(1) A licensee or permittee may not allow a person to consume or to continue to consume alcoholic beverages on the licensed premises after observing that the person is visibly intoxicated.
(2) A licensee or permittee is not in violation of subsection (1) of this section if the licensee or permittee makes a good faith effort to remove any unconsumed alcoholic beverages from the person’s possession when the licensee or permittee observes that the person is visibly intoxicated.
(3) Nothing in this section applies to determining liability under ORS 471.565.
(4) Notwithstanding any other provision of law, the Oregon Liquor and Cannabis Commission shall only impose letters of reprimand for the first three violations of this section within a two-year period. For license renewal purposes, the first three violations of this section in a two-year period do not apply in determining the past record of compliance under ORS 471.313 (1)(d)(G).