Washington Senate bill proposes 50% increase in liquor license application fees

In a recent meeting of the Senate Labor & Commerce Committee, lawmakers discussed Senate Bill 5786, which proposes a significant increase in liquor license fees. The bill aims to raise fees for both retail and non-retail liquor licenses, permits, and endorsements by 50%. This adjustment is seen as a necessary response to inflation, as many of the existing fees have not been updated since the 1980s or even earlier.

Marlon Ioannis, committee staff, presented the fiscal implications of the bill, indicating that it could generate approximately $332 million in revenue over the next four years, with costs estimated at $164,000. Senator Sanford, the bill's prime sponsor, acknowledged stakeholder feedback suggesting a more nuanced approach to fee increases, indicating potential amendments to address these concerns.

However, the proposal has faced significant opposition from various stakeholders, including representatives from the craft distilling industry and larger corporations like Diageo. Testimonies highlighted a lack of prior consultation with affected parties and raised concerns about the fairness of the fee increases. For instance, local restaurants could see their fees rise by as much as $1,000, while larger grocery chains might only face increases of $50 to $100. This disparity has prompted calls for a more equitable fee structure that considers the financial realities of smaller businesses.

Additionally, the committee reviewed Substitute House Bill 1066, which focuses on the regulation of substances such as liquor and cannabis. This bill mandates the Liquor Control Board (LCB) to publish compliance data and other relevant information on its website, aiming to enhance transparency and public access to important market data. Stakeholders, including the Cannabis Alliance, expressed support for the bill but emphasized the need for a comprehensive approach that includes market data alongside prevention-focused content.

As discussions continue, the committee will need to balance the need for increased revenue with the economic pressures faced by local businesses. The outcome of these bills could have lasting implications for the state's liquor licensing framework and the broader hospitality industry. Further amendments and stakeholder engagement will be crucial as the legislative process moves forward.