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DCC

State laws that discriminate against out-of-state entities are subject to scrutiny under the dormant Commerce Clause. There are three types of analysis: 1) Facially discriminatory laws are per se invalid unless they pass strict scrutiny. 2) Laws that are facially neutral but have a discriminatory purpose or effect are also subject to strict scrutiny. 3) Facially neutral laws that incidentally burden interstate commerce are analyzed under the Pike balancing test weighing the burden versus the local benefit. Exceptions exist for laws approved by Congress or involving a state's role as a market participant.

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Brat Wurst
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0% found this document useful (0 votes)
571 views

DCC

State laws that discriminate against out-of-state entities are subject to scrutiny under the dormant Commerce Clause. There are three types of analysis: 1) Facially discriminatory laws are per se invalid unless they pass strict scrutiny. 2) Laws that are facially neutral but have a discriminatory purpose or effect are also subject to strict scrutiny. 3) Facially neutral laws that incidentally burden interstate commerce are analyzed under the Pike balancing test weighing the burden versus the local benefit. Exceptions exist for laws approved by Congress or involving a state's role as a market participant.

Uploaded by

Brat Wurst
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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State-Level Discrimination Against Out-of Staters - Dormant If a state law's purpose OR effect is to substantially burden interstate

Commerce Clause commerce, it will be shown invalid/unconstitutional.

FIRST - Is there proof Facially Discriminatory - Facially Neutral Law [terms treat in & out of staters NOT facially discriminatory but has
of a discriminatory generally per se invalid. alike] but has Discriminatory Purpose or Effect - affect on interstate commerce
purpose or effect? effects per Hunt - raising cost of doing business; [in-staters & out-of-staters treated
removing competitive advantage of another state's alike]
costly enterprise, leveling effect on local business
against better out-of-state people
Strict Scrutiny - Strong Presumption
SECOND - Apply Balance the burden on interstate
Against Discriminatory Laws -
proper test - commerce with the benefit of the state
Is the law narrowly tailored to fit a - does the burden on interstate
specific problem? commerce clearly exceed legitimate
Is there a compelling state purpose for local benefits? [note - clearly exceed is
the law? a high standard]
Does the state have alternatives
available? Is it using the least
restrictive means possible to achieve
their purpose?

Market Participation Exception - Allows states to favor their


Congressional Approval - If Congress own citizens in receiving benefits from govt programs and in
THIRD - Does an dealing with govt owned businesses.
exception apply? approves a state law, it is now endorsed by
the Commerce Clause. Ex. public universities - since state is providing a service rather
than regulating, they can discriminate against out-of-state
parties by offering lower in-state tuition.
Facially
Philadelphia v. NJ - local regulations that Carbone v. Clarkstown [ordinance required all waste in town West Lynn - [facially neutral tax law
discriminatory but
clearly discriminate against out of state go to 1 transfer station] - discriminatory due to effect on discriminatory] - MA taxed all milk
passed strict
articles of commerce on their face are out-of-staters & only one local operator could be used depriving dealers but used funds to pay subsidies
scrutiny - Maine v.
unconstitutional; NJ waste can't be out of state businesses of access to a local market but to in state dairy farmers.
Taylor - ME
distinguished from waste of other states; considered facially discriminatory - because it said "you must Unconstitutional bc discriminatory
prohibited
legitimate heath measure but accomplished send your trash here" impact - in staters & out of staters both
importation of
by protectionist means. taxed but in staters basically refunded
baitfish; law upheld
Hunt v. Wash State Apple - discrimination based on so tax was borne disproportionately by
despite being
Dean's Milk Co. v. Madison [city ordinance discriminatory impact against out-of-staters; practical effect of out of staters. Relationship btw tax &
discriminatory -
required all milk sold in city be pasteurized not only burdening interstate sales of WA apples but also subsidy was unconstitutional [both
nearly impossible to
within 5 miles]; - local regulations treating out discriminating against them. Court very concerned about fact legal/valid on their own].
determine if bait
of states in a disparate manner will be treated law seemed intentionally discriminatory. Raised cost of doing - When nondiscriminatory tax + subsidy
had parasites &
as discriminatory even tho they also business for WA producers but not NC ones; prohibited WA from to 1 group hurt by tax = state's political
allowing them would
discriminate against in-staters. using competive advantage it earned; leveling effect operating to process can't be relied on to prevent
place ME's
advantage of local apple producers. legislative abuse bc 1 of the in-state
population of wild
interests that may lobby against tax
fish at risk.
Policy for - won't bc refunded by subsidy.
How far should courts go in inferring discriminatory intent from neutral
laws w effect of distinguishing btw in state & out of state interests? Policy against - Ultimately -
Should Court deal with states dicriminating against out of state - National unity approach - U.S. should be one integrated - Should cts be aggressive in striking down
interests - Congress has power to regulate commerce & can market state/local laws burdening national
invalidate state laws unduly burdening interstate commerce by - Economic approach - states try to discriminate against economy or adopt general posture of
enacting statute. interstate commerce to gain benefits w/o pasing associating deference & invalidate laws only in
- Separation of powers argument against DCC - unelected judiciary costs, shouldn't be able to benefit off of discrimination of exceptional & extreme circumstances?
shouldn't make these decisions, supposed to interpret the other states. - How important is it for state & local laws
Constiution, not make policy - maybe a political question, interferes - McCulloch - part of why MD tax struck down was bc tax interfering with interstate commerce be
with democracy because task of reviewing state laws should be done ultimately borne by those w/o say in political process - not invalidated?
by Congress [state laws invalidated & they have no choice in who represented by state, taxation without representation - states - Views on appropriate allocation of power
invalidates them - no accountability]. shouldn't be harmed by laws in other states where they lack bt Congress, states, & judiciary.
- Federalism argument against DCC - want to minimize instances represention. -Perhaps formalist approach best - statutes
where state/local laws invalidated. -Maybe political process can't be trusted when state w/ geographical terms viewed w/ great
Does mere fact Const. gives Congress power to regulate interstate advantages itself at expense of out of staters w/ no suspicion, if states told to never use them,
commerce prevent a state from taking a particular action that affects representation. will adopt fewer protectionist or otherwise
interstate commerce, assuming Congress hasn't acted in that area -Congress has much more urgent matters, can't review vast troublesome statute than states whose
[no Supremacy issues]? array of state/local laws may be challenged as burdening actions tested against complicated
interstate commerce; judicial action necessary. standards.

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