Senate bill to increase liquor license fees by 50% draws industry opposition; committee suspends 5‑day notice to hear bill

The committee considered Senate Bill 5786, which would increase statutory fees for liquor licenses, permits and endorsements by 50% across retail and non‑retail categories. Committee staff summarized fee categories and told members the bill would raise revenue an estimated $332 million over four years, with administrative costs of about $164,000 for LCB over the same period.

Senator Sanford moved to suspend the five‑day notice rule to take up the bill; the committee voice vote recorded "Aye" for the motion and the chair ruled the motion carried. Opponents from distillers, national beverage companies and hospitality representatives urged the committee to pause and study fees with stakeholders before enacting a large, across‑the‑board increase. Jim Hedrick of a craft‑distiller group and Charlie Brown of Diageo said there had been no prior stakeholdering or legislative findings; Brad Tower of the Washington Liquor Store Association noted that fees imposed on sales ultimately flow through pricing and questioned why fee increases would be used for general fund receipts rather than linked to program administration.

The Washington Hospitality Association told the committee the proposed increases would unevenly affect small restaurants relative to large grocery retailers and asked for a more equitable fee structure. Testifiers urged that the Legislature consider volumetric tax options and incorporate fee review into the broader alcohol tax study already underway. No committee passage of the bill was recorded; testimony against the measure was extensive.