The Federal National Minimum Drinking Age Act of 1984 required all States to raise their minimum purchase and public possession age to 21 or face a reduction in highway funds. The Department of Transportation has determined that all States are in compliance with this law. During June and July 1991, interviews were conducted with State alcoholic beverage control and/or State enforcement agency officials from all 50 States and the District of Columbia. Also, all State alcohol control laws and regulations pertaining to youth were reviewed. The study found that although it is illegal to sell alcoholic beverages to minors, minors in many States can legally purchase, attempt to purchase, possess, consume, and sell alcohol and enter drinking establishments. In enforcing youth alcohol laws, States are hindered by budget and staff reductions, low priority of youth alcohol enforcement, and the lack of beverage control agencies' jurisdiction over minors. Although vendors who sell to minors often are fined or have their licenses suspended, license revocations are rare. Penalties against youth who violate the laws often are not deterrents. False identification is easy to obtain. Laws and penalties against minors who misrepresent their age do not deter youth from using false identification to buy alcohol. Some of the more popular ideas to improve deterrence include suspending driver's licenses, establishing alternative penalties, allowing vendors to obtain signed statements from suspected minors, conducting decoy operations, educating vendors, and enacting stringent "dram shop" laws. The Office of the Inspector General encourages States to examine their laws and policies concerning youth access to alcohol. A checklist is provided in this report to facilitate such an examination.