Which statement correctly describes intrastate and interstate commerce regulation under the Commerce Clause?

• A. States regulate interstate commerce; federal government regulates intrastate commerce as long as not unduly burdening interstate commerce.
• B. Federal government regulates interstate commerce; states regulate intrastate commerce as long as not unduly burdening interstate commerce.
• C. Local governments regulate interstate commerce.
• D. Federal government has no role in regulating commerce.

Answer: (B)

The important idea here is how regulatory power is divided between the federal government and the states under the Commerce Clause. Congress has the authority to regulate commerce that moves between states, so it handles interstate commerce. States keep their traditional power to regulate local, intrastate activities, but they cannot impose laws that unduly burden or discriminate against interstate commerce. That restraint is known as the Dormant Commerce Clause: states may regulate intrastate matters, as long as those rules don’t create an excessive burden on interstate trade or favor in-state interests over out-of-state ones.

So the statement that the federal government regulates interstate commerce and states regulate intrastate commerce (as long as they don’t unduly burden interstate commerce) best describes the division of authority. Local governments don’t have sole power over interstate commerce, and the federal government does have a role in regulating interstate activity.