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Questions On The State Law

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Whether the State Law is Preempted
A state statute is preempted where Congress validly legislates regardless of whether or not the Commerce Clause or DDC is invoked.

The National Banking Act; The Act permits 1) national banks 2) to operate with explicit power to regulate the issuance of credit or debit cards as well as implied power “necessary to carry on the business of banking” including the offering of “electronic stored value systems.”

The issue is whether or not the BNA bank (BNA) can validly impose “inactivity fees” and “expiration dates” in conjunction with issuance of the gift card for the Maxus Mall (MM).

Probably yes.
“National bank means a national banking association or a Federal branch or agency of a foreign bank.” 12
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It has been well established that courts presume that Congress act does not preempt state law unless it manifests its intent to do so expressly or impliedly. “with the assumption that the historic police powers of the States [are] not to be superseded [unless] that was the clear and manifest purpose of Congress.” Rice v. Santa Fe Elevator Corp. Moreover, in Gade v. National Solid Wastes Management Association, 505 U.S. 88 (1992), the issue was to determine whether or not Congress manifested its intent to preempt state law impliedly, as well as whether state’s police power was presumed in the subject matter historically within the state’s sovereignty. The court ruled that “The unavoidable implication of this provision is that a State may not enforce its own occupational safety and health standards without obtaining the Secretary’s [approval].” Here, in the present case, National Banking Act does not expressly preempt state law, however, it can still be argued Congress intended to do so impliedly. Unlike, in Gade (by obtaining the Secretary’s approval), the Act at issue contains no conditions expressly stipulated as to what the state could do to avoid the preemption. Moreover, the Act was designed to create uniformity of national bank regulation and preempts any state law attempting to regulate national banks that conflicts the main objectives the Act. Minnesota Gift Law would conflict the objectives of the Act because it prohibits gift cards subject to inactivity fees
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