Oregon Liquor Control Commission

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Oregon Liquor Control Commission
Agency overview
Formed	1933
Jurisdiction	Oregon, U.S.
Headquarters	Portland, Oregon
Agency executives	Steve Pharo, Director Cassandra SkinnerLopata, Board Chair
Website
oregon.gov/OLCC

The Oregon Liquor Control Commission (OLCC) is a government agency of the U.S. state of Oregon. The OLCC was created by an act of the Oregon Legislative Assembly in 1933, days after the repeal of prohibition, as a means of providing control over the distribution, sales and consumption of alcoholic beverages.^[1] To this end, the agency was given the authority to regulate and license those who manufacture, sell or serve alcohol. Oregon is one of 18 alcoholic beverage control states that directly control the sales of alcoholic beverages in the United States.

History

Prohibition in the United States began in 1919 with the passing of the Eighteenth Amendment. In the early 1930s, Oregon Governor Julius Meier appointed a committee, led by Dr. William S. Knox, to study Oregon's options regarding the regulation of alcoholic beverages in the state. In what came to be known as the Knox Report, the committee recommended a system similar to Canada's.

Based on the recommendations in the Knox Report, the Oregon Legislative Assembly held a special session that created the Oregon Liquor Control Commission in 1933, just days after the national repeal of prohibition. Governor Meier signed the Liquor Control Act (also known as the Knox Act) on December 15, 1933. The act gave the state exclusive rights to sell distilled spirits and fortified wine as well as the authority to license private businesses to sell beer and wine by the bottle or glass.

2006 director resignation after DUI arrest

On April 27, 2006, Teresa Kaiser, the director of the commission at that time, resigned after being charged with driving with a blood alcohol content of 0.16, twice the legal limit in Oregon.^[2] The arrest was widely reported in mass media after the incident occurred.^[3][4][5] Following the arrest and resignation, the OLCC board held an emergency meeting to appoint an interim acting executive director.^[5][2]

Programs

Today, Oregon's alcohol regulation program has two major components: Distilled Spirits, and Enforcement and Compliance.

The Distilled Spirits program centrally purchases, warehouses, and distributes distilled spirits to Oregon's 240 state-regulated liquor stores, which are operated and managed by state-appointed liquor agents who act as independent contractors.

The Enforcement and Compliance division has five regional offices—in Portland, Medford, Salem, Bend, and Eugene—that license businesses and enforce liquor laws. Also OLCC Enforcement Agents are considered peace officers under Oregon law, but they do not carry firearms.

Board

A five-member board of commissioners meets monthly to set OLCC policy and make decisions in areas such as liquor licenses, rules, contested case hearings and appointments of liquor store agents. The governor appoints and the Senate confirms these commissioners for four-year terms. Each commissioner represents a congressional district and one also represents the restaurant and hospitality industry.

Divisions

• Regulatory Operations issues liquor licenses and alcohol service permits. Licenses are required for anyone who manufactures, distributes or sells alcoholic beverages in Oregon. Service permits are issued to employees who serve alcohol in restaurants, bars, or other businesses. Regulatory Operations also promotes compliance with liquor laws through education and proactive programs for licensees and permittees. This program also focuses on enforcement efforts geared toward reducing underage drinking.
• Merchandising Operations has three divisions: Purchasing, Distribution, and Store Operations. The Merchandising Program operates the state's retail liquor business, including supplying the 244 (as of September 2010) retail liquor stores. Oregon has been partially privatized since the 1980's. Oregon retail liquor stores are privately owned by independent small business contractors. The OLCC contracts with the independent business owners to sell Oregonians the distilled beverages they want, while operating a business that is one of the top revenue producers for the state. In fiscal year 2010, the OLCC contributed nearly $172 million to Oregon’s general fund, county and city treasuries from the sales of distilled spirits, taxes on beer and wine and other revenue.
• Support Services consists of three divisions: Administration, Administrative Services, and Financial Services. The program provides support and administrative services for OLCC staff and numerous partners.

Decoy operations

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The OLCC conducts multiple underage undercover decoy alcohol stings. The OLCC uses Law Enforcement Cadets and members of Multnomah County Sheriff's Office Search and Rescue to enter stores and attempt to purchase alcohol. Decoys must provide actual ID to the teller if asked. OLCC puts decoy stings on about every two to four months.

See also

References