(1) The Oregon Liquor and Cannabis Commission may cancel, suspend, restrict or require mandatory training for any license issued under this chapter, or impose a civil penalty in lieu of or in addition to a suspension as provided by ORS § 471.322, if the commission finds or has reasonable ground to believe any of the following to be true:

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

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

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

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

(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 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 that, in the opinion of the commission, based on public convenience or necessity, warrants canceling or suspending such license.

(2) The commission may cancel, suspend or restrict a certificate issued under ORS § 471.244 or permit issued under ORS § 471.274 or 471.282, or impose a civil penalty in lieu of or in addition to a suspension of a certificate or permit as provided by ORS § 471.327, if the commission has reasonable grounds to believe that the certificate or permit holder:

(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) Has been convicted of violating a general or local law of this state or another state, or of violating a federal law, if the conviction is substantially related to the fitness and ability of the applicant to lawfully carry out activities related to the certificate or permit.

(d) Has failed to comply with ORS § 459A.700 to 459A.744, 474.005 to 474.095, 474.115, 475C.005 to 475C.525, 475C.540 to 475C.586 or 475C.770 to 475C.919 or this chapter or ORS Chapter 473 or rules adopted by the commission pursuant to ORS § 459A.700 to 459A.744, 474.005 to 474.095, 474.115, 475C.005 to 475C.525, 475C.540 to 475C.586 or 475C.770 to 475C.919 or this chapter or ORS Chapter 473.

(e) Does not have a good record of compliance with the alcoholic liquor laws and rules of any other jurisdiction.

(f) Or any officer, agent or employee of the certificate or permit holder, violated any term or provision of an agreement entered into pursuant to ORS § 471.244 or submitted a false or fictitious report pursuant to the agreement.

(3) Civil penalties under this section shall be imposed as provided in ORS § 183.745. [Amended by 1953 c.107 § 2; 1971 c.159 § 4; 1979 c.744 § 34; 1981 c.599 § 1; 1989 c.785 § 3; 1991 c.734 § 40; 1995 c.301 § 63; 1997 c.841 § 6; 1999 c.351 § 51; 2011 c.107 § 1; 2017 c.533 § 12; 2021 c.351 § 76; 2023 c.391 § 14]