The economic development realm was fairly quiet this session; however, the excitement around the impending World Cup brought lawmakers together to finally allow for libation zones in Washington state.
HB 1515 allows cities, towns, counties, and ports to establish expanded outdoor alcohol service areas, also known as “libation zones” or “sip and stroll” areas, within their community. The Liquor and Cannabis Board (LCB) will administer the new program and has already begun the rulemaking process. While HB 1515 was primarily meant to support World Cup activities, cities and towns can take advantage of libation zones for local events and activities not associated with the World Cup.
A pair of bills, HB 1037 and SB 5053, made a valiant effort to adjust how public facilities districts are developed and managed; however, neither bill had the legs to make it to the finish line. Both bills will have a chance again next year to become law.
Looking ahead to 2026 we expect some renewed efforts to modify the tax increment financing tool again to address concerns from special purpose taxing districts. AWC plans to work with stakeholders during the interim to understand and work on mutually beneficial solutions.
Bill # | Description | Status |
|---|
HB 1515 | Creates expanded outdoor alcohol service areas | Law; effective July 27, 2025 |
HB 1037 | Adjusts the creation and management of public facilities districts | Did not pass. |
SB 5053 | Adjusts the creation and management of public facilities districts | Did not pass. |