Chapter 107 Oregon Laws 2011

AN ACT

HB 2361

Relating to the imposition of sanctions by the Oregon Liquor Control Commission; creating new provisions; and amending ORS 471.315 and 471.412.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 471.315 is amended to read:

471.315. (1) The Oregon Liquor Control Commission may cancel or suspend any license issued under this chapter, or impose a civil penalty in lieu of or in addition to suspension as provided by ORS 471.322, if [it] the commission finds or has reasonable ground to believe any of the following to be true:

(a) That the licensee:

(A) Has violated any provision of this chapter or ORS 474.115 or any rule of the commission adopted pursuant thereto.

(B) Has made any false representation or statement to the commission in order to induce or prevent action by the commission.

(C) Is not maintaining an acceptable bond as required by ORS 471.311 or is not maintaining the insurance or bond required by ORS 471.168.

(D) Has maintained an insanitary establishment.

(E) Is insolvent or incompetent or physically unable to carry on the management of the establishment of the licensee.

(F) Is in the habit of using alcoholic liquor, habit-forming drugs or controlled substances to excess.

(G) [Knowingly] Has knowingly sold alcoholic liquor to persons under 21 years of age or to persons visibly intoxicated at the time of sale. [or]

(H) Has [knowingly] allowed the consumption of alcoholic liquor on the licensed premises by a person who is visibly intoxicated at the time of consumption.

[(H)] (I) Has misrepresented to a customer or the public any alcoholic liquor sold by the licensee.

[(I)] (J) Since the granting of the license, has been convicted of a felony, of violating any of the liquor laws of this state, general or local, or of any misdemeanor or violation of any municipal ordinance committed on the licensed premises.

(b) That any person licensed to sell at retail for consumption on the premises is acting as an agent of, or is a manufacturer or wholesaler of alcoholic liquors, or has borrowed money or property, or has accepted gratuities or rebates, or has obtained the use of equipment from any manufacturer or wholesaler of alcoholic liquor or any agent thereof.

(c) That there is a history of serious and persistent problems involving disturbances, lewd or unlawful activities or noise either in the premises or involving patrons of the establishment in the immediate vicinity of the premises if the activities in the immediate vicinity of the premises are related to the sale or service of alcohol under the exercise of the license privilege. Behavior [which] that is grounds for cancellation or suspension of a license under this section, where so related to the sale or service of alcohol, includes[,] but is not limited to obtrusive or excessive noise, music or sound vibrations; public drunkenness; fights; altercations; harassment or unlawful drug sales; alcohol or related litter; trespassing on private property; and public urination. Mitigating factors include a showing by the licensee that the problems are not serious or persistent or that the licensee has demonstrated a willingness and ability to control adequately the licensed premises and patrons’ behavior in the immediate vicinity of the premises which is related to the licensee’s sale or service of alcohol under the licensee’s exercise of the license privilege.

(d) That there is any other reason [which] that, in the opinion of the commission, based on public convenience or necessity, warrants canceling or suspending such license.

(2) Civil penalties under this section shall be imposed as provided in ORS 183.745.

SECTION 2. ORS 471.412 is amended to read:

471.412. (1) [No] A licensee or permittee [shall knowingly] may not allow a person to consume or to continue to consume alcoholic beverages on the licensed premises after observing that the person is visibly intoxicated.

(2) A licensee or permittee is not in violation of subsection (1) of this section if the licensee or permittee makes a good faith effort to remove any unconsumed alcoholic beverages from the person’s possession when the licensee or permittee observes that the person is visibly intoxicated.

(3) Nothing in this section applies to determining liability under ORS 471.565.

(4) Notwithstanding any other provision of law, the Oregon Liquor Control Commission shall only impose letters of reprimand for the first three violations of this section within a two-year period. For license renewal purposes, the first three violations of this section in a two-year period [shall] do not apply in determining the past record of compliance under ORS 471.313 (4)(g).

SECTION 3. The amendments to ORS 471.315 and 471.412 by sections 1 and 2 of this 2011 Act apply with regard to consumption that occurs on a licensed premises on or after the effective date of this 2011 Act.

Approved by the Governor May 19, 2011

Filed in the office of Secretary of State May 19, 2011

Effective date January 1, 2012

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