The correct statement regarding the interaction of the judicial branch and new laws is:
The judicial branch can decide how the Constitution should be applied to new laws.
This reflects the role of the judicial branch, particularly the Supreme Court, in interpreting the Constitution and determining whether new laws are constitutional or not. The judiciary has the authority to review and potentially invalidate laws that are found to be in conflict with the Constitution through the process of judicial review, as established in the landmark case of Marbury v. Madison (1803). The other statements provided do not accurately represent the judicial branch's powers in relation to new laws.