Oregon Liquor Control Commission, Chapter 845
Rule Caption: Implement statutory change allowing any state’s law violations to be used as license refusal basis.
Adm. Order No.: OLCC 8-2012
Filed with Sec. of State: 10-30-2012
Certified to be Effective: 11-1-12
Notice Publication Date: 8-1-2012
Rules Amended: 845-005-0325
Subject: This rule describes the Commission’s reasons related to the applicant’s qualifications for which the Commission will deny a license unless the applicant shows good cause to overcome the criteria. The 2011 legislature passed Senate Bill (SB) 36, effective January 1, 2012. SB 36 amended ORS 471.313 with regards to law violations as a license refusal basis. The statute still requires a conviction and all law violations must be related to the fitness and ability of the applicant to lawfully carry out activities under the license in order to be used as a refusal basis. The statutory amendment expanded the laws in question to those of any state, not just Oregon laws. OAR 845-005-0325 (5) has been amended to harmonize the rule language with the statutory language now in effect.
Rules Coordinator: Jennifer Huntsman—(503) 872-5004
License Refusal Reasons: Applicant Qualifications
If any of the following criteria apply, the Commission will deny a license unless the applicant shows good cause that overcomes the criterion involved:
(1) The applicant has inadequate financial resources to build or operate the licensed premises as proposed, or has inadequate financial resources to meet the financial obligations of the licensed business. This section does not apply to license renewal applications.
(2) The applicant has not built the licensed premises, or has not operated the licensed business, substantially as proposed by the applicant and previously approved by the Commission.
(3) The applicant can not or will not provide an employee who can communicate effectively with customers and Commission regulatory employees. This person must be on the licensed premises during the licensees business hours. Communicate effectively means:
(a) Knowing how to lawfully sell and serve alcoholic beverages and communicating this to customers;
(b) Understanding Commission regulatory employees when the employees explain lawful sale and service of alcoholic beverages and responding in a way the employee understands.
(4) Alcohol or Controlled Substance History or Record:
(a) The applicant has a recent history or record of using alcohol or controlled substances to excess. Some of the types of records the Commission uses to establish a record of using to excess include court, Motor Vehicles Division, police, or medical records;
(b) Good cause to overcome this criterion is a showing by the applicant that the applicant no longer uses alcohol or controlled substances to excess and is not likely to do so in the future. Some of the factors the Commission considers in determining good cause are: successful participation in treatment program(s), counselor, employer or probation officer recommendations, severity of the applicants record, passage of time since last relevant incident and previous record of compliance.
(5) The applicant has been convicted of violating any of the laws, general or local, of this state or another state if the conviction is substantially related to the fitness and ability of the applicant to lawfully carry out activities under the license. The Commission considers any intervening circumstances since the commission of the law violation in determining whether the applicant is an acceptable future compliance risk.
(6) The applicant provides material false or misleading information to the Commission.
(7) The applicant is not at least 21 years old. Good cause to overcome this criterion includes a showing by the applicant that the minor applicant will not participate in the management or control of alcohol-related business decisions or of employees involved in alcoholic beverage sale or service.
Stat. Auth.: ORS
471, 471.030, 471.040, 471.730(1) & (5)
Stats. Implemented: ORS 471.313
Hist.: OLCC 19-2000, f. 12-6-00, cert. ef. 1-1-01; OLCC 8-2012, f. 10-30-12, cert. ef. 11-1-12
Rule Caption: Implement statutory change allowing nonprofits to auction or raffle alcohol once per year without license.
Adm. Order No.: OLCC 9-2012
Filed with Sec. of State: 10-30-2012
Certified to be Effective: 11-1-12
Notice Publication Date: 8-1-2012
Rules Amended: 845-005-0440
Subject: This rule describes the required qualifications and privileges associated with the Commission’s issuance of a Temporary Sales License (TSL). The 2012 legislature passed House Bill (HB) 4047, effective March 5, 2012. HB 4047 amended ORS 471.162 to expand a nonprofit or charitable organization’s ability to conduct certain activities without a license. They can now conduct raffles as well as auctions once a year without a license and the alcohol product can now be distilled spirits as well as malt beverages or wine. For this reason, the previous section (6) regarding just raffles has been deleted. More details about what is allowed with regard to auctions and raffles will be explained in our licensing materials. A few minor housekeeping amendments were also made while this rule matter was open.
Rules Coordinator: Jennifer Huntsman—(503) 872-5004
Temporary Sales Licenses
(1) A person must obtain from the Commission a license or authority to sell alcoholic beverages. ORS 471.405 establishes a prohibition on sale of alcoholic beverages without a license or authority. ORS 471.406 defines sale of alcoholic beverages. This rule sets the requirements for obtaining a Temporary Sales License.
(2) Definitions. For this rule:
(a) “License day” means from 7:00 am until 2:30 am on the succeeding calendar day. The license fee is $50 per license day or for any part of a license day.
(b) “Nonprofit trade association” means an organization comprised of individual or business members where the organization represents the interests of the members and is registered with the state of Oregon as a nonprofit association.
(c) “Serious violation history” means:
(A) Two or more category III or IIIa administrative violations of any type, or category IV violations involving minors. However, if the circumstances of a violation include aggravation, one violation may be sufficient; or
(B) One category I, II or IIa administrative violation; or
(C) Two or more crimes or offenses involving liquor laws.
(d) “Bar” means a counter at which the preparation, pouring, serving, sale, or consumption of alcoholic beverages is the primary activity.
(e) “Food counter” means a counter in an area in which minors are allowed and at which the primary activity at all times is the preparation, serving, sale, or consumption of food.
(f) “Video lottery game” means a video lottery game terminal authorized by the Oregon State Lottery. Examples include but are not limited to video poker and video slots. Keno monitors are not considered a video lottery game.
(g) “Social game” means a game other than a lottery, if authorized by a local county or city ordinance pursuant to ORS 167.121, between players in a private business, private club, or place of public accommodation where no house player, house bank, or house odds exist and there is no house income from the operation of the social game.
(3) ORS 471.190 authorizes the Commission to issue a Temporary Sales License. Temporary Sales Licenses are issued in increments of one license day. The Commission will not approve more than seven license days on a single application. The Commission may limit approval of any application to a single license day or to any number of license days fewer than seven days. The Commission may issue a Temporary Sales License only to applicants that qualify under the Commission’s licensing standards and that are:
(a) A nonprofit or charitable organization that is registered with the state, including nonprofit trade associations where at least 51% of the total membership is comprised of persons that hold winery licenses issued under ORS 471.223 or grower sales privilege licenses issued under 471.227; or
(b) A political committee that has a current statement of organization filed under ORS 260.039 or 260.042; or
(c) An agency of the State; or
(d) A local government or an agency or department of a local government; or
(e) Any applicant not described in (3)(a)–(3)(d) of this subsection, including licensees of the Commission.
(4) A Temporary Sales License may authorize the licensee to sell wine, malt beverages and cider at retail for consumption on the licensed premises and for consumption off the licensed premises. All wine, malt beverages and cider sold for consumption off the licensed premises must be in a manufacturer-sealed container that does not hold more than two and one-quarter gallons.
(5) A Temporary Sales License may authorize the licensee to sell distilled liquor by the drink at retail for consumption on the licensed premises.
(6) Applicants must apply in writing for a Temporary Sales License, using the application form provided by the Commission. The Commission may require additional forms, documents, or information as part of the application. The Commission may refuse to process any application not complete, not accompanied by the documents or disclosures required by the form or the Commission, or that does not allow the Commission sufficient time to investigate it. Sufficient time is typically one to three weeks prior to the event date. The Commission may 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 183.310 to 183.550.
(7) The application for a Temporary Sales License under this rule shall include:
(a) A written, dated, and signed plan. An application is not complete if this plan is not approved by the Commission. To approve a plan, the Commission must determine that the plan adequately manages:
(A) The event to prevent problems and violations;
(B) Patronage by minors as set out in subsection (8) of this rule; and
(C) Alcohol consumption by adults.
(b) Identification of the individuals to be employed by the licensee to manage events on the licensed premises;
(c) Identification of the premises proposed to be licensed;
(d) Menu and proposal showing compliance with the food service standards of OAR 845-006-0465;
(e) Statement of the type of event to be licensed, type and extent of entertainment to be offered, expected patronage overall and by minors, type of food service to be offered, proposed hours of food service, and proposed hours of operation;
(f) The recommendation in writing of the local governing body where the licensed premises will be located;
(g) License fees as established by ORS 471.311.
(8) A plan for managing patronage by minors under subsection (7)(a) of this rule must meet the following requirements:
(a) If the Temporary Sales License will be on any part of a premises, room, or area with a permanent license issued by the Commission, the Commission must be convinced that the plan will follow the minor posting and control plan, including any temporary relaxation of the minor posting, assigned to that premises, room, or area under the permanent license. The Commission must also be convinced that the plan will prevent minors from gaining access to alcoholic beverages and any portion of the licensed premises prohibited to minors.
(b) If the Temporary Sales License will not be on any part of a premises, room, or area with a permanent license issued by the Commission, the Commission must be convinced that the plan will prevent minors from gaining access to alcoholic beverages and any portion of the licensed premises the Commission prohibits to minors.
(9) Minors are prohibited from the licensed premises or portions of the licensed premises as follows;
(a) Minors may not sit or stand at a bar; however, minors may sit or stand at a food counter;
(b) Minors may not be in an area where there is video lottery games, social games, or nude entertainment or where such activities are visible.
(c) Minors may not be in an area where the licensee’s approved written plan designates that minors will be excluded.
(10) Minimum Age of Servers. Alcohol servers at temporary sales licensed locations must be at least 21 years of age to sell or serve alcoholic beverages, with the following exceptions:
(a) In areas of the licensed premises not prohibited to minors, persons who are 18, 19, and 20 years of age may:
(A) Take orders for, serve and sell alcoholic beverages for on-premises consumption if the activity is incidental to the selling or serving of food in that area of the licensed premises, and may sell alcoholic beverages in manufacturer-sealed containers for off-premises consumption; or
(B) Sell tokens/script, including verifying age, to be redeemed for alcoholic beverages or food at the event.
(b) In areas of the licensed premises prohibited to minors, persons who are 18, 19, and 20 years of age may deliver food, restock non-alcohol supplies and perform other non-alcohol related duties, however the person shall not remain in the prohibited area longer than is necessary to perform these duties.
(11) Alcohol servers at locations licensed under subsections (3)(b)–(e) of this rule must hold valid service permits unless specifically exempted under authority of subsection (12) of this rule.
(12) The Commission may waive the service permit requirement for the holder of a Temporary Sales License issued under subsections (3)(b)–(e) of this rule, and the licensee’s alcohol servers, if:
(a) The license is used only for package sales; or if
(b) The Commission concludes alcohol service by individuals who do not hold a service permit does not pose a significant risk for public safety problems or non-compliance with liquor laws; and
(c) Each alcoholic beverage point-of-sale at the licensed location is staffed, at all times alcoholic beverages are being sold or served, by an individual who has completed a Server Education course successfully within 5 years prior to the date of the event.
(13) At events licensed under subsection (3)(a) of this rule, before allowing alcohol servers to sell or serve alcoholic beverages, the licensee must ensure that all alcohol servers have met one of the following standards:
(a) The alcohol server has a valid service permit or has successfully completed a Server Education course within 5 years prior to the date of the event, or
(b) The alcohol server has attended training provided by the licensee, and has read, signed and dated the Commission-provided brochure, What Every Volunteer Alcohol Server Needs to Know. The licensee-provided training must address the topics included in the brochure, including but not limited to: minors and proper checking of identification, and how to recognize and respond appropriately to visibly intoxicated persons. At any time while on duty, the alcohol server shall make the signed brochure available for immediate inspection by any inspector or investigator employed by the Commission or by any other peace officer.
(14) If there are compliance problems with an operator or an event, the Commission may add other requirements for the education of servers at events licensed under this rule.
(15) The Commission may deny, cancel or restrict a Temporary Sales License for any reason for which the Commission may deny, cancel or restrict a regular license.
(16) The Commission may deny or restrict a Temporary Sales License if the applicant has a serious violation history at events previously licensed with a Temporary Sales License within the past 36 months.
(17) The Commission shall limit the issuance of Temporary Sales Licenses to the same applicant at the same location to no more than 31 license days from January 1 to December 31 of each year, unless the Commission determines that the applicant would be eligible for an annual license based on the applicant’s personal qualifications and the total number of license days at the same location does not exceed 60 in that calendar year.
(18) The Commission may refund the Temporary Sales License fee if the application is withdrawn by the applicant or denied by the Commission, if the event does not take place because of circumstances beyond the applicant’s control, or if the Commission determines the applicant does not need a license for the event proposed in the application.
(19) When the Commission approves a written plan under subsection (7)(a) of this rule, the licensee must follow that written plan. Failure to follow that written plan is a category III violation.
(20) If the licensee fails to prevent minors from gaining access to alcoholic beverages or fails to prevent minors from gaining access to any portion of the licensed premises prohibited to minors, the Commission may immediately prohibit minors from the licensed premises or portion(s) of the premises.
Stat. Auth.: ORS
471, 471.030, 471.040, 471.190 & 471.730(1) & (5)
Stats. Implemented: ORS 471.190, 471.360 & 471.482
Hist.: OLCC 19-2000, f. 12-6-00, cert. ef. 1-1-01; OLCC 4-2001(Temp), f. & cert. ef. 8-15-01 thru 2-11-02; OLCC 13-2001, f. 12-18-01, cert. ef. 2-12-02; OLCC 14-2002, f. 10-25-02 cert. ef. 11-1-02; OLCC 24-2007, f. 12-17-07, cert. ef. 1-1-08; OLCC 17-2010, f. 12-22-10, cert. ef. 1-1-11; OLCC 9-2012, f. 10-30-12, cert. ef. 11-1-12
Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • firstname.lastname@example.org
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