IIB

106TH CONGRESS

1ST SESSION H. R. 2031

IN THE SENATE OF THE UNITED STATES

AUGUST 4, 1999

Received; read twice and referred to the Committee on the Judiciary

AN ACT

To provide for injunctive relief in Federal district court to

enforce State laws relating to the interstate transportation of intoxicating liquor.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Twenty-First Amend3 ment Enforcement Act’’.

4 SEC. 2. SHIPMENT OF INTOXICATING LIQUOR INTO STATE

5 IN VIOLATION OF STATE LAW.

6 The Act entitled ‘‘An Act divesting intoxicating liq7 uors of their interstate character in certain cases’’, ap8 proved March 1, 1913 (commonly known as the ‘‘Webb9 Kenyon Act’’) (27 U.S.C. 122) is amended by adding at

10 the end the following:

11 ‘‘SEC. 2. INJUNCTIVE RELIEF IN FEDERAL DISTRICT

12 COURT.

13 ‘‘(a) DEFINITIONS.—In this section—

14 ‘‘(1) the term ‘attorney general’ means the at15 torney general or other chief law enforcement officer

16 of a State, or the designee thereof;

17 ‘‘(2) the term ‘intoxicating liquor’ means any

18 spirituous, vinous, malted, fermented, or other in19 toxicating liquor of any kind;

20 ‘‘(3) the term ‘person’ means any individual

21 and any partnership, corporation, company, firm, so22 ciety, association, joint stock company, trust, or

23 other entity capable of holding a legal or beneficial

24 interest in property, but does not include a State or

25 agency thereof; and
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1 ‘‘(4) the term ‘State’ means any State of the

2 United States, the District of Columbia, the Com3 monwealth of Puerto Rico, or any territory or pos4 session of the United States.

5 ‘‘(b) ACTION BY STATE ATTORNEY GENERAL.—If

6 the attorney general has reasonable cause to believe that

7 a person is engaged in, or has engaged in, any act that

8 would constitute a violation of a State law regulating the

9 importation or transportation of any intoxicating liquor,

10 the attorney general may bring a civil action in accordance

11 with this section for injunctive relief (including a prelimi12 nary or permanent injunction or other order) against the

13 person, as the attorney general determines to be necessary

14 to—

15 ‘‘(1) restrain the person from engaging, or con16 tinuing to engage, in the violation; and

17 ‘‘(2) enforce compliance with the State law.

18 ‘‘(c) FEDERAL JURISDICTION.—

19 ‘‘(1) IN GENERAL.—The district courts of the

20 United States shall have jurisdiction over any action

21 brought under this section by an attorney general

22 against any person, except one licensed or otherwise

23 authorized to produce, sell, or store intoxicating liq24 uor in such State.
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1 ‘‘(2) VENUE.—An action under this section

2 may be brought only in accordance with section

3 1391 of title 28, United States Code, or in the dis4 trict in which the recipient of the intoxicating liquor

5 resides or is found.

6 ‘‘(d) REQUIREMENTS FOR INJUNCTIONS AND OR7 DERS.—

8 ‘‘(1) IN GENERAL.—In any action brought

9 under this section, upon a proper showing by the at10 torney general of the State, the court may issue a

11 preliminary or permanent injunction or other order

12 to restrain a violation of this section. A proper show13 ing under this paragraph shall require clear and con14 vincing evidence that a violation of State law as de15 scribed in subsection (b) has taken place. In addi16 tion, no temporary restraining order or preliminary

17 injunction may be granted except upon—

18 ‘‘(A) evidence demonstrating the prob19 ability of irreparable injury if injunctive relief is

20 not granted; and

21 ‘‘(B) evidence supporting the probability of

22 success on the merits.

23 ‘‘(2) NOTICE.—No preliminary injunction or

24 permanent injunction or other order may be issued
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1 under paragraph (1) without notice to the adverse

2 party and an opportunity for a hearing.

3 ‘‘(3) FORM AND SCOPE OF ORDER.—Any pre4 liminary or permanent injunction or other order en5 tered in an action brought under this section shall—

6 ‘‘(A) set forth the reasons for the issuance

7 of the order;

8 ‘‘(B) be specific in its terms;

9 ‘‘(C) describe in reasonable detail, and not

10 by reference to the complaint or other docu11 ment, the act or acts sought to be restrained;

12 and

13 ‘‘(D) be binding upon—

14 ‘‘(i) the parties to the action and the

15 officers, agents, employees, and attorneys

16 of those parties; and

17 ‘‘(ii) persons in active concert or par18 ticipation with the parties to the action

19 who receive actual notice of the order by

20 personal service or otherwise.

21 ‘‘(e) ADDITIONAL REMEDIES.—

22 ‘‘(1) IN GENERAL.—A remedy under this sec23 tion is in addition to any other remedies provided by

24 law.
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1 ‘‘(2) STATE COURT PROCEEDINGS.—Nothing in

2 this section may be construed to prohibit an author3 ized State official from proceeding in State court on

4 the basis of an alleged violation of any State law.

5 ‘‘SEC. 3. GENERAL PROVISIONS.

6 ‘‘(a) EFFECT ON INTERNET TAX FREEDOM ACT.—

7 Nothing in this Act may be construed to modify or super8 sede the operation of the Internet Tax Freedom Act (47

9 U.S.C. 151 note).

10 ‘‘(b) ENFORCEMENT OF TWENTY-FIRST AMEND11 MENT.—It is the purpose of this Act to assist the States

12 in the enforcement of section 2 of the twenty-first article

13 of amendment to the Constitution of the United States,

14 and not to impose an unconstitutional burden on inter15 state commerce in violation of article I, section 8, of the

16 Constitution of the United States. No State may enforce

17 under this Act a law regulating the importation or trans18 portation of any intoxicating liquor that unconstitutionally

19 discriminates against interstate commerce by out-of-State

20 sellers by favoring local industries, erecting barriers to

21 competition, and constituting mere economic protec22 tionism.

23 ‘‘(c) SUPPORT FOR INTERNET AND OTHER INTER24 STATE COMMERCE.—Nothing in this Act may be

25 construed—
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1 ‘‘(1) to permit State regulation or taxation of

2 Internet services or any other related interstate tele3 communications services; or

4 ‘‘(2) to authorize any injunction against—

5 ‘‘(A) an interactive computer service (as

6 defined in section 230(f) of the Communica7 tions Act of 1934 (47 U.S.C. 230(f)); or

8 ‘‘(B) electronic communication service (as

9 defined in section 2510(15) of title 18, United

10 States Code) used by another person to engage

11 in any activity that is subject to this Act.’’.

12 SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENT.

13 (a) EFFECTIVE DATE.—Except as provided in sub14 section (b), this Act and the amendment made by this Act

15 shall take effect on the date of the enactment of this Act.

16 (b) APPLICATION OF AMENDMENT.—The amendment

17 made by this Act shall apply only with respect to the im18 portation or transportation of any intoxicating liquor oc19 curring after—

20 (1) October 31, 1999, or the expiration of the

21 90-day period beginning on the date of the enact22 ment of this Act, whichever is earlier, if this Act is

23 enacted before November 1, 1999; or

24 (2) the date of the enactment of this Act if this

25 Act is enacted after October 31, 1999.
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1 SEC. 4. STUDY.

2 The Attorney General shall submit to the Congress

3 the results of a study to determine the impact of this Act.

4 The Attorney General shall carry out the study required

5 by subsection (a) and shall submit the results of such

6 study not later than 180 days after the date of the enact7 ment of this Act.

Passed the House of Representatives August 3,

1999.

Attest: JEFF TRANDAHL,

Clerk.

By MARTHA C. MORRISON,

Deputy Clerk.