(1) As used in this section:

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(a) ‘Agri-tourism or other commercial events’ includes outdoor concerts for which admission is charged, educational, cultural, health or lifestyle events, facility rentals, celebratory gatherings and other events at which the promotion of malt beverages produced in conjunction with the farm brewery is a secondary purpose of the event.

(b) ‘Brewer’ means a person who makes malt beverages.

(c) ‘Farm brewery’ means a facility, located on or contiguous to a hop farm, used primarily for the commercial production, shipping and distribution, wholesale or retail sales, or tasting of malt beverages made with ingredients grown on the hop farm.

(d) ‘Hop farm’ means a tract of land planted with hops.

(e) ‘Malt beverage’ has the meaning given that term in ORS § 471.001.

(f) ‘On-site retail sale’ includes the retail sale of malt beverages in person at the farm brewery site, through a club or over the Internet or telephone.

(2)(a) A farm brewery may be established as a permitted use on land zoned for exclusive farm use under ORS § 215.213 (1)(bb) and 215.283 (1)(z) or on land zoned for mixed farm and forest use if the farm brewery:

(A) Produces less than 150,000 barrels of malt beverages annually, inclusive of malt beverages produced by the farm brewery’s owners or operators at the farm brewery or elsewhere, through any entity owned or affiliated with the farm brewery;

(B) Produces less than 15,000 barrels of malt beverages annually on the farm brewery site; and

(C)(i) Owns an on-site hop farm of at least 15 acres;

(ii) Owns a contiguous hop farm of at least 15 acres;

(iii) Has a long-term contract for the purchase of all of the hops from at least 15 acres of a hop farm contiguous to the farm brewery; or

(iv) Obtains hops from a total of 15 acres from any combination of sources described in sub-subparagraph (i), (ii) or (iii) of this subparagraph.

(b) For purposes of this subsection, land planted with other ingredients used in malt beverages produced by the farm brewery counts towards the acreage minimums.

(3) In addition to any other activities authorized for a farm brewery, a farm brewery established under this section may:

(a) Market malt beverages produced in conjunction with the farm brewery.

(b) Conduct operations that are directly related to the sale or marketing of malt beverages produced in conjunction with the farm brewery, including:

(A) Malt beverage tastings in a tasting room or other location on the premises occupied by the farm brewery;

(B) Malt beverage club activities;

(C) Brewer luncheons and dinners;

(D) Farm brewery and hop farm tours;

(E) Meetings or business activities with farm brewery suppliers, distributors, wholesale customers and malt beverage industry members;

(F) Farm brewery staff activities;

(G) Open house promotions of malt beverages produced in conjunction with the farm brewery; and

(H) Similar activities conducted for the primary purpose of promoting malt beverages produced in conjunction with the farm brewery.

(c) Market and sell items directly related to the sale or promotion of malt beverages produced in conjunction with the farm brewery, the marketing and sale of which is incidental to on-site retail sale of malt beverages, including food and beverages:

(A) Required to be made available in conjunction with the consumption of malt beverages on the premises by the Liquor Control Act or rules adopted under the Liquor Control Act; or

(B) Served in conjunction with an activity authorized by paragraph (b), (d) or (e) of this subsection.

(d) Subject to subsections (6) to (9) of this section, carry out agri-tourism or other commercial events on the tract occupied by the farm brewery.

(e) Host charitable activities for which the farm brewery does not charge a facility rental fee.

(f) Site a bed and breakfast as a home occupation on the same tract as, and in association with, the farm brewery.

(4) A farm brewery may include on-site kitchen facilities licensed by the Oregon Health Authority under ORS § 624.010 to 624.121 for the preparation of food and beverages described in subsection (3)(c) of this section. Food and beverage services authorized under subsection (3)(c) of this section may not utilize menu options or meal services that cause the kitchen facilities to function as a cafe or other dining establishment open to the public.

(5)(a) The gross income of the farm brewery from the sale of incidental items or services provided pursuant to subsection (3)(c) to (e) of this section may not exceed 25 percent of the gross income from the on-site retail sale of malt beverages produced in conjunction with the farm brewery. The gross income of a farm brewery does not include income received by third parties unaffiliated with the farm brewery.

(b) At the request of a local government with land use jurisdiction over the site of a farm brewery, the farm brewery shall submit to the local government a written statement prepared by a certified public accountant that certifies the compliance of the farm brewery with this subsection for the previous tax year.

(6) Except as provided by subsections (7) and (8) of this section, a farm brewery may carry out agri-tourism or other commercial events described in subsection (3)(d) of this section for up to 18 days per calendar year.

(7) A farm brewery in the Willamette Valley may carry out agri-tourism or other commercial events as provided in subsection (6) of this section, provided:

(a) Events on the first six days of the 18-day limit per calendar year are authorized by the local government through the issuance of a renewable multiyear license that:

(A) Has a term of five years; and

(B) Is subject to an administrative review to determine necessary conditions pursuant to subsection (8) of this section.

(b) The local government’s decision on a license under paragraph (a) of this subsection is not:

(A) A land use decision, as defined in ORS § 197.015, and is not subject to review by the Land Use Board of Appeals.

(B) A permit, as defined in ORS § 215.402 or 227.160.

(c) Events on days seven through 18 of the 18-day limit per calendar year are authorized by the local government through the issuance of a renewable multiyear permit that:

(A) Has a term of five years;

(B) Is subject to an administrative review to determine necessary conditions pursuant to subsection (8) of this section; and

(C) Is subject to notice as specified in ORS § 215.416 (11) or 227.175 (10).

(d) The local government’s decision on a permit under paragraph (c) of this subsection is:

(A) A land use decision, as defined in ORS § 197.015, and is subject to review by the Land Use Board of Appeals.

(B) A permit, as defined in ORS § 215.402 or 227.160.

(8)(a) A local government with land use jurisdiction over the site of a farm brewery shall ensure that agri-tourism or other commercial events occurring as described in subsection (3)(d) of this section are subordinate to the production and sale of malt beverages and do not create significant adverse impacts to uses on surrounding land.

(b) A local government may impose conditions on a license or permit issued pursuant to subsection (7) of this section as necessary to meet the requirements of paragraph (a) of this subsection. The conditions must be related to:

(A) The number of event attendees;

(B) The hours of event operation;

(C) Access and parking;

(D) Traffic management;

(E) Noise management; and

(F) Sanitation and solid waste.

(9) A local government may charge a fee for processing a license or permit under subsections (6) and (7) of this section. The fee may not exceed the actual or average cost of providing the applicable licensing or permitting service.

(10) When a bed and breakfast facility is sited as a home occupation on the same tract as a farm brewery as described in subsection (3)(f) of this section:

(a) The bed and breakfast facility may prepare and serve two meals per day to the registered guests of the bed and breakfast facility; and

(b) The meals may be served at the bed and breakfast facility or at the farm brewery.

(11) A farm brewery operating under this section shall provide parking for all activities or uses of the tract on which the farm brewery is situated.

(12) A local government with land use jurisdiction over the site of a farm brewery shall ensure that the farm brewery complies with:

(a) Local criteria regarding floodplains, geologic hazards, the Willamette River Greenway, solar access and airport safety;

(b) Regulations of general applicability for the public health and safety; and

(c) Regulations for resource protection acknowledged to comply with any statewide goal relating to open spaces, scenic and historic areas and natural resources.

(13)(a) For the purpose of limiting demonstrated conflicts with accepted farm and forest practices on adjacent lands, a local government with land use jurisdiction over the site of a farm brewery shall:

(A) Except as provided in paragraph (b) of this subsection, establish a setback of at least 100 feet from all property lines for the farm brewery and all public gathering places; and

(B) Require farm breweries to provide direct road access and internal circulation for the farm brewery and all public gathering places.

(b) A local government may allow a setback of less than 100 feet by granting a farm brewery an adjustment or variance to the requirement described in paragraph (a)(A) of this subsection. [2019 c.244 § 2]

[1955 c.682 § 4; repealed by 1971 c.13 § 1]