According to Erik Smith at the Washington State Wire, Gov. Chris Gregoire has succumbed to pressure from the Washington Grocers Association, the Washington Restaurant Association, the Washington Food Industry Association, and the Retail Association to pause to reconsider whether she'll sign a bill passed late in the special session that would put the state's liquor distribution system out to bid. (The bill doesn't commit the state to do anything, but it creates an opportunity for the state to jettison distribution—making money of a lease—while holding on to its retail outlets.

The gaggle of associations are going to bat for Costco's alternative proposal, an initiative for this November's ballot to privatize the entire liquor business. Costco tried to pass legislation this year to privatize liquor, but that didn't go anywhere. Costco also pushed a failed initiative to privatize liquor last year.

The reason supporters of Costco's measure want the governor to pass on signing the distribution bill (she has until June 15) is this: They think it will dilute the public's enthusiasm for full on privatization.

Costco's initiative would keep the  current tax in place (generating about $8.5 million a year from retailers)  and the retailers would pay 17 percent of gross liquor sales to the state.

The Seattle Times published an op/ed today by proponents of the distribution plan, making the case that the governor should sign the bill.

The governor's office tells PubliCola the governor is still reviewing the bill and denied she was succumbing to any pressure.