SENATE FILE 272

BY  SORENSON

(COMPANION TO LSB 2393HH BY PEARSON)

A BILL FOR

An Act relating to the production or manufacture of goods retained within the state of Iowa and federal authority in relation thereto, providing penalties, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  NEW SECTION.  554E.1  Short title.
   This chapter may be cited as the “Intrastate Commerce Act”.
   Sec. 2.  NEW SECTION.  554E.2  Legislative intent.
   The general assembly finds the following:
   1.  The tenth amendment to the Constitution of the United States codifies in law that the only powers which the federal government may exercise are those that have been delegated to it in the Constitution.
   2.  The ninth amendment to the Constitution of the United States guarantees to the people rights not enumerated in the Constitution and reserves to the people those rights.
   3.  Under Article I, section 8, clause 3, of the Constitution of the United States, the federal government is empowered to regulate commerce among the several states.
   4.  The power to regulate intrastate commerce is reserved to the states or the people under the ninth and tenth amendments to the Constitution of the United States.
   5.  During the constitutional convention, the founders considered and rejected a plan which would have authorized the federal government to not only regulate commerce among the several states, but also any activity having spillover effects across state lines.
   Sec. 3.  NEW SECTION.  554E.3  Iowa goods retained in-state —— federal regulation —— inapplicability.
   1.  As used in this chapter, unless the context otherwise requires:
   a.  “Basic materials or parts” means raw materials physically and directly associated with the finished product in the manufacturing process.
   b.  “Goods” means all real or personal, tangible or intangible property.
   c.  “Produced” means grown, mined, extracted, or created.
   2.  All goods produced or manufactured, whether commercially or privately, within the boundaries of this state that are held, maintained, or retained within the boundaries of this state shall not be deemed to have traveled in interstate commerce and shall not be subject to federal law, federal regulation, or the authority of the Congress of the United States under its constitutional power to regulate commerce. This chapter shall apply to goods that are manufactured within this state from basic materials or parts. The authority of the Congress of the United States to regulate interstate commerce in basic materials or parts shall not include the authority to regulate goods manufactured within this state from such materials or parts.
   3.  This chapter shall not apply to the following:
   a.  Goods manufactured within this state unless the words “made in Iowa” are clearly stamped or marked on an integral part of the good.
   b.  Goods produced within this state unless the words “product of Iowa” are clearly stamped or marked on the container or packaging.
   c.  Goods ordered, procured, or purchased by the United States government or by any contractor pursuant to an agreement with the United States government.
   Sec. 4.  NEW SECTION.  554E.4  Penalties.
   1.  Any official, agent, or employee of the United States government or any employee of a corporation providing services to the United States government that enforces or attempts to enforce an Act, order, law, statute, rule, or regulation of the government of the United States in violation of this Act shall be guilty of an aggravated misdemeanor.
   2.  Any public officer or employee of this state that enforces or attempts to enforce an Act, order, law, statute, rule, or regulation of the government of the United States in violation of this Act shall be guilty of a serious misdemeanor.
   Sec. 5.  EFFECTIVE UPON ENACTMENT AND APPLICABILITY.  This Act, being deemed of immediate importance, takes effect upon enactment and applies to goods held, maintained, or retained within the boundaries of the state that have been produced or manufactured within this state on or after that date.
EXPLANATION
   This bill relates to the production or manufacture of goods retained within the state of Iowa and federal regulatory authority.
   The bill provides legislative intent regarding the retention and delegation of powers in the United States Constitution, and states that the power to regulate intrastate commerce is reserved to the states or the people under the ninth and tenth amendments to the Constitution. The bill also states that during the constitutional convention, the founders considered and rejected a plan which would have authorized the federal government to not only regulate commerce among the several states, but also any activity having spillover effects across state lines.
   The bill provides several definitions. The bill defines “basic materials or parts” to mean raw materials physically and directly associated with the finished product in the manufacturing process. The bill defines “goods” to mean all real or personal, tangible or intangible property. The bill defines “produced” to mean grown, mined, extracted, or created.
   The bill states that all goods produced or manufactured either commercially or privately within Iowa that are held, maintained, or retained within Iowa shall not be deemed to have traveled in interstate commerce and therefore shall not be subject to federal law, federal regulation, or the constitutional authority of the Congress of the United States to regulate interstate commerce. The bill provides that this only applies to goods that are manufactured within Iowa from basic materials or parts. The bill further provides that protection from federal regulation shall be confined to goods manufactured within Iowa which have “made in Iowa” clearly stamped or marked on an integral part, or produced in Iowa unless the words “product of Iowa” are clearly stamped or marked on the container or packaging. The bill further provides that goods ordered, procured, or purchased by the United States government or by any contractor pursuant to an agreement with the United States government are not included in the protection from federal regulation.
   The bill specifies that any official, agent, or employee of the United States government or any employee of a corporation providing services to the United States government that enforces or attempts to enforce an Act, order, law, statute, rule, or regulation of the government of the United States in violation of the bill’s provisions shall be guilty of an aggravated misdemeanor. An aggravated misdemeanor is punishable by confinement for no more than two years and a fine of at least $625 but not more than $6,250. The bill additionally specifies that any public officer or employee of this state that enforces or attempts to enforce an Act, order, law, statute, rule, or regulation of the government of the United States in violation of the bill shall be guilty of a serious misdemeanor. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $315 but not more than $1,875.
   The bill takes effect upon enactment and applies to goods held, maintained, or retained within the boundaries of the state that have been produced or manufactured within this state on or after that date.