Booze Gets Byzantine: Gregoire Signs Liquor Distribution Bill

Within the past year, liquor has seen a lot of air-time in Washington's political arenas. Voters faced not one, but two alcohol privatization initiatives in last year's election, and while both bills were rejected by the public, the question of just how to modernize Washington's puritan-style liquor laws is by no means a dead topic. In fact, with Governor Gregoire signing a bill that could potentially privatize liquor distribution in the state, it's almost a certainty that the that the discussion is only going to get more interesting from here.

The bill, SB 5942, will open up the state's distribution center to lease by private companies while still keeping liquor stores and sales firmly under state control. Proponents argue that it will allow the state to raise additional revenue while still retaining union jobs, and will even allow for increased variety of liquor for consumers. Detractors criticize the bill from both ends, however - some argue that the legislature have no business privatizing anything after voters shot down I-1100 and I-1105, while others - particularly those who want increased access to liquor on nights and weekends - argue that the bill doesn't go far enough in revamping an antiquated system.

While the issues surrounding privatization are valid ones to tackle (and bear a lot of similarity to arguments heard during last year's privatization debate), the most interesting part of the bill is a clause that was tacked on by legislators and approved by Gregoire. The last-minute amendment adds two new items to the bill: it requires the state to begin soliciting bids within the next four months, and also renders the bill immune to the referendum process.

The language of the amendment - and Gregoire's decision to include it in the bill - is a calculated move to thwart bulk-goods supplier Costco, which has invested a considerable amount of time and money in attempts to completely privatize Washington's liquor system, including over $3 million on last year's failed initiative I-1100. Not one to back down, Costco has introduced a new privatization initiative this year which purportedly addresses some of the issues with I-1100: Among other things, it would address public safety issues by increasing fines and devote a larger share of profits to state revenue.

The new bill could possibly complicate Costco's chances, as requiring bids to be solicited in the next four months will allow voters to see real-life alternatives to Costco's proposal before their initiative hits the ballot in November. Meanwhile, the bill's immunity to referendums ensures that Costco will be unable to repeal SB 5942 later on through a public vote.

Of course, the new bill doesn't necessarily put Costco's Initiative down for the count - voters may still approve it at the ballot anyway. But this opening salvo from the legislature suggests that the discussion on privatization is far from over - and that we'll be hearing a lot more on this subject in the months before election day.