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Board approves rule proposal to let liquor licensees lease premises under HB 1701

Washington State Liquor and Cannabis Board · July 1, 2026
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Summary

The board approved a CR102 filing to implement 2nd substitute House Bill 1701, allowing certain liquor licensees to lease real or personal property (including kitchen space) to other licensees; the public comment period is open through Aug. 12 with a hearing scheduled Aug. 12 at 10 a.m.

Daniel Jacobs, policy and rules coordinator, presented CR102 to implement 2nd substitute House Bill 1701, which permits liquor licensees to lease real or personal property — including portions of operating premises and kitchen space — to other liquor licensees under specified conditions.

Jacobs explained the rule package would add a new rule and amend two existing WACs to define lessor/lessee/lease, clarify what constitutes a separate space (a physical barrier), require submission and retention of lease agreements, and confirm secured liquor storage and contract kitchen compliance when kitchen space is leased. He said the filing was being made as a CR102 and a public comment period will remain open through Aug. 12, with a public hearing scheduled for Aug. 12 at 10 a.m. The board moved, seconded and approved the CR102 unanimously, 3‑0. "This new rule will also require contracts and leases to be submitted to the LCD and requires licensees that are party to leases to keep copies of them," Jacobs said.