Federalism Flashcards
May states regulate interstate commerce?
states may regulate interstate commerce subject to the negative implications of the Commerce Clause. The negative implications (also called Dormant Commerce Clause) generally prohibit states from discriminating against out-of-state business or unduly burdening interstate commerce.
Generally, a state may regulate in ways that impact on interstate commerce as long as the regulation does so only indirectly and the benefits outweigh the burdens imposed by compliance with the regulation.
Is the power to regulate ISC exclusively federal?
The power to regulate interstate commerce is NOT exclusively federal; states DO have power to regulate aspects of interstate commerce, as long as they do not discriminate against out-of-state business or unduly burden interstate commerce and Congress has not preempted the field of regulations.
A state’s regulation of interstate commerce in an area where Congress has not already acted is valid if the regulation:
Does not discriminate against out-of-state competition and does not unduly burden interstate commerce
What are the exceptions to the general rule under the Commerce Clause prohibiting states from discriminating against out-of-state competition?
- When the regulation is necessary to further an important, noneconomic state interest such as health or safety.
- When the regulation furthers an important, noneconomic state interest such as health or safety and there are no reasonable alternatives available.
- When the state acts as a market participant.
Market participant exception:
When a state acts as a market participant, it generally is not restricted by the Commerce Clause; it may favor its own citizens, such as by distributing state-owned resources only to residents or paying residents more for something than it would pay a nonresident (although such conduct might violate the Article IV Privileges and Immunities Clause).
