Constitutional Law September 14, 2004

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Constitutional LawSeptember 14, 2004

• DCC
• Overview
• Discrimination
• Neutral Measures
• Overview of Analysis
• Nondiscriminatory Laws
• Burdens-Benefit Balancing
• Burden Export
• Exceptions

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DCC Decision Tree
State Regulation or Tax Affecting Commerce?
Yes
No
Discriminatory?
DCC does not apply
Yes
No
Apply Strict Scrutiny
Burdens/Benefits Balancing
Consider Other Provisions
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Discrimination Recap

• Discriminatory
• On its face (forms)
• In practical effect
• Nearly per se invalid (SS)
• Over Under Inclusive
• LDA
• Bad Fit and Purpose (link)

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II. Neutral MeasuresA. Overview

• Non-Discriminatory/Incidental Effects
• Apply Pike test
• Burdens clearly excessive in light of
• Putative local benefit
• Legitimacy of Inquiry
• Not Protectionist
• What Justification?

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B. Non-Discriminatory Laws

• Exxon
• Ban on refiner owned stations
• All refiners out of state
• Clover Leaf
• Ban on plastic milk cartons
• Local paper industry
• CTS
• Shareholder approval for takeover
• Takeovers primarily out of state
• Burden Export (link)

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C. Balancing1. Burdens

• Relevant burdens?
• Commerce, not market or firms (Exxon)
• But see Pike
• Weighty burdens
• Obstruction of Flow (Bibb S. Pacific)
• Extraterritorial Regulation (Edgar v. Mite)
• Burden Export?

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2. Benefits

• Types of Benefits
• Health, Safety, Environment
• Economic Concerns
• Deference to Local Judgments?
• Yes Exxon, Cloverleaf, CTS
• No Pike, Bibb

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Fit and Purpose

• Bad Fit Suggests Pretext
• Elements of Bad Fit
• Less Discriminatory Alternatives
• Over and Under Inclusiveness (link)
• Implications
• For Strict Scrutiny
• For Burdens/Benefits Balancing

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Over Under Inclusiveness
UNDERINCLUSIVE
OVERINCLUSIVE
State Law
Applies
Applies
Does Not Apply
Group A Engages Purported Purpose
Group B Engages Purported Purpose
Group C Does Not Engage Purpose
Hidden Purpose
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Burden Export
State Policy Makers
State Policy Makers
Burden
Burden
Complaints
Unheard Complaints
Unheard Complaints
In State
Out of State
In State
Out of State
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