3] Grants Congress sole power to regulate foreign, interstate, and Native American commerce. In a novel application of the Commerce Clause, a federal court decided in United States v. Bishop Processing Co., 287 F. Supp. "The Impact of United States v. Lopez: The New Hybrid Commerce Clause." Not every private enterprise that is carried on chiefly or in part by means of interstate shipments is necessarily so related to the interstate commerce as to come within the regulating power of Congress. All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. The Court reasoned that the Commerce Clause does not give the residents of one state the right to obtain resources from another state at what they consider a reasonable price, for that right would enable one state to control the development and depletion of natural resources in another state. The Commerce Clause is an enumerated power listed in the United States Constitution (Article I, Section 8, Clause 3). If you continue browsing the site, you agree to the use of cookies on this website. Warehouses, grain elevators, and other storage facilities also might be considered instrumentalities of interstate commerce. At least four possible interpretations of the Commerce Clause have been proposed. The court decided that the state could impose this burden of tax collection on the corporation because the corporation was licensed to do business in the state and it enjoyed the benefits flowing from its state business. Definition of Commerce Clause. A state may tax the sale of gasoline or other motor fuels that were originally shipped from another state, after the interstate transaction has ceased. The Commerce Clause was designed to eliminate an intense rivalry between the groups of those states that had tremendous commercial advantage as a result of their proximity to a major harbor, and those states that were not near a harbor. This prohibition applies to the importation of obscene matter even though it is for the importer's private, personal use and possession and not for commercial purposes. Const., Art. 2d 974 (2000). The plaintiff, the United States, sought an Injunction under the federal Clean Air Act (42 U.S.C.A. The California Court of Appeals reversed, and Hunt-Wesson, having intervened in the lawsuit as Beatrice's successor-in-interest, appealed. Although a state may not directly regulate, prohibit, or burden interstate or foreign commerce, it may incidentally and indirectly affect it by a bona fide, legitimate, and reasonable exercise of its police powers. Such a measure was not an unreasonable burden on interstate commerce. Learn more. Navigable waters are instrumentalities of commerce that are subject to the control of federal and state legislation. Railroads and tracks, terminals, switches, cars, engines, appliances, equipment used as components of a system engaged in interstate traffic, and vessels (including ferries and tugs) are also subject to federal regulation. The provision of the U.S. Constitution that gives Congress exclusive power over trade activities among the states and with foreign countries and Indian tribes. Article 1, Section 8, Clause 3, of the Constitution empowers Congress "to regulate Commerce with foreign Nations, and among several States, and with the Indian Tribes." The courts take a commonsense approach in examining the established course of business in order to distinguish where interstate commerce ends and local commerce begins. Despite this, the clause is one of the most misunderstood in the Constitution. In reaching its decision, the Court took the various tests used throughout the history of the Commerce Clause to determine whether a federal statute is constitutional, and incorporated them into a new standard that specifies three categories of activity that Congress may regulate under the clause: (1) the channels of interstate commerce, (2) persons or things in interstate commerce or instrumentalities of interstate commerce, and (3) activities that have "a substantial relation to interstate commerce … i.e., those activities that substantially affect interstate commerce." Specifically, where the commerce is not such as to require uniform regulation throughout the country and no relevant federal regulation exists, the states retain the power to regulate it until Congress, at a later date, enacts further legislation to restrict them. In a unanimous opinion written by Justice stephen breyer, the U.S. Supreme Court struck down California Revenue and Taxation Code Section 24344. Concerning the transportation of persons and property, the commission had the power to enforce the statutory requirement that a certificate of public convenience and necessity be obtained before commencing or terminating a particular transportation service. 2d 884 (1981), the U.S. Supreme Court upheld a 30 percent severance tax levied by Montana on the production of coal, the bulk of which was exported for sale to other states. Specifically, this clause permits Congress to regulate participation in this activity with other countries and with "Indian Tribes." To your inbox show that the government can regulate commerce with foreign nations, and among the states '. The purposes of this lawsuit, the Clause gives Congress the unless Congress does so a navigable stream located a. To exclusive content US Constitution states that the Clause commerce clause definition Congress exclusive power trade. Passage from a point in one state from another state is intrastate depends. 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