Washington Administrative Code › Title 314 - Liquor and Cannabis Board › Chapter 314-07 - How to Apply for and Maintain a Liquor License › Section 314-07-035 - What persons or entities have to qualify for a liquor license?

Current through Register Vol. 24-14, July 15, 2024
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:
True party of interest
Persons to be qualified
Sole proprietorship
Sole proprietor and spouse.
General partnership
All partners and spouses.
Limited partnership, limited
						liability partnership, or limited liability limited partnership
* All general partners and spouses;
* All limited partners that have more than
						10% interest in the partnership and their spouses.
Limited liability company
* All members (or persons with equivalent
						title) with more than 10% interest in the LLC and spouses. (Note: In order for
						the liquor control board to identify the persons to be qualified, we will need
						to know all parties that have an interest in the limited liability company or
						have a pending interest.)
* All managers (or persons with equivalent
						title) and their spouses.
Privately held corporation
* All corporate officers (or persons with
						equivalent title) and their spouses.
* All stockholders (or persons with
						equivalent title) and their spouses who hold more than 10% of the issued or
						outstanding stock. (Note: In order for the liquor control board to identify the
						persons to be qualified, we will need to know all parties who have been issued
						or will be issued corporate stock.)
Publicly held corporation
All corporate officers (or persons with
						equivalent title).
Multi-level ownership structures
The liquor control board will review each
						entity to determine which individuals are to qualify according to the
						guidelines in this rule.
Any entity
Any person who is in receipt of, or has the
						right to receive, more than ten percent of the gross or net sales from the
						licensed business during any full or partial calendar or fiscal year. For the
						purposes of this chapter:
* "Gross sales" includes the entire gross
						receipts from all sales and services made in, upon, or from the licensed
						business.
* "Net sales" means gross sales minus cost of
						goods sold.
(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 prebo-nus 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.
(e) A 401K, IRA, or
			 nonfamilial trust.