Dormant Commerce Clause (w/ Federalism) Flashcards
Congressional commerce power
Congress has broad commerce power
interstate comemrce
fed law preempts conflicting state law
where Congress has NOT acted
state & local laws may regulate local aspects of interstate commerce if regulation is neither discriminatory nor unduly burdensome
dormance commerce clause test
a state/local law regulating interstate commerce is INVALID if:
1. discriminates against out-of-state competition
2. unduly burdens interstate commerce, or
3. regulates wholly out-of-state activity
dormant clause exceptions
state law burdening interstate commerce is VALID if either:
1. it is necessary to an important state interest,
2. state is market participant,
3. traditional govt function,
4. Congress approves
necessary to an important state interest
furthers an important, non-economic state interest and has NO reasonable alternatives available
- necessary to achieve purpose unrelated to protectionism, +
- NO non-discriminatory alternatives
state is market participant
state can favor its own citizens in buying or selling products, hiring labor, giving subsidies, etc.
eg, tuition discounts at state universities to in-state residents
traditional govt. function
state can discriminate against non-residents if law involves performance of traditional govt functions
Congress approves
states can burden interstate commerce where Congress has unmistakenly granted permission
discriminatory state law presumption
Invalid
unless dormant clause exceptions apply
non-discriminatory state law presumption
valid
UNLESS
burden outweighs benefit
(eg, law is essentially irrational)
dormant clause examples
the following violates the DCC:
1. regulations protecting local businesses or requiring local operations
2. regulations limiting access to in-state products
