Twenty-First Amendment Enforcement Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Twenty-First Amendment Enforcement 
Act''.

SEC. 2. SHIPMENT OF INTOXICATING LIQUOR INTO STATE IN VIOLATION OF 
              STATE LAW.

    The Act entitled ``An Act divesting intoxicating liquors of their 
interstate character in certain cases'', approved March 1, 1913 
(commonly known as the ``Webb-Kenyon Act'') (27 U.S.C. 122) is amended 
by adding at the end the following:

``SEC. 2. INJUNCTIVE RELIEF IN FEDERAL DISTRICT COURT.

    ``(a) Definitions.--In this section--
            ``(1) the term `attorney general' means the attorney 
        general or other chief law enforcement officer of a State, or 
        the designee thereof;
            ``(2) the term `intoxicating liquor' means any spirituous, 
        vinous, malted, fermented, or other intoxicating liquor of any 
        kind;
            ``(3) the term `person' means any individual and any 
        partnership, corporation, company, firm, society, association, 
        joint stock company, trust, or other entity capable of holding 
        a legal or beneficial interest in property, but does not 
        include a State or agency thereof; and
            ``(4) the term `State' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, or any territory or possession of the United States.
    ``(b) Action by State Attorney General.--If the attorney general 
has reasonable cause to believe that a person is engaged 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 (including a preliminary or 
permanent injunction or other order) against the person, as the 
attorney general determines to be necessary to--
            ``(1) restrain the person from engaging, or continuing to 
        engage, in the violation; and
            ``(2) enforce compliance with the State law.
    ``(c) Federal Jurisdiction.--
            ``(1) In general.--The district courts of the United States 
        shall have jurisdiction over any action brought under this 
        section by an attorney general against any person, except one 
        licensed or otherwise authorized to produce, sell, or store 
        intoxicating liquor in such State.
            ``(2) Venue.--An action under this section may be brought 
        only in accordance with section 1391 of title 28, United States 
        Code, or in the district in which the recipient of the 
        intoxicating liquor resides or is found.
    ``(d) Requirements for Injunctions and Orders.--
            ``(1) In general.--In any action brought under this 
        section, upon a proper showing by the attorney general of the 
        State, the court may issue a preliminary or permanent 
        injunction or other order to restrain a violation of this 
        section. A proper showing under this paragraph shall require 
        clear and convincing evidence that a violation of State law as 
        described in subsection (b) has taken place. In addition, no 
        temporary restraining order or preliminary injunction may be 
        granted except upon--
                    ``(A) evidence demonstrating the probability of 
                irreparable injury if injunctive relief is not granted; 
                and
                    ``(B) evidence supporting the probability of 
                success on the merits.
            ``(2) Notice.--No preliminary injunction or permanent 
        injunction or other order may be issued under paragraph (1) 
        without notice to the adverse party and an opportunity for a 
        hearing.
            ``(3) Form and scope of order.--Any preliminary or 
        permanent injunction or other order entered in an action 
        brought under this section shall--
                    ``(A) set forth the reasons for the issuance of the 
                order;
                    ``(B) be specific in its terms;
                    ``(C) describe in reasonable detail, and not by 
                reference to the complaint or other document, the act 
                or acts sought to be restrained; and
                    ``(D) be binding upon--
                            ``(i) the parties to the action and the 
                        officers, agents, employees, and attorneys of 
                        those parties; and
                            ``(ii) persons in active concert or 
                        participation with the parties to the action 
                        who receive actual notice of the order by 
                        personal service or otherwise.
    ``(e) Additional Remedies.--
            ``(1) In general.--A remedy under this section is in 
        addition to any other remedies provided by law.
            ``(2) State court proceedings.--Nothing in this section may 
        be construed to prohibit an authorized State official from 
        proceeding in State court on the basis of an alleged violation 
        of any State law.

``SEC. 3. GENERAL PROVISIONS.

    ``(a) Effect on Internet Tax Freedom Act.--Nothing in this Act may 
be construed to modify or supersede the operation of the Internet Tax 
Freedom Act (47 U.S.C. 151 note).
    ``(b) Enforcement of Twenty-First Amendment.--It is the purpose of 
this Act to assist the States in the enforcement of section 2 of the 
twenty-first article of amendment to the Constitution of the United 
States, and not to impose an unconstitutional burden on interstate 
commerce in violation of article I, section 8, of the Constitution of 
the United States. No State may enforce under this Act a law regulating 
the importation or transportation of any intoxicating liquor that 
unconstitutionally discriminates against interstate commerce by out-of-
State sellers by favoring local industries, erecting barriers to 
competition, and constituting mere economic protectionism.
    ``(c) Support for Internet and Other Interstate Commerce.--Nothing 
in this Act may be construed--
            ``(1) to permit State regulation or taxation of Internet 
        services or any other related interstate telecommunications 
        services; or
            ``(2) to authorize any injunction against--
                    ``(A) an interactive computer service (as defined 
                in section 230(f) of the Communications Act of 1934 (47 
                U.S.C. 230(f)); or
                    ``(B) electronic communication service (as defined 
                in section 2510(15) of title 18, United States Code) 
                used by another person to engage in any activity that 
                is subject to this Act.''.

SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENT.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
and the amendment made by this Act shall take effect on the date of the 
enactment of this Act.
    (b) Application of Amendment.--The amendment made by this Act shall 
apply only with respect to the importation or transportation of any 
intoxicating liquor occurring after--
            (1) October 31, 1999, or the expiration of the 90-day 
        period beginning on the date of the enactment of this Act, 
        whichever is earlier, if this Act is enacted before November 1, 
        1999; or
            (2) the date of the enactment of this Act if this Act is 
        enacted after October 31, 1999.

SEC. 4. STUDY.

    The Attorney General shall submit to the Congress the results of a 
study to determine the impact of this Act. The Attorney General shall 
carry out the study required by subsection (a) and shall submit the 
results of such study not later than 180 days after the date of the 
enactment of this Act.

            Passed the House of Representatives August 3, 1999.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

                              By Martha C. Morrison,

                                                          Deputy Clerk.

Summary: Twenty-First Amendment Enforcement Act - Amends the Webb-Kenyon Act to authorize a State attorney general who has reasonable cause to believe that a person is engaging in any act that would constitute a violation of State law regulating the importation or transportation of any intoxicating liquor, to bring a civil action for injunctive relief to: (1) restrain the person from engaging in the violation. And (2) enforce compliance with State law. Grants US district courts jurisdiction over any action brought by a State AG against any person, except one licensed or otherwise authorized to produce, sell, or store intoxicating liquor in such State. Permits such an action to be brought only in accordance with Federal judicial code provisions regarding venue, or in the district in which the recipient of such liquor resides or is found. Authorizes the court, in such action and upon a proper showing by the State AG, to issue a preliminary or permanent injunction or other order to restrain a violation. Specifies that a proper showing shall require clear and convincing evidence that a violation of State law regulating the importation or transportation of intoxicating liquor has taken place, and that no temporary restraining order or preliminary injunction may be granted except upon evidence: (1) demonstrating the probability of irreparable injury if injunctive relief is not granted. And (2) supporting the probability of success on the merits. Prohibits such issuance without notice to the adverse party and an opportunity for a hearing. Sets forth provisions regarding the form and scope of the order. Specifies that nothing in this Act may be construed to modify or supersede the operation of the Internet Tax Freedom Act. Prohibits any State from enforcing under this Act a law regulating the importation or transportation of intoxicating liquor that unconstitutionally discriminates against interstate commerce by out-of-State sellers by favoring local industries, erecting barriers to competition, and constituting mere economic protectionism. Provides that nothing in this Act may be construed to: (1) permit State regulation or taxation of Internet services or any other related interstate telecommunications services. Or (2) authorize any injunction against an interactive computer service or against an electronic communication service used by another person to engage in any activity that is subject to this Act. Provides that the amendment made by this Act shall apply only with respect to the importation or transportation of intoxicating liquor occurring after: (1) October 31, 1999, or the expiration of the 90-day period beginning on the date of this Act's enactment, whichever is earlier, if this Act is enacted before November 1, 1999. Or (2) the date of this Act's enactment if this Act is enacted after October 31, 1999. Directs the Attorney General to conduct and report to Congress on the impact of this Act.