Summary of Legislation Affecting
Internet Sale of Alcohol
in the 106th Congress

This page summarizes the following bills:


S 577, the Twenty-First Amendment Enforcement Act

This page was last updated on October 4, 1999.

Sponsors. Sen. Orrin Hatch (R-UT), Mike DeWine (R-OH), Kent Conrad (D-ND), Robert Byrd (D-WV), Charles Robb (D-VA), and Herb Kohl (D-WI).

Summary. S 577 IS has been introduced to deal with the consequences of new distribution channels for the sale of alcohol, including the Internet and direct mail. The bill is not limited to the Internet. In fact, the word Internet does not even appear in the bill. Rather, it addresses the interstate sale of alcohol.

Amendment XXI
Constitution of the United States
(ratified December 5, 1933)

Section 1. The eighteenth article of amendment to the Constitution of the United States is hereby repealed.

Section 2. The transportation or importation into any State, Territory, or possession of the United States for delivery or use therein of intoxicating liquors, in violation of the laws thereof, is hereby prohibited.

Section 3. This article shall be inoperative unless it shall have been ratified as an amendment to the Constitution by conventions in the several States, as provided in the Constitution, within seven years from the date of the submission hereof to the States by the Congress.

There are several consequences of the growth of new distribution channels for the sale of alcohol. First, alcohol is more available to minors. Second, distributors often avoid payment of state and local taxes on the sale of alcohol. Third, distributors are often able to avoid state quality control laws.

Under the 21st Amendment states have authority to regulate the interstate sale of alcohol in their states. However, many states have found it difficult to enforce their laws against distant distributors of alcoholic beverages.

S 577 seeks to give state attorneys more power to enforce their laws. It does this by giving states authority to bring actions in federal court for violation of state alcohol laws. It creates federal question jurisdiction in actions based on state law!

The key language of the S 577 reads: "If the attorney general of a State has reasonable cause to believe that a person is engaged in, is about to engage in, or has engaged in, any act that would constitute a violation of a State law regulating the importation or transportation of any intoxicating liquor, the attorney general may bring a civil action in accordance with this section for injunctive relief ... The district courts of the United States shall have jurisdiction over any action brought under this section."

It further enables states to obtain preliminary injunctions, without posting bond. And upon trial, some evidential procedures are relaxed, and defendants are not allowed trial by jury.

Thus, nothing in S 577 IS prohibits the sale of alcohol on the Internet. However, if an Internet distributor of alcohol sells into a state in violation of that state's alcohol laws, S 577 would make it much easier for that state to bring a legal action to stop the illegal activity.

Status. S 577 was introduced in the Senate on March 10, 1999. The previous day, the Senate Judiciary Committee held a hearing on Internet alcohol sales. The Senate has approved the bill, but as part of the juvenile justice bill passed on May 20. Sen. Robert Byrd offered an amend to S 254 which included language identical to that in S 577 IS. The Senate approved this amendment by a vote of 80 to 17.

The House version of this bill, HR 2031, was introduced on June 7, and passed on August 3.

Legislative History with Links to Related Materials.


HR 2031, the Twenty-First Amendment Enforcement Act

Sponsor. Rep. Joe Scarborough (R-FL). Cosponsors. James Sensenbrenner (R-WI), Wm. Delahunt (D-MA), Chris Cannon (R-UT), Bob Barr (R-GA), Benj. Gilman (R-NY), Rod Blagojevich (D-IL), Gene Green (D-TX), Tom Barrett (D-WI), Carolyn Kilpartick (D-MI), Spencer Bachus (R-AL), Ronnie Shows (D-MS), Gerald Kleczka (D-WI), John Duncan (R-TN), Virgil Goode (D-VA), Ken Lucas (D-KY), Owen Pickett (D-VA), Bob Stump (R-AZ), Nick Rahall (D-WV), Jay Dickey (R-AR), Robert Ehrlich (R-MD), Bob Etheridge (D-NC), Mike McIntyre (D-NC), Max Sandlin (D-TX), Martin Meehan (D-MA), James Barcia (D-MI), Jim Turner (D-TX), Paul Gillmor (R-OH), Gary Miller (R-CA), Ike Skelton (D-MO), Richard Baker (R-LA), Dale Kildee (D-MI), Gil Gutknecht (R-MN), Earl Hilliard (D-AL), John Baldacci (D-ME), Frank Lucas (R-OK), Allen Boyd (D-FL), Lindsey Graham (R-SC), Peter Hoekstra (R-MI), William Lipinski (D-IL), David Bonior (D-MI), John Peterson (R-PA), Patrick Kennedy (D-RI), Jim Nussle (R-IA), and Michael Capuano (D-MA).

19 Republicans. 26 Democrats. None are from California, Oregon, or Washington; almost all are from east of the Mississippi.

Summary. HR 2031 IH is the House version of S 577. See, above summary of S 577.

Status. This bill was introduced on June 7, 1999. Rep. Scarborough sought unsuccessful to have the Rules Committee allow him to offer HR 2031 as an amendment to the juvenile crime bill. The House Judiciary Committee approved an amendment in the nature of a substitute on July 20, 1999. The full House approved the bill, with further amendments on August 3, 1999.

Legislative History with Links to Related Materials.


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