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Oregon Privatization of Liquor Sales Initiative (2016)

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Oregon Liquor in Grocery Stores Initiative
Flag of Oregon.png
Election date
November 8, 2016
Topic
Alcohol
Status
Not on the ballot
Type
State statute
Origin
Citizens

Not on Ballot
Proposed ballot measures that were not on a ballot
This measure was not put
on an election ballot

The Liquor in Grocery Stores Initiative (Petition #71) did not make the November 8, 2016, ballot in Oregon as an initiated state statute.

The measure would have allowed privatize liquor sales, allowing certain retail stores, including grocery stores, to sell liquor beginning in July 2017. It would have prohibited the state from manufacturing, distributing or selling liquor, which would eliminate state alcohol tax revenue.[1]

Oregonians for Competition announced on April 27, 2016, that it removed its support for the measure and turned its attention toward defeating the Oregon Measure 97.[2]

Introduction

Oregon residents can find several places to buy beer and wine, but may only purchase liquor from state-owned liquor stores.

Oregon is among 18 states that have a government-controlled liquor industry. After Washington voters approved Initiative 1183 in 2011 to close state liquor stores and allow state-licensed stores, privatization has been a reoccurring discussion in Oregon.[3]

Grocers could have improved sales, while the state could have lost millions in tax revenue. State and local governments collected $435 million from alcohol tax revenue (including liquor, beer and wine) between 2013-15.[3]

The group behind the measure, Oregonians for Competition, introduced a similar measure in 2014. That version included a tax on the liquor industry to assuage the state's concerns about losing tax revenue. However, with the state's zero sales tax, a new tax would have been a hard sell, so petitioners ran out of time to perfect the measure's language and withdrew it.[3]

Text of measure

Ballot title

The certified ballot title was as follows:[4]

Allows qualified retail stores to sell liquor; prohibits state liquor sales, distribution; eliminates liquor revenue[5]

Full text

The full text of the measure can be found here.

Support

The group behind the measure was Oregonians for Competition.

Arguments in favor

Pat McCormick, a spokesman for Oregonians for Competition, said stores that already sell beer and wine can handle selling liquor as well. He contended:[6]

They already know how to responsibly sell alcoholic beverages. Let's cut the state out of the business of selling liquor and increase its focus on alcohol law enforcement.[5]

Brian Boe, a retired Portland lobbyist who represented several industries on Oregon Liquor Control Commission issues, argued:[7]

The proposed ballot measure will accomplish what the Legislature should have done on its own long ago. Voters will be instructing lawmakers to put together a fair and equitable system of liquor taxes that allows the state to end its contradictory role as both liquor regulator and liquor marketer. Doing so will provide the basis for a competitive and responsible private wholesale and retail market while continuing the important tax revenue that liquor sales have historically provided.[5]

Lynn Gust, co-sponsor of the measure and retired president of Portland-based Fred Meyer Stores, said,[8]

We believe Oregonians are ready to end the state’s monopoly on liquor sales and allow Oregon consumers to buy liquor at qualified grocery and retail stores — just like consumers do in most other states. ... The initiative will allow the state to focus more on alcohol law enforcement, which is what Oregon voters originally intended the (Oregon Liquor Control Commission) to do.[5]

Opposition

A Beverage PAC was created to fight against the measure.[9]

Opponents

  • American Federation of State, County and Municipal Employees[9]
  • Oregonians Against the Takeover[8]

Arguments against

John Popp, owner of 10th Avenue Liquor in Portland, said larger stores typically sell liquor that's sold nationally versus products from state distilleries. He stated:[10]

A lot of liquor stores would end up closing and those that wouldn’t, a lot would lose sales, so therefore jobs would go down.[5]

Ryan Frank, spokesman for Oregonians Against the Takeover, said,[8]

Oregonians will have a clear choice this November: A yes vote will blow a hole in state, local and mental health budgets, while corporate grocers make big profits. ... A no vote will preserve a system that Oregonians believe works and has allowed Oregon’s craft alcohol industry to thrive.[5]

Path to the ballot

See also: Laws governing the initiative process in Oregon
  • The proposal was submitted by Gerry Dory and Lynn Gust on October 28, 2015.[4]
  • A title was issued by the Oregon attorney general's office on December 31, 2015.[4]
  • 88,184 valid signatures are required for qualification purposes.
  • Supporters had until July 8, 2016, to collect the required signatures.
  • The measure appealed to the Oregon Supreme Court on January 15, 2016.[4]
  • Oregonians for Competition announced on April 27, 2016, that it removed its support for the measure and turned its attention toward defeating the Oregon Measure 97.[2]

State profile

Demographic data for Oregon
 OregonU.S.
Total population:4,024,634316,515,021
Land area (sq mi):95,9883,531,905
Race and ethnicity**
White:85.1%73.6%
Black/African American:1.8%12.6%
Asian:4%5.1%
Native American:1.2%0.8%
Pacific Islander:0.4%0.2%
Two or more:4.1%3%
Hispanic/Latino:12.3%17.1%
Education
High school graduation rate:89.8%86.7%
College graduation rate:30.8%29.8%
Income
Median household income:$51,243$53,889
Persons below poverty level:18.4%11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015)
Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Oregon.
**Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in Oregon

Oregon voted for the Democratic candidate in all seven presidential elections between 2000 and 2024.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, two are located in Oregon, accounting for 0.97 percent of the total pivot counties.[11]

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. Oregon had two Retained Pivot Counties, 1.10 of all Retained Pivot Counties.

More Oregon coverage on Ballotpedia

See also

Footnotes