OREGON LIQUOR CONTROL COMMISSION
Application Review, Approval of Application & Issuance of License, Denial of Application, Withdrawal of Application
(1) Once the Commission has determined that an application is complete it must review the application to determine compliance with ORS Chapter 475B and these rules.
(2) The Commission:
(a) Must, prior to acting on an application for a new license, a change to a larger producer canopy designation, a change to producer cultivation method designation or change in processor endorsement type, receive a land use compatibility statement from the city or county that authorizes land use in the city or county in which the applicant’s proposed premises is located.
(b) May, in its discretion, prior to acting on an application:
(A) Contact any applicant or individual with a financial interest and request additional documentation or information; and
(B) Verify any information submitted by the applicant.
(3) The requirements of section
(2)(a) of this rule do not apply to applicants for a producer license if the applicant demonstrates in a form and manner specified by the Commission that:
(a) The applicant is applying for a license at an address where a marijuana grow site registered under ORS 475B.420 is located;
(b) The address is outside of city limits;
(c) At least one person responsible for a marijuana grow site located at the address first registered with the Authority under ORS 475B.420 before January 1, 2015;
(d) Each person responsible for a marijuana grow site located at the address first registered with the Authority under ORS 475B.420 before February 1, 2016; and
(e) The applicant is applying for a mature marijuana plant grow canopy of:
(A) 5,000 square feet or less, if the marijuana is produced outdoors; or
(B) 1,250 square feet or less, if the marijuana is produced indoors.
(4) The Commission must inspect the proposed premises prior to issuing a license.
(5) If during an inspection the Commission determines the applicant is not in compliance with these rules, the applicant will be provided with a notice of the failed inspection and the requirements that have not been met.
(a) An applicant that fails an inspection will have 15 calendar days from the date the notice was sent to submit a written response that demonstrates the deficiencies have been corrected.
(b) An applicant may request in writing one extension of the 15-day time limit in subsection
(a) of this section, not to exceed 30 days.
(6) If an applicant does not submit a timely plan of correction or if the plan of correction does not correct the deficiencies in a manner that would bring the applicant into compliance, the Commission may deny the application.
(7) If the plan of correction appears, on its face, to correct the deficiencies, the Commission will schedule another inspection.
(8) If an applicant fails a second inspection, the Commission may deny the application unless the applicant shows good cause for the Commission to perform additional inspections
Approval of Application and Issuance of License
(1) If, after the application review and inspection, the Commission determines that an applicant is in compliance with ORS 475B.025 to 475B.235 and these rules the Commission must notify the applicant in writing that the application has been approved and after payment by the applicant of the license fee, provide the applicant with proof of licensure that includes a unique license number, the effective date of the license, date of expiration, and a description of premises for which the license was issued. If the applicant paid the license fee with a check the Commission will not issue a license until it has confirmation that the check has cleared.
(2) A licensee:
(a) May not operate until on or after the effective date of the license.
(b) Must display proof of licensure in a prominent place on the premises.
(c) May not use the Commission name or logo on any signs at the premises, on the business’ website, or in any advertising or social media, except to the extent that information is contained on the proof of licensure or is contained in part of warnings, signage or other documents required by these rules.
(3) Licensure is only valid for the premises indicated on the license and is only issued to the individuals or entities listed on the application or subsequently approved by the Commission.
(4) A license may not be transferred except as provided in OAR 845-025-1160
Denial of Application
(1) The Commission must deny an initial or renewal application if:
(a) An applicant is under the age of 21
(b) The applicant’s land use compatibility statement shows that the proposed land use is prohibited in the applicable zone, if a land use compatibility statement is required
(c) The proposed licensed premises is located:
(A) On federal property
(B) On reservation or tribal trust land of a federally recognized Indian tribe unless that tribe has entered into an agreement with the State of Oregon which allows licensing of recreational marijuana businesses
(C) At the same location or address, as a retail, processor or wholesale license, unless all of the licenses at the address or location are held or sought by identical applicants
(d) The location proposed to be licensed is prohibited under OAR 845-025-1230
(e) The proposed licensed premises of a producer is located on the same tax lot, as a site registered with Oregon Department of Agriculture for the production of industrial hemp, unless the applicant submits and the Commission approves a control plan describing how the registered site will be separated from the premises proposed to be licensed and how the applicant will prevent transfer of industrial hemp to the licensed premises.
(f) The proposed licensed premises of a processor who has applied for an endorsement to process extracts is located in an area that is zoned exclusively for residential use.
(g) The proposed licensed premises of a retail applicant is located:
(A) Except as provided in Oregon Laws 2016, chapter 83, section 29b, within 1,000 feet of:
(i) A public elementary or secondary school for which attendance is compulsory under ORS 339.020; or
(ii) A private or parochial elementary or secondary school, teaching children as described in ORS 339.030.
(B) In an area that is zoned exclusively for residential use.
(h) The proposed licensed premises of a wholesaler applicant is in an area zoned exclusively for residential use.
(i) A city or county has prohibited the license type for which the applicant is applying, in accordance with ORS 475B.800.
(2) The Commission may deny an initial or renewal application, unless the applicant shows good cause to overcome the denial criteria, if it has reasonable cause to believe that:
(a) The applicant:
(A) Is in the habit of using alcoholic beverages, habit-forming drugs, marijuana, 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 proposed to be licensed.
(D) Is not of good repute and moral character.
(E) Does not have a good record of compliance with ORS 475B.010 to 475B.395, or these rules, prior to or after licensure including but not limited to:
(i) The giving away of marijuana items as a prize, premium or consideration for a lottery, contest, game of chance or skill, or competition of any kind, in violation of ORS 475B.275;
(ii) Providing marijuana items to an individual without checking that the individual is 21 or older;
(iii) Unlicensed transfer of marijuana items for financial consideration; or
(iv) Violations of local ordinances adopted under ORS 475B.340, pending or adjudicated by the local government that adopted the ordinance.
(F) Does not have a good record of compliance with ORS Chapter 471 or any rules adopted thereunder.
(G) Is not possessed of or has not demonstrated financial responsibility sufficient to adequately meet the requirements of the business proposed to be licensed.
(H) Is unable to understand the laws of this state relating to marijuana or these rules, including but not limited to ORS 475.300 to 475.346 and ORS 475B.550 to 475B.590. Inability to understand laws and rules of this state related to marijuana may be demonstrated by violations documented by the Oregon Health Authority.
(b) Any individual listed on the application 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 under the license, except as specified in ORS 475B.04(3)
(c) Any applicant is not the legitimate owner of the business proposed to be licensed, or other persons have an ownership interest in the business have not been disclosed to the Commission.
(d) The business proposed to be licensed is located at the same physical location or address as a premises licensed under ORS Chapter 471 or as a retail liquor agent appointed by the Commission
(e) The proposed licensed premises of a producer applicant is on the same tax lot, as another producer licensee under common ownership
(f) The proposed licensed premises of a producer applicant is on the same tax lot, as another producer licensee under diverse ownership if the Commission reasonably believes that the presence of multiple producers on the same tax lot creates a compliance risk or other risk to public health and safety
(3) The Commission may refuse to issue a license to any license applicant or refuse to renew the license of any licensee when conditions exist in relation to any person having a financial interest in the business or in the place of business which would constitute grounds for refusing to issue a license or for revocation or suspension of a license if such person were the license applicant or licensee.
(4)(a) The Commission may deny any initial or renewal application and may revoke any license if medical marijuana items are produced, processed, stored, sold or transported, to or from the same address or location of licensed business or business proposed to be licensed.
(b) The Commission will not deny an initial application under this subsection if:
(A)The applicant surrenders any registration issued by the Authority for the address or location of the business proposed to be licensed;
(B) If applicable, the applicant notifies all other growers registered by the Authority at the location or address proposed to be licensed, in a form and manner prescribed by the Commission, that the grower is no longer permitted to produce medical marijuana at the address or location proposed to be licensed and must surrender his or her registration at that address or location; and
(C) All medical marijuana activity at the location or address proposed to be licensed ceases prior to being issued an OLCC license.
(5) If the Commission denies an application because an applicant submitted false or misleading information to the Commission, the Commission may prohibit the applicant from re-applying for five years.
(6) A notice of denial must be issued in accordance with ORS 183
Withdrawal of Application
An applicant may withdraw an initial or renewal application at any time prior to the Commission acting on the application unless the Commission has determined that the applicant submitted false or misleading information in which case the Commission may refuse to accept the withdrawal and may issue a notice of proposed denial in accordance with OAR 845-025-1115