Well, I didn't say anything about laws. As alcohol-related incidents increase in frequency and severity, and as payouts become bigger, the cost to insure (including self-insure) goes up.
This kind of policy existed at my alma mater 30 years ago. Even the alt beverage bit. Can't remember if we just served water or did we actually have punch of some kind. We even had (student) inspectors that went around to registered parties to verify that the rules were followed. And yes, citations were written and disciplinary hearings were held, and party privileges revoked for the semester. This was at a big 10 state school.