There aren’t many things that The Bulletin’s editorial board and I agree on, but the Oregon Liquor Control Commission is one of them.
In an editorial this morning, The Bulletin asks why the state’s legislators don’t take a long, hard look at reforming “the archaic and contradictory system” under which the OLCC both regulates the sale of booze and is in the business of selling it.
Why indeed?
Decades ago, when I lived in Pennsylvania, I had my first experience with a completely state-operated liquor sales system – and a weird experience it was.
The sale of wine and liquor in Pennsylvania was – and still is – a state monopoly. The Pennsylvania Liquor Control Board, established (like the OLCC) in 1933 right after Prohibition ended, sells wine and spirits in its own stores throughout the state. The result was high prices and inconvenience for any Pennsylvanian who wanted to buy wine or liquor.
As I remember it, purchasing booze in Pennsylvania was an arcane rite. You’d go into the state store, where the items for sale were displayed individually on the wall like holy relics or precious gems. You’d decide what you wanted, make your desire known to a clerk, and another clerk would disappear into the dim recesses at the back of the store, from which he eventually would emerge – slowly, ceremoniously – bearing a bottle of the priceless fluid.
(Again, this was decades ago; Pennsylvania appears to have modernized the operations of its liquor stores since then.)
Given the limited selection, the high prices and the cumbersomeness of the purchasing process, it was small wonder that Pennsylvanians who could conveniently do it would hop across the Delaware River and buy their hooch in New Jersey, where liquor was sold much more cheaply in state-licensed but privately owned retail establishments.
Oregon’s way of selling liquor isn’t as absurd as Pennsylvania’s in the old days, but it’s still far too bureaucracy-laden and over-regulated. The OLCC doesn’t own and run its own liquor stores, but contracts with private individuals to operate them. Because of the limited number of stores and the OLCC’s strict regulation of prices, booze is significantly more expensive in Oregon than in neighboring California or other states where liquor retailing is left to private enterprise.
Oregon is one of only 18 states that directly regulate the sale of liquor. There’s no evidence that those states have lower rates of alcoholism, drunk driving, underage drinking or other evils than the other 32.
What would happen if Oregon decided to end the OLCC’s monopoly on the sale of booze and auction off liquor licenses to the highest bidders – subject, of course, to their ability to pass a thorough background check? The sky wouldn’t fall, Oregonians wouldn’t all turn into raging alkies, and the state might make a substantial amount of money.
Which, considering how strapped for cash the state government always is, would be something worth drinking to.
This article appears in Feb 11-17, 2010.
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Looks like there are initiatives on the table in Washington to privatize the liquor game: http://slog.thestranger.com/slog/archives/2010/02/09/privatizing-wa-liquor-carries-a-high-cost-says-opponent
There have been studies done that show that Oregon and Washington, as well as other states have higher rates of underage and binge drinking. Here’s a link one such study for the years 03/04:
http://www.oas.samhsa.gov/2k6/stateUnderageDrinking/underageDrinking.htm
Spending many years in the wine and spirit industry, I have found the OLCC way of doing things is not conducive to business in Oregon. Furthermore the OLCC cuts its own throat when it comes to being able to make revenue by bureaucratic over regulation just to have archane outdated control. Auction off the licenses, allow a free market, and let the private sector take over. Oregon will draw more revenue from the flow of goods sold than just trying to suck it out of the wealthy and large corporations such as measures 66 and 67 is doing. Almost everyone I know goes to another State with 90% of the their liquor purchases when stocking their liquor cabinets. Anyone with an alcohol problem does not care about regulations or price. It is time for the people of Oregon to stop thinking small time, open their eyes, and stop letting the government run their lives in this nanny state.
and while they are at it, get rid of something even more ridiculous- the illegality of pumping ones own gas. a very low paying job that subjects, usually young employees, to continuous inhalation of hydrocarbon fumes certain to damage that persons health if they do it long enough. what gives? when i tell people this in other states they almost dont believe me.
if the state wants to make some more money with something reasonable, begin vehicle safety and emission testing every couple years. get some of these smoke machines and trucks with bumpers 3 feet off the ground regulated into compliance.
Singing the praises of private enterprise? I’m proud of you.
“Singing the praises of private enterprise? I’m proud of you.”
Private enterprise does many things well, such as selling booze. It does other things poorly, such as providing health care.
To believe that private enterprise always does things well and that government always does things badly — or vice-versa — is simple-minded.
you must work for the government Bruce, because you are so for bigger and more govern. the government is so in control of everything now, is there really such a thing as private enterprise???
Private enterprise does many things well, such as selling booze. And the selling of booze is taxed by your buuddy big brother, so is smokes and soon pot. Also it used to be the mafia controlled gambling now oregon looto and then they the state-have the self helps to get help for compulsive gambling? What a mess, and you associate yourself with all that? Isn’t private enterprise the foundation of our country? really Bruce I guess you are right we are simple minded.