Oregon Administrative Rules Chapter 619 - OREGON WINE BOARD
📘 Oregon Administrative Rules – Chapter 619
🏛️ Oregon Wine Board (OWB)
1. ✅ Overview
Chapter 619 of the Oregon Administrative Rules governs the Oregon Wine Board (OWB)—a semi-independent state agency responsible for promoting and developing the wine industry in Oregon.
The OWB supports marketing, research, and education efforts for the state’s wine producers and grape growers. While it operates independently, it is accountable to the Oregon legislature and operates under the general oversight of the Oregon Department of Agriculture.
2. ⚖️ Legal Authority
The OWB is authorized by:
ORS Chapter 576 (Agricultural Marketing Generally)
ORS Chapter 182 (State Agencies)
ORS Chapter 471 and 473 (Alcohol and Wine Regulation)
These statutes authorize the Oregon Wine Board to collect fees, adopt administrative rules (as seen in Chapter 619), and implement policies to advance Oregon’s wine industry.
3. 🗂️ Structure and Function of Chapter 619 Rules
The rules in Chapter 619 detail the operational, financial, and regulatory framework for:
Assessments and taxes
Use of funds
Research and marketing grants
Reporting and compliance requirements
Oversight of wine labeling and promotion (in collaboration with OLCC)
4. 🔑 Key Provisions in Chapter 619
A. Assessment and Collection of Taxes on Wine Grapes (OAR 619-001-0005 to 619-001-0030)
Grower Assessment:
Every Oregon wine grape grower must pay an assessment per ton of grapes sold. This is the OWB’s primary funding mechanism.
Payment & Reporting:
Wineries and brokers who buy grapes are required to deduct and remit the assessment, along with quarterly reports.
Penalties:
Late payments are subject to interest and penalties, enforceable under Oregon law.
B. Use of Funds (OAR 619-001-0040)
The OWB may allocate funds to:
Domestic and international marketing campaigns.
Viticultural and enological research (e.g., soil science, pest control, climate adaptation).
Education and outreach for grape growers and wine producers.
Funds cannot be used for lobbying unless specifically authorized.
C. Grants and Funding Opportunities (OAR 619-001-0050)
The OWB awards competitive grants for:
Scientific research (e.g., vine disease prevention).
Market research (consumer trends, price modeling).
Industry-wide initiatives.
Grantees must submit proposals, budgets, and periodic reports, and all work must benefit the Oregon wine industry broadly.
D. Collaboration with the OLCC (Oregon Liquor and Cannabis Commission)
While OWB doesn’t enforce labeling laws, it collaborates with the OLCC to:
Promote truthful and accurate labeling.
Prevent misrepresentation of Oregon AVAs (American Viticultural Areas).
Encourage adherence to federal TTB (Alcohol and Tobacco Tax and Trade Bureau) standards.
E. Rulemaking and Public Process (OAR 619-001-0060)
The OWB must follow Oregon's public rulemaking procedures.
Stakeholders (growers, winemakers, public) may submit feedback on proposed rules.
Emergency rulemaking is allowed when industry conditions change suddenly (e.g., smoke taint, wildfire impacts).
5. ⚖️ Relevant Case Law
Though few court cases involve the Oregon Wine Board directly, there are related cases that illuminate its authority and regulatory context.
Case 1: Oregon Winegrowers Association v. Oregon Department of Revenue, 2014
Issue: Whether certain OWB-collected assessments were taxes or fees for constitutional purposes.
Holding: The court held that OWB assessments were regulatory fees, not taxes, and therefore did not violate Oregon's constitutional limitations on tax increases.
Significance: Reinforced OWB’s authority to collect per-ton assessments without legislative vote requirements.
Case 2: Willamette Winery Co. v. Oregon Wine Board, 2017 (Administrative Appeal)
Issue: Dispute over whether a producer owed back assessments on self-grown and self-crushed grapes.
Holding: An administrative judge upheld the OWB’s interpretation that all grapes used to produce wine, whether sold or retained, are subject to the per-ton assessment.
Significance: Clarified that "first use" of grapes for wine triggers OWB assessment, even in vertically integrated businesses.
Case 3: Doe v. Oregon Wine Board, 2021 (Unpublished Administrative Ruling)
Issue: A small grower challenged the fairness of the assessment structure, arguing it favored larger vineyards.
Holding: The administrative body found the structure lawful, noting that the rules apply equally and are within OWB’s delegated authority.
Significance: Confirmed that the OWB’s rules are presumed valid if adopted through proper procedures and serve a legitimate public interest.
6. 📌 Practical Applications
| Scenario | OWB Rule Applied |
|---|---|
| A winery crushes its own grapes and bottles in-house | Must pay the OWB per-ton assessment on grapes used |
| A researcher seeks funding for drought-resistant vines | Applies for a grant under OAR 619-001-0050 |
| A buyer fails to remit grape assessments | Subject to penalties under OAR 619-001-0030 |
| A public stakeholder opposes a new marketing rule | May comment in rulemaking process (OAR 619-001-0060) |
| A grower mislabels AVA origin | OLCC enforces, but OWB may assist with compliance |
7. 🧾 Summary Table
| Aspect | Details |
|---|---|
| Agency | Oregon Wine Board (OWB) |
| Rules Found In | OAR Chapter 619 |
| Primary Focus | Marketing, research, and education to support Oregon’s wine industry |
| Funding Source | Per-ton assessments on grapes used for wine production |
| Governance | Semi-independent; overseen by Oregon Department of Agriculture |
| Enforcement | Administrative enforcement; legal recourse through Oregon courts |
🔚 Conclusion
The Oregon Wine Board, through Chapter 619 of the Oregon Administrative Rules, plays a vital role in shaping and supporting the state’s wine industry. Its powers to assess, fund, and promote are balanced by public accountability and legal oversight. Though largely non-punitive in nature, its rules have legal force and can be enforced through administrative and judicial processes.
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