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EPISODE SUMMARYStates have broad police power to regulate health, safety, welfare, and morals. But state power is limited by the Constitution’s commitment to federal supremacy, national economic union, equal treatment of out-of-state citizens, fair taxation of interstate activity, and protection of federal operations.Preemption occurs when valid federal law displaces state law. Express preemption depends on statutory text. Field preemption applies when federal regulation occupies an area. Conflict preemption applies when compliance with both state and federal law is impossible or when state law obstructs federal purposes.The Dormant Commerce Clause limits state discrimination against or undue burdens on interstate commerce, even when Congress has not acted. Discriminatory laws are usually invalid unless the state shows a legitimate local purpose that cannot be served by reasonable nondiscriminatory alternatives. Evenhanded laws are generally upheld unless their burdens on interstate commerce are clearly excessive in relation to local benefits. The market participant exception allows states more freedom when acting as buyers or sellers rather than regulators. Congress may also authorize state burdens on interstate commerce.Article IV Privileges and Immunities prevents states from discriminating against citizens of other states with respect to fundamental rights and important economic activities. The state must have a substantial reason for the discrimination, and the means must closely relate to that reason.State taxation of interstate commerce is valid only when the tax has a substantial nexus to the state, is fairly apportioned, does not discriminate against interstate commerce, and is fairly related to services provided by the state. User fees must be reasonable and nondiscriminatory.Intergovernmental immunity prevents states from directly regulating, taxing, or discriminating against the federal government in ways that interfere with federal operations.The central lesson is that state police power is broad but not supreme. A state may regulate local matters, protect public health, and structure its economy, but it may not conflict with valid federal law, build economic barriers against other states, discriminate against outsiders without sufficient justification, impose unfair taxes on interstate activity, or control the federal government.