Here is a brief review of some of the issues followed by ONSA during 2003. These issues represent the work ONSA has been doing throughout the year on your behalf. Please take just a moment a send a small contribution to help strengthen ONSA’s voice and keep ONSA working for you throughout 2004!

Proposals to increase the beer tax during the session ranged from the socalled 2¢ per drink increase, an overall increase of 254% (See below), up to a proposal to increase the beer tax to 10¢ per drink, which would have been an
increase of 1,272%.

ONSA was one of the most vocal opponents to this tax increase, along with Oregon’s small breweries, distributors and beer manufacturers. The beer tax debate continued throughout session and with ONSA’s help, the final result was NO INCREASE IN BEER TAXES!

The need for increased tax revenue to balance the state budget drove a number of legislators to reconsider the possibility of another cigarette tax increase. Oregon’s cigarette tax is now the eighth highest in the nation. Just as ONSA opposed the tax increase during the September 2002 special election, ONSA continued to
oppose the various legislative proposals suggesting increases of 20-cents up to 70- cents per pack.

Bottle Bill Regulations:
Looking at some of the other issues of interest to ONSA members, SB 926 amended Oregon’s bottle bill regulations.

Effective January 1, 2004, retailers are allowed to refuse to accept containers when the brand is unidentifiable.

HB 3058 became effective on June 6, 2003 and eliminated the requirement that military identification cards used as proof of age when
purchasing alcohol contain a physical description (height, weight, eye color, etc.) New military cards contain a photo and the individual’s date of birth.

Early in 2003, the federal Alcohol and Tobacco Tax and Trade Bureau (TTB) proposed new rules for beer and malt beverage regulations related to “flavored malt beverages”. In order to clarify the status of flavored malt beverages and how they will be marketed in Oregon, the Legislature adopted HB 3130, allowing grocery and convenience stores to continue selling flavored malt beverages, “malternatives,” regardless of alcohol content from distilled liquor until December 31, 2004.

If the proposed federal regulations are adopted, any beer or malt beverage product containing 0.5 percent or more alcohol by volume that is
derived from distilled spirits, or from distilled spirits in the form of flavors or other materials, would be classified as distilled spirits. The comment period on the federal rules closed on October 21, 2003, but the final rules have
not been published.

In terms of employment issues, passage of HB 3544 allows employers to deduct $1 per week as a processing fee for processing employee garnishments; however, the fee may not be collected if it would lower a debtor’s net
disposable income below statutory minimum amounts.

These are only a few of the more than 200 bills which ONSA monitored throughout the 2003 Legislative Session. If you have any questions about these, or other legislation approved during session, please contact ONSA, (503) 316-0638. •