This Week at AVA

December 19, 2000
TO: AVA Members
FR: Simon Siegl, President
RE: This Week at AVA

This Week at AVA -- Archived Issues

• CONCLUSION OF THE 106TH CONGRESS
  
  
  • Gains in research - failure to address tax issues
    Yes, at long last, the Congress wrapped up its session by passing the final budget bill. It was a Congress which was very supportive of wine industry initiatives to address the threat of Pierce's disease-Congress appropriated unprecedented funds for research efforts to combat the disease and provided compensation for growers adversely affected. By urging the USDA to declare an emergency, Congress effectively provided money for contain and control operations by the state of California. Congress also increased funding for the viticulture consortium and added Pennsylvania to New York and California as states listed in that appropriation.
    
    Congress addressed a quirk in the law governing organic product labeling in order to allow wineries the ability to make the statement "made with organically grown grapes" - a claim threatened by USDA rulemaking.
    
    Negatively, Congress, at the behest of the wine wholesalers and their agent Senator Orrin Hatch (R-UT), passed and the President signed the unneeded and potentially mischievous "21st Amendment Enforcement Act". Our amendments for Due Process protections and to enhance Federal court challenges of protectionist laws were successfully attached to the bill. Only time will tell how the courts interpret that language.
    
    Another negative was the failure of the 106th to eliminate the estate tax (vetoed by the President) and repeal the Special Occupation Tax. The latter was coupled with the minimum wage package and not acted upon by Congress.
    
    

• IMPACTS OF THE ELECTION
  
  
  • George W. Bush by a whisker
    The whole country was riveted to the news for over a month as the resolution of an essentially tied presidential election played out. Less obvious, but quite important, was the election of a tied Senate. We regret the defeat of incumbent Senator Slade Gorton (R-WA) and the retirement of Senator Patrick Moynihan (D-NY) who have been great supporters of our industry. We will have to work hard to develop relationships with their successors, Senators-elect Maria Cantwell (D-WA) and Hilary Clinton (D-NY).
    
    AVA expects President-elect Bush to be favorable to our efforts to reduce the negative impact of estate taxes on family businesses. Prospects for repeal of the Special Occupation Tax are unclear at this time. His two top choices for Secretary of Agriculture, Ann Veneman, former California agriculture director and Congressman Charles Stenholm (D-TX) are both supportive of the American winegrowing.
    
    

• ENVIRONMENTAL ISSUES
  
  
  • AVA Developing Information Bank
    Several AVA winery members already have or are about to announce establishment of conservation easements as long term commitments to preserve open land. AVA has been requested to collect examples of land trust conservation easements and similar programs with vineyards and wineries to build a national news story on these developments. Please send background material at your earliest opportunity to Harvey Posert, AVA Public Relations Counsel: by mail at 1140 Victoria Lane, St. Helena, CA 94574; by fax to 707 967 8376, or by e-mail to posert@napanet.net.
    
    

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