Government Regulation -- 2020



North American Meat Institute v. Becerra, et al.   (9th Circuit)

Challenging California's effort to regulate conduct wholly outside its borders

The NAM filed an amicus brief urging the Ninth Circuit Court of Appeals to review a lower court's refusal to enjoin a California ballot initiative that discriminatorily regulates the conduct of farmers, manufacturers, and producers nationwide. Proposition 12 bans the sale of imported pork and veal in California unless farmers and producers outside of California meet strict animal confinement standards set by California voters. The NAM, joined by the U.S. Chamber of Commerce and the Food Manufacturing Institute (FMI), argued in the brief that Proposition 12 violates the Commerce Clause by (1) leveling the playing field to the benefit of California producers over out-of-state producers; (2) regulating conduct beyond California’s borders, impinging on other states’ sovereign authority to legislate within their own jurisdictions; and, (3) substantially burdening out-of-state producers absent a sufficient and legitimate local interest. This litigation is important to all manufacturers because if upheld, Proposition 12 may embolden other states to discriminate against out-of-state interests, resulting in a complex web of inconsistent and competing extraterritorial regulations in the agriculture and food industries, and beyond. Unfortunately, on October 16, 2020, the Ninth Circuit affirmed the lower court's ruling.


Related Documents:
NAM brief  (January 10, 2020)