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Last week’s elections brought a major shake-up in the way Washington state government is going to do business.
The Washington Liquor State Licensing Initiative 1183 put an end to state-run liquor stores. The initiative provides for the closure of all state liquor stores and the sale of assets including the state-run distribution center.
The initiative limits liquor sales to retail outlets that have at least 10,000 square feet of retail space. Smaller outlets may be allowed to sell liquor if they are the only retail outlet in a shopping area.
The initiative calls for a 17 percent fee from retailers on all liquor sales, as well as other fees paid by distributors. Money from the fees will go to public safety, including police and fire protection.
A similar measure failed in Washington in 2010. However, this year’s measure, which included more funds for public safety, passed with an overwhelming 60 percent of the vote.
It is unclear at this time if the measure will do anything to lower the price of alcohol in Washington. That depends on the deals that retailers are able to negotiate with distributors. Even if distributors and retailers mark up their prices a combined 25 percent, the cost of liquor should remain relatively unchanged. Because of competition, it is much more likely that retail costs will go down.
However, public safety should not be impacted by the new rules. Even though liquor will be available in many more stores, its sale will still be strictly controlled.
The measure brings Washington in line with most other states. Oregon is one of only a handful of states that still runs state liquor stores. Even if Washington’s law isn’t perfect, it is an improvement from state-run liquor stores.
Now is the perfect time for Oregon to get out of the state liquor business. Oregon has frequently replicated legislation that has passed in our border states. Now we have an opportunity to take a close look at the Washington initiative then make any changes necessary to make the legislation better fit the citizens of Oregon.
The Washington Restaurant Association came out in favor of initiative 1183, and it is likely that the Oregon Restaurant and Lodging Association would do the same. As the ORLA points out in their monthly publication, “Washington looks to be providing a well-thought-out process and first step that would mean less government waste, more competitive prices, and more funds for vital public services — without raising taxes.”
Cutting government waste and improving vital public services without raising taxes seems to be a perfect combination. It’s time for Oregon to get on board.
