845-025-8550 History of Lack of Institutional Control (1) The Commission may cancel, suspend, restrict or require mandatory training for any license issued under 475C.005 to 475C.525, or impose a civil penalty in lieu of or in addition to a suspension, if the commission finds or has reasonable grounds to believe there is a history of a lack of institutional control involving the operation or premises for which a license has been issued, or the employees, agents or representatives of the licensee, or the CTS account of the licensee. (2) A history of lack of institutional control: (a) Means violations of Commission statutes or rules have been observed at the premises and the licensee failed to show adequate compliance measures, education of employees, agents, or licensee representatives on those compliance measures, and prompt action upon learning of deficiencies in compliance measures; and (b) Is based on the nature, number and circumstances of the incidents, and can include incidents at the licensed premises that were not themselves the subject of violation charges. (3) Behavior that is grounds for a sanction includes but is not limited to noncompliance with requirements relating to license privileges, security, tracking, testing, transportation, packaging and labeling, as well as prohibited and dishonest conduct. (4) The Commission gives significant weight to serious incidents, such as those involving a danger to public health and safety, unlawful or dishonest conduct, or conduct indicating that licensee may be engaging in diversion of marijuana. (5) Violation of this rule is a Category I violation. A licensee may mitigate the history by showing that the problems are not serious or persistent, or by demonstrating its willingness and ability to control the problems that gave rise to the history of lack of institutional control. (6) Enforceable Compliance Plans. (a) If the Commission elects to issue a written Notice of Warning in lieu of a violation to a licensee for a history of a lack of institutional control, the Commission may require the licensee to submit a written compliance plan setting out the specific actions that the licensee will take to address the problems. (b) A draft compliance plan required under this rule must be submitted to the Commission within 30 days of the licensee receiving notice of the requirement. The Commission will provide written feedback regarding the licensee’s draft plan within 20 days of receipt. A final acceptable compliance plan must be submitted no later than 60 days from the date the licensee received initial notice of the requirement, or 10 days from the date the licensee received written feedback on their draft plan, whichever is later. The Commission will give written approval of a compliance plan as acceptable if it determines that implementation of the plan is reasonably likely to reduce or prevent the identified compliance problems. Under no circumstances will the time period between initial Commission notice of the requirement and Commission approval of a final acceptable compliance plan exceed 90 days. (c) Once a compliance plan is approved, the licensee must follow the plan. The licensee may request Commission approval to discontinue a compliance plan no sooner than one year from the approval date. The licensee may request Commission approval to modify a compliance plan no sooner than six months from the approval date. The Commission will grant the request if it finds there is no longer a significant risk at the premises of future compliance problems pertaining to the elements of the plan contained in the licensee’s request. (d) Approval of a compliance plan under this rule does not prevent the Commission from taking any other compliance action. (e) Failure to submit an acceptable compliance plan as required or to follow an approved compliance plan is a Category III violation. (f) The licensee must keep the compliance plan on the licensed premises and make the compliance plan available at any time for immediate inspection by any Commission employee or any peace officer. Failure to comply with this requirement is a Category IV violation. Statutory/Other Authority: ORS 475C.017, 475C.065, 475C.085, 475C.093 & 475C.097 Statutes/Other Implemented: 475C.265 History: OLCC 180-2022, minor correction filed 03/25/2022, effective 03/25/2022 OLCC 21-2021, adopt filed 12/30/2021, effective 01/01/2022