Congress OK’s Bill Against Interstate Liquor Distribution by Marketers

Businesses that engage in the illegal interstate distribution of alcoholic products are the target of legislation passed unanimously by the Senate on Wednesday. President Clinton is expected to sign into law the Twenty-First Amendment Enforcement Act, which authorizes state law enforcement authorities to obtain federal court injunctions against such businesses.

The House approved the measure earlier this month by a vote of 371-1.

Because wineries and some direct marketers often ship alcoholic products across state lines, those opposed to the practice see it as irresponsible marketing, particularly because there is no real way determine if the recipient is of legal drinking age. Others criticize it as a way for some marketers to avoid paying taxes on their shipments.

Originally the bill, sponsored by Sen. Orrin Hatch (R-UT), would have imposed strict limits on the marketing of alcoholic beverages. Negotiations with lawmakers by the liquor, wine and direct marketing industries resulted in the removal of those limitations, said Jerry Cerasale, the DMA’s senior vice president, Government Affairs.