The OLCC was created by an act of the Oregon Legislative Assembly in 1933, days after the repeal of prohibition, as a means of providing control over the distribution, sales and consumption of alcoholic beverages.

In 2023, it was reported that OLCC had been, for more than eight years, setting aside and diverting rare liquor that came through the system into the hands of higher managers and legislators.

Regulatory Operations also promotes compliance with marijuana and liquor laws through education and proactive programs for licensees and permittees.

In fiscal year 2010, the OLCC contributed nearly $172 million to Oregon's general fund, county and city treasuries from the sales of distilled spirits, taxes on beer and wine and other revenue.

OLCC's Public Safety Program licenses and regulates businesses in the alcohol industry such as manufacturers, wholesalers, bars, restaurants, grocery and convenience stores.

The Public Safety Program is responsible for licensing and regulating the operation of the liquor and recreational marijuana industry in Oregon.

[10] On April 27, 2006, Teresa Kaiser, the director of the commission at that time, resigned after being charged with driving with a blood alcohol content of 0.16, twice the legal limit in Oregon.

[12][13][14] Following the arrest and resignation, the OLCC board held an emergency meeting to appoint an interim acting executive director.

In 2015, OLCC introduced a 15-member advisory committee tasked with proposing the necessary administrative regulations for the recent recreational marijuana legislation, sanctioned by voters in the previous November.

[15] OLCC Executive Director Steven Marks sought representation from various sectors for the Rules Advisory Committee, which oversees the marijuana industry, law enforcement, local government, and the general public.

The aims of the committee was to ensure a balanced approach to rule recommendations in line with the voters' intent after passing Measure 9 in 2014.

[16][17]Additionally, OLCC established two permanent technical subcommittees: one for advising on licensing, compliance, and law enforcement matters, and another for traceability (from seed to sale) and the testing of recreational marijuana at laboratories accessible to the public.

[18] OLCC's executive director Steve Marks abruptly resigned in February 2023 at the request of governor Tina Kotek.

[5] In February 2023, six additional OLCC executives were accused of diverting rare whiskey from state inventories.

The governor asked that the commission install new leadership and remove the managers and executive leaders “who have taken advantage of their access and authority to benefit themselves.” [20] A system was in place to give consumers a fair chance to purchase rare liquor, however OLCC connected individuals and politicians circumvented this covertly by availing themselves to "safety stock", a reserve set aside in the event of breakage.