Constitutional
Law Class Notes
Camps
Newfound/Owatonna, Inc. v.
What
about the question of why it’s constitutional for OSU to charge more for
out-of-state students than in-state students?
Let’s
compare two colleges in the state of
Could
the state of
Let’s
say that every student who attends
What
if
Does
the Dormant Commerce Clause say you can’t discriminate against out-of-state
kids with respect to scholarships? More
generally, when is it permissible for a state to create benefits for its own
citizens that aren’t available to citizens from other states?
Is
it a form of discrimination to offer scholarships to
Foley
says that the Court doesn’t use the same Dormant Commerce Clause analysis when
it analyzes a scholarship program compared to a tax exemption program. Even though both programs are discriminatory,
handing out money will be treated differently than administering a tax
exemption.
Discrimination
in the granting of subsidies has different rules because it’s just handing out
cash. But from economics, we discover
that this has exactly the same economic effect as handing out a tax exemption.
We
will let states be preferential to their own residents if it’s in the form of a
subsidy, but not if it’s in the form of a tax exemption.
A
state cannot impose a tax on goods coming into the state from some other state,
but it can subsidize local goods by that same amount.
The
way the Court would think of the in-state/out-of-state tuition differential is
that it would say that the lower tuition given to in-state students is a
subsidy or something akin to a scholarship.
Formalism seems to be triumphant!
Rule
#1 about the Dormant Commerce Clause: The Supreme Court has probably decided
200-300 Dormant Commerce Clause cases in the 20th century. There is a huge amount of precedent involving
this clause. You can’t reconcile them all.
You can’t make them into a body of uniform law such that all of the
pieces go together and make sense. Some
of the pieces of the “jigsaw puzzle” aren’t
going to fit. What do we do? If you’re a lawyer, find the precedents that
support your side and distinguish the precedents that go against you. Think about the issues that motivate
different judges in deciding these cases.
The
Court will force
The
exchange between Scalia and Stevens muddies the waters because they don’t agree
on what the scope of the precedents is.
Don’t
let doctrine lead you to places that don’t make sense.
The
majority doesn’t see this as an easy case.
Since it’s not an easy case, we’re nervous whenever a state government
seems to prefer locals to out-of-staters.
They can get away with it when the program is facially neutral. But in this case, we actually have facial
discrimination in taxation. Therefore,
we don’t have to put it in a separate “subsidy” box. We’re nervous that this is preferential
treatment. Going to camp in