Wisconsin Committee Clears State's Deal for Foxconn Factory

along party lines. That the site is a 20-minute drive north of Illinois is fueling Assembly fear the jobs could go to Illinois residents, so committee Republicans wrote a successful amendment to thwart that scenario. It directs Wisconsin Economic Development Corp. (WEDC) to try “to the extent possible” to negotiate “terms” into the Foxconn contract that “encourage” the company to hire Wisconsin residents. Republicans defeated an amendment by Rep. Tod Ohnstad (D) of Kenosha that would have forced Foxconn to refund up to $3 billion in cash “tax credits” if the company “fails to demonstrate to the satisfaction” of WEDC that Wisconsin-resident job applicants “are accorded preference over other applicants having substantially equal relevant qualifications and credentials.” Ohnstad was “disappointed,” he said. Courts have found laws requiring employers give hiring preferences to state residents are invalid forms of nonresident discrimination under the 14th Amendment's Privileges and Immunities Clause, said Barbara Gadbois of the law firm Gibbs Giden. “Nothing in the language” of Ohnstad’s amendment “would create a safe harbor” protection from a constitutional challenge, Gadbois said Tuesday. The contract bears watching to see if it stands on firm constitutional footing, said the specialist in construction and public contracts law.