In 1999, Congress considered several legislative issues of major importance to our industry.

Opponents’ Efforts to Link Beer to Illegal Drugs Stymied

Neo-Prohibitionists and their congressional allies fought hard to link beer to illegal drugs when they attempted to add certain language to the FY 2000 Treasury, Postal Appropriations bill. Specifically, the language sought would have mandated that the Office of National Drug Control Policy (ONDCP) spend a portion of its one billion dollar allocation in public monies to fund an anti-underage drinking initiative.

Both the Drug Czar, who is the top-ranking authority at ONDCP, and the Partnership for a Drug Free America opposed the language offered by our adversaries, Representatives Lucille Roybal-Allard (CA-33) and Frank Wolf (VA-10). Offering further opposition, NBWA, brewers and the entire licensed beverage industry worked diligently behind the scenes to oppose this effort. To that end, while the language was being considered by the full House Appropriations Committee, Representative Anne Northup (KY-3) offered an amendment to strike the inclusion of the Roybal-Allard language, and NBWA and its allies were successful in ensuring that the amendment was passed. The final vote was 32 in favor of striking the language and 23 in favor of its inclusion.

On the Senate side, retiring Senator Frank Lautenberg (NJ) offered language similar to that of Roybal-Allard in his effort to include in the Senate version of the Treasury, Postal Appropriations bill an ONDCP mandate on alcohol. Similarly, his language was defeated on the Senate floor by a vote of 54-43. Strongly supporting both Roybal-Allard and Lautenberg were Mothers Against Drunk Driving (MADD), Center for Science in the Public Interest (CSPI) and other Neo-Prohibitionists.

“21st Amendment Enforcement Act” Victorious in House and Senate

NBWA and its industry allies were also successful in passing bipartisan legislation in the House and Senate to stop the illegal direct shipment of licensed beverages. Senator Orrin Hatch (UT) and Senator Robert Byrd (WV) sponsored and introduced on the Senate floor the “21st Amendment Enforcement Act,” which passed as an amendment to the Juvenile Justice bill. By a vote of 80-17, the Senate passed legislation to allow state liquor control authorities to file in federal court for injunctive relief to prevent the interstate direct shipment of alcohol to consumers in violation of state law.

In the House, Representative Joe Scarborough (FL-1) introduced H.R. 2031, a bill possessing a legislative intent similar to that of the Hatch/Byrd amendment. NBWA, the Wine and Spirits Wholesalers of America (WSWA) and Americans for Responsible Alcohol Access (ARAA) worked with the Republican leadership to move H.R. 2031 through the House Judiciary Committee and to the House floor, where the legislation passed by an overwhelming bipartisan vote of 310-112.

OSHA Thumbs Nose at Congress and the Business Community

For several sessions, NBWA and members of the National Ergonomics Coalition have been successful in delaying the release of new ergonomics standards that lack sound scientific backing but are being proposed by the Occupational Safety and Health Administration (OSHA). In the 106th Congress, the House passed H.R. 987, introduced by Representative Roy Blunt (MO-7), which sought to prevent OSHA from moving forward with its proposal until the National Academy of Sciences completed an ergonomics study. However, the Senate adjourned for the year before considering this legislation.

The day after Congress adjourned, OSHA capitalized on the opportunity to release its proposed ergonomics standards to the nation, and is currently moving forward with its public comment period followed by public hearing notices scheduled throughout the country. It is expected that OSHA will finalize and issue the ergonomics standards in the fall of 2000. NBWA will continue its efforts to stop these regulations.

House Tax Package Contains Death Tax Relief, SOT Repeal

Congress passed the “Financial Freedom Act of 1999” which included almost $800 billion in tax relief for individuals, families and businesses. Included in this broad-based tax reform bill was the gradual elimination of the estate tax, which was to be implemented over a 10-year period. Also included in the package was the elimination of the special occupational tax (SOT). Although the “Financial Freedom Act of 1999” was vetoed by President Clinton, support for the elimination and/or reduction of estate taxes and repeal of the SOT garnered increased support on Capitol Hill.

CDL Legislation Introduced

The commercial driver’s license (CDL) issue continues to cause hardships for beer wholesalers. In the final days of the first session of the 106th, Representative Howard Coble (NC-6) introduced a bill that would return to state authorities the right to test and license commercial drivers operating within their respective states. Similar legislation gained 46 cosponsors in the last Congress. NBWA will again be seeking cosponsors for Coble’s bill and will be working to build momentum for this legislation.

Additionally, the 1998 TEA-21 highway bill directed Secretary of Transportation Rodney Slater to study the establishment of a graduated license system for CDL holders. Secretary Slater’s response is expected mid-year 2000.

Other Legislative Issues

Several other issues have been proposed by legislators, but have failed to gain momentum due to the efforts of NBWA and other industry groups. Representatives Nita Lowey (NY-18) and Charles Canady (FL-12) again introduced a new .08 federal blackmail bill which would mandate a national Blood Alcohol Content (BAC) standard. After NBWA faxed an Action Alert to wholesalers in the districts of the 120 members who cosponsored the legislation in the last Congress, only 22 cosponsors have signed on to date. Aiding our effort, the General Accounting Office (GAO) released a study which concludes that moving to a .08 BAC alone has no impact on reducing drunk driving fatalities. NBWA circulated the GAO report to members of Congress and the media.

With regard to recycling matters, Representative Lynn Rivers (MI-13) and Senator James Jeffords (VT) introduced the National Beverage Container Reuse and Recycling Act of 1999 in their respective chambers in an effort to prohibit the sale of beer, mineral water, soda water, wine coolers or carbonated soft drinks unless such containers carry a refund value of 10 cents. H.R. 2676 and S. 859 were referred to their respective committees and garnered little to no support. NBWA will continue to monitor this legislation.

H.R. 1381, the “Rewarding Performance in Compensation Act,” was introduced by Representative Cass Ballenger (NC-10) to amend the Fair Labor Standards Act of 1938 by allowing for incentive-based compensation in order to encourage superior performance similar to the performance incentive created by profit sharing and benefit plans. Currently, each time a non-exempt employee receives a bonus or other type of incentive pay, the employer must go back and recalculate the employee’s hourly pay rate for the time period during which the incentive pay is based. This antiquated procedure punishes well-meaning employers for including employees in the success of the company. H.R. 1381 was passed out of the House Committee on Education and the Workforce but received no further action in the House or Senate due to fierce opposition from organized labor.