S.F. 272 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 intent. 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 which the federal 6 government may exercise are those that have been delegated to 7 it in the Constitution. 8 2. The ninth amendment to the Constitution of the United 9 States guarantees to the people rights not enumerated in the 10 Constitution and reserves to the people those rights. 11 3. Under Article I, section 8, clause 3, of the Constitution 12 of the United States, the federal government is empowered to 13 regulate commerce among the several states. 14 4. The power to regulate intrastate commerce is reserved to 15 the states or the people under the ninth and tenth amendments 16 to the Constitution of the United States. 17 5. During the constitutional convention, the founders 18 considered and rejected a plan which would have authorized the 19 federal government to not only regulate commerce among the 20 several states, but also any activity having spillover effects 21 across state lines. 22 Sec. 3. NEW SECTION . 554E.3 Iowa goods retained in-state —— 23 federal regulation —— inapplicability. 24 1. As used in this chapter, unless the context otherwise 25 requires: 26 a. “Basic materials or parts” means raw materials physically 27 and directly associated with the finished product in the 28 manufacturing process. 29 b. “Goods” means all real or personal, tangible or 30 intangible property. 31 c. “Produced” means grown, mined, extracted, or created. 32 2. All goods produced or manufactured, whether commercially 33 or privately, within the boundaries of this state that are 34 held, maintained, or retained within the boundaries of this 35 -1- LSB 2393XS (3) 84 rn/nh 1/ 4

S.F. 272 state shall not be deemed to have traveled in interstate 1 commerce and shall not be subject to federal law, federal 2 regulation, or the authority of the Congress of the United 3 States under its constitutional power to regulate commerce. 4 This chapter shall apply to goods that are manufactured within 5 this state from basic materials or parts. The authority of the 6 Congress of the United States to regulate interstate commerce 7 in basic materials or parts shall not include the authority 8 to regulate goods manufactured within this state from such 9 materials or parts. 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 that 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 an aggravated misdemeanor. 27 2. Any public officer or employee of this state that 28 enforces or attempts to enforce an Act, order, law, statute, 29 rule, or regulation of the government of the United States in 30 violation of this Act shall be guilty of a serious misdemeanor. 31 Sec. 5. EFFECTIVE UPON ENACTMENT AND APPLICABILITY. This 32 Act, being deemed of immediate importance, takes effect upon 33 enactment and applies to goods held, maintained, or retained 34 within the boundaries of the state that have been produced or 35 -2- LSB 2393XS (3) 84 rn/nh 2/ 4

S.F. 272 manufactured within this state on or after that date. 1 EXPLANATION 2 This bill relates to the production or manufacture of goods 3 retained within the state of Iowa and federal regulatory 4 authority. 5 The bill provides legislative intent regarding the retention 6 and delegation of powers in the United States Constitution, 7 and states that the power to regulate intrastate commerce is 8 reserved to the states or the people under the ninth and tenth 9 amendments to the Constitution. The bill also states that 10 during the constitutional convention, the founders considered 11 and rejected a plan which would have authorized the federal 12 government to not only regulate commerce among the several 13 states, but also any activity having spillover effects across 14 state lines. 15 The bill provides several definitions. The bill defines 16 “basic materials or parts” to mean raw materials physically 17 and directly associated with the finished product in the 18 manufacturing process. The bill defines “goods” to mean all 19 real or personal, tangible or intangible property. The bill 20 defines “produced” to mean grown, mined, extracted, or created. 21 The bill states that all goods produced or manufactured 22 either commercially or privately within Iowa that are held, 23 maintained, or retained within Iowa shall not be deemed to 24 have traveled in interstate commerce and therefore shall 25 not be subject to federal law, federal regulation, or the 26 constitutional authority of the Congress of the United States 27 to regulate interstate commerce. The bill provides that 28 this only applies to goods that are manufactured within Iowa 29 from basic materials or parts. The bill further provides 30 that protection from federal regulation shall be confined 31 to goods manufactured within Iowa which have “made in Iowa” 32 clearly stamped or marked on an integral part, or produced in 33 Iowa unless the words “product of Iowa” are clearly stamped 34 or marked on the container or packaging. The bill further 35 -3- LSB 2393XS (3) 84 rn/nh 3/ 4

S.F. 272 provides that goods ordered, procured, or purchased by the 1 United States government or by any contractor pursuant to an 2 agreement with the United States government are not included in 3 the protection from federal regulation. 4 The bill specifies that any official, agent, or employee of 5 the United States government or any employee of a corporation 6 providing services to the United States government that 7 enforces or attempts to enforce an Act, order, law, statute, 8 rule, or regulation of the government of the United States 9 in violation of the bill’s provisions shall be guilty of 10 an aggravated misdemeanor. An aggravated misdemeanor is 11 punishable by confinement for no more than two years and a 12 fine of at least $625 but not more than $6,250. The bill 13 additionally specifies that any public officer or employee of 14 this state that enforces or attempts to enforce an Act, order, 15 law, statute, rule, or regulation of the government of the 16 United States in violation of the bill shall be guilty of a 17 serious misdemeanor. A serious misdemeanor is punishable by 18 confinement for no more than one year and a fine of at least 19 $315 but not more than $1,875. 20 The bill takes effect upon enactment and applies to goods 21 held, maintained, or retained within the boundaries of the 22 state that have been produced or manufactured within this state 23 on or after that date. 24 -4- LSB 2393XS (3) 84 rn/nh 4/ 4