Senate File 2116 - IntroducedA Bill ForAn Act 1relating to the production or manufacture of certain
2goods within the state of Iowa and applicability of federal
3authority, providing penalties, and including applicability
4provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  NEW SECTION.  554E.1  Short title.
   2This chapter may be cited as the “Intrastate Commerce Act”.
3   Sec. 2.  NEW SECTION.  554E.2  Legislative findings.
   4The general assembly finds the following:
   51.  The tenth amendment to the Constitution of the United
6States codifies in law that the only powers the federal
7government may exercise are those that have been delegated
8to the federal government in the Constitution of the United
9States.
   102.  The ninth amendment to the Constitution of the United
11States guarantees to the people rights not enumerated in the
12Constitution and reserves to the people those rights.
   133.  Under Article I, section 8, clause 3, of the Constitution
14of the United States, the federal government is empowered to
15regulate commerce among the several states.
   164.  The power to regulate intrastate commerce is reserved to
17the states or the people under the ninth and tenth amendments
18to the Constitution of the United States.
   195.  During the constitutional convention, the founders
20considered a plan which would have authorized the federal
21government to not only regulate commerce among the several
22states but also any activity having spillover effects across
23state lines, and the plan was rejected.
24   Sec. 3.  NEW SECTION.  554E.3  Iowa goods retained in state —
25federal regulation — inapplicability.
   261.  As used in this chapter, unless the context otherwise
27requires:
   28a.  “Goods” means all real or personal property, whether
29tangible or intangible, regardless of when the property
30originated or was produced or manufactured.
   31b.  “Produced” means grown, mined, or extracted.
   322.  All goods produced or manufactured, whether commercially
33or privately, within the boundaries of this state that are
34held, maintained, or retained within the boundaries of this
35state shall not be deemed to have traveled in interstate
-1-1commerce and shall not be subject to federal law, federal
2regulation, or the authority of the Congress of the United
3States under its constitutional power to regulate commerce
4among the states. The authority of the Congress of the United
5States to regulate interstate commerce in basic materials or
6parts used in processing or producing shall not include the
7authority to regulate goods produced or manufactured within
8this state from such materials or parts regardless of the
9jurisdiction from which the basic materials or parts were
10obtained by the manufacturer or producer.
   113.  This chapter shall not apply to the following:
   12a.  Goods manufactured within this state unless the words
13“made in Iowa” are clearly stamped or marked on an integral
14part of the good.
   15b.  Goods produced within this state unless the words
16“product of Iowa” are clearly stamped or marked on the
17container or packaging.
   18c.  Goods ordered, procured, or purchased by the United
19States government or by any contractor pursuant to an agreement
20with the United States government.
21   Sec. 4.  NEW SECTION.  554E.4  Penalties.
   221.  Any official, agent, or employee of the United States
23government or any employee of a corporation providing services
24to the United States government who enforces or attempts to
25enforce an Act, order, law, statute, rule, or regulation of the
26government of the United States in violation of this Act shall
27be guilty of a class “D” felony.
   282.  Any public officer or employee of this state who enforces
29or attempts to enforce an Act, order, law, statute, rule, or
30regulation of the government of the United States in violation
31of this Act shall be guilty of a serious misdemeanor.
32   Sec. 5.  APPLICABILITY.
   331.  This Act applies to goods held, maintained, or retained
34within the boundaries of the state that have been produced or
35manufactured within this state at any time before, on, or after
-2-1July 1, 2018.
   22.  Notwithstanding subsection 1, the section of this Act
3enacting section 554E.4, prescribing penalties for a violation
4of the Act’s provisions, applies to violations occurring on or
5after July 1, 2018.
6EXPLANATION
7The inclusion of this explanation does not constitute agreement with
8the explanation’s substance by the members of the general assembly.
   9This bill relates to the production or manufacture of
10certain goods within the state of Iowa and federal regulatory
11authority.
   12The bill provides legislative findings regarding the
13retention and delegation of powers in the United States
14Constitution, including that the power to regulate intrastate
15commerce is reserved to the states or the people under the
16ninth and tenth amendments to the Constitution.
   17The bill defines “goods” to mean all real or personal
18property, whether tangible or intangible, regardless of when
19the property was produced or manufactured. The bill defines
20“produced” to mean grown, mined, or extracted.
   21The bill states that all goods produced or manufactured
22either commercially or privately within Iowa that are held,
23maintained, or retained within Iowa shall not be deemed to
24have traveled in interstate commerce and therefore shall
25not be subject to federal law, federal regulation, or the
26constitutional authority of the Congress of the United
27States to regulate interstate commerce. The bill states
28that the federal authority to regulate interstate commerce
29in basic materials or parts used in processing or producing
30does not include the authority to regulate goods produced
31or manufactured within Iowa, regardless of where the basic
32materials or parts were obtained. The bill further provides
33that protection from federal regulation shall be confined to
34goods manufactured within Iowa that have “made in Iowa” clearly
35stamped or marked on an integral part or goods produced in Iowa
-3-1if the words “product of Iowa” are clearly stamped or marked
2on the container or packaging. The bill further provides that
3goods ordered, procured, or purchased by the United States
4government or by any contractor pursuant to an agreement with
5the United States government are not included in the protection
6from federal regulation.
   7The bill specifies that any official, agent, or employee of
8the United States government or any employee of a corporation
9providing services to the United States government who enforces
10or attempts to enforce an Act, order, law, statute, rule, or
11regulation of the government of the United States in violation
12of the bill’s provisions shall be guilty of a class “D” felony.
13A class “D” felony is punishable by confinement for no more
14than five years and a fine of at least $750 but not more than
15$7,500. The bill further specifies that a public officer or
16employee of this state who enforces or attempts to enforce an
17Act, order, law, statute, rule, or regulation of the government
18of the United States in violation of the bill shall be guilty
19of a serious misdemeanor. A serious misdemeanor is punishable
20by confinement for no more than one year and a fine of at least
21$315 but not more than $1,875.
   22The bill applies to goods held, maintained, or retained
23within the boundaries of this state that have been produced or
24manufactured within this state at any time before, on, or after
25July 1, 2018. Penalty provisions apply to violations occurring
26on or after July 1, 2018.
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