Voters may have rejected two liquor initiatives last year, but the push to privatize Washington's state-run system is clearly alive and kicking. State senator Tim Sheldon (D-35) says he will cosponsor a bill drafted by Costco that would get the state out of the liquor-selling business by September of 2012.

The proposal is similar to last year's Costco-­backed Initiative 1100, with two key differences: Liquor licenses would be awarded only to retailers who operate in spaces larger than 9,000 square feet, allaying fears that every gas station and convenience store would sell liquor to motorists and children. The measure would also collect larger application and licensing fees.

"I think the citizens were confused about the details [of I-1100] but supportive of the concept," says Sheldon. "This legislation clears up those misconceptions."

The measure also keeps state liquor taxes in place, which generate roughly $300 million a year for state and local governments. While it's a long shot that this legislation could get a hearing during this session, Sheldon says it may find traction in the house Ways & Means Committee if it helps mitigate a $5.1 billion budget shortfall. "It's no secret we're struggling on the state level," says Sheldon. "This could be necessary to implement the budget if it generates revenue."