Certain licensees required to maintain liquor liability insurance or bond
- • rules
(1) For the purpose of providing coverage for injuries suffered by persons by reason of the conduct of intoxicated persons who were served alcoholic beverages on licensed premises while visibly intoxicated, all persons holding a license described in this section must either:
(a) Maintain liquor liability insurance of not less than $300,000; or
(b) Maintain a bond with a corporate surety authorized to transact business in this state in the amount of not less than $300,000.
(2) The Oregon Liquor Control Commission may by rule require liquor liability insurance or bond in an amount larger than the minimum amount provided for in subsection (1) of this section.
(3) The requirements of this section apply to full on-premises sales licenses, limited on-premises sales licenses and brewery-public house licenses. The requirements of this section apply to temporary sales licenses, special events winery licenses, special events grower sales privilege licenses, special events brewery-public house licenses, special events brewery licenses and special events distillery licenses if the event that is licensed is open to the public and attendance at the event is anticipated to exceed 300 individuals per day.
(4) The requirements of this section apply to winery licenses, brewery licenses and grower sales privilege licenses unless an applicant for issuance of the license or renewal of the license submits with the application for issuance or renewal of the license an affidavit that states that the licensee will not allow consumption of alcoholic beverages on the premises.
(5) All licensees subject to the requirements of this section must supply proof of compliance at the time the license is issued or renewed. The commission by rule shall determine the manner in which proof of compliance may be made under the provisions of this subsection. The commission may require a licensee to present proof of compliance with liquor liability insurance and bond requirements at any time upon request of the commission.
(6) Failure of a licensee to comply with liquor liability insurance or bond requirements imposed under this section constitutes a serious threat to public health and safety. In addition to any action available to the commission under ORS 471.313 (Grounds for refusing to issue license or for issuing restricted license) or 471.315 (Grounds for cancellation, suspension or restriction of license, requiring training or imposing civil penalty), the commission may immediately suspend or refuse renewal of a license as provided under ORS 183.430 (Hearing on refusal to renew license) (2) if the licensee fails to comply with those insurance or bond requirements.
(7) If a licensee fails to provide proof of compliance with liquor liability insurance or bond requirements imposed under this section at the time of license renewal or when requested by the commission, the failure is sufficient reason for the commission to find for purposes of ORS 183.430 (Hearing on refusal to renew license) (2) that the licensee has failed to comply with the insurance or bond requirements. [Formerly 471.218; 2009 c.140 §1; 2009 c.237 §1; 2009 c.514 §1; 2016 c.3 §3]
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