HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No.  HB 2218

Reorganizing the liquor control board.

Brief Title                               Hearing Date: 3/2/99

Reps. Romero and Schmidt, D.               Staff: Steve Lundin

Sponsor(s)                          State Government Committee

                                              Phone:  786-7127

BACKGROUND:

Legislation was enacted in 1933 ending Prohibition in this state and establishing this state=s basic laws regulating liquor.

The Liquor Control Board was established as a three-member board that on a collective basis regulates liquor and administers the liquor laws, including:

CThe general control, management, and supervision of the state liquor stores and the board=s monopoly liquor operations;

CThe authority to adopt rules controlling liquor; and

CThe authority to hear appeals from actions taken by the board.

Members of the board are appointed by the Governor, with the consent of the Senate, serve staggered six-year terms of office and serve on a full-time basis.

SUMMARY:

The nature of the Liquor Control Board is altered from a regulatory and administrative board over a two-year period to become a regulatory board, without administrative responsibilities.  The Department of Liquor Control is established at the end of this two-year period to assume the board=s administrative responsibilities and administer the state=s liquor operations.  The department is administered by a director who is appointed by, and serves at the pleasure of, the Governor.

1. Transition.

The Liquor Control Board retains administrative control over the state=s liquor operations during the transition period, which commences on the ninety days after adjournment and ends on July 1, 2001.  However, the chair of the Board is given the added responsibility to employ staff during the transition period, rather than the Board itself.

The board remains as a full-time body during the transition period.

2. July 1, 2001.

Commencing on July 1, 2001, the Liquor Control Board loses its administrative powers, but retains the authority to establish rules and to hear appeals.  The Board becomes a part-time body at that time, with its members receiving compensation at a per diem rate of $100.

The Department of Liquor Control is established on July 1, 2001, to assume the administrative responsibilities of the Liquor Control Board and administer the state=s liquor laws and operations.  The Governor appoints a director of the department who is the executive head of the department.  The director is subject to confirmation by the Senate and serves at the pleasure of the Governor.  All prior administrative powers, duties, and functions of the Liquor Control Board are transferred to the director.  The director supervises and administers the operations of the department, employs personnel following the state civil service laws, appoints assistant directors and special assistants, enters into contracts, appoints advisory committees, and delegates powers to employees.  A number of statutes relating to specific administrative actions of the board are amended to provide that either the director or the department take those actions.

The director is required to adopt an integrated liquor plan that includes a number of items, including a program to achieve efficiencies, a program of public and consumer information that emphasizes alcohol abuse prevention and responsible consumption, and a strategy to implement the plan.

The Code Reviser is directed to prepare and present a bill to the 2000 legislature that corrects references to the Liquor Control Board that are rendered inaccurate by this legislation.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.