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2008-994-Order No. 2008-101 Recorded 12/17/2008DESCHUTES COUNTY OFFICIAL RECORDS CJ 202-99; CLEGAVIE D NANCY BLANKENSHIP, COUNTY CLERK lid 11 1r1 COMMISSIONERS' JOURNAL 12/17/2008 11:48:31 RM L COUNSEL IIIIIII IIIIIIIIIIIIIIIIIIIII III 2008-994 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order to Establish a Procedure for Requests for Administering Liquor License Recommendations ORDER NO. 2008-101 WHEREAS, Deschutes County does not have a written procedure for administering request for liquor license recommendations; and WHEREAS, the Oregon Liquor Control Commission (OLCC) requires every applicant for an initial liquor license in unincorporated Deschutes County to provide the County with a copy of the application; and WHEREAS, upon receipt of a liquor license application from an applicant located in unincorporated Deschutes County, OLCC requests Deschutes County's recommendation for approval or denial of the application; and WHEREAS, the specific grounds upon which OLCC may refuse to issue a liquor license are set forth in ORS 471.313; and WHEREAS, the OLCC welcomes and may rely upon input from the Deschutes County Sheriff's Office and the County's Community Development Department in deciding whether to issue a liquor license; now, therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY ORDERS as follows: Section 1.The Deschutes County Liquor License Recommendation Procedure, as set forth in Exhibit A, attached hereto, is adopted for the administration of requests for liquor license recommendations. Section 2.The Deschutes County Liquor License Recommendation Form, as set forth in Exhibit B, attached hereto, is adopted. Dated this I-rday of 6"v 2008 BOARD OF COUNTY COMMISSIONERS OF DESCHWS COUNTY, OREGON L ATTEST: (PA_~ Recording Secretary TAMMWTAYM Vice MICHAEL M. DALY, Commissioner PAGE 1 OF 1-ORDER N0.2008-101 TO: BOARD OF COMMISSIONERS FROM: DAVE INBODY SUBJECT: OLCC LICENSE APPLICATION REVIEW PROCESS DATE: 12/11/2008 CC: DAVE KANNER, ERIK KROPP This memo provides information concerning the application process for obtaining a liquor license and outlines a proposed process for administering license recommendation requests in Deschutes County. The information in this memo includes: • Background on the Oregon Liquor Control Commission and Oregon Liquor Control Act • Liquor License Application Process • Proposed Deschutes County Liquor License Recommendation Procedure Oregon Liciuor Control Commission (OLCC) The Oregon Liquor Control Commission (OLCC) was created in 1933 by the state legislature after the national prohibition on alcohol was repealed. Oregon is a control state with the exclusive right to sell packaged distilled spirits, which are dispersed statewide from a distribution center in Portland and sold in 243 retail liquor stores operated by contracted agents. The agency is headquartered in Portland with regional offices in Bend, Eugene, Medford and Salem. The Liquor Control Act establishes that anyone who manufactures distributes or sells alcoholic beverages in Oregon must be licensed by OLCC; ensuring that only qualified people and businesses are licensed to sell and serve alcoholic beverages. Licenses are issued to private businesses to sell packaged beer and wine, and restaurants, bars and taverns to sell beer, wine and distilled spirits by the glass. The agency also administers the Alcohol Server Education Program, which focuses on responsible alcohol service. All alcohol servers must complete the training course every five years. Policy for the OLCC is set by its five-person commission. They meet monthly to make decisions addressing liquor licenses, rules, contested case hearings, and appointments of liquor store agents. Commissioners are appointed by the governor to four-year terms, with one member representing each congressional district. One member must also be from the food and beverage industry. No commissioner may serve more than two full terms. Commissioners appoint the agency's executive director, who oversees the agency's 211 employees. The powers of OLCC include the following: • Control the manufacture, possession, sale, purchase, transport, import and delivery of alcohol • Grant, refuse, suspend or cancel licenses and permits for the sale or manufacture of alcohol • Collect taxes and duties relating to alcoholic liquors, and provide evidence of payment • Aid in prosecution of alcoholic liquors violations • Seize alcoholic liquor manufactured, sold, kept, imported or transported illegally • Regulate advertising of alcoholic liquor by newspapers, letters, billboards or radio • Control scientific, pharmaceutical, manufacturing, mechanical and industrial alcohol use • Fix the prices for alcoholic liquors of more than 5% alcohol by volume • Bottle, blend, rectify, manufacture or sell alcoholic liquor • Establish stores and warehouses for sale of liquors containing over 5% alcohol by volume OLCC Liquor Licensing Process OLCC requires every applicant for an initial liquor license to provide the local government written notice of filing the application. This notification includes a copy of OLCC's Liquor License Application form and copies of each Individual History form and Business Information form. The applicant must provide documentation to OLCC that the local government has been notified within 10 days. OLCC will provide written notice to local governments of annual licenses in the locality that are due to expire within three months and are subject to local government renewal recommendations. OLCC takes recommendations from local governments into consideration before granting or refusing a license. If a recommendation for approval is received, the agency will proceed with consideration of the application. Provided the application is completed correctly and no adverse information is discovered about the applicant, these applications are typically approved. The same process is followed for a neutral recommendation or if no recommendation is submitted. For a recommendation to be considered, a local government must respond within 45 days of being notified. If a recommendation for denial is received, the agency will not proceed with the normal consideration process. Instead, the local OLCC officer must prepare a report for the agency director. In preparation of this report, the jurisdiction recommending the denial is contacted for additional information regarding the applicant. The agency director, upon receipt of the report, may make a judgment on the application or pass it on to the OLCC. A decision to deny an application must be justified based on the grounds of refusal listed in ORS 471.313. Applicants are afforded the opportunity to be heard if their application is rejected. All licenses and renewals are issued for a period of one year expiring on March 31, June 30, September 30 or December 31 of each year. A license issued for the first time may be issued for less than a year. OLCC may grant a temporary letter of authority for up to 90 days on change of ownership applications; however, this does not constitute a license. The OLCC provides written notice to the public 14 days before granting or denying a liquor license. A fee equal to 25% of the annual license may be assessed by OLCC for renewal applications received less than 20 days before the license expires. OLCC may assess a 40% fee if the application is received up to 30 days after the license expires. A local government may require an application fee not to exceed $25 for processing an application. Alternatively, a local government, provided a public notice and hearing occurs, may charge a processing fee up to $100 for an original application, $75 for a change in ownership or location application and $35 for a renewal application. Forms Required for License Applications • Liquor License Application form • Individual History form for anyone with an interest of 10% or more in the enterprise. This includes general partners with investment commitments for limited partnership or limited liability company applicants or directors, officers, stockholders for corporate applicants. • Statement of funding and verification of funding sources • If a registered entity has ownership of 10% or more of the applicant-registered entity, a list of all officers, directors, shareholders, general and limited partners or members must be completed. • Individual History forms for managers when the applicant is inexperienced, new to the industry, or will not be personally managing the premises. This form is also required if the premises has a history of problems or is located in a problem area. • For a change of licensee, the new owner must apply for a new license. • For a change of location, the licensee must apply for a new license for the new location. License Renewal Requirements • Renewal Application, including fee or other requirements, and liquor license insurance or bond • Local government recommendation 2 Insurance or Bond Requirement Applicants can demonstrate financial responsibility for liability associated with damage to third parties by patrons by providing either proof of liquor liability insurance or corporate surety bond of at least $300,000. Types of Licenses Authorized by OLCC There are several types of licenses authorized throueh OLCC. This table outlines those licenses License Type _ Annual Fee License Privileges Sale and service of distilled spirits, malt beverages and wine for consumption on premises; cater Full On-Premises Sales $400 events off-site with pre-approval; can be issued to private clubs, commercial establishments, caterers, passenger carriers, other locations serving food Sale of malt beverages, wine and cider for Limited On-Premises Sales $200 consumption on premises; sale of kegs for consumption off premises; cater events off-site with pre-approval Sale of malt beverages, wine and cider for Off-Premises Sales $100 consumption off premises; Sample tastings with approval Manufacture and sale of malt beverages to Brewery-Public House $250* wholesales; sale of malt beverages, wine and coder for consumption on or off remises; Manufacture, importation, storage, transportation and wholesale sale of malt beverages to OLCC Brewery $500* licensees; sale of malt beverages brewed on premises for consumption on premise; sale of kegs to public Import, manufacture, distill, rectify, blend, Distillery $100 denature and store distilled spirits; visitor tastings of produced brand or pot-distilled liquor Import, bottle, produce, blend, store, transport and Winery $250* export wine; wholesale sales to OLCC and licensees; retail sales of malt beverages and wine for consum tion on and off remises Warehouse $100* Store, import, export, bottle, produce, blend and transport wine and malt beverages Import, store, transport and wholesale sale of malt Wholesale Malt Beverage & Wine $275* beverages and wine to licensees; limited retail sales to public (dock sales) Out-of-state manufacturer or importer of foreign Certificate of Approval $175 (5 years) wine or malt beverages to import wine or malt beverages to licensees Direct Shipper Permit $50 Manufacturers and retailers to ship wine and cider directly to Oregon residents Importation, storage, transportation, export and Grower's Sales Privilege $250* wholesale and retail sales of wine from fruit or a es own in Oregon Manufacturers sale and ship wine and cider they Wine Self Distribution Permit $100 produce to retailers for resale; ship to businesses with OLCC endorsement to receive shipments * This license also requires a $1,000 bond. 3 Certain people and organizations are exempt from these license requirements including the following: • Hospitals, retirement homes and other licensed elderly care facilities licensed by the state • Private residence accommodating six or fewer guests may sell wine, malt beverages and cider • Employees of authorized wholesale distributors may sell to licensed retailers and wholesalers • Licensed pharmacists can sell alcoholic beverages only for use as drugs or medication • Wine collectors can sell wine one a year at an auction with written approval from OLCC • Nonprofits may sell wine or malt beverages once a year with written approval from OLCC • Manufacturers may sell medicines, perfumes, lotions and other items unfit for consumption • Individuals making or keeping wine or beer in the home, for home consumption, not sale Grounds for refusing to issue license (ORS 471.313) OLCC may refuse a license if the applicant: • Has not furnished a bond or is not maintaining the insurance or bond required • Is a manufacturer, wholesaler or financed by a manufacturer or wholesaler • Habitually uses alcoholic beverages, drugs or controlled substances to excess • Made false statements to OLCC • Is incompetent or physically unable to carry on the management of the establishment • Has been convicted of violating Oregon alcoholic liquor laws, or been convicted of a felony • Has maintained an unsanitary establishment, provided a law or ordinance has been violated • Is not of good repute and moral character • Did not comply with state alcoholic liquor laws and rules of OLCC when previously licensed • Is not a legitimate owner of the business, or didn't disclose others with ownership interests • Has not demonstrated financial responsibility sufficient to meet requirements of the business • Is unable to read or write English or to understand Oregon liquor laws or OLCC rules OLCC may also refuse a liquor license if either of the following is believed to be true: • There are sufficient licensed premises in the locality or a license is not supported by the public • A history of serious and persistent problems involving disturbances, lewd or unlawful activities in and around the establishment, or establishments previously owned by the applicant, exists. Problem behaviors include obtrusive or excessive noise, music or sound vibrations; public drunkenness; fights; altercations; harassment; drug sales; alcohol or related litter; trespassing; public urination. Grounds for cancellation or suspension of license OLCC may cancel or suspend a license if the applicant committed any of the following: • Violation of OLCC provisions or rules • Made false representation or statement to OLCC to induce or prevent OLCC action • Did not maintain an acceptable bond or not maintain the insurance or bond required • Maintained an unsanitary establishment, provided a law or ordinance has been violated • Insolvent, incompetent or physically unable to carry on management of the establishment • In the habit of using alcoholic liquor, habit-forming drugs or controlled substances to excess. • Knowingly sold alcoholic liquor to minors or visibly intoxicated persons • Knowingly allowed a visibly intoxicated person to consume alcoholic beverages on the premises • Misrepresented an alcoholic liquor sold to a customer or the public • Convicted of a felony, violating Oregon liquor laws, or misdemeanor committed on premises • A manufacturer, wholesaler or is financially involved with manufacturer or wholesaler OLCC may also cancel or suspend a license if any of the following occur: • Serious and persistent problems involving disturbances, lewd or unlawful activities on premises • OLCC determines, based on public convenience or necessity, it is warranted 4 • Full on-premise, limited on-premise or brewery-public house license can be cancelled if it is suspended two or more times within a two-year period A license is automatically suspended if unlawful drug use or sales occur on the premises, of which the licensee is aware, and no immediate and effective action is taken to prevent it. The county courts, district attorneys and municipal authorities, upon convicting a licensee of a violation of the law or a local ordinance, notify OLCC. The police also notify OLCC when a licensee allegedly provided alcohol to a driver cited for consumption of alcohol during an auto accident causing injury or property damage. OLCC will contact a licensee if named as the alleged provider. The police will notify an alleged social host when named as the provider of alcoholic liquor. Proposed Deschutes County Liquor License Recommendation Procedure Step #1 All liquor license applications will be received in the Administrative Services Department. Upon receipt of the request for a recommendation from the applicant, the first half of the Deschutes County Liquor License Recommendation Form will be filled out. Step #2: A copy of the application is sent via email to identified contacts in the Sheriff's Office and the Community Development Department. Each department will review the document to identify any grounds for recommending a denial of the license. The Liquor Control Act (ORS 471.313) identifies specific grounds for refusing to issue a liquor license. Below is a list of justifications for a denial recommendation listed by department. • Sheriff s Office: o Applicant has been convicted of violating Oregon liquor laws o Applicant has been convicted of a felony o Applicant is not of good repute and moral character o Applicant habitually uses alcoholic beverages, drugs or controlled substances in excess • Community Development Department: o Applicant has violated law or ordinance for maintaining an unsanitary establishment o Applicant not legitimate owner of business or didn't disclose others with ownership o Establishment fails to meet ordinance or zoning requirement necessary for alcohol sales Step #3: After reviewing the application, each department sends a response via email back to Administrative Services indicating whether they recommend an approval or a denial of the license. If a denial of the license is recommended, the department will provide the grounds for the denial from the list provided. Step #4: Upon receipt of departmental input, Administrative Services will complete the remainder of the Deschutes County Liquor License Recommendation Form and contact the applicant for retrieval of the form. Step #S: On a monthly basis, a list of all liquor license recommendations will be provided to the Board of County Commissioners for information purposes. No action will be required on their part. Attachments • OLCC Licensing Process Overview • ORS 471.166 Local government recommendations on license issuance and renewal • ORS 471.313 Grounds for refusing to issue license • Deschutes County Liquor License Recommendation Form 471.313 Grounds for refusing to issue license The Oregon Liquor Control Commission may refuse to license any applicant under the provisions of this chapter if the commission has reasonable ground to believe any of the following to be true: (1) That there are sufficient licensed premises in the locality set out in the application, or that the granting of a license in the locality set out in the application is not demanded by public interest or convenience. In determining whether there are sufficient licensed premises in the locality, the commission shall consider seasonal fluctuations in the population of the locality and shall ensure that there are adequate licensed premises to serve the needs of the locality during the peak seasons. (2) That the applicant has not furnished an acceptable bond as required by ORS 471.311 or is not maintaining the insurance or bond required by ORS 471.168. (3) That, except as allowed by ORS 471.392 to 471.400, any applicant to sell at retail for consumption on the premises has been financed or furnished with money or property by, or has any connection with, or is a manufacturer of, or wholesale dealer in, alcoholic liquor. (4) That the applicant: a. Is in the habit of using alcoholic beverages, habit-forming drugs or controlled substances to excess. b. Has made false statements to the commission. c. Is incompetent or physically unable to carry on the management of the establishment propsed to be licensed. d. Has been convicted of violating any of the alcoholic liquor laws of this state, general or local, or has been convicted at any time of a felony. e. Has maintained an insanitary establishment. f. Is not of good repute and moral character. g. Did not have a good record of compliance with the alcoholic liquor laws of this state and the rules of the commission when previously licensed. h. Is not the legitimate owner of the business proposed to be licensed, or otherpersons have ownership interests in the business which have not been disclosed. i. Is not possessd of or has not demonstrated financial responsibility sufficent to adequately meet the requirements of the business proposed to be licensed. j. Is unable to read or write the English language or to understand the laws of Oregon relating to alcoholic liquor or the rules of the commission. (5) That there is a history of serious and persistent problems involving disturbances, lewd or unlawful activities or noise either in the premises proposed to be licensed 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 is grounds for refusal 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; unlawful drug sales; alcohol or related litter; trespassing on private property and public urination. Histories from premises, currently or previously operated by the applicant may be considered when reasonable inference may be made that similar activities will occur as to the premises proposed to be licensed. The applicant may overcome the history by showing that the problems are not serious or persistent or that the applicant demostrates a willingness and ability to control adequately the premises proposed to be licensed 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. Exhibit A: Deschutes County Liquor License Recommendation Procedure Step #1 All initial liquor license applicants in unincorporated Deschutes County shall pay $25 to the Deschutes County Clerk to process an Oregon Liquor Control Commission (OLCC) liquor license application as provided in ORS 471.166(7). The County Clerk's Office will provide the applicant with a receipt for payment. Step #2 The applicant shall complete and submit the applicant portion (Part I) of the Deschutes County Liquor License Recommendation Form to the Administrative Services Department with a copy of the OLCC liquor license application. The applicant is required to show proof of payment for the processing fee. The Administrative Services Department will verify that a date of birth for the applicant has been provided as part of the application. Step #3: The Administrative Services Department shall send a copy of the application via email or interoffice mail to the Sheriff's Office (Sheriffs Assistant) and the Community Development Department (Administrative Supervisor). The assigned members of these departments shall review the application together with other records or information which may have some bearing upon the application and identify any grounds for recommending denial of the license. The Liquor Control Act (ORS 471.313) identifies specific grounds for refusing to issue a liquor license. Among those grounds for denial, the following are justifications that can be verified by Deschutes County: 1. There are sufficient licensed premises in Deschutes County or granting a license is not demanded by public interest or convenience. 2. The applicant has been financed or furnished with money or property by, or has any connection with, or is a manufacturer of, or wholesale dealer in, alcoholic liquor. 3. The applicant is in the habit of using alcoholic beverages, habit-forming drugs or controlled substances to excess. 4. The applicant is incompetent or physically unable to carry on the management of the establishment proposed to be licensed. 5. The applicant has been convicted of violating any of the alcoholic liquor laws of Oregon or Deschutes County, or has been convicted at any time of a felony. 6. The applicant has maintained an insanitary establishment. 7. The applicant is not of good repute and moral character. 8. The applicant did not have a good record of compliance with the alcoholic liquor laws of Oregon and OLCC when previously licensed. 9. The applicant is not the legitimate owner of the business proposed to be licensed, or other persons have ownership interests in the business which have not been disclosed. 10. The applicant is not possessed of or has not demonstrated financial responsibility sufficient to adequately meet the requirements of the business proposed to be licensed. 11. The applicant is unable to read or write the English language or to understand the laws of Oregon relating to alcoholic liquor or the rules of the OLCC. 12. There is a history of serious and persistent problems involving disturbances, lewd or unlawful activities or noise either in the premises proposed to be licensed 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. Such behavior includes, but is not limited to obtrusive or excessive noise, music or sound vibrations; public drunkenness; fights; altercations; harassment; unlawful drug sales; alcohol or related litter; trespassing on private property and public urination. Histories from premises, currently or previously operated by the applicant may be considered when reasonable inference may be made that similar activities will occur as to the premises proposed to be licensed. Step #3: After reviewing the application, the Sheriffs Office and the Community Development Department shall each prepare and send a response via email or interoffice mail back to Administrative Services indicating whether they recommend approval or denial of the application. If denial of the license is recommended, the department shall include written justification for denial. A departmental response shall be returned within 30 days of receipt of the application. Step #4: Upon receipt of departmental responses, Administrative Services will complete the remainder of the Deschutes County Liquor License Recommendation Form (Part II) and send it to the local OLCC office at the following address: OLCC, 2146 NE 4t" St, Suite 160, Bend, Oregon 97701. For a recommendation to be considered, Deschutes County must respond within 45 days of being notified. If no recommendation is received within 45 days, OLCC will proceed as though a favorable recommendation has been made. A copy of the form may be provided to the applicant upon request. All recommendations of denial are thoroughly investigated by a local OLCC officer before a license is denied. Applicants are afforded the opportunity to be heard if their application is rejected through OLCC procedures set forth in ORS 471.311(2). Step #5: On a monthly basis, a list of all liquor license recommendations will be provided to the Board of County Commissioners for information purposes. No action will be required on their part. 2 Liquor License Renewal Procedure OLCC provides the Administrative Services Department with a list of license renewals on an annual basis. A copy of this list will be send via email or interoffice mail to the Sheriff's Office and the Community Development Department for review. Any objections to the renewal of a license must be provided to the Administrative Services Department within 30 days. All objections will be forwarded to OLCC within 45 days of receipt of the list. If an objection is not received within 45 days, OLCC will proceed as though a favorable recommendation has been made. Temporary Liquor License Procedure All temporary liquor license applications will be received and processed through the Sheriffs Office by the Sheriffs Assistant. The Community Development Department (Administrative Supervisor) will be informed by the Sheriffs Office of all temporary liquor licenses recommended for approval via email or interoffice mail. The Community Development Department, in turn, will ensure that all County requirements have been met relating to service of liquor at the temporary event. 3 Exhibit B: Deschutes County Liquor License Recommendation Form Applicant Address of Establishment PART I Type of License: 0 D O D a D Action Taken: D O D O Full On-Premises Sales License Limited On-Premises Sales License Off-Premises Sales License Brewery-Public House License Warehouse License Wholesale Malt Beverage and Wine License Initial Liquor License Application Renewal of Liquor License Change of Ownership Change of Location 0 Applicant has receipt of payment from Clerk's Office O Application includes date of birth for applicant PART II Deschutes County Recommendation: 0 Recommendation of Approval 0 Recommendation of Denial Reason for Denial : 0 Applicant convicted of violating Oregon liquor laws 0 Applicant convicted of a felony 0 Applicant not of good repute and moral character 0 Applicant habitually uses alcoholic beverages, drugs or controlled substance in excess 0 Applicant violated law or ordinance by maintaining an unsanitary establishment 0 Applicant is not the legitimate owner of the business or failed to disclose others with ownership interests 0 Establishment fails to meet ordinance or zoning requirements necessary for alcohol sales Authorized Signature Date