MANAGMNT 260 Lecture Notes - Lecture 16: Commerce Clause, Health Insurance Mandate, Supremacy Clause
23 Jan 2017
School
Department
Course
Professor
The$Constitution$
The$commerce$clause:
What$Congress$can$do$
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Areas$of$Congressional$Authority:
Article$One,$Section$Eight$specifies$powers$of$Congress
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One$provision$in$Article$One,$Section$Eight$gives$Congress$the$ability$to$regulate$
commerce
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Broad$Interpretation$of$the$Commerce$Clause
Heart$of$Atlanta$Motel$Case:
Civil$Rights$Act$of$1964
○
Heart$of$Atlanta$Motel$argued$that$Congress$has$no$authority$to$regulate$
intrastate$commerce.$The$argument$was$that$the$activity$of$the$Motel$
was$purely$intrastate$(or$with$Georgia)$with$no$interstate$ramifications,$
such$that$Congress$did$not$have$authority$over$that$activity.
○
Right$to$travel$was$implicated$in$the$provisions$of$the$Civil$Rights$Act.$The$
right$to$travel$was$considered$vitally$important$for$interstate$commerce,$
thus$Congress$had$authority$under$the$Commerce$Clause.
○
That$is,$purely$intrastate$conduct$can$be$regulated$if$it$has$a$significant$
impact$on$interstate$commerce.
Necessary$improper$clause$can$also$be$included$
§
As$long$as$there$is$a$significant$relationship$related$to$interstate$
commerce$that$is$sufficient,$it$can$be$regulated$
§
○
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Later$Commerce$Clause$Restrictions
Lopez$under$the$Rehnquist$court
Safe$school$gun$zone$act
Possession$of$a$gun$in$so$many$feet$of$a$school
§
○
Brought$to$Supreme$Court
Decided$it$was$unconstitutional$for$Congress$to$do$this$because$it$
was$not$related$to$interstate$commerce,$threw$up$Safe$School$Gun$
act
§
○
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Federal$school$safety$act
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Morrison$case
Federalized$certain$crimes$against$women
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Supreme$Court$says$it$doesn't$have$enough$to$do$with$interstate$
commerce
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Courts$think$laws$are$appropriate,$but$not$Congress'$job$to$regulate$this,$
it’s$the$State's$job.
○
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Federal$"Violence$Against$Women"$Act
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ACA$Case$and$the$Individual$Mandate$
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Second$Part$of$the$Commerce$Clause$Acts$as$Restrictions$on$State$Authority$to$
Regulate:
States$cannot$unduly$interfere$with$(or$burden)$interstate$commerce.
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Georgia$Contoured$Rear$Mudguard$Regulation$(where$SCOTUS$found$the$state$
statute/regulation$unconstitutional)$contrasted$with$the$Maine$prohibition$
against$the$importation$of$live$baitfish$(where$the$SCOTUS$found$the$state$
statute/regulation$constitution.)$
Trucks$aren't$dangerous$to$cars$around$it
○
Standard$between$Georgia$(contoured)$and$Florida$(straight)$different$
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Added$burden$on$interstate$commerce$
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Supreme$Court$agreed$because$this$regulation$only$provides$a$marginal$
safety$concern$
This$regulation$had$an$undue$burden$on$interstate$commerce$and$
states$are$interfering$with$interstate$commerce,$thus$
unconstitutional$
§
○
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Exceptions$to$Restriction$on$States$to$Interfere$with$Interstate$Commerce:$
Taylor$case$involving$the$Maine$live$baitfish$prohibition.
Allow$it$because$it$is$not$a$large$industry
○
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Supremacy$Clause:
Validly$enacted$federal$laws$take$precedence$over$state$laws
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States$can$pass$laws$that$complement$federal$law,$but$cannot$contradict$federal$
law
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Title$VII$is$the$federal$statute$that$prohibits$discrimination$in$employment$based$
on$race,$ethnicity,$national$origin,$religion,$and$gender.$Applies$to$employers$
with$15$or$more$employees.$Mass.$Gen.$Laws$Ann.$Chapter$151$B$is$the$
Massachusetts$antidiscrimination$in$employment$statute.
States$cant$contradict$federal$law,$but$they$can$coincide
○
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However,$
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The$Supremacy$Clause$and$Pre-Emption:
There$are$some$federal$laws$or$regulatory$regimes$which$are$so$comprehensive$
that$nay$state$regulation$in$that$area$is$pre-empted$by$the$federal$law
ERISA$is$an$example
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Employee$retirement$
○
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One$of$the$compromises$under$ERISA$was$the$limitation$on$the$right$to$sue:$
plaintiffs$can$only$sue$the$plan$administrator$for$reinstatement$of$benefits
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Federal$Automobile$Safety$Standards$
Supreme$court$preemptive$that$rule$
○
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Equal$Protection$and$Due$Process
Wednesday(11/2/16
Wednesday,$ November$ 2,$2016
10:10$AM
Document Summary
Article one, section eight specifies powers of congress. One provision in article one, section eight gives congress the ability to regulate commerce. Heart of atlanta motel argued that congress has no authority to regulate intrastate commerce. The argument was that the activity of the motel was purely intrastate (or with georgia) with no interstate ramifications, such that congress did not have authority over that activity. Right to travel was implicated in the provisions of the civil rights act. The right to travel was considered vitally important for interstate commerce, thus congress had authority under the commerce clause. That is, purely intrastate conduct can be regulated if it has a significant impact on interstate commerce. As long as there is a significant relationship related to interstate commerce that is sufficient, it can be regulated. Possession of a gun in so many feet of a school.
