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Oregon Bulletin

January 1, 2012

 

Oregon Liquor Control Commission
Chapter 845

Rule Caption: Amendment removing requirement for Self-Distribution Permit applicants to provide true copy of manufacturing license.

Adm. Order No.: OLCC 11-2011

Filed with Sec. of State: 12-6-2011

Certified to be Effective: 1-1-12

Notice Publication Date: 10-1-2011

Rules Amended: 845-005-0425

Subject: This rule describes the qualifications necessary for an out-of-state manufacturer to obtain a Self-Distribution Permit, which allows the permittee to ship wine or cider they manufacture directly to Oregon retail licensees who hold a valid Commission endorsement authorizing its receipt. House Bill (HB) 2147 has passed with an emergency clause, effective June 2, 2011. HB 2147 amends ORS 471.274 and has eliminated the statutory requirement to provide a true copy of an applicant’s manufacturing license. The new statutory language now provides the alternative of the applicant providing sufficient information to allow for Commission verification of the out-of-state license by electronic means. Subsection (2)(a) of this rule was amended to bring it into statutory compliance.

Rules Coordinator: Jennifer Huntsman—(503) 872-5004

845-005-0425

Qualifications for Wine Self-Distribution Permit for Wine and Cider

ORS 471.274 allows a manufacturer of wine or cider with a Wine Self-Distribution Permit to sell and ship wine and cider that the manufacturer produced directly to the Commission or to retail licensees of the Commission who hold a valid endorsement issued by the Commission authorizing receipt of wine or cider from the holder of a Wine Self-Distribution Permit. This rule sets the qualifications to obtain a Wine Self-Distribution Permit.

(1) In order to qualify for a Wine Self-Distribution Permit, a person must:

(a) Hold a valid license issued by another state within the United States that authorizes the manufacture of wine or cider;

(b) Hold a valid Certificate of Approval issued under ORS 471.244; and

(c) Hold a bond or other security, as described in ORS 471.155, in the minimum amount of $1,000.

(2) Application. A person must make application to the Commission upon forms to be furnished by the Commission and receive a Wine Self-Distribution Permit from the Commission before shipping any wine or cider directly to retail licensees of the Commission. The application shall include:

(a) Any information required by the Commission to establish that the applicant holds a valid license authorizing the manufacture of wine or cider;

(b) A statement that the person understands and will follow Oregon’s alcohol laws and rules regarding wine self-distribution, tied-house and financial assistance prohibitions, and wine and cider privilege tax;

(c) Proof of a valid Certificate of Approval issued under ORS 471.244;

(d) A $100 fee; and

(e) Proof of posting a bond or other security, as described in ORS 471.155, in the minimum amount of $1,000.

(3) The Commission may refuse to process any application required under this rule that is not complete and accompanied by the documents or disclosures required by the form. The Commission shall give applicants the opportunity to be heard if the Commission refuses to process an application. A hearing under this subsection is not subject to the requirements for contested case proceedings under ORS Chapter 183.

(4) The Commission may revoke or refuse to issue or renew a Wine Self-Distribution Permit if the permit holder or applicant fails to qualify for the permit under this rule or a refusal basis applies under ORS Chapter 471 or any other rule of the Commission and good cause does not overcome the refusal basis.

Stat. Auth.: ORS 471, including 471.030, 471.040 & 471.730(1) & (5)

Stats. Implemented: ORS 471.272 & 471.274

Hist.: OLCC 23-2007(Temp), f. 12-14-07, cert. ef. 1-1-08 thru 6-28-08; OLCC 8-2008, f. 6-12-08, cert. ef. 6-29-08; OLCC 11-2011, f. 12-6-11, cert. ef. 1-1-12

 

Rule Caption: Amendment implementing statutory change expanding license types allowed to participate in Responsible Vendor Program.

Adm. Order No.: OLCC 12-2011

Filed with Sec. of State: 12-6-2011

Certified to be Effective: 1-1-12

Notice Publication Date: 10-1-2011

Rules Amended: 845-009-0135

Subject: This rule describes the Commission’s standards and procedures for participation in the Responsible Vendor Program (RVP). The 2011 legislature has passed House Bill (HB) 2148, effective January 1, 2012. HB 2148 amends ORS 471.344 by changing the definition of “retail licensee” for purposes of the RVP. Rather than using the definition in ORS 471.392, which excludes certain license types with retail privileges such as a Brewery-Public House license and a Winery license, the new statutory language allows any licensee with retail privileges to participate in the RVP. Amending OAR 845-009-0135, by deleting the current definition of “retail licensee” and adding language to the now section (2), brings our rule into compliance with the new statutory language. While the rule was open, we also amended what is now (7)(a) so that licensees will not be removed from the RVP if the only program element they are missing is the posting requirement for house policies or legal I.D. signs. The amendments also include the addition in what is now (3)(e) of the requirement to produce training records for inspection within five business days. And finally, to improve clarity, amendments include an overall clean up and restructuring of what are now sections (5) and (7), governing both maintenance of RVP status and program removal & reinstatement.

Rules Coordinator: Jennifer Huntsman—(503) 872-5004

845-009-0135

Responsible Vendor Program

(1) Purpose. ORS 471.344 requires the Commission to establish a Responsible Vendor Program (program) for retail licensees, including the positive measures a licensee must take to participate in the program. The purpose of this rule is to set standards and procedures for program participation.

(2) Application Process. To be eligible for the program, a licensee must hold a liquor license that authorizes the sale of alcoholic beverages at retail. Any eligible licensee who meets the program standards may participate. To apply for the program, the licensee must complete and submit a Commission-provided application form. Commission staff will review the application for completeness, and will:

(a) Approve a completed application that clearly indicates the licensee has all program standards in place; put the application in the licensee’s file; and send a certificate to the licensee acknowledging the licensee as an approved Responsible Vendor. The Responsible Vendor Program is a self-certifying program. The approval means only that staff has reviewed the application to confirm that it is complete and that the licensee states in writing that he/she has all the program standards in place. The Commission may take administrative action if it learns that the licensee did not meet all the standards at the time of application; or

(b) Return an incomplete application that does not clearly indicate the licensee has all program standards in place. Staff will include a letter highlighting the reason/s the application is being returned.

(3) Program Standards. To qualify as a Responsible Vendor, a licensee must:

(a) Train each employee in alcohol sales. For training purposes, an employee is any person whose responsibilities include the sale or service of alcohol. Except for an on-premises employee who has a valid service permit, each employee must:

(A) Before selling alcohol, read and sign the Commission-provided off-premises brochure or, at the licensee’s discretion, meet the alternative requirements of OAR 845-009-0130, Training Brochure Requirement for Off-Premises Sales Employees. Licensees must comply with the record keeping requirements of 845-009-0130; and

(B) Within three days of beginning to sell alcohol, receive training that covers at a minimum the topics listed in Section (4) of this rule. Licensees may train their employees themselves; licensee’s trainings do not require Commission approval. Licensees may also choose to use any clerk training course approved by the Commission under OAR 845-009-0145, Clerk Training Courses. Additionally, servers who have not completed a Server Education course must do so within the time required in 845-009-0100, Service Permittee Requirements.

(b) Accept only identification allowed in ORS 471.130.

(c) In an area visible to employees, post the house policies on alcohol sales and checking identification. The licensee must have each employee read and sign the house policies which must include at a minimum:

(A) A list of valid types of identification which are accepted at the premises;

(B) Directions for properly checking identification, including the requirement to check anyone who appears to be under the age of 26 years. A licensee may have a house policy to check customers who appear to be older than 26 years; and

(C) Consequences for selling alcohol to a minor.

(d) Permanently post signs reminding patrons and employees of the legal requirements for selling alcohol. The signs must include:

(A) A list of valid types of identification which are accepted at the premises;

(B) A notice that anyone who appears to be under the age of 26 years must show valid identification. A licensee may post that their house policy is to check customers who appear to be older than 26 years.

(e) At a minimum, provide four employee trainings spaced at regular intervals within each 12-month period. The licensee must ensure that employees attend the trainings. The licensee must keep a record of each training which includes the date of the training, names of the employees who participated, and a summary of the training. The licensee must produce these training records for inspection by any Commission employee within five business days, excluding weekends and holidays. Examples of training include computer based training, video training, classroom instruction, and meetings. The training may be done individually or in a group. At a minimum, each training must cover the topics listed in Section (4) of this rule.

(f) Have no prior Category I or II violation within the last five years for the licensee personally.

(g) Have no aggravating circumstances surrounding a violation for failing to verify the age of a minor or selling alcohol to a minor. For purposes of this rule, aggravating circumstances do not include licensee’s personal involvement in the violation. Aggravating circumstances include, but are not limited to, an intentional sale to a minor; multiple employees or patrons involved in the violation; the violation results in death or personal injury; the sale was made to a person under age 18 who appeared to be under the age of 21 when the sale was made.

(4) Topics to be Covered in Responsible Vendor Training. All training required by this rule must include at a minimum the following topics:

(a) Guidelines for recognizing minors and visibly intoxicated persons;

(b) Legal forms of identification for purchasing alcohol;

(c) How to properly check identification, and how to recognize false or altered identification;

(d) The requirement that anyone who appears to be under the age of 26 years must show valid identification. If the licensee’s house policy requires that they check customers who appear to be older than 26 years, the licensee must include that information;

(e) Recommended approaches for refusing sales of alcohol to minors or visibly intoxicated persons;

(f) A review of the consequences for selling to minors, and the importance of not selling alcohol to minors or visibly intoxicated persons; and

(g) A review of house policies on alcohol sales. Each licensee must ensure that his/her employees receive training that covers the licensee’s own house policies.

(5) Maintenance of Responsible Vendor Status. To retain Responsible Vendor certification, a licensee must:

(a) Continue to meet all of the qualifying standards listed in Section (3) of this rule; and

(b) Require an Off-Premises Sales employee who sold alcohol to a minor or failed to properly verify identification to complete a clerk training course as required by OAR 845-009-0145, Clerk Training Courses; require an on-premises employee who sold alcohol to a minor or failed to properly verify identification to complete a training course that covers all the topics listed in Section (4) of this rule or a Commission-approved Alcohol Server Education course within 45 days of official Commission notification of the violation.

(6) Sanctions. If the licensee’s employee sells to a minor and the licensee is a certified Responsible Vendor who has all program standards in place, the Commission will not cancel the license of the licensee, or deny issuance of a license to the person who holds the retail license. The licensee will be eligible for reduced sanctions based on OAR 845-006-0500, Suspensions and Civil Penalties.

(7) Licensee Removal from Program and Reinstatement. The licensee is removed from the program in the following circumstances:

(a) For a sale to a minor or failure to properly verify identification by a licensee or employee, if the licensee did not have all of the Responsible Vendor standards, except for the posting requirements in subsection (3)(c) and (3)(d), in place at the time of the violation. The licensee may reapply for the program one year after the violation is ratified.

(b) For a sale to a minor or failure to properly verify identification by a licensee or employee, if aggravating circumstances (as referenced in subsection (3)(g)) are present. The licensee may reapply for the program in one year.

(c) For a second sale to a minor or failure to properly verify identification by a licensee personally within a two year period. The licensee may reapply for the program in one year.

(d) For a Category I or II violation by the licensee personally. The licensee may not reapply for the program. For a Category I or II violation by an employee, the licensee is removed from the program, but may reapply for the program in one year.

Stat. Auth.: ORS 471, including 471.030, 471.040 & 471.730(1) & (5)

Stats. Implemented: ORS 471.344

Hist.: OLCC 19-2000, f. 12-6-00, cert. ef. 1-1-01; OLCC 14-2002, f. 10-25-02 cert. ef. 11-1-02; OLCC 1-2005, f. 4-21-05, cert. ef. 5-1-05; OLCC 1-2005, f. 4-21-05, cert. ef. 5-1-05; OLCC 12-2011, f. 12-6-11, cert. ef. 1-1-12

 

Rule Caption: Amendment allowing more flexibility in advertising methods when filling retail sales agent vacancies.

Adm. Order No.: OLCC 13-2011

Filed with Sec. of State: 12-6-2011

Certified to be Effective: 1-1-12

Notice Publication Date: 10-1-2011

Rules Amended: 845-015-0120

Subject: This rule describes the Commission’s standard procedure for seeking applications from the public to fill a retail sales agent vacancy. Amendments have been made to section (2) of this rule regarding the methods used to advertise retail sales agent vacancies. Since the rule was last substantively amended (in 2003), advertising has evolved to reflect today’s technological advances. The language requiring advertisements to be placed in printed newspapers has been deleted, and replaced with language that allows for flexibility in advertising methods, including the now more commonly used types of online media.

Rules Coordinator: Jennifer Huntsman—(503) 872-5004

845-015-0120

Retail Sales Agent Selection Procedure

(1) When the Commission fills a retail sales agent vacancy other than as OAR 845-015-0125(2) describes, the Commission seeks applications from the public.

(2) When seeking applications from the public, the Commission advertises to fill a vacancy. The Commission may publish its intent to fill a vacancy via a variety of methods, i.e. internet postings, other online media, or newspapers.

(3) After an application deadline, all applications will be screened according to selection criteria in OAR 845-015-0125 and qualified applicants will be selected for interview. After reviewing applications and screening results, an interview committee conducts personal interviews. The interview committee scores the applicants and recommends finalists who are most qualified based on the selection criteria in 845-015-0125. From the finalists, the Commission appoints a retail sales agent using the criteria in 845-015-0125. A public presentation at a Commission meeting may be required. Advance notice of the public meeting date will be given to all finalists.

(4) An appointed retail sales agent must submit a retail liquor store improvement plan for approval, enter into a Retail Sales Agent Agreement, purchase fixtures and equipment at an established price or provide fixtures and equipment where none are available for purchase, and begin operation of a retail liquor store on the date the Commission specifies. If an appointed retail sales agent cannot purchase, rent or lease, and equip an approved location and begin operation by the required date, the Commission(ers) may select another applicant from the list of finalists.

Stat. Auth.: ORS 471, 471.030, 471.730(1) & (5)

Stats. Implemented: ORS 471.750(1)

Hist.: LCC 20-1986, f. 10-16-86, ef. 1-1-87; OLCC 2-2003, f. 1-27-03, cert. ef. 2-1-03, Renumbered from 845-015-0022; OLCC 10-2006, f. 7-19-06, cert. ef. 8-1-06, OLCC 13-2011, f. 12-6-11, cert. ef. 1-1-12

 

Rule Caption: Amendment implementing statutory changes removing mandatory minimum case for customer special orders of distilled spirits.

Adm. Order No.: OLCC 14-2011

Filed with Sec. of State: 12-6-2011

Certified to be Effective: 1-1-12

Notice Publication Date: 10-1-2011

Rules Amended: 845-015-0185

Subject: This rule describes the Commission’s procedures for special orders for distilled spirits by customers. Previously there was a one case minimum for such orders. Senate Bill (SB) 944 has passed and eliminates the one case minimum order requirement in some circumstances. SB 944 amends both ORS 471.175 governing distilled spirits purchases by Full On-Premises Sales licensees and ORS 471.750 governing purchases by any person through a retail liquor store. In both statutes, the amendments prohibit the Commission from requiring the purchase of more than one container if: a) the retail price is a minimum of $30 per container (adjusted annually based on CPI); b) the product is available through a U.S. distributor with only a minimum case order required; c) the product is not regularly stocked by the Commission; and d) is ordered in a 750 milliliter container if available. This rule was amended to bring it into statutory compliance effective January 1, 2012.

Rules Coordinator: Jennifer Huntsman—(503) 872-5004

845-015-0185

Special Orders for Distilled Spirits

Customers may order distilled spirits products or container sizes that the Commission does not carry in the regular product line. Minimum order quantities may apply. For special orders, the customer pays the wholesale cost, the average handling and freight costs per case and the regular markup. The Commission sets the average handling and freight costs from an annual review of these costs for special orders.

Stat. Auth.: ORS 471, including 471.030, 471.175, 471.730(1) & (5)

Stats. Implemented: ORS 471.175 & 471.750

Hist.: LCC 30-1986, f. 11-20-86, ef. 1-1-87; OLCC 21-1991, f. 12-19-91, cert. ef. 1-1-92; OLCC 5-1992, f. 4-30-92, cert. ef. 5-1-92; OLCC 2-2003, f. 1-27-03, cert. ef. 2-1-03, Renumbered from 845-015-0100; OLCC 14-2011, f. 12-6-11, cert. ef. 1-1-12

 

Rule Caption: Amend and adopt rules to update and modernize the distilled spirits retail store system.

Adm. Order No.: OLCC 15-2011

Filed with Sec. of State: 12-6-2011

Certified to be Effective: 1-1-12

Notice Publication Date: 10-1-2011

Rules Adopted: 845-015-0210

Rules Amended: 845-015-0101, 845-015-0190, 845-015-0196

Subject: Staff’s goal with this rule package is to enhance the distilled spirits retail system within the existing context of a control state structure. By updating and modernizing the system the Commission will enhance its ability to both keep up with customers’ growing expectations and provide enough incentive to attract & retain effective liquor store agents. This in turn will lead to optimal revenue generation for the state of Oregon. The amendments in this rule package provide the flexibility to update the current business model in two main areas: 1) Updating the retail liquor agents’ resignation buy-out program – the amendments to OAR 845-015-0190 Resignation Buy-Out Program for Retail Liquor Agents increase the standard buyout percentage to three percent and for those with a current outstanding Annual Evaluation, four percent. 2) Building in additional flexibility to accommodate future pilot programs – to meet this goal the Commission adopted OAR 845-015-0210 Pilot Programs which gives the Commission the flexibility to test new retail sales models through a pilot program of up to three years duration. Further amendments include OAR 845-015-0196 Appointment of a Temporary Agent, in order to expand the circumstances under which the Commission may appoint temporary agents beyond just when a current agent becomes unable to operate their liquor store, and housekeeping amendments to OAR 845-015-0101 Definitions.

Rules Coordinator: Jennifer Huntsman—(503) 872-5004

845-015-0101

Definitions

As used in OAR chapter 845, division 015:

(1) “Commission” includes the 5-member body of Commissioners appointed by the Governor, the administrator (director) and agency staff. Any of the actions or decisions specified in this division may be delegated to the administrator (director) as provided in ORS 471.040(2).

(2) “Disabled Retail Sales Agent” is one who has a physical or mental impairment that has continued more than one year or is permanent that prevents a retail sales agent from properly performing contractual duties. The Commission determines retail sales agent disability after reviewing medical reports from the retail sales agent’s physician. The Commission may require additional medical information from a Commission-selected physician.

(3) “Full On-Premises Sales Licensee” means any person or entity holding a Full On-Premises Sales license.

(4) “Retail Liquor Store” is a premises or a specific area in a premises the Commission approves for the sale of packaged distilled spirits for off-premises consumption, other than an Oregon licensed distillery or portion of such a distillery which has been approved for the sale of packaged distilled spirits manufactured by the distillery.

(5) “Retail Sales Agent” or “Agent” is an individual person appointed by the Commission who enters into a retail sales agent agreement to sell packaged distilled spirits on behalf of the Commission in a retail liquor store.

(6) “Retail Sales Agent Agreement” is a written contract between the Commission and a retail sales agent that specifies the terms, conditions, and obligations between both parties.

(7) “Temporary Retail Sales Agent” or “Temporary Agent” is an individual person selected by the Commission to temporarily operate a retail liquor store.

Stat. Auth.: ORS 471, 471.030, 471.730(1) & (5)

Stats. Implemented: ORS 471.750 & 471.752

Hist.: LCC 25-1980, f. 9-30-85, ef. 1-1-81; LCC 9-1985, f. 11-6-85, ef. 1-1-86; Renumbered from 845-015-0040; LCC 23-1986, f. 10-16-86, ef. 1-1-87; OLCC 2-2003, f. 1-27-03, cert. ef. 2-1-03, Renumbered from 845-015-0007; OLCC 10-2006, f. 7-19-06, cert. ef. 8-1-06; OLCC 15-2011, f. 12-6-11, cert. ef. 1-1-12

845-015-0190

Resignation Buy-Out Program for Retail Sales Agents

(1) Purpose. The purpose of the Resignation Buy-Out Program is to provide a monetary benefit to all retail sales agents when they resign. Retail sales agents receive the buy-out, in part, to recognize their contribution in building a successful business.

(2) Definitions.

(a) “Solicit,” “solicitation” and “soliciting” have the meaning given them under OAR 845-015-0145. These terms also include any act or contact directed at a specific business, Full On-Premises Sales licensee or other like entity for the purpose of asking, encouraging, suggesting, urging or persuading a specific business, Full On-Premises Sales licensee or other entity to purchase distilled spirits from a particular retail liquor store.

(b) “Full On-Premises Sales licensee” means any person or entity holding a Full On-Premises Sales license.

(c) “Commercial Accounts” means any business or association that purchases more than fifty 750 ml bottles of distilled spirits from the store in the twelve months immediately preceding turnover of the store to the incoming agent.

(d) “Domestic Partner” means an individual who, along with another individual of the same sex, has received a Certificate of Registered Domestic Partnership pursuant to the Oregon Family Fairness Act.

(3) Calculating the Buy-Out. The Resignation Buy-Out Program requires the incoming retail sales agent to pay the outgoing agent, or the agent’s estate, an amount of money (called the buy-out). Except as provided in section (4), the Commission calculates the buy-out by taking three percent of the stores average annual gross distilled spirits sales for the last five years. If a Retail Sales Agent’s most current Annual Evaluation is outstanding, they will be eligible for a four percent buy-out percentage. The Commission includes the buy-out amount as part of the financial requirement in the information sheet that all applicants receive.

(4) Recruiting Qualified Applicants. The outgoing agent may supplement the Commission’s recruiting process to assure finding qualified applicants. If the Commission’s recruiting process does not generate a qualified applicant the outgoing agent will choose to postpone the resignation or to accept a lower buy-out amount. If the agent chooses to accept a lower buy-out, then the outgoing agent and the Commission will agree on a reasonable buy-out amount reduction. The Commission will then re-advertise the store vacancy with the reduced buy-out amount.

(5) Paying the Buy-Out. An incoming agent must pay a buy-out if the effective date of the incoming agent’s appointment occurs when the program is in effect. The incoming agent provides payment to the outgoing agent once the Commission has estimated any debt reimbursements to the Commission or the State of Oregon. As a condition of eligibility for the buy-out, the outgoing agent must allow the incoming agent to spend a minimum of 12 working days at the store working productively together before the store takeover, unless the incoming agent declines the opportunity in writing. During the 12-day period, the outgoing agent will introduce the incoming agent to Full On-Premises Sales licensees and commercial accounts, and orient the incoming agent to all aspects of the store operation except the required training and information provided by Commission staff. The Commission may waive the buy-out requirement at the written request of the outgoing agent.

(6) Family Transfer of Retail Liquor Store When Agent Dies or is Disabled. If an agent dies or becomes unable to operate a retail liquor store due to the agent’s disability, ORS 471.752(2) allows the Commission to give preference to a qualified surviving spouse, Domestic Partner, or child, or a qualified spouse, Domestic Partner, or child of the disabled agent, in the appointment of a successor agent. If the Commission does appoint a spouse, Domestic Partner, or child in this situation, the Commission may waive the buy-out requirement at the request of the outgoing agent or the agent’s estate after the Commission has estimated any debt reimbursements to the Commission or the State of Oregon.

(7) Probationary Agents. Except as provided in section (9), an agent who resigns during their probationary period is eligible for a buy-out.

(8) Relocating, Adding, or Closing Stores. The Commission reserves the right to relocate any store, and to add or close stores. Neither the State of Oregon nor the Commission is liable for any changes in the volume of distilled spirits sales that may occur following the relocation of one or more stores, or from the addition or closure of one or more stores.

(9) Exceptions. Despite sections (1) and (3), a retail sales agent is not eligible for a buy-out if:

(a) The Commission has terminated the agent for cause relating to fiscal irresponsibility, a history of high shortages exists, or the final estimated audit shortage exceeds the estimated amount of compensation due that agent. In these situations, the incoming agent will be instructed to hold payment until the Commission calculates any dollars owed the Commission or the State of Oregon. At that time the Commission will instruct the incoming agent as to the disbursal of the buy-out fund to the outgoing agent and the Commission. Any amount sent to the Commission in excess of the amount due to the Commission or the State of Oregon will be returned to the outgoing agent upon final financial settlement;

(b) The agent is under suspension;

(c) The agent is a temporary retail sales agent;

(d) The Commission takes over a store for reasons other than suspension or termination. In this situation, the outgoing agent is not eligible for a buy-out until the agent resigns and a permanent incoming agent is appointed and takes over the store; or

(e) The store does not turn over during the time the program is in effect; turnover occurs on the date the Commission conducts the final audit of the permanent outgoing agent.

(10) Non-Compete Provision. If an outgoing agent participates in the buy-out program, the outgoing agent shall not solicit any Full On-Premises Sales licensee or commercial account (customers) of the retail liquor store the outgoing agent is leaving (store) for the purpose of selling or attempting to sell distilled spirits to such customers. The outgoing agent is also prohibited from using a customer list or any other information about the stores customers to assist any agent (other than the incoming agent) in soliciting the stores customers for the purpose of selling distilled spirits. The outgoing agent recognizes that she/he receives consideration for compliance with this section. The prohibitions in this section:

(a) Are limited to a two-year period. The Commission calculates the two-year prohibition beginning on the date the store is turned over to the incoming agent;

(b) Relate only to Full On-Premises Sales licensees and commercial accounts that have made a purchase from the store within the twelve months immediately preceding turnover of the store to the incoming agent;

(c) Apply only within:

(A) A geographic radius of ten miles from the location of the store if the store is located in a metropolitan or suburban area;

(B) A geographic radius of twenty-five miles from the location of the store for all other areas of the state;

(d) Do not prohibit an agent’s ability to advertise under OAR 845-015-0130.

(11) Violation of Section (10). If, during the two-year period:

(a) An outgoing agent violates section (10) of this rule, the incoming agent may take legal action against the outgoing agent;

(b) An outgoing agent violates section (10) of this rule, the Commission may take legal action against the outgoing agent;

(c) The Commission terminates the Resignation Buy-Out Program, the non-compete provisions in section (10) remain in effect.

(12) No Contract Rights in Buy-Out. No agent shall have any entitlement to, or expectation of receiving, any buy-out. The institution and continuation or termination of the buy-out program constitutes unilateral regulatory action by the Commission, and gives no agent any contractual right or expectation in any buy-out payment. The Commission reserves the right to repeal or modify this rule, or otherwise terminate the buy-out program at any time.

Stat. Auth.: ORS 471, including 471.030, 471.040, 471.730(1) (5)

Stats. Implemented: ORS 471.750 & 471.752(2)

Hist.: OLCC 14-1996, f. 10-1-96, cert. ef. 1-1-97; OLCC 8-1998(Temp), f. & cert. ef. 9-18-98 thru 3-16-99; OLCC 4-1999, f. 2-16-99, cert. ef. 3-17-99; OLCC 19-2000, f. 12-6-00, cert. ef. 1-1-01; OLCC 2-2003, f. 1-27-03, cert. ef. 2-1-03, Renumbered from 845-015-0032; OLCC 9-2008, f. 6-12-08, cert. ef. 7-1-08; OLCC 15-2011, f. 12-6-11, cert. ef. 1-1-12

845-015-0196

Appointment of a Temporary Sales Agent

(1) The Commission may appoint a temporary agent or operate a store temporarily with Commission staff when the Commission determines a retail sales agent is unable to operate a retail liquor store, is suspended, or a retail sales agent agreement is proposed for termination. In these circumstances the Commission considers any candidate for temporary agent nominated by a retail sales agent but may choose someone else. A temporary agent or Commission staff operates a retail liquor store until the Commission determines the current retail sales agent can resume store duties or until a new retail sales agent is appointed and can assume retail liquor store operations.

(2) The Commission may also appoint a temporary agent or may operate a store temporarily with Commission staff when a new store has been established and the retail sales agent has not yet been selected or has been selected but is unable to begin operating the store, or in other similar circumstances where the Commission finds it necessary to do so.

(3) All of the rules that apply to a retail sales agent apply to a temporary agent except OAR 845-015-0110, 845-015-0120 and 845-015-0125.

Stat. Auth.: ORS 471, 471.030, 471.730(1) & (5)

Stats. Implemented: ORS 471.750(1)

Hist.: LCC 15-1978, f. 11-30-78, ef. 12-1-78; Renumbered from 845-010-0347; LCC 16-1986, f. 10-16-86, ef. 1-1-87; OLCC 2-2003, f. 1-27-03, cert. ef. 2-1-03, Renumbered from 845-015-0030; OLCC 15-2011, f. 12-6-11, cert. ef. 1-1-12

845-015-0210

Pilot Programs

(1) The Commission may establish pilot programs of up to three years duration in order to test new marketing concepts or retail sales models or to respond to fluctuations in customer demand for distilled spirits products. As part of a pilot program the Commission may establish pilot liquor stores and may appoint retail sales agents to operate the pilot liquor stores.

(2) All statutes and administrative rules governing retail liquor agents will apply to such pilot programs, with the following exceptions:

(a) OAR 845-015-0110 Establishment of a Retail Liquor Store;

(b) OAR 845-015-0120 Retail Sales Agent Selection Procedure;

(c) OAR 845-015-0135 Public Opinion on Retail Liquor Store Location;

(d) OAR 845-015-0140 Hours and Days of Operation;

(e) OAR 845-015-0190 Resignation Buy-Out Program for Retail Liquor Agents;

(f) OAR 845-015-0193(1) & (2) Terminating an Agency Agreement.

(3) The Retail Operations Manual, including any Pilot Program Appendix, and other relevant Commission policies will apply to the pilot program, unless otherwise provided in the Pilot Program Agreement.

(4) Measuring Success of a Pilot Program. Factors the Commission will consider in measuring the success of a pilot program include but are not limited to:

(a) Economic viability of the pilot program’s retail sales model, for both retail sales agents and the Commission;

(b) Public safety impacts;

(c) Public response to the pilot program, including customer satisfaction and convenience.

Stat. Auth.: ORS 471, 471.030, 471.730(1) & (5)

Stats. Implemented: ORS 471.750(1)

Hist.: OLCC 15-2011, f. 12-6-11, cert. ef. 1-1-12

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2011.

2.) Copyright 2012 Oregon Secretary of State: Terms and Conditions of Use

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