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Committee hears bill to shift civil-defense costs for servers to retailers; questions remain about scope and insurance impact
Summary
A Feb. 10 Business Committee hearing on House Bill 1977 explored a proposal to require retailers to cover legal defense costs and judgments for servers accused of overserving. Sponsor Representative Donaghy and industry witnesses discussed intent, insurance-market strain and unresolved drafting details; no vote was held.
Representative Donaghy, the bill—o-sponsor, told the Business Committee on Feb. 10, 2026, that House Bill 19 77 would require a retailer to pay "all necessary expenses of defending the action against the server and any monetary judgment entered against the server" when a civil suit is brought over alleged sale of liquor to a person apparently under the influence.
The measure, presented in a staff briefing by Peter Klotfelter, staff to the committee, would allow a judgment creditor to seek satisfaction only from the retailer and would bar a judgment against a server from becoming a lien on the server's property. Klotfelter emphasized that the bill does not change administrative enforcement under Washington liquor and cannabis rules, including fines or permit suspensions carried out by the Liquor and Cannabis Board.
Donaghy framed the bill as a narrowly targeted protection for…
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