3. Territorial and Legislative Jurisdiction

3.1 Territorial Jurisdiction of States of the Union

Each of the 50 states in the Union exercises territorial jurisdiction exclusively within its own borders over all land and persons, except where the legislature has ceded jurisdiction to the federal government.

• States have no jurisdiction beyond their territorial borders. Their sovereignty is limited geographically and constitutionally to their defined territories.

3.2 Federal Government Territorial Jurisdiction

The federal government’s territorial jurisdiction is limited and clearly enumerated, including:

1. The federal zone — areas designated under exclusive federal control such as Washington, D.C.

2. Federal enclaves or areas ceded by states pursuant to Article 1, Section 8, Clause 17 of the U.S. Constitution (e.g., military bases, federal buildings within states).

3. Its territories, possessions, and property, wherever situated.

4. Its domiciliaries—citizens and residents within federal jurisdictional zones.

Beyond these, the federal government does not possess legislative territorial jurisdiction within the states. This is grounded in the Tenth Amendment, which reserves “police powers” exclusively to the states.

3.3 Subject Matter Jurisdiction of the Federal Government Within States

Where the federal government does exercise jurisdiction within states, it is only subject matter jurisdiction, strictly limited to specific constitutional subjects enumerated by law, including but not limited to:

• Foreign and interstate commerce (Art. I, §8, Cl. 3) — including import taxes (not export taxes), bankruptcy claims, Sherman Antitrust Act violations, securities law claims, federal labor law matters, and certain ERISA actions.

• Federal property and employees (Art. IV, §3, Cl. 2).

• Frauds involving the mail (Art. I, §8, Cl. 7).

• Treason (Art. IV, §2, Cl. 2).

• Patent and copyright claims (28 U.S.C. §1338(a), Art. I, §8, Cl. 8).

• Admiralty and maritime claims (28 U.S.C. §1333, Art. I, §8, Cl. 10).

These subject matter jurisdictions are narrowly defined, and income taxation under the Internal Revenue Code does not fall within any recognized federal subject matter jurisdiction inside the states.

3.4 Precedents on Jurisdictional Limits

• Pauletto v. Reliance Ins. Co., 64 Cal.App.4th 597 (1998) clarified that state courts lack jurisdiction over bankruptcy adversary proceedings, confirming federal exclusive jurisdiction in bankruptcy.

• The Supreme Court in Pollard v. Hagan, 3 How. 212 (1845) established that statehood admission does not affect the legal status of federal property within a state’s boundaries. Federal lands remain federally owned and exempt from state taxation.

• The federal government cannot unilaterally enlarge powers within states beyond those explicitly enumerated in the Constitution. This principle was upheld in New York v. United States, 505 U.S. 142 (1992), which reaffirmed state sovereignty against unwarranted federal encroachment.

3.5 Jurisdictional Implications for Individuals and Property

• Natural persons domiciled within states, known as “state nationals” or “nationals” under 8 U.S.C. §§1101(a)(21), (22), are protected by state sovereignty and the Constitution. They do not fall under the direct jurisdiction of the federal government unless explicitly enumerated by constitutional law.

• Individuals who assume the status of U.S. citizens or government officers have forfeited certain sovereign protections and are subject to federal jurisdiction accordingly.

• Federal legislation, judicial rulings, or administrative actions that erode these jurisdictional boundaries violate the Separation of Powers Doctrine and the constitutional guarantee of a republican form of government (Art. IV, §4).

3.6 Summary

Territorial jurisdiction is the exclusive domain of states within their borders, except for limited federal zones and enclaves. The federal government’s jurisdiction within states is strictly subject matter-based and constitutionally enumerated. This balance preserves state sovereignty and individual rights against federal overreach.