A Chip in Alcohol's Three-Tier System is Chiseled Away

Oregon Legislature Set to Abandon Three-Tier System for Beer

Changes in the way we sell and distribute alcohol come slowly, one chip in the brick at a time. One of those chips off the brick is now official: the settlement between the state of Oregon and Washington brewers over their suit challenging Oregon’s discriminatory beer laws appears to be final.

As reported by INSIGHTS Express, Oregon “agreed not to enforce current law that blocks direct shipments from breweries in states that don’t allow shipments from OR breweries. It will also begin permitting out-of-state brewers for self-distribution to OR retailers.”

The settlement agreement will be in place for five years or until the Oregon legislature enacts a law allowing self-distribution and direct shipment of beer into Oregon not just by Washington brewers but by brewers across the country. There is already a bill making its way through the Oregon legislature that does just this. House Bill 2013, which is going to pass this year, will codify the right of out-of-state brewers to self-distribute to Oregon retailers and allow them to ship beer direct to Oregon consumers.

Attorney Judy Parker of Oregon served as local counsel in the federal lawsuit that challenged Oregon’s discriminatory brewer self-distribution and direct shipping laws as a violation of the Constitution’s dormant Commerce Clause. Asked about the settlement, Parker said: “This is a big win for Oregon consumers. This settlement and the prospects of HB 2013 becoming law will bring Oregon policies in line with the United States Constitution’s provisions that prevent states from engaging in economic discrimination against out-of-state businesses.”