OFFICE OF THE SECRETARY OF STATE  
SHEMIA FAGAN  
SECRETARY OF STATE
CHERYL MYERS  
DEPUTY SECRETARY OF STATE
ARCHIVES DIVISION  
STEPHANIE CLARK  
DIRECTOR
800 SUMMER STREET NE  
SALEM, OR 97310  
503-373-0701
NOTICE OF PROPOSED RULEMAKING
INCLUDING STATEMENT OF NEED & FISCAL IMPACT
CHAPTER 845
OREGON LIQUOR AND CANNABIS COMMISSIONFILED
06/30/2022 1:34 PM
ARCHIVES DIVISION
SECRETARY OF STATE
FILING CAPTION: This rule sets requirements for wine labels including the name of Nested American Viticultural 
Areas.
LAST DAY AND TIME TO OFFER COMMENT TO AGENCY: 08/05/2022   5:00 PM  
The Agency requests public comment on whether other options should be considered for achieving the rule's substantive goals while reducing negative economic 
impact of the rule on business.
CONTACT: Nicole Blosse  
971-420-4763  
nicole.blosse@oregon.gov9079 SE McLoughlin Blvd  
Portland,OR 97222Filed By:  
Nicole Blosse  
Rules Coordinator
HEARING(S) 
Auxiliary aids for persons with disabilities are available upon advance request. Notify the contact listed above.
DATE: 07/26/2022  
TIME: 2:00 PM  - 3:00 PM  
OFFICER: Nicole Blosse  
ADDRESS: Oregon Liquor & Cannabis Commission  
9079 SE McLoughlin Blvd  
Portland, OR 97222  
SPECIAL INSTRUCTIONS: 
To listen to, or participate in this Public Hearing, please call: 1 323-553-3576, Phone Conference ID: 637988536# , or select the link below.  In order to offer oral comment, please email OLCC.Rulemaking@oregon.gov no later than 1:00 pm on July 26, 2022. 
 
https://gcc02.safelinks.protection.outlook.com/ap/t-59584e83/?url=https%3A%2F%2Fteams.microsoft.com%2Fl%2Fmeetup-join%2F19%253ameeting_MDJjMjY5MzktNmZjZi00ZWE5LWI1YWMtMjJiZGRhNTg4ZDAz%2540thread.v2%2F0%3Fcontext%3D%257b%2522Tid%2522%253a%2522a9c7f87e-ac0c-45fc-bc12-480ad0b4ef44%2522%252c%2522Oid%2522%253a%2522214819e6-997d-4a22-9b03-
0d0d93773b90%2522%257d&data=05%7C01%7CNicole.Blosse%40oregon.gov%7Cfe3f27872b38428e752c08da5ab8998c%7Caa3f6932fa7c47b4a0cea598cad161cf%7C0%7C0%7C637922046165723419%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=pvIMEMhCs3%2BQ2OKi5RPq3nhIIkCV5iUKs6Uq46RZ1AA%3D&reserved=0.
NEED FOR THE RULE(S)
Senate Bill 829 passed in the 2019 legislative session. This bill was codified as ORS 471.802 and imposed certain wine 
labeling requirements related to Nested American Viticultural Areas within the Willamette Valley American Viticultural 
Area.  In response to this legislation, the OLCC adopted OAR 845-010-0923 in December 2020; however, the wine 
labeling requirements are not operative until January 1, 2023. Since the rule was adopted, the OLCC and wine industry 
members have identified rule clarifications; specifically, changing references of “brand label” to “wine label” and making 
clear that the rule applies to wine that is labeled on or after January 1, 2023. Commission staff propose to initiate 
rulemaking to clarify the rule language before the labeling requirements become operative.
DOCUMENTS RELIED UPON, AND WHERE THEY ARE AVAILABLE
Senate Bill 829 (available from Legislative Counsel) 
OLCC rulemaking files (available upon request from the OLCC.) 
Page 1 of 4STATEMENT IDENTIFYING HOW ADOPTION OF RULE(S) WILL AFFECT RACIAL EQUITY IN THIS STATE
At this time, the Commission has no data to suggest that this rule will impact racial equity in Oregon.
FISCAL AND ECONOMIC IMPACT: 
This statement takes into account the fiscal impact on: (a) Winery Licensees; (b) Local Government; (c) State Agencies; 
and (d) the Public. 
 
(a) Winery Licensees: 
Licensees may be impacted by these changes depending upon their position and actions within the market in the 
following ways: 
The Commission forecasts that the impact on winery licensees in the Willamette Valley will be minimal. The proposed 
amendment provides flexibility in placement of the name of the nested viticultural area. The existing rule provides for 
the use of non-conforming labels with OLCC permission, minimizing the fiscal impact. 
 
(b) Local Government: 
The Commission expects the proposed amendments to have no impact upon local governments, as the rules do not 
apply to them. 
 
(c) State Agencies: 
The Commission expects the proposed amendments to have no impact upon other state agencies, as the rules do not 
apply to them. The Oregon Liquor & Cannabis Commission forecasts a minimal impact because the proposed 
amendments allow more flexibility with placement of the nested AVA name, thus reducing the amount of non-
conforming label approval requests that the Commission might receive. Also, the proposed amendment only impacts 
wine labeled on or after January 1, 2023, thus requiring no changes to wine labels already in the market. 
 
(d) The Public: 
The Commission does not anticipate the proposed rule amendments will have an impact on the public. 
COST OF COMPLIANCE: 
(1) Identify any state agencies, units of local government, and members of the public likely to be economically affected by the 
rule(s). (2) Effect on Small Businesses: (a) Estimate the number and type of small businesses subject to the rule(s); (b) Describe the 
expected reporting, recordkeeping and administrative activities and cost required to comply with the rule(s); (c) Estimate the cost 
of professional services, equipment supplies, labor and increased administration required to comply with the rule(s). 
1. Impact on state agencies, units of local government and the public (ORS 183.335(2)(b)(E)): 
The Commission anticipates no new costs to comply with the proposed amendments for state agencies and local 
government. 
 
2. Cost of compliance effect on small business (ORS 183.336): 
a. Estimate the number of small businesses and types of business and industries with small businesses subject to the 
rule: 
This rule impacts wineries located in the Willamette Valley American Viticultural Area, which includes approximately 
700 wineries. 
 
b. Projected reporting, recordkeeping and other administrative activities required for compliance, including costs of 
professional services: 
The Commission forecasts that the impact on winery licensees in the Willamette Valley will be minimal. The proposed 
Page 2 of 4amendment provides flexibility in placement of the name of the nested viticultural area. The existing rule provides for 
the use of non-conforming labels with OLCC permission, minimizing the fiscal impact. 
 
c. Equipment, supplies, labor and increased administration required for compliance: 
The Commission forecasts that the impact on winery licensees in the Willamette Valley will be minimal. The proposed 
amendment provides flexibility in placement of the name of the nested viticultural area. The existing rule provides for 
the use of non-conforming labels with OLCC permission, minimizing the fiscal impact.
DESCRIBE HOW SMALL BUSINESSES WERE INVOLVED IN THE DEVELOPMENT OF THESE RULE(S):
The Commission has collaborated with industry members about these changes. The Commission looks forward to 
receiving feedback during the comment period about this rule.
WAS AN ADMINISTRATIVE RULE ADVISORY COMMITTEE CONSULTED?  NO   IF NOT, WHY NOT?
These changes are housekeeping in nature to provide clarification before the operative date of the rule, and the 
Commission anticipates a minimal fiscal impact to the industry. Industry has requested these amendments and the 
Commission looks forward to receiving comments at the public hearing or in the subsequent comment period. 
AMEND: 845-010-0923
RULE SUMMARY: Senate Bill 829 passed in the 2019 legislative session. This bill was codified as ORS 471.802 and 
imposed certain wine labeling requirements related to Nested American Viticultural Areas within the Willamette Valley 
AVA.  In response to this legislation, the OLCC adopted OAR 845-010-0923 in December 2020; however, the wine 
labeling requirements are not operative until January 1, 2023. Since the rule was adopted, the OLCC and wine industry 
members have identified rule clarifications; specifically, changing references of “brand label” to “wine label” and making 
clear that the rule applies to wine that is labeled on or after January 1, 2023. Commission staff propose to initiate 
rulemaking to clarify the rule language before the labeling requirements become operative.
CHANGES TO RULE: 
845-010-0923  
Wine Label Designation of Nested American Viticultural Areas  
(1) For the purposes of this rule, "Nested American Viticultural Area" or "Nested AVA" means an American 
Viticultural Area or "AVA" that is partially or wholly contained within a larger American Viticultural Area.¶  
(2) OAny wine labeled o n or after January 1, 2023 , any wine label that includes  that includes on the wine label  the 
name of a Nested AVA that is wholly or partially contained within an AVA listed in section (6) of this rule must 
include the name of the larger AVA on the brand wine  label.¶  
(3) The letter size of the larger AVA name must be at least:¶  
(a) Two millimeters high if the wine container is more than 187 milliliters in volume; or¶  
(b) One millimeter high if the wine container is 187 milliliters or less in volume.¶  
(4) The name of the larger American Viticultural Area may:¶  
(a) Be included in or near the name of the Nested AVA; or¶  
(b) Be in the same size or font as the Nested AVA.¶  
(5) The appearance of an AVA on the label may not resemble a brand name or appear in lettering that is larger or 
more prominent than the brand name for the product, unless the brand name stating or implying an AVA has been 
in continuous use as a brand name since December 31, 2017, and prior to December 31, 2017, was:¶  
(a) Used in conformance with Commission standards;¶  
(b) Subject to a federal trademark registration for wine under United States Patent and Trademark Office Class 
33; and¶  
(c) Sold in interstate commerce.¶  
(6) When the appellation of origin used on a wine label is a nested AVA wholly or partially within the Willamette 
Valley AVA, then the separate phrase "Willamette Valley" must appear on the brand wine  label  of the wine .¶ 
(7) Notwithstanding Section (2) of this rule, a manufacturer may submit a written request to the Commission as 
described in this section to affix non-conforming labels to containers of wine on or after January 1, 2023. The 
Page 3 of 4Commission will evaluate and provide approval of these requests on a case-by-case basis. Requests to use up the 
remaining stock of labels on or after January 1, 2023 must include:¶  
(a) Information identifying the affected label(s) including:¶  
(A) A copy of the TTB-approved certificate of label approval (COLA); or¶  
(B) Other copy of the label intended for use and a TTB certificate of exemption from label approval.¶  
(b) The reason for the non-conforming label (i.e. how did this happen);¶  
(c) The steps the licensee will take to ensure that all future labels to be printed comply with this rule;¶  
(d) The quantity of non-conforming labels the licensee needs to use up; and¶  
(e) The length of time the licensee anticipates it will need to use up the nonconforming labels.  
Statutory/Other Authority: ORS 471.030, 471.730  
Statutes/Other Implemented: ORS 471.442, 471.445, 471.446, 471.802
Page 4 of 4