Just When You thought You Knew the OLCC Rules – New OLCC Bulletin Out

The Oregon Liquor Control Commission (OLCC) issued a Bulletin today that may have a big impact on some of your businesses.  It contains extremely important new information regarding new and very near deadlines.  The Bulletin applies to businesses with existing licenses as well as businesses who are still waiting for their applications to be reviewed.

Next Wednesday at 5:00 pm is the last opportunity for OLCC Applicants to make some types of changes to Retailer, Processor or Wholesaler applications. See below for specific changes that will be prohibited starting November 1st.

Please read the summary below very carefully, and remember, we can help you understand the impacts on you and your business.

Producer Applicants: Inactivation, New Timelines and Prohibited Application Changes

SB 218, effective June 17, 2019, directs the Commission to inactivate producer applications received after June 15, 2018 and producer applications received before that date if the applicant failed to submit an approved Land Use Compatibility Statement (LUCS) by July 8, 2019. This means:

• With the exception of a change of ownership, producer applications in these categories will not be processed by the Commission and will be inactivated.
• Applications that are inactivated will need to reapply in the future when the OLCC can accept them again.
• Inactivated applications will not be refunded the $250 application fee.

Effective June 17, 2019, producer applicants are no longer permitted to change:

• Location of an application. If a producer applicant had not notified OLCC of a new location prior to this date, OLCC will not allow the applicant to change the location of the application. If an applicant no longer desires or is not able to seek a producer license at the original location, OLCC will inactivate the application.
• Ownership of an application. A change in ownership occurs when 51% or more of the interest in the business has changed. Producer applicants that have changed ownership and had not notified the Commission of a change by this date will not be permitted to proceed with the The OLCC will inactivate the application.

Effective September 1, 2019 the following timelines became applicable to all pending producer applications:

• Applications currently assigned to an investigator or in a hold status must continue to follow all previously communicated deadlines for completing the licensing process (from application submission to license issuance). Applications that are not completed within these previously communicated deadlines will be inactivated.
• All producer applications assigned to an investigator after September 1, 2019 (including those re- assigned from a hold status) will have 60 days to complete the licensing process. The 60 day period begins when the applicant is notified of assignment to an investigator.
• If a producer applicant cannot complete the process in 60 days and has not previously been in a hold status, the OLCC will un-assign the application and place it on hold until the Commission is able to reassign it. Because of the volume of other new applications, renewal applications and change requests OLCC staff must process, there could be a significant wait time before the OLCC reassigns the application.
• Once reassigned, applicants will be limited to 60 additional days to complete and submit all required documents and be approved by the OLCC for a license. If the applicant cannot complete the process within the additional 60 days, the application will be deemed incomplete and inactivated.

Retailer, Processor, Wholesaler Applicants:  New Timelines and Prohibited Application Changes

Effective November 1, 2019, the Commission will by policy and practice apply the same timelines described above for producers to retailer, processor and wholesaler applications.¹ This means:

• Applications assigned or placed in a hold status prior to November 1, 2019 must continue to follow all previously communicated deadlines for completing the licensing process. Any application that is not completed within previously communicated deadlines and has previously been in a hold status will be inactivated.
• All retailer, processor and wholesaler applications assigned after November 1, 2019 (including those re-assigned from a hold status) will have 60 days to complete the licensing process.
• If an applicant cannot complete the process in 60 days and has not previously been in a hold status, the OLCC will un-assign the application and place it on hold until the Commission is able to reassign it; the reassignment will NOT take place until after other applications have been processed. Due to the volume of other license actions waiting to be processed, there could be a significant wait time before the OLCC reassigns the application.
• Once reassigned, applicants will be limited to 60 additional days to complete and submit their application and be approved by the OLCC for a . If the applicant cannot complete the process within the additional 60 days, the application will be deemed incomplete and inactivated.

In addition, effective November 1, 2019, OLCC will no longer allow certain changes to be made to retailer, processor or wholesaler applications:

• Change in Location. Applicants for a retailer, processor or wholesaler application will not be permitted to change the location named in their original application unless they submitted an approved LUCS for a new location to the Commission prior to November 1, 2019. Applicants that fail to submit a LUCS and cannot proceed with their original application will be deemed incomplete and the OLCC will inactivate it.
• Changing assigned applications. Applications are not processed solely based on the date & time of submission; available agency resources and the Commission’s licensing priorities are factors used to determine the assignment order. When the OLCC is ready to assign an application for investigation, the applicant will NOT be allowed to substitute or “swap” out the originally submitted application with a different application submitted at a later date. This applies to all license types.
• Change in license type. This means, for example, that an applicant for a retailer license will not be able to change their application to obtain a processor license, without submitting a new application.

After November 1, 2019, OLCC will no longer accept the type of changes to applications outlined in this Bulletin. Applicants that cannot complete the licensing process without changes will be deemed incomplete and inactivated.

New Timelines for Existing Licensees:

Producer, Processor, Laboratory, Wholesaler, and Retailer Licensees

In an effort to accelerate the pace of approvals, and hold existing licensees more accountable for maintaining their licensing requirements, effective November 1, 2019 the Commission will implement the following completion timeline requirements for renewals and change requests submitted by licensees:

• Renewal of existing licenses. Once the OLCC assigns a renewal application² for investigation, the licensee will have 60 days to complete their renewal process, including providing the investigator with any additional requested documents needed to complete an investigation. Licensees who fail to meet this timeframe will be deemed incomplete and will receive a formal Notice proposing to cancel their license.
• Change requests. Change requests submitted by licensees must be completed within 60 days of assignment. This includes: changes of location, changes of ownership, changes of business structure, changes in endorsements, and similar changes that require OLCC approval. If a licensee fails to meet this timeframe the OLCC will inactivate their change request and the licensee will need to submit a new request when they are actually ready.

Here is the link to the OLCC Bulletin:
https://www.oregon.gov/olcc/marijuana/Documents/Bulletins/Compliance_1909.pdf.
If you have any questions about the impact of this Bulletin on you, or require any advice or help on other OLCC/OHA/ODA issues, please contact us for an appointment. http://loneylawgroup.com/