This Week at AVA

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June 14, 2000
TO: AVA Members
FR: Simon Siegl, President
RE: This Week at AVA

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  • DIRECT SHIPMENT

    • AVA Files Affidavit in Support of New York Consumer Lawsuit
      The Institute for Justice's suit to open up New York for direct shipment of wine was filed on behalf of a Virginia winery, a California winery and several consumers in New York. The first hurdle it faces is a motion by the defendants asking the court to dismiss the case. The Judge, anticipating a flood of "friend of the court" filings on both sides of the issue, instructed all parties to be incorporated within the briefs of the two litigants, which were filed June 12th. AVA supplied to Institute for Justice an affidavit describing the demographics of American wineries and the market place challenges many face to reach and respond to consumers not in their state.

    • Vermont Enacts Shipping Permit
      The Governor of Vermont recently signed Vermont House Bill 861 which establishes a shipping permit for sales of wine to individuals within the state. It allows for the delivery of up to one case. There are some onerous aspects to this law including: (a) permit fee is $200 per year, (b) invoices must be filed with the department of liquor control before shipping, and (c) the common carrier must have its employees undergo training as approved by the department. There is certainly some doubt that this permit will see much use.

    • Michigan Close To Tightening Up Its Shipping Laws
      Michigan has on its books a provision which seems to allow personal importation of up to a case in a manner virtually identical to Montana and Rhode Island. The authorities in that state, however, have chosen not to allow a permissive interpretation. Now the legislature is in the final stages of eliminating that loophole while appearing to set up a system which would allow some shipments. Again the proposed law is onerous, though not impossible. The current version, House Bill 4752, has been modified and passed by the state Senate. It would require of all remote sales, that: (a) the seller verify age of the individual placing the order and record name, address, date of birth and telephone number, (b) that the delivery agent verify the age of the recipient upon delivery, (c) that the retailer must be licensed, and (d) that the applicable taxes be paid to the liquor commission. Although delivery verification is difficult and not acceptable for some carriers, DHL has a mechanism in place to accomplish it.

  • FEDERAL ISSUES

    • USDA-ARS Advertising for New Position at Geneva New York
      A new grape breeding position in New York, which AVA lobbied for and Congress approved as part of the FY 2000 appropriation, is now being advertised. The Agricultural Research Service is looking for a Plant Biologist to evaluate grape scions suitable for Northeastern U.S with improved fruit, juice and wine quality and to evaluate scions for cold hardiness, disease and pest resistance. The closing date for applications was May 29. We expect the ARS to fill this position in the next few months if suitable candidates apply.

    • Estate Tax Repeal Overwhelmingly Approved by House of Representatives
      With 65 Democrats supporting a nearly unanimous vote of Republicans, the House last week approved a ten year phase out and repeal of death taxes. Estate tax relief has been a very high priority for the AVA. We have been members and participated in the key coalition of farms and family businesses, "Family Business Estate Tax Coalition", which has been instrumental in providing impetus for reform. Unfortunately the prospects for approval by the Senate and passage into law are clouded by a threatened Presidential veto. Nevertheless a crucial marker has been laid down. The President has indicated that he favors relief for family businesses and farms and we are hopeful that this business-stifling tax burden will be lifted in the near future.

    • AVA Submits Comments on Organically Grown Grapes
      AVA has submitted comments to the USDA requesting that the pending rulemaking on organic labeling be modified so that the statement "made with organically grown grapes" is not prohibited when sulfur dioxide is added as part of the winemaking process. The USDA has proposed a rule which would not allow the statement, based on comments received during an earlier rulemaking process and an interpretation that the statute does not have the flexibility to allow "made with" statement. AVA pointed out that ATF requires wines with sulfites be so labeled, that the Secretary of Agriculture is given authority by the Organic Foods Production Act to make exceptions from the processing requirements and that European standards allow an equivalent statement, even when sulfites have been added.

      There has been an overwhelming number of comments in support of our position by AVA member wineries in several states, by other wineries and many consumers. In addition, a Congressional letter signed by 46 members (3 Senators and 43 Congressmen) from 15 states (Al, CA, IL, IN, KS, KY, MT, NV, NY, OR, PA, SD, TN WA, & WY) was sent supporting the position. We are very optimistic that the USDA will adjust the rules accordingly.

  • POLITICS

    • New York Wineries Engaged with Members of Congress and Candidates for Senate
      The newly minted Republican candidate for the New York Senate, House Member Rick Lazio, who currently represents suburban Long Island, was quick to invest time to learn about grape growing and winemaking in the Finger Lakes region. His initial tour of the region included a stop at Glenora Vineyards, where AVA Board Member Gene Pierce oriented him on wine industry dynamics and issues. The Democrat candidate, Hillary Rodham Clinton, was given vineyard and winery education by John Martini of Anthony Road Vineyard in her "Listening Tour" campaign earlier this year. Napa Valley's Congressman, Mike Thompson, who is Co-Chairman of the Congressional Wine Caucus, is undertaking self-education of other wine regions by visiting Long Island wineries along with New York Congressman Anthony Weiner. AVA Board Member Dan Damianos will host wineries of the area at Pindar Vineyards on June 19th to help the honored guests gain a regional perspective.

AVAAmerican Vintners Association
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