Federalism

 

Supremacy Clause

The Constitution and federal laws are the “supreme Law of the Land” (Art. VI, cl. 2).

1. Express preemption

   When a federal law expressly states that it is the exclusive regulation in a field, any state attempt to regulate that field is invalid.

2. Implied preemption

   When the federal law is silent, the state law may nonetheless be preempted:

   1. Direct conflict: If the federal and state law are in direct conflict, then the state law is invalid.

   2. State impedes federal objective: If state law impedes the achievement of a stated objective, then the federal law preempts the state law.

 

Intergovernmental Immunity

1. Federal immunity from state taxation

   State taxation of the federal government is prohibited.

   • Example: State taxation of a federal bank is prohibited.

2. Limited state immunity from federal taxation

   The federal government is prohibited from taxing only property used in, or income from, a state’s performance of its basic governmental functions.

   • Example: The federal government cannot institute a property tax on state parks.

 

Dormant Commerce and Privileges and Immunities Clauses

1. Dormant Commerce Clause prohibits undue burdens

   The Dormant Commerce Clause prohibits state and local laws that place an undue burden on interstate commerce.

   1. Determining undue burden: A state regulation which affects interstate commerce is invalid unless the regulation meets the following standards:

      1. The regulation pursues a legitimate state end;

      2. The regulation is rationally related to that end; and

      3. The benefits are greater than the burdens.

   2. Discrimination against out-of-staters: A state regulation that discriminates against out-of-staters (provides one set of laws for people from out of state and one for in-staters) is only valid if it is necessary to achieve an important government purpose.

      1. Protecting the in-state economy is never a valid justification for a law that discriminates against out-of-staters.

      2. Protecting the in-state environment is usually a valid justification.

   3. Market participant exception: A state or local government may prefer its own citizens in receiving benefits from government programs if it is acting as a business in the market.

      • Example: A state college can charge more for out-of-staters then it charges for in-staters.

2. Privileges and Immunities Clause of Article IV

   A state is prohibited from denying the citizens of another state the fundamental priviliges and immunities it affords its own citizens.

   1. Fundamental rights defined: The rights that are fundamental are either Constitutional or economic in nature.

      • Example: A statute requiring a $2,500 license fee from nonresident commercial fishermen but only $25 for residents is unconstitutional.

      • Example: A statute establishing a residency requirement for an abortion is unconstitutional.

   2. Substantial reason test: A state may nonetheless discriminate against an out-of-stater’s fundamental rights if:

      1. Peculiar source of evil: The state establishes that the out-of-stater is a “peculiar source of evil” that the statute was enacted to rectify (Toomer v. Witsell).

      2. Substantially related: The regulation bears a substantial relationship to the state’s objective.

3. Privileges or Immunities Clause of the Fourteenth Amendment

   A state is prohibited from denying its citizens the rights and privileges of national citizenship. This issue usually involves the right to travel.

   • Example: A state law limiting a new resident’s welfare benefits, as compared to older residents’ benefits, is unconstitutional (Saenz v. Roe).