States pass many new laws, trying out different approaches to solve the same problem, which is why they are rightfully thought of as the laboratories of democracy. Some of the new laws fare well and inspire changes at the federal level. Some new laws, however, wind up in court to decide if they are constitutional. When these cases wind up in the Supreme Court, the rulings often create ripple effects felt throughout the entire country. Thus the Justices’ rulings are another way one state’s experiment can impact the whole country.
Let’s take a look at three recent cases that are sure to have had significant consequences for state laws this year: updates have been made to the Voting Rights Act, South Dakota v. Wayfair, Inc made significant changes for e-commerce taxation, and states are now responsible for deciding their own regulations around sports betting after the Supreme Court overturned The Professional and Amateur Sports Protection Act of 1992.
Voting Rights Act
In 2013, the Supreme Court made void Section 5 of the Voting Rights Act (VRA), which required that states with a history of racial discrimination had to go through the Department of Justice or a federal court to update their voting laws or procedures. The consequences of this ruling were felt immediately as Texas, for instance, pushed for stricter photo ID requirements. North Carolina, Alabama and Mississippi shortly followed suit.
Read our post on the repeal of Section 4 and updates under the Trump administration.
Also relevant is HR1, introduced in the US Congress this year, which aims to make new sweeping changes to voting rights, though not expected to pass.
Last year, the Supreme Court heard South Dakota v. Wayfair, Inc, a landmark case for e-commerce taxation which ruled that every state can collect sale tax on digital purchases, even if the e-tailer doesn’t have a physical presence in the state. As a result, states are now looking at billions-worth of potential new revenue. As of December 2018, 37 states have started to legislate so that they might take full advantage of the ruling, including new laws which will conform their tax codes to the new federal law on taxation, which also includes the Tax Cuts and Jobs Act (TCJA).
We reviewed the Court’s ruling in detail shortly after its verdict.
Sports Betting
In May 2018, the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA), allowing each state to decide whether sports betting should be legal. Delaware, New Jersey, and Mississippi were some of the first states to join Nevada in permitting sports betting. Some states, however, are also legislating to limit such behavior. Pennsylvania, for instance, has introduced a law which includes high licensing fees and taxes on gross receipts.
What’s currently happening with sports betting legislation across the country.
See our blog and webinar on sports betting legislation for more information.
Upcoming cases to watch in 2019: partisan gerrymandering
On 4 January, the Court agreed to hear two cases on whether partisan gerrymandering is unconstitutional. These cases, to be heard in March, concern Maryland and North Carolina. For Maryland, a Republican voter is accusing Democrats of having redrawn the electoral map to retaliate against the GOP. In North Carolina, the Federal District Court ruled that Republicans had drawn up districts to hurt Democrats in an unconstitutional manner. Both cases will be closely watched as the Court has never before ruled that partisan gerrymandering is unconstitutional. The decision is likely to have a significant impact in the 2020 elections.
Conclusion
With many cases likely to impact state legislation on the Supreme Court docket this year, register for your own free BillTrack50 account to track all the legislative changes with the click of a button.