Can Manufacturers Institute, Inc. v. State

289 N.W.2d 416, 1979 Minn. LEXIS 1686, 13 ERC 1689
CourtSupreme Court of Minnesota
DecidedSeptember 7, 1979
Docket48349
StatusPublished
Cited by5 cases

This text of 289 N.W.2d 416 (Can Manufacturers Institute, Inc. v. State) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Can Manufacturers Institute, Inc. v. State, 289 N.W.2d 416, 1979 Minn. LEXIS 1686, 13 ERC 1689 (Mich. 1979).

Opinion

PETERSON, Justice.

The constitutionality and validity of Minnesota’s Package Review Act (Minn.St. 116F.06) and the regulations for package review (Minn.Reg. SR-1 to SR-6) promulgated under the statute by the Minnesota Pollution Control Agency (MPCA) are the subject of this appeal. Section 116F.06 was enacted on May 24, 1973 (L.1973, c. 748, § 6); the regulations became effective on December 31, 1974.

The complaint for declaratory judgment and the motion for injunctive relief were initiated in May 1975 by plaintiffs, five industry associations representing manufacturers of packages and containers, and nine manufacturers of packages, containers, and closures. Defendants are the state of Minnesota, the MPCA, and the MPCA’s executive director. Final judgment for defendants was entered on August 17, 1977, but the trial court issued an order enjoining enforcement of the statute and the regulations pending plaintiffs’ appeal of the judgment to this court.

Minn.St. c. 116F (the Act) deals with materials entering the solid waste stream and the recycling of materials, with the stated purpose of encouraging the reduction of the amount and kind of materials entering the solid waste stream and the reuse and recycling of materials. The statutory rationale is that solid waste represents discarded materials and energy resources and constitutes an economic burden upon the persons of this state. § 116F.01.

The Act provides for a multifaceted approach to the solid waste problem, including § 116F.06, which provides for review of new or revised packages and containers 1 entering the Minnesota market. The powers and *419 duties of the MPCA in implementing the Act are set forth in § 116F.05, subd. 1, and include encouraging “the extension of the useful lives of products, and the reduction of both solid waste generation and solid waste management costs.” § 116.05, subd. 1(f). See, also, § 116F.05, subd. 3.

Section 116F.06 authorizes the MPCA to review packaging innovations as a method of controlling solid waste generation and wasteful use of energy and natural resources and to prevent the introduction of packages which would create additional solid waste problems or be inconsistent with the state’s environmental policies. § 116F.06, subd. 2. The statutory scheme, the only scheme of its type in this country, consists of the following procedures: The MPCA is authorized to review new or revised packages except when the revisions involve only color, size, shape, or printing. Any person, including the package user, may submit the package to the MPCA for review, and the MPCA staff has 120 days to review it. § 116F.06, subd. 3. Unless the MPCA acts within the 120-day period, it may not thereafter prohibit the sale of the package under review. If the MPCA disapproves a package, the manufacturer of the package may voluntarily withdraw it from further consideration and resubmit it at a later time; or, the MPCA may, after notice and hearing under Minn.St. c. 15, issue an order prohibiting the sale of the package in the state. § 116F.06, subd. 2. If the decision of the MPCA is to prohibit the package, the Minnesota Environmental Quality Board (MEQB) may review the proposed action. § 116F.06, subd. 2. Any MPCA prohibition of a package remains in effect only until the last legislative day of the next following legislative session, unless extended by law. § 116F.06, subd. 2. In other words, the legislature must enact the prohibition into law or the prohibition lapses. The MPCA, in effect, acts on this issue as factfinder for the legislature.

The regulations at issue in this case were noticed and adopted pursuant to Minn.St. 1974, § 15.0412, and are comprised of six sections, Minn.Reg. SR-1 to SR-6. 2 Among other things, the regulations detail the factors the MPCA will consider in reviewing a new package, the review procedure the MPCA will follow, the information about the package the MPCA will require in order to conduct its review, and the type of package that will be exempt from review by the MPCA.

Plaintiffs use two different arguments in challenging various aspects of the regulatory scheme. One, they broadly challenge the entire regulatory scheme (both the statute and the regulations) on constitutional grounds, contending that it imposes an undue burden on interstate commerce and that it is so vague and imprecise that it constitutes a taking of plaintiffs’ property without due process of law. We reject these constitutional attacks. Two, they attack in several respects the regulations adopted by the MPCA, contending that some of the regulations are contrary to legislative intent under § 116F.06. We accept plaintiffs’ arguments on these points.

I. Constitutional Issues

Plaintiffs contend the statute and the regulations unduly burden interstate commerce. It is fundamental that the Commerce Clause prevents a state from erecting barriers to the free flow of interstate commerce. This is so even if the Congress has not itself exercised its power under the Commerce Clause. Nevertheless, state legislation, designed to serve legitimate state interests and applied without discrimination against interstate commerce, does not in all circumstances violate the Commerce Clause even though it affects commerce. Raymond Motor Transp. Inc. v. Rice, 434 U.S. 429, 440, 98 S.Ct. 787, 793, 54 L.Ed.2d 664, 674 (1978). Whether a state’s regulations impermissibly impact upon interstate commerce must be determined by weighing the nature and extent of the state’s regulatory interests against the extent of the burden imposed on the course of interstate commerce. As the United States Supreme Court framed the test in Pike v. *420 Bruce Church, Inc., 397 U.S. 137, 142, 90 S.Ct. 844, 847, 25 L.Ed.2d 174, 178 (1970):

“Although the criteria for determining the. validity of state statutes affecting interstate commerce have been variously stated, the general rule that emerges can be phrased as follows: Where the statute regulates evenhandedly to effectuate a legitimate local public interest, and its effects on interstate commerce are only incidental, it will be upheld unless the burden imposed on such commerce is clearly excessive in relation to the putative local benefits. Huron Cement Co. v. City of Detroit, 362 U.S. 440, 443, 80 S.Ct. 813, 816, 4 L.Ed.2d 852. If a legitimate local purpose is found, then the question becomes one of degree. And the extent of the burden that will be tolerated will of course depend on the nature of the local interest involved, and on whether it could be promoted as well with a lesser impact on interstate activities.”

Applying the Pike test, it is clear the only element of the test at issue in the present case is whether the burden imposed on interstate commerce by the package review process is clearly excessive in relation to the legitimate state interest undergird-ing the regulatory scheme. There is no question that § 116F.06 and the MPCA’s regulations regulate evenhandedly.

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Bluebook (online)
289 N.W.2d 416, 1979 Minn. LEXIS 1686, 13 ERC 1689, Counsel Stack Legal Research, https://law.counselstack.com/opinion/can-manufacturers-institute-inc-v-state-minn-1979.