Law Commons^™

The Reverse-Commandeering System: A Better Way To Distribute State And Local Authority, Joseph Zelasko

Northwestern University Law Review

Current regimes for distributing state and local authority have two primary flaws: (1) they unnecessarily restrict local authority by preventing local governments from passing private laws, and (2) they often require local ordinances to be enforced in state courts, thereby depriving local governments of the ability to interpret their own laws and requiring states to pay the judicial costs of local policy preferences. This Note suggests a new means of distributing state and local authority designed to address these two deficiencies: the reverse-commandeering system. The reverse-commandeering system would not distinguish between local authority to pass public and private laws. Instead, …

An American Oddity: The Law, History, And Toll Of The School District, Nadav Shoked

Northwestern University Law Review

The school district is a staple of American law. As the local government tasked with controlling our public schools, the school district is so well-entrenched that lawmakers and commentators ignore its uniqueness as a legal institution. The school district is peculiar to American law, and it is a peculiarity within American law. General purpose governments—cities and counties—are the local governments controlling schools outside the United States. In the United States itself, these governments control almost all other major local functions. But they do not control education here. Why? Why does American law rely on a separate local government for the …

Tax Cannibalization And Fiscal Federalism In The United States, David Gamage, Darien Shanske

Northwestern University Law Review

We began this project pondering a riddle. Most state governments have adopted what we—and many others—view as clearly suboptimal tax policies, especially in regard to the taxation of corporate income and capital gains. Yet, with the notable exception of those who oppose progressivity and the taxation of capital, state-level tax policymakers have had remarkably little appetite for reform. This Article provides one major explanation for this riddle by identifying and demonstrating a phenomenon that we label as “tax cannibalization.” We argue that flawed state-level tax policies derive in part from perverse incentives inadvertently created by the federal government.

Reforming School Discipline, Derek W. Black

Northwestern University Law Review

Public schools suspend millions of students each year, but less than ten percent of suspensions are for serious misbehavior. School leaders argue that these suspensions ensure an orderly educational environment for those students who remain. Social science demonstrates the opposite. The practice of regularly suspending students negatively affects misbehaving students as well as innocent bystanders. All things being equal, schools that manage student behavior through means other than suspension produce the highest achieving students. In this respect, the quality of education a school provides is closely connected to its discipline policies.

Reformers have largely overlooked the connection between discipline and …

In States We "Trust": Self-Settled Trusts, Public Policy, And Interstate Federalism, Brendan Duffy

Northwestern University Law Review

Over the last twenty years, domestic asset protection trusts have risen in popularity as a means of estate planning and asset protection. A domestic asset protection trust is an irrevocable trust formed under state law which enables an independent trustee to allocate money to a class of

persons, which includes the settlor.

Since Alaska first enacted domestic asset protection legislation in 1997, fifteen states have followed its lead. The case law over the last twenty years addressing these trust mechanisms has, however, been surprisingly sparse. A Washington bankruptcy court decision, In re Huber, altered this drought, but caused more confusion …

Insuring Takings Claims, Christopher Serkin

Northwestern University Law Review

Local governments typically insure themselves against all kinds of losses, from property damage to legal liability. For small- and medium-sized governments, this usually means purchasing insurance from private insurers or participating in municipal risk pools. Insurance for regulatory takings claims, however, is generally unavailable. This previously unnoticed gap in municipal insurance coverage could lead risk averse local governments to underregulate and underenforce existing regulations where property owners threaten to bring takings claims. This seemingly technical observation turns out to have profound implications for theoretical accounts of the Takings Clause that focus on government regulatory incentives. This Article explores the impact …

A Free Speech Response To The Gay Rights/Religious Liberty Conflict, Andrew Koppelman

Northwestern University Law Review

The most sensible reconciliation of the tension between religious liberty and public accommodations law, in the recent cases involving merchants with religious objections to same-sex marriage, would permit business owners to present their views to the world, but forbid them either to threaten to discriminate or to treat any individual customer worse than others. Even if such businesses have no statutory right to refuse to facilitate ceremonies they regard as immoral, they are unlikely to be asked to participate in those ceremonies. This solution may, however, be forbidden by the law of hostile environment harassment. That raises a severe free …

Ftc V. Phoebe Putney And Municipalities As Nongovernments, Peter F. Nascenzi

Northwestern University Law Review

American courts have long struggled with categorizing municipalities. They treat municipalities sometimes as private corporations, sometimes as governmental bodies, and sometimes as something in between. This uncertainty provides a shaky foundation for local government law and hampers its development. Local governments are not sure of their powers, and states are unable to create a comprehensive vision of municipal governance. When federal law is involved, the situation is muddled further.

In FTC v. Phoebe Putney, the Supreme Court’s application of the state action doctrine unnecessarily injected federal antitrust law into the relationship between states and municipalities. The state action doctrine …

Federalism And Concurrent Jurisdiction In Global Markets: Why A Combination Of National And State Antitrust Enforcement Is A Model For Effective Economic Regulation, Katherine Mason Jones

Northwestern Journal of International Law & Business

The focus of the article is on the proper role of U.S. state governments in regulating international business. The specific issue analyzed is the desirability of having state attorneys general enforce federal antitrust laws in global markets concurrently with federal antitrust regulators. Congress granted state officials this power in 1976. In 2009, however, a large proportion of the world's commerce is now conducted in international, rather than national markets. This development has led Judge Richard A. Posner and others to advocate that the states be stripped of their statutory power to enforce federal antitrust laws on behalf of their residents …

A Finger In The Dike? An Examination Of The Efficacy Of State And Federal Attempts To Use Law To Stem Outsourcing, Beverley Earle, Geralk A. Madek, Christina Madek

Northwestern Journal of International Law & Business

Many people, not just in the United States, are concerned about the implications of this growth in outsourcing for the future of business. State governments in particular are trying to stop outsourcing and are using the law as a means to do so. However, are these attempts, which are variants of the old "buy American" programs, doomed to be ineffective and ultimately protectionist, without really protecting American business? This paper will examine the developments of offshoring, outsourcing, and insourcing in Part II. Part III examines both state and federal legal efforts to restrict this growth. Part IV examines the WTO …

Fallacy Of Federalism In Foreign Affairs: State And Local Foreign Policy Trade Restrictions, The , Howard N. Iii Fenton

Northwestern Journal of International Law & Business

State and local foreign trade restrictions represent the convergence of two main threads of the globalization of the U.S. experience, and raise a serious challenge to the historic allocation of foreign policy responsibility to the federal government. The internationalization of state and local economies is the first thread. The second is the heightened efforts of state, city and county governments to play a role in foreign affairs and foreign policy decisions. Where they meet finds states and cities using their new-found international economic leverage to influence not only United States' foreign policy, but the domestic policies of foreign nations as …

Doing Business Under Canadian Environmental Law, Jeffrey C. Bates, Gregory A. Bibler, David S. Blackmar

Northwestern Journal of International Law & Business

In recent years, the role of the environmental risk management has become increasingly significant to multinational corporations. Corporations from the United States and elsewhere are now undertaking aggressive assessments of environmental regulatory compliance, and are incorporating environmental due diligence into transactions such as mergers, acquisitions, joint ventures, and divestitures. The first step toward assessing compliance often involves interpretation of complex, vaguely written environmental statutes and regulations. Matters are made more difficult by the fact that each governmental structure is different, and environmental controls inevitably will be administered in ways unfamiliar to foreign companies, even in countries which have emulated the …