Brad Shannon

Brad Shannon:
The Politics Blog

Brad Shannon maintains this blog. He is political editor at The Olympian and can be reached at 360-753-1688 or bshannon@theolympian.com.

Rep. Hunt: Costco bill is to show ‘displeasure’

Brad Shannon | The Olympian • Published January 16, 2012

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Democratic Rep. Sam Hunt of Olympia said his bill to bar Costco, Wal-Mart and other big box members-only retailers from getting new liquor-sales licenses was symbolic only and is dead on arrival.

Hunt introduced House Bill 2426 on Friday with two co-sponsors, Democratic Reps. Sherry Appleton of Poulsbo and Timm Ormsby of Spokane. It came as the Washington State Liquor Control Board’s operation is transitioning to a private-run system starting June 1, and the liquor agency says it has reached major agreements that let it move on.

The transition to a private-run system is under way, and more than 1,000 state employees are losing their jobs by the end of May as the Liquor Control Board jettisons its role in liquor distribution and retail sales. Meantime, two lawsuits are pending to block I-1183 from taking effect.

The Liquor Control Board announced last week that major agreements have been reached with suppliers of 99 percent of the liquor spirits sold in state stores to return any excess product remaining May 31. It had less luck with wine distributors accounting for 22 percent of the product, but wine sales are a small part of its traffic, the board said.

In a news release, the liquor agency said, in part:

Agreement will keep liquor stores stocked until transition to private sales

99 percent of listed spirits to stay on shelves through May 31, 2012

OLYMPIA - A major milestone was reached recently when suppliers representing 99 percent of all listed spirits products signed an agreement with the Washington State Liquor Control Board (WSLCB). The Supplier Buy-back Agreement allows their products to remain available to customers until the transition to private sales on June 1, 2012.

“Our employees hit the ground running November 9,” said WSLCB Chair Sharon Foster. “I want to thank them for their steady leadership and dedication on behalf of our customers.”


Hunt said his anti-Costco bill won’t get in the way and that it sends a message of “displeasure” to Costco, which spent heavily to pass the initiative that lets it enter the retail liquor market in Washington after June 1.

. “Here’s the deal. This bill isn’t going anywhere,” Hunt said. “But there are those of us upset that the corporations have successfully taken over the initiative process by spending $22 million to convince the people this is a good idea after it failed numerous times.”

The Issaquah-based Costco retailer gave $22.5 million to the Initiative 1183 campaign, which broke all state initiative spending records. Just a year before, the American Beverage Association and allies had set the money record by spending $16 million to repeal taxes on pop and candy.

Here is the language of Hunt’s doomed bill, which suggests Costco-style, wholesale packaging of liquor is damaging:

AN ACT Relating to prohibiting the issuance of spirits retail licenses to certain membership organizations; adding a new section to chapter 66.24 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that buying in bulk and in supersized packaging, a pattern of activity that is promoted and encouraged by membership organizations, increases abusive consumption.

In order to protect the public interest, advance public safety, and prevent abusive consumption of spirits, the Washington state liquor control board is explicitly prohibited from issuing spirits retail licenses to certain membership organizations.

NEW SECTION. Sec. 2. A new section is added to chapter 66.24 RCW to read as follows:

No spirits retail license may be issued to a grocery store licensee that is a membership organization that requires members to be at least eighteen years of age.


Hunt said the bill also hit Wal-Mart, Sam’s Club and Bi-Mart outlets. And it comes from his frustration as chairman of the House State Government and Tribal Affairs Committee that considers election-related bills.

“We have a people’s initiative process,” Hunt said. “Well, it’s not a people’s initiative process when you use paid signature gatherers and pay $22 million into the initiative process.’’

Similar stories:

  • Tri-Cities to have 6 times as many liquor sellers

  • Scolding Costco is a waste of time

  • In South Sound, competition for liquor profits is set to be fierce

  • Big stores, small, specialty and grocers – all will compete for your liquor dollars

  • Fate of liquor initiative leaves craft distillers in limbo

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