This Washington
Is I-1183 Really Just Limited to Large Stores?
I-1183, the liquor privatization initiative resurrected by Costco this year, contains a potential loophole that may or may not undermine one of its more politically attractive provisions.
Responding to a loss at the polls last year, Costco added two smart provisions this year. The first restricts liquor licenses to retailers that are 10,000 square feet and over, and the second mandates that 17 percent of liquor sales at licensed stores go back to the state. Voters turned down 1183's predecessor, I-1100, 53.43 percent to 46.57 percent, last year in part because it threatened to crimp state revenue and people were wary of turning every corner convenience store into a booze outlet.
But there is a clause in the initiative that authorizes exceptions to the 10,000 square foot rule, and so far it has not received much attention.
Currently, as outlined by Section 103, subsection 3a of the ballot proposal, the 10,000 square foot rule can be waived for an applicant store if:
· There are no other existing liquor retailers in the “trade area”
· The “operational requirements” set by the liquor board are met
· No public safety violations in the past three years
It's that first bullet point that the anti-1183 troops (mainly UCFW Local 21, which represents state liquor store workers, and has contributed $23,963.46 to Protect Our Communities) are concerned about. "Trade area" is not spelled out in exact terms anywhere in the initiative, though the provision is generally understood to accommodate rural regions that do not have large grocery retailers.
Alex Fryer, spokesperson for Protect Our Communities, believes that "the language is vague" enough to broaden into a loophole.
However, according to Mark Funk, spokesperson for Yes on 1183, the language surrounding the provision is a non-issue because the licensing process for new retailers would be monitored by “community input” and take into account “zoning issues”.
He estimates that no more than 150 to 200 rural retailers would exist under the exception rule. “This is not a loophole,” he asserts. (The Yes on I-1183 website also emphasizes that the initiative "prohibits small convenience stores and gas stations" from selling liquor.)
Brian Smith, Communications Director for the Liquor Control Board, agrees. In fact, he points out that 163 contract stores owned and operated by small business owners (instead of being state-owned) in small rural areas already exist. The exception provision in the initiative “grandfathers them in,” and he expects no increase in the amount of small business liquor retailers with the passage of I-1183.
Fryer argues that "if it was just a provision to grandfather in the contract stores, the initiative could have used language to say that," and that the campaign plans on doing its own research on how many potential businesses could merit the exception.
The Office of Financial Management's fiscal impact report on I-1183, which was updated yesterday, estimates a total of 1,428 total liquor retailers under the new initiative. Currently, there are 329 liquor retailers in Washington (163 contract stores and 166 state operated ones).
Responding to a loss at the polls last year, Costco added two smart provisions this year. The first restricts liquor licenses to retailers that are 10,000 square feet and over, and the second mandates that 17 percent of liquor sales at licensed stores go back to the state. Voters turned down 1183's predecessor, I-1100, 53.43 percent to 46.57 percent, last year in part because it threatened to crimp state revenue and people were wary of turning every corner convenience store into a booze outlet.
But there is a clause in the initiative that authorizes exceptions to the 10,000 square foot rule, and so far it has not received much attention.
Currently, as outlined by Section 103, subsection 3a of the ballot proposal, the 10,000 square foot rule can be waived for an applicant store if:
· There are no other existing liquor retailers in the “trade area”
· The “operational requirements” set by the liquor board are met
· No public safety violations in the past three years
It's that first bullet point that the anti-1183 troops (mainly UCFW Local 21, which represents state liquor store workers, and has contributed $23,963.46 to Protect Our Communities) are concerned about. "Trade area" is not spelled out in exact terms anywhere in the initiative, though the provision is generally understood to accommodate rural regions that do not have large grocery retailers.
Alex Fryer, spokesperson for Protect Our Communities, believes that "the language is vague" enough to broaden into a loophole.
However, according to Mark Funk, spokesperson for Yes on 1183, the language surrounding the provision is a non-issue because the licensing process for new retailers would be monitored by “community input” and take into account “zoning issues”.
He estimates that no more than 150 to 200 rural retailers would exist under the exception rule. “This is not a loophole,” he asserts. (The Yes on I-1183 website also emphasizes that the initiative "prohibits small convenience stores and gas stations" from selling liquor.)
Brian Smith, Communications Director for the Liquor Control Board, agrees. In fact, he points out that 163 contract stores owned and operated by small business owners (instead of being state-owned) in small rural areas already exist. The exception provision in the initiative “grandfathers them in,” and he expects no increase in the amount of small business liquor retailers with the passage of I-1183.
Fryer argues that "if it was just a provision to grandfather in the contract stores, the initiative could have used language to say that," and that the campaign plans on doing its own research on how many potential businesses could merit the exception.
The Office of Financial Management's fiscal impact report on I-1183, which was updated yesterday, estimates a total of 1,428 total liquor retailers under the new initiative. Currently, there are 329 liquor retailers in Washington (163 contract stores and 166 state operated ones).
