Document: 530 U.S. 363120 S.Ct. 2288147 L.Ed.2d 352 NOTICE: This opinion is subject to formal revision before publication in the preliminary print of United States Reports. Readers are requested notify Reporter Decisions, Supreme Court States, Washington, D. C. 20543, any typographical or other errors, order that corrections may be made goes press.CROSBY, SECRETARY OF ADMINISTRATION AND FINANCE MASSACHUSETTS, et al., Petitionersv.NATIONAL FOREIGN TRADE COUNCIL No. 99-474. SUPREME COURT THE UNITED STATES Argued March 22, 2000 Decided June 19, ON WRIT CERTIORARI TO STATESCOURT APPEALS FOR FIRST CIRCUIT Syllabus In 1996, Massachusetts passed a law barring state entities from buying goods services companies doing business with Burma. Subsequently, Congress imposed mandatory and conditional sanctions on Respondent (hereinafter Council), which has several members affected by Act, filed suit against petitioner officials State) federal court, claiming Act unconstitutionally infringes foreign affairs power, violates Foreign Commerce Clause, preempted Act. The District permanently enjoined Act's enforcement, First Circuit affirmed. Held: preempted, its application unconstitutional, under Supremacy Clause. Pp. 7-26. (a) Even without an express preemption provision, must yield congressional if intends occupy field, California v. ARC America Corp., 490 93, 100, extent conflict statute, Hines Davidowitz, 312 52, 66-67. will find where it impossible for private party comply both obstacle accomplishment execution Congress's full purposes objectives. What sufficient determined examining statute identifying purpose intended effects. Here, such obstacle, undermines natural effect at least three provisions. 7-9. (b) First, delegation discretion President control economic Although put initial place, authorized terminate measures upon certifying Burma progress human rights democracy, impose new findings repression, and, most importantly, suspend interest national security. Within sphere defined Congress, given as much exercise leverage Burma, eye toward security, permits. plenitude Executive authority controls issue here. not merely make political statement but achieve result, fullness his shows importance mind reaching result. It implausible think would have gone lengths empower had been willing compromise effectiveness allowing local ordinances blunt consequences actions. Yet this exactly what does. Its immediate perpetual, there being no termination provision. unyielding President's leaving him less diplomatic than 10-13. (c) Second, interferes intention limit pressure Burmese Government specific range. stands clear contrast prohibits some contracts permitted affects more investment reaches domestic while confines reach persons. thus conflicts penalizing individuals conduct explicitly exempted excluded sanctions. That two Acts common end hardly neutralizes conflicting means, fact able sets does mean odds achievement decision about right calibration force. 13-16. (d) Finally, speak among world's nations develop comprehensive, multilateral strategy. called Presidential cooperation countries developing strategy, directed encourage dialogue between democratic opposition, required report these efforts. like over sanctions, invested maximum National Government. capacity effective diplomacy. response passage, governments protests lodged complaints World Trade Organization. consistently represented complicated dealing sovereigns proven impediment accomplishing objectives assigned Congress. case, positions competent direct evidence frustration Barclays Bank PLC Franchise Tax Bd. Cal., 512 298, distinguished. 16-23. (e) State's remaining argument-that failure preempt demonstrates implicit permission-is unavailing. existence cognizable Clause depend recognition conflict, provide expressly reflect nothing settled character implied courts dependably apply. 23-25. 181 F.3d 38, Souter, J., delivered Court, Rehnquist, Stevens, O'Connor, Kennedy, Ginsburg, Breyer, JJ., joined. Scalia, concurring judgment, Thomas, Opinion Justice Souter Court. 1 whether Commonwealth Massachusetts, restricting agencies purchase Burma,1 invalid Constitution owing threat frustrating statutory We hold is. 2 * adopted "An Regulating State Contracts Companies Doing Business (Myanmar)," 1996 Mass. 239, ch. 130 (codified Gen. Laws §§7:22G-7:22M, 40 F (1997). generally bars person (defined include organization) identified "restricted list" those §§7:22H(a), 7:22J. general provision waiver ban, exempt boycott present solely news, §7:22H(e), international telecommunication services, ibid., medical supplies, §7:22I. 3 " `Doing Burma' broadly cover 4 "(a) having principal place business, incorporation corporate headquarters (Myanmar) operations, leases, franchises, majority-owned subsidiaries, distribution agreements, similar agreements (Myanmar), subsidiary, licensee franchise person; 5 "(b) providing financial government including loans, underwriting securities, consulting advice assistance, brokerage acting trustee escrow agent, otherwise agent pursuant contractual agreement; 6 "(c) promoting importation sale gems, timber, oil, gas related products, commerce largely controlled (Myanmar); 7 "(d) (Myanmar)." §7:22G. 8 There exceptions ban: (1) procurement essential, restricted bid, bids insufficient competition, §7:22H(b); (2) §7:22I; (3) efforts elicit "comparable low bid offer" §7:22H(d), meaning offer 10 percent greater To enforce requires Secretary Administration Finance maintain all firms "doing Burma,"2 §7:22J. 9 September months after was enacted, imposing set See Operations, Export Financing, Related Programs Appropriations 1997, §570, 110 Stat. 3009-166 3009-167 (enacted Omnibus Consolidated §101(c), 3009-121 3009-172). five basic parts, substantive procedural. imposes directly bans aid except humanitarian counternarcotics efforts, promotion democracy. §570(a)(1). instructs representatives institutions vote loans assistance §570(a)(2), provides entry visa shall issued official unless treaty staff mission Nations, §570(a)(3). These restrictions remain "[u]ntil time determines certifies measurable substantial improving practices implementing government." §570(a). 11 authorizes further certain conditions. He prohibit "United persons" "new investment" do so he physically harmed, rearrested, exiled Daw Aung San Suu Kyi (the opposition leader selected receive Nobel Peace Prize), committed "large-scale repression violence Democratic opposition." §570(b). "New into contract favor "economical development resources located Burma," ownership interests benefits development, §570(f)(2), term specifically excludes (and prohibition) "entry into, performance of, financing sell goods, technology," ibid. 12 Third, directs work "a strategy bring democracy improve quality life Burma." §570(c). instructed cooperate Association Southeast Asian Nations (ASEAN) major trade devise approach, pursue additional objective fostering ruling Law Order Restoration Council (SLORC) groups. Ibid. 13 As procedural provisions fourth section periodically committee chairmen democratization better living conditions well §570(d). And fifth part "to waive, temporarily permanently, sanction [under Act] - contrary security States." §570(e). 14 On May 20, Order, Exec. 13047, CFR 202 (1997 Comp.). certified §570(b) "committed large-scale Burma" found Government's actions policies constituted "an unusual extraordinary policy States," characterized emergency. then prohibited "by persons," §1, approval facilitation persons, §2(a), transaction meant evade avoid §2(b). incorporated exemptions addressed statute. §§3, 4. delegated tasks working ASEAN rights, making reports.3 §5. II 15 (Council) nonprofit corporation representing engaged commerce; 34 were list 1998. Natsios, 48 (CA1 1999). Three withdrew passage one member increased acceptance listed bidder only next-to-lowest higher. 16 April 1998, seeking declaratory injunctive relief charged administering enforcing (whom we refer simply State).4 argued infringed violated After detailed stipulations, briefing, argument, enforcement holding "unconstitutionally impinge[d] government's exclusive regulate affairs." Baker, 26 F. Supp. 2d 287, 291 (Mass. 1998). 17 Appeals affirmed independent grounds. F.3d, 45. interfered power Zschernig Miller, 389 429 (1968), see 52-55; dormant Const. Art. I, §8, cl. 3, 61-71; id., 71-77. 18 petition certiorari challenged grounds asserted said shared measures.5 Though opposing certiorari, acknowledged significance issues need settle constitutionality laws regulations. Brief Opposition 18-19. granted resolve important questions, 528 1018 (1999), now affirm. III 19 A fundamental principle law. VI, 2; Gibbons Ogden, Wheat. 1, 211 (1824); Savage Jones, 225 501, 533 (1912); 101 (1989). preemption, circumstances. When "occupy field," area preempted. Id., 100; cf. Locke, 529 ---, --- (2000) (slip op., 23) (citing Charleston & Western Carolina R. Co. Varnville Furniture Co., 237 597, 604 (1915)). even occupied naturally statute.6 66-67 (1941); supra, 100-101; 17). law, see, e.g., Florida Lime Avocado Growers, Inc. Paul, 373 132, 142-143 (1963), "under circumstances [a] particular [the law] Congress." Hines, 67. matter informed whole effects: 20 "For when question Federal act overrides entire scheme course considered needs force expressed. If cannot accomplished-if operation within chosen field else frustrated refused their effect-the regulation power." Savage, 533, quoted 67, n. 20. 21 Applying standard, Act.7 "natural effect" is, limitation persons investment, directive proceed diplomatically towards Burma.8 22 clearly flexible immediately (prohibiting bilateral aid, §570(a)(1), support §570(a)(3)), determining ban dependent And, significantly, empowered act] 23 investiture respect augmented flexibility9 respond change suspending recalls Jackson's observation Youngstown Sheet Tube Sawyer, 343 579, 635 (1952): "When acts authorization maximum, includes possesses own plus can delegate." also 635-636, (noting relations citing Curtiss-Wright 299 304 (1936)). then, placed position our admit. just deference every ordinance might, enforced, discretionary action.10 24 different, system regime. seen, penalizes action (as administered President) allow, pulls levers influence reach. But point here immediate,11 130, §3 (restricting law's date); Gen §7:22K (1997) (authorizing regulations timely implementation), §7:22J (restricted updated months). restrain fully coercive economy choose take open him, believes lifted, promise lifting move regime direction. Quite simply, enforceable consequence. Dames Moore Regan, 453 654 (1981), used metaphor bargaining chip describe funds valuable hostile country, 673; here, reduces value chips created statute.12 "stands U.S., B 25 manifestly §570(b), limited §570(a), places carefully investment," pointedly exempts technology, §570(f)(2). show calibrated deliberate effort steer middle path," 73.13 different course, number points While differs relying entirely indirect through third parties connections, scope addressed. restricts §7:22H(a), purchasing supplies essentials (or short comparable bids), targeting §7:22G(b), §7:22G(d), though transactions ambit prohibition exercises 27 affected, class it: generality discreteness. indirectly costs §7:22G, save reporting news telecommunications §§7:22H(e), 7:22I. operations affiliates pre-existing investments, lie beyond act's development. §§570(b), 570(f)(2). moreover, domestic, whereas limits 28 rendered irrelevant argument real statutes because they share same goals restrictions. Petitioners 21-22. means,14 Gade Solid Wastes Management Assn., 505 88, 103 (1992), degree employ. 61 ("The identical"); 67 (finding preemption). `[C]onflict imminent' `two separate remedies brought bear activity,' Wisconsin Dept. Industry Gould Inc., 475 282, 286 (1986) (quoting Garner Teamsters, 346 485, 498-499 (1953)). Sanctions drawn bar allow permit, inconsistency C 29 "comprehensive, ibid.,15 explicit command initiative community Government, 635, harmony constitutional powers, Const., II, §2, ("[The President] Power, Advice Consent Senate, Treaties" "shall appoint Ambassadors, public Ministers Consuls"); Ambassadors Ministers"). mandate invocation exclusively belies suggestion voice obscured action. 30 Again, capacity, instance differences type threaten complicate discussions; very Nation governments. get consideration affecting realize persuade rests bargain access exception enclaves fenced off willy-nilly inconsistent tactics.16 qualify coherent behalf economy, weakened, regime, together hopes "comprehensive" strategy.17 Cf. Moore, 673-674. 31 effectively seems enough, record replete answer skeptics. country's allies trading partners 47 Japan, European Union (EU), ASEAN), Note Verbale EU Department protesting Act.18 warned "could damaging EU-US relations." Hugo Paemen, Ambassador, Union, Delegation Commission, William Weld, Governor, Jan. 23, App. 75. 32 Japan step lodging Organization (WTO), Agreement Procurement,19 H. Doc. 103-316, 1719 (1994) consequence embroil dispute proceedings auspices WTO. brief WTO threatening Communities al. Amici Curiae 7, note become topic "intensive discussions" highest levels, discussions exchanges twice yearly EU-U.S. Summit.20 33 dealings Assistant Larson, example, saying imposition unilateral "complicates build coalitions allies" promote A. Local Sanctions: Remarks Governments (Dec. 8, "[T]he EU's high level often focused law." 3.21 echoed Department: "While [Massachusetts Burma] pursuit noble goal, restoration risk shifting focus debate Allies away best way potential consistency obligations. Let me clear. settlement process. honest threatened case risks diverting States' Europe's attention focusing should be-on Eizenstat testimony, 115.22 35 combination addressing obligation 36 Our discussion 327-329 (1994), weight protests, retaliation, statements undercut point. Barclays, preemptive tax discriminatory extraterritorial reactions powers opinions fathoming intent taken rejecting governments, 324-328, Executive, 328-329. however, done render beside consequence, necessarily involved indications concrete disputes senior Act.23 unquestioningly defer legal judgments expressed Branch character, 328-329, never questioned competence practical difficulty pursuing goal requiring multinational agreement. have, all, recognized "determin[e] precisely offended acts," Container Corp. Bd., 463 159, 194 (1983), "nuances" "the province Court," 196; 327. repeated representations supported demonstrate objectives.24 IV 37 contends permission. out repeatedly declined enact aimed calls large South Africa 1980s, various authorities cited thought preempted.25 stresses aware did statute.26 us conclude continuing implies approval, particularly light occasional instances past.27 38 unconvincing level. doctrine apply, event, inference unwarranted therefore, silence ambiguous. Since ruled 1980s invalid, arguable parallels tell validity latter. V 39 Because discretion, actors, direction judgment 41 ordered. Notes noted military "Burma changed country's] name Myanmar 1989," court use since amici curiae, so. 45, follow suit, noting term, Circuit's, view. According challenge inclusion submitting affidavit stating 289 Office's Operational Services Division makes final determination. implement Treasury, consultation State. §6. 21, Treasury Order. pt. 537 (Burmese Regulations). One offices incumbents during litigation 48, (CA 1999), once certiorari. "At nineteen municipal enacted analogous purchases 47; Pet. Cert. N. Y. Admin. Code §6-115 (1999); Los Angeles Code, 12, §§10.38 seq. Philadelphia §17-104(b) Vermont J. Res. 157 (1998); 1999 Vt. 13). recognize, categories "rigidly distinct." English General Elec. 496 72, 79, (1990). variety frustrated, "field pre-emption understood species pre-emption." 79-80, 5; 104, (1992) English, supra); 115-116 (Souter, dissenting) similarity "purpose-conflict pre-emption" L. Tribe, American Constitutional 486 (2d ed. 1988)); 1177 (3d 2000) "field" fall express, implied, concedes, must, Reply Tr. Oral Arg. 5-6. add already rejected "statutory escapes spending rather regulatory 287 (1986). Gould, debarring repeat violators Labor Relations U.S.C. § 151 seq., contracting statute's mechanism conflicted 288-289. "ha[d] police power" reduce leave another day context presumption preemption. 16). Assuming, arguendo, appropriate, conclude, based analysis below, presents Davidowits, (1941). conclusion affirm decline issue, 6, pass Circuit's rulings Ashwander TVA, 297 288, 346-347 (1936) (concurring opinion). Statements sponsors underscore clarity flexibility policy. 142 Cong. Rec. 19212 (1996) (emphasizing administration reacting changes, positive negative, behavior [Burmese regime]) (statement sponsor Sen. Cohen); 19213; 19221 (describing "giv[ing] President, who, Democrat Republican, conducting Nation's policy, flexibility") cosponsor McCain); 19220 ("We remove transition stage moving support") Feinstein). chose pliant Executive. See, 19219 (letter Barbara Larkin, Secretary, Legislative Affairs, Cohen) (admitted unanimous consent) believe current your language proposes consistent stated occasions past, events consult appropriate responses ongoing future there"). arguments could read suggest implicitly left 19-24. reject cramped view evidence. More itself strongly indicates opposite. For protecting "national interests" ground §570(e), 3009-167. unlikely enable protect giving simultaneously requires. resemble appeared proposed 3540 act. 3540, 104th Cong., Sess., §569(1) (1996). obviously anticipated analysis. Feinstein) nudging SLORC dialog opposition. why lift sanctions"). broader range lends Most passed, replaced original barred "any limitation. competing amendment, S. 1511, 1st Sess. 29, 1995), similarly provided nationals §4(b)(1), "articles produced, manufactured, grown, extracted §4(c)(1), travel §4(c)(2). earlier amendment 1092, (July 28, 1995). lend conclusions deliberate. 19279 Breaux) (characterizing "strik[ing] balance unfettered country"). discussed, (statements Sens. Nickles Cohen), rejected, 19280 Murkowski) ("Instead draconian legislation us, adopt approach secures interests"). reliance CTS Dynamics America, 481 69, 82-83 (1987), proposition "[w]here furthers conflict" misplaced. Indiana securities "further[ed] investor protection," 83, examined "[i]n goal," Identity ends 286. supports central (remarks ("[T]o effective, coordinated friends allies"); ("Only likely successful"). Such concerns raised Branch. Testimony Under Subcommittee House Ways Means Committee (Oct. 1997) testimony), 116 ("[U]nless conceived coordinated, speaking obligations, uncoordinated US defensive shift problem themselves"). cases relations. Line, Ltd. County Angeles, 441 434, 449 (1979); Chy Lung Freeman, 92 279; Federalist 80, pp. 535-536 (J. Cooke 1961) (A. Hamilton) ("[T]he peace ought disposal part. union undoubtedly answerable members"). reflects concern reason. 19214 Thomas) ("Although I readily admit relationship especially deep, certainly downgrade little have. Moreover, affect many Asia try corral them following lead"); ("It absolutely essential seek allies. unilaterally, opposite effect-alienating allies, impact ground"). amicus briefs serious 6. suspended request Court's Letter Ole Lundby, Chairman Panel, (Feb. 10, automatically lapsed, Understanding Rules Procedures Governing Settlement Disputes, International Legal Materials 1125, 1234 neither reinstating procedures future. fact, EU, represents begin injunction lifted. 7. merits proceedings. Senior Level Group Report U.S.-EU Summit, Washington 17, http://www.eurunion.org/news/summit/Summit Annex/SLGRept.html. Larson declared "has hindered ability grave situation significant irritant impeded strong coalition we, goal." Alan P. continues advance us. Amicus Curiae, 8-9, 34-35. presented officials. Deputy David Marchick Assembly, Oct. 137; Maryland Delegates Matters, Mar. 25, 166 (same). who indicated inflexible cause difficulties crafting supra. facts prior alternatives Executive's communications, bolster relevance regard accomplish goals. 9, appears argue ignore Tariffs (GATT), foreclosed suits challenging basis GATT courts, raise challenge. Uruguay Round Agreements (URRA), §102(c)(1), 108 4818, 3512(b)(2)(A), 3512(c)(1); "Statement Administrative Action" (SAA), reprinted 103-216, 656, 675-677 (1994). consider evidence, view, violate courts. terms §102 URAA SAA argument. They challenges "Uruguay Agreements." decisions evince approval. Board Trustees Mayor City Baltimore, 317 Md. 79-98, 562 720, 744-749 (1989) (holding divestment Comprehensive Anti-Apartheid 1986 (CAAA)), cert. denied subnom. Lubman 493 U. S 1093 (1990); Constitutionality African Divestment Statutes Enacted Goverments, Op. Off. Counsel 49, 64-66, WL 213238 (state selective pre-CAAA law); Nos. 99-548, 99-549 (denying CAAA); 132 23119-23129 (House resolutions); 23292 (Sen. quoting testimony Laurence Tribe). Members revoked measures, "urg[ing]" participants rescind Senator Boxer Transition Support 1993, 107 1503. finds recent reform bill, seemed measures. Rep. 105-2708 (1997); 143 E2080 (Rep. Hamilton). 1979, 50 §2407(c) (1988 ed.) (Anti-Arab Israel "preempt rule, regulation"). 42 whom Thomas joins, judgment. 43 perfectly obvious face concurrence "provid[e] policy." Ante, 9. therefore devoting footnote interesting (albeit unsurprising) "[s]tatements Act" intent, letter officer Executive," ante, 11, excursus pointless succeeding rely (devoid "sponsors" "Executive") refute quite telling 10. 44 expected "move direction," 13. expectation, 13, 12. 45 "calibrated" one, "limit[ed] range," bills introduced adopted, 13-14, (even surprising) "limits deliberate," ante 14, feel na ;ve assumption bill committee, reported floor, "reject[ion]" contained, Curiously, later recognizes, ambiguous." 24. Would come relied (several times) implications legislation, 23. 46 "multilateral strategy" countries. says words, §570(c), 111 3009-166. footnotes Senators favored 15, 18, 17. record, discusses, 18-21, inflexibility produced caused strategy." context, conflict," "congressional sponsors" Executive" actually predicted causing impeding strategy," Of invocations legislative history utterly irrelevant, still object them, individual (ordinarily virtually empty floor),1 nor letters committees, nonenactment reliable indication majority Houses voted intent-the thing know sure attributed them-is words way, using unreliable confirm plainly anyway shows) objectionable since, outcome. utter lack necessity worse-calling St. Augustine's enormous remorse stealing pears hungry, devil ("not aught shame, shame !"). Confessions, Book 2, ¶9, Great Books 10-11 (1952) (E. Pusey trans. 1952). 49 portion extensive, comprising, total, one-tenth opinion's size (since type) content. wasteful (it preordained, 25-page essay) harmful, tells litigants that, face, effects help presumably harm) case. so, researched discussed counsel-which appellate considerably consuming, hence expensive, be. my outweighs good persistent irrelevancy, indulged margins: readers footnotes. reason, join Debate became seems, respect, departed ordinary. 19263 (1996)(statement McConnell) (noting, regarding up next: "I anyone side Chamber").

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