Regulations of Interstate Commerce Flashcards
State Regulation of Commerce in the Absence of Congressional Action
If Congress has not enacted laws regarding the subject, a state or
local government may regulate local aspects of interstate commerce.
To do so, however, the state or local government must not discriminate
against or unduly burden interstate commerce. If it does, the
state or local regulation will violate the Commerce Clause.
Important State Interest Needed
A discriminatory state or local law may be valid if it is necessary to achieve an important, noneconomic state interest and there are no reasonable nondiscriminatory alternatives available.
Nondiscriminatory Laws—Balancing Test
If a nondiscriminatory state law (that is, a law that treats local and out-of-state interests alike) burdens interstate commerce, it will be valid unless the burden outweighs the promotion of a legitimate local interest.
Congressional Approval Exception
Congress may permit state regulations that would otherwise violate the (Dormant) Commerce Clause
State as “Market Participant” Exception
A state or local government may prefer its own citizens in receiving benefits from government programs or in dealing with government-owned businesses (for example, when hiring labor, buying or selling products, or giving subsidies). However, once a state sells state-owned resources, it cannot control what happens to the resource after that.
