goals for EITM zone and capital expenditure credits.
I think Representative Shanklin even just mentioned quotas.
It's my understanding that there are things
such as interstate compact and other things
that make it very difficult, if not illegal, for us
to establish quotas saying that a certain percentage need
to be from Wisconsin need to be a certain class.
Could you speak to that, please?
Sure, you're correct generally that quotas
that relate to specific hiring goals
for Wisconsin residents rather than overall project goals.
I think it's fair to say those would be heavily scrutinized
by the courts.
There are issues relating to commerce clause
under the US Constitution as well as privileges and immunities.
Those are two separate clauses of the Constitution,
but both could be used by someone
who's looking to challenge that type of in-state hiring
preference.
Notably, one of the things that's relevant in that situation
with the commerce clause is the analysis is dependent
on whether the state's acting as a market participant
or as a market regulator.
Previously, the Supreme Court has held
that provision of tax credits is not something that pushes
someone into the market participant category.
It is merely market regulation.
And it is in that situation where
a law that discriminates against interstate commerce will only
be upheld if it advances a legitimate local purpose that
cannot be adequately served by reasonable non-discriminatory
alternatives.
Thank you.
In fiscal bureau, another thing mentioned
has been hiring outside the zone or hiring
outside basically anywhere in the state.