14B NCAC 06C .0303 TYPES OF inspections AND OBSERVATIONS
(a) Routine Outlet Checks. A routine outlet check is an informal visit with the permittee and his employees and an observation of the premises and its operations. An agent shall perform a routine outlet check on every outlet in his assigned area at least once every 12 months. He shall visit outlets with violation histories on a more frequent basis. The routine outlet check shall familiarize the agent with the permittee, his employees, and his operating practices. An agent shall use this opportunity to familiarize the permittee and his employees with Chapter 18B and ABC Commission rules. He shall observe the premises' operations and its patrons and shall take appropriate enforcement action when observing law or rule violations. He shall conduct routine outlet checks in accordance with ALE directives.
(b) Written Inspections. A written inspection is a formal, documented examination of a permittee's books, records, receipts and invoices, as well as a documented physical inspection of the premises and its operations. An agent shall complete the appropriate written inspection report, obtain the owner or operator's signature on the completed form, and leave a copy with him. The original and additional copies shall be processed in accordance with ALE directives. An agent shall conduct a written inspection of each outlet in his assigned area at least once every 12 months. He may conduct additional written inspections when he has reason to believe that discrepancies in the permittee's books, records, invoices, receipts, advertising, premises or operations may exist, or upon order of the district supervisor. He shall take appropriate enforcement action upon discovering law or ABC Commission rule violations.
(c) Outlet Surveillance. An outlet surveillance is an observation of a licensed outlet without the knowledge of the permittee or his employees. An agent shall perform outlet surveillance when he has reason to believe violations of law or ABC Commission rules are occurring and these violations would not be detected in a routine outlet check or in the course of a written inspection. An agent shall carry out surveillance as required in the performance of his duties and consistent with ALE directives. He shall make and file a written report of every outlet surveillance conducted (AL-39 if no violations or unusual discrepancies noted). He shall take appropriate enforcement action upon observing violations of Chapter 18B or ABC Board rules consistent with the purpose and intent of the surveillance.
(d) Covert Inspection. A covert inspection is an observation carried out on or about the licensed premises during which the identity and position of the agent is not disclosed or known to the permittee, his employees, and patrons. An agent shall conduct a covert inspection when he has reasons to believe a permittee, his employees, or patrons are engaged in violations of the criminal laws or ABC Commission rules and he cannot detect such violations or gather sufficient evidence thereof in any other manner. An agent shall take appropriate enforcement action upon observing violations of the criminal law or ABC Commission rules consistent with ALE rules and directives and consistent with the purpose and intent of the inspection. Any covert inspection requiring an agent to travel outside his district of assignment shall be handled administratively as an undercover operation in accordance with ALE directives and policies.
(e) Overt Inspections. An overt inspection is an outlet inspection conducted during the permittee's business hours in which the agent identifies himself to the permittee, his employees, and patrons and informs them he is conducting an inspection. An agent shall conduct overt inspections when he has knowledge of repeated violations of criminal laws or ABC Commission rules involving permittee-patron or patron-patron activity at a particular location, or when, due to repeated, documented incidents at the location, the agent has reason to believe such activity is occurring. An agent shall conduct overt inspections consistent with ALE rules and directives. Upon observing violations of the criminal law or ABC Commission rules, he shall take immediate enforcement action consistent with ALE rules and directives.
History Note: Authority G.S. 18B-500; 143B-10;
Eff. February 1, 1980;
Amended Eff. August 1, 1988; January 1, 1984; April 1, 1980;
Transferred from 14A NCAC 08H .0303 Eff. June 1, 2013.