Chapter 4 Flashcards
- To regulate commerce with foreign nations and among the several states, and with the Indian Tribes
- Grants Congress the exclusive power to regulate US and foreign interstate commerce
Commerce Clause
To fall within Congress’ regulatory power, a law must:
(1) Regulate the channels of interstate commerce
(2) Regulate the instrumentalities of interstate commerce
(3) Regulate activities having a substantial effect on interstate commerce
Under the Commerce Clause, Congress has virtually unlimited power to regulate economic or commercial activities that crosses state lines, no matter how trivial.
Interstate Commerce Power
- Congress has the power to make all laws which shall be necessary and proper for carrying on its powers
- US Supreme Court has upheld most federal statues challenged, holding them to be necessary and proper ( everything is necessary and proper as congress says it is)
Necessary and Proper Clause
Congress has virtually unlimited power to ____ and _____________ businesses.
(1) Regulate
(2) Tax
True or False: If Congress says its necessary and proper, then Congress can implement a discriminatory tax.
True
The Constitution and the laws of the United States shall be the supreme law of the land; and the judges in every state shall be bound thereby.
Federal Supremacy Clause
- Establishes the US Constitution as the supreme law of the land
- Federal laws supersede state law when a conflict arises
Federal Supremacy Clause
Federal and State Regulatory Relationships
- States often legislate on matter which Congress has legislated on
- Federal regulation takes precedence over state regulation
- State may not enact law that burden interstate commerce by imposing restrictions on business from other states
Federal environmental regulation requires the EPA to set specific pollution standards. Once set, states set requirements within the borders that meet the EPA standards. State standards cannot fall below the standards set by the federal government.
State often legislate on matters which Congress has legislated on
If Federal law sets a max speed on all interstate highways at 85MPH, Colorado cannot issue a law that allows 95MPH. States can make the speeds slower that 85MPH, but not faster then the maximum federal allowance. If Federal law sets a minimum speed on all interstate highways at 45MPH, South Carolina cannot issue a law that allows 35MPH. States can make speeds faster, but not slower, than the minimum federal allowance.
Federal regulation takes precedence over state regulations
In Southern Railway Co vs. Arizona, 22 U.S. 20 (1911) the U.S. Supreme Court struck down an Arizona law that required trains travelling through the state of Arizona be shorter than in other states for “safety conditions”
States may not enact laws that burden interstate commerce by imposing restrictions on business from other states.
Congress has the power to lay and collect taxes
Taxing Power (federal and state level)
Purpose of Taxing:
(1) Raise government revenue
(2) Deter behavior
(3) Incentivize behavior
True or False: Congress shared its taxing power with the states. However, states may not interfere with interstate commerce through their taxing scheme.
True
