X. Marshall’s Definitions of Federal Power to Regulate Commerce A. Definition of Commerce: “Movement of goods and services, labor and trade, navigation and transportation.” B. Definition of Interstate 1. Anything that crosses state boundary lines -or2. Any activity totally within one state that affects commerce in other states or commerce that crosses state boundary lines. C. Definition of Regulate 1. Enumerated Power (The Goal): “regulate commerce among the several states.” 2. Add the “Necessary and Proper” Clause 3. Implied Power (The Means to achieve the goal): Affectation Doctrine D. Key Words to Establish the Scope of Federal Power 1. Close and Substantial Relationship / Impact / Effect 2. Appropriate Relationship / Impact / Effect 3. Necessary and Proper Relationship 4. Reasonable Basis XI. Post Civil War / Gilded Age Interpretation of Federal Power A. Political and Economic Impact of Railroads B. Conventional Morality: Doctrine of Laissez Faire C. Coalition of Businessman Republicans and Southern Democrats D. Question: Even if Federal Law is Constitutional, des it apply to specific business situations? E. Sample Cases 1. United States v. E.C. Knight (1895)***** 2. Shreveport Rate Case (1914) 3. CBQ Rate Case (1922) 4. Hammer v. Dagenhart (1918) F. Current of Commerce: Can the Federal Government Regulate? XII. Impact of the Great Depression and the New Deal A. Political and Economic Climate Changes B. Conventional Morality Changes but the Court Does Not C. Sample Cases 1. Schechter Poultry v .United States (1935)***** 2. Carter v. Carter Coal (1936) 3. United States v. Butler (1936) D. Roosevelt Court Plan and Impact on Court Decisions E. Sample Cases 1. NLRB v. Jones and Laughlin (1937)***** 2. NLRB v. Fainblatt (1939) 3. United States v. Darby (1941) XIII. Modern Scope of Federal Power A. Aggregate Impact Doctrine / Class Impact B. Sample Cases 1. Wickard v. Filburn (1942)***** 2. United States v. Southeastern Underwriters (1944) 3. Heart of Atlanta Motel v. United States (1964*****) C. Rational Basis Test D. Sample Cases 1. Katzenbach v. McClung (1964)***** 2. Perez v. United States (1971) 3. United States v. Lopez (1995) 4. Moose Lodge v. Ervis E. What is the Problem with Rooting Federal Civil Rights Legislation in the Commerce Clause? How could the Federal Government make civil rights legislation constitutional if not rooted in the Commerce Clause? F. Define “Public Facility,” “Public Accommodation,” and “Substantial Nexus” XIV. Scope of State Regulatory Power A. Can States Tax Interstate Commerce? B. Marshall’s “Original Package Doctrine” C. Pre-Civil War “Doctrine of Selective Exclusivity” 1. Cooley v. Board of Port Wardens (1851) D. Post-Civil War “Journey of Commerce Doctrine” 1. Coe v. Errol (1886) E. Modern Approach – Reasonable Basis / “Balancing Test” 1. Must Prove no Discrimination Against Interstate Commerce and Must Prove no Undue Burden to Interstate Commerce 2. Must Further an Important State Interest 3. Sample Cases a. South Carolina Highway Dept. v. Barnwell Bros. (1938) b. Southern Pacific RR v. Arizona (1945) c. BIBB (Illinois) v. Navajo Freight (1959) d. New Energy Company of Indiana v. Limbach (1988) F. When can a state discriminate against interstate commerce? 1. State as Buyer 2. State as Seller 3. When a state is an active participant in commerce, it may discriminate against interstate commerce. When the state regulates, it may not discriminate or create an undue burden to interstate commerce.