United States Court of Appeals, Fourth Circuit
United States Court of Appeals, Fourth Circuit
United States Court of Appeals, Fourth Circuit
3d 584
Plaintiffs Southern Blasting Services, Inc. and Piedmont Drilling & Blasting,
Inc. seek to conduct explosives businesses and blasting operations in Wilkes
County, North Carolina using Hazardous Materials Transportation Act
("HMTA") Class 1 materials. Plaintiffs challenge two County ordinances, one
which requires permitting of explosives operations and one which regulates the
storage and use of explosives in the County. Plaintiffs claim that the ordinances
are preempted by federal law, are invalid under North Carolina law, and violate
their due process rights. The district court upheld the validity of both
ordinances, granting summary judgment for Wilkes County and the County
Fire Marshal. We affirm.
I.
2
During the summer of 1997, plaintiffs Southern Blasting Services, Inc. and
Piedmont Drilling & Blasting, Inc. set up operations in Wilkes County, North
Carolina. Southern Blasting purchases HMTA Class 1 explosives and has them
hauled to its magazine site in Wilkes County, where they are stored until sold to
industrial customers. Southern Blasting has also expressed an interest in
manufacturing explosives at its site, but it has not yet done so. Piedmont
Drilling conducts blasting operations by drilling holes in rock formations,
loading the holes with explosives, and detonating the explosives to loosen or
remove the rock.
On June 16, 1998, after several months of work by the appointed committee,
the Board unanimously adopted the Wilkes County Explosive Materials
Permitting Ordinance. The Permitting Ordinance required applicants to obtain a
permit from the County Fire Marshal prior to possessing, storing, selling,
transporting, or otherwise dealing in explosive materials in Wilkes County. In
addition, the Permitting Ordinance provided that only businesses operating in
the County on the day the ordinance was adopted could apply for a permit.
And the ordinance gave ultimate decision-making authority to the Fire Marshal.
See Permitting Ordinance art. VI. However, the application process included a
public hearing and consultation with the Federal Bureau of Alcohol, Tobacco &
Firearms ("BATF"), the County Planning Department, the County Health
Department, the County Building Inspections Department, and the Board. See
Permitting Ordinance art. VI(E). Further, the Permitting Ordinance specifically
excluded ammunition or firearms dealers licensed under federal or state law
from its requirements. See Permitting Ordinance art. V, VI(A).
On August 4, 1998, the Board also unanimously enacted the Wilkes County
Explosive Materials Ordinance (the "Regulatory Ordinance"), which became
effective on December 8, 1998 after the necessary approval was obtained from
the North Carolina Building Code Council. This ordinance addressed the
storage and use of explosives in the County. Specifically, the Regulatory
Ordinance restricted the manufacture of explosives, required installation of
security measures at storage locations, set limits on the quantity of stored
explosives, and established penalties for violations. See Regulatory Ordinance
art. VI, VII. Like the Permitting Ordinance, the Regulatory Ordinance excluded
the possession, transportation, storage, and use of small arms ammunition from
its scope. See Regulatory Ordinance art. V. 1
Plaintiffs did not apply for a permit under the Permitting Ordinance. Instead,
plaintiffs initiated this action, alleging that the Permitting and Regulatory
Ordinances were preempted by federal law, were invalid under North Carolina
law, and violated their due process rights. Plaintiffs sought injunctive relief to
prevent the enforcement of the ordinances. The district court concluded that
both the Permitting and Regulatory Ordinances were valid and granted
summary judgment to the County and the Fire Marshal. See S. Blasting Servs.,
Inc. v. Wilkes County, 162 F.Supp.2d 455 (W.D.N.C.2001).
The district court held that plaintiffs' preemption claim failed because Congress
did not intend to "occupy the field" of explosives regulation and plaintiffs had
failed to show a "direct and positive conflict" between the ordinances and any
federal law. Id. at 462-63. The court also concluded that the ordinances and
their enabling statute, N.C. Gen.Stat. 153A-128, were valid under Article II,
24 of the North Carolina Constitution, which prevents the North Carolina
General Assembly from promulgating certain acts of less than statewide
application. The court found that 153A-128 granted authority to regulate
explosive substances uniformly to all North Carolina counties in conformance
with Article II, 24. Id. at 458-59.
The district court next rejected plaintiffs' substantive due process claim, finding
that the ordinances were a valid exercise of the County's police power and were
rationally related to a legitimate governmental purpose. Id. at 459-60. Finally,
because plaintiffs had not even applied for a permit, the district court concluded
that they lacked standing to assert a procedural due process challenge to the
ordinances. Id. at 460-61. Plaintiffs appeal.
II.
A.
10
Yet "[c]onsideration under the Supremacy Clause starts with the basic
assumption that Congress did not intend to displace state law." Maryland v.
Louisiana, 451 U.S. 725, 746, 101 S.Ct. 2114, 68 L.Ed.2d 576 (1981). This
presumption is strongest when Congress legislates "in a field which the States
have traditionally occupied." Medtronic, Inc. v. Lohr, 518 U.S. 470, 485, 116
S.Ct. 2240, 135 L.Ed.2d 700 (1996) (internal quotation omitted). States have
long possessed primary responsibility in our federal system for protecting the
health and safety of their citizens. Id. at 475, 485, 116 S.Ct. 2240. Indeed,
courts "start with the assumption that the historic police powers of the States
were not to be superseded by the Federal Act unless that was the clear and
manifest purpose of Congress." Id. at 485, 116 S.Ct. 2240 (quoting Rice v.
Santa Fe Elevator Corp., 331 U.S. 218, 230, 67 S.Ct. 1146, 91 L.Ed. 1447
(1947)).
11
Nevertheless, there are several ways in which federal law may supersede state
or local law. First, Congress may expressly preempt such laws. See, e.g.,
Hillsborough, 471 U.S. at 713, 105 S.Ct. 2371. Second, in the absence of
express preemptive language, Congress' intent to preempt state law may be
implied when "federal law so thoroughly occupies a legislative field as to make
reasonable the inference that Congress left no room for the States to
supplement it." Cipollone v. Liggett Group, Inc., 505 U.S. 504, 516, 112 S.Ct.
2608, 120 L.Ed.2d 407 (1992) (internal quotations omitted). Finally,
preemption will also be implied if state or local law "actually conflicts with
federal law." Such a conflict occurs "when compliance with both federal and
state regulations is a physical impossibility, or when state law stands as an
obstacle to the accomplishment and execution of the full purposes and
objectives of Congress." Hillsborough, 471 U.S. at 713, 105 S.Ct. 2371
(internal quotations omitted).
B.
12
Plaintiffs claim that federal law regulating the manufacture, distribution, and
The federal law governing explosive materials is codified at 18 U.S.C. 841848 (2000). Section 848, entitled "Effect on State law," provides:
14
15
This statutory language makes clear that Congress did not intend to occupy the
field of licensing and regulating explosives operations. In preemption analysis,
"[t]he purpose of Congress is the ultimate touchstone." Retail Clerks Int'l Ass'n,
Local 1625 v. Schermerhorn, 375 U.S. 96, 103, 84 S.Ct. 219, 11 L.Ed.2d 179
(1963). Here Congress has stated in the clearest of terms that it was not
preempting local efforts to regulate the explosives industry, absent a direct and
positive conflict with the federal standards. In fact, as the district court
recognized, " 848 is designed to limit the preemptive scope" of the federal
law and expressly "disclaims any intent to occupy the field." S. Blasting, 162
F.Supp.2d at 462.2
16
17
Congress' desire not to preempt state and local efforts to regulate explosive
materials is unsurprising given the fact that conditions in states and localities
vary greatly. For example, local governments may determine that the use or
19
To support their argument that a direct conflict is present in this case, plaintiffs
point to numerous provisions of the County Permitting and Regulatory
Ordinances that impose more stringent requirements than those contained in the
federal regulations. For example, unlike the federal regulations, the Permitting
Ordinance requires a permit applicant to submit a detailed history of all past
and present operations, detailed written information on the applicant's financial
ability, and an estimated schedule of all activities and operations the applicant
plans to conduct. See Permitting Ordinance art. VI(C).
20
21
23
III.
24
We next turn to plaintiffs' claim that the County ordinances and their enabling
statute are invalid under the North Carolina Constitution. The Permitting and
Regulatory Ordinances were enacted pursuant to N.C. Gen.Stat. 153A-128
(1999), which states that "[a] county may by ordinance regulate, restrict, or
prohibit the sale, possession, storage, use or conveyance of any explosive,
corrosive, inflammable, or radioactive substance." Plaintiffs contend that both
153A-128 and the County ordinances are invalid under Article II, 24 of the
North Carolina Constitution because they affect trade or business but do not
have statewide application.
25
We note at the outset that a federal court should be exceedingly cautious about
invalidating a state statute or a local ordinance under a state constitution. Like
most states, North Carolina "recognizes a presumption in favor of the
constitutionality of a [state] statute." Gardner v. City of Reidsville, 269 N.C.
581, 153 S.E.2d 139, 150 (N.C.1967). In order for an act of the General
Assembly to be declared unconstitutional under the North Carolina
Constitution, "it must be plainly and clearly the case. If there is any reasonable
doubt, it will be resolved in favor of the lawful exercise of [the General
Assembly's] powers." E.g., Town of Emerald Isle v. State, 320 N.C. 640, 360
S.E.2d 756, 761 (N.C.1987) (internal quotation omitted).
26
27
(1) Prohibited subjects. The General Assembly shall not enact any local,
private, or special act or resolution:
28
29
30
(4) General laws. The General Assembly may enact general laws regulating the
matters set out in this Section.
31
The North Carolina Supreme Court has defined a local act as a law "applying to
fewer than all counties, in which the affected counties do not rationally differ
from the excepted counties in relation to the purpose of the act." Smith v.
County of Mecklenburg, 280 N.C. 497, 187 S.E.2d 67, 73 (N.C.1972).
32
We agree with the district court that " 153A-128 is a general law that
comports perfectly with Article II, 24." S. Blasting, 162 F.Supp.2d at 459.
Section 153A-128 does not apply to fewer than all the counties in North
Carolina. Instead, it uniformly confers authority on all 100 North Carolina
counties to regulate or prohibit explosive materials. Therefore, 153A-128 is
valid under the North Carolina Constitution.
33
33
IV.
34
Finally, we address plaintiffs' due process claim. Plaintiffs contend that the
County violated their due process rights by granting the County Fire Marshal
broad discretionary authority under the ordinances, especially the Permitting
Ordinance. It is not entirely clear, however, whether plaintiffs are presenting
this argument as a substantive or procedural due process challenge. Therefore,
like the district court, we consider each in turn and conclude that plaintiffs'
claim fails under both.
A.
35
In order to state a substantive due process claim, plaintiffs must demonstrate: "
(1) that they had property or a property interest; (2) that the state deprived them
of this property or property interest; and (3) that the state's action falls so far
beyond the outer limits of legitimate governmental action that no process could
cure the deficiency." Sylvia Dev. Corp. v. Calvert County, 48 F.3d 810, 827
(4th Cir.1995). Substantive due process protections "run only to state action so
arbitrary and irrational, so unjustified by any circumstance or governmental
interest, as to be literally incapable of avoidance by any pre-deprivation
procedural protections or of adequate rectification by any post deprivation state
remedies." Rucker v. Harford County, 946 F.2d 278, 281 (4th Cir.1991).
36
Even if plaintiffs could prove that they had a property interest and that the
County somehow deprived them of that interest by making it more difficult to
operate an explosives business, plaintiffs' substantive due process claim fails
under the third prong of the Sylvia test. The County's actions obviously did not
fall beyond the outer limits of legitimate governmental action. Instead, the
First, we need look no further than the text of the Permitting and Regulatory
Ordinances to discover the County's legitimate governmental interest. The
County's purpose in enacting the ordinances was "protecting the public and
safeguarding the health and welfare of the citizens of the County." Permitting
Ordinance art. III; Regulatory Ordinance art. III. The Board found "that the
location, possession, storage, use, handling, manufacture, sale, and
transportation of certain explosive materials, together with the danger of fire,
injury, and theft in connection therewith, constitute[d] a potential hazard to the
health, safety, and welfare of the citizens of the County unless carefully
regulated, controlled, and monitored." Permitting Ordinance art. III; Regulatory
Ordinance art. III. As the district court noted, "[p]laintiffs' suggestion that their
explosives operations pose no threat to the public is absurd" plaintiffs deal
with HMTA Class 1 explosive materials. S. Blasting, 162 F.Supp.2d at 460. We
agree with that court that "it would be a truly strange decision for a court to find
that blasting operations and the storage of inherently hazardous materials do
not present matters of legitimate concern." Id. Protecting the "health, safety,
and well-being of the County's citizens are basic governmental functions. And
this court will not substitute its policy judgments as to the exercise of the police
power for those of a democratically elected local government." Tri-County, 281
F.3d at 439.
38
Second, the Permitting and Regulatory Ordinances are rationally related to the
aforementioned goals of minimizing the risks of theft, fire, and explosion
associated with blasting operations. The ordinances "tighten security at
explosives storage facilities, limit the pre-mixing and storage of volatile
materials, and require information on the size, location, and duration of any
blasting operations." S. Blasting, 162 F.Supp.2d at 460. Further, the County
could reasonably have believed that the Fire Marshal, given his experience with
the hazards of fires and explosions, was in the best position to decide whether
to grant a permit under the Permitting Ordinance, and was in the best position
to enforce the Regulatory Ordinance. Therefore, the County's grant of authority
to the Fire Marshal to review permit applications and implement the ordinances
was also rationally related to the County's legitimate interest in protecting the
health and safety of its residents.
B.
39
40
Second, even if plaintiffs had standing, their procedural due process claim fails
because the Permitting Ordinance does not grant unfettered discretion to the
Fire Marshal. Instead, the ordinance provides ample process by establishing a
set of procedures to ensure that permits cannot be denied or revoked randomly.
For example, a permit applicant must submit a large volume of information,
which is designed to assist the Fire Marshal in determining whether or not the
proposed operation "will be conducted in a safe and responsible manner" in
accordance with federal and state law and County ordinances. See Permitting
Ordinance art. VI(C). Further, before a permit can be granted or denied, the
Fire Marshal must consult with the BATF, the County Planning Department,
the County Health Department, the County Building Inspections Department,
and the County Board of Commissioners. See Permitting Ordinance art. VI(B),
(E). In addition, there must be time set aside at a regularly scheduled Board
meeting "for the purpose of hearing public comment, if any, on the operations
and activities which the applicant proposes to conduct." Permitting Ordinance
art. VI(E). Moreover, if the Fire Marshal ultimately determines that a permit
must be denied, he must provide the applicant with a written explanation of the
reasons for his decision. Id. And a permit applicant "may appeal [a] denial or
revocation to the [North Carolina] District or Superior Courts" where an
arbitrary or capricious decision by the Fire Marshal could be reversed.
Permitting Ordinance art. VI(K). This procedure is quite sufficient to satisfy the
42
AFFIRMED.
Notes:
1
While the Building Code Council approval of the Regulatory Ordinance was
pending, the County Fire Marshal issued a directive limiting the hours of
operation for vehicles transporting explosive materials on two County roads.
The directive was based on the Fire Marshal's concern for traffic on these roads
during schoolbus hours and the proximity of plaintiffs' businesses to an
elementary school. The district court found that the directive was preempted by
the HMTA and was therefore void and unenforceableS. Blasting Servs., Inc. v.
Wilkes County, 162 F.Supp.2d 455, 463-65 (W.D.N.C.2001). The County has
not appealed the validity of the directive, so we need not address this issue.
Plaintiffs' contention that the County ordinances are invalid because 848 only
refers to "state" laws is without merit. As the district court concluded, there is
"no reason to believe Congress intended to treat local and State regulations
differently" under 848S. Blasting, 162 F.Supp.2d at 462. And for preemption
purposes, "the constitutionality of local ordinances is analyzed in the same way
as that of statewide laws." Hillsborough, 471 U.S. at 713, 105 S.Ct. 2371.
High Point discussed former Article II, 29 of the North Carolina Constitution.
However, the North Carolina Supreme Court has stated that decisions "which
refer directly to former Article II, 29, apply equally to present Article II,
24," which is identical in all material respects. Smith, 187 S.E.2d at 73.