Guide to Oregon Liquor Control Commission Licensee Bond: Ensuring Compliance for On-Premises and Passenger Carrier Services


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Oregon Liquor Control Commission (OLCC) Licensee Bond: Definition and Purpose

Explanation of what an OLCC Licensee Bond is

An OLCC Licensee Bond, as mandated by the Oregon Liquor Control Commission, is a surety bond that liquor licensees in Oregon are required to have before they can operate their business legally.

This type of bond functions as a guarantee that the licensee will adhere to all state laws and regulations pertaining to the sale and distribution of alcoholic beverages in Oregon. It serves as protection for both consumers and the state against any damages or losses incurred due to non-compliance or illegal practices by licensed businesses.

Purpose of the OLCC Licensee Bond

The main purpose behind requiring an OLCC licensee bond is to ensure public safety through regulatory compliance. It ensures licensed establishments fulfill their obligations under the law – including timely payment of taxes on sales, maintaining appropriate insurance coverage, and upholding legal drinking age rules among others.

Types of OLCC Licensee Bonds

There are two primary types: Full On-Premises Licensee Bond and Passenger Carrier Licensee Bond.

Full On-Premises Licence Bond

Definition & Purpose

A Full On-Premises Licence Bond applies mainly to businesses like bars, restaurants, or clubs where alcohol consumption takes place within the premises itself.

This bond assures authorities about the license holder’s commitment to adhering strictly to regulations surrounding alcohol serving policies within the establishment’s physical location.

Who needs it?

Any business planning on selling spirits onsite for immediate consumption requires this specific type of license bond – including restaurants, nightclubs, etc., basically anywhere you’d find a fully-stocked bar available for customers’ use.

How to obtain it?

To secure a full on-premises license one must first apply with the local county clerk’s office; post-submission application will be forwarded directly to commission approval.

Passenger Carrier Licence Bond

Definition & purpose

A passenger carrier license bond is required by companies that transport passengers while providing alcohol services in transit – for example, a party bus or limousine service with onboard bar facilities.

This type of bond aims to ensure these businesses comply with specific regulations regarding alcohol consumption during passenger transit, such as limits on quantities served and proper handling procedures.

Who needs it?

Businesses offering transportation services where alcohol is provided or consumed like luxury buses, charter tours, etc., need to hold a valid passenger carrier license bond before operating legally within Oregon.

How to obtain it?

The process involves applying directly through the Oregon Liquor Control Commission’s official website.

Application Process for OLCC Licensee Bonds

The application process for both Full On-Premises and Passenger Carrier Licensee Bonds involves several key steps:

  1. Initial Application: Businesses must submit an initial application to the Oregon Liquor Control Commission, detailing their operational plans, types of services offered, and adherence strategies for state liquor laws.
  2. Documentation and Fees: Applicants are required to provide comprehensive documentation, including business licenses, detailed plans for alcohol service, and payment of applicable fees.
  3. Compliance Verification: The OLCC conducts a thorough review to ensure that the applicant’s business practices comply with Oregon’s alcohol regulations and laws.
  4. Bond Issuance: Once approved, the applicant works with a licensed bonding company to issue the required OLCC Licensee Bond. The bond amount and premium depend on various factors, including the business’s size, location, and risk assessment by the bonding company.

Maintaining Compliance and Bond Renewal

To maintain compliance and ensure the continuous validity of the OLCC Licensee Bond, businesses must:

  1. Adhere to Regulations: Continuously comply with all OLCC regulations, including responsible alcohol service and adherence to legal drinking age laws.
  2. Renewal: Both Full On-Premises and Passenger Carrier Licensee Bonds require periodic renewal. Businesses must monitor their bond status and renew before expiration to avoid penalties or license suspension.
  3. Record Keeping: Maintain accurate records of alcohol sales and services, ensuring all activities are within legal and regulatory frameworks.

Benefits of OLCC Licensee Bonds

Holding an OLCC Licensee Bond offers several benefits, including:

  1. Legal Protection: It provides a legal framework for businesses to operate within Oregon’s alcohol laws, minimizing the risk of penalties and legal issues.
  2. Consumer Trust: Establishments with a valid OLCC Licensee Bond are viewed as trustworthy and compliant, enhancing customer confidence.
  3. Business Integrity: Adherence to OLCC regulations through bonding demonstrates a commitment to responsible alcohol service and public safety.


The OLCC Licensee Bond is an essential requirement for businesses engaged in the sale and service of alcohol on-premises and passenger carriers within Oregon. Understanding the types of bonds, the application process and the importance of maintaining compliance is crucial for legal operation and public safety. By securing and upholding these bonds, businesses ensure they meet Oregon’s stringent alcohol laws, fostering a responsible and safe environment for consumers.

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