Document: 467 U.S. 82 104 S.Ct. 2237 81 L.Ed.2d 71 SOUTH-CENTRAL TIMBER DEVELOPMENT, INC., Petitionerv.Esther WUNNICKE, Commissioner, Department of Natural Resources Alaska, et al. No. 82-1608. Supreme Court the United States Argued Feb. 29, 1984. Decided May 22, Syllabus Pursuant to an Alaska statute, published a notice that it would sell certain timber from state lands under contract requiring "primary manufacture" (partial processing) within before successful bidder could ship outside State. Petitioner, corporation engaged in business purchasing and shipping logs into foreign commerce, does not operate mill customarily sells unprocessed logs. When learned primary-manufacture requirement was be imposed on sale state-owned involved here, petitioner filed action Federal District seeking injunction ground violated negative implications Commerce Clause which may enact laws imposing substantial burdens interstate commerce unless authorized by Congress. The agreed issued injunction, but Appeals reversed. That court found unnecessary reach question whether, standing alone, violate Clause, because implicit congressional authorization federal policy taken land Alaska. Held: judgment is reversed, case remanded. 693 F.2d 890 (CA 9 1982), reversed Justice WHITE delivered opinion with respect Parts I II, concluding erred holding Congress has Alaska's requirement. Although there clearly delineated policy, endorsed Congress, requirements as for export or shipment other States, order regulation removed dormant being intent must unmistakably clear. affirmatively contemplate otherwise invalid legislation mandated policies underlying doctrine. fact appears consistent policy—or even furthers goals had mind—is insufficient indicium intent. acted only lands; cannot inferred intended authorize similar lands. Pp. 87-93. LeRoy Eugene DeVeaux, Anchorage, petitioner. Kathryn A. Oberly, Washington, D.C., amicus curiae, special leave Court. Ronald W. Lorensen, Juneau, respondents. announced III IV, BRENNAN, BLACKMUN, STEVENS joined. 1 We granted certiorari this review decision Ninth Circuit held processed State prior "implicitly authorized" therefore Clause. 464 890, 231, 78 224 (1983). hold reverse Appeals. 2 * In September 1980, approximately 49 million board-feet area Icy Cape, October 23, 1980. sale, prospectus, proposed all provided, pursuant 11 Admin.Code § 76.130 (1974), "[p]rimary manufacture will required provision contract."1 App. 35a. Under requirement, partially process State.2 limit owned stated purpose "protect existing industries, provide establishment new derive revenue resources, manage State's forests sustained yield basis." Governor's Policy Statement, 28a. imposes charges significantly lower price than would. Brief Respondents 6-7. 3 major method complying convert cants, are slabbed at least one side. satisfy cants either sawed maximum thickness 12 inches squared four sides along their entire length.3 4 South-Central Timber Development, Inc., timber, logging almost exclusively Japan.4 It Cape brought arguing Clause.5 injunction. Inc. v. LeResche, 511 F.Supp. 139 (Alaska 1981). finding 1982). 5 first decide whether correct challenged If not, we respond respondents' submission should affirm two grounds reached Appeals: (1) absence approval permissible acting market participant, rather regulator; (2), if local-processing forbidden II 6 its text affirmative grant power regulate long been recognized self-executing limitation such commerce. See Lewis BT Investment Managers, 447 27, 35, 100 2009, 2015, 64 702 (1980); Hughes Oklahoma, 441 322, 326, 99 1727, 1731, 60 250 (1979); H.P. Hood & Sons, Du Mond, 336 525, 534-538, 69 657, 663-665, 93 L.Ed. 865 (1949); Cooley Board Wardens, How. 299, 13 996 (1852). equally clear "redefine distribution over commerce" "permit[ting] states manner permissible." Southern Pacific Co. Arizona, 325 761, 769, 65 1515, 1520, 89 1915 (1945). also Sporhase Nebraska ex rel. Douglas, 458 941, 958-960, 102 3456, 3465-3466, 73 1254 (1982); New England Power Hampshire, 455 331, 1096, 188 Western Life Insurance Equalization, 451 648, 652-655, 101 2070, 2074-2076, 68 514 (1981); Prudential Benjamin, 328 408, 66 1142, 90 1342 (1946). done just consistently endorsing land. F.2d, 893. cases have spoken terms express stated: 7 "But always necessary. There instances, like us, where so parallel without explicit approval, effect law favor local interests." Ibid. 8 agree "clearly delineated," incorrect approving existence "parallel" Since 1928, Secretary Agriculture restricted cut National Forest current regulation, upon places heavy reliance, provides: 10 "Unprocessed System exported shipped Regional Forester. This necessary ensure development continued adequate wood processing capacity utilization Forests geographically isolated facilities." 36 CFR 223.10(c) From 1969 1973, 350 lying west 100th meridian (a line running central North Dakota through Texas). 16 U.S.C. 617(a). Beginning imposed, way series annual riders appropriation Acts, complete ban exports western except those See, e.g., Pub.L. 96-126, Tit. III, 301, Stat. 979. These do require in-state sold domestic above-quoted applies well exports. argues statutes regulations demonstrate expression three reasons: has, since treated differently States; (2) Government specifically tailored wood-processing Forests; (3) forbidding demonstrates industry particular, generally, object concern. Acceptance factual propositions mandate acceptance conclusion. Neither SouthCentral nor States6 challenges restrict out-of-state They challenge derivation timber. argue our dealing impermissible interference "express" statement authorization, no implied. 14 true most looked permissible. For example, supra, declined find state-imposed water despite 37 number compacts demonstrated Congress' deference law. noted occasions consent found, insulate attack "expressly stated." U.S., 960, S.Ct., 3466. Similarly, (1982), rejected claim Hampshire restriction flow privately produced electricity 201(b) Act. section provides Act "shall . deprive commission lawful authority now exercised exportation hydroelectric energy transmitted across line." 824(b). nothing statute legislative history "evinc[ing] 'to alter limits Clause.' " 341, 1101 (quoting Public Utilities Comm'n California, 345 295, 304, 706, 712, 97 1020 (1953)). 15 relies large part Court's recent White Massachusetts Council Construction Employers, 460 204, 103 1042, 75 (1983), "implicit approval" theory. At issue executive Mayor Boston construction projects funded city funds administer, performed work force consisting 50% residents city. A were Urban Development Action Grants. insofar expended own projects, participant unconstrained Clause; funds, "the sanctioned pertinent programs." Id., 215, 1048. statements "affirmatively permit" sanctio[n]" "sounds harmonious note" regulations, finds significance did use words Rather supporting position State, believe undermines it. implied reason rely market-participant doctrine uphold order. Instead, upheld harmony expressed governing expenditure funds. 17 talismanic phrase stated," however; merely meeting asserts, wooden formalism. designed "to avoid tendencies toward economic Balkanization plagued relations among Colonies later Articles Confederation." 325, 1730, (1979). Unrepresented interests often bear brunt having significant persons operations States. Thus, "when character burden falls principally state, likely subjected political restraints normally exerted affects adversely some state." South Carolina Highway Dept. Barnwell Brothers, 303 177, 185, n. 2, 58 510, 514, 734 (1938); see 767-768, 1519-1520, 2. On hand, when acts, segments country represented, less danger exploit others. Furthermore, position, allow collective one. rule ensures is, fact, reduces risk unrepresented affected commerce.7 18 might infer lands.8 Accordingly, contrary 19 turn issues left unresolved these restrictions exempt scrutiny "market-participant doctrine." 20 Our make regulator, activities. 206-208, 1043-1044; Reeves, Stake, 429, 436-437, 2271-2277, 244 Alexandria Scrap Corp., 426 794, 810, 96 2488, 2498, 220 (1976). precise contours yet established, however, applied date. 21 cases, Maryland program reduce junked automobiles "bounty" established Maryland-licensed junk cars, more stringent documentation outof-state scrap processors ones. program, although traditional analysis reducing goods 805, 2495. concluded Maryland's kind concerned," ibid., "[n]othing purposes animating prohibits action, participating exercising right citizens others." 2498 (footnote omitted). 22 restricting cement plant residents, declaring "[t]he basic distinction drawn between participants regulators makes good sense sound law." 436, 2277. relied 'the trader manufacturer, entirely private business, freely exercise his independent discretion parties whom he deal.' 438-439, 2278-2279 Colgate Co., 300, 307, 39 465, 468, 63 992 (1919)). essence, principle limitations refusal deal particular goods. 23 developing against whole city-administered residents. argument entitled protection regulating employment contracts public contractors employees. 211, 7, 1046, 7. Recognizing "there government's ability impose beyond immediate government transacts business," define "[e]veryone [was], informal sense, 'working city.' employees "working city" "crucial" White. Building Trades Camden, 465 208, 219, 1020, 1028, 79 249 (1984). 24 contends fits squarely doctrine, "Alaska's entry viewed precisely same type subsidy unobjectionable Scrap." 24. However, became purchaser scrap; participates market, conditions downstream timber-processing market. subsidizing amount "roughly equal difference fetch actually receives." directly subsidized amount, retain option taking advantage forgoing benefits exporting choice made him: buys free take out processing. 25 us Reeves controlling. "Reeves choose timber." 25. Such unrestrained reading unwarranted. strongly endorse whomever chooses not—and purport to—sanction imposition any desire. expressly "Commerce rigorous restraint alleged," 438, 9, 2278, 9; natural resource "like coal, wild game, minerals," involved, instead end product complex whereby costly physical human labor act raw materials," id., 443-444, 2281; bar resale purchasers, 444, 17, 2281, 17. case, elements present Reeves—foreign resource, resale—are present. 26 Finally, boundary formal privity contract," then, fortiori, permissible, buying selling "a seller pure simple." 28. Yet commercial context, usually say over, interest in, how used after sale; payment obligations purchaser, for, delivery paid it, pleases. obligated stranger completion sale.9 27 outer activity necessarily mean application privity. permits influence discrete, identifiable class [it] participant." Workers, Contrary contention, carte blanche dictate, validate someone contractual Tr. Oral Arg. 35. 28 allows go further. conditions, contract, regulatory market.10 Unless "market" relatively narrowly defined, potential swallowing up they fostering industry. 29 heart dispute disagreement definition acknowledges actual 34. argues, using leverage exert participant. latter position. 30 reasons distinguishing preferring initial disposition attachment dispositions subsequent coming rest hands. First, simply matter intuition greater "private trader" transaction what longer them. common notion alienation. Dr. Miles Medical John D. Park Sons 373, 404, 31 376, 383, 55 502 (1911); cf. Continental T.V., GTE Sylvania 433 36, 53, 21, 2549, 2559, 53 568 (1977). antitrust place vertical restraints. defense charging trade achieved integration; were, virtually arrangements. reject contention regulator achieve unimportant support processors, integration, direct subsidy. 34, 37, 45. Second, transaction. Instead choosing trading partners, attempting govern private, separate relationships partners; restricts post-purchase activity. contrast situation White, takes parties' obligations, during course ongoing relationship retained continuing proprietary subject contract.11 sum, avail itself immunize IV 32 restriction, conclude actions qualify exception, substantially ordinary principles. need contention. 33 Viewed naked logs, little survive precedents Pike Bruce Church, 397 137, 844, 174 (1970), invalidated Arizona cantaloupes packed protect enhance reputation growers State," described "surely legitimate." 143, 848. observed: 34 "[T]he suspicion home efficiently elsewhere. Even pursuing legitimate interest, declared per se illegal. Foster-Fountain Packing Haydel, 278 [49 1, 147]; Johnson 6, 155]; Toomer Witsell, 334 385 [68 1156, 92 1460]." 145, 849. 35 bids promoting employment, forbids producers. Because protectionist nature resulting therefrom, virtual invalidity "bloc[k] borders." City Philadelphia Jersey, 437 617, 624, 98 2531, 2535, 57 475 (1978). buttressed conclusion burdened restriction. well-accepted burdening searching scrutiny. crucial efficient execution Nation's speak voice governments." Michelin Tire Corp. Wages, 423 276, 285, 535, 540, 46 495 (1976); Japan Line, Ltd. County Los Angeles, 434, 1813, light attention given peculiarly inappropriate permit subject. Prohibit Export Unprocessed Timber: Hearing H.R.639 Subcommittee Forests, Family Farms, Energy House Committee Agriculture, 97th Cong., 1st Sess. (1981). remanded proceedings 38 ordered. MARSHALL took case. 40 concurring. 41 join WHITE's full constitutes my view, treatment response REHNQUIST point inherent weakness 817, 2501, (1976) (BRENNAN, J., dissenting). 42 POWELL, THE CHIEF JUSTICE joins, concurring judgment. 43 opinion. remand consider "market participant" (1970). 44 REHNQUIST, O'CONNOR dissenting. 45 plurality both artificial unconvincing. draws "simply intuition," ante, 98, then seeks bolster remarks appropriate Clause.* complains "leverage" distort consumer classic example tying arrangement. Steel Fortner Enterprises, 429 610, 619-621, 861, 867-868, 51 80 And cites common-law alienation dismissing accomplish exactly result ways. Ante, 98-99. Perhaps raise problems. But overlooks apply Jefferson Pharmaceutical Assn., Abbott Laboratories, 150, 154, 1011, 1015, 74 882 (1983) (state immunity "does chosen compete retail market"). acts immune Parker Brown, 317 350-352, 313-314, 87 315 (1943). Of course, can hardly justify placing market-regulator category, relying relevant 47 term here transforms "regulation" resident-hiring preference constituted paying buyer indirectly, means reduced price, hire precedent, companies maintain active primary-processing plants 2271, (1980). Or subsidize pay enter 99. seems me unduly formalistic path best suited promote concerns 48 reasons, sign, provided: "Section 68. Primary Manufacture. shall transported primary written "Primary Manufacture defined AAC 1974." (1974) (repealed question, "PRIMARY MANUFACTURE "(a) director cordwood, bolts products accomplished "(b) time development. relation sawmilling, "(1) breakdown wherein size headsaw gang saw extent residual slabs, planks resaw equipment log plants; "(2) further processing, structural timbers (subject firm showing orders form product). "(c) manufacture, reference pulp ventures, fibers separated. Chips wastes considered received manufacture. With veneer plywood production, production green veneer. Poles piling, untreated, manufactured American Institute Standards specifications manufacture." §§ 71.230, 71.910 (1982). Current thicker 83/4 slabs sides. Apparently, high costs associated ports. Consequently, 90% Japan. Petitioner 14, 14. appear blush economically apparently Material appearing record suggests making quite valuable, burned. Record, Exh. 11, p. 63. wasted wood, worth An affidavit vice president part: "5. observation absolutely resawing 'cant' 'square' specifications. words, cant square unsaleable sawmill markets. are: "A. Any prefer round small volume readily available locally. "B. Round preferable stored moved water, whereas "C. Once placed carriage getting incurred, produces lumber cant. "D. Also much deterioration weather conditions. "6. experience inside Jakalof Bay specifications, loaded aboard ships season. attempted transporting Anchorage exceeded highest possible sales cants. Accordingly made. "7. Based above observations industry, marketable market." 121a-122a. curiae South-Central. heightened ramifications borders. coherent exclusive responsibility Government, enhances necessity lightly resolve about applying encouraging event, appears. worthy note, requested so. Sess., 18-19 facts resemble closely 147 (1928), struck down Louisiana prohibiting shrimp heads hulls removed. limitations. controlling recognition owns, control, game fish borders proprietor benefit sovereign representative people," 4, reasoning relevant. consumption borders, "by permitting thereof releases and, taken, definitely terminates control." 13, 4. view post, 102-103, condition impose, regard imposed. law, irrelevant city." residency employer doing evade including title pass until complete. substance transaction, label attached governs analysis. offer demarcation concepts. "[D]ownstream activity." But, "reason" all, restatement participation trying determine. To invoke very fall back again intuition.

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