Board approves new liquor license fees for private clubs and nonprofit arts organizations

Senate Bill 5786, introduced in Washington on April 1, 2025, aims to amend existing liquor licensing regulations for private clubs and nonprofit arts organizations. The bill proposes several key changes, primarily focusing on the fees associated with various liquor licenses and the conditions under which private clubs can host events.

One of the main provisions of the bill is the increase in the annual fee for endorsements allowing private clubs to host events using club liquor. The fee will rise from $900 to $1,350. This endorsement permits clubs to hold invitation-only events, which cannot be open to the general public. Additionally, clubs must provide the Washington State Liquor and Cannabis Board with event details at least 72 hours in advance, including the date, time, location, and purpose of the event.

The bill also introduces a new fee structure for private club beer and wine licenses, increasing the annual fee from $180 to $270. This license allows clubs to sell beer and wine for on-premises consumption, with the option to sell bottled wine for off-premises consumption through an endorsement. However, spirits and strong beer cannot be sold for off-premises consumption.

Another significant aspect of Senate Bill 5786 is the establishment of a special nonprofit arts organization license. This license is designed for nonprofit arts organizations that present artistic or cultural performances in designated venues. The bill aims to streamline the licensing process for these organizations, potentially enhancing their ability to generate revenue through alcohol sales during events.

The introduction of this bill has sparked discussions among stakeholders. Supporters argue that the increased fees are necessary to ensure proper regulation and oversight of alcohol sales in private clubs and nonprofit organizations. Critics, however, express concerns that the higher costs may burden smaller clubs and arts organizations, limiting their ability to host events and generate income.

The economic implications of Senate Bill 5786 could be significant, particularly for nonprofit arts organizations that rely on events for funding. By adjusting the licensing fees and requirements, the bill seeks to balance regulatory oversight with the operational needs of these entities.

As the bill progresses through the legislative process, its potential impact on private clubs and nonprofit organizations will be closely monitored. If passed, Senate Bill 5786 could reshape the landscape of alcohol licensing in Washington, affecting how clubs and arts organizations operate and engage with their communities.