Federal System: DCC, State Taxation, Preemption Flashcards
True or false: Federal powers run concurrent with state powers
True, but if there’s a conflict b/t state and federal powers, federal wins
What powers are exclusive to the federal system?
power over foreign relations, power to coin money
True or false: state and federal governments are immune from direct taxation and regulation?
False,
Federal gov is immune from direct state regulation or taxation, BUT states are not immune from direct federal regulation. AND states can tax federal gov indirect (ex: taxing federal employees on their income)
States cannot ____ state officers from federal liability for violating federal constitutional rights
Conscribe - constrict/limit
EXCEPT for the anti-commandeering principle
Explain the Privileges and Immunities Clause (PIC) and what it forbids
Forbids serious discrimination against out of state individuals, absent substantial justification
Does not protect out of state corporations
Serious discrimination = employment
Under PIC, can there be a legal requirement of residency for employment for private employers?
No. BUT public employment can require residency.
What are examples of private employment requirements that DO NOT require residence (and don’t violate PIC)?
Admission to the Bar, occupational licenses
What are examples of public employment requirements that DO depend on residency
A city hiring only residents or requiring a certain % of city residents on city construction projects
How is “non serious discrimination” defined?
States can discriminate with regard to recreational activities
Ex: hunting licenses and state park access
What does the Dormant Commerce Clause do?
Protects out of state businesses and individuals absent federal regulation
In the absence of federal regulation, state regulation of commerce on its face is valid if…?
Facially discriminatory law = strict scrutiny
1) No discrimination against out of state interests
2) Interstate commerce not unduly burdened
3) Not wholly extraterritorial activity
What are examples of out of state interests that the DCC protects against?
Ex: forbidding out of state products sold within the state, taxing out of state products at a higher rate, requiring manufacturing of products only be done in state, or limiting landfills to in state garbage only
What is the balancing test used for facially neutral discriminatory laws under DCC??
OK to discriminate against out of state individuals or corporations IF:
Local interest > Burden
What are the exceptions to the rule against no discrimination against out of state interests?
1) State as a market participant
2) Subsidies
3) Federal approval
True or false: If Congress authorizes or consents to state regulation of commerce, the DCC will protect discrimination against out of state interests
False. Congressional authorization or consent of state regulation of commerce trumps the DCC. DCC is only triggered when Congress hasn’t acted.
How is an undue burden to interstate commerce defined/tested on a facially neutral law?
So outrageously costly relative to the benefits of the regulation.
Costs v. benefits balancing test
True or false: A state may regulate conduct occurring wholly beyond its borders
False
Can states tax interstate commerce?
No, unless:
1) Congress consents AND
2) not unduly burdensome
When is non-discriminatory taxation OK?
Two requirements:
1) Substantial nexus b/t taxing and property/activity
2) fair appointment of liability b/t the states taxed
When are commodities that move over state lines taxed? When are they not taxed?
Full taxes to every state when stopped on tax day for a business purpose
No taxes when merely in transit
When is taxation for instrumentalities moving goods across state lines OK?
1) Fair appointment of tax liability w/substantial nexus to the instrumentality
2) Each state in which instrumentality is used can tax the value of that instrumentality
True or false: Federal law preempts inconsistent state law
True. When the law is inconsistent b/t state and fed
Note that state law is not preempted b/c it addresses the same subject matter as a federal statute.
Define field preemption. Is it common?
When Congress determines there should be no state law of any sort in a particular field. Any state law in that area is inconsistent = preempted
Rare.
What does the full faith and credit clause demand of states?
States must give full faith and credit to judgments rendered by other state’s courts if:
1) Rendering court had jurisdiction
2) To render final judgments on the merits
