FINAL BILL REPORT

SHB 1781

C 313 L 01

Synopsis as Enacted

Brief Description:  Making payment of agency commissions for agency liquor vendor stores.

Sponsors:  By House Committee on Appropriations (originally sponsored by Representatives H. Sommers, Sehlin, Clements, Conway and Kenney; by request of Liquor Control Board).

House Committee on Appropriations

Senate Committee on Ways & Means

Background:

The liquor revolving fund consists of all license fees, permit fees, penalties, forfeitures, and all other moneys, income, or revenue received by the Liquor Control Board (LCB).  The liquor revolving fund is subject to the allotment controls of the Budget and Accounting Act, but an appropriation is not required to permit expenditures and payment of obligations from the fund, with the exception of the LCB administrative expenses.

Administrative expenses of the LCB are appropriated and paid from the liquor revolving fund.  Within this category, there are a number of the LCB expenses that are exempt from the appropriation process.

The retail sale of liquor is achieved in two ways.  First, the LCB operates state-run retail stores.  Second, the LCB has entered into agency agreements with vendors to sell liquor in areas that do not have state-run stores.  The LCB pays an agency commission to these vendors.  Expenditures for these commissions are not exempt from the appropriation process.

Summary:

Agency commissions for agency liquor vendor stores are exempt from the appropriation process.  The LCB may make expenditures for this purpose without an appropriation; however, all of the expenditures from the liquor revolving fund are subject to allotment.

Agency commissions and commission rates for agency liquor vendor stores will be established by the LCB after consultation with and approval by director of the Office of Financial Management.

Votes on Final Passage:

House980

Senate480

Effective:  July 22, 2001