Oregon On-Premises Liquor License Changes Coming March 31st
House Bill 4138, passed by the Oregon Legislature in 2024, introduces significant changes for businesses holding on-premises liquor licenses. Understanding these changes is crucial for maintaining compliance and avoiding potential penalties. Here’s what on-premises licensees need to know.
Quick Facts
- Starting March 31, 2025, on-premises licensees must either hold a Service Permit or designate a permit holder
- This applies to all license types allowing on-premises consumption
- New license applicants must apply for a Service Permit simultaneously with their license application
- Designated permit holders must have authority over alcohol service practices
- The CAMP system will send email notifications when designated permit holders’ permits are expiring
- Non-compliance could result in license cancellation, suspension, or restriction
Prior System vs. New Requirements for Oregon On-Premises Licensees
Prior to March 31, 2025: As an on-premises liquor licensee, you were required to complete Educación sobre el consumo de alcohol and pass the OLCC’s final exam every five years, but you weren’t required to hold an actual Service Permit. Your on-premises license effectively served as your authorization to handle alcohol.
After March 31, 2025: This option will no longer be available. On-premises licensees must now either:
- Personally obtain and maintain a Service Permit, OR
- Formally designate an individual who holds a valid Service Permit and has authority over the establishment’s alcohol service practices
Timeline for Oregon’s Liquor License Service Permit Changes
En Comisión de Licor y Cannabis de Oregón has set March 31, 2025, as the implementation date for these new requirements. License holders should prepare to ensure compliance by this deadline.
Enforcement of New Oregon On-Premises Requirements
HB 4138 adds a new ground for license cancellation, suspension, or restriction: failure to maintain a valid Service Permit or designate someone with a valid permit for establishments offering on-premises consumption. This significant change makes compliance essential for business continuity.
Who Needs a Service Permit Under Oregon’s New Requirements
This change applies to all license types that allow on-premises consumption, including:
- Full on-premises sales licenses
- Limited on-premises sales licenses
- Brewery-public house licenses
- Winery licenses
- Grower sales privilege licenses
- Special events distillery licenses
If you’re applying for a new on-premises license after March 31, 2025, you must:
- Apply for a Service Permit at the same time as your license application, OR
- Designate someone with a valid permit at the time of application
Designating a Permit Holder for Your Oregon Liquor License
Qualifications for Designated Permit Holders
According to HB 4138, the designated permit holder must “exercise control or responsibility over setting, implementing and changing the licensee’s practices for selling and serving alcoholic beverages.” This means they must have actual authority in your business operations regarding alcohol service.
Documentation Requirements for Oregon Licensees
You’ll need to formally document your designated permit holder with the OLCC. The new CAMP system will facilitate this process and help maintain records of these designations.
Managing Permit Expirations for Your On-Premises License
The CAMP system will send email notifications when your designated permit holder’s permit is approaching expiration. This feature helps ensure continuous compliance with the new requirements.
Oregon’s CAMP System and On-Premises License Management
The Cannabis and Alcohol Management Program (CAMP) is being implemented in phases:
- Phase 1 (Completed): Marijuana Licensing
- Phase 2 (Completed): Liquor Licensing, Renewals & Special Event Licensing
- Phase 3 (March 31, 2025): Alcohol Service Permits & Marijuana Worker Permits
- Phase 4 (Summer 2025): Enforcement, Compliance & Contested Cases
For on-premises licensees, the March 31 launch brings several benefits:
- Unified dashboard for managing liquor licenses and Service Permits
- Streamlined permit designation process
- Email notifications when your designated permit holder’s permit is approaching expiration
- Online payment options including credit/debit cards and ACH transfers
Important dates to remember:
- Current systems go offline: March 29, 2025, at 5 PM
- CAMP changes go live: March 31, 2025, at 9 AM
Preparing Your Oregon Liquor-Licensed Business for 2025
To ensure compliance with these new requirements:
- Evaluate Your Current Structure: Decide whether you’ll personally hold a permit or designate someone else.
- Document Your Decision: Be prepared to formally document your designated permit holder.
- Set Up Monitoring Systems: Establish procedures to ensure permits remain current.
- Get Ready for CAMP: Prepare to create your account in the new system after March 31.
This change represents a significant shift in accountability:
- Documented Responsibility: There must now be a specific individual (either the licensee or a designee) who is officially responsible for alcohol service standards.
- Formal Supervision Structure: The designated permit holder must have real authority over alcohol service practices.
- Permit Management: Licensees will need systems to track permit status, especially if designating someone else to hold the permit.
For questions about how these changes affect your on-premises license, contact [email protected].
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