse and industrial space, and access to city water and sewer.  However, hidden land use issues can present significant problems when pursuing this type of urban property, particularly within the City of Portland (City).

“Grandfathered” Uses

With the changing urban landscape (in-fill development, urban renewal areas, etc.), many older warehouses and industrial spaces are located in zones that now restrict commercial and industrial activities.  This means that although an industrial activity may have historically occupied the building, a new or changed industrial use may be prohibited or restricted under the City’s current land use regulations.  Even if the building is marketed as a “grandfathered” industrial space, that does not mean it has been approved as a legal nonconforming use or situation under the City’s code.  It is important to know whether the City has already issued a legal nonconforming determination for the industrial activities and, if not, to consider whether such a determination can be obtained prior to acquiring the property.  The City’s website provides a good explanation of the process and the review requirements
Continue Reading Hidden Land Use Issues with Urban Winery Properties

Congratulations to Pascal Brooks and Janie Heuck for their tremendous success growing Brooks Winery and keeping alive the memory of Pascal’s father and Janie’s brother Jimi.  We join them in looking forward to viewing Strange Inheritance With Jamie Colby that tells the amazing story of their journey to preserve the winery for Pascal, which was

The folks at the U.S. Patent & Trademark Office (“PTO”) received nearly half a million trademark applications last year. These applications included thousands of new filings by breweries, vineyards, wineries, and distilleries. Here are five important lessons we learned from last year’s decisions by various trademark tribunals about protecting and registering your mark in the beer, wine or spirits industries.
Continue Reading Five Important Trademark Lessons the Beverages Trade Learned in 2014

The following post was written by my colleagues Tom Woods, Parissa Ebrahimzadeh & Bao Vu

As part of the Northern California business community and as an advisor to business, we support the Napa and the surrounding Bay Area in getting homes and businesses back on their feet following the August 24, 2014 Napa Valley earthquake.

The earthquake that rocked Napa Valley and nearby regions left an estimated $1 billion in damages, according to a county news release. The McClatchy News Service recently observed the quake “upended more than wine barrels and mobile homes. It also was an unsettling reminder of how few Californians – homeowners and businesses alike – carry earthquake insurance.”

Sure, insurance agents will discuss earthquake insurance policies with business owners, but Napa Valley region had not experienced a quake of such magnitude since 1989. Thus, this rare but catastrophic risk was one for which the cost-benefit analysis dictated to many Californians that they should forgo the expensive form of insurance. Statistically, the shocking drop in homeowner earthquake insurance policies purchased over the last decade was dwarfed by the 29% drop in the number of California businesses that purchased policies over the same period. Reports are that only 10% of California businesses and residents carrying property insurance also carry earthquake insurance.

Where the wine and agriculture industry suffered $48 million worth of damage, and with over 120 businesses affected, the questions running through so many confused and disrupted lives include: “What do I do now? Did I need earthquake insurance, specifically? Am I covered? How do I perfect a claim if I am covered and where can I go for help?”Continue Reading Rebuilding: Dealing with or Without Earthquake Insurance

The Alcohol and Tobacco Tax and Trade Bureau (TTB) issued a notice yesterday stating that it will consider waiving – on a case-by-case basis – late filing, payment or deposit penalties for taxpayers unable to file payment of Federal excise taxes due to the August 24, 2014, Northern California earthquake. Text of the statement follows below.Continue Reading TTB Will Consider Penalty Waivers for Late Payment of Excise Taxes By Businesses Impacted by Northern California Earthquake

Stoel Rives’ 7th Annual Oregon Wine Law Seminar attracted nearly 100 wine industry professionals and covered several hot topics ranging from employment law, allergen and organic labeling regulations, growler enforcement and other legislative updates, and distribution agreements. We also caught up with Mark Freund, Managing Director, Silicon Valley Bank, Kevin O’Brien, Director –