The Volokh Conspiracy
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Precedent Supporting Constitutionality of Florida Legislature's Dissolving Disney Special Government District
As I suggested Friday and yesterday, Supreme Court precedent is unclear on whether Florida's dissolving the special government district that Florida had created for Disney in the 1960s violates the First Amendment. On one hand, the dissolution appears to be retaliation for Disney's prominent opposition to the Florida law that restricts "classroom instruction by school personnel or third parties on sexual orientation or gender identity … in kindergarten through grade 3 or in a manner that is not age appropriate or developmentally appropriate for students in accordance with state standards"; government retaliation for a person's or corporation's speech is often unconstitutional. On the other hand, the dissolution is the withdrawal of specially legislatively granted governmental power, not a generally available benefit or contracting opportunity, and that may well be constitutional.
Lawyer Adam Schulman, however, points out that the precedent in the Eleventh Circuit—the federal appellate court in charge of, among other things, Florida cases—is very much against any First Amendment challenge.
In 2011, the Alabama Legislature barred payroll deductions "of any contribution to an organization that uses any portion of those contributions for political activity." A union (the Alabama Education Association) sued, claiming the statute violated the First Amendment "the subjective motivations of the lawmakers in passing the Act were to retaliate against AEA for its political speech on education policy. No, said the court in In re Hubbard (11th Cir. 2015):
[A]s a matter of law, the First Amendment does not support the kind of claim AEA makes here: a challenge to an otherwise constitutional statute based on the subjective motivations of the lawmakers who passed it.
In United States v. O'Brien, the Supreme Court held that, as a "principle of constitutional law," courts cannot "strike down an otherwise constitutional statute on the basis of an alleged illicit legislative motive." The plaintiff in O'Brien had challenged a congressional statute on free-speech grounds by citing from the legislative history statements of three Congressmen and then using those statements to argue that "the 'purpose' of Congress" in passing the statute "was 'to suppress freedom of speech.'" The Supreme Court rejected the challenge outright, citing the "fundamental principle of constitutional adjudication" that courts may not "void a statute that is, under well-settled criteria, constitutional on its face, on the basis of what fewer than a handful of Congressmen said about it."
This Court's precedent applying O'Brien recognizes that, when a statute is facially constitutional, a plaintiff cannot bring a free-speech challenge by claiming that the lawmakers who passed it acted with a constitutionally impermissible purpose. We have held that many times.
The O'Brien rule applies here because Act 761 does not, on its face, impinge on any constitutional rights…. The only basis for AEA's retaliation claim is the alleged retaliatory motive that Alabama's lawmakers had when passing Act 761. That is precisely the challenge that O'Brien, and our decisions following it, foreclose.
This suggests that, under Eleventh Circuit law, a court likewise can't strike down the legislative dissolution of the special government district that the legislature had earlier created for Disney, even if "the subjective motivations of the lawmakers who passed it" were "retaliation" for Disney's speech.
In re Hubbard did distinguish an earlier case that had struck down a school board policy forbidding payroll deductions for "GAE [Georgia Association of Educators]-GCAE [Gwinnett County Association of Educators] members," on the grounds that "the school board did not adopt a generally applicable policy—it specifically singled out 'GAE-GCAE members.'" I suppose that Disney could argue that the district dissolution specifically singles out the district created to benefit Disney (the Reedy Creek Improvement District). But I don't think that's what In re Hubbard was getting at: The earlier statute had on its face treated people differently based on their membership in particular expressive associations (GAE and GCAE), which is First-Amendment-protected activity. The Florida law dissolving the district on its face targets a particular government district, not particular First-Amendment-protected speech or expressive association. The challenge would be based on the speech-based motivation of the legislators, not on the face of the statute; and In re Hubbard appears to foreclose that challenge.
To be sure, I don't think the O'Brien precedent from the Supreme Court fully disposes of the matter, and Reed v. Town of Gilbert (2015) suggests that First Amendment challenges based on legislative motive are permissible. But In re Hubbard, though it didn't cite Reed, was decided after Reed; and I'm inclined to say that federal district courts in the Eleventh Circuit, and panels of the Eleventh Circuit, would and should likely follow In re Hubbard and reject any challenge to the Florida law dissolving the district. Reed might come up if the Eleventh Circuit agrees to hear the case en banc, of the Supreme Court agrees to hear the case; but both such results seem pretty unlikely.
In any event, I thought I'd pass this along to our readers. Thanks to Adam Schulman for bringing this up, and to Dilan Esper for alerting me to Schulman's point.
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Self-described champions of free speech seem remarkably eager to find a way to diminish free speech protections when a bigoted right-wing political interest is at stake.
Arthur:
I've been basically the moving party on this one. Prof. Volokh took a more moderate position (that it might be unconstitutional). Most people on my Twitter feed said versions of "of course it's unconstitutional". I suspected it might not be under current precedent, and did some research. Other lawyers also thought the same thing, and also did research. And we discovered that caselaw indicates that this may be constitutional.
If you saw my Twitter thread, I prefaced it with my distaste for DeSantis' action and how it broke important norms. But nonetheless, the fact that this is probably constitutional is important information, especially in a world where a lot of people think they know constitutional law but didn't even bother to do any research regarding this issue and just tweeted or blogged their feelings.
At any rate, I'm not "eager to find a way" to uphold the statute. I'm interested in what Con Law actually says on the issue. And from the very start, this had the feel of something that might actually be constitutional despite all the sturm and drung. Had I found a bunch of law saying it was unconstitutional, I would have tweeted out that as well. But I try and say what the law is, not merely what I might like it to be. And there are good reasons why facially neutral regulations of conduct might not be reviewed for improper motive; this is a neutral principle that, as Prof. Volokh pointed out, might also apply to a municipality's refusal to do business with the NRA as well.
It seems to me that Disney is the one breaking norms, denouncing statutes that have nothing to do with their business.
Corporations can have religions but not opinions?
Small privately owed corporations can have a religion.
Pretty sure that Hobby Lobby specified a lot of things about hobby Lobby that made that decision possible, most to all of which won't apply to Disney
Girondists and Mensheviks are my favorite culture war casualties.
I was surprised at the cross section of often disagreeing posters coming down on the "probably legal" side of this debate, in spite of sometimes differing routes to that conclusion, and some clear discomfort (by some) with the result.
I was not thinking of or referring to you. I have not noticed a pattern in which you depart from ostensible principles or positions in a manner congruent with partisan preferences.
The real bigots are the LGBTQ crowd who think that the rest of us should have to suffer for and entertain their mental illnesses.
A better defense by Disney is the fact the law breaches the Reedy Creek bondholders contractual rights .
This was mentioned in the other thread, and I didn't respond to it, because I am not an expert on the Contracts Clause, but my understanding is that the Contracts Clause is interpreted very flexibly and the cases aren't so categorical (and that citing to 19th Century caselaw from the Gilded Age is not particularly helpful on this matter).
This is NOT to say that the Contracts Clause might not present a serious issue- as I said, I don't know enough about that area of the law to say for sure. But it definitely requires more analysis than a citation to cases from 100+ years ago.
That suggests the unlikely, nay, theoretical, possibility that Florida's only option is to attempt to buy all the Disney bonds back in the secondary market. If they can own them all, then they can proceed. They won't be able to.
Just speculating, though.
The easy answer would leave the district in place with the power to service its bonds, but without any other regulatory or governmental power.
The bondholders have to suffer an injury before they have standing to pursue a suit. If Florida makes sure they're paid, what's the injury that gives them standing?
So, yeah, before the dissolution goes through, Florida has to make sure the bondholders are taken care of. That's not complicated, even if it is potentially expensive.
A breach of bond terms is a breach of contract, not a tort. That automatically gives bondholders standing.
So, you're not going to pursue the whole Constitutional tort based on a Contracts Clause violation at all, and only present the court with a breach of terms by the State of Florida? That's fine, but you're only going to get legal relief, which is going to amount to $0 in the scenario where your bonds were actually paid.
Inherently, any loss due to the claimed tort cannot exceed any loss due to breach of contract. For example, if the bonds are downgraded so that their price falls with a resultant loss to bondholders, before the bonds are paid off, that loss is still due to breach of contract. The bondholders don't have to wait to see whether the bonds are all paid off first.
I'm not arguing whether the holders have standing if FL takes over Reedy's Debt - that seems obvious.
Reedy's Bond ratings are "A"
FL is AAA.
Where are the damages?
Part of making sure the bondholders are taken care of means keeping them from taking an interim loss, sure. That does not actually require something as difficult as managing to go out and buy up all the Reedy Creek bonds; there are any number of other ways to spend money to avoid the problem. "That's not complicated, even if it is potentially expensive."
Wouldn't this clauise be met, " all such bonds together with interest thereon, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged.” by the State of FL agreeing to service all existing bonds in Reedy Creek's stead?
Certainly Disney has seemingly made that threat, and neither Osceola nor Orange County are eager to assume responsibility for bonds they didn't issue. I'm fair certain the counties in which the other five affected ISDs are located aren't eager to assume those (MUCH smaller) obligations either. Bradford County isn't exactly well off - part of why an economic improvement district was created for them roughly 60 years back.
You would need to look at the covenants and events of default in the Bonds themselves (and any underlying indenture). I'd be surprised if the borrower could unilaterally substitute a new borrower, even if the new borrower had better credit. One potential way to get around it may be to escrow all the principal and interest, but that would be a lot of money.
Normally I'd agree about substituting a borrower, but at the end of the day, isn't FL the one backstopping the borrowing of the government entities of its own creation??? Kind of like the parents co-signing a loan with one of their children? FL isn't telling lenders that son Mark is going to assume son John's debts, FL is saying to the bondholders that because son John is no longer around, the parents are going to step up in their position of co-signer and start paying in the regular course.
Or am I completely wrong on this??? I've never actually owned a munibond directly, I just don't know.
1. It is not obvious to me why Disney would have third-party standing to assert the rights of bondholders.
2. It is not obvious to me why the remedy for a Contracts Clause violation would be injunctive relief restraining operation of the law rather than money damages for the impairment of the value of the contract. Isn't this a classic case of legal relief being adequate?
1. I don't think Disney could, unless it is also a bondholder.
2. I don't think you are looking at damages correctly. You have to look at the terms of the bonds themselves. If there is a breach of a covenant and, consequently, an event of default, the remedy is usually acceleration of the debt.
My understanding is that normally, one session of a government is not allowed to constrain future sessions - which this "promise" most certainly does.
If this claim is successful, and Florida can't fix it by just paying damages or assuming the bonds, what's the limit on these promises? Are there any limits?
Can the Florida legislature prevent changes to gun laws by making a similar contract to a gun store? How about voting laws? Zoning? Educational content?
My understanding is that normally, one session of a government is not allowed to constrain future sessions - which this "promise" most certainly does.
As has been mentioned above and elsewhere, it is explicit in the Florida constitution that laws passed by the legislature cannot impair the right of contract. The state constitution binds all legislatures, past, present, and future, until the state constitution is amended. If the state or local governments enter into contracts, those contracts cannot be impaired by later acts of the legislature. They must be fulfilled. The bondholders may agree to some kind of settlement, or the debts could simply be honored and paid off, but the legislature can't just unilaterally change the contract by changing the law.
Can the Florida legislature prevent changes to gun laws by making a similar contract to a gun store? How about voting laws? Zoning? Educational content?
It is possible that this might work, depending on the details of how those contracts were written what "gun laws" or "voting laws" you'd be talking about. Entering into those contracts has to be done legally, of course. That is, the government has to have the power and legal authority to make that contract. Also, the legislature might be successful at arguing that altering a law that impairs an existing contract is necessary to some important government purpose. That is hardly likely to work here, given how quickly this was done with so little analysis, how few districts are affected by it besides Reedy Creek, and the many statements by DeSantis and legislators that make it wholly unbelievable that it wasn't about retaliating against Disney rather than serving an important government interest.
In the context of state alcohol prohibition in the 19th century:
"Whatever differences of opinion may exist as to the extent and boundaries of the police power, and however difficult it may be to render a satisfactory definition of it, there seems to be no doubt that it does extend to the protection of the lives, health, and property of the citizens, and to the preservation of good order and the public morals. The legislature cannot, by any contract, divest itself of the power to provide for these objects. They belong emphatically to that class of objects which demand the application of the maxim, salus populi suprema lex; and they are to be attained and provided for by such appropriate means as the legislative discretion may devise. That discretion can no more be bargained away than the power itself."
https://caselaw.findlaw.com/us-supreme-court/97/25.html
(PS - I don't think this law is in force in Massachusetts anymore)
So perhaps restoring a republian government in these counties conduces to good order and the public morals, especially since the constitution does require the states to have a republican form of government.
The inability to have your contracts "imparied" is certainly restricted, or every time the government of Florida made something illegal to own or possess - such as certain guns, drugs, unsafe toys, etc - it'd be interfering with any existing contracts about those things. I don't think anyone would suggest that Florida would be unable to block sales of the "Suicide-Master 3000 for Kids!" because of preexisting contracts.
Just a hypothetical here, say a court decides that the Florida legislature had an improper motivation and strikes the law. Then the Florida legislature goes and passes the law again, this time just putting forward the argument that granting Disney the special district was improvident, and no longer makes sense, and the previous debate just brought their attention to the matter.
I would think the court would have no choice but to uphold it, at least on first amendment retaliation grounds.
I'll also note that it's seems everyone now has embraced Citizens United and recognized that corporations definitely have free speech rights, whether Disney to advocate against legislation, Twitter and Facebook to censor "misinformation". Indeed it seems the only debate we are having is whether corporations have the right not to censor things the government considers misinformation.
I did notice the Citizens United point. It's a mild hypocrisy, because I doubt anyone really believed that corporations had no speech rights, despite what they sometimes said.
But yes, of course, when a corporation's liberal act is threatened, whether it is the NY Times, Disney, or a book publisher, of course everyone accepts the corporation has a 1A right.
The first part of your comment is why I think the courts are not going to allow this kind of challenge.
I'll also note that it's seems everyone now has embraced Citizens United and recognized that corporations definitely have free speech rights, whether Disney to advocate against legislation, Twitter and Facebook to censor "misinformation". Indeed it seems the only debate we are having is whether corporations have the right not to censor things the government considers misinformation.
Citizens United was not about whether corporations have some free speech rights, but whether those rights include spending money to advocate for or against the election of candidates for public office such that their spending on that cannot be regulated. SCOTUS ruled that regulating spending furthering campaign speech by nominally independent corporations (or other groups) was a violation of their 1st Amendment rights. Thus Citizens United could show its movie critical of Hillary Clinton without the FEC having any say in the matter. And consequently, SuperPACs and the like became the norm and now DeSantis has raised over $100 million for his reelection campaign even though "Friends of Ron DeSantis" is supposed to be prohibited from "coordinating" with him or his campaign. But then, does anyone really believe that these 'independent' groups are actually, in any way, independent?
Kirkland accurately describes how liberal SC justices will approach this case.
The conservatives will split, although, not necessarily enough to give the liberals the win, given the 6-3 edge. 6-3 yields a "probable win", given the liberal bloc vote.
If it goes to the SC, which is somewhat unlikely.
It's constitutional.
As mentioned before, if a corporation can sue to prevent a perfectly constitutional law from being put into effect because of the "intent" of the legislature being illegitimate (ie, "retaliation"), it throws the entire concept of democracy off balance. Every corporation that was adversely impacted by a law would sue to impede the law from being put into effect because they believed it was "retaliation". Doesn't really matter if it was or not, even the delay would be useful.
An interesting comment in that it assumes the conclusion it purports to reach, ie,
"if a corporation can sue to prevent a perfectly constitutional law from being put into effect"
See the argument here, the dispute is that the law may or may not be constitutional. But this post starts with the assumption that it is constitutional and then reaches the conclusion that it is constitutional.
Huh?
The law is constitutional as written. Nothing in the law itself, as worded, can be overturned. No one doubts that Florida has the power to create, or destroy, these districts.
What is being argued that the "intent" behind the law renders it unconstitutional. Not how the law is actually written or worded.
In this case the governor and some legislators have explicitly said that it’s retaliation. Not much of a reach to conclude that it’s retaliation.
Once the precedence is set, then "hidden" retaliation becomes a valid means to overturn the law.
'cuz politicians never lie.
I agree with you that this was retaliation. But in another prominent case, Trump bragged he head enacted a Muslim ban, when he did no such thing. A ban that allows people in from Saudi Arabia, an officially Muslim country in which Mecca is located, is no Muslim ban.
It's not much of a reach to conclude that it's retaliation by those specific legislators. That tells you nothing about the motivations of everyone else who voted in favor of the bill. They might also be retaliating - or they could be thinking that these special districts are bad policy and this is a precedent for getting them all cancelled or they could not care but vote for it as a trade for an issue they really care about.
So as a practical matter, what does knowing that 'Senator X is retaliating' matter? Are you going to invalidate just his/her votes and recalculate the outcome? Are you going to disenfranchise the ones who voted for it for other reasons? How will you tally the ones who didn't give reasons? How do you square any of that with the absolute legislative immunity that they have for exactly this purpose?
The only workable answer when legislators do things you disagree with is to vote them out the next chance you get. Lawsuits like this just waste money and make them martyrs in the eyes of their own side.
One continues to be amazed, as the first post states, at the contortions those individuals who normally are the strongest defenders of free speech, who viciously cite the unconstitutionalism the ability of government to constrain or punish content based political speech when those individuals find themselves having to defend speech with which they disagree.
Prof. Volokh is the most disappointing with this post, and this is sad because of his previous position as probably the nation's most credible and intellectual defender of speech. Notice his commentary on the facts of the case he states.
"the Alabama Legislature barred payroll deductions "of any contribution to an organization that uses any portion of those contributions for political activity."
Now compare that with the Florida law. The Alabama law does not attack any specific organization, it is general law applicable to all. But the Florida law is targeted to a single organization, so no, there is insufficient comparability to sustain Prof. Volokh's contention that this precedent stands against Disney.
And notice that the quote from the Supreme Court also assumes the conclusion,
"Supreme Court held that, as a "principle of constitutional law," courts cannot "strike down an otherwise constitutional statute on the basis of an alleged illicit legislative motive."
So if one assumes a law is constitutional one cannot conclude it is not constitutional??? The whole argument is that the Disney law is not otherwise constitutional because it is government punishment for speech based on political content.
Sadly, Prof. Volokh's intellectual integrity is being tested here, and he is failing. One hopes that he will realize this, and we will soon see a rigorous and spirited and strong intellectual argument from him on why government passing a specific piece of legislation specifically targeting an actor for punishment based solely on that actor's political speech is blatantly unconstitutional.
Please, the nation and the 1A need this.
But the law is constitutional. What about the law lacks constitutional standing?
You are being ridiculous. Prof. Volokh is quoting cases. He is telling you what the law is. And you have the audacity to claim he is lacking intellectual integrity for educating you about law you clearly know nothing about?
I don't want to say much about the substance because your ignorance does not call for much of a response, but simply put, the reason why this law "singles out Disney", if it does, is because the original creation of the district singled out Disney for a sweetheart benefit. Is it your contention that this sort of corporate welfare, once granted, can't be repealed absent a presumption that the repeal law is targeted solely at Disney? I mean, MAYBE that's correct, but it sure doesn't seem like an argument Disney's lawyers would want to make.
We're trying to tell you what the law is. You are offended that you might learn something. How sad.
After multiple posts on the case, and days after many people and outlets have been discussing the contract impairment problems with the law, Prof. Volokh has still been completely silent on the issue. You, at least, have acknowledged it and said that you aren't expert enough in that area to weigh in. Prof. Volokh hasn't even done that much. The degree to which his is single-mindedly focused on finding ways to defend the Florida GOP's obviously rushed and retaliatory law is bringing his objectivity into question.
I don't want to say much about the substance because your ignorance does not call for much of a response, but simply put, the reason why this law "singles out Disney", if it does, is because the original creation of the district singled out Disney for a sweetheart benefit.
There are well over 1000 such "sweetheart benefit[s]" in Florida. This new law affects only six of them, with Reedy Creek being the only one anyone would have ever thought to be an issue worth dealing with at all, let alone in a special session of the legislature with the new law being passed less than a month after the issue was first mentioned by the governor.
These special districts aren't just handouts to corporations with lots of lobbyists. They often make sense as a way to reduce red tape and complexity when development in an area needs a more unified approach. Disney's plans at the time included land in two different counties. Rather than having to hire more lawyers and specialists in local government ordinances, building codes, and the like to deal with different rules in different jurisdictions, it was able to set up its own rules for those things. (My understanding is that the building codes in RDIC are often considerably more strict than in the surrounding areas when it comes to withstanding hurricanes, tornadoes, etc.) Same thing with being able to set up a single fire department rather deal with multiple ones across all of the different properties. Same thing with being able to control what other businesses went up next to its park, hotels, and attractions rather than having to argue before different governmental bodies that someone else's proposed business wouldn't be compatible with its business and cause problems for everyone involved. Yes, Disney benefited from all of this, in a completely self-serving way. But free-market, limited government types surely see the benefits to the local economy as well. After all, the proof that it mostly worked is in the success of Disney's resorts, the others that different companies created outside of RDIC in the area that piggy back on Disney's success, and the enormous amounts of money tourists bring to the area from other states and even other countries. I'm never going to be a Floridian that says that such tourism money is always a good deal for the people of Florida, but the people that do point to the positives of Disney's business to the Orlando area and Florida more broadly are at least as likely to be conservative or at least Republican-leaning as they are Democrat-leaning. At least, they were before Disney reluctantly came out against H.B. 1557.
And it bears repeating, since this law's defenders keep ignoring it, that DeSantis and the Florida GOP were all too happy to carve out an exception for "theme park" operators to its anti-Big Tech bill just last year. (Yet another attack on free speech from that side currently prevented from being enforced by courts.)
1. I suspect Prof. Volokh finds the contracts clause issue less interesting. Remember, all the screaming and yelling was about the 1A.
2. If you believe the RCID wasn't a sweetheart corporate welfare deal for Disney, you are woefully misinformed. None of the other improvement districts were designed to benefit a single company.
The RCID special district does a lot more than benefit a single company. Imagine central Florida's economy without it being there. Are you going to say that RCID only benefited Disney? Or that tax benefits to Musk's ventures in Texas only benefit Musk? These things are designed to benefit the surrounding communites through the creation of jobs. Disney provides that to Florida in vast numbers. It's been a very, very good deal for the citizens of Florida. Without it, Disney was less likely to locate there.
That's a dumb argument. All corporate welfare is argued to benefit the community. Building a new football stadium for the local team "benefits the community", they always say.
The only direct beneficiary was Disney.
Gina Carano was fired by Disney for her free speech.
You left wingers are throwing sh!t fits at the thought of Musk buying Twitter and ending teh censorship of conservative voices.
Arlene's Flowers no longer exists because the State of WA decided to destroy it for saying "we don't do flowers for same sex weddings", and SCOTUS let WA do it.
So yes, i am happy to see FL and DeSantis screw Disney to the wall.
They can either stop their grooming BS, get out of politics, and keep their improvement district, firing as many fruitcake employees as the need to to make it stick, or they can lose their ID and get regularly screwed by local officials.
So long as there's no safe free speech for us, there should be none for you
Who cares a multi-trillion dollar corporation support pedo groomers got their special tax status cancelled. Maybe now they can pay their "fair share"......hehehehehehehe
This is like President Trumps Travel restrictions. It is clear by precedent that the executive can suspend visas. The claim of racism was allowed by a district judge to stay the executive order. SCOTUS reversed and said the Executive gets to exercise his enumerated powers.
Well, it's a little different. An action by the Executive Branch can ultimately be attributed to a single person. Even if that one person didn't make the specific decision, in the Executive you can always get to one person who is responsible for everything the agency does or fails to do.
An action by the Legislature, on the other hand, is a collective act made by peers with almost-always mixed motivations. Saying that 'Senator X voted because bad-reason-Y' may be possible but trying to say that 'the Legislature voted because bad-reason-Y' is impossible.
I suppose the exception might be if the Legislature put their reason in the text of the statute itself. But that is not the case here. And even with the low regard in which I hold legislators generally, I can't imagine them being that stupid in other cases either.
The even more fundamental issue here is that the local government unit isn’t Disney’s property. It’s the state of Florida’s property. Cases where government passes a law that deprives a private party of something it possesses aren’t on point. Disney doesn’t have any rights in the matter. Abolishing the local government unit causes Disney no legal harm. The union could at least have argued it had a right to collect dues as it saw fit. Disney has no right to its choice of local government.
It is good information that the federal courts in Florida will not look to "the subjective motivations of the lawmakers who passed it." I am unsurprised at that result since courts tend to be reluctant to attribute the subjective motives of individual legislators to legislative bodies. See, e.g., Church of Lukumi Babalu Aye, Inc. v. Hialeah, 508 US 520, 558 (1993) (Scalia, concurring).
But I wonder, what about discerning the "objective" motive of the law from the text and effect of the law itself. Courts sometimes discern motive (or something very much like it for constitutional purposes) from the text of a law that is, in a technical sense, facially nondiscriminatory.
My mind goes to Church of Lukumi Babalu Aye, Inc. v. Hialeah, 508 US 520 (1993). There the Court held that a nominally neutral law had an improper purpose because "the text of the [law] disclose[d] the improper attempt to target [the claimants]." Id. at 534. The Court also found that "the effect of a law in its real operation is strong evidence of its object." Id. at 535. The law was "gerrymander[ed]" to reach the claimants using nominally neutral categories. Id. It was either overbroad or underbroad to support any legitimate purpose other than targeting of the claimants.
Granted, Lukumi is an establishment clause case, not a speech retaliation case. But it seems like the principles it articulates with respect to divining legislative motivation in constitutional cases is general in nature. Scalia's concurrence suggesting that the Court shouldn't do that certainly seems to be general in nature.
My knowledge of the Disney case is limited. But my understanding is that the law in question manages to target Disney's privilege and only a very few other special districts, notwithstanding that Florida is full of special districts. I have heard it said that the few other districts affected by the law are minor collateral damage in the dispute with Disney. They are but a fig leaf around the true object of the law.
Given the oddly-specific text of the law, coupled with its practical effect, is there a reason Disney could not try to argue around the case Professor Volokh cites?
Objectively, there’s no problem. The district was created more than 50 years ago to help Disney get established and give it zoning and tax breaks. After 50 years, there’s a perfectly good argument that these sorts of special breaks shouldn’t last forever, and that at some point they need to sunset and Disney should start getting treated like everyone else. Tax free bonds means the taxpayers are subsidizing those bonds. Why should they do that? There’s a perfectly good argument that after 50 years of effectively subsidizing Disney the taxpayers should get a break and Disney should pay for its own damn bonds, same as other companies, if it wants to issue new ones.
If I understand you correctly, you aren't contesting that the text of the law makes clear that the legislature is specifically targeting Disney, you are just saying that the legislature could have a non-retaliatory (and therefore) legitimate basis to specifically target Disney. Lukumi is distinguished because, being an Establishment Clause case, you couldn't make that same move in that case.
That seems like a fair argument. But it raises two follow-up questions in my mind.
First, might not the first concession be enough to distinguish away In re Hubbard (11th Cir. 2015) cited above?
Second, how much does the law really conform to the legitimate purpose you posit? Isn't it potentially mistailored to that purpose? And if that was the real purpose, why obfuscate the fact that Disney's district was targeted?
Lukumi was not a pure motivation case, though. The law made so many exceptions that it was clear that it was targeting one religion. You could discern from the law that it was targeted at that religion just by its terms. The statements of the people who passed did add to the Court's rationale, but it was not the whole of it.
The more obvious difference from Lukumi is that the sole thing the anti-sacrifice ordinance prohibited was a religious act. The exemptions effectively excluded all non-religious forms of animal slaughter.
Here, there is no problem with the law’s subject matter. Dropping tax breaks is constitutional as giving them. If it was constitutional to give Disney tax breaks in the 1960s as being in society’s interests in the conditions of the time, it must also be constitutional to take those tax breaks away today if current conditions and considerations of society’s best interest are different.
Also, the Establishment Clause is sui generis. The Lemon test requires assessing the purpose of the legislation. That doesn’t apply to speech.
I was thinking of Establishment Clause cases too. Wallace v. Jaffree struck down a moment of silence law based on the subjective intent of the legislature.
Secular purpose is part of the Lemon test though. There's no O'Brien doctrine in the Establishment Clause.
The point is, it's possible to look through the facial neutrality of a statute to the legislative intent. There's no inherent reason the analysis should be different in the speech context vs. the establishment context.
I don't know what you mean by "inherent". As you well know, the law is formed by a web of cases, especially in the constitutional law arena. So if O'Brien says "we aren't going to look at the anti-speech purpose of statutes that on their face regulate conduct", that becomes, for future courts, a reasonable ground for not doing that. If Lemon says "we are going to look at the pro-religious purpose of statutes to determine Establishment Clause violations", then that becomes, for future courts, a ground for doing that. That's what cases do- they rule some arguments are legitimate and cognizable and others are not. The fact that an argument is "inherently" plausible is irrelevant; the law is what the cases say it is.
Isn't Lukumi a Free Exercise case, rather than an Establishment Clause case? I don't think Lemon is even mentioned in the opinion.
I take your point from upthread that you are just saying what the law is, not what it should be.
However, I am having a hard time seeing how anyone could reconcile O'Brien, Lukumi and Texas v Johnson. My guess is that if O'Brien came up again, the result would be different.
P.S., I always thought that the stature in O'Brien would have been better if they treated losing (including by combustion) your draft card like losing your toll ticket on the Jersey Turnpike: You have to pay the max toll, or, in the case of draft cards, you immediately moved to the head of the line.
O'Brien's 7-1 from the Warren Court. I actually think it comes out the same way now.
One could argue the Establishment Clause is different.
I agree that the State of Florida has effectively guaranteed the bonds and has to make sure the bondholders are paid. But if it’s willing to do that, the bond guarantee provision is no obstacle to dissolving the Reedy Creek Improvement District. Whether it’s worth assuming the obligation is a purely legislative question.
Why isn't anyone pointing out that Disney, which is pretty much the sole occupant of the improvement district, shouldn't or can't be required to pay back that public debt? Why should Florida Man Taxpayer have to shoulder the debt for a pedo grooming company?
The bonds issued are specifically backed by future tax revenue. Explicit in the promise to pay them back is ability to levy taxes to collect the revenue. I think the misunderstanding you are having is the purpose of those bonds. My best guess is that the bonds were issued for the same types of projects that municipalities issue bonds for, like building roads and other infrastructure used by more than just Disney. That would be why tax revenue could be used to pay them back, since Disney wouldn't be the owner of what the bonds paid for. That would explain why Disney wouldn't be on the hook to pay them back, but rather the people living in the RCID would be, as the 'owners' of what those bonds paid for.
How has the state guaranteed the bonds? In the bond market lenders take the risk that the municipality will be unable to pay its bills, or they find somebody to take the risk on their behalf. The risk or the cost of insuring against the risk becomes part of the interest rate.
According to reports counties rather than the state guarantee debts of special districts. It would be bad for business to wipe out the debts without a legitimate claim of bankruptcy. The same way the Soviet Union's disavowal of Russia's debts was bad for business.
I heard that some bond offerings in Massachusetts came with a pledge of privately owned property as collateral in case of default or disincorporation. Thanks to a long disused state law predating Chapter 9 municipal bankruptcy a creditor could seize private property in town when a town refused to pay.
As I believe someone once said, "Elections have consequences." Once you put someone in power, they have the power and there's not a lot you can do about it until their term is ended.
If all it really took to overturn a law was to just get a court to rule that a legislature was acting out of ill will, we'd have a vanishingly small government practically overnight.
Apologies if you've already addressed this, but what about the lineage of cases invalidating laws based on Animus? All of this reminds me of this old discussion: https://www.washingtonpost.com/news/volokh-conspiracy/wp/2014/07/30/same-sex-marriage-and-animus/
Is there a single case that anyone can cite of a court striking down a law, valid and constitutional on its face, because there were "bad motives" behind the creation of said law?
I mean actual legislation, passed by Congress or a state legislature, not a government action like firing someone or cancelling a contract.
Isn't that basically what Romer v. Evans did?
No. The court ruled the amendment was unconstitutional on its face.
No one suggests this Florida would have been constitutional BEFORE Disney's statements, but some suggest it is unconstitutional AFTER the statements because the Legislature had "bad motives", but no one seems to be able to cite a single instance of any court striking down a law on that basis. I guess there could always be a first time, but I seriously doubt it.
Is Disney now entitled to this special treatment in perpetuity, or just until some arbitrary court-decreed amount of time has passed? Frankly I find the First Amendment arguments against the law absurd, and perhaps Disney's lawyers do too, as they don't exactly seem to be rushing to the courthouse.
They ruled the amendment was unconstitutional because of the reasoning for it. I don't see a huge distinction.
Lukumi, mentioned above, seems to fit that description. Although it was pretty obviously targeted at Santeria, it never mentioned it.
Perhaps a bit closer, but still there the Court said the statute itself, on its face, violated the First Amendment because it directly restricted the church's rituals. The Florida statute in the Disney case in no way directly restricts the First Amendment rights or Disney or its employees.
Notably, in section II.A.2 of Lukumi, where Justice Kennedy writes about examining legislative motive and cites the statements of city councilmembers, he was only joined by one other justice (Stevens).
I see the distinction between prospective restrictions and retrospective punishments, but I am not sure that is meaningful in the context of First Amendment analysis.
Disney can move. A state's legislature is the ultimate decider in who can police and not police within its borders excepting for the military.
one final thought, investors should sue Disney for fraud. Their actions making a corporate statement on a state law put at risk the investments of all their stock holders without permission of those owners.
Stock fraud is such a fun means to correct the actions of a few cavalier board members. The board and leadership answers to the stock holders, not the minority which claims offense and misrepresents the intents if not wording of a law.
It wouldn't be fraud. It might be breach of trust as in Dodge v Ford, IIRC. But if Disney can articulate a respectable commercial justification for their actions then it would certainly not be fraud - which is pleasingly analogous to Florida being able to defend itself by providing a respectable rationale for the law in the first place.
It's not fraud without material lies or omissions. I don't see any actionable mismanagement either. Disney stock price has been declining for 5 months. It's going to be hard to tie this month's drop to serious misjudgment by management. The dispute could even end up a plus for Disney if enough liberals decide to go there to show solidarity.
I sense a marketing campaign. "Show your support for (letters) by taking a trip to the Magical Kingdom."
Government has the right to enact land use and zoning laws. That is undisputed. Such laws are constitutional.
Hobby Lobby has a free standing store in a community that believes in reproductive rights including the right of contraception and family planning, which Hobby Lobby vocally opposes. The local government is offended by this position, and so for no reason other than to punish Hobby Lobby the zoning is changed from commericial to residential, and Hobby Lobby is order to vacate. Since this action is 'otherwise constitutional' Hobby Lobby has no choice but to change its speech or bow to the new zoning law. Really!!!
The outrage at this would be almost immeasurable amongst the defenders of the first amendment. The ire of people like Prof. Volokh would be scathing. The action would be denounced in the strongest possible terms, and the efforts of the constitutional scholars would be to demonstrate that such an action by the government was blatantly unconstitutional. Not even the progressive community would defend the new zoning.
In short, what we have here are principles determined by circumstances. In all of the comments above, no one has argued that the purpose of the Florida law is to promoto the social welfare; everyone agrees it is to punish speech based on content. And if one believes that it is constitutional to do that, that ones who normally are the strongest supporters of the concept that government cannot restrict speech based on content, that the purpose of analyzing this situation is to make the argument that government can do this, well the hypocrisy overcomes any pretense of intellectual integrity.
Message to those who believe in the 1A. Don't tell us how the Florida action is constitutional; tell us and everyone how it is wrong, how it so violates the guarantees of freedom embodied in the Constitution that it cannot stand.
You are dead wrong. If there was caselaw that permitted your hypothetical, Prof. Volokh would blog it.
Zoning regulations usually grandfather existing uses and buildings. If the town rezoned my house as industrial I could keep living here. I believe this is required by state law. Even building code regulations mostly apply to new construction or major remodeling. (I was peripherally involved in planning a room renovation in an educational building. The renovation didn't happen because major work would require installing a modern sprinker system. Leaving the room as a 1960s deathtrap was legal.)
Your level of outrage, or that of the whole world, has no bearing on whether or not a law is constitutional. Prof. Volokh is addressing the constitutionality of the law, not its wisdom. This is a legal blog, after all.
Yes, but are he and others addressing it in an objective manner? When as strong an advocate of free speech as Prof. Volokh comes down on the other side it is natural to wonder if "the fix is in", that is whether or not the analysis is written to advance a particular political view.
Consider this from Hartman v. Moore, and in case you were wondering the opinion by Justice Souter is joined by those great activist, liberal, government loving Justices, Scalia and Thomas.
"As a general matter, this Court has held that the First Amendment prohibits government officials from subjecting an individual to retaliatory actions, including criminal prosecutions, for speaking out. Crawford-El v. Britton, 523 U. S. 574, 592."
and this from the same source
"though not necessarily dispositive, the absence of probable cause along with a retaliatory motive on the part of the official urging prosecution are reasonable grounds to suspend the presumption of regularity behind the charging decision and enough for a prima facie inference that the unconstitutionally motivated inducement infected the prosecutor’s decision to go forward."
In short there is substantial authority that Florida's action motivated by retaliation against an actor speaking out was unconstitutional, and if a legal smuck like me can find stuff like this, imagine was a serious, intellegent and highly qualified scholar like Prof. Volokh could find if he was only motivated to support his cause instead of what appears to be his political persuasion.
Note to Prof. Volokh and others: None of this is said in anger, it is instead said in sadness.
Sidney:
We're all aware of Crawford-El. Crawford-El held that a prison's act in retaliating against an outspoken inmate by diverting his property was actionable as a First Amendment violation. The cases we are citing in these threads all refer to that doctrine, which is called the "First Amendment retaliation doctrine". And they all say, for various reasons, that the retaliation doctrine does not apply in the same way to legislation.
Now maybe that's wrong, and it does. But you have to deal with the fact that the 11th Circuit and the 4th Circuit say this, and they are applying US Supreme Court precedent (O'Brien) in saying it.
You should consider that the people engaging in this conversation know more than you do (or Ian Millhiser, who is not a practicing lawyer, somewhat hackish, and is the person who has been promoting the Crawford-El theory, and who is, I suspect, the source of your citation). I know that's a nasty thing to say, but it really is true. We read lots of cases, we do research in this area as part of our jobs, and we are quite aware of what the various cases say. And that's why we are telling you what the law is. It's not because we are all in the tank for Ron DeSantis or the Florida legislature. It's because we know what the law is, we're not hacks like Ian Millhiser, and we think this is an important question where it is important to actually know the law.
I appreciate what you are saying, but I think there is a world of difference between a discrete government action - a firing, contract cancellation, property seizure, arrest, prosecution, etc. - and the passage of statute, and I am unaware of a single case of a court striking down a facially constitutional statute for the sole reason that it was passed with illicit motives. (Not to mention the pitfalls of courts' divining and assigning a single collective motive to dozens or even hundreds of individual legislators).
We have a long history of statutes passed with "bad motives". Pretty much the entire progressive agenda of the late 19th and early 20th centuries is rooted in racism. Minimum wage and maximum hours laws were, in great part, about protecting native whites from blacks and immigrants, who would work longer hours for less pay. This was openly acknowledged during the floor debates on the Davis-Bacon Act of 1931 which requires federal contractors to pay the "prevailing wage" (essentially union wages).
The bill was born in 1927 when an Alabama construction crew was awarded a contract in Long Island, and local Rep. Robert Bacon was appalled that the crew was black. On the House floor, Rep. Rep. Miles Algood of Alabama argued that the bill was necessary because "cheap colored labor" "is in competition with white labor throughout the country." Others complained of "cheap imported labor". Does this mean that every legislator who voted for the bill had racist motives or that support for a minimum wage is inherently racist? Should a court have stuck the bill down? Would minimum wage laws then be banned forever, or only until a legislature could pass a court's purity test?
I'm not particularly passionate about it either way, but I would be very surprised if this law is struck down. Heck, Disney might not even challenge it, at least on First Amendment grounds. Who knows? Maybe there are some state law challenges available.
Well, I have never heard of Ian, have never read anything of his, know nothing about him. My post was based on information I researched by myself, as difficult as that is to believe since apparently I am so inferior to folks like Mr. Esper.
I guess I should defer to my betters. But to be honest given his post I seriously doubt if Mr. Esper is one of them. About all we can infer from his comment is that he is likely a graduate of Harvard Law as that would explain his arrogance and condescension which he uses in place of reasonable, logical arguments.
But let me go back to the plain language of the Court.
"As a general matter, this Court has held that the First Amendment prohibits government officials from subjecting an individual to retaliatory actions, including criminal prosecutions, for speaking out."
While Mr. Esper may think I am too ignorant, too stupid, too unskilled to understand the plain meanng of the English language, I would argue that no, I understand that when the Court says it has held that the First Amendment prohibits government from retaliation for speaking out, call me crazy but I really think it means the First Amendment prohibits government from retaliation for speaking out.
And finally, just to end all of this again I fail to see anyone, anyone defend the Florida actions on its merits.
You are, indeed, ignorant, as that reasoning wouldn't get you past the first day in a law school Con Law class. It's not a matter of "your betters"- I'm no better than you as a human being. It's a matter of expertise. You shouldn't proclaim expertise about things you know little about. And just like doctors, or engineers, or any number of other fields, lawyers and law professors can have expertise.
Constitutional law is not simple, and it's not a matter of cherry picking one statement from one case that arose in a completely different factual context. Indeed, if it were that way, how would you explain the 11th and 4th Circuit (plus all the other cases cited by the 11th Circuit) getting it wrong? All those courts knew about Crawford-El. All of them knew about the retaliation doctrine. And why didn't SCOTUS grant cert in one of those cases and say "hey, you got this wrong, don't you remember Crawford-El?".
The answer is because Con Law is more complicated than one case with cherry picked language. And you don't realize this and don't even understand this as a field that requires expertise. You have no idea why big corporations pay $1000 an hour for real legal research into issues like this- after all, you can just pick a case off the Internet, take it out of context, and boom, you know the law!
I've wasted too much time on you already. You need to take a step back and try to listen more and talk less when it comes to Con Law doctrine.
"You need to take a step back and try to listen more and talk less when it comes to Con Law doctrine."
Okay, sounds good. As a Hollywood entertainment lawyer you probably don't know any Con Law experts, but if you have met one or two can you recommend someone to listen to.?
Okay, that was mean. I apologize.
I've probably litigated over 100 constitutional cases over the years, worked for and with the ACLU, published an article on Con Law, etc. You really should stop stepping in it.
I suppose that Disney could argue that the district dissolution specifically singles out the district created to benefit Disney (the Reedy Creek Improvement District).
Well, the can argue whatever they want. But they're just one of six "Improvement Districts" that needs to file for re-approval, so I can't see that argument flying with any honest judge