Blue Iguana, Inc. v. Oregon Liquor Control Commission

310 P.3d 720, 258 Or. App. 535, 2013 WL 5268978, 2013 Ore. App. LEXIS 1131
CourtCourt of Appeals of Oregon
DecidedSeptember 18, 2013
DocketOLCC09V035, OLCC09V035A, OLCC09V035B; A145868
StatusPublished
Cited by1 cases

This text of 310 P.3d 720 (Blue Iguana, Inc. v. Oregon Liquor Control Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blue Iguana, Inc. v. Oregon Liquor Control Commission, 310 P.3d 720, 258 Or. App. 535, 2013 WL 5268978, 2013 Ore. App. LEXIS 1131 (Or. Ct. App. 2013).

Opinion

SCHUMAN, P. J.

The Oregon Liquor Control Commission (OLCC) penalized petitioner, a licensee, for allowing persons who did not have legally required certification as private security professionals to act in that capacity on petitioner’s premises during an event in November 2008. At a subsequent contested case hearing, petitioner argued that the certification requirement did not apply because the event in question met all of the criteria for an exemption from the certification requirement. In rejecting that argument, OLCC ruled that one of the requirements for exemption is that it applies only at an “organized event” and the alleged offense did not occur during one. OLCC also rejected petitioner’s alternative arguments: first, that the agency could not enforce the statute in the absence of formally promulgated administrative rules defining what an “organized event” is; and second, if the agency could define “organized event” in the process of deciding contested cases, the event in question met that definition. Petitioner seeks judicial review. We conclude that the exemption applies only at organized events and that OLCC may (and did) define “organized event” without formal rulemaking. We do not reach petitioner’s argument that the event at which the offenses occurred was, in fact, an organized event, because petitioner first advanced that argument in its reply brief. We therefore affirm.

The following facts from the OLCC order are, unless otherwise noted, unchallenged and are, therefore, the facts for purposes of our judicial review. Meltebeke v. Bureau of Labor and Industries, 322 Or 132, 134, 903 P2d 351 (1995). The challenged finding is reviewed for substantial evidence, that is, we accept the agency’s finding if “the record, viewed as a whole, would permit a reasonable person to make that finding.” ORS 183.482(8)(c).

Petitioner, Blue Iguana Mexican Restaurant & Cantina, holds an OLCC license. In 2008, inspectors went to that establishment to conduct a compliance check and discovered that eight persons wearing yellow shirts marked “Security” were checking IDs and patting down patrons before allowing them to enter. The security professionals also told an OLCC inspector that their security duties included, if [538]*538necessary, breaking up fights and asking unruly patrons to leave. None of the security professionals had “Private Security Identification” cards issued by the Department of Public Safety Standards and Training (DPSST). Of the eight security professionals interviewed, seven were subsequently convicted of violating ORS 181.991(l)(b), which prohibits a person from providing “private security services as a private security professional without being certified to do so” by DPSST. Petitioner, in turn, was cited for violating OAR 845-006-0347(3) (11/07/08), which prohibits an OLCC licensee from permitting “any activity that violates a criminal statute.”1 After a contested case hearing, OLCC concluded that petitioner had violated the rule by permitting uncertified security personnel to work on petitioner’s premises; for that violation, OLCC imposed a license suspension of 74 days, with the proviso that petitioner could reduce the suspension to 22 days by paying a civil penalty of $8,580.

On judicial review, petitioner renews the arguments it made at the administrative hearing, focusing on a specific part of the hybrid statutory and regulatory scheme governing the use of security personnel at premises licensed by OLCC— in particular, on an exception to the requirement that such personnel be certified. Under that scheme, a private security professional must be certified by DPSST. ORS 181.873(l)(a). A person is a private security professional if he or she performs specified functions, including “[c]ontrolling access to premises being protected.” ORS 181.870(8)(d).2 Providing private security services as a private security professional without a license is a Class A violation. ORS 181.991(1)(b). [539]*539However, there is an exemption from the certification requirement for a “person performing crowd management, * * * including * * * a person employed for the purpose of age verification by a licensee of the Oregon Liquor Control Commission.” ORS 181.871(l)(k). (For the purpose of clarity, we will refer to that exemption as the “general crowd management exemption.”) However — and herein lies the dispute — in order to qualify for the general crowd management exemption, uncertified security personnel must also meet the following more specific requirements:

“The [general crowd management] exemption provided by [ORS 181.871] (l)(k) applies only:
“(a) If there is at least one person on-site who is certified or licensed under ORS 181.878 for every 10 or fewer uncertified persons performing [crowd management or guest services] described in subsection (l)(k) of this section;
“(b) If any enforcement action, * * * other than incidental or temporary action, is taken by or under the supervision of a person certified or licensed under ORS 181.878; and
“(c) During the time when a crowd has assembled for the purpose of attending or taking part in an organized event, including pre-event assembly, event operation hours and post-event departure activities.”

ORS 181.871(2).

OLCC’s disputed enforcement action in this case was not based directly on a violation of ORS 181.871; violations of that statute were prosecuted by DPSST. Rather, the sanction was imposed on petitioner for violating an OLCC rule, OAR 845-006-0347(3), which, as noted, prohibits an OLCC licensee from permitting “any activity that violates a criminal statute” — i.e., ORS 181.871.

The parties agree that petitioner employed uncertified security personnel for crowd management functions. They disagree about whether those personnel had to meet all of the additional requirements under ORS 181.871(2), in particular, the “organized event” requirement in subsection (2)(c); if so, whether OLCC could impose its rule prohibiting licensees from using uncertified security personnel in the [540]

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Cite This Page — Counsel Stack

Bluebook (online)
310 P.3d 720, 258 Or. App. 535, 2013 WL 5268978, 2013 Ore. App. LEXIS 1131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blue-iguana-inc-v-oregon-liquor-control-commission-orctapp-2013.