19.02 - Business license center act.

19.02.010 - Purpose—Intent.

  1. Experience under the pilot program of the business coordination act suggests that the number of state licenses required for new businesses and the renewal of existing licenses places an undue burden on business. Studies under this act also show that the state can reduce its costs by coordinating and consolidating application forms, information, and licenses. Therefore, the legislature extends the business coordination act by establishing a business license program and license center to develop and implement the following goals and objectives:

    1. The first goal of this system is to provide a convenient, accessible, and timely one-stop system for the business community to acquire and maintain the necessary state licenses to conduct business. This system must be developed and operated in the most cost-efficient manner for the business community and state. The objectives of this goal are:

      1. To provide a service whereby information is available to the business community concerning all state licensing and regulatory requirements, and to the extent feasible, include local and federal information concerning the same regulated activities;

      2. To provide a system which enables state agencies to efficiently store, retrieve, and exchange license information with due regard to privacy statutes; to issue and renew business licenses where such licenses are appropriate; and to provide appropriate support services for this objective;

      3. To provide at designated locations one consolidated application form to be completed by any given applicant; and

      4. To provide a statewide system of common business identification.

    2. The second goal of this system is to aid business and the growth of business in Washington state by instituting a business license system that reduces the paperwork burden on business, and promote the elimination of obsolete and duplicative licensing requirements by consolidating existing licenses and applications.

  2. It is the intent of the legislature that the authority for determining if a requested license is issued remains with the agency legally authorized to issue the license.

  3. It is the further intent of the legislature that those licenses which no longer serve a useful purpose in regulating certain business activities should be eliminated.

[ 2013 c 144 § 15; 1982 c 182 § 1; 1977 ex.s. c 319 § 1; ]

19.02.020 - Definitions.

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

  1. "Business license" means the single document designed for public display issued by the business licensing service, which certifies state agency or local government license approval and which incorporates the endorsements for individual licenses included in the business licensing system, which the state or local government requires for any person subject to this chapter.

  2. "Business license application" means a document incorporating pertinent data from existing applications for licenses covered under this chapter.

  3. "Business licensing service" means the business registration and licensing service established by this chapter and located in and under the administrative control of the department of revenue.

  4. "Department" means the department of revenue.

  5. "Director" means the director of the department.

  6. "License" means the whole or part of any agency or local government permit, license, certificate, approval, registration, charter, or any form or permission required by law, including agency rule, to engage in any activity.

  7. "License information packet" means a collection of information about licensing requirements and application procedures custom-assembled for each request.

  8. "Participating local government" means a municipal corporation or political subdivision that participates in the business licensing system established by this chapter.

  9. "Person" means any individual, sole proprietorship, partnership, association, cooperative, corporation, nonprofit organization, state or local government agency, and any other organization required to register with the state or a participating local government to do business in the state or the participating local government and to obtain one or more licenses from the state or any of its agencies or the participating local government.

  10. "Regulatory" means all licensing and other governmental or statutory requirements pertaining to business or professional activities.

  11. "Regulatory agency" means any state agency, board, commission, division, or local government that regulates one or more professions, occupations, industries, businesses, or activities.

  12. "Renewal application" means a document used to collect pertinent data for renewal of licenses covered under this chapter.

  13. "System" or "business licensing system" means the procedure by which business licenses are issued and renewed, license and regulatory information is collected and disseminated with due regard to privacy statutes, and account data is exchanged by the agencies and participating local governments.

[ 2013 c 144 § 16; 2011 c 298 § 4; 1993 c 142 § 3; 1992 c 107 § 1; 1982 c 182 § 2; 1979 c 158 § 75; 1977 ex.s. c 319 § 2; ]

19.02.030 - Business licensing service—Duties—Rules.

  1. There is located within the department a business licensing service.

  2. The duties of the business licensing service include:

    1. Developing and administering a computerized one-stop business licensing system capable of storing, retrieving, and exchanging license information with due regard to privacy statutes, as well as issuing and renewing business licenses in an efficient manner;

    2. Providing a license information service detailing requirements to establish or engage in business in this state;

    3. Providing for staggered business license renewal dates;

    4. Identifying types of licenses appropriate for inclusion in the business licensing system;

    5. Recommending in reports to the governor and the legislature the elimination, consolidation, or other modification of duplicative, ineffective, or inefficient licensing or inspection requirements; and

    6. Incorporating licenses into the business licensing system. Both the regulatory agency legally authorized to issue the license and the department must agree that the license will be issued through the *master license system in order for the license to be incorporated.

  3. The department may adopt under chapter 34.05 RCW such rules as may be necessary to effectuate the purposes of this chapter.

[ 2013 c 144 § 17; 2013 c 111 § 3; 2011 c 298 § 5; 1999 c 240 § 5; 1993 c 142 § 4; 1982 c 182 § 3; 1979 c 158 § 76; 1977 ex.s. c 319 § 3; ]

19.02.035 - Business licensing service to compile and distribute information—Scope.

  1. The business licensing service must compile information regarding the regulatory programs associated with each of the licenses obtainable under the business licensing system. This information must include, at a minimum, a listing of the statutes and administrative rules requiring the licenses and pertaining to the regulatory programs that are directly related to the licensure. For example, for pesticide dealers' licenses, the information must include the statutes and rules requiring licensing as well as those pertaining to the subject of registering or distributing pesticides.

  2. The business licensing service must provide information governed by this section to any person requesting it. Materials used by the business licensing service to describe its services must indicate that this information is available upon request.

[ 2013 c 144 § 18; 1982 c 182 § 4; ]

19.02.050 - Participation of state agencies.

Each of the following agencies must fully participate in the implementation of this chapter:

  1. Department of agriculture;

  2. Secretary of state;

  3. Department of social and health services;

  4. Department of revenue;

  5. Department of fish and wildlife;

  6. Employment security department;

  7. Department of labor and industries;

  8. Liquor and cannabis board;

  9. Department of health;

  10. Department of licensing;

  11. Utilities and transportation commission;

  12. Board of accountancy;

  13. Department of archaeology and historic preservation;

  14. Department of children, youth, and families;

  15. Department of ecology;

  16. Department of financial institutions;

  17. Department of transportation;

  18. Gambling commission;

  19. Horse racing commission;

  20. Office of the insurance commissioner;

  21. State lottery;

  22. Student achievement council;

  23. Washington state patrol;

  24. Workforce training and education coordinating board; and

  25. Other agencies as determined by the governor.

[ 2018 c 58 § 33; 2013 c 111 § 1; 2011 c 298 § 6; 1997 c 391 § 11; 1994 c 264 § 8; 1989 1st ex.s. c 9 § 317; 1985 c 466 § 38; 1979 c 158 § 78; 1977 ex.s. c 319 § 5; ]

19.02.055 - Agency duties—Information—Certification.

  1. [Empty]

    1. Each agency required to fully participate in the implementation of this chapter under RCW 19.02.050 must provide the department with the name of the agency's coordinator for the purposes of implementing the requirements of this section. Using a format designated by the department, each agency must provide the department with the following information:

      1. A listing of each business license issued by the agency;

      2. A description of the persons and specific activities for which the license is required;

      3. The time period for which the license is issued and any issuance, renewal, or reissuance requirements; and

      4. Other information the department determines necessary to implement this section, including links to the licensing information, application, and instructions on the agency's website, if available.

    2. An agency that issues licenses in accordance with (i) national or federal mandates, requirements, or standards; or (ii) educational standards and an examination, may alternatively comply with this chapter by providing the department with a link to its licensing website, summary information about the licensing requirements or standards in a format or formats designated by the department, and a designated agency contact.

  2. In addition to the requirements in subsection (1) of this section, each agency, by November 1st of each year, beginning November 1, 2013, must provide the department with certification on a form designated by the department that all business licensing information submitted by the agency is complete and up-to-date. If an agency has not submitted all the business licensing information required under this section, the agency must instead submit a progress report and explanation to the department.

  3. The department must compile the information submitted by each agency, and submit an aggregate report to the governor and the economic development committees of the legislature by January 1st of each year, beginning January 1, 2014.

[ 2013 c 111 § 2; ]

19.02.070 - Issuance of licenses—Scope—Business license application and fees—Action by regulatory agency, when—Agencies provided information.

  1. Any person requiring licenses that have been incorporated into the system must submit a business license application to the department requesting the issuance of the licenses. The business license application form must contain in consolidated form information necessary for the issuance of the licenses.

  2. The applicant must include with the application the sum of all fees and deposits required for the requested individual license endorsements as well as the handling fee established by the department under the authority of RCW 19.02.075.

  3. Irrespective of any authority delegated to the department to implement the provisions of this chapter, the authority for approving issuance and renewal of any requested license that requires a prelicensing or renewal investigation, inspection, testing, or other judgmental review by the regulatory agency otherwise legally authorized to issue the license must remain with that agency. The business licensing service has the authority to issue those licenses for which proper fee payment and a completed application form have been received and for which no prelicensing or renewal approval action is required by the regulatory agency.

  4. Upon receipt of the application and proper fee payment for any license for which issuance is subject to regulatory agency action under subsection (3) of this section, the department must immediately notify the regulatory agency with authority to approve issuance or renewal of the license requested by the applicant. Each regulatory agency must advise the department within a reasonable time after receiving the notice: (a) That the agency approves the issuance of the requested license and will advise the applicant of any specific conditions required for issuing the license; (b) that the agency denies the issuance of the license and gives the applicant reasons for the denial; or (c) that the application is pending.

  5. The department must issue a business license endorsed for all the approved licenses to the applicant and advise the applicant of the status of other requested licenses. It is the responsibility of the applicant to contest the decision regarding conditions imposed or licenses denied through the normal process established by statute or by the regulatory agency with the authority for approving issuance of the license.

  6. Regulatory agencies must be provided information from the business license application for their licensing and regulatory functions.

[ 2013 c 144 § 19; 2011 c 298 § 7; 1990 c 264 § 1; 1982 c 182 § 6; 1979 c 158 § 79; 1977 ex.s. c 319 § 7; ]

19.02.075 - Business license application handling and renewal fees—Department review of the business license account balance.

  1. [Empty]

    1. Except as provided in (b) of this subsection, the department must collect a handling fee on each business license application and each renewal application filing. The department must set the amount of the handling fees by rule, as authorized by RCW 19.02.030. The handling fees may not exceed ninety dollars for each business license application filed by any person to open or reopen a business, ten dollars for each business license renewal application filing, and nineteen dollars for each business license application filed for any other purpose. Handling fees collected under this section must be deposited in the business license account created under RCW 19.02.210.

    2. No handling fee is collected on a business license application filed by an existing business for the following purposes:

      1. To open an additional location; or

      2. To obtain a nonresident city endorsement.

  2. The department may increase all handling fees within the limits provided in this section for the purposes of defraying the department's costs associated with the administration of this chapter, including making improvements in the business licensing service program, such as improvements in technology and customer services, expanded access, and infrastructure.

  3. Annually, by the last day of September, beginning September 30, 2023, the department must review the business license account balance at the end of the previous fiscal year. If the balance in the account exceeds one million dollars or the department projects that the balance in the business license account will exceed one million dollars at the end of the current fiscal year, the department must reduce one or more of the handling fees authorized in subsection (1) of this section. Handling fees must be reduced under this subsection (3) to the extent the department determines necessary to result in a balance in the business license account of no more than one million dollars at the end of the next fiscal year as projected by the department. This subsection (3) does not require the department to reduce handling fees more than once in any fiscal year.

  4. In increasing or decreasing any fee under this section, the department may round the adjusted fee to the nearest whole dollar that does not exceed the dollar limits in subsection (1) of this section.

[ 2020 c 164 § 1; 2013 c 144 § 20; 2011 c 298 § 8; 1995 c 403 § 1007; 1992 c 107 § 2; 1990 c 264 § 2; ]

19.02.080 - Licensing fees—Disposition of.

All fees collected under the system must be deposited with the state treasurer. Upon issuance or renewal of the business license or supplemental licenses, the department must distribute the fees, except for fees covered under RCW 19.02.210 and for fees covered under RCW 19.80.075, to the appropriate accounts under the applicable statutes for those agencies' licenses.

[ 2013 c 144 § 21; 1992 c 107 § 3; 1982 c 182 § 7; ]

19.02.085 - Licensing fees—Business license delinquency fee—Rate—Disposition.

  1. To encourage timely renewal by applicants, a business license delinquency fee is imposed on licensees who fail to renew by the business license expiration date. The business license delinquency fee must be the lesser of one hundred fifty dollars or fifty percent of a base comprised of the licensee's renewal fee minus corporate licensing taxes, corporation annual report fee, and any interest fees or penalties charged for late taxes or corporate renewals. The business license delinquency fee must be added to the renewal fee and paid by the licensee before a business license is renewed. The delinquency fee must be deposited in the business license account.

  2. The department must waive or cancel the business license delinquency fee imposed in subsection (1) of this section only if the department determines that the licensee failed to renew a license by the business license expiration date due to an undisputable error or failure by the department. For purposes of this subsection, an error or failure is undisputable if the department is satisfied, beyond any doubt, that the error or failure occurred.

[ 2020 c 139 § 3; 2013 c 144 § 22; 1992 c 107 § 5; 1989 c 170 § 1; 1982 c 182 § 9; ]

19.02.090 - Business license—Expiration date—Prorated fees—Conditions of renewal.

  1. The department must assign an expiration date for each business license. All renewable licenses endorsed on that business license must expire on that date. License fees must be prorated to accommodate the staggering of expiration dates.

  2. All renewable licenses endorsed on a business license must be renewed by the department under conditions originally imposed unless a regulatory agency advises the department of conditions or denials to be imposed before the endorsement is renewed.

[ 2013 c 144 § 23; 1982 c 182 § 8; ]

19.02.100 - Business license—Issuance or renewal—Denial.

  1. The department may refuse to issue or renew a business license to any person if:

    1. The person does not have a valid tax registration, if required by a regulatory agency;

    2. The person is a corporation delinquent in fees or penalties owing to the secretary of state or is not validly registered under Title 23B RCW, chapter 18.100 RCW, Title 24 RCW, or any other statute now or hereafter adopted which gives corporate or business licensing responsibilities to the secretary of state if the person is required to be so registered and the regulatory agency having the authority to approve the issuance or renewal of the license requires, as a condition of such approval, that the person be so registered or not delinquent in fees or penalties owing to the secretary of state; or

    3. The person has not submitted the sum of all fees and deposits required for the requested individual license endorsements, any outstanding business license delinquency fee, or other fees and penalties to be collected through the system.

  2. Nothing in this section prevents registration by the state of a business for taxation purposes, or an employer for the purpose of paying an employee of that employer industrial insurance or unemployment insurance benefits.

[ 2013 c 144 § 24; 2011 c 298 § 9; 1997 c 58 § 865; 1991 c 72 § 8; 1982 c 182 § 10; ]

19.02.110 - Business license—System to include additional licenses.

  1. In addition to the licenses processed under the business licensing system prior to April 1, 1982, on July 1, 1982, use of the business licensing system is expanded as provided by this section.

  2. Applications for the following must be filed with the business licensing service and must be processed, and renewals must be issued, under the business licensing system:

    1. Nursery dealer's licenses required by chapter 15.13 RCW;

    2. Seed dealer's licenses required by chapter 15.49 RCW;

    3. Pesticide dealer's licenses required by chapter 15.58 RCW;

    4. Shopkeeper's licenses required by chapter 18.64 RCW;

    5. Egg dealer's licenses required by chapter 69.25 RCW; and

    6. Cannabis-infused edible endorsements required by chapter 69.07 RCW.

19.02.115 - Licensing information—Authorized disclosure—Penalty.

  1. The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

    1. "Disclose" means to make known to any person in any manner licensing information.

    2. "Licensing information" means any information created or obtained by the department in the administration of this chapter and chapters 19.80 and 59.30 RCW, which information relates to any person who: (i) Has applied for or has been issued a license or trade name; or (ii) has been issued an assessment or delinquency fee. Licensing information includes initial and renewal business license applications, and business licenses.

    3. "Person" has the same meaning as in RCW 82.04.030 and also includes the state and the state's departments and institutions.

    4. "State agency" means every Washington state office, department, division, bureau, board, commission, or other state agency.

  2. Licensing information is confidential and privileged, and except as authorized by this section, neither the department nor any other person may disclose any licensing information. Nothing in this chapter requires any person possessing licensing information made confidential and privileged by this section to delete information from such information so as to permit its disclosure.

  3. This section does not prohibit the department of revenue, or any other person receiving licensing information from the department under this subsection, from:

    1. Disclosing licensing information in a civil or criminal judicial proceeding or an administrative proceeding:

      1. In which the person about whom such licensing information is sought and the department, another state agency, or a local government are adverse parties in the proceeding; or

      2. Involving a dispute arising out of the department's administration of chapter 19.80 or 59.30 RCW, or this chapter if the licensing information relates to a party in the proceeding;

    2. Disclosing, subject to such requirements and conditions as the director prescribes by rules adopted pursuant to chapter 34.05 RCW, such licensing information regarding a license applicant or license holder to such license applicant or license holder or to such person or persons as that license applicant or license holder may designate in a request for, or consent to, such disclosure, or to any other person, at the license applicant's or license holder's request, to the extent necessary to comply with a request for information or assistance made by the license applicant or license holder to such other person. However, licensing information not received from the license applicant or holder must not be so disclosed if the director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the license applicant, license holder, or another person, or that such disclosure would identify a confidential informant, or that such disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies, which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the license applicant or license holder by the order of any court;

    3. Publishing statistics so classified as to prevent the identification of particular licensing information;

    4. Disclosing licensing information for official purposes only, to the governor or attorney general, or to any state agency, or to any committee or subcommittee of the legislature dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions, or licensing;

    5. Permitting the department's records to be audited and examined by the proper state officer, his or her agents and employees;

    6. Disclosing any licensing information to a peace officer as defined in RCW 9A.04.110 or county prosecuting attorney, for official purposes. The disclosure may be made only in response to a search warrant, subpoena, or other court order, unless the disclosure is for the purpose of criminal tax or license enforcement. A peace officer or county prosecuting attorney who receives the licensing information may disclose that licensing information only for use in the investigation and a related court proceeding, or in the court proceeding for which the licensing information originally was sought;

    7. Disclosing, in a manner that is not associated with other licensing information, the name of a license applicant or license holder, entity type, registered trade name, business address, mailing address, unified business identifier number, list of licenses issued to a person through the business licensing system established in this chapter and their issuance and expiration dates, and the dates of opening of a business. This subsection may not be construed as giving authority to the department to give, sell, or provide access to any list of persons for any commercial purpose;

    8. Disclosing licensing information that is also maintained by another Washington state or local governmental agency as a public record available for inspection and copying under the provisions of chapter 42.56 RCW or is a document maintained by a court of record and is not otherwise prohibited from disclosure;

    9. Disclosing any licensing information when the disclosure is specifically authorized under any other section of the Revised Code of Washington;

    10. Disclosing licensing information to the proper officer of the licensing or tax department of any city, town, or county of this state, for official purposes. If the licensing information does not relate to a license issued by the city, town, or county requesting the licensing information, disclosure may be made only if the laws of the requesting city, town, or county grants substantially similar privileges to the proper officers of this state; or

    11. Disclosing licensing information to the federal government for official purposes.

  4. Notwithstanding anything to the contrary in this section, a state agency or local government agency may disclose licensing information relating to a license issued on its behalf by the department pursuant to this chapter if the disclosure is authorized by another statute, local law, or administrative rule.

  5. The department, any other state agency, or local government may refuse to disclose licensing information that is otherwise disclosable under subsection (3) of this section if such disclosure would violate federal law or any information sharing agreement between the state or local government and federal government.

  6. Any person acquiring knowledge of any licensing information in the course of his or her employment with the department and any person acquiring knowledge of any licensing information as provided under subsection (3)(d), (e), (f), (j), or (k) of this section, who discloses any such licensing information to another person not entitled to knowledge of such licensing information under the provisions of this section, is guilty of a misdemeanor. If the person guilty of such violation is an officer or employee of the state, such person must forfeit such office or employment and is incapable of holding any public office or employment in this state for a period of two years thereafter.

[ 2017 c 323 § 701; 2013 c 144 § 26; 2011 c 298 § 12; ]

19.02.210 - Business license account.

The business license account is created in the state treasury. Unless otherwise indicated in RCW 19.02.075, all receipts from handling and business license delinquency fees must be deposited into the account. Moneys in the account may be spent only after appropriation beginning in fiscal year 1993. Expenditures from the account may be used only to administer the business licensing service program. During the 2015-2017 fiscal biennium, moneys from the business license account may be used for operations of the department of revenue.

[ 2016 sp.s. c 36 § 916; 2013 c 144 § 27; 1992 c 107 § 4; ]

19.02.300 - Contract to issue conditional federal employer identification numbers, credentials, and documents—Issuance in conjunction with license applications.

  1. The director may contract with the federal internal revenue service, or other appropriate federal agency, to issue conditional federal employer identification numbers, or other federal credentials or documents, at specified offices and locations of the agency in conjunction with any application for state licenses under this chapter.

  2. To the extent permitted by any contract entered under subsection (1) of this section, the department may contract, under chapter 39.34 RCW, with any agency of state or local government which is participating in the master licensing program to issue conditional federal employer identification numbers, or other federal credentials or documents, in conjunction with applications for state licenses under this chapter.

[ 1997 c 51 § 2; ]

19.02.310 - Performance-based grant program.

  1. Subject to the availability of amounts appropriated for this specific purpose, the department may administer a performance-based grant program that provides funding assistance to public agencies that issue business licenses and that wish to join with the department's business licensing service.

  2. The department may determine among interested grant applicants the order and the amount of the grant. In making grant determinations, consideration must be given, but not limited to, the following criteria: Readiness of the public agency to participate; the number of renewable licenses; and the reduced regulatory impact to businesses subject to licensure relative to the overall investment required by the department.

  3. The department must invite and encourage participation by all Washington city and county governments having interests or responsibilities relating to business licensing.

  4. The total amount of grants provided under this section may not exceed seven hundred fifty thousand dollars in any one fiscal year.

  5. The source of funds for this grant program is the business license account.

[ 2013 c 144 § 28; 2005 c 201 § 1; ]

19.02.320 - Employment of minors.

A person seeking a work permit for the employment of minors under RCW 49.12.121 is not required to complete an entirely new *master application if there are no changes to any other information submitted on the most recent *master application. The person need only complete the parts of a new *master application that identify the employer seeking the minor work permit, including address and contact information, and that indicate the employer plans to employ one or more minors, the duties to be performed by minors, and the estimated number of hours to be worked by minors.

[ 2013 c 156 § 1; ]

19.02.800 - Business license system—Certain business or professional activity licenses exempt.

Except as provided in RCW 43.07.200, the provisions of this chapter regarding the processing of license applications and renewals under the business licensing system do not apply to those business or professional activities that are licensed or regulated under chapter 31.04, 31.12, or 31.13 RCW or under Title *30, 32, 33, or 48 RCW.

[ 2013 c 144 § 29; 2011 c 298 § 10; 2000 c 171 § 44; 1982 c 182 § 17; ]

19.02.890 - Short title.

This chapter may be known and cited as the business licensing service act.

[ 2013 c 144 § 30; 1982 c 182 § 18; ]

19.02.920 - Construction.

The rule of strict construction shall have no application to this chapter and it shall be liberally construed in order to carry out its purposes.

[ 1982 c 182 § 16; ]


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