Statement in Congressional Record by Sen. Orrin Hatch (R-UT). Re: S 577, the Twenty-First Amendment Enforcement Act, a bill affecting interstate alcohol sales. Date: March 10, 1999. Source: Congressional Record, March 10, 1999, page S2509.

THE TWENTY-FIRST AMENDMENT ENFORCEMENT ACT

Mr. HATCH. Mr. President, today I am proud to introduce the Twenty-First Amendment Enforcement Act. This legislation will provide a mechanism enabling States to more effectively enforce their laws regulating the interstate shipment of alcoholic beverages.

Interstate shipments of alcohol directly to consumers are increasing exponentially. Unfortunately, along with that growing commerce, problems associated with that trade are also growing. While I certainly believe that interstate commerce should be encouraged, and while I do not want small businesses stifled by unnecessary or overly burdensome and complex regulations, I do not subscribe to the notion that purveyors of alcohol are free to avoid State laws which are consistent with the power bestowed upon them by the Twenty-First Amendment.

All States, including the State of Utah, need to be sure that the liquor that is brought into their State is labelled properly and subject to certain quality control standards. States need to protect their citizens from consumer fraud and have a claim to the tax revenue generated by the sale of such goods. And of the utmost importance, States need to ensure that minors are not provided with unfettered access to alcohol. Unfortunately, indiscriminate direct sales of alcohol have opened a sophisticated generation of minors to the perils of alcohol abuse.

I can tell you that my home State of Utah, which has some of the strictest controls in the nation on the distribution of alcohol, is not immune from the dangers of direct sales. A recent story which ran on KUTV in Salt Lake City showed how a thirteen year old was able to purchase beer over the internet and have it shipped directly to her home--no questions asked. If a thirteen year old is capable of ordering beer and having it delivered by merely borrowing her brother's credit card and making a few clicks with her mouse, there is something very wrong with the level of control that is being exercised over these sales. Of course the Utah case is not an isolated example. Stings set up by authorities in New York and Maryland have also shown how easy it is for minors to obtain alcohol.

Debate over the control of alcoholic beverages has been raging for as long as this country has existed. Prior to 1933, every time individuals or legislative bodies engaged in efforts to control the flow and consumption of alcohol, whether by moral persuasion, legislation or Constitutional Prohibition, others were equally determined to repeal, circumvent or ignore those barriers. However, the Twenty-First Amendment did, for a time, create an ordered system for the distribution of alcohol.

The Twenty-First Amendment was ratified in 1933. That amendment ceded to the States the right to regulate the importation and transportation of alcoholic beverages across their borders. By virtue of that grant of authority, each State created its own unique regulatory scheme to control the flow of alcohol. Some set up State stores to effectuate control of the shipment into, and dissemination of alcohol within, their State. Others refrained from direct control of the product, but set up other systems designed to monitor the shipments and ensure compliance with its laws. But whatever the type of State system enacted, the purpose was much the same: to protect its citizens and ensure that its laws were obeyed.

Although not perfect, the systems set up by the States worked reasonably well for many years. However, modern technology has opened the door for abuse and created the need for further governmental action to address those abuses. No longer must a State prosecute just an errant neighborhood retailer for selling to a minor--now, the ones selling to minors and others in violation of a State's regulatory laws are a continent away. A small winery can create its own web page and accept orders over the internet; a large retailer can advertise nationally in the New York Times and accept orders over the phone; an ad can be placed in a magazine with a national circulation offering sales through an 800 number.