845-004-0001 Prohibited Interests in the Alcoholic Beverage Industry (1) Definitions. For this rule: (a) "Business connections" include, but are not limited to, the following behaviors and relationships: (A) Knowingly providing anything of value to a manufacturer or 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 manufacturer or licensee and similar ventures formed for the purpose of making a profit. (b) "Business licensed by the Commission" means a business or any part of a business that requires an alcoholic beverage license to operate. A person is "employed by a business licensed by the Commission" if: (A) The person's job duties include involvement with any portion of the business that requires an alcoholic beverage license to operate, or (B) The person exercises management control over any portion of the business that requires an alcoholic beverage license to operate. (c) “Close association” means a relationship that does or could be reasonably perceived to influence commissioner or employee decisions. (d) “Domestic Partner” means an individual who, along with another individual of the same sex, has received a Certificate of Registered Domestic Partnership pursuant to the Oregon Family Fairness Act. (e) "Employed by the Commission" means any permanent, temporary or limited duration Commission employee. (f) "Financial Interest" means knowingly holding an ownership interest as a sole proprietor, partner, limited partner or stockholder, in any business that is licensed by the Commission or manufactures alcoholic beverages sold in Oregon. This definition excludes any investment that the investor does not control in nature, amount or timing. (g) "Household member" means all persons living as a family unit in the same dwelling as the commissioner or Commission employee. (h) "Immediate family" means the spouse or Domestic Partner, and juvenile dependent children of the commissioner or Commission employee. (i) “Knowledge” and "knowingly" mean that the person had actual knowledge of or reasonably should have known of the fact in question. (j) "Position to take action or make decisions that could affect the licensed business" means that the 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. However, an employee is not in a “position to take action or make decisions that could affect the licensed business" under ORS 471.710(2)(c) or (d) if the Commission removes the employee from actions and decisions affecting the licensed business. The Commission will do so where the removal would not unreasonably effect the employee's ability to perform his or her job duties. (2) Prohibitions. (a) The prohibitions in this section do not apply to the commissioner appointed as the food and alcoholic beverage retail industry representative under ORS 471.705(1). (b) Financial Interests. No commissioner, employee, household member or family member may hold a financial interest described in this rule. (c) Employment. No commissioner, employee, household member or family member may be employed by a business licensed by the Commission unless the commissioner or employee is not in a position to take action or make decisions that could affect the licensed business. (d) 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) The reporting requirements in this section do not apply to the commissioner appointed as the food and alcoholic beverage retail industry representative under ORS 471.705(1). (b) Close Association. A commissioner or employee who has a close association with an alcoholic beverage licensee 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 licensee. (c) 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 the alcoholic beverage industry 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. (d) 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 the alcoholic beverage industry 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 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 471 including 471.030, 471.730(1) & (5) Statutes/Other Implemented: ORS 471.710 History: OLCC 12-2013, f. 11-26-13, cert. ef. 1-1-14 OLCC 9-2008, f. 6-12-08, cert. ef. 7-1-08 OLCC 15-1989, f. 10-31-89, cert. ef. 11-1-89 OLCC 4-1988, f. & cert. ef. 7-1-88