Which state agency in Oregon regulates lewd and nude entertainment? Well, to tell you the truth… none. The Oregon Supreme Court ruled nude dancing and other forms of sexually explicit entertainment as a constitutionally protected form of free expression in 2005 following State v. Ciancanelli and City of Nyssa v. Dufloth/Smith. When this ruling went into effect, the OLCC no longer had any authority to regulate nude or lewd activities in businesses that hold a liquor license. The OLCC does not have statutory authority to deny a proposed licensee based on their entertainment format. In Oregon, this form of entertainment has the same constitutional protection as religious expression and political expression. Any decision to grant or deny a liquor license must be based on OLCC’s statutory authority - and that authority is limited. The OLCC does not have the authority to: • Deny based on public sentiment – even if a large number of people oppose the business. • Override local zoning ordinanc