73d Congress ) HOUSE OE EEPEESENTATIYES ( Eeport 
2d Session j ( No. 276 
TO MAKE INAPPLICABLE IN PUEETO EICO AND VIKGIN 
ISLANDS CEETAIN LAWS EELATING TO INTOXICATING 
LIQUOE 
January 9, 1934.—Referred to the House Calendar and ordered to be printed 
Mr. McDuffie, from the Committee on Insular Affairs, submitted 
the following 
EEPORT 
[To accompany H.R. 6574] 
The Committee on Insular Affairs, to whom was referred the bill 
(H.E. 6574) to make inapplicable in Puerto Eico and the Virgin 
Islands certain Federal laws relating to intoxicating liquors, having 
had the same under consideration, reports it back to the House with¬ 
out amendment and recommends that the bill do pass. 
The purpose of this bill is to remove the restrictions in Federal 
prohibition laws imposed upon Puerto Eico and the Virgin Islands 
so that their local police power may be exercised to prohibit or regu¬ 
late, as these possessions choose, the intoxicating liquor traffic within 
their own borders. This action is consistent with the repeal of the 
eighteenth amendment by the twenty-first amendment, which turned 
back to the States the power to prohibit or regulate intoxicants. 
Section 1 of the bill relates to Puerto Eico and removes the prohi¬ 
bition on intoxicants contained in its organic act. Since the Attorney 
General has ruled that the National Prohibition Act is still in force 
in places over which the Federal Government has power, found in 
provisions of the Constitution other than the eighteenth amendment, 
to regulate intoxicants, it is necessary to nullify the effect of the 
National Prohibition Act so that that act will not stand in the way 
of whatever legislation the insular legislature proposes. 
Paragraph 814 of the Tariff Act of 1930 prohibits importation of 
articles containing alcohol dutiable under schedule 8 of that act 
except in pursuance of a permit issued by the Commissioner of In¬ 
dustrial Alcohol. Since doubt has been expressed with respect to 
the enforceability of this provision (see Joint Hearings Before the 
Committee on Ways and Means and the Committee on Finance on 
Tax on Intoxicating Liquors, pp. 323-324), your committee deems it 
2 EEPEAL LIQUOR LAWS 1ST PUERTO RICO AND VIRGIN ISLANDS 
wise to remove this uncertainty by expressly eliminating the applica¬ 
bility of this provision to Puerto Rico. 
The act of March 20, 1933, which authorized the manufacture and 
sale of beverages containing 3.2 percent of alcohol or less, contained 
regulatory features with respect to such beverages which, by their 
terms, might be construed to apply to Puerto Rico. Consistently 
with the policy of permitting Puerto Rico to manage its internal 
affairs in this matter, your committee recommends the express limi¬ 
tation of the application of this act in Puerto Rico. 
This bill in nowise relates to the taxation in Puerto Rico of liquors 
under Federal law, to taxation in the United States of imported liquors 
from Puerto Rico, or to industrial alcohol regulation. These matters 
are more properly within the jurisdiction of other committees, which 
prepare legislation relating to the entire United States. It might be 
pointed out, however, that the provisions of the Webb-Kenyon Act, 
prohibiting shipment of intoxicants into dry jurisdictions apply to 
Puerto Rico and are not changed by this bill. 
Section 2 of the bill relates to the Virgin Islands and the general 
observations made with respect to Puerto Rico in this report apply 
to that possession as well. Since no prohibition law is contained in 
the organic act of the Virgin Islands and since the tariff act and the 
beer act do not apply therein, it is not necessary to amend such acts 
in this bill. 
It is believed that this bill, if enacted, will restore to these posses¬ 
sions autonomy in what is a local matter and will bring prosperity to 
certain of their industries and needed revenue to their treasuries. 
The following is respectfully suggested to the House for its consid¬ 
eration: 
SECTION 37 OP THE ORGANIC ACT OP PUERTO RICO, RELATING TO THE LEGISLATIVE 
AUTHORITY OP THE POSSESSION 
Sec. 37. That the legislative authority herein provided shall extend to all 
matters of a legislative character not locally inapplicable, including power to 
create, consolidate, and reorganize the municipalities so far as may be necessary, 
and to provide and repeal laws and ordinances therefor; also the power to alter, 
amend, modify, or repeal any or all laws and ordinances of every character now 
in force in Puerto Rico or municipality or district thereof insofar as such altera¬ 
tion, amendment, modification, or repeal may be consistent with the provisions 
of this act. 
POLICE POWER OP THE PUERTO RICAN LEGISLATURE 
An excerpt from the opinion of the Circuit Court of Appeals in the case of 
Camunas et al. v. Porto Rico Ry., Light & Power Co. ([1921], 272 Fed. 924, 928). 
By section 37, the legislature is given broad and inclusive powers: 
“The legislative authority herein provided shall extend to all matters of a 
legislative character not locally inapplicable, including power to create, consoli¬ 
date, and reorganize the municipalities so far as may be necessary, and to provide 
and repeal laws and ordinances therefor; also the power to alter, amend, modify, 
or repeal any or all laws and ordinances of every character now in force in Porto 
Rico or municipality or district thereof in so far as such alteration, amendment, 
modification, or repeal may be consistent with the provisions of this act.” 
Manifestly this grant of power is nearly, perhaps quite, the equivalent of the 
power of a State legislature to enact all laws not inconsistent with the Federal 
or State constitution. The organic act is the practical equivalent of a State 
constitution. The fact that it remains subject to amendment or repeal by Cong- 
gress is for present purposes immaterial. In that regard, Congress stands as to 
Puerto Rico in the place of the people of a State, acting directly or indirectly 
through a constitutional convention. 
REPEAL LIQUOR LAWS IN PUERTO RICO AND VIRGIN ISLANDS 3 
By section 58, all inconsistent laws are repealed, and all existing, consistent 
laws are retained, until the legislature shall be new and consistent legislation 
otherwise provide. It reads as follows: 
“All laws or parts of laws applicable to Puerto Rico not in conflict with any 
of the provisions of this act, including the laws relating to tariffs, customs, and 
duties on importations into Puerto Rico prescribed by the act of Congress en¬ 
titled, ‘An act temporarily to provide revenues and a civil government for Puerto 
Rico, and for other purposes’, approved April 12, 1900, are hereby continued in 
effect and all laws and parts of laws inconsistent with the provisions of this act 
are hereby repealed.” 
That Congress intended the Puerto Rican Legislature to have full police powers 
is apparent, not only from the language of section 37, supra, but expressed in 
emphatic form in the following provision in section 2—the section containing the 
bill of rights: 
“Nothing contained in this act shall be construed to limit the power of the 
legislature to enact laws for the protection of the lives, health, or safety of 
employees.” 
TWENTIETH PARAGRAPH OF SECTION 2 OF THE ORGANIC ACT OF PUERTO RICO, 
APPROVED MARCH 2, 1917 
That one year after the approval of this act and thereafter it shall be unlawful 
to import, manufacture, sell, or give away, or to expose for sale or gift any intox¬ 
icating drink or drug: Provided, That the legislature may authorize and regulate 
importation, manufacture, and sale of said liquors and drugs for medicinal, 
sacramental, industrial, and scientific uses only. The penalty for violations of 
this provision with reference to intoxicants shall be a fine of not less than $25 for 
the first offense, and for second and subsequent offenses a fine of not less than $50 
and imprisonment for not less than one month or more than one year: And pro¬ 
vided further, That at any general election within five years after the approval of 
this act this provision may, upon petition of not less than ten per centum of the 
qualified electors of Porto Rico, be submitted to a vote of the qualified electors 
of Porto Rico, and if a majority of all the qualified electors of Porto Rico voting 
upon such question shall vote to repeal this provision, it shall thereafter not be in 
force and effect; otherwise it shall be in full force and effect. 
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