The Washington State Legislature, faced with fiscal and budgetary restraints due to the recession, is considering two bills this session which would privatize the sale of hard liquor in the state of Washington.

The proposed legislation could generate more than $100 million in revenue for the state in the first year of privatization alone, according to articles this month in the Seattle Times and The Stranger, among other media outlets.

The state is currently facing a $2.6 billion budget deficit for the coming fiscal year, as well as decreased revenue due to the recession. Officials worry this problem may be exacerbated as some one-time federal stimulus dollars begin to run out, which could leave the state in need of new revenue sources.

The two bills would either institute a system of auctioning licenses for private sale, a method similar to the one currently used in West Virginia, or an unlimited licensing system similar to California’s. Sponsored by Sen. Tim Sheldon (D-35) and Sen. Rodney Tom (D-48), respectively, the bills have sparked mixed response.

Gov. Chris Gregoire has opposed the bill, noting that the state would most likely not see revenue from privatization until 2012, according to a study by the State Auditor.

The report determined that revenue could total up to $277 million in five years of privatization through various possible reforms. These could include the sale of the state’s distribution facility, taxation of privately sold liquor and the auction or sale of retail licenses to vend hard alcohol.

Others have expressed concern that the private sale of liquor could lead to greater youth access to hard alcohol. Rick Garza, a representative of the Washington State Liquor Control Board (WSLCB), stated in a legislative hearing on Sheldon’s bill that this claim is supported by studies on ease of access at private establishments.

“Our youth compliance rate in our state liquor stores and contract liquor stores is 94 percent,” Garza said. “In the private sector, it’s 76 to 84 percent. So why would we choose to go from a system that works right to a system that provides more youth access to alcohol?”

Privatization has been a topic of dialogue in Olympia since the 1990s, according to a report from NPR’s local affiliate, KUOW. In 1994, Gov. Mike Lowry supported legislation to privatize the sale of liquor, and Sheldon has advocated such changes for over a decade, with little success.

However the current budget crisis has led many to reconsider the topic, opening debate for a possible overhaul in the years to come.