OR HB3730

"Low-proof spirit beverage" is defined as an alcoholic beverage containing a mixture of distilled liquor and nonalcoholic liquid, with no more than 14% alcohol by volume, sold in factory-sealed containers not exceeding 375 milliliters.

Licensees authorized to import, export, sell, distribute, ship, or deliver wine may perform the same functions for low-proof spirit beverages under the same terms; distillery licensees may manufacture, import, conduct tastings, and sell low-proof spirit beverages directly to consumers or other authorized licensees.

Off-premises sales licensees with premises greater than 4,000 square feet may sell low-proof spirit beverages, and on-premises licensees authorized to sell wine may also sell low-proof spirit beverages for on-premises consumption.

A privilege tax of an unspecified amount (left blank in the bill) per gallon is imposed on manufacturers and importing distributors of low-proof spirit beverages, with 28% of revenues directed to the Mental Health Alcoholism and Drug Services Account specifically for youth alcohol use prevention programs.

Provisions become operative January 1, 2026, applying to low-proof spirit beverages manufactured or imported on or after that date; the act takes effect on the 91st day following adjournment of the 2025 legislative session.