Federalism Part 2

1. Federalism Part 2

2. Powers • Delegated Powers (enumerated powers) – powers given to Fed gov’t by Constitution • Reserved Powers – state power alone • Concurrent Powers – shared • Prohibited Powers – denied from both • Ex. Neither gov’t can tax exports

3. Commerce clause • Art. I, Sec. 8, Cl. 3 – ‘The Congress shall have power - To regulate commerce with foreign nations, and among the several states, and with the Indian tribes.” • Congress has used the elastic clause to stretch this power • What is commerce? “Buying and selling of goods and services.” • Congress given the power to regulate commerce between foreign countries and US as well as state to state… they control business law.

4. Gibbons v. Ogden (1824) • 1824 – aka “The Steamboat Case” • Ogden received a state licensed monopoly to run a ferry across the Hudson River • Gibbons also saw the potential of the traffic between NJ and NY and obtained a federal license. • Ogden sued saying he had the valid state license, even though Gibbons had US license

5. Gibbons v. Ogden (1824) Result – Gibbons wins • Expanded national power in all areas of commerce law because nation overruled state in interstate trade issues • Fed Gov’t gets STRONGER • All trade today is primarily controlled by national law

6. Commerce Clause • Who cares? Why is it important? • Gibbons v. Ogden ruling makes a loop hole giving Congress power to take control over any issue involving the movement of people, or things • Fed gov’t power increased

7. United States v. Lopez (1995) • 1995 – “Gun Free School Zone” law banned possession of a firearm within 1000 feet of a school, 12 year old Lopez carried a gun on to the property • Declared law unconstitutional – “nothing to do with commerce” – carrying a weapon through a school zone is too much of a stretch for “commerce” • LIMITED National government power

8. Gonzalez v. Raich (2005) • Controlled Substance Act (1970) – US gov regulates the manufacture, importation, possession, and distribution of certain drugs • Medicinal marijuana was legalized in California, but illegal to US government.Raich argued commerce clause should not take effect because 1) there was no business transactions and 2) there were no state border issues. • Supreme Court ruled 6-3 against Raich saying that the federal government could trump state laws that permitted medicinal marijuana

9. 2 Federalisms TWO METAPHORS… • Dual Federalism – Layer Cake Federal State • Cooperative Federalism – Marble Cake

10. Fiscal Federalism • Q – How do you get the states to do things they normally wouldn’t do? • A – Money • Q – What is the answer to any question ever asked? • A – Money

11. Grants-in-Aid • Money paid from one level of government to another to be spent for a specific purpose • Categorical Grants - target specific purposes and “strings attached.” (States receive funds if state raised age to 21 and lowered BAC to .08) • Block Grants – given for broad, general purposes and allow more discretion on how the money is spent (ex. Welfare reform)

12. Mandates • A requirement that a state undertake an activity or provide a service • Most apply to Civil Rights and the Environment • Often times the states or local gov’ts have to pay the bill of the mandate set by Congress

13. Mandates • 1986 – Asbestos Emergency Response Act, Handicapped Children’s Protection Act • 1988 – Drug-free Workplace Acts, Ocean Dumping Ban Act • 1990 – Clean Air Act • EX – Columbus, OH spends 23% of the city budget trying to meet environmental mandates (including testing for pesticides used on rice and pineapple) • EX – Public schools have to use Internet filtering or schools lose e-rate subsidies

14. The Devolution Revolution Devolution = delegation of power & responsibility Clinton Era reaction to growth in power of the national government due to Republican majority in both houses of Congress • President Clinton: responsibility to administer federal programs as chief executive • SOH Gingrich: roll back scope of federal government and give back of power to the states • Contract with America: shift responsibilities to states; Unfunded Mandate Reform Act of 1995

15. Devolution Example • Personal Responsibility and Work Opportunity Reconciliation Act of 1996 • Eliminated welfare and transferred the money to states as block grants • States received wide latitude on how to administer “workfare” but with the knowledge that Congress was counting on anti-poverty spending” • Strings attached: head of family must work or lose benefit; lifetime benefits limited to 5 years; unmarried mother < 18 only receive $ if stay in school and live with adult; immigrants ineligible for 5 years

16. Summary – Key Points to Remember • Federalism is an important concept of the American system of government meant to limit the power of the national government. • The notion of Federalism has changed drastically since the New Deal in the 1930’s. • In the 1960’s and 1970’s the scope of federal domestic policies and programs increased steadily. • In the 1980’s Reagan began a rollback of federal funding for programs and funding to states. • In the mid-1990’s Republican Congress promised to reduce the size and scope of the national government and “return power to the states.”