States are passing laws and resolutions designed at preventing the enaction of Federal programs (notably national health care) in areas where the states have previously been the governing authority. In most cases, the states have expressed concern that the costs of such programs would have to be borne by the citizens of the state, while the actual operation was entirely overseen by a Federal bureaucracy. The states actually never gave up their sovereignty. The benefits of a Union being recognized, the states acknowledged their joint agreement to a common system. In the United States, the individual states ratified the Constitution, which mandated that the signatories could not restrict the rights of citizens under that document, nor contravene the powers granted by it to the Federal government and courts. Where state laws conflict with Federal Laws, Federal courts decide which party has the Constitutional authority in that specific instance. The 9th and 10th Amendments have been ruled not to apply in some cases regarding interstate commerce, to which Congress is given authority under Article 1, Section 8. (see related question)
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Dual sovereignty is incorrect insofar as one only needs singular sovereignty as venue is not important. Proper issued sovereignty is universal and granted only by an Exchangor/Grantor of the pure trust foundation. Dual sovereignty is a concept in American constitutional that both the State governments and the federal governments are sovereign. The state governments and the federal government each have spheres and can execute powers that the other cannot. The states are sovereign over most domestic issues--whether a will or contract is valid, what a landlord must do in order to evict a tennant, who is married, how old one must be to drive a car, and what the rules governing corporations are. The federal government is sovereign over issues such as trade between the states or foreign countries, foreign relations, etc. This is why, for example, the federal government cannot say that same sex marraige is not legal in Massachusetts, but Massachusetts cannot say that it will in the War in Iraq.
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"Internal sovereignty" or "state sovereignty" represents the legitimate authority of a state or local government to establish and enforce laws within their jurisdiction. In the US, states retain those prerogatives not expressly granted to the national (Federal) government, so long as they are not exercised in conflict with Federal laws and regulations. A state that has internal sovereignty is one with a government that has been elected by the people and has the popular legitimacy. (Commentary has been moved to the Discussion pages)
A federal system of government is one that divides the powers of government between the national (federal) government and local (state) governments. The Constitution of the United States established the federal system, also known as federalism. Under federalism, each level of government has sovereignty in some areas and shares powers in other areas. For example: both the federal and state governments have the power to tax. Only the federal government can declare war.