Flashcards in Power Reserved to the States Deck (5):
Where the fed govt has only those powers granted to it by the Constitution, the state governments are governments of unlimited powers, having all powers not prohibited to them by the Constitution.
Dormant Commerce Clause (DCC)
If congress has not enacted laws regarding the subject, a state or local govt may regulate local aspects of interstate commerce. However, states may not: 1. discriminate against out-of-state competition to benefit local interests; or 2. Unduly burden interstate commerce.
Unduly Burden Interstate commerce
A regulation that unduly burdens interstate commerce will be permitted if it is rationally related to a legitimate government interest, and the burden imposed on interstate commerce must be outweighed by the benefits to the state. This is essentially a rational basis test plus balancing.
Exceptions to out of state discrimination for DCC
1. pass laws that discriminate against out-of-state competition if it furthers an important, non-economic state interest and there are no reasonable alternatives.
2. Prefer its own citizens when the state is acting as a market participant.
3. Discriminate against interstate commerce with a law that favors government action involving the performance of a traditional government function.
4. Congressional Consent