Retail Licensee Briefings

Macias: Hello, I'm officer Tony Macias,

Horton: and I'm officer Kim Horton.

Macias: We're officers with the Washington State Liquor Control Board in the Enforcement Education division. And today we'd like to talk to you about some 
important rules and regulations, and then take you on what a typical liquor premises check might look like.

Horton: Hey Tony, before we get going, I'd like to just bring up a couple topics that are very important for everyone to know.

First of all, your business is subject to inspection at all times by law enforcement. Failure to allow an inspection is a violation. Also, the hours of operation for alcohol service are 6 a.m. through 2 a.m. Between those hours of 2 a.m. and 6 a.m. alcohol cannot be sold, served, consumed, removed, or delivered to your business. Shall we go inside?

Macias: Yes.

Upon entering a liquor licensed premises, one of the first things we look for is to make sure you have the required signs. For an on-premises location, the required sign you need to have is the pregnancy warning sign, the fetal alcohol syndrome, both at the entrance to the premises and in the ladies' restroom.

This is a restaurant that also has an age restriction area, so they have to have a no minors posting sign and also a no firearms sign.

When we enter a premises, one of the things we typically do is identify ourselves to the manager or staff. Today we're easily identifiable in our uniforms, but typically we might be plain clothes. One of the ways we identify ourselves is typically with a business card. Let's go say hi to the bartender.

Horton: Okay.

Macias: Hi, I'm officer Tony Macias with the Liquor Control Board

Horton: and I'm Officer Kim Horton.

Macias: One of the things we'd like to do today is conduct a routine promises check and talk to you about some common rules and regulations.

One of the first things I look for when I enter premises is check and see if you've got a class 12 mandatory alcohol server training permit.

Bartender: I do.

Macias: Thank you, do you also have a picture form of ID I can check? This required of all managers, bartenders and servers that serve alcohol. You go to our website or you find a provider that you will take the class from. Do you have employees that are under the age
of 21?

Bartender: I do.

Macias: Okay. Any employees that are 18, 19 or 20 that serve alcohol must have a class 13 permit. It's the same process to get as our class 12 permit as well.

Horton: I see that you have your master business license clearly posted on the wall as is required. It might be helpful for you to know that items such as all of your liquor
endorsements are posted on it and also shows your expiration date as well.

Macias: I'd also like to talk to you about public safety. You are responsible for all the conduct on your licensed premises.

Some the common public safety issues you might run into are over service. It is not legal for anyone who appears intoxicated to possess, consume or purchase any alcohol.
Now, appears intoxicated, that could mean prescription medication, that could be marijuana, that could be alcohol.

But once they appear intoxicated, they cannot be in possession, consume or purchase alcohol. You also cannot allow marijuana to be consumed in any place on your licensed premises.

You can't allow any disorderly conduct or any criminal conduct to be allowed on your licensed premises. Also you can't sell or serve anyone who is under the age of 21 years old.

Bartender: can we accept the paper copies of
their ID?

Horton: That's a great question. Yes, you can take paper temporary Washington driver's licenses and IDs as long as it's not expired, and you can clearly see the photo, the signature, and the date of birth.

You can also accept any ID card instruction permit or drivers license from any US state, Canadian province, US military ID
cards, merchant marine ID cards, Tribal enrollment cards from Washington State and any official passport from any nation.

Now, your business may choose to restrict this list, but you may not add additional forms of ID that I haven't mentioned already.

Since we're talking about IDs, let me talk to you a little about compliance checks. Compliance checks are a tool that law
enforcement agencies use to check for youth access violations.

We have underage investigative aides that work for us, and we'll send them into your business and they will attempt to purchase or order alcohol.

All you or your staff have to do is check the ID of anybody who is youthful in appearance, and the investigative aide will either tell you they don't have an ID or they will give you their real true vertical driver's license.

We're not trying to trick you, they are not dressed up to look overly mature and we don't hire investigative aides that are overly mature looking for their age.

If you have any questions about IDs or you could use some extra training, please don't hesitate to contact your local enforcement officer, they'd be happy to help you.

Bartender: I have a 19-year-old employee, can he come into the restricted area to do his duties?

Macias: That's an excellent question. You do have
a off-limits area for those under age 21, so no one under the age of 21 can ever be in this section of the premises unless they're an actual employee. Employees 18, 19, 20 years old can be in the licensed premises in the course of their
duties, but they can never be assigned in the actual off-limits area.

But in the course of delivering messages, refilling ice, or picking up and taking drink orders they can be in the off-limits area.

Bartender: Can we have an 18-year-old musician performing in the restricted area?

Horton: Musicians, disc jockeys, sound and lighting technicians who are 18, 19, and 20 years of age are allowed to work in an age-restricted part of your business during the course of their duties. There are some restrictions on this, so I would definitely contact your local enforcement officer for specifics if this applies to your business.

So if you do have live entertainment in your dining room such as karaoke, dancing, or if there are contests, let's say
where patrons are participating and you want to do this after 11 p.m., you either need to decide if you want to ask for
permission from the Liquor Control Board to reclassify your dining area to a 21 and over or you need to notify the Liquor Control Board at least 48 hours in advance that you would like to stop the service and consumption of alcohol in your dining room, thus making it all ages for that.

If you decide that you want to have male/female dance revues, live boxing, wrestling or contests where patrons are gonna be participating in the entertainment or if you're going to be open from the hours of 2 a.m. and 6
a.m., then you need to notify your local enforcement office at
least five days ahead of time in writing before these activities happen.

One last thing I will say about live entertainment is lewd conduct is prohibited on the licensed premises, so there should be no exposure of genitalia and there should be no sex acts simulated or otherwise happening on the licensed premises.

Macias: Now I'd like to talk to you about some miscellaneous laws that we encounter.

You cannot sell or provide alcohol for less than acquisition cost. This is commonly seen in the Happy Hour
where there might be a sign that says, "on a home run, you get a free drink." That's not allowed.

Also, you may not substitute drinks and all spiritous liquor must be served by the individual drink.

Horton: Let's talk some business operations for a moment.

So if you ever decide that you want to change the business structure, let's say you want to add an LLC member or remove one, or if you wanna move from say a sole proprietorship to corporation, these are things that have to be approved ahead of time and you need approval from the Liquor Control Board to be able to do that.

Also if you decide you want to change you trade name or make alterations to your floor plan, these items also need
prior approval.

As far as business records are concerned, you are required to keep all financial records that reflect the financial transactions and financial condition of the business for
three years.

An example of this would be where you buy you alcohol from an approved source, also on that note make sure that you are paying for your alcohol prior to or at the time of delivery. You may never accept alcohol on an extension of credit, like an "IOU."

Do you have any questions?

Bartender: Can we have beer signs in our windows?

Macias: Yes, you may have signs in your window. You may have no more than four signs facing the public view, and they can't be any larger than 1600 square inches. Do you sell kegs to go?

Bartender: We do.

Macias: Do you have a keg book I could look at?

Bartender: I do.

Macias: Anyone who purchases a keg must be over the age of 21. They have to have a valid ID and they have to fill this
out completely and have a signature. And then they have to
have this stickers affixed and attached to the keg at all times.

And speaking of alcohol to go, we wanted to remind you that alcohol can never leave the premises in an open container. Unless someone were to purchase a bottle of wine, we don't want customers to feel they have to finish the entire bottle, so it is OK to put a cork in the bottle and then go ahead and have them leave with it.

Do you have any questions for us?

Bartender: That's it.

Macias: Okay, well it was excellent meeting you.

Bartender: Thank you.

Horton: Nice meeting you.

Bartender: Nice meeting you too.

Macias: So that's what a typical premises check might look like.

Horton: We encourage you to browse our website at lcb dot wa dot gov for more information, or you can contact your local enforcement officer for more specific questions. Thank you.

Macias: Thank you.

[Macias] Hi, I'm officer Tony Macias

[Horton] and I'm officer Kim Horton.

[Macias] We're officers with the Washington State Liquor Control Board and the Enforcement Education division. Today we'd like to show you what a routine check would look like at a location with an off-premises license. Now today, we're clearly identifiable in our uniforms but this kind of check would typically take place in plain clothes.

[Horton] Tony, before we go inside, I'd like to just bring up a couple of really important items. First, your business is open to inspection at all times by law enforcement. Failure to allow an inspection would be violation. Also the hours of operation for alcohol service are 6 a.m. through 2 a.m. Now, between those hours of 2 a.m. and 6 a.m., alcohol cannot be sold, served, removed, or delivered to your business. Should we go inside?

[Macias] Yes, let's go.

[Macias] Upon entering a premises, one of the first things we look at is to make sure they have the required signs. For this location, the required sign is a fetal alcohol syndrome sign and they can either have it at the front entrance, at their cash register, or any permanent alcohol location. Let's go inside

[Horton] Okay.

[music]

[Macias] Hello

[Clerk] Hello

[Macias] I'm officer Tony Macias with the Liquor Control Board

[Clerk] Nice to meet you.

[Horton] and I'm officer Kim Horton

[Clerk] Nice to meet you.

[Horton] Nice to meet you.

[Macias] Today we're here to conduct a routine premises check, and talk to you about some important rules and regulations. One of the first things I do when I walk in is just make sure you have an actual valid business license. I see it's hanging on the wall over there, do you mind getting it so i can take a look?

[Clerk] Sure.

[Macias] Excellent, I see your license is not expired and you have all the proper endorsements. You have tobacco products retailer, grocery store, and cigarette retailer. Thank you very much.

[Horton] Since we're talking about business operations I like to bring up a few things. If you ever decide you want to change the ownership structure of your business, so let's say you want to add an LLC member or maybe delete an LLC member or maybe change from a corporation to a sole proprietorship, you do need to get prior Liquor Board approval. So you need to contact the Liquor Control Board before making any such changes. Also if you ever decide you want to change your trade name, or make an alterations to your approved floor plan or maybe even move the whole business to a new location, you also need prior board approval for that.

Record keeping is important make sure that you keep all of your financial records that clearly reflect the financial transactions and the financial condition of your business for a minimum of three years on the licensed premises.

[Macias] Now I'd like to talk to you about public safety. Public safety is one of the most important things we discuss and work on. Public safety is our common goal and you are responsible for all the activities that happen on this licensed premises. It's important to remember you are never required to make a sale to any customer. You can only make the sale if you feel comfortable with the situation. This could include over-service. If anyone appears intoxicated they can never purchase alcohol in licensed premises.

Signs of intoxication can include many things, it can be prescription medication, it could be marijuana, it could be under the influence of alcohol - but if anyone appears is showing signs of intoxication or appears intoxicated they cannot purchase the alcohol. You can never allow disorderly conduct or criminal conduct on the licensed premises. An employee or the licensee may never be intoxicated on the licensed premises, and also I'd like to spend a little time on youth access.

Minors may attempt to get alcohol in many forms and licensed premises. One of the common issues we run into is minors waiting in the parking lot and asking customers for alcohol as they enter. This is commonly known as "shoulder tapping."

It's important that you're aware of what's happening on your licensed premises and the direct area you control. It's also very important that you make sure you never sell alcohol to anyone under the age of 21 and that you're making sure you're checking their ID and it's an actual acceptable form and valid ID.

[Clerk] Can I accept a temporary paper ID, sir?

[Horton] That's a great question. Yes, you can accept Washington State paper temporary ID cards and driver's licenses as long as they're not expired and you can clearly see the date of birth, the signature, and the photo. You may also accept driver's licenses, ID cards and instruction permits from any U.S. state or Canadian province, a us military ID card, merchant marine ID cards, official passports from any nation, and Washington State Tribal enrollment cards. Your business may choose to restrict from this list, but you may not take any additional forms of ID that I haven't mentioned.

Let's talk about compliance checks. Compliance checks are a tool that law enforcement agencies like ourselves use to check for youth access violations. We hire underage investigative aides that work for us, we will send them into your business and they will attempt to purchase either tobacco or alcohol. All you or your staff have to do is check IDs of anybody who is youthful in appearance. Once you check the ID, you will clearly see that they are underage and you should refuse the sale.

If you decide that you would like any additional training for your staff as far as checking IDs, please contact your local enforcement officer and they'd be happy to help you.

[Clerk] My son is 18 years old, can he sell alcohol?

[Macias] Excellent question. Employees must be 18, 19, or 20 years old to sell alcohol, and someone over the age of 21 years old must always be on premises while they are working. Employees of any age can help customers take their groceries out to their car and that could include alcohol.

[Clerk] Can I sell kegs and growlers?

[Horton] Well, first we have to figure out if you are eligible for keg and growler sales. There are many different license types, so I encourage you to contact your local enforcement officer or a licensing representative from Olympia to determine if you're eligible for these types of services. If you are eligible for, say, keg sales, then you need to have what's called a keg book, and keg books you can get from our website, and make sure that you're checking IDs properly of anyone who is attempting to to purchase a keg. Make sure that you fill out the front page entirely and completely and then also you want to affix this sticker onto the keg before it leaves your licensed premises.

As far as growlers are concerned, if you are approved for growler sales, customers can bring in a sanitary container and you can fill it with tap beer or you can provide a container for them.

[Clerk] Can I sell spirits?

[Horton] To sell spirits, your business must be at least 10,000 square feet of fully enclosed retail space. There are a few exceptions however, if there are no other spirit retailers within your trade area, which is 20 miles, or you are a former contractor state liquor store you might have these exemptions and you might qualify to sell spirits.

[Macias] You may purchase your alcohol from a licensed manufacturer a distributor or up to 24 liters of wine from a grocery store with a wine retail reseller endorsement. You may pay for your alcohol with either check, debit card, credit card, electronic fund transfer or you may have a prepaid account, and also the distributor may not extend you credit for any of your purchases. Also, you can never sell your alcohol for below acquisition cost. The only exception to this is if you're having a closeout on the brand and you are going to discontinue it.

[Horton] Let's change topics and talk about tobacco. I see that you have your tobacco retail sign clearly posted at your point of sale. This sign simply states that you can't sell tobacco to anyone who's under the age of 18. You also are required to only purchase your tobacco products from a Washington State licensed wholesaler or distributor you need to keep those invoices on your license premises for a minimum of five years. Do you happen to have one I can look at?

Thank you, this looks great. Thank you. One of the other things that we look for when we come in for tobacco is that you have a Washington State tax stamp on your cigarettes. May I please see a couple of the cigarette packs to check for the tax stamp?

[Clerk] Yes.

[Clerk] Great, thank you.

I see that you also sell other tobacco products or OTP here in your store, and these items are things like cigars chewing tobacco and other tobacco products that are not necessarily cigarettes. If you choose to only sell those types of products you still need to have a Washington State tobacco retailer's license and you can obtain that through the Department of Revenue's Business Licensing Services.

[Clerk] Can I put beer signs in the windows of my store?

[Macias] You may have no more than four alcohol advertisement signs at your licensed premises in the view of the general public on the outside, and they can't be any larger than 1600 square inches.

[Clerk] So do I have to put alcohol in the paper bag all the time?

[Macias] Putting the alcohol in the bag is one of our most common questions. There is no law that requires you to put the alcohol in the bag, but you certainly may if you choose to.

Well that about sums up how a routine premises check. So do you have any further questions for us? Well it's great meeting you, please contact us if you have any further questions.

[Horton] Thank you.

Now we encourage you to browse our website at lcb.wa.gov for more information or you can contact your local enforcement officer for more specific questions. Thank you.

[Macias] Thank you.