Lockyer

This case presents a convergence of two important governmental interests: the ability of states to control the uses of state funds and the federal government’s national labor policy, expressed through the National Labor Relations Act (“NLRA”). The question is whether these two interests conflict here, such that the NLRA overrides California’s interest. Specifically, a California statute forbids employers who receive state grants or funds in excess of $10,000 from using such funding to advocate against or in favor of union organizing. We are constrained to conclude that California — acting as a regulator, not a proprietor in imposing these restrictions— has acted in such a way as to undermine federal labor policy by altering Congress’ design for the collective bargaining process. Therefore, we hold that the California statute as written is preempted by the NLRA under Lodge 76, International Association of Machinists & Aerospace Workers v. Wisconsin Employment Relations Commission, 427 U.S. 132 , 96 S.Ct. 2548 , 49 L.Ed.2d 396 (1976) (“Machinists ”).

FACTUAL AND PROCEDURAL BACKGROUND

On September 28, 2000, California enacted Assembly Bill No. 1889, Cal. Gov’t Code §§ 16645^49. 1…