Federalism Flashcards
In general, what powers does federal vs state govts have?
Federal - enumerated powers + inherent federal powers (e.g. federal citizenship)
States - under 10A, all powers not granted to federal govt or prohibited to the states. General police power.
What is the anti-commandeering principle?
Federal govt cannot directly compel states to enact laws or enforced federal laws.
Also, cannot tax local/state govts if private groups are not equally taxed.
BUT note: court rarely ever strikes down federal tax impacting state govts under 10A (on exam)
May state tax federal instrumentalities?
Generally no, unless it is a nondiscriminatory, indirect tax (e.g. state income tax on federal employees).
What is the supremacy clause?
Federal law is supreme law of the land, so may invalidate state law in some cases.
When does federal law invalidate state law under the Supremacy Clause?
- express preemption - federal law says it
- implied preemption:
(a) would be impossible to follow both laws - conflicts with federal law req’s (but federal can set floor above which state may go)
(b) state law frustrates purpose of federal law -
(c) field preemption - federal law makes comprehensive regulatory scheme thus implying states cannot legislative in this area (this will invalidate a state law EVEN if the state law doesn’t directly conflict
What does the Privileges & Immunities clause of Art IV do?
Prohibits discrimination by a state against nonresidents wrt (a) important commercial activities (e.g. earning a livelihood) and (b) fundamental rights. Only applies to intentionally protectionist discrimination.
Note: nonresidents only covers ppl, not corporations
When a state law burdens an important commercial activity or fundamental right of a nonresident, when is it valid?
The law will be valid under the P&I clause of Article IV ONLY if the law is necessary to achieve an important govt interest + there are no less restrictive means available to achieve that interest.
What does the privileges & immunities clause of the 14A prohibit?
The 14A prohibits states from denying their citizens the privileges of national citizenship (e.g., right to petition Congress, right to vote, right to interstate travel)
When can the states regulate in interstate commerce?
(a) if Congress has regulated & law conflicts, then state law is invalid
(b) if Congress has regulated & either state law frustrates purpose/congress takes up entire regulatory space, then state law is invalid
(c) absent action from Congress: (Dormant/Negative Commerce Clause) - generally must not discriminate against or unduly burden interstate commerce
(i) law is discriminatory (i.e., against nonresidents), then must be necessary to achieve an important, noneconomic state interest + there are no reasonable nondiscriminatory alternatives (usually invalid)
(ii) nondiscriminatory law, valid unless burden on interstate commerce outweighs the promotion of legit local interest
What does the Dormant/negative Commerce Clause prohibit?
Generally, states cannot regulate interstate commerce in areas where Congress has remained silent when law is discriminatory against nonresidents OR burdens interstate commerce.
(i) law is discriminatory (i.e., against nonresidents), then must be necessary to achieve an important, noneconomic state interest + there are no reasonable nondiscriminatory alternatives (usually invalid)
(ii) nondiscriminatory law, valid unless burden on interstate commerce outweighs the promotion of legit local interest
What are the 3 exceptions to the Dormant Commerce Clause (i.e. when can states regulate interstate commerce)?
- congressional approval
- state as market participant (i.e., may prefer its own citizens in conferring state benefits or dealing with govt programs/biz)
- in govt action that involves traditional govt functions (waste disposal, public teachers)
May states pass a discriminatory tax against out of state biz/residents?
No - generally same rules apply re taxes as they do for commerce clause.
When will a nondiscriminatory tax issued against a nonresident be valid?
When:
(a) tax applies to an activity with a substantial nexus to the state (physical presence in state is not necessary, substantial nexus occurs when biz avails itself of privilege of doing biz in state)
(b) tax is fairly apportioned
(c) tax is fairly related to services provided by state
(otherwise is said to unduly burden interstate commerce)
Can states tax items in interstate commerce?
No, not until they have reached final destination then they may be subject to local tax.
Can states tax instrumentalities used to transport goods in interstate commerce?
Only if (1) instrumentality has taxable situs in state, i.e. sufficient contacts and (2) tax is apportioned proportionate to those contacts
