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Evergreen Ledger

SHB 2035

In Committee

House

Liquor license fees

Increasing license, permit, and endorsement fees.

This status may be delayed. See Action History below for the latest updates.

How does a bill become law?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: March 19, 2025
Last Action: January 12, 2026
Status: H Rules X
Companion Bill:
View Bill Text (HTML) (opens in new tab)View Bill Text (PDF) (opens in new tab)

AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesBalancedCorporate & Wealthy Interests

This bill raises fees for nearly all liquor licenses, permits, and endorsements in Washington State by 50%, including for restaurants, grocery stores, wineries, breweries, distilleries, and event-based permits. It also updates the fee structure for spirits distributors and introduces new fee requirements for future rule-based adjustments. The changes aim to increase state revenue to support liquor licensing and enforcement activities.

  • Increases license, permit, and endorsement fees by 50% across most liquor license types, including restaurant, tavern, grocery store, spirits retail, winery, brewery, and distillery licenses.
  • Raises fees for special event permits—such as those for distilleries, wineries, and breweries—to $15 per event (from $10), and for private collection wine/spirits sales to $37.50 (from $25).
  • Increases the annual fee for the short-term rental wine permit from $75 to $112.50, and the day spa wine/beer permit from $125 to $187.50.
  • Increases fees for spirits distributor licenses to 5% of annual spirits sales revenue (up from 10% in the first 27 months, then 5% thereafter), and sets a new $1,980 annual renewal fee per location.
  • Increases the application processing fee for new retail licenses from $75 to $112.50, and raises fees for representative, beer/wine gift delivery, and other specialty licenses by 50%.
  • Adds a new requirement that all fees determined by rule must be increased by 50%, ensuring future fee adjustments follow this mandate.

Who is affected

  • Liquor license holders and applicants — Businesses that apply for or renew liquor licenses, permits, or endorsements—such as restaurants, bars, grocery stores, wineries, breweries, distilleries, and specialty shops—will pay higher fees. The increases range from 25% to 50% depending on the license type.
  • Event organizers and special permit applicants — Businesses that rely on special permits for events—such as distilleries, wineries, breweries, short-term rental operators, and nonprofit organizations—will pay more per event or annual permit, with fees increasing by 50% (e.g., from $10 to $15 per event, or from $75 to $112.50 annually).
  • Retail spirits sellers — Grocery stores, beer and wine specialty shops, and other retailers that sell spirits for off-premises consumption will face higher license and endorsement fees, including a new combined license structure and increased renewal fees.
  • Hospitality and transportation operators — Interstate carriers (trains, planes, ships), hotels, motels, and senior centers will pay higher annual fees for their liquor licenses, with some fees increasing by 50% (e.g., motel license from $500 to $750).
  • State government (Liquor and Cannabis Board) — The Washington State Liquor and Cannabis Board will collect significantly more revenue to support its operations and enforcement activities, including increased staffing and oversight of alcohol sales.
Effective: July 1, 2025Fiscal impact: The bill is projected to generate approximately $15 million in additional revenue over the 2025–2027 biennium for the state's liquor revolving fund, primarily from increased license, permit, and endorsement fees.
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026 at 7:32 PM

Pro/Con Analysis

Stronger case for concerns

Potential Benefits (5)

  • The $15 million biennial revenue increase will fund enhanced licensing oversight, compliance enforcement, and staff training—supporting more consistent monitoring of alcohol sales, potentially reducing illegal sales to minors and visibly intoxicated patrons.

    Public SafetyPeopleRef: Fiscal Impact (Summary); Sec. 50

  • Increased funding for the Liquor and Cannabis Board may improve enforcement capacity, including investigations into illegal sales, underage access, and unlicensed operations—benefiting communities experiencing alcohol-related harms.

    Public SafetyPeopleRef: Fiscal Impact (Summary)

  • The bill includes fee waivers during the 2021–2022 period for businesses suspended or cited for violating pandemic emergency proclamations—providing targeted relief to those disproportionately impacted by extraordinary public health enforcement.

    Business & EmploymentLean peopleRef: Sec. 1 (13), (14), (15); Sec. 11 (5); Sec. 16 (6), Sec. 17 (6)

  • The requirement that future rule-based fees be increased by 50% ensures that fee adjustments keep pace with rising administrative costs, preventing underfunding of licensing and enforcement programs over time.

    Local GovernmentLean peopleRef: Sec. 50

  • The bill strengthens the responsible vendor program by requiring ongoing employee training, ID acceptance standards, and recordkeeping—potentially reducing alcohol-related harms through better compliance incentives.

    Public SafetyLean peopleRef: Sec. 44 (8)(a)–(f)
Potential Concerns (5)

  • The 50% fee increases will raise operating costs for all licensed alcohol-related businesses—including restaurants, grocery stores, wineries, breweries, distilleries, and event-based permit holders—potentially reducing profitability, limiting expansion, and discouraging new business formation, especially for small and marginal operators.

    Business & EmploymentIndustryRef: Sec. 1 (13), (14), (15), (16), (17), (18); Sec. 2; Sec. 4; Sec. 5; Sec. 6; Sec. 7; Sec. 9; Sec. 10; Sec. 11; Sec. 12; Sec. 14; Sec. 15; Sec. 16; Sec. 17; Sec. 18; Sec. 19; Sec. 20; Sec. 21; Sec. 22; Sec. 23; Sec. 24; Sec. 25; Sec. 26; Sec. 27; Sec. 28; Sec. 29; Sec. 30; Sec. 31; Sec. 32; Sec. 33; Sec. 34; Sec. 35; Sec. 36; Sec. 37; Sec. 38; Sec. 39; Sec. 40; Sec. 41; Sec. 42; Sec. 43; Sec. 44; Sec. 45; Sec. 46; Sec. 47; Sec. 48; Sec. 49

  • The spirits distributor and spirits retailer license fees are calculated as a percentage of sales revenue (5% or 17%, respectively), meaning larger distributors and retailers with higher volumes pay substantially more in absolute dollars, effectively shifting a disproportionate burden onto larger operators—many of whom are regional or national chains—while smaller producers may be exempt (e.g., craft distilleries for own-production sales).

    Business & EmploymentIndustryRef: Sec. 5 (2)(a)(i) & (ii); Sec. 44 (4)(a)

  • The new $1,980 annual renewal fee per location for spirits distributors and $240 for spirits retailers adds fixed annual costs that disproportionately affect small operators with fewer locations but higher relative cost sensitivity, potentially reducing local competition and market diversity.

    Business & EmploymentIndustryRef: Sec. 5 (2)(d) & (3); Sec. 44 (5)

  • The mandate that all future rule-based fees be increased by 50% removes future legislative or administrative discretion over fee adjustments, constraining the Liquor and Cannabis Board’s ability to respond to inflation or changing enforcement needs without automatic, rigid hikes that may strain small businesses.

    Local GovernmentIndustryRef: Sec. 50 (new section)

  • While the bill includes fee waivers during a 2021–2022 period for certain businesses affected by pandemic-related enforcement actions, it does not extend similar relief to current small operators facing economic hardship unrelated to those specific circumstances—limiting the equity and responsiveness of the fee structure.

    Business & EmploymentLean industryRef: Sec. 1 (13), (14), (15); Sec. 11 (5); Sec. 16 (6), Sec. 17 (6)

Who Is Most Affected

Small hospitality and tasting room operatorsNegative Impact

Small restaurants, bars, and tasting rooms with annual revenues under $1M will face fee increases of $50–$300 per license—potentially absorbing 5–10% of annual licensing costs, squeezing margins in an already thin-margin industry.

Grocery and big-box retailersNegative Impact

Grocery stores and large-format retailers with spirits retail licenses will pay significantly more in both issuance (17% of sales) and renewal ($240/location) fees—costs that may be passed to consumers or absorbed by reducing staff or store hours.

Regional beverage producersNegative Impact

Medium- to large-sized wineries, breweries, and distilleries producing over 150,000 gallons or operating multiple tasting rooms will face steep fee hikes (e.g., distilleries: $3,000 → $4,500; off-site tasting rooms: $3,000 → $4,500), disproportionately affecting regional brands with higher overhead.

State government (Liquor and Cannabis Board)Positive Impact

The state will gain $15M over two years to fund licensing enforcement, compliance audits, and staff training—supporting better oversight of alcohol sales and potentially reducing illegal or unsafe practices.

Transportation and tourism operatorsNegative Impact

Interstate carriers (airlines, trains, ferries) will see motel, hotel, and sports entertainment license fees rise by 50%—increasing per-passenger alcohol service costs that may be passed to consumers or absorbed by reducing onboard beverage options.