Dormant Commerce Clause

Question 1

With regards to interstate commerce, what is congress’s power to supersede state laws?

Answer 1

• When congress regulates interstate commerce, CONFLICTING state laws are superseded
• if a state/local law prevents achievement of federal objective, it will be impliedly preempted (even if enacted for valid state purpose)
• “Field preemption” - a valid federal statute or reg may impliedly “occupy” the entire field, thus precluding any state/local reg EVEN if the state or local reg is NON-Conflicting. (STANDARD: the courts will look at the reg scheme to determine whether congress INTENDED to preempt field)

Question 2

With regards to the “commerce clause”, what is congress’s power to permit or prohibit state regulation?

Answer 2

• congress may permit state regulations that would otherwise violate the commerce clause
• congress may prohibit regulations that could otherwise be upheld under the commerce clause (NOTE: congress cannot permit states to violate civil liberties)

NOTE: Congress cannot authorize legislation that would violate other constitutional provisions, such as privileges and immunities clause of Art. IV

Question 3

What is the state’s power to regulate commerce in the absence of congressional laws? (dormant commerce clause)

Answer 3

If congress has not enacted laws regarding the subject, a state/local gov MAY regulate local aspects of interstate commerce.

HOWEVER: it must not –>

1. DISCRIMINATE against interstate commerce; OR
2. UNDULY BURDEN interstate commerce

Question 4

With regards to “dormant commerce clause,” what is the rule re: “discriminatory regulations”?

Answer 4

State or local regulations that discriminate against interstate commerce to protect local ECONOMIC interests are ALMOST ALWAYS INVALID.

Example –> NY cannot ban CA wines or tax them at a higher rate

Three Exceptions:

1. Important State Interest;
2. State as “Market Participant”;
3. Favoring Gov Performing Traditional Gov Functions

Question 5

With regards to “dormant commerce clause,” and “discriminatory regulations”, what is the exception for “important state interest”?

Answer 5

A discriminatory state/local law MAY be valid if:

1. furthers an IMPORTANT, NON-ECONOMIC state interest, AND
2. there are NO REASONABLE NON-DISCRIMINATORY ALTERNATIVES available

Example –> state could prohibit importation of live fish bait bc fear of parasites

HOWEVER –> state could NOT prohibit exportation of fish bait where no major state interest was involved

Question 6

With regards to “dormant commerce clause,” and “discriminatory regulations”, what is the exception for state as “market participant”?

Answer 6

• state MAY prefer its own citizens when acting as a market participant (buying/selling/hiring labor/giving subsidies)

Question 7

With regards to “dormant commerce clause,” and “discriminatory regulations”, what is the exception for favoring gov performing traditional gov functions?

Answer 7

-SCOTUS provides a more lenient standard if it’s an area where the state historically traditional gov function (example –> waste disposal)

Question 8

With regards to “dormant commerce clause,” what is the rule if the law is not discriminatory, but burdens interstate commerce?

Answer 8

If non-discriminatory state law BURDENS interstate commerce, it will be valid UNLESS the burden outweighs the promotions of a LEGITIMATE local interest.

Example –> statute banning trucks over 60 feet was invalid bc the state showed no significant evidence of increased safety, and burden on commerce was substantial

(NOTE –> for state control of corporations, it’s more likely to be upheld bc of state’s history of governing internal operations of corporations).

Question 9

May an alien or corporation be a Plaintiff in dormant commerce clause case?

Answer 9

YES