Section 314-07-035. What persons or entities have to qualify for a liquor license?

Per RCW 66.24.010(1), a liquor license must be issued in the name(s) of the true party(ies) of interest.

(1) True parties of interest - For purposes of this title, "true party of interest" means:

(2) For purposes of this section, "true party of interest" does not mean:

(a) A person or entity receiving reasonable payment for rent (as determined by the board) on a fixed or percentage basis under a bona fide lease or rental obligation, unless the lessor or property manager exercises control over or participates in the management of the business.

(b) A person who receives a bonus as an employee, if: The employee is on a fixed wage or salary and the bonus is not more than twenty-five percent of the employee's prebonus annual compensation; or the bonus is based on a written incentive/bonus program that is not out of the ordinary for the services rendered.

(c) A person or entity contracting with the applicant(s) to sell the property, unless the contract holder exercises control over or participates in the management of the licensed business.

(d) A person or entity receiving payment of franchise fees on a fixed or percentage basis under a bona fide franchise agreement, unless the person or entity receiving payment of franchise fees exercises control over or participates in the management of the licensed business.

(3) Financiers - The board may conduct a financial investigation of financiers.

(4) Persons who exercise control of business - The board may conduct an investigation of any person or entity who exercises any control over the applicant's business operations.

In cases where there is an entity who is in control of the day-to-day business operation (other than the owner) because of an agreement between the owner and the operator, the operating party becomes a true party of interest. The operator must meet all the qualifications of any other true party of interest and if approved, must be the licensee. The owner may be required to be named on the license as a party of interest based on the terms of the agreement, but will not normally be required to meet all the qualifications of a true party of interest.

[Statutory Authority: RCW 66.08.030 and 66.24.010. WSR 15-11-106, § 314-07-035, filed 5/20/15, effective 6/20/15; WSR 10-10-126, § 314-07-035, filed 5/5/10, effective 6/5/10. Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.015, and 66.24.025. WSR 05-07-012, § 314-07-035, filed 3/4/05, effective 4/4/05.]

RCW 66.08.030 and 66.24.010. WSR 15-11-106, § 314-07-035, filed 5/20/15, effective 6/20/15; WSR 10-10-126, § 314-07-035, filed 5/5/10, effective 6/5/10. Statutory Authority: RCW 66.08.030, 66.24.010, 66.24.015, and 66.24.025. WSR 05-07-012, § 314-07-035, filed 3/4/05, effective 4/4/05.