The idea that people within a state can and should determine the laws within that state is referred to as

The idea that people within a state can and should determine the laws within that state is referred to as  popular sovereignty.

Explanation: Popular sovereignty is an idea that means that the people are the ultimate source of the authority of their government, which means that the people of a state should have the right to determine the laws in their land.

states

explanation:

as the old saying goes, all politics are local. state and federal governments affect our daily lives in numerous ways. yet, in our federal system, there is supposed to be a balance between federal and state power. as james madison envisioned it in federalist no. 51, “the power surrendered by the people” would be “divided between two distinct governments,” creating a balance of power that would enable the “different governments [to] control each other.”