Document: 426 U.S. 794 96 S.Ct. 2488 49 L.Ed.2d 220 Harry R. HUGHES, etc., et al., Appellants,v.ALEXANDRIA SCRAP CORPORATION. No. 74-1607. Argued Jan. 21, 1976. Decided June 24, Syllabus As part of a complex plan for ridding the State abandoned automobiles, Maryland statute provided that anyone in possession an inoperable automobile over eight years old ("hulk") could transfer it to licensed scrap processor, who then claim "bounty" from its destruction, without delivery processor or subsequent submission any documentation title. In 1974 was amended require submit title order receive bounty. But requirements differ as between with plant and out-of-state processor. The former need only "indemnity agreement" which unlicensed hulk supplier certifies his own right agrees indemnify third-party claims arising destruction; non-Maryland must either certificate title, police vesting bill sale auction. Appellee is Virginia participating whose supply bounty-eligible hulks received sources declined after enactment amendment. brought suit claiming amendment violated Commerce Clause denied appellee equal protection laws. A three-judge District Court granted summary judgment appellee, enjoined giving further effect restricts obtain bounties based on indemnity agreements processors only. Held: 1. does not constitute impermissible burden interstate commerce violation Clause. Pp. 802-810. (a) Maryland's kind action concerned. has sought prohibit flow regulate conditions under may occur, but rather entered into market itself by offering bid up price hulks; impact occurred because made more lucrative suppliers dispose their instead taking them out State. 804-806. (b) Nothing purposes forbids State's entry purchaser potential articles where trade citizens. Although practical channel benefits domestic processors, no barrier type forbidden impedes movement 807-810. 2. Nor deny amendment's distinction foreign complemented reasonable assumptions delivered are likely have been Maryland, those outside bears rational relationship basic statutory purpose using state funds clear landscape automobiles. That all Constitution requires case economic legislation. might furthered underlying artfully, directly, completely warrant conclusion method chose unconstitutional. 810-814. 391 F.Supp. 46, reversed. Henry Lord, Baltimore, Md., appellants. Norman P. Ramsey, appellee. Mr. Justice POWELL opinion Court. 1 This involves two-pronged constitutional attack recent one agreed participates plan, We disagree both points. 2 * 1967 session Legislature commissioned study suggest some way deal growing aesthetic problem concluded root existence bottlenecks "scrap cycle," course vehicle follows abandonment processing metal ultimate re-use steel mills. At 1969 session, legislature responded enacting comprehensive designed speed cycle money carrot stick.1 intricate, provisions relevant this be sketched briefly. 3 legislative had found junkyards wrecking companies, tended accumulate vehicles resale value spare parts. statute's stick bottleneck requirement wrecker desiring keep premises license pay recurring fine specified age retained than year.2 identified another cause sluggishness low profits earned wreckers others delivering processors. written remedy paid statute, formerly titled Maryland.3 When stockpile delivers scrapping shares bounty equally receives entire when destroys supplied someone other wrecker.4 4 These penalty work elementary laws economics cycle. retention vehicles, plus prospect sharing bounty, tandem encourage move also deliver able higher normal prices them.5 5 Penalty provisions, however, did remove impediment smooth functioning legal origin. possibility suits conversion against owners they vehicles. To meet several documents prove vehicle, required these condition receiving One documents, called "Wrecker's Certificate," can given statute.6 It essentially secures following notice procedures at time first obtains vehicle. Suppliers provide document properly endorsed department notices, auction.7 6 requirements, although vital themselves slight encumbrance upon free Apparently recognition fact, reduced owners' ancient placed ("hulks") special category. Section 11-1002.2(f)(5) enacted, substance title.8 7 extends burdens fines, form share bounties, maintain located wreckers. There similar residency wish participate program,9 fact seven 16 participated Pennsylvania Virginia. Appellee, corporation near Potomac River Alexandria, original licensee statute. Presumably proximity southern Washington, D. C., areas, attracted enough Maryland-titled rank third among receipt through summer 1974. 8 apparently most virtually (96%) processed during period were hulks, demand later 1974, changed significantly treatment amending § 11-1002.2(f)(5).10 Under law longer possible submitting differs like Maryland. simple person certified destruction. Hulk long such agreements" matter industry practice. give applies hulk. cannot agreement. For it, now depends same general: auction, Wrecker's Certificate. B 9 complaint filed shortly effective date 11-1002.2(f)(5). Papers submitted indicated followed precipitate decline number appellee's sources.11 attributed primarily decision hulks.12 easier sign agreement secure documentation. Because use gave advantage competition suppliers. Such therefore tend remain moving 10 contended below interfering with, "burdening," across lines, discriminating arbitrarily agreements. claims, D.C., 46. appealed, we noted probable jurisdiction. 423 819, 31, 46 36. II 11 relies argument adopted starts premise, well established history Clause, Nation common lines barriers raw materials finished goods response demand. See Great A&P Tea Co. v. Cottrell, 424 366, 370-371, 923, 927-928, 47 55 (1976). concedes until system operated conformity common-market principle. unimpeded enhance thus make would moved plants. 12 amendment, limit enhanced available stayed inside discouraging processing. result reduced.13 contends "burden" commerce, permissibility determined test Pike Bruce Church, Inc., 397 137, 142, 90 844, 847, 25 174 (1970). there stated "the extent will tolerated . depend nature local interest involved, whether promoted lesser activities." supra, U.S., 371-372, S.Ct., 928. 13 accepted analysis, failed Test. First, court impose "substantial commerce." F.Supp., 62. Moreover, considered disadvantage suffered particularly suspect previous decisions Court, noting avoid build new plants carry business which, prior pursued efficiently Foster-Fountain Packing Haydel, 278 1, 73 L.Ed. 147 (1928); 145, 849. principal support that, making difficult suppliers, tends reduce amount destruction States acknowledged validity interest, means employed inappropriate furthered, less hulk's titling there.14 14 line reasoning force if premise accepted. every reducing manner potentially burden. persuaded 15 situation presented quite unlike cases relies. cases, imposed Arizona fresh fruit grown packed before shipment interstate. prohibited bulk, what shipments. H. Hood & Sons Du Mond, 336 525, 69 657, 93 865 (1949), New York official milk distributor wanted open farmers immediate Boston. denial blocked increase milk. Toomer Witsell, 334 385, 68 1156, 92 1460 (1948), shrimp burdened South Carolina boats fishing off coast dock pack taxes catches transporting increased cost shipping (1928), Louisiana forbade export shelled beheaded, impeding natural freshly caught canners States. Both Shafer Farmers Grain Co., 268 189, 45 481, 909 (1925), Lemke 258 50, 42 244, 66 458 (1922), involved efforts North Dakota disrupt grain imposing burdensome regulations controlling profit margin corporations purchased And West Virginia, 262 553, 43 658, 67 1117 (1923), gas producers needs piping surplus, any, thread interfered prohibition regulation. By contrast, occur. Instead, price. because, since effectively take State.15 17 Appeee recognizes precedent argues nevertheless subjected scrutiny actions earlier "(w)hat chosen discriminate, discrimination Brief 63. short, urges alleged "is immunized novelty." Ibid. 18 believe, novelty presentation should characterize intended suspect. prevent undermined fledgling cohesive whole victory Revolution.16 aspect Clause's eloquently expressed Jackson: 19 "Our system, fostered farmer craftsman shall encouraged produce certainty he access Nation, home embargoes withhold exports, customs duties exclude them. Likewise, consumer look producing area protect him exploitation any. vision Founders; doctrine reality. ." 539, 665. 20 realizing Founders' adhered strictly principle "that engage gift state, restrain it." Id., 535, 663.17 today asked hold purchaser, effect, article creates citizens businesses within 21 do believe independent justification action. purpose, commendable legitimate, protecting environment. furthering elected payment removal streets junkyards. true initially financial benefit channeled, chronology distinguish case, purposes, offered start.18 Regardless largesse confined resting same: flowing They forces, including exerted animating prohibits State, absence congressional action,19 exercising favor others.20 III 22 violative Equal Protection Clause.21 supports holding contending difference operations justifies denying agreements, discriminatory furthers legitimate purpose. having justify basis operation. insist interests served it. agree respect primary find unnecessary consider furthered. 23 related clearing Underlying complementary Based assumptions, easy in-state so, ensure limited resources targeted opposed contiguous 24 rejected observation "not proffered scintilla factual (its) assumption nonresident Maryland." 57. demanded too much. certainly irrational: terms likelihood, reasonably assume destroyed vice versa. compelled verify logical statistical evidence.22 belied "loophole" remains even results proof Thus, recover previously elsewhere. effort achieve according Maryland.23 26 established, classification impinging fundamental especially dealing matters, drawn so fit precision Williamson Lee Optical 348 483, 489, 75 461, 465, 99 925 (1955). completely, Katzenbach Morgan, 384 641, 86 1717, 1727, 828 (1966). 27 present still allows proper logic destroy suggests rationality discontinuing altogether. If prepared say go substantially curtailing payments processors.24 28 Few contend taken straightest road goal, drafting refinement introduced scheme operates surveyor's precision. clean environment, requires. Dandridge Williams, 471, 486-487, 1153, 1162, 491 (1970); San Antonio School Dist. Rodriguez, 411 44, 1278, 1302, 36 (1973); McGinnis Royster, 410 263, 270, 276-277, 1055, 1059, 1062, 35 282 (1973). 29 erred finding invalid Accordingly, 30 So ordered. 31 STEVENS, concurring. 32 dissent impression Court's opinion, I join reservation, represents significant retreat settled practice adjudicating program places unconstitutional commerce. fact. addressing e critical issue case. 33 important differentiate flourishes owes subsidy program. Our regulation constitutes dealt restrictions adversely affected operation market. unique "burdened" exist decided subsidize portion scrap-processing business. 34 artificially enhancing certain created exist.* initiated included subsidies Those stimulated thereby rise stake litigation. said burdened, never existed instance confine operators failure create unobjectionable surely obligation Nor, my judgment, inhibit power experiment different methods encouraging industry. Whether encouragement takes cash subsidy, tax credit, privilege attract investment capital, note characterized hardly challenged 1969. Since describe elimination Indeed, temporarily subsidized totally eliminated. follow, impermissible. 37 Unquestionably terminate program, firms, offending Constitution. Since, hypothesis, dependent availability payments, complete termination precisely partial effected caused nonreceipt regardless elects continue follows, question arisen concerns. 38 litigant federal address countless situations past two centuries experimented enterprise providing competitors. challenge programs reflects, correct interpretation (at least Congress spoken) States' national market, questioning incentives novel concept represented departure accepted, impair 39 BRENNAN, whom WHITE MARSHALL join, dissenting. 40 continues reinterpretation repudiation principles guiding judicial analysis thereunder shifting focus see National League Cities Usery, 833, 2465, 245, role considering constitutionality claimed impermissibly Principles heretofore our E. g., Hwy. Dept. Barnwell Bros., 303 177, 58 510, 82 734 (1938); Southern Pacific ex rel. Sullivan, 325 761, 65 1515, 89 1915 (1945); Sons, Inc. (1949); Bibb Navajo Freight Lines, 359 520, 79 962, 1003 (1959); (1976), ignored,1 plainly burdening easily susceptible principled limitation, judicially carved summarily labeled concerned." Ante, 805. well-established analyzing inapplicable merely "kind (state) action" defensible cease, irrespective facts circumstances somehow categorically determines instant "a (not) suspect." 807.2 view, "(e)very determining amounts 'burden' belongs point along graduated scale." 568, 670 n.2 (Frankfurter, J., dissenting). Therefore, am "constrained treating striking balance competing exercise absolutes." 64, 668. 41 appellants addition, wishes run environmental objectives, origin Plainly pursuant "artificially enhance" originating boundaries. questions respecting concern scrap, obviously restricted light asserted governmental objectives doing consequent However, solely analyzed "purchase" items restriction "purchases" single-minded issues view erroneously decides weighty directly addressed ignores pressing answers: restrict purchases produced, manufactured, use, affect total precludes quantum otherwise occur behave private disinterested purchaser. Nevertheless, gainsaid refusal protectionism purchase end produced elsewhere facial obvious "discrimination commerce" often "(t)he clause, force, ., whatever method." 185, 514. 633; Best Maxwell, 311 454, 455-456, 61 334, 335, 85 275 (1940); 596, (1923). Clearly "aim effect" "establishing products labor residents," Baldwin G. A. F. Seelig, 294 511, 527, 497, 502, 632 (1935). Certainly naked assertion "(n)othing others," 810, stands stark contrast "repeated emphasis promote advantages curtailment 532, 662. 44 particular precedents, aimed requiring relocation bounds tending "to neutralize belonging to" States, 50 Halliburton Oil Well Reily, 373 72, 83 1201, 202 (1963), forcing "an artificial rigidity pattern industry." 404, 1166, 1205, (1948). (1928). "viewed suspicion statutes performed Even pursuing clearly declared per se illegal." 849 (emphasis supplied). held "clearly interest." See, supra ; supra. Patently, "would eat rule guise exception." 523, 500. true, notes, whether, enters "(restrict) State." 808.3 question, conclusory assertion, employing policies, others." 810. attempt tell us source "right."4 Others argued restrictive purchasing policies already great significance, Melder, Economics Trade Barriers, Ind.L.J. 127, 139-141 (1940), courts refused, "in expanding proprietary activities states," invitations forgo acting capacity implementing policies. Garden Dairies Vineland, Sills, N.J. 349, 358, 217 A.2d 126, 130 Recent Cases, 80 Harv.L.Rev. 1357, 1360-1361 (1967). hold, consistent principles, facially unless justified regulating matters "reasonable nondiscriminatory alternatives, adequate conserve interests, available." Dean Milk Madison, 340 354, 71 295, 298, 95 329 (1951). 373, 929; 847; Polar Ice Cream Creamery Andrews, 375 361, 375, 84 378, 386, 389 n.9 (1964); 524, 500.5 Second, insistence viewing qualitatively sense "purchaser" leads question. commentators permissible American Yearbook Askew, 339 719 (MD Fla.), aff'd, 409 904, 230, 168 (1972); McAllister, 144, 164-165 instances "proprietary" distinguished modes "purchasing" use; rather, "price enhanced" affecting link chain metal, originates point. if, concludes, motive cease point, allegedly larger diverting boundaries.6 48 apparent reference "Maryland Sought occur." 806 arguable best,7 establish "(o)ne challenging enactment" grounds bound "declarations purpose" show purported objective feigned real purpose." 10, 3. (1948); Buck Kuykendall, 267 307, 315-316, 324, 328, 623 (1925). More importantly, purity motives intent " 'a not, guise, prosecution business.' 522, 500; 335. "A mean imposes limitations save rare artlessly discloses avowed discriminate goods." 298. Rather, once object "this states beginning law; answer." Bode Barrett, 344 583, 589, 468, 472, 97 567 (1953) Established dictate proceed follows: "Where regulates evenhandedly effectuate public effects incidental, upheld excessive relation putative benefits. found, becomes degree. 847. 51 Frankfurter, universally recognized foremost students practitioners jurisprudence said: 52 "The Willson (Willson Black-Bird Creek Marsh Pet. 412 (1829)) begins wholesome concrete elements concerns interests. particularities touch aims scope fulfillment, difficulties seeks adjust, so. kindred considerations, myriad manifestations, weighed fate legislation ever Marshall set standard deciding controversies 'under case.' Supreme single quality differentiates judges acuteness realization however screened doctrine, underlie resolution conflicts power." Marshall, Taney Waite 33-34 (1937). 53 fails mechanically concluding concerned," 805, limiting principle, disturbing conclusion, little imagination foresee future "set(ting) barrier(s) traffic laid thing transported," 521, design regulatory becoming short 54 be, developed Part IV, Infra, policy restricting location processing, truly environment "reasonably interests." search shuts regulation, "immun(izing)" "statutes kinds done sister State," 141, mode "purchaser." Clearly, absolutely unrestrained markets fairly enhancing" price, door 'set equivalent rampart place origin.' 377, 387. IV preclusion help used aid clearance concern, (1829), "recognized conflicting Congress, residuum governing measure even, extent, 767, 1519; Huron Cement Detroit, 362 440, 443-444, 813, 815-816, 852 (1960). mere being matter, exists "infinite variety operate reconciliation attained appraisal accommodation demands involved." 768-769, 1520. resolving close necessarily "differences degree (resolution which) depend(s) differences fact." 572, 672 dissenting); sullivan, 796, 1532 (Douglas, dissenting), record containing "relevant material 'afford sure basis' informed judgment" required. 770, 1521 (Court's opinion). lacking 56 comes posture, and, notes "contains details (processing) scheme." 809 n.18.8 Similarly, ensuring record, context, contains evidence achieved regard (this) (interest)." speculative best, revealing neither nor administrative promulgated adequately inform transportation costs haulers haul inexpensive circumstances. vacate remand development issues. Florida Avocado Growers, Paul, 132, 136-137, 1210, 1214, 248 (1963); 545, 668 Md. Laws, c. 556. law, amended, codified Md.Ann.Code, Art. 661/2, 5-201 Et seq. (1970 ed. Supp.1975). §§ 5-202, 5-203(d) (Supp.1975). 5-205 addition wreckers, frequently, tow wrecked retaining spare-part value. started $10 $16 suit. text, Supra, half sum assured willingness constant expensive machinery efficiently, "rebate" example, regularly pays $14 current 5-203(b), (c) 5-203.1, 11-1002.2(f)(1-4), 11-1002.2(a-d) Ann.Code, (1970), originally read "Notwithstanding section, person, firm, corporation, unit government property Abandoned Motor owner motor faulty, destroyed, Without notification Of subsection (subsections (b)) engine inoperable." (Emphasis supplied.) relating storage records books account, equipment. 5-202 An "office" approved Vehicle Administration. Md.A.R.R. 11.02.05.45. Md.Laws, 465. change wording n. 8, added language: "In physically operating execute contain name, signature manufacturer's serial identification satisfactory acceptable full authorized section Otherwise, administering apply." 5-205, mentioned provision authorizing payments. 797. sections authorize elaborate 798. affidavit general manager statistics showed decline. During six-month immediately preceding 14,253 sources. six months thereafter, 9,723. marked 31.8% figures Increase 11.9% Appellee's Certificates almost exclusively, doubled (from 1,934 4,161 vehicles). plummeted 54.9% From 12,319 5,561 comparable thereafter. accomplish directly. After withdrawn altogether amendment: "Old continued fetch 'artificially value' intrastate operating' Old exported ineligible sold much lower prevailing metal. towing services high prices, transactions beyond borders entailed sacrifice. bounty-generated rebates Maryland-based provide." 34. Cf. III. Again, emphasize terms, Require prices. simply practice, views operating. n.13, Supra. course, interruption "It freedom trade, break down flow, Annapolis Convention called, adjourn Philadelphia. Thus generating lay rising volume restraints Confederation check. proximate today. "As evils wont do, dictated character remedy. specifically clause. No Power enforce Hence, necessity creating entirely government." W. Rutledge, Declaration Legal Faith 25-26 (1947). 533-535, 665, (1949). relies, discussed 805-806, illustrate makes block 1032 (1935); (1951); (1964). generally appears created, substantial part, scheme. hesitate eliminating forces. scheme, presented. undertook add additional reliance stipulated participation alteration intimate consequences, respect. 587, 661, (1923); Ribble, 219 implies selective undertaken silent. withdraw decide annual fee. position forces compete businesses, regulations. Nippert Richmond, 327 416, 586, 760 (1946); Memphis Steam Laundry Stone, 342 389, 72 424, 436 (1952); Point Grocery Opelika, 354 390, 77 1096, 1420 (1957); (1963). Fourteenth Amendment, persons "within jurisdiction." Blake McClung, 172 239, 165, 432 (1898), unprotected Tennessee subordinated creditor corporations. here McClung. "doing bring jurisdiction service process officers agents." 261, 174. fee become maintains office subject "long arm" carries active (all Virginia), (Maryland's) jurisdiction" licensing think entitles Amendment Y. Glassboro, 393 117, 119, 286, 287, 242 (1968); Wheeling Steel Corp. Glander, 337 562, 571-572, 1291, 1296, 1544 earlier, 12, ability footing certificates. rested State: 796-797, 799, certificates always eyesores stands, conditioning titling, manifests intricate instituted destroying wherever happened Pennsylvania. unpersuasive brief. shows streets, lots, conditioned probably convenience. Determining problems invite fraudulent claims. worth emphasizing licensing, nominal burdens, choose feel merit expense, entirely. accurate enlarged small significant. newly pre-existing "For hundred Congressional legislation, affords inimical acted, legislature, clause final arbiter 769, 1520, (1945). Heretofore, adjudication invoked sensitive scrutiny, entailing consideration circumstances, function, actual Di Santo Pennsylvania, 273 34, 267, 271, 524 (1927) (Stone, 371, 928, has, affirmed ruling (1972) (Brennan White, JJ., voting jurisdiction). contexts "(l)ike individuals Government enjoys unrestricted supplies, determine deal, fix needed purchases." Perkins Lukens 310 113, 60 869, 876, 1108 (1940). Heim McCall, 239 175, 191-192, 78, 83, 206 (1915); Atkin Kansas, 191 207, 222-223, 124, 148 (1903). None challenges Field Barber Asphalt 194 618, 784, 1142 (1904), face contracts mandated materials. articulated justifying me infer announced "state sovereignty" 245 motivating rationale behind holding. disclaims legislate area, 810 n.19, hope confess difficulty, understanding why, area. exposes categorical approach today's decision, carves declares application, looking asserted, action, achieving reasoned elsewhere" "virtually Per illegal," 849, incidental consequence perhaps tolerated" necessary concern. 146, traditional balancing absolutist conclusions IV. refuses crudely measured multiplying times purchases. restricted; presumptively customarily pass largest value, occurring Qua words, occurs virtue locations element "purchases," "purchase." concurring asserts "by hypothesis," hypothesis unsupported 831, n.8, "we payments," "(t)hat (the) plants," plants." 815, 816. With respect, arguments contrary. uncontradicted reveals "subsidy" passed hauler, App. 79A, inability haulers, lack subsidization itself, alleges "(a) Plaintiff's consists acquired towers Maryland"; "enabl(es) inducements (towers) while depriving plaintiff same"; "(i)n severe competitive arbitrary diversion (hulks) away channels commerce"; "depriv(ed) iron, nonferrous normally 10A-11A. "market heavily mills willing (metal), turn influenced international conditions," relatively fierce acquisition hulks." 59A. lifeblood cars," hulks," very cars derived 74A-75A. acquire year older crucial importance conduct business," 78A, disabled passing "was Plaintiff regular (haulers program)." "(I)n scarcity (among processors) sharpest, (pass haulers) is, offer increasing imparts distinct edge fully program." 82A-83A. preamble Act sufficient "(f)or Certain .." 15A original). significant." 815 argue, Appellants 37-39; Reply 2-3, noted, 62 (1975).

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