THE OSE REPORT

California’s 3^rd Congressional District

AN ELECTRONIC NEWSLETTER FROM CONGRESSMAN DOUG OSE

E-mail: doug.ose@mail.house.gov                                  Web Site: http://www.house.gov/ose

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1) FUNDING FOR DISLOCATED WORKERS AT HUNT WESSON

This week, Congressman Doug Ose announced that the U.S. Department of Labor has allocated $910,358 in grant funding for workers displaced by the closure of the Conagra Hunt Wesson tomato processing plant in Davis. "This federal funding will provide a fresh start for the many dedicated Hunt Wesson employees," Ose said. "This grant will give 600 dislocated workers with training and job placement assistance that is crucial for their job search." The grant will be operated by the Yolo County Employment and Social Services Department to provide training and reemployment assistance in recruitment, outreach, assessment, counseling, job search assistance, job development, job placement, basic skills training, classroom training, on-the-job training, and supportive services such as child care and transportation. In November 1999, Ose wrote to the Labor Department on behalf of Yolo County seeking assistance for the displaced workers. Ose said then that the closure of the plant would result in up to $35 million in lost revenue and the immediate elimination of 220 year-round job and up to 400 seasonal part-time employees. The plant had been an essential part of the Davis community for the last 38 years.

2)HOUSE APPROVES McCLELLAN AFB PROJECTS

As part of the Fiscal Year 2001 Defense Appropriations Act, the U.S. House of Representatives gave approval to $14 million in project funding for the Defense Microelectronics Activity (DMEA) program at McClellan Air Force Base in Sacramento.

"I am pleased that this project was included in the House Defense Appropriations," said Congressman Doug Ose. "The DMEA projects are an important component for McClellan as it undergoes the process of transformation from military to civilian use." DMEA is a high-tech microelectronics laboratory that keeps military systems up-to date by using the latest state-of-the-art technology. The facility employs over 130 engineers. It is one of the few defense activities that will remain open at McClellan after the base closes next year. DMEA currently serves as the hub of McClellan’s high-tech component, and is crucial for the redevelopment of the base. "Microelectronics technology plays a vital role in our weapons system, yet it is so dynamic and now obsoletes itself every 18 months," said DMEA Director Ted Glum. "These funds will allow us to generate solutions that enable us to support our weapons systems that rely on this technology now and in the future. Congressman Ose should be commended for his foresight in the DMEA issue." The approved projects will enhance DMEA’s ability to keep pace with the rapid changes occurring in the commercial semiconductor industry. DMEA provides the Department of Defense (DOD) with critical replacement components for some of the most modern weapons systems, saving millions of tax dollars. "The DMEA projects will provide great opportunities for public-private ventures and help add to the already significant growth of high-tech companies in and around Sacramento," said Sacramento County Supervisor Roger Niello. "Funding this project will allow McClellan AFB to redevelop into the greatest economic asset this region will ever see." The overall Defense Appropriations Act calls for $288.5 billion in budget authority, including $75.9 billion for military personnel, $97.5 billion for operations and maintenance, $61.6 billion for weapons procurement and $40.2 billion for research and development.

3) OSE VOTES TO END UNFAIR DEATH TAX

With the support of Congressman Doug Ose, the United States House of Representatives repealed the estate tax, which is commonly known as the "death tax." "The death tax is one of the most unfair taxes on the books, because it taxes farmers, ranchers and small business owners twice," Ose said. "The last thing that grieving family members should have to worry about is selling the family business or farm because of the IRS. I’m proud to be part of the effort to repeal this tax. Let’s bury the death tax once and for all." Under current laws, when someone dies, the surviving family is forced to pay an additional tax of up to 55 percent of the property value of the deceased – even though the deceased spent his or her entire life paying taxes on that very same property. This bill provides for a phased-in repeal of estate, gift and generation skipping transfer tax over the next 10 years. According to the National Federation of Independent Businesses, more than 70 percent of small businesses do not survive the second generation and 87 percent do not make it to the third generation. Sixty percent of small-business owners report that they would create new jobs over the coming year if estate taxes were eliminated. The death tax repeal will help those that are currently building their businesses and farms for future generations as well as those who are inheriting their family’s properties. The Death Tax Elimination Act of 2000 enjoys broad support from both parties and passed the House by a 279-136 margin.

4) THE WEEK AHEAD

S. 761 , the Millennium Digital Commerce Act Conference Report, sponsored by Senator Spence Abraham. This bill establishes a standard whereby electronic signatures are given the same validity as paper signatures in order to facilitate online transactions.

H.R. 4601, the Debt Reduction and Reconciliation Act of 2000, sponsored by Representative Ernie Fletcher. Representative Fletcher's bill creates a special account for any on-budget surplus over the $24.4 billion estimate in March, dedicating those additional surplus funds to paying down the national debt, a top Republican priority.

H.R. 4578, the Department of the Interior and Related Agencies Appropriations Act for Fiscal Year 2001, sponsored by Appropriations Interior Subcommittee Chairman Ralph Regula. This bill provides $14.6 billion in funding for such agencies as the National Park Service, the Bureau of Land Management, the Bureau of Indian Affairs for Education and Programs, and the Indian Health Service.

H.R. 4461, the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act for Fiscal Year 2001, sponsored by Appropriations Agriculture Subcommittee Chairman Joe Skeen. This bill provides $14.375 billion in discretionary funds for rural American priorities. Funded in this bill are the Farm Service Agency, agriculture credit programs, rural housing loans, the FDA, Food Stamps, Child Nutrition Programs including WIC, and the Food Safety and Inspection Service.

H.R. 4516, the Legislative Branch Appropriations Act for Fiscal Year 2001, sponsored by Appropriations Legislative Subcommittee Chairman Charles H. Taylor. The bill provides $1.818 billion in legislative branch funding.

VA, HUD, and Independent Agencies Appropriations Act for Fiscal Year 2001, sponsored by Appropriations VA, HUD, and Independent Agencies Subcommittee Chairman James T. Walsh. VA/HUD Appropriations provide $101.1 billion is discretionary and mandatory funds. Major allocations in this bill are provided for Veterans Medical Health Care, public housing investments, the EPA, Superfund, the Safe Drinking Water State Revolving Funds, the National Science Foundation, NASA, and FEMA. This bill prohibits the use of funds for the implementation of the Kyoto Protocol and eliminates funding for Americorps.