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Flashcards in State Regulation of Interstate Commerce Deck (6)
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1
Q

What is the effect on state’s attempt to regulate commerce if congress has regulated already?

What is Congress’s power to permit/prohibit state regulation?

(Dormant Commerce Clause)

A
  1. CONFLICTING state laws are SUPERSEDED
  2. Even if state law is NOT conflicting, state or local laws may be PREEMPTED

CONGRESS MAY:

  1. permit state regs that would otherwise violate commerce clause
  2. prohibit state regs that would otherwise be upheld under commerce clause

NOTE –> congress MAY NOT permit states to violate civil liberties

2
Q

If congress HAS NOT already regulated an area relating to interstate commerce, what is the rule for state/local governments?

(Dormant Commerce Clause)

A

If no conflict/preemption:

State/local government MAY regulate LOCAL aspects of interstate commerce if:
1. they do not DISCRIMINATE against interstate commerce; or
EXCEPTIONS:
- Important State Interest
- Market Participant
- Traditional Government Function

  1. UNDULY BURDENS interstate commerce
    - balancing test

NOTE –> discriminatory laws may also implicate privileges and immunities of Art 4 & equal protection

3
Q

When is a state/local law that DISCRIMINATES against interstate commerce allowed (3) ?

(Dormant Commerce Clause)

A
  1. Furthers an:
    (i) IMPORTANT, NON-ECONOMIC state interest; AND
    (ii) there is NO REASONABLE non-discriminatory alternative

EXAMPLE –> state MAY ban importation of fish bc it might destroy lake, but not export if no state interest is involved

  1. “Market Participant Exception” - state may prefer its own citizens when . acting as purchaser, seller, subsidizer
  2. “Traditional Gov Function” - regulation is of a traditional gov function (such as waste disposal)
4
Q

What rule applies when a state/local law is NON-DISCRIMINATORY, but BURDENS interstate commerce?

(Dormant Commerce Clause)

A

If state/local law is NON-DISCRIMINATORY (treats local/out-of-state interests alike) —> it will valid UNLESS:

  • burden OUTWEIGHS
  • promotion of LEGITIMATE local interest

NOTE –> this is a balancing test.

  • Court will consider whether less restrictive alternatives are available
  • Reg is more likely to be upheld if it relates to internal governing of corp incorporated in that state

EXAMPLE –> Iowa statute banning trucks over 60 fee was invalid bc the state showed no significant evidence of increased safety and burden on commerce was substantial

5
Q

Does dormant commerce clause protect corporations and/or aliens?

A

Yes (unlike priv and immunities of art 4)

6
Q

Compare Dormant Commerce Clause and Priv and Immunities of Art 4

A

Priv and Immunities of Art 4

  • stronger but narrower
  • no market participant exception
  • does NOT protect corporations/aliens
  • requires INTENTIONALLY PROTECTIONISM (applies to discrimination against economic interests/civil liberties only)