U. s. associate justice louis brandeis once said, "state(s) may, if its citizens novel social and economic experiments without risks to the rest of the country". this quote is a reference to:

 This quote is referring to the Supreme Court case New State Ice Company vs. Liebmann.

This court case resulted from the New State Ice Company suing Liebmann for selling ice without a permit. Selling ice without a permit broke an Oklahoma state law, hence why the company brought Liebmann to court.

The quote from above was from the dissenting opinion and references the idea that states can be "laboratories for democracy." This means that states should have the ability to test out laws like this to assess their effectiveness.