Or. Admin. R. 845-005-0311 - True Name on Application; Interest in Business
(1) Definitions.
(a) "Licensee of record" means an individual
or entity who the Commission has listed on the license certificate as a license
holder for a license. There may be more than one licensee of record for the
same license.
(b) "Entity" means an
association, corporation, limited liability company, partnership, trust, or any
similar entity that has legal standing under the laws of Oregon or another
state within the United States.
(2) True name on application. An application
for a license must include as an applicant all persons who have an ownership
interest in the business as defined in this rule. Despite this requirement, the
Commission may waive the type of ownership interests specified in section (6)
of this rule.
(3) License
privileges. License privileges are available only to a licensee of record and
only for the premises designated on the license certificate
(4) Ownership Interest. Under ORS
471.313(1)(d)(H),
the Commission may refuse to issue a license if an applicant is not the owner
of the business proposed to be licensed or an undisclosed ownership interest
exists. For purposes of this rule, an "ownership interest" is indicated by the
following behaviors, benefits or obligations:
(a) Unless allowed by a waiver of the
ownership interest under (6) of this rule, any person or entity, other than an
employee, agent, or representative of the applicant or licensee acting under
the direction of the applicant or licensee, that exercises control or
responsibility over, or is entitled to exercise control or responsibility over,
the business or the premises;
(b)
Any person or entity, other than an employee, agent, or representative of the
applicant or licensee acting under the direction of the applicant or licensee,
that incurs, or is entitled to incur, debt or similar obligations on behalf of
the business;
(c) Any person or
entity, other than an employee, agent, or representative of the applicant or
licensee acting under the direction of the applicant or licensee, that enters
into, or is entitled to enter into, a contract or similar obligations on behalf
of the business;
(d) Unless allowed
by a waiver of the ownership interest under (6) of this rule, any person or
entity, other than an employee, agent, or representative of the applicant or
licensee acting under the direction of the applicant or licensee, who exercises
or is entitled to exercise at the premises any activity requiring a license
under ORS chapter 471;
(e) Unless
allowed by a waiver of the ownership interest under (6) of this rule, any
person or entity identified as a lessee, tenant, or renter (or similar term) of
the premises proposed to be licensed;
(f) Unless allowed by a waiver of the
ownership interest under (6) of this rule, any person or entity owning the real
or personal property of the premises proposed to be licensed, unless the owner
of the property has given control over the property to another party via a
lease or rental agreement or similar agreement; or
(g) When an applicant is an entity, any
person in that entity defined as an applicant or licensee under Commission
rules.
(5) Financial
Interest. Under ORS 471.757, the Commission may
require the licensee or applicant to identify the persons and entities with a
financial interest in the business. The Commission may evaluate any such person
as if the person were the actual licensee or license applicant. If that
evaluation reveals any circumstances that would support grounds for the denial,
cancellation or suspension of such a license or license application, the
Commission may deny, cancel or suspend the license of the actual licensee or
issue the license with restrictions. For purposes of this rule, a "financial
interest" exists if the performance of the business causes, or is capable of
causing, a person or entity to benefit or suffer financially. Examples of a
financial interest include, but are not limited to:
(a) A licensee;
(b) An employee or agent who receives
out-of-the-ordinary compensation. "Out-of-the-ordinary compensation" includes
both over- and under- compensation;
(c) Any person who rents or leases real
property to a licensee or applicant for use by the business;
(d) Any person who rents or leases personal
property to a licensee or applicant for use in the business for a commercially
unreasonable rate;
(e) Any person
who lends money, real property or personal property to a licensee or applicant
for use in the business;
(f) Any
person who gives money, real property or personal property to a licensee or
applicant for use in the business.
(g) A spouse or domestic partner of a
licensee, or individual with a financial interest. For purposes of this
subsection, "domestic partners" includes adults who share the same regular and
permanent address and would be financially affected by the success or failure
of the business as well as adults who qualify for a "domestic partnership" as
defined under ORS 106.310.
(h) Any person with any ownership of an
entity who is an applicant or licensee under Commission rules.
(6) Despite subsections (3) - (4)
of this rule, the Commission may waive:
(a)
The ownership interest of a non-applicant who has a right of access to a common
area shared with an applicant or licensee; however, the non-applicant does not
manage or control the sale, service, or manufacturer of alcoholic beverages in
the common area. For purposes of this rule, "common area" means an area on
private property that is adjacent to or in the immediate vicinity of an area
leased or rented by one or more tenants and it is an area that is equally
available to multiple tenants and/or the landlord for various uses.
(b) The ownership interest of a non-applicant
who manages or controls, or is responsible for managing or controlling, the
premises or aspects of the business at the premises provided the management or
control does not involve, directly or indirectly, the sale, service, or
manufacture of alcoholic beverages at the premises, or importation of alcoholic
beverages to the premises, and there is at least one other party licensed at
the premises who is listed by the Commission on the license certificate as a
license holder for a license. Examples of non-applicants who may qualify for a
waiver under this section include:
(A)
Operators selling and serving food, nonalcoholic beverages, and other
nonalcoholic items on the premises; or
(B) Operators who lease, rent, or otherwise
occupy a portion of the licensed premises in order to provide services as a
part of the business that don't involve the sale, service, or manufacture of
alcoholic beverages on the license premises.
(c) The ownership interest of a non-applicant
who holds, or will hold, its own manufacturing or wholesaling license issued
under ORS chapter 471 at the premises. For purposes of this subsection, a
brewery-public licensee is a manufacturer.
Notes
Statutory/Other Authority: ORS 471.030, 471.040 & 471.730 (1) & (5)
Statutes/Other Implemented: ORS 471.757 & 471.313
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(1) Definitions.
(a) "Licensee of record" means an individual or entity who the Commission has listed on the license certificate as a license holder for a license. There may be more than one licensee of record for the same license.
(b) "Entity" means an association, corporation, limited liability company, partnership, trust, or any similar entity that has legal standing under the laws of Oregon or another state within the United States.
(2) True name on application. An application for a license must include as an applicant all persons who have an ownership interest in the business as defined in this rule. Despite this requirement, the Commission may waive the type of ownership interests specified in section (6) of this rule.
(3) License privileges. License privileges are available only to a licensee of record and only for the premises designated on the license certificate
(4) Ownership Interest. Under ORS 471.313(1)(d)(H), the Commission may refuse to issue a license if an applicant is not the owner of the business proposed to be licensed or an undisclosed ownership interest exists. For purposes of this rule, an "ownership interest" is indicated by the following behaviors, benefits or obligations:
(a) Unless allowed by a waiver of the ownership interest under (6) of this rule, any person or entity, other than an employee, agent, or representative of the applicant or licensee acting under the direction of the applicant or licensee, that exercises control or responsibility over, or is entitled to exercise control or responsibility over, the business or the premises;
(b) Any person or entity, other than an employee, agent, or representative of the applicant or licensee acting under the direction of the applicant or licensee, that incurs, or is entitled to incur, debt or similar obligations on behalf of the business;
(c) Any person or entity, other than an employee, agent, or representative of the applicant or licensee acting under the direction of the applicant or licensee, that enters into, or is entitled to enter into, a contract or similar obligations on behalf of the business;
(d) Unless allowed by a waiver of the ownership interest under (6) of this rule, any person or entity, other than an employee, agent, or representative of the applicant or licensee acting under the direction of the applicant or licensee, who exercises or is entitled to exercise at the premises any activity requiring a license under ORS chapter 471;
(e) Unless allowed by a waiver of the ownership interest under (6) of this rule, any person or entity identified as a lessee, tenant, or renter (or similar term) of the premises proposed to be licensed;
(f) Unless allowed by a waiver of the ownership interest under (6) of this rule, any person or entity owning the real or personal property of the premises proposed to be licensed, unless the owner of the property has given control over the property to another party via a lease or rental agreement or similar agreement; or
(g) When an applicant is an entity, any person in that entity defined as an applicant or licensee under Commission rules.
(5) Financial Interest. Under ORS 471.757, the Commission may require the licensee or applicant to identify the persons and entities with a financial interest in the business. The Commission may evaluate any such person as if the person were the actual licensee or license applicant. If that evaluation reveals any circumstances that would support grounds for the denial, cancellation or suspension of such a license or license application, the Commission may deny, cancel or suspend the license of the actual licensee or issue the license with restrictions. For purposes of this rule, a "financial interest" exists if the performance of the business causes, or is capable of causing, a person or entity to benefit or suffer financially. Examples of a financial interest include, but are not limited to:
(a) A licensee;
(b) An employee or agent who receives out-of-the-ordinary compensation. "Out-of-the-ordinary compensation" includes both over- and under- compensation;
(c) Any person who rents or leases real property to a licensee or applicant for use by the business;
(d) Any person who rents or leases personal property to a licensee or applicant for use in the business for a commercially unreasonable rate;
(e) Any person who lends money, real property or personal property to a licensee or applicant for use in the business;
(f) Any person who gives money, real property or personal property to a licensee or applicant for use in the business.
(g) A spouse or domestic partner of a licensee, or individual with a financial interest. For purposes of this subsection, "domestic partners" includes adults who share the same regular and permanent address and would be financially affected by the success or failure of the business as well as adults who qualify for a "domestic partnership" as defined under ORS 106.310.
(h) Any person with any ownership of an entity who is an applicant or licensee under Commission rules.
(6) Despite subsections (3) - (4) of this rule, the Commission may waive:
(a) The ownership interest of a non-applicant who has a right of access to a common area shared with an applicant or licensee; however, the non-applicant does not manage or control the sale, service, or manufacturer of alcoholic beverages in the common area. For purposes of this rule, "common area" means an area on private property that is adjacent to or in the immediate vicinity of an area leased or rented by one or more tenants and it is an area that is equally available to multiple tenants and/or the landlord for various uses.
(b) The ownership interest of a non-applicant who manages or controls, or is responsible for managing or controlling, the premises or aspects of the business at the premises provided the management or control does not involve, directly or indirectly, the sale, service, or manufacture of alcoholic beverages at the premises, or importation of alcoholic beverages to the premises, and there is at least one other party licensed at the premises who is listed by the Commission on the license certificate as a license holder for a license. Examples of non-applicants who may qualify for a waiver under this section include:
(A) Operators selling and serving food, nonalcoholic beverages, and other nonalcoholic items on the premises; or
(B) Operators who lease, rent, or otherwise occupy a portion of the licensed premises in order to provide services as a part of the business that don't involve the sale, service, or manufacture of alcoholic beverages on the license premises.
(c) The ownership interest of a non-applicant who holds, or will hold, its own manufacturing or wholesaling license issued under ORS chapter 471 at the premises. For purposes of this subsection, a brewery-public licensee is a manufacturer.
Notes
Statutory/Other Authority: ORS 471.030, 471.040 & 471.730 (1) & (5)
Statutes/Other Implemented: ORS 471.757 & 471.313