3. Federal State Relationship

Question 1

What powers does the Federal Government have?

Answer 1

The Federal Government has powers granted by the Constitution and no others.

There is NO federal police power.

Question 2

What powers do states have?

Answer 2

States have police power and can pass laws without identifying a source of power for doing so.

Question 3

What are the constitutional limitations on state police powers?

Answer 3

1. Exclusive Federal Power: Reserves certain enumerated powers exclusively for the federal government;
2. Individual Rights: Restricts the state governments from acting in violation of constitutional provisions; and
3. Preemption: Under the Supremacy Clause, if Congress enacts legislation with the intention of preempting state law, the congressional regulation will control.

Question 4

Do states have unlimited authority to enact regulations?

Answer 4

No, state laws are always subject to constitutional limits.

Question 5

Do states have absolute power over the transfer of land?

Answer 5

No, states do not have absolute power over the transferability of land within state borders.

Question 6

Can the federal government be sued?

Answer 6

No, the federal government cannot be sued without its consent.

Question 7

Can a state impose a tax directly on the federal government?

Answer 7

No, a state cannot impose a tax directly on the federal government or any of its agencies without the consent of Congress.

Question 8

What type of taxes are permissible for states to impose on the federal government?

Answer 8

Non-discriminatory, indirect taxes that do not unreasonably burden the federal government.

Question 9

What is the rule regarding states taxing contractors working for the federal government?

Answer 9

States may collect a nondiscriminatory tax on persons who deal or contract with the federal government.

Question 10

What is the rule regarding states regulating federal government activities?

Answer 10

States have no power to regulate the activities of the federal government unless Congress consents to the regulation.

Question 11

Under what conditions is a state immune from federal taxation?

Answer 11

A state is immune from federal taxation if the tax is applied to unique state activities or essential governmental functions.

Question 12

What does the Constitution specifically prohibit states from doing?

Answer 12

• Making treaties with other nations
• Coining money
• Passing a bill of attainder
• Enacting an ex post facto law
• Impairing the obligation of contracts
• Laying any duty on imports or exports
• Engaging in war
• Maintaining a peacetime army

Question 13

What is the Anti-Commandeering Doctrine?

Answer 13

The Tenth Amendment prohibits the federal government from using an enumerated power to:
1. force a state legislature to pass a law; or
2. state executive official to administer a federal program.

Question 14

What does the Dormant Commerce Clause empower Congress to do?

Answer 14

The Dormant Commerce Clause gives Congress the power to regulate interstate commerce.

Question 15

Who does the Dormant Commerce Clause apply to?

Answer 15

The Dormant Commerce Clause applies to aliens, businesses and corporations, as well as individuals, as it deals with laws affecting interstate commerce.

Question 16

What can states do when Congress has not enacted legislation?

Answer 16

States are free to regulate local transactions affecting interstate commerce, subject to certain limitations.

Question 17

What must a state show if its law discriminates between in-state and out-of-state economic actors?

Answer 17

If a state law discriminates on its face between in-state and out-of-state economic actors, the state MUST show that:
i.) The regulation serves a compelling state interest; and
ii.) The regulation is narrowly tailored to serve that interest.

Question 18

When is a state show that imposes a burden on interstate commerce but does not discriminate on its face between in-state and out-of-state actors?

Answer 18

A state law that imposes a burden on interstate commerce but that does not discriminate on its face between in-state and out-of-state actors will be upheld if:
i.) The law serves an important state interest; and
ii.) The burden on interstate commerce is not excessive in relation to the interest served.

Question 19

What happens if a state law merely incidentally burdens interstate commerce?

Answer 19

The court will apply a balancing test and the law will be upheld unless the burden on interstate commerce clearly outweighs the local benefits.

Question 20

What rights does a state have when acting as a market participant?

Answer 20

A state may decide with whom it wishes to contract without regard to the restrictions of the Dormant Commerce Clause.

It can discriminate between in-state and out-of-state businesses.

Question 21

Can Congress regulate noncommercial activity under the Commerce Clause?

Answer 21

No, Congress does not have the power under the Commerce Clause to regulate a noncommercial activity with no link to interstate commerce.

Question 22

What is within the state’s police power?

Answer 22

To enact legislation for the protection of the health, safety, and welfare of its citizens.

Question 23

When is a state regulation likely to be held unconstitutional?

Answer 23

If it furthers no ostensible benefit and imposes a substantial burden on interstate commerce.

Question 24

What characterizes protectionist laws?

Answer 24

They benefit in-state interests at the expense of out-of-state interests.

A state law that discriminates against interstate commerce is protectionist unless it serves a legitimate local interest that cannot be served by nondiscriminatory legislation.

Question 25

What must public health measures implemented by states not do?

Answer 25

They must not discriminate against or unduly burden interstate commerce.

Question 26

Under what conditions can states pass regulations of local aspects of interstate commerce?

Answer 26

1. They do not discriminate against out-of-state parties
2. They are not unduly burdensome.

Question 27

Under what conditions can states/local pass regulations against out-of-staters?

Answer 27

A discriminatory state or local law may be valid if it:
1. furthers an important, non-economic state interest (e.g., health or safety); and
2. there are no reasonable alternatives available. f

Question 28

What is the presumption regarding state regulations that discriminate against out-of-state businesses?

Answer 28

They are presumptively invalid under the Dormant Commerce Clause.

Question 29

Congress Overruling a Supreme Court Decision

Answer 29

Congress has an extremely broad power to regulate under the Commerce Clause and may have the authority to pass legislation that regulates an activity the Court previously struck down

Question 30

What factors determine the validity of a state tax affecting interstate commerce?

Answer 30

1. The taxpayer must have sufficient contacts within the taxing state
2. The tax must be fairly apportioned
3. The tax must not discriminate against interstate commerce
4. The tax must be fairly related to the services provided by the taxing state.

Question 31

What is an ad valorem tax?

Answer 31

A tax based on the value of goods.

Question 32

Is a state permitted to levy an ad valorem tax on goods in transit?

Answer 32

No, states are not permitted to levy an ad valorem tax on goods that are still in the course of transit.

Question 33

What is the validity of sales tax based on the location of sale?

Answer 33

Valid if the sale is consummated within the state; invalid if made to a buyer outside the state.

Question 34

What is a use tax?

Answer 34

A tax upon the use of goods within the state that were purchased outside the state.

Question 35

What factors determine the ability of a state to collect a use tax?

Answer 35

Whether the interstate seller has a sufficient nexus within the taxing state.

Question 36

What is a doing-business tax?

Answer 36

A tax measured by a flat annual fee or a graduated rate based on the revenue derived from the taxing state.

Question 37

What is the rule regarding net income taxes imposed by states?

Answer 37

Valid if fairly apportioned, has a significant nexus, and is nondiscriminatory.

Question 38

What is the general rule regarding flat license fees?

Answer 38

Generally unconstitutional.

Question 39

When is a license tax valid?

Answer 39

When levied upon a seller who sells and delivers the product within the state.

Question 40

Full Faith and Credit Clause, Article IV, Section 1

Answer 40

The Full Faith and Credit Clause ensures that federal courts honor state laws, but only if such laws do
not conflict with federal laws.

It also provides that states must give full faith and credit to rulings and decisions of other states.