The City of Commerce operates under a Council-Manager form of government. The residents elect a five-member City Council, which serves as the legislative and policy-making body. The council members then select one of their own to serve as Mayor on a rotating basis. A professional City Manager is appointed by the council to oversee the daily operations of the municipal government.
Commerce is famous for its extraordinary public services. Utilizing the robust tax revenue generated by its commercial and industrial sectors, the city provides residents with a free municipal bus system (Commerce Municipal Bus Lines), an extensive parks and recreation program, and even a city-owned retreat in the San Bernardino Mountains (Camp Commerce) which residents can visit for highly subsidized or free vacations.
Law enforcement is contracted out to the Los Angeles County Sheriff's Department (operating out of the nearby East Los Angeles station), and fire protection is provided by the Los Angeles County Fire Department.