Balance of Powers Between: Federal & States Flashcards
Dormant Commerce Clause
The Commerce Clause gives Congress the power to regulate commerce among the state and, by negative implication, restricts the regulatory power of the states with respect to interstate commerce. Thus, the dormant commerce clause applies to state laws that discriminate against or unduly burden interstate commerce.
a. As a general rule, state law must NOT 1) discriminate against interstate commerce by favoring in state economic interests at the expense out of state interests OR 2) unduly burden interstate commerce.
Dormant Commerce Clause - Discriminatory State Regulations that Protect Local Economic Interests
State laws that discriminate against out of state commerce in order to protect local economic interests are almost always invalid. However, a discriminatory state law may be upheld if it advances an important, non-economic state interest like health or safety that CANNOT be adequately served by reasonable non-discriminatory alternatives. This means a state law that protects local economic interests will be valid only if the state has a really good non-economic reason to discriminate against out of state commerce.
Dormant Commerce Clause - Undue Burden on Interstate Commerce
The Commerce Clause prevents states from passing laws that place an undue burden on interstate commerce. If a state law treats local and out of state interests alike it will be valid UNLESS the burden on interstate commerce outweighs the state’s interest.
Dormant Commerce Clause - Market Participant Exception (When State Owns the Business)
The negative implications of the commerce clause do NOT apply when a state enters into the market as an owner rather than a legislator. This is known as the market participant exception to the dormant commerce clause. A state may limit its own purchases and its own sales to its own citizens. The rational being that the state is NOT using its sovereign powers to regular; rather it is using the power that any private person has over what it owns. Thus, a state may operate freely in the open market and may prefer its own citizens when acting as a buyer or seller.
Supremacy Clause
The Supremacy Clause provides that the US Constitution, federal statutes, and treaties are the supreme law of the land. This means any state or local law that directly conflicts with the terms of a federal statute is invalid.
Preemption
Even if a state law does NOT conflict with federal law, the state law will still be held invalid if it appears that Congress intended to occupy the entire field, thus preventing any state regulation on the matter.
Preemption Types
1) Express Preemption
2) Implied Preemption
Preemption - Express
Federal law may expressly preempt state law. Congress may indicate preemptive intent through a statute’s express language so long as Congress’ intent is clearly stated.
Preemption - Implied
Preemptive intent may also be inferred if the scope of the statute indicates that Congress intended federal law to occupy the legislative field. The more comprehensive the regulation, the more likely Congress intended to preempt the field.
Commandeering
The federal government cannot order or “commandeer” state governments to enact and enforce federal law. This violates federalism principles. The 10th Amendment prevents Congress from making the states the equivalent of mere federal agencies, whose decisions Congress controls.
a. However, Congress may regulate the states on the same terms as other entities engaged in the same conduct. Thus, a generally applicable federal law may regulate public and private actor alike.
