Limits on State Regulatory and Taxing power Flashcards
Conflict Preemption
The supreme court will find preemption if there is a conflict between the federal and state law.
Preemption
Article 6 makes clear that constitutional federal laws trump conflicting state laws because federal law is the supreme law of the land.
Express preemption
The supreme court will find preemption if there is explicit preemptive language by congress.
- No inferences needed.
Implied Preemption- Field
The supreme court will find preemption if there is a clear congressional intent that federal law should exclusively occupy a field.
- federal government has exclusive authority in dealing with foreign nations, and therefore state regulations in this area are preempted.
- There need not be a conflict between foreign policy and immigration.
Impeding Federal objective
Supreme court will find preemption if the state law interferes with a federal goal.
-> If a court wants to avoid preemption, it can narrowly construe the federal objective.
->If a court wants to find preemption- broadly views the federal objective.
Preemption of State taxation/regulation of the Federal Govt.
A state cannot tax or regulate the federal government because of the supremacy clause of Article 6.
Dormant Commerce clause
State and local laws are unconstitutional if they place an undue burden on interstate commerce. (Inferred by the commerce clause in section 8 of Article 1, which regulates commerce among the states).
Modern approach: balancing test
Based on courts balancing the benefits of a law against the burdens that it imposes on interstate commerce.
Discriminating out-of-staters: Exception
A state may favor its own citizens in dealing with government-owned business and in receiving benefits from government programs. If a state is literally a participant in the market, the dormant commerce clause does not apply.
Discriminating out-of-staters
If a state is discriminating against out-of staters then there is a strong presumption against the law, and it will be upheld only if it is necessary to achieve an important purpose.
Privileges and Immunties Clause
Limits the ability of a state to discriminate against out-of-staters regarding: fundamental rights or important economic activities.