845-025-8700 Prohibited Interests in the Marijuana Industry (1) Definitions. For purposes of this rule: (a) “Business connections” include, but are not limited to, the following behaviors and relationships: (A) Knowingly providing anything of value to a business licensed by the Commission in return for something of value except for the exchange of commodities or services that are routinely provided to the general public under the same terms; and (B) Partnerships with a licensee and similar ventures formed for the purpose of making a profit. (b) “Employee” means any permanent, temporary or limited duration Commission employee. (c) “Financial Interest” means knowingly holding an ownership interest as a sole proprietor, partner, limited partner or stockholder, in any marijuana business. This definition excludes any investment that the investor does not control in nature, amount or timing. (d) “Household member” means all persons living as a family unit in the same dwelling as the commissioner or Commission employee. (e) “Immediate family” means the spouse, and juvenile dependent children of a commissioner or Commission employee. (f) “Knowledge” and “knowingly” mean that the person had actual knowledge of or reasonably should have known of the fact in question. (g) “Marijuana Business” means any business or individual licensed by the Commission under ORS 475C.065, 475C.085, 475C.093, 475C.097 and 475C.548, any business or individual registered by the Authority under ORS 475C.792, 475C.815 and 475C.833 and any business whose primary activity is to provide services to marijuana licensees or registrants. (h) “Position to take action or make decisions that could affect the marijuana business” means that a commissioner or employee's job duties include the discretion to take actions or make decisions that are reasonably likely to create more than a trivial cost or benefit for a licensed business in money, time or anything else of value (2) Prohibitions. (a) Financial Interests. No commissioner, employee, household member or immediate family member may hold a financial interest in a marijuana business. (b) Employment. No commissioner, employee, household member or family member may be employed by a marijuana business unless the commissioner or employee is not in a position at the Commission to take action or make decisions that could affect the business. An individual is not in a “position to take action or make decisions that could affect the marijuana business” if the Commission removes the employee from actions and decisions affecting the business. The Commission will do so where the removal would not unreasonably effect the employee's ability to perform his or her job duties. (c) Business Connections. No commissioner, employee, household member or family member may have a business connection described in this rule unless the commissioner or employee is not in a position to take action or make decisions that could affect the licensed business. (3) Reporting Requirements. (a) A commissioner or employee who has a business connection association with a marijuana business must: (A) Inform the Commission of the association as soon as the commissioner or employee has knowledge of the association, and (B) Refrain from participating in any decision that directly affects the marijuana business. (b) An applicant for a Commission job must disclose all financial interests, current employment relationships and business connections that the applicant, or any person in the applicant's household or immediate family, has with a marijuana business of which the applicant has knowledge. If the Commission determines that a prohibited financial interest, employment relationship or business connection exists, the applicant must divest the financial interest, employment relationship or business connection before he or she may be hired. (c) A Commission employee must report all financial interests, current employment relationships and business connections that the employee, or any person in the employee’s household or immediate family, has with a marijuana business to his or her supervisor as soon as the employee has knowledge of it. If the financial interest, employment relationship or business connection is prohibited, the Commission will set a reasonable time period for divestiture. If divestiture does not occur within the given time period, the Commission will terminate the employee's employment. (4) Disciplinary Action. The Commission will appropriately discipline any employee, up to and including termination, who: (a) Fails to report a prohibited financial interest, employment relationship or business connection as required under this rule, or (b) Knowingly acquires or establishes a financial interest, employment relationship or business connection prohibited under this rule. Statutory/Other Authority: ORS 475C.017 Statutes/Other Implemented: ORS 475C.017 History: OLCC 186-2022, minor correction filed 03/25/2022, effective 03/25/2022 OLCC 6-2016, f. 6-28-16, cert. ef. 6-29-16