Congress may permit state regulation that would otherwise violate the Commerce Clause.

Likewise, Congress may prohibit state regulation that could otherwise be upheld under the
Commerce Clause. Congress may not, however, permit states to violate civil liberties.

Example:Astateimposeda3%taxonoutofstateinsurancecompanies
forallpremiumsreceivedfrominsuringresidentsofthestate.Nosimilar
taxwasplacedoninstateinsurancecompanies.Althoughsuchatax
wouldordinarilybeheldinvalidundertheCommerceClausebecause
itdiscriminatesagainstinterstatecommercethetaxherewasupheld
becauseCongresshadadoptedanactpermittingthestatestoregulate
insuranceinanymanner,aslongasthestateregulationdidnotconflict
withafederalstatutespecificallyregulatinginsurance.

Congress may permit state regulation that would otherwise violate the Commerce Clause. Likewise, Congress may prohibit state
regulation that could otherwise be upheld under the Commerce Clause. Congress may not, however, permit states to violate civil
liberties.
Example:Astateimposeda3%taxonoutofstateinsurancecompaniesforallpremiumsreceivedfrominsuringresidentsofthe
state.Nosimilartaxwasplacedoninstateinsurancecompanies.Althoughsuchataxwouldordinarilybeheldinvalidunderthe
CommerceClausebecauseitdiscriminatesagainstinterstatecommercethetaxherewasupheldbecauseCongresshad
adoptedanactpermittingthestatestoregulateinsuranceinanymanner,aslongasthestateregulationdidnotconflictwitha
federalstatutespecificallyregulatinginsurance.