Excerpt from the Colorado Liquor Retailer's Guide
Chapter XIX. Inspections
The Division conducts a routine inspection program for all retail licensees.
Under this program, each year investigators of the Division visit and inspect as
many retail licensees as possible within their assigned areas of the state.
These inspections are not announced in advance; retailers and their employees
are expected to cooperate and comply even though they may be surprised by the
sudden appearance of state liquor investigators on their premises. Licensees
should therefore be prepared for an inspection: they should know what will take
place during an inspection and should be in compliance before any inspection
ever occurs.
Inspections follow a set format, and investigators have a checklist that they
utilize in their examination of a licensee’s premises. During an inspection,
licensees and their employees must allow access to any areas on the licensed
premises that an investigator wishes to examine. Investigators will inspect the
entire premises including the areas open to the public, storage areas, and any
other rooms attached to the premises. Investigators will also examine the
following: all items available for sale, liquor stock, books and records, and
refrigerators. Any areas that are locked must be opened for inspection.
Throughout an inspection, licensees should maintain a courteous and cooperative
attitude toward the investigator(s) conducting the inspection. Licensees should
provide information upon request and should not interfere with the
investigators. Generally, licensees should not question the investigators about
the need for information or access to requested items. If the investigator
indicates that the licensee is not in compliance with a particular requirement,
the licensee should definitely request an explanation. However, the licensee
should not become involved in a heated dispute with the investigator over the
meaning of the law. The licensee can always contact his attorney and/or the
Division at a later time to discuss the precise requirements of the law.
Moreover, except for intentional or serious violations (e.g., permitting
gambling, sales to minors, serving visibly intoxicated persons), licensees not
in compliance will normally be informed of violations at the end of the
inspection and given a chance to correct the problem. A re-inspection will take
place, usually within a month. At the time of the re-inspection, a licensee who
has corrected his compliance deficiencies from the initial inspection most
likely will not be cited for the original violations, assuming no new violations
are found during the re-inspection. Licensees not in compliance at the time of
re-inspection may face disciplinary actions. Of course, licensees can avoid
possible disciplinary actions and the stress of re-inspection by being in full
compliance at the time of the initial inspection. To assist the licensee in
achieving compliance, here is a brief discussion of the standard inspection
items:
1. Licensees will be checked for proper posting. This means that licensees must
post and display in a manner visible to the public the following items: state
liquor license, local liquor license, federal tax stamp from the federal Bureau
of Alcohol Tobacco and Firearms, and a Minor Warning Sign. All of these items
except the Minor Warning Sign have expiration dates. The investigator will
examine these items to insure that the licenses and federal tax stamps are
current and valid, are issued to the exact same person or entity, and are issued
for the proper location.
2. Items for sale or distribution will be checked. Retail liquor store licensees
must limit sales or distribution of items only to those permitted by regulation.
See Appendix to Chapter 6.
3. Investigators will examine the alcohol beverage stock of the licensee. The
retail liquor store licensee must have only full-strength beer on the premises;
3.2% beer is not allowed. The investigator will also check for evidence of
refills, i.e. pouring alcohol beverages into bottles. This is a violation of the
Liquor Code. Because all alcohol beverages must be purchased from licensed
sources, investigators will check for unauthorized brands and evidence of
purchases from improper sources. Beverage stock and records will be examined for
compliance with this requirement.
4. In the areas open to the public, investigators will check for alcohol
beverage service to persons under 21 years of age and to visibly intoxicated
persons. The investigators may check for compliance in these areas before they
identify themselves (i.e., in an undercover capacity). Licensees found selling
to minors or visibly intoxicated patrons will likely be subject to immediate
disciplinary action; they will not receive a warning and will not have a chance
to cure the problem before a re-inspection. Similarly, if gambling is found on
the premises, the licensee will probably be subjected to immediate disciplinary
action.
5. Books and records must be available for inspection. Investigators will
examine books and records and will ascertain whether the exact licensee, as
listed on the state liquor license, is in legal possession of the premises
through lease or deed. The licensee must also be in control of the premises. Any
failure to prevent customers from entering the premises with alcohol beverages
is a violation. Investigators will be looking for this type of activity during
their inspection.
6. Investigators will determine whether a manager for the retail liquor store
licensee, if any, has been properly registered with the Division. They will also
ascertain whether he is still employed as the manager. The trade name of the
establishment, if there is one, should be listed on the liquor license. If the
licensee is using a different trade name at the establishment, a violation will
be noted.
7. Storage of alcohol beverages within the licensed premises will be reviewed.
If alcohol beverages are stored off the licensed premises, investigators will
check for a valid warehouse storage permit for the storage area.
8. Finally, investigators will make certain that all of the items being sold by
the licensee are in compliance with the Liquor Code. For example, selling
alcohol beverages in open containers is a violation.
Licensees in compliance with the above-listed standard inspection items stand an
excellent chance of passing their inspections. Keep in mind, however, that the
investigators conducting the inspections have complete freedom to add other
items to their inspection lists. During an inspection, any observed violation of
any law, whether or not on the inspection list, may be grounds for a
disciplinary action or re-inspection.
Most of the requirements on the inspection checklist are discussed in detail in
other chapters of this book. Licensees should refer to those other chapters to
ensure a complete understanding of their compliance responsibilities.
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