[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 577 Reported in Senate (RS)]






                                                       Calendar No. 438
106th CONGRESS
  2d Session
                                 S. 577

 To provide for injunctive relief in Federal district court to enforce 
 State laws relating to the interstate transportation of intoxicating 
                                liquor.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 10, 1999

Mr. Hatch (for himself, Mr. DeWine, Mr. Conrad, Mr. Byrd, Mr. Robb, Mr. 
 Kohl, Mr. Hutchinson, Mr. Thurmond, Mrs. Hutchison, Mr. Cleland, Mr. 
  Dorgan, Mr. Bunning, and Mr. Helms) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

                             March 2, 2000

                Reported by Mr. Hatch, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To provide for injunctive relief in Federal district court to enforce 
 State laws relating to the interstate transportation of intoxicating 
                                liquor.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Twenty-First Amendment 
Enforcement Act''.</DELETED>

<DELETED>SEC. 2. SHIPMENT OF INTOXICATING LIQUOR INTO STATE IN 
              VIOLATION OF STATE LAW.</DELETED>

<DELETED>    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:</DELETED>

<DELETED>``SEC. 2. INJUNCTIVE RELIEF IN FEDERAL DISTRICT 
              COURT.</DELETED>

<DELETED>    ``(a) Definitions.--In this section--</DELETED>
        <DELETED>    ``(1) the term `attorney general' means the 
        attorney general or other chief law enforcement officer of a 
        State, or the designee thereof;</DELETED>
        <DELETED>    ``(2) the term `intoxicating liquor' means any 
        spirituous, vinous, malted, fermented, or other intoxicating 
        liquor of any kind;</DELETED>
        <DELETED>    ``(2) 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</DELETED>
        <DELETED>    ``(3) 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.</DELETED>
<DELETED>    ``(b) Action by State Attorney General.--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 (including a preliminary or permanent injunction or other order) 
against the person, as the attorney general determines to be necessary 
to--</DELETED>
        <DELETED>    ``(1) restrain the person from engaging, or 
        continuing to engage, in the violation; and</DELETED>
        <DELETED>    ``(2) enforce compliance with the State 
        law.</DELETED>
<DELETED>    ``(c) Federal Jurisdiction.--</DELETED>
        <DELETED>    ``(1) In general.--The district courts of the 
        United States shall have jurisdiction over any action brought 
        under this section.</DELETED>
        <DELETED>    ``(2) Venue.--An action under this section may be 
        brought only in accordance with section 1391 of title 28, 
        United States Code.</DELETED>
<DELETED>    ``(d) Requirements for Injunctions and Orders.--</DELETED>
        <DELETED>    ``(1) In general.--In any action brought under 
        this section, upon a proper showing by the attorney general of 
        the State, the court shall issue a preliminary or permanent 
        injunction or other order without requiring the posting of a 
        bond.</DELETED>
        <DELETED>    ``(2) Notice.--No preliminary or permanent 
        injunction or other order may be issued under paragraph (1) 
        without notice to the adverse party.</DELETED>
        <DELETED>    ``(3) Form and scope of order.--Any preliminary or 
        permanent injunction or other order entered in an action 
        brought under this section shall--</DELETED>
                <DELETED>    ``(A) set forth the reasons for the 
                issuance of the order;</DELETED>
                <DELETED>    ``(B) be specific in terms;</DELETED>
                <DELETED>    ``(C) describe in reasonable detail, and 
                not by reference to the complaint or other document, 
                the act or acts to be restrained; and</DELETED>
                <DELETED>    ``(D) be binding only upon--</DELETED>
                        <DELETED>    ``(i) the parties to the action 
                        and the officers, agents, employees, and 
                        attorneys of those parties; and</DELETED>
                        <DELETED>    ``(ii) persons in active 
                        cooperation or participation with the parties 
                        to the action who receive actual notice of the 
                        order by personal service or 
                        otherwise.</DELETED>
<DELETED>    ``(e) Consolidation of Hearing With Trial on Merits.--
</DELETED>
        <DELETED>    ``(1) In general.--Before or after the 
        commencement of a hearing on an application for a preliminary 
        or permanent injunction or other order under this section, the 
        court may order the trial of the action on the merits to be 
        advanced and consolidated with the hearing on the 
        application.</DELETED>
        <DELETED>    ``(2) Admissibility of evidence.--If the court 
        does not order the consolidation of a trial on the merits with 
        a hearing on an application described in paragraph (1), any 
        evidence received upon an application for a preliminary or 
        permanent injunction or other order that would be admissible at 
        the trial on the merits shall become part of the record of the 
        trial and shall not be required to be received again at the 
        trial.</DELETED>
<DELETED>    ``(f) No Right to Trial by Jury.--An action brought under 
this section shall be tried before the court.</DELETED>
<DELETED>    ``(g) Additional Remedies.--</DELETED>
        <DELETED>    ``(1) In general.--A remedy under this section is 
        in addition to any other remedies provided by law.</DELETED>
        <DELETED>    ``(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.''.</DELETED>

SECTION 1. TWENTY-FIRST AMENDMENT ENFORCEMENT.

    (a) Shipment of Intoxicating Liquor 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) 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.
            ``(3) Form of relief.--An action under this section is 
        limited to actions seeking injunctive relief (a preliminary 
        and/or permanent injunction).
            ``(4) No right to jury trial.--An action under this section 
        shall be tried before the court.
    ``(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 to restrain a violation of this section. A proper 
        showing under this paragraph shall require that a State prove 
        by a preponderance of the evidence that a violation of State 
        law as described in subsection (b) has taken place or is taking 
        place.
            ``(2) Additional showing for preliminary injunction.--No 
        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.
            ``(3) Notice.--No preliminary or permanent injunction may 
        be issued under paragraph (1) without notice to the adverse 
        party and an opportunity for a hearing.
            ``(4) Form and scope of order.--Any preliminary or 
        permanent injunction entered in an action brought under this 
        section shall--
                    ``(A) set forth the reasons for the issuance of the 
                order;
                    ``(B) be specific in 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.
            ``(5) Admissibility of evidence.--In a hearing on an 
        application for a permanent injunction, any evidence previously 
        received on an application for a preliminary injunction in 
        connection with the same civil action and that would otherwise 
        be admissible, may be made a part of the record of the hearing 
        on the permanent injunction.
    ``(e) Rules of Construction.--This section shall be construed only 
to extend the jurisdiction of Federal courts in connection with State 
law that is a valid exercise of power vested in the States--
            ``(1) under the twenty-first article of amendment to the 
        Constitution of the United States as such article of amendment 
        is interpreted by the Supreme Court of the United States 
        including interpretations in conjunction with other provisions 
        of the Constitution of the United States; and
            ``(2) under the first section herein as such section is 
        interpreted by the Supreme Court of the United States; but 
        shall not be construed to grant to States any additional power.
    ``(f) 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 section 
may be construed to modify or supersede the operation of the Internet 
Tax Freedom Act (47 U.S.C. 151 note).
    ``(b) Inapplicability to Service Providers.--Nothing in this 
section may be construed to--
            ``(1) authorize any injunction against an interactive 
        computer service (as defined in section 230(f) of the 
        Communications Act of 1934 (47 U.S.C. 230(f)) used by another 
        person to engage in any activity that is subject to this Act;
            ``(2) authorize any injunction against an electronic 
        communications 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; or
            ``(3) authorize an injunction prohibiting the advertising 
        or marketing of any intoxicating liquor by any person in any 
        case in which such advertising or marketing is lawful in the 
        jurisdiction from which the importation, transportation or 
        other conduct to which this Act applies originates.''.

SEC. 4. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall become effective 
90 days after the date of this enactment of this Act.

SEC. 5. STUDY.

    The Attorney General shall carry out the study to determine the 
impact of this Act and shall submit the results of such study not later 
than 180 days after the enactment of this Act.
                                     

                                                       Calendar No. 438

106th CONGRESS

  2d Session

                                 S. 577

_______________________________________________________________________

                                 A BILL

 To provide for injunctive relief in Federal district court to enforce 
 State laws relating to the interstate transportation of intoxicating 
                                liquor.

_______________________________________________________________________

                             March 2, 2000

                       Reported with an amendment