Reminder to send in Grape Grower's Surveys
Dr. Horst Caspari has asked us to remind anyone who has not yet sent in their Grape Grower's Survey for for 2002 to please do so immediately. If you are not sure, please fill one out just in case, he will catch any duplicates. Here is a copy of the survey form.
RMAVV Meeting Reminder
Our next RMAVV Meeting will be held on March 29th in Denver. The speakers will be on Sales and Marketing. Details on the agenda will be in your mailbox soon.
Specialty Crops Annual report now on Website
The 2002 Annual Report from the Powdery Mildew Specialty Crops Program has been added to the 'Interesting Links' page of the website. In addition, you can look at it here.
More Special Events from thr CWIDB
All of the special events included in several mail messages from Doug Caskey have been added to the Events page.
Mid-month Report, mid-February 2003 from WineAmerica
Wine Industry Benefits from Appropriations Bill
Six months into the fiscal year, the U.S. Congress has finally passed
its spending bill for 2003, and there's great news for the American wine
industry! The spending bill, which passed the U.S. House of Representatives
and U.S. Senate on February 13, increases funding levels for viticulture
research, Pierce's disease containment and industry promotion. Specific
appropriations for the U.S. Department of Agriculture (USDA) include:
· $1.8 million for the USDA Cooperative State Research Education Extension Service's (CSREES) Viticulture Consortium. Administered by Cornell University, Pennsylvania State University and the University of California (Davis), the consortium provides grants to address unmet research needs, enhance coordination and improve efficiency in our nation's research. This marks a $200,000 increase from last year.
· $250,000 to establish a new Agricultural Research Service (ARS) scientist for sustainable viticulture in Davis, California (currently 2 positions).
· $250,000 to establish a new grape genetics scientist in Geneva, New York (currently 3 positions).
· $2.25 million for Pierce's disease research grants.
· $600,000 increase in ARS for research to combat the glassy-winged sharpshooter which spreads Pierce's disease (brings total research dollars to $4.5 million).
· $17.5 million for Pierce disease containment in California (an increase of $9 million from last year).
· $850,000 for additional ARS funds for the northwest states (Washington, Oregon, and Idaho).
· $110 million authorized for the USDA market access program (MAP). Administered by the USDA and met with matching funds from the industry, the MAP program assists American wineries in marketing their products in foreign markets.
These mark record level appropriations and further illustrate the U.S. government's continued commitment to enhancing and strengthening the winegrape growing industry throughout the nation. These immediate investments will go a long way in improving the quality of American wines and enabling American wineries to better compete in the global marketplace.
WineAmerica is now working to increase these funding levels for next year, as well as exploring new industry and research programs. Congress begins debate on agriculture funding Spring 2003.
Direct Shipping Bill Passes in Virginia Legislature
WineAmerica is celebrating a victory in Richmond. The Virginia state
legislature passed the final direct shipping bill, which now goes to the
Governor for his signature. On February 18, the House of Delegates unanimously
passed the bill with a vote of 100-0, days after the Senate gave its final
thumbs up.
Passage of the legislation comes on the heels of the 4th Circuit Court of Appeals' oral arguments in Richmond, regarding the state's direct shipping ban. Specifically, the bill will:
· Allow wineries and retailers in any state to obtain a Virginia shipper's permit for $50 per year;
· Allow consumers to order and receive up to two cases of wine per month from holders of shipper's licenses; and
· Mandate that shippers report their sales to the state and pay all excise and sales taxes.
The Virginia precedent of solving the legal problem by allowing out-of-state wineries to ship wine directly to consumers in the Commonwealth, thus ending the discrimination, is an excellent model for resolving these disputes. The issue is also being litigated in North Carolina, New York, Florida, Texas, and Michigan. Stay tuned for the latest action.
Special kudos go to all of the wineries in Virginia, led by the Virginia Wineries Association, for their hard work and collaboration with legislators and wholesalers in securing this win-win solution.
Time for Special Occupational Tax to Go
WineAmerica is working to secure additional support in Congress to
repeal the special occupational tax (SOT) on wineries, a $1000 - $1500
fee imposed on alcohol producers on a per location basis.
As a vintner, you pay your fair share of taxes and the SOT is just an added user fee. Introduced in the 1860s to generate revenues for the Civil War, the SOT has outlived its mission. The SOT is not even directly tied to offset costs of alcohol regulation. The tax hits small wineries the hardest, requiring them to pay the same SOT regardless of production. The SOT is the same if you produce 5000 cases or 5 million cases a year.
Take Action! Legislation to repeal the SOT has been introduced in both the U.S. House of Representatives and the U.S. Senate. Similar attempts failed in the previous Congress, so it is critical for Members of Congress to hear from you about why this tax needs to go. Please contact your Members of Congress and urge them to sign on as a co-sponsors of S374 and HR786. Sample letters are attached to assist you. To find contact information for your Member, please visit www.congressmerge.com/onlinedb/index.htm. A key list of target Senators includes:
California
Senator Barbara Boxer (D-CA)
Tel: (202) 224-3553
Fax: (415) 956-6701
Senator Dianne Feinstein (D-CA)
Tel: (202) 224-3841
Fax: (202) 228-3954
New York
Senator Hillary Clinton (D-NY)
Tel: (202) 224-4451
Fax: (202) 228-0282
Senator Chuck Schumer (D-NY)
Tel: (202) 224-6542
Fax: (202) 228-3027
Oregon
Senator Ron Wyden (D-OR)
Tel: (202) 224-5244
Fax: (202) 228-2717
Washington
Senator Maria Cantwell (D-WA)
Tel: (202) 224-3441
Fax: (202) 228-0514
Senator Patty Murray (D-WA)
Tel: (202) 224-2621
Fax: (202) 224-0238
For more help, or to find out if your Member of Congress is already a co-sponsor, please call Kristi Daniels at 202-783-2756 x127.
WineAmerica Seeks to Ameliorate FDA Bioterrorism Requirements
The Bioterrorism Act of 2002 mandated registration of all foreign and
domestic facilities that process foods for human consumption. Wineries
are included in this definition. The deadline for registration is December
12, 2003.
The purpose of the registration is to help the authorities respond to a terrorist attack on the U.S. food supply by allowing the authorities to determine the source and cause of food-borne illness.
Under the proposed rule all facilities would be required to register with the FDA the following information: Name, full address, telephone number, fax number, and e-mail address of the facility; name and address of the parent company, if the facility is a subsidiary of the parent company; emergency contact information, including an individual's name, title, office phone, home phone, cell phone (if available), and e-mail address (if available); all trade names (term not defined by FDA) that the facility uses; and product categories (from FDA food additive rules).
WineAmerica is part of a coalition representing producers and sellers of wine, beer, and spirits seeking to get the FDA to delegate responsibility for this registration to the Tax and Trade Bureau (TTB) (the successor of the ATF of Treasury) in order to limit duplication of effort and avoid unnecessary and burdensome requirements. There is an existing "Memorandum of Understanding" between the two agencies which governs labeling and other matters which could be amended to include registration under the Bioterrorism Act.
Such a coordination of responsibilities was anticipated as part of the Act. Implementation could simplify and moderate reporting requirements for wineries.
The Office of Management and Budget (OMB) is seeking comments by March 5. FDA comments are due by April 4.
California Delegation Letter Seeks to Combat GWSS
Led by Congressmen Devin Nunes and Bill Thomas, 29 members of the California
delegation recently sent a letter to Director Mitch Daniels of the Office
of Management and Budget requesting final approval of more than $10 million
in supplemental funding to more effectively combat the glassy-winged sharpshooter
(GWSS). GWSS is responsible for potentially catastrophic spread of Pierce's
disease. Funds associated with this request will be used to extend the
area where extensive efforts are underway to reduce GWSS populations and
help to defray costs incurred by cooperating citrus growers and nurseries.
Legislative Sessions Shaping Up
Most having begun their sessions in January, all fifty state legislatures
are now in full steam. A number of sessions are now starting to wrap up.
The first to close is Virginia, scheduled to complete its business by February
22. Another 12 states (Arkansas, Hawaii, Idaho, Kentucky, Maryland, Mississippi,
New Mexico, North Dakota, South Dakota, Utah, West Virginia, and Wyoming)
will finish before April 15.
Bills which improve the environment for direct shipping of wine have been introduced in twelve states. Virginia has passed a favorable permit bill already. Mississippi has tabled its bill. We anticipate debate to continue on the issue in the other ten states (Arizona, Georgia, Hawaii, Kentucky, Massachusetts, North Dakota, Nevada, New York, Texas, and Vermont).
Winery law amendments are active in at least eight states. These range from a simple increase in winery size limitations (amendment in Nebraska) to a major overhaul of winery statutes (in North Dakota). WineAmerica has provided technical assistance to wineries and trade associations in those states to help them improve their laws.
Up to date summaries of bill status are available on the WineAmerica web site at www.americanwineries.org.
As expected, the dominant issue for cash-strapped states is to focus on increasing excise taxes as a means to close the budget gaps. Sixteen states have bills which would increase beverage excise tax rates. Several bills have been tabled and none have passed a legislative body at this time. In addition to draconian tax increases, we also see a move to earmark revenues for health and medical-related services.
Here is a brief overview of the attacks across the nation:
Arizona: Introduced legislation that would increase excise taxes more than 400% on wine (from $.84 to $3.52 a gallon). The money raised would go to counties to set up alcoholism treatment centers. The tax increase, which will require a vote of the people, has not yet been heard by the house health committee.
California: The state senate introduced SB108 which imposes a $.05 per drink tax and dedicates the funding to emergency medical services. Similarly, the assembly introduced AB216 which would impose a user fee and dedicate funding to youth alcohol prevention centers. Both are pending committee referral.
Georgia: Newly elected Governor Sonny Purdue has proposed to fund the state's $620 million shortfall by raising $94 million from an increase in taxes on alcohol and tobacco (which includes a 50% increase on wine). However, leaders in the legislature are optimistic they can offset the $94 million elsewhere, without raising taxes. No legislation has been introduced.
Indiana: Public health interest groups are pushing for the state to impose a 50% increase in alcohol tax in order to offset healthcare and substance abuse costs. House democratic leaders have persuaded the health and safety coalition not to submit an alcohol tax increase bill. Instead they are reserving the option of tying it to other legislation later in the session. The regular session ends April 29, but Governor O'Bannon could call a special session to address budget issues.
Maine: The legislature introduced a bill to increase the tax on wine from $1.00 per gallon to $1.25 per gallon. Revenues would benefit the "Fund for Healthy Maine," a fund created by the legislature with the state's tobacco settlement to provide health education and disease prevention services. The bill has been referred to the committees on taxation in both chambers.
Maryland: The senate budget and taxation committee has scheduled a hearing on March 5 on tax increases for alcohol. The hearing will examine SB384, which aims to increase excise tax on wine from $.40 a gallon to $1.00 a gallon, and SB529, which aims to increase excise tax on wine to $.80 per gallon and dedicates revenue to the Maryland Emergency Medical System Operations Fund. Bill supporters are pointing to the fact that taxes on distilled spirits has not risen since 1955, and the tax on beer and wine since 1972. WineAmerica is working with the Maryland Association of Wineries to prepare and deliver testimony on March 5.
Nebraska: Nebraska's unicameral legislature has introduced several bills to raise excise taxes on alcohol, including proposals to dedicate funds for substance abuse programs. The Committee on Revenue is set to hold a hearing on the proposals on February 19. Legislative bill 338 would more than double the current tax on alcohol at the wholesale level, raising about $13 million a year. This bill would also create a 16-member Substance Abuse Treatment and Policy Council to explore treatment options and develop the funding formula. Legislative bill 337 would add a 2% tax to all drinks sold in bars and restaurants and revenues would be used for criminal justice-related programs. A third proposal, legislative bill 283 would raise the excise tax on alcohol by 30% ($.75 a gallon to $1.20 per gallon for wine). Republican Governor Mike Johanns has repeatedly said tax increases will be his last option for balancing the budget, but many state lawmakers agree that cuts alone will not solve the budget shortfall.
Nevada: Governor Kenny Guinn announced last month that he would seek nearly $1 billion in new taxes in the biggest increase in Nevada's history. His proposal includes a 90% increase for excise taxes on wine. The Governor recently made national headlines when the Wall Street Journal editorial board awarded him with "the prize for sticking it to taxpayers."
New Mexico: The state house introduced H627 that would raise taxes on alcohol (from $.45 per gallon to $.90 per gallon on wine) and dedicate the funding to trauma centers. The bill was reported from the senate public affairs committee without recommendation. A similar bill was introduced in the senate (S155) which increases wine excise taxes to $.67 per gallon. On February 18, the legislature also introduced a franchise protection bill, SB688. Considered monopoly protection for wholesalers, this special interest legislation severely restricts or inhibits a winery's ability to adjust its distribution system in response to changes in market conditions.
Ohio: During his State of the State address last month, Governor Taft proposed raising taxes on cigarette and alcohol purchases to help ease the $720 million shortfall. He called on legislators to act quickly to enact the changes.
South Dakota: The legislature rejected a measure to increase alcohol excise taxes by 12% by a vote of 14-52. A hearing will be held on February 19 on H1270 to raise excise taxes on alcohol to take effect immediately on passage. The senate will also hold a hearing on S186 to increase in excise taxes and dedicate the funds to county law enforcement and criminal justice. Another senate bill, S62 would raise wine excise taxes from $.93 to $1.43, was voted out of committee and expected to go for a floor vote any day. The Governor also supports the increase on alcohol taxes.
Virginia: The house of delegates introduced HB1566 to impose a 9% ad valorem tax on alcohol. The bill passed the finance committee on January 29, and now awaits floor action. Governor Warner proposed a smaller, 2.6% tax increase on alcohol.
West Virginia: The legislature introduced senate bill 89 which requires the ABC to impose a 92% tax increase on wine. The bill was referred to the committee on finance.
1200 G Street, NW, Suite #360, Washington, DC 20005
Telephone: 202-783-2756 Fax: 202-347-6341
www.americanwineries.org
Staff Listing
David Sloane
President
dsloane@americanwineries.org
x122
Bill Nelson
Vice President, Government Relations
bnelson@americanwineries.org
x123
Kristi Daniels
Director of Grassroots & Political Affairs
kdaniels@americanwineries.org
x127
Terri Lankford
Director of Communications & Membership Services
tlankford@americanwineries.org
x124
Jennifer Montgomery
Manager of Regulatory Affairs
jmontgomery@americanwineries.org
x128
Kelly Rusk
Manager of Technology and Programs
krusk@americanwineries.org
x100
From: David Sloane
Sent: Wednesday, February 12, 2003 10:44 AM
Subject: PPI Paper on On-Line Wine Sales
Importance: High
All:
For your information, the Progressive Policy Institute, the policy
arm of the Democratic Leadership Council (centrist Democratic think tank),
has just come out with a paper that is exceedingly critical of the alcohol
distribution system, and the implications for on-line wine sales in particular.
This is the same group that issued a report two years ago attacking "middlemen" in a host of industries, including the wine business, for enacting state laws blocking or impeding on-line sales and hurting consumers. That report was called "Revenge of the Disintermediated."
Rob Atkinson, the policy specialist that led that effort and is behind this new paper, has also been actively involved in trying to encourage the Federal Trade Commission to take some action to discourage states from enacting laws that impede the free flow of interstate commerce. He was one of the lead participants at the FTC workshop last October on state impediments to e-commerce.
If you would like a copy of the report, click on the following link, where you can download it for free. Thanks for your interest.
regards, David
Buying Wine Online: Rethinking the 21st Amendment for the 21st
Century
http://www.ndol.org/ndol_ci.cfm?contentid=251266&kaid=140&subid=292
David P. Sloane
President, WineAmerica
nmj -03/06/2003