Or. Admin. Code § 141-082-0300

Current through Register Vol. 63, No. 12, December 1, 2024

Section 141-082-0300 - Subleasing and Assignment of Leases and Public Facility Licenses

(1) Subleasing

(a) The holder of a lease may not sublease any portion of the authorized area without the prior written consent of the Department, unless subleasing is specifically permitted under the lease or by these rules. The Department may terminate a lease where any portion of the authorized area has been sublet without the Department's written consent.

(b) Notwithstanding any provisions in the lease to the contrary, the holder of a lease shall comply with the process set forth below in subleasing any portion of an authorized area where Department's consent is required by the lease or by these rules. In order to sublease any portion of an authorized area where the Department's consent is required, the holder must submit an application to the Department, on a form provided by the Department, together with a copy of the proposed sublease for review and approval and a non-refundable application fee of $750 payable to the Department. The application, proposed sublease, and application fee must be submitted to the Department no less than 60 calendar days prior to the date of the proposed subletting.

(c) The holder of a lease may grant a sublease to another person without prior consent of the Department when:

(A) The lease specifically authorizes subleasing without the Department's prior written consent, or

(B) The sublease authorizes use of less than the entire authorized area and the use allowed under the sublease is included in the authorized use of the lease (for example, the rental of boat slips).

(2) Assignment of a Lease:

(a) The holder of a lease shall not assign the lease without the prior written consent of the Department, unless assignment without the Department's consent is specifically permitted under the lease or by these rules.

(b) Notwithstanding any provisions in the lease to the contrary, the holder of a lease shall comply with the process set forth below in assigning the lease where the Department's consent to assignment is required by the lease or by these rules. In order to assign a lease where the Department's consent is required by the lease or by these rules, the holder of a lease must submit an application to the Department, on a form provided by the Department, together with a non-refundable application fee of $750 payable to the Department. The application and application fee must be submitted to the Department no less than 60 calendar days prior to the date of the proposed assignment.

(c) The Department may reject an application for assignment of a lease if the Department determines, in its sole discretion, that:

(A) The proposed assignee's financial status or past business/management practices or experience indicates that they may not be able to fully meet the terms and conditions of a lease;

(B) The proposed assignee is in default on any other authorization granted to them by the Department.

(d) If the application for assignment is approved by the Department, the Department shall prepare an assignment form for the signature of the lessee, the proposed assignee, and the Department. The assignment shall be effective on the date of signature by all parties.

(e) As part of the consideration for the Department's consent to the assignment, the Department shall have the right to require amendment to the terms and conditions of the lease prior to the assignment.

(f) Lessee shall remain liable for the performance of all obligations under the lease following assignment, unless the Department consents, in its sole discretion and in writing, to release lessee from liability.

(g) To assign a lease to a spouse or child on the death of the holder, the spouse or child must submit an application to the Department, on a form provided by the Department. There is no application fee associated with the assignment of a lease to the holder's spouse or child on the death of the holder.

(3) Assignment of a Public Facility License

(a) The holder of a public facility license shall not assign the public facility license without the prior written consent of the Department, unless assignment without the Department's consent is specifically permitted under the public facility license or by these rules.

(b) In order to assign a public facility license where Department's consent is required by the public facility license or by these rules, the holder of a public facility license must submit an application to the Department, on a form provided by the Department.

(c) There is no application fee required for an assignment of a public facility license to another public agency.

(d) If the application for assignment is approved by the Department, the Department shall prepare an assignment form for the signature of the licensee, the proposed assignee, and the Department. The assignment shall be effective on the date of signature by all parties.

(e) As part of the consideration for the Department's consent to the assignment, the Department shall have the right to require amendment to the terms and conditions of the license prior to the assignment.

(f) Licensee shall remain liable for the performance of all obligations under the license following assignment, unless the Department consents, in its sole discretion and in writing, to release licensee from liability.

Or. Admin. Code § 141-082-0300

DSL 5-2012, f. 10-16-12, cert. ef. 1-1-13; DSL 5-2016, f. 11-3-16, cert. ef. 1/1/2017

Stat. Auth.: ORS 183, 273, 274

Stats. Implemented: ORS 274