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Edited on Mon May-09-11 11:14 PM by happyslug
This is mostly involving State Insolvency acts. The Court has upheld such acts whenever the Federal Government failed to pass a Bankruptcy act. Bankruptcy is a reserved power of the Federal Government, that states can NOT pass Bankruptcy acts. The problem was during periods when they was NO Federal Bankruptcy act (We have had an Bankruptcy act since 1897, but from 1787 when the Constitution was adopted to 1897, during most years there was NO Bankruptcy act on the books).
The Federal Court ruled in the late 1800s that while State Insolvency act would be unconstitutional if a Federal Bankruptcy Act was ever passed, in the absence of such a Federal Bankruptcy act the states could pass, and permit the state courts to enforce very similar Acts dealing with insolvent debtors. The States had the right to pass whatever acts the states deemed needed by the state unless such acts were expressly prohibited by the Constitution even if the acts would interfere with acts Congress COULD pass, but have not.
Those same line of cases can be used to justify Arizona position, if the US Supreme Court wants to take on this case. Now, the actual cases are no longer valid for Congress has kept a Bankruptcy Act on the books since the late 1890s, but the concept that the list of Powers of Congress is NOT exclusive to Congress can be toted by citing those cases.
The list of Powers of the Federal Government, Article I, Section 8 of the US Constitution: Section. 8.
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
To borrow Money on the credit of the United States;
To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;
To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;
To establish Post Offices and post Roads;
To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;
To constitute Tribunals inferior to the supreme Court;
To define and punish Piracies and Felonies committed on the high Seas, and Offences against the Law of Nations;
To declare War, grant Letters of Marque and Reprisal, and make Rules concerning Captures on Land and Water;
To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years;
To provide and maintain a Navy;
To make Rules for the Government and Regulation of the land and naval Forces;
To provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions;
To provide for organizing, arming, and disciplining, the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress;
To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, by Cession of particular States, and the Acceptance of Congress, become the Seat of the Government of the United States, and to exercise like Authority over all Places purchased by the Consent of the Legislature of the State in which the Same shall be, for the Erection of Forts, Magazines, Arsenals, dock-Yards, and other needful Buildings;--And
To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.
Article 1, Section 10 list what the States can NOT do, even if Congress does NOT step in and preform those powers:
Section. 10.
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
No State shall, without the Consent of the Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing it's inspection Laws: and the net Produce of all Duties and Imposts, laid by any State on Imports or Exports, shall be for the Use of the Treasury of the United States; and all such Laws shall be subject to the Revision and Control of the Congress.
No State shall, without the Consent of Congress, lay any Duty of Tonnage, keep Troops, or Ships of War in time of Peace, enter into any Agreement or Compact with another State, or with a foreign Power, or engage in War, unless actually invaded, or in such imminent Danger as will not admit of delay.
Notice many of the restrictions can be waived by Congress, but the restrictions in the First Paragraph can NOT be waived.
In the list of powers of Congress, Paragraph 4, list bankruptcy as an exclusive Federal function, but by its terms do NOT prevent the States from passing similar laws, but if the States do set up similar laws, any rule passed by Congress overrules those state laws. Thus Bankruptcy is a Federal Function, but a functions the states can step in whenever the Federal Government does NOT exercise its power in that field. i.e it is NOT an exclusive power, but if passed, Federal Rules are supreme.
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