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OREGON LIQUOR CONTROL COMMISSION

 

DIVISION 4

GENERAL

845-004-0001

Prohibited Interests in the Alcoholic Beverage Industry

(1) Definitions. For this rule:

(a) "Business connections" include, but are not limited to, the following behaviors and relationships:

(A) Knowingly providing anything of value to a manufacturer or a business licensed by the Commission in return for something of value except for the exchange of commodities or services that are routinely provided to the general public under the same terms, and

(B) Partnerships with a manufacturer or licensee and similar ventures formed for the purpose of making a profit.

(b) "Business licensed by the Commission" means a business or any part of a business that requires an alcoholic beverage license to operate. A person is "employed by a business licensed by the Commission" if:

(A) The person's job duties include involvement with any portion of the business that requires an alcoholic beverage license to operate, or

(B) The person exercises management control over any portion of the business that requires an alcoholic beverage license to operate.

(c) “Close association” means a relationship that does or could be reasonably perceived to influence commissioner or employee decisions.

(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.

(e) "Employed by the Commission" means any permanent, temporary or limited duration Commission employee.

(f) "Financial Interest" means knowingly holding an ownership interest as a sole proprietor, partner, limited partner or stockholder, in any business that is licensed by the Commission or manufactures alcoholic beverages sold in Oregon. This definition excludes any investment that the investor does not control in nature, amount or timing.

(g) "Household member" means all persons living as a family unit in the same dwelling as the commissioner or Commission employee.

(h) "Immediate family" means the spouse or Domestic Partner, and juvenile dependent children of the commissioner or Commission employee.

(i) “Knowledge” and "knowingly" mean that the person had actual knowledge of or reasonably should have known of the fact in question.

(j) "Position to take action or make decisions that could affect the licensed business" means that the employee's job duties include the discretion to take actions or make decisions that are reasonably likely to create more than a trivial cost or benefit for a licensed business in money, time or anything else of value. However, an employee is not in a “position to take action or make decisions that could affect the licensed business" under ORS 471.710(2)(c) or (d) if the Commission removes the employee from actions and decisions affecting the licensed business. The Commission will do so where the removal would not unreasonably effect the employee's ability to perform his or her job duties.

(2) Prohibitions.

(a) The prohibitions in this section do not apply to the commissioner appointed as the food and alcoholic beverage retail industry representative under ORS 471.705(1).

(b) Financial Interests. No commissioner, employee, household member or family member may hold a financial interest described in this rule.

(c) Employment. No commissioner, employee, household member or family member may be employed by a business licensed by the Commission unless the commissioner or employee is not in a position to take action or make decisions that could affect the licensed business.

(d) Business Connections. No commissioner, employee, household member or family member may have a business connection described in this rule unless the commissioner or employee is not in a position to take action or make decisions that could affect the licensed business.

(3) Reporting Requirements.

(a) The reporting requirements in this section do not apply to the commissioner appointed as the food and alcoholic beverage retail industry representative under ORS 471.705(1).

(b) Close Association. A commissioner or employee who has a close association with an alcoholic beverage licensee must:

(A) Inform the Commission of the association as soon as the commissioner or employee has knowledge of the association, and

(B) Refrain from participating in any decision that directly affects the licensee.

(c) An applicant for a Commission job must disclose all financial interests, current employment relationships and business connections that the applicant, or any person in the applicant's household or immediate family, has with the alcoholic beverage industry of which the applicant has knowledge. If the Commission determines that a prohibited financial interest, employment relationship or business connection exists, the applicant must divest the financial interest, employment relationship or business connection before he or she may be hired.

(d) A Commission employee must report all financial interests, current employment relationships and business connections that the employee, or any person in the employee’s household or immediate family, has with the alcoholic beverage industry to his or her supervisor as soon as the employee has knowledge of it. If the financial interest, employment relationship or business connection is prohibited, the Commission will set a reasonable time period for divestiture. If divestiture does not occur within the given time period, the Commission will terminate the employee's employment.

(4) Disciplinary Action. The Commission will appropriately discipline any employee who:

(a) Fails to report a prohibited financial interest, employment relationship or business connection as required under this rule, or

(b) Knowingly acquires or establishes a financial interest, employment relationship or business connection prohibited under this rule.

Stat. Auth.: ORS 471 including 471.030, 471.730(1) & (5)
Stats. Implemented: ORS 471.710
Hist.: OLCC 4-1988, f. & cert. ef. 7-1-88; OLCC 15-1989, f. 10-31-89, cert. ef. 11-1-89; OLCC 9-2008, f. 6-12-08, cert. ef. 7-1-08; OLCC 12-2013, f. 11-26-13, cert. ef. 1-1-14

845-004-0005

Gifts, Gratuities

(1) Purpose: The Commission expects employees and retail sales agents to do their jobs fairly and impartially and to avoid conduct that compromises or appears to compromise that fairness and impartiality. It is not the intent of this rule to prohibit Commissioners, retail sales agents or Commission employees from interacting with licensees and distillery representatives on the same basis as a customer or the general public.

(2) No Commissioner, employee or retail sales agent will accept any gift, gratuity or thing of value from any alcoholic beverage licensee, or any person representing a distillery which the licensee/representative does not also offer on an equal basis to his/her customers or the general public.

(3) No alcoholic beverage licensee or person representing a distillery will offer or give any gift, gratuity or thing of value to a Commissioner, employee or retail sales agent which the licensee/representative does not also offer on an equal basis to his/her customers or the general public.

(4) Despite sections (2) and (3) of this rule a Commissioner, employee or retail sales agent may accept:

(a) Food and beverages provided for immediate consumption at a convention or a business conference or business meeting that are offered to all participants irrespective of any connection to the Commission;

(b) A non-alcoholic beverage for immediate consumption that a licensee offers at a business meeting;

(c) Items offered to all participants at a convention irrespective of any connection to the Commission.

(5) Despite sections (2) and (3) of this rule, a Commissioner may accept:

(a) Food, beverages, lodging and travel when the Commissioner is participating in an event related to his/her official duties and when appearing in an official capacity, subject to the reporting requirements of ORS 244.060(6);

(b) Food or beverage that the Commissioner consumes in the presence of the purchaser or provider.

Stat. Auth.: ORS 471, including ORS 471.030, ORS 471.730(1) & (5)
Stats. Implemented: ORS 471.710(5)
Hist.: LCC 26, f. 5-12-60; LCC 27, f. 9-15-60; LCC 28, f. 12-19-60; LCC 29, f. 5-21-64; LCC 34, f. 1-23-70, ef. 2-26-70; LCC 17-1979, f. 9-24-79, ef. 10-1-79; LCC 13-1980(Temp), f. & ef. 4-25-80; LCC 24-1980, f. 9-30-80, ef. 10-1-80; Renumbered from 845-010-0155(9); LCC 3-1981, f. & ef. 9-18-81; LCC 6-1982, f. 7-30-82, ef. 8-1-82; OLCC 7-1989, f. 7-28-89, cert. ef. 8-1-89; OLCC 1-2003, f. 1-27-03, cert. ef. 2-1-03; OLCC 17-2003, f. 10-27-03, cert. ef. 12-1-03

845-004-0015

Signing of Orders

Unless the Commissioners specifically give other directions, the Administrator may sign, on the Commissioners' behalf, the written expression of any official action the Commissioners take at any public meeting. The Administrator's signature has the same force and effect as the signature of all the Commissioners.

Stat. Auth.: ORS 471 & ORS 472, including ORS 471.030, ORS 471.730(1), ORS 471.730(5), ORS 472.030, ORS 472.060(1) & ORS 472.060(2)(d)
Stats. Implemented: ORS 471.720
Hist.: LCC 12-1980, f. 3-28-80, ef. 4-1-80; Renumbered from 845-010-0375; OLCC 14-1991, f. 9-30-91, cert. ef. 1-1-92

845-004-0020

Public Records and Miscellaneous Fees

(1) Public Records Requests. The Commission charges the fees described in sections (2) through (7) of this rule for retrieving, copying and making records available in response to public records requests. Public records requests must be in writing.

(2) Reimbursement of Commission staff time. An hourly rate of $25.00 will be assessed for any Commission staff time greater than 15 minutes spent locating records, reviewing records to delete exempt material, supervising the inspection of records, copying records, reproducing records onto a disk or other electronic format, certifying records, and mailing records. This charge is in addition to the charges for the copies of the documents. The Commission may charge for the cost of searching for records regardless of whether the Commission was able to locate the requested record.

(3) Hard copy Records. The fee schedule listed below is reasonably calculated to reimburse the Commission for the actual costs of providing hard copies of records.

(a) Hard copy (black and white, letter size): $0.25 per page. Costs for other sized or color copies will be the Commission’s actual cost.

(b) Fax charges: $0.50 (per page up to a maximum of 20 pages). If the fax is over 20 pages the Commission will provide the records in another appropriate format or manner such as a disk or hard copies.

(c) Archive Retrieval: actual cost.

(d) Whenever feasible the Commission will provide double-sided copies of a record request. Each side of a double-sided copy will constitute one page.

(4) Electronic Records.

(a) Copies of requested electronic records may be provided in the format or manner maintained by the Commission. Some records maintained by the Commission are in hard copy format only and therefore not all records are available in electronic form. The Commission will perform all downloading, reproducing, formatting and manipulating of records. Records that are placed on a CD-ROM disk, including recorded proceedings, will incur a fee of $5.00 per disk. The Commission does not provide transcription service. In order to protect the integrity of the Commission’s records, the records requestor may not provide the disk or any other medium for the electronic records storage. The reimbursement of staff time to provide records in electronic form will be charged in accordance with section (2) of this rule.

(b) Records that are sent via electronic mail will not be charged a fee for transmission up to a file size of 10 MB. If the file size is over 10 MB the Commission will provide the records in another appropriate format or manner such as a disk or hard copies.

(5) Certification of Copies of Records. Certification of both hard and electronic copies of records may be provided upon request. The Commission will only certify that on the date copied the copy was a true and correct copy of the original record. The Commission cannot certify as to any subsequent changes or manipulation of the record.

(6) Reasonable costs associated with responding to a request to review or copy a record not specifically addressed by this rule may be assessed, including but not limited to the actual costs for the Commission to have a person make copies of the records.

(7) The Commission may not include in a fee charged under sections (2) through (6) of this rule the cost of time spent by an attorney for the public body in determining the application of the provisions of ORS 192.410 to 192.505.

(8) Collection of Fees.

(a) Method. Payment may be made in the form of cash, check, or money order. Make checks payable to “Oregon Liquor Control Commission”. Payments may be made in person at: OLCC, 9079 SE McLoughlin Blvd., Portland, Oregon 97222-7355. Payments may also be mailed to: OLCC, PO Box 22297, Milwaukie, Oregon 97269-2297.

(b) Receipts. A receipt may be given, upon request, for charges incurred.

(c) Prepayment and Notification of Copy Costs.

(A) If a fee charged under sections (2) through (6) of this rule is estimated to be greater than $25.00, the Commission must provide the requestor with a written notification of the estimated amount of the fee. The Commission shall not process the public records request until it receives confirmation from the requestor that the requestor wants the Commission to proceed with making the public record available.

(B) Depending on the volume of the records requested, the difficulty in determining whether any of the records are exempt from disclosure, and the necessity of consulting legal counsel, the Commission may preliminarily estimate the charges for responding to a record request and require prepayment of the estimated charges. If the actual charges are less than the prepayment, any overpayment will be refunded to the requestor.

(d) Waiver of Fees.

(A) Ordinarily there will be no waiver of fees.

(B) The Commission will not charge a fee if a record can be provided at nominal expense. Nominal expense means costing less than $5.00, including the labor required to fulfill the request.

(C) The Commission may furnish copies without charge or at a substantially reduced fee if the Commission determines that the waiver or reduction of fees is in the public interest because making the record available primarily benefits the general public. Examples include when the material requested is currently being distributed as part of the public participation process such as a news release or public notice, or the material requested has been distributed through mass mailing and is readily available to the Commission at the time of the request.

(D) The Commission considers the following factors in determining whether to waive or reduce fees pursuant to subsection (8)(d)(C) of this rule:

(i) Any financial hardship on the Commission;

(ii) The extent of time, expense and interference with the Commission’s regular business;

(iii) The volume of the records requested; or

(iv) The necessity to segregate exempt from non-exempt materials.

(9) Miscellaneous Distilled Spirits Fees:

(a) Representatives of distilled spirits' suppliers may purchase monthly reports of sales and inventory by code number (brand) by retail outlet. The fee is $20.00 for preparation of the report, plus $2.00 for each code included in the report. The Commission will bill representatives monthly, with payment due within 30 days.

(b) The Commission will charge the supplier or carrier, according to the responsibility for damage, a fee for recouping merchandise. The Commission sets this fee based on an annual review of the Commission's labor and materials cost.

(c) The Commission's charge on special accounts that do not pay normal markup on liquor purchases is the landed cost plus a 5% handling fee per case. The handling fee for split cases will be 15% of the landed cost of each bottle ordered.

Stat. Auth.: ORS 471, including 471.030, 471.730(1) & (5)
Stats. Implemented: ORS 192.440
Hist.: LCC 11-1980, f. 3-3-80, ef. 4-1-80; Renumbered from 845-0010-355; LCC 30-1980, f. 12-22-80, ef. 1-1-81; LCC 30-1986, f. 11-20-86, ef. 1-1-87; OLCC 3-1990, f. 3-16-90, cert. ef. 4-1-90; OLCC 16-1991, f. 10-31-91, cert. ef. 1-1-91; OLCC 19-2000, f. 12-6-00, cert. ef. 1-1-01; OLCC 5-2001, f. 8-15-01, cert. ef. 9-1-01; OLCC 1-2005, f. 4-21-05, cert. ef. 5-1-05; OLCC 10-2005, f. 12-19-05, cert. ef. 1-1-06; OLCC 12-2010, f, 10-18-10, cert. ef. 11-1-10

845-004-0022

Annual License Fee Definition and Refund

(1) Annual license fee is the amount ORS 471.311(5) requires for the use of an annual license.

(2) The Commission considers an annual license used when a licensee allows any sale, service, or consumption of alcoholic beverages on the premises after the effective date of the license.

(3) The Commission refunds the annual license fee, when the licensee verifies that he/she has not used the license as described in section (2) of this rule.

Stat. Auth.: ORS 471, including ORS 471.030, ORS 471-040, ORS 471.730(1) & ORS 471.730(5)
Stats. Implemented: ORS 471.311
Hist.: LCC 6-1986, f. & ef. 4-1-86; OLCC 19-2000, f. 12-6-00, cert. ef. 1-1-01

845-004-0060

Sales by U.S. Customs, County Sheriffs, Other Agencies

(1) The purpose of this rule is to provide for the sale of alcoholic liquors which have been confiscated or received by U.S. Customs, county sheriffs, courts, Internal Revenue Service or other governmental agencies.

(2) A letter requesting permission to sell alcoholic liquors shall be submitted to the Commission, setting forth the following information:

(a) Reason for the sale;

(b) List of merchandise to be sold and approximate quantities;

(c) Date(s), time(s) and place of sale;

(d) Person(s) who will actually conduct the sale;

(e) If the sale is by a U.S. Customs agent, agreement that no merchandise will be delivered to the purchaser until the purchaser presents a letter of release from the Commission.

(3) On approval, the Commission will appoint the person designated to conduct the sale as a retail sales agent of the Commission for the limited purpose of selling the listed merchandise at a specified time and place. All merchandise sold must have seals intact and must be fit for human consumption, unless the purchaser has a federal permit to produce alcohol for fuel and indicates in writing that the merchandise purchased will not be used for human consumption.

(4) If distilled spirits are purchased through a U.S. Customs sale, the purchaser must obtain from the U.S. Customs agent a statement in writing of the quantity of distilled spirits purchased and the purchase price. The purchaser must remit to the Commission a markup of 25 percent of the purchase price of the distilled spirits and obtain a letter of release from the Commission before the U.S. Customs agent may release the distilled spirits to the purchaser.

Stat. Auth.: ORS 471 & ORS 472, including ORS 471.030, ORS 471.730(1), ORS 471.730(5), ORS 472.030, ORS 472.060(1) & ORS 472.060(2)(d)
Stats. Implemented: ORS 471.610, ORS 471.657, ORS 471.665 & ORS 472.060(2)(e)
Hist.: LCC 21-1980, f. 6-20-80, ef. 7-1-80; Renumbered from 845-010-0380

845-004-0065

Communications Between the Commission and Applicants, Licensees, Service Permittees or Alcohol Server Education Course Providers

(1) The Commission sends all correspondence to the mailing address that the applicant, permittee, provider or licensee gave on the original application form. An applicant, permittee, provider or licensee, including officers, directors, shareholders, and partners, who wants to receive suspension, cancellation, nonrenewal and contested case hearing notices at a different address, must notify the Commission in writing of this. The Commission will include this information about notice and the notice option as a written part of the application packet.

(2) Each applicant, permittee, provider or licensee is responsible for notifying the Commission in writing of any change in an address specified in section (1) of this rule.

(3) When the Commission gives notice by mail, according to ORS Chapter 183 and as specified in section (1) of this rule, the applicant, permittee, provider or licensee has received proper notice even when the applicant, permittee, provider or licensee fails to claim this mail.

Stat. Auth.: ORS 183, including 183.341(2), 183.415(4) & 183.450(3); & ORS 471 & 472, including ORS 471.030, 471.730(1) & (5)
Stats. Implemented: ORS 183, including ORS 183.341(2)
Hist.: LCC 2-1981, f. 7-1-81, ef. 1-1-82; OLCC 14-1991, f. 9-30-91, cert. ef. 1-1-92; OLCC 14-2002, f. 10-25-02 cert. ef. 11-1-02

845-004-0070

Screening and Selection Procedures for Personal Service Contracts

(1) Purpose: Department of Administrative Services Administrative Rules OAR 122-020-0005 through 122-041-0005 govern personal service contracts. Within these rules, the Commission is required to develop its own rule for screening and selecting procedures. This rule describes the Commission's procedures.

(2) The Department of General Services in OAR 125-310-0092 defines personal service contracts as:

(a) Contracts for services performed as an independent contractor in a professional capacity, including but not limited to the services of an accountant; attorney; architectural or land use planning consultant; physician or dentist; registered professional engineer; appraiser or surveyor; passenger aircraft pilot; aerial photographer; timber cruiser; data processing consultant or broadcaster;

(b) Contracts for services as an artist in the performing or fine arts, including but not limited to persons identified as photographer, filmmaker, weaver, or sculptor;

(c) Contracts for services of a specialized, creative and research-oriented, non-commercial nature;

(d) Contracts for services as a consultant;

(e) Contracts for educational and human custodial care services.

(3) The Commission's Administrative Services Division contracts for the Commission. Before any personal service contract work is done, the Commission must have a written contract that complies with this rule and any applicable Department of Administrative Services rule.

(4) Contracting procedures: When the Commission proposes to contract, the Commission:

(a) Develops written justification for the contract based on OAR 122-020-0015(3) which says:

"An agency may contract for consultant services when the specialized skills, knowledge and resources to be provided by consultant are not available within the agency; when the work cannot be done in a reasonable time with the agency's own work force; when an independent and impartial evaluation of a situation is required by a consultant with recognized professional expertise and stature in a field; or when it will be less expensive to contract for the work";

(b) Develops the criteria the Commission will use to award the contract. These criteria may include:

(A) Contractors specialized experience and technical competence in relation to the service required;

(B) Contractors capability to perform the work, including any specialized services, within the time limitations;

(C) Contractors past record of performance on other contracts including qualify of work and ability to meet schedules;

(D) Overall cost of the service, as well as hourly rates.

(c) Selects appropriate contractor response format such as request for proposal, written bid, telephone bid. The Commission requires a minimum of three bids for contracts in amounts of $1,000 or more;

(d) Notifies prospective contractors and documents the notification method. The Commission will make special efforts to ensure that it notifies minority/female contractors;

(e) Reviews proposals and selects the best qualified contractor based on the award criteria.

(5) Contract Approval: Before the Commission awards the contract to the selected contractor:

(a) The Commissioners must first approve all personal service contracts of $5,000 or more at their monthly meeting. The Commissioners must approve amendments or extensions of person service contracts that exceed the authorized dollar amount at their monthly meeting. At their monthly meeting, the Commissioners will review a list of any personal service contracts that exceed $1,000 but are less than $5,000 that staff has entered into during the previous month;

(b) The Department of Administrative Services must approve contracts exceeding $1,000. The Department of Administrative Services has delegated to the Commission the authority to enter into contracts in the amounts up to $1,000 with an annual (fiscal year) limit for each contractor of $2,000;

(c) The Attorney General must review and approve contracts in excess of $25,000;

(d) The Department of Administrative Services must approve amendments or extensions of personal service contracts that exceed the authorized dollar amount;

(e) The Department of General Services must approve architectural or engineering service contracts;

(f) The Information Systems Division of the Department of Administrative Services must approve data processing contracts.

(6) Despite section (4) of this rule the Commission may contract with other government agencies for personal services without Department of Administrative Services approval. The Commission must, however, follow the other requirements of this rule and any applicable Department of Administrative Services rules.

(7) In an emergency the Commission may bypass the requirements of section (4) of this rule. The Commission must justify this action in writing. The Commission will keep the explanation in the personal service contracts file and will provide a copy to the Department of Administrative Services.

(8) Despite subsection (5)(a) of this rule, the Administrator, in consultation with the Commission chairperson, may approve personal service contracts between $5,000 and $25,000 in an emergency. The Administrator will bring the contract with an explanation of the emergency to the next Commission meeting for ratification.

Stat. Auth.: ORS 471 & ORS 472, including ORS 471.030, ORS 471.730(1), ORS 471.730(5), ORS 472.030, ORS 472.060(1) & ORS 472.060(2)(d)
Stats. Implemented: ORS 291.021
Hist.: LCC 15-1983, f. 12-27-83, ef. 1-1-84; LCC 6-1985, f. 5-3-85, ef. 7-1-85; OLCC 3-1989, f. 3-31-89, cert. ef. 4-1-89; OLCC 11-1990, f. 6-4-90, cert. ef. 7-1-90; OLCC 1-1991, f. 3-1-91, cert. ef. 4-1-91

845-004-0075

Public Contracting

The Commission adopts the Attorney General's Model Rules for Public Contracting effective August, 1990, by reference as a permanent rule of the Oregon Liquor Control Commission.

Stat. Auth.: ORS 471 & ORS 472, including ORS 471.030, ORS 471.730(1), ORS 471.730(5), ORS 472.030, ORS 472.060(1) & ORS 472.060(2)(d)
Stats. Implemented: ORS 279.049
Hist.: LCC 3-1986, f. 2-6-86, ef. 4-1-86

845-004-0100

Production of Alcohol for Fuel

ORS 471.403 prohibits the distilling of alcoholic liquor without a license. Producers of alcohol for fuel will not violate ORS 471.403 if they comply with the following requirements:

(1) Any person who produces motor fuels containing distilled spirits must possess a Federal Alcohol Fuel Producer's Permit, pursuant to Title 27, CFR, Section 19.935, and must comply with all pertinent federal regulations in effect as of January 1, 1984.

(2) Prior to beginning operation, the person must furnish the Commission with a copy of the Alcohol Fuel Producer's Permit and a copy of the application for the permit.

(3) Alcohol produced or held under the permit may not be used, sold or made available for human consumption.

[Publications: Publications referenced are available from the agency.]

Stat. Auth.: ORS 471 & ORS 472, including ORS 471.030, 471.730(1) & (5), 472.030, 472.060(1) & (2)(d)
Stats. Implemented: ORS 471.205 & ORS 471.730(8)
Hist.: LCC 14-1979, f. 8-27-79, ef. 8-29-79; Renumbered from 845-010-0785; LCC 1-1984, f. & ef. 4-3-84; OLCC 6-2003, f. 4-25-03, cert. ef. 5-1-03

845-004-0101

Purchase of Grain and Ethyl Alcohol for Scientific, Pharmaceutical, Manufacturing, Mechanical and Industrial Purposes

(1) ORS 471.730(8) and 471.404 allow the Commission to license, regulate and control the use of alcohol for scientific, pharmaceutical, manufacturing, mechanical and industrial purposes.

(2) To meet the needs of those who use grain and ethyl alcohol for scientific, pharmaceutical, manufacturing, mechanical and industrial purposes, the Commission requires these users to secure Importation Permit/s. For purposes of this rule, the Commission considers agricultural use of this product to be an industrial use. Importation Permits may be issued for alcohol importation to a person who is not a Brewery, Winery, Distillery, or wholesale licensee.

(3) Importation Permit:

(a) The Commission may issue a permit that allows a person to import 190 or 200 proof alcohol for scientific, pharmaceutical, manufacturing, mechanical and industrial purposes to a person who:

(A) Is at least 21 years old;

(B) Completes the Importation Permit application; and

(C) Sends the application to the Commission at any time. The application must be received at least 30 days prior to the first purchase or use of alcohol for scientific, pharmaceutical, manufacturing, mechanical and industrial purposes.

(b) If the person is eligible for a permit, the Commission will send the person the permit. The person may then order the alcohol from an alcohol vendor and must include a copy of the permit with the order;

(c) The Commission may deny the permit if the person does not complete the application, proposes an unacceptable use for the alcohol or makes a false statement on the application. If the person makes a false statement on the application or uses the alcohol other than described in the application, the Commission may refuse to issue another permit; and

(d) Before the end of each calendar year, Importation Permit holders must send the Commission a listing of the 190 or 200 proof alcohol which the Permit holder used during that calendar year.

(4) The Commission retains the right to audit the records of alcohol vendors and Importation Permit holders at any time to determine compliance with this rule and other regulations of the Oregon Liquor Control Commission.

Stat. Auth.: ORS 471, including 471.030 & 471.730(1) & (5)
Stats. Implemented: ORS 471.404 & 471.730(8)
Hist.: OLCC 25-1990, f. 12-19-90, cert. ef. 2-1-91; OLCC 16-1999, f. 11-2-99, cert.ef. 12-31-99; OLCC 13-2004, f. 11-18-04, cert. ef. 1-1-05

845-004-0105

Domestic Purchase of Grain and Ethyl Alcohol for Scientific, Pharmaceutical, Manufacturing, Mechanical and Industrial Purposes

(1) ORS 471.730(8) allows the Commission to license, regulate and control the use of alcohol for scientific, pharmaceutical, manufacturing, mechanical and industrial purposes.

(2) The Commission requires those who use grain and ethyl alcohol for scientific, pharmaceutical, manufacturing, mechanical and industrial purposes, and who purchase such grain and ethyl alcohol from Oregon vendors, to secure an Open Purchase Order. For purposes of this rule, the Commission considers agricultural use of this product to be an industrial use. Open Purchase Orders as described in this rule may be issued for domestic ethyl alcohol purchases to a person who is not a Brewery, Winery, Distillery, or wholesale licensee of the Commission.

(3) Open Purchase Order for Domestic Purchase of Grain and Ethyl Alcohol:

(a) The Commission may issue an Open Purchase Order that allows a person to purchase 190 proof through 200 proof alcohol for scientific, pharmaceutical, manufacturing, mechanical and industrial purposes from an Oregon vendor of ethyl alcohol to a person who:

(A) Is as least 21 years old;

(B) Completes a request for an Open Purchase Order with the Commission; and

(C) Sends the completed application to the Commission at least 30 days prior to the first purchase of alcohol for scientific, pharmaceutical, manufacturing, mechanical and industrial purposes.

(b) If the person is eligible for an Open Purchase Order, the Commission will establish an Open Purchase Order for that person. The person may then order grain and ethyl alcohol from an Oregon alcohol vendor and must include a copy of the Open Purchase Order with their order to each vendor from whom they purchase.

(c) The Commission may refuse to issue an Open Purchase Order if the person does not complete the application, proposes an unacceptable use for the alcohol or makes a false statement on the application. If the person uses the alcohol other than described in the application, or the Commission discovers after issuing the Open Purchase Order that the person made a false statement on the application, the Commission may withdraw any existing Open Purchase Order previously issued to the person.

(d) Before the end of each calendar year, each holder of an Open Purchase Order as described by this rule must send the Commission a listing of the 190 proof through 200 proof alcohol which the Open Purchase Order holder purchased from an Oregon vendor during that calendar year.

(4) The Commission retains the right to audit the records of alcohol vendors and holders of Open Purchase Orders as described by this rule at any time to determine compliance with this rule and other regulations of the Oregon Liquor Control Commission.

(5) Open Purchase Orders for domestic purchase of grain and ethyl alcohol below 190 proof will be reviewed by the Director of the Distilled Spirits Program, and approved if uses are consistent with this rule.

Stat. Auth.: ORS 471, including 471.030, 471.730(1) & (5)
Stats. Implemented: ORS 471.730(8)
Hist.: OLCC 4-2006, f. 2-22-06, cert. ef. 3-1-06

845-004-0120

Investigative Subpoenas and Oaths

(1) Purpose. ORS 471.760 allows the Commissioners and any of their authorized agents to issue subpoenas and administer oaths. The Commissioners delegate authority to the Administrator and Deputy Administrator to issue investigative subpoenas, and authorize the Administrator to delegate that authority to selected staff. This rule defines the circumstances under which the Commission issues investigative subpoenas and administers oaths. This rule does not concern subpoenas issued and oaths administered by Administrative Law Judges in the contested case process. For purposes of this rule, the term "records" includes videotapes, DVDs, audiotapes, CDs, and other media used to capture or record information and activities.

(2) At any time during a license application, Service Permit application, or alleged liquor law violation investigation, the Administrator or Deputy Administrator may issue:

(a) An investigative subpoena for books, payrolls, accounts, papers, documents or records under the following circumstances:

(A) It appears to the Administrator or Deputy Administrator the information may be helpful to make a decision about a liquor license application, Service Permit application, or alleged liquor law violation; and

(B) The applicant, licensee or Service Permittee cannot or will not provide the book, payroll, account, paper, document or record; the investigation might be compromised by asking the licensee or applicant for the book, payroll, account, paper, document or record; or the person in possession of the book, payroll, account, paper, document or record requires a subpoena for its release.

(b) An investigative subpoena to any person requiring the person to give a sworn statement. The Administrator or Deputy Administrator may issue a subpoena whenever compelling a sworn statement may be helpful in making a decision about a liquor license application, Service Permit application, or alleged liquor law violation. Investigators, Inspectors, Regional Coordinators and Regional Managers may conduct interviews of subpoenaed witnesses under oath.

(3) During a liquor license application, Service Permit application, or alleged liquor law violation investigation, an Investigator, Inspector, Regional Coordinator or Regional Manager may administer an oath to a person making a voluntary statement.

Stat. Auth.: ORS 471 including 471.030 & 471.730(1) & (5)
Stats. Implemented: ORS 471.760
Hist.: OLCC 16-1997, f. 7-24-97, cert. ef. 9-1-97; OLCC 6-2005, f. 10-19-05, cert. ef. 11-1-05

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