S.F. 2116 Section 1. NEW SECTION . 554E.1 Short title. 1 This chapter may be cited as the “Intrastate Commerce Act” . 2 Sec. 2. NEW SECTION . 554E.2 Legislative findings. 3 The general assembly finds the following: 4 1. The tenth amendment to the Constitution of the United 5 States codifies in law that the only powers the federal 6 government may exercise are those that have been delegated 7 to the federal government in the Constitution of the United 8 States. 9 2. The ninth amendment to the Constitution of the United 10 States guarantees to the people rights not enumerated in the 11 Constitution and reserves to the people those rights. 12 3. Under Article I, section 8, clause 3, of the Constitution 13 of the United States, the federal government is empowered to 14 regulate commerce among the several states. 15 4. The power to regulate intrastate commerce is reserved to 16 the states or the people under the ninth and tenth amendments 17 to the Constitution of the United States. 18 5. During the constitutional convention, the founders 19 considered a plan which would have authorized the federal 20 government to not only regulate commerce among the several 21 states but also any activity having spillover effects across 22 state lines, and the plan was rejected. 23 Sec. 3. NEW SECTION . 554E.3 Iowa goods retained in state —— 24 federal regulation —— inapplicability. 25 1. As used in this chapter, unless the context otherwise 26 requires: 27 a. “Goods” means all real or personal property, whether 28 tangible or intangible, regardless of when the property 29 originated or was produced or manufactured. 30 b. “Produced” means grown, mined, or extracted. 31 2. All goods produced or manufactured, whether commercially 32 or privately, within the boundaries of this state that are 33 held, maintained, or retained within the boundaries of this 34 state shall not be deemed to have traveled in interstate 35 -1- LSB 6005XS (2) 87 gh/rn 1/ 4

S.F. 2116 commerce and shall not be subject to federal law, federal 1 regulation, or the authority of the Congress of the United 2 States under its constitutional power to regulate commerce 3 among the states. The authority of the Congress of the United 4 States to regulate interstate commerce in basic materials or 5 parts used in processing or producing shall not include the 6 authority to regulate goods produced or manufactured within 7 this state from such materials or parts regardless of the 8 jurisdiction from which the basic materials or parts were 9 obtained by the manufacturer or producer. 10 3. This chapter shall not apply to the following: 11 a. Goods manufactured within this state unless the words 12 “made in Iowa” are clearly stamped or marked on an integral 13 part of the good. 14 b. Goods produced within this state unless the words 15 “product of Iowa” are clearly stamped or marked on the 16 container or packaging. 17 c. Goods ordered, procured, or purchased by the United 18 States government or by any contractor pursuant to an agreement 19 with the United States government. 20 Sec. 4. NEW SECTION . 554E.4 Penalties. 21 1. Any official, agent, or employee of the United States 22 government or any employee of a corporation providing services 23 to the United States government who enforces or attempts to 24 enforce an Act, order, law, statute, rule, or regulation of the 25 government of the United States in violation of this Act shall 26 be guilty of a class “D” felony. 27 2. Any public officer or employee of this state who enforces 28 or attempts to enforce an Act, order, law, statute, rule, or 29 regulation of the government of the United States in violation 30 of this Act shall be guilty of a serious misdemeanor. 31 Sec. 5. APPLICABILITY. 32 1. This Act applies to goods held, maintained, or retained 33 within the boundaries of the state that have been produced or 34 manufactured within this state at any time before, on, or after 35 -2- LSB 6005XS (2) 87 gh/rn 2/ 4

S.F. 2116 July 1, 2018. 1 2. Notwithstanding subsection 1, the section of this Act 2 enacting section 554E.4, prescribing penalties for a violation 3 of the Act’s provisions, applies to violations occurring on or 4 after July 1, 2018. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill relates to the production or manufacture of 9 certain goods within the state of Iowa and federal regulatory 10 authority. 11 The bill provides legislative findings regarding the 12 retention and delegation of powers in the United States 13 Constitution, including that the power to regulate intrastate 14 commerce is reserved to the states or the people under the 15 ninth and tenth amendments to the Constitution. 16 The bill defines “goods” to mean all real or personal 17 property, whether tangible or intangible, regardless of when 18 the property was produced or manufactured. The bill defines 19 “produced” to mean grown, mined, or extracted. 20 The bill states that all goods produced or manufactured 21 either commercially or privately within Iowa that are held, 22 maintained, or retained within Iowa shall not be deemed to 23 have traveled in interstate commerce and therefore shall 24 not be subject to federal law, federal regulation, or the 25 constitutional authority of the Congress of the United 26 States to regulate interstate commerce. The bill states 27 that the federal authority to regulate interstate commerce 28 in basic materials or parts used in processing or producing 29 does not include the authority to regulate goods produced 30 or manufactured within Iowa, regardless of where the basic 31 materials or parts were obtained. The bill further provides 32 that protection from federal regulation shall be confined to 33 goods manufactured within Iowa that have “made in Iowa” clearly 34 stamped or marked on an integral part or goods produced in Iowa 35 -3- LSB 6005XS (2) 87 gh/rn 3/ 4

S.F. 2116 if the words “product of Iowa” are clearly stamped or marked 1 on the container or packaging. The bill further provides that 2 goods ordered, procured, or purchased by the United States 3 government or by any contractor pursuant to an agreement with 4 the United States government are not included in the protection 5 from federal regulation. 6 The bill specifies that any official, agent, or employee of 7 the United States government or any employee of a corporation 8 providing services to the United States government who enforces 9 or attempts to enforce an Act, order, law, statute, rule, or 10 regulation of the government of the United States in violation 11 of the bill’s provisions shall be guilty of a class “D” felony. 12 A class “D” felony is punishable by confinement for no more 13 than five years and a fine of at least $750 but not more than 14 $7,500. The bill further specifies that a public officer or 15 employee of this state who enforces or attempts to enforce an 16 Act, order, law, statute, rule, or regulation of the government 17 of the United States in violation of the bill shall be guilty 18 of a serious misdemeanor. A serious misdemeanor is punishable 19 by confinement for no more than one year and a fine of at least 20 $315 but not more than $1,875. 21 The bill applies to goods held, maintained, or retained 22 within the boundaries of this state that have been produced or 23 manufactured within this state at any time before, on, or after 24 July 1, 2018. Penalty provisions apply to violations occurring 25 on or after July 1, 2018. 26 -4- LSB 6005XS (2) 87 gh/rn 4/ 4