SB 5902

SENATE BILL REPORT
SB 5902

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Passed Senate, March 10, 2007

Title: An act relating to requiring additional state liquor stores to engage in Sunday sales.

Brief Description: Requiring additional state liquor stores to engage in Sunday sales.

Committee Activity: Labor, Commerce, Research & Development: 2/15/07, 2/20/07 [DP-WM, w/oRec].

Majority Report: Do pass and be referred to Committee on Ways & Means.Signed by Senators Kohl-Welles, Chair; Keiser, Vice Chair; Hewitt, Murray and Prentice.

Minority Report: That it be referred without recommendation.Signed by Senators Clements, Ranking Minority Member and Holmquist.

Majority Report: Do pass.Signed by Senators Prentice, Chair; Fraser, Vice Chair, Capital Budget Chair; Pridemore, Vice Chair, Operating Budget; Zarelli, Ranking Minority Member; Brandland, Fairley, Hatfield, Hewitt, Hobbs, Keiser, Kohl-Welles, Oemig, Regala, Rockefeller, Schoesler and Tom.

Minority Report: That it be referred without recommendation.Signed by Senators Carrell and Parlette.

Background: During the 2005 Legislative Session, the Legislature passed SHB 1379, which directed the Liquor Control Board (LCB) to expand store operations to include Sunday sales is selected state liquor stores. The Sunday sales for state stores began in September 2005 with the hours of operation being from 12 pm to 5 pm. The LCB was required to report the results of the Sunday sales project to the Legislature by January 31, 2007.

According to the LCB report, Sunday sales have experienced a steady growth since the pilot project began in September 2005. The original biennial estimate for Sunday revenue was $9.55 million. It is now estimated that a total of $15.1 million in gross sales will be brought in on Sundays during the current biennium.

Excess funds in the liquor revolving fund are distributed as follows: three-tenths of one percent to border areas; and from the remaining amount, 50 percent to the state General Fund, 10 percent to the counties; and 40 precent to incorporated cities and towns.

Summary of Bill: By September 1, 2007, the LCB must expand its Sunday sales operations to include 29 additional state stores. The LCB must report to the Legislature on the increased Sunday operations by January 31, 2009.

At the start of each fiscal year and before distributing the excess funds to the General Fund, counties and cities, the State Treasurer must deduct from the General Fund distribution $1,950,000 to be deposited into the Public Benefit and Research Services Account (PBRSA).

The PBRSA is created in the State Treasury and consists of all money deposited, transferred or appropriated to the account by the Legislature. Expenditures from the account may only be used by the Administrative Office of the Courts to assist superior courts with language interpreter services and to assist the municipal council with research and services for ports and special purpose districts.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony (Labor, Commerce, Research & Development): OTHER: The bill provides that only a portion of the general fund distribution is diverted; the funds that currently go to local government are not affected by this bill.

Persons Testifying (Labor, Commerce, Research & Development): OTHER: Rick Garza, LCB.