LCB adopts rule allowing liquor licensees to lease separate premises; rule effective Oct. 3

The Washington State Liquor and Cannabis Board on Wednesday unanimously adopted a final rule (CR103) to implement 2nd substitute House Bill 1701, allowing liquor licensees to lease separate real or personal property to other liquor licensees.

Daniel Jacobs, speaking for the director’s office, told the board that the rule clarifies that a licensee may lease a physically separate space — for example, a kitchen — to another licensee while continuing to operate its own premises. "If approved, it will be filed today and the final rule language will be effective October 3," Jacobs said, summarizing the administrative timeline and prior outreach.

Jacobs described the statutory changes the rule implements (listed in the CR103 filing) and said the final language is unchanged from the CR102 because the agency received no public comments during the formal comment period and no one testified at the public hearing. He noted the rule requires licensees who lease kitchen space to secure their liquor and that leases and related agreements must be retained and, in some cases, submitted to the LCB.

Board member Ali moved to approve the CR103; a second was offered, and the chair recorded the motion passing unanimously, 3–0. The board will file the CR103 and the rule will take effect Oct. 3 as stated in the filing.