ORDER
This Court has received the Report and Recommendation of United States Magistrate Judge Joan M. Azrack on the parties’ cross motions for summary judgment in the above-captioned ease. After an exhaustive analysis of the complex issues raised by these motions, Magistrate Judge Azrack recommended granting summary judgment to the plaintiffs on their claim that Public Law 102-393, § 633 was an unconstitutional infringement of rights guaranteed by the First Amendment. The Magistrate Judge rejected plaintiffs’ additional contentions that the statute violated plaintiffs’ rights under the Fifth Amendment, constituted a bill of attainder in violation of Article I, § 9 of the Constitution, and violated the principles of separation of powers as delineated in Articles I, II and III of the Constitution.
Having received objections to the report, this Court has conducted an extensive
de novo
review of the entire record of the proceedings, considered the objections raised and heard oral argument. The Court hereby adopts the Report and Recommendation of the Magistrate Judge insofar as it concludes that the government has failed to satisfy the test to regulate commercial speech as set forth in
Central Hudson Gas & Electric v. Public Service Comm’n,
The Court further notes that, subsequent to issuance of Magistrate Judge Azrack’s report, the Supreme Court, in
Cincinnati v. Discovery Network, Inc.,
— U.S. -,
The Cincinnati Court also found that the requisite “fit” was absent because the benefit achieved by the prohibition, the removal of 62 newsracks “while about 1,500 to 2,000 remain in place,” id., was “ ‘minute’ ” and “ ‘paltry.’ ” Id. Here, Public Law 102-393, § 633 prohibits the use of just a single name, Crazy Horse, on a label. All other potentially appealing names of revered and important Native American icons, such as Sitting Bull and Big Foot, or any other names or symbols that might appeal to Native Americans, are permitted to appear on alcohol labels. For these reasons and the reasons stated in Magistrate Judge Azrack’s report, defendants have not met their burden under Central Hudson. Accordingly, plaintiffs’ motion for summary judgment is granted.
Because the First Amendment prohibits enforcement of Public Law 102-393, § 633, the Court finds that it is unnecessary to address or adopt that portion of Magistrate Judge Azrack’s report which deals with the remaining constitutional principles that plaintiffs contend invalidate the law.
The clerk of the court is directed to enter judgment accordingly.
SO ORDERED.
This action was brought by plaintiffs to challenge on six grounds the constitutionality of Public Law 102-393, § 633 and to seek a permanent injunction prohibiting defendants from revoking the existing Certificates of Label Approval (COLAs) for Crazy Horse Malt Liquor, and preventing them from denying pending and subsequently filed applications for COLAs pertaining to Crazy Horse Malt Liquor. Upon initiating the action, plaintiffs moved before the Honorable Carol Bagley Amon, United States District Judge, for a preliminary injunction. On December 22, 1992, the parties stipulated that the motion would be recast as a summary judgment motion, permitting time for response and cross motion by defendants. {See Stipulation at 1, 2.) Judge Amon referred the motions in their entirety to the undersigned for a Report and Recommendation. The matter was fully briefed and oral argument was heard on January 27, 1993. For the reasons set forth below, the undersigned respectfully recommends that summary judgment be granted in favor of plaintiffs on the First Amendment claim, and in favor of defendants on the five remaining claims.
BACKGROUND AND FACTS
The following facts are undisputed unless otherwise indicated. Plaintiff Hornell Brewing Company (“Hornell”) is a New York corporation which maintains its principal place of business in Brooklyn, New York and produces and markets alcoholic and non-alcoholic beverages including “The Original Crazy Horse Malt Liquor” (“Crazy Horse”). Plaintiff Don Vultaggio is Chairman and co-owner of Hornell. In February, 1992, the Bureau of Alcohol, Tobacco and Firearms (“BATF”) issued a Certificate of Label Approval (“COLA”) to Hornell’s bottler, G. Heileman Brewing Company (“GHBC”), authorizing the bottling and distribution of the Crazy Horse product. 1 The certification process of BATF includes the consideration of whether the label is misleading, fraudulent, or obscene. Hornell introduced Crazy Horse in fourteen states in March 1992. To date, *1230 Crazy Horse is distributed in thirty-one states through over 200 wholesalers who resell to over 100,000 retailers. Hornell claims that Crazy Horse Malt Liquor was to be the first product in a series of Hornell beverages that celebrate the American West. 2
The introduction of the product caused a surge of indignation throughout Congress, seemingly initiated by the United States Surgeon General Antonia Novello. In April 1992, Dr. Novello held a press conference in Rapid City, South Dakota, where she criticized the choice of the name Crazy Horse for a malt liquor. She accused Hornell of “insensitive and malicious marketing” and encouraged the leaders of Indian nations to use public outrage to force Crazy Horse off the market. (Speech given in Rapid City, South Dakota, April 22, 1992, attached to Vultaggio Aff. as Ex. 5.) Subsequently, members of Congress joined the effort to prohibit use of the name Crazy Horse on the malt liquor product. By letter dated April 20, 1992, South Dakota Senator Larry Pressler directed Hornell to change the product’s name or donate its proceeds to Native American causes because “defamation of this hero is an insult to Indian culture.” (Vultaggio Aff. Ex. 6.) Similarly, on April 27,1992, Senator Tom Daschle wrote to Hornell expressing his displeasure with the use of the name Crazy Horse. (Vultaggio Aff. Ex. 7.) On May 19, 1992, Dr. Novello appeared before the House Select Committee on Children, Youth and Family. Representative Patricia Sehroeder had called the hearing to consider legislation to prohibit use of the name Crazy Horse on alcoholic beverages. No representative of Hornell was permitted to appear at the hearing. (Pls.’ Mem.Supp.Mot. at 7; see also Confronting the Impact of Alcohol Labeling and Marketing on Native American Health and Culture: Hearing before the House Select Committee on Children, Youth, and Families, 102d Cong., 2d Sess. (1992), Defs.’ Mem. Ex. A.)
Subsequently, Representative Frank Wolf offered an amendment to the Treasury, Postal Service and General Government Appropriations Bill then under consideration. The amendment would have prohibited the use of
trade names or brand names for alcoholic beverages that bore the name of any deceased individual of public prominence if the use of the name were likely to degrade or disparage the reputation of the individual. (138 Cong.Rec. H5769-70 (July 1, 1992), Vultaggio Aff. Ex. 10.) Representative Wolf made clear that the introduction of the Crazy Horse product was the impetus for the proposed amendment, stating, “[T]he language has been put in because this brewer has developed an alcoholic beverage called Crazy Horse. Crazy Horse was an Indian chief who was known for urging his people not to drink alcohol.” A Point of Order was sustained because the amendment attempted to create legislation through an appropriations bill in violation of House of Representatives rules. (138 Cong.Rec.H. 5769-70 (July 1, 1992), Vultaggio Aff. Ex. 10.) Wolf then proposed an amendment explicitly aimed at prohibiting the use of the name “Crazy Horse” on any alcoholic beverage. (138 Cong.Rec.H. 5775 (July 1, 1992), Vultaggio Aff. Ex. 11.) The House approved this bill and referred it to the Conference Committee. Rather than adopting the House bill, the Senate Committee adopted a resolution directing Hornell to negotiate with Sioux leaders and enter into a binding agreement abandoning the use of Crazy Horse as a brand name to “obviate the need for legislation.” S.Rep. No. 584, 102d Cong., 2d Sess. 17 (July 31 (legislative day, July 23), 1992), Vultaggio Aff. Ex. 13.)
Hornell claims in its moving papers that Hornell representatives met with Sioux leaders to negotiate a resolution. (Pls.’ Mem. Supp.Mot. at 9.) Hornell sought to protect its investment, distributors, suppliers, and work force, in the discontinuation of the Crazy Horse product. (Id.) Hornell claims that the Sioux insisted on a general ban of Native American names and symbols in connection with the sale of all commercial products and services. (Letter from John Yellow Bird Steele to Mark Rodman, dated August 12, 1992, Vultaggio Aff. Ex. 16.) Because this demand was beyond the scope of Hornell’s authority, negotiations were terminated.
*1231 Senators Daschle and Adams then proposed legislation banning use of the name Crazy Horse on alcoholic products. (138 Cong.Rec.S. 13235-36 (September 10, 1992), Vultaggio Aff. Ex. 15.) Senator Adams explicitly rebuked Hornell in his statement to the Senate, stating that Hornell had been “insensitive and disrespectful” to the Sioux’s request that Hornell discontinue Crazy Horse Malt Liquor. (138 Cong.Rec.S. 13439 (Sept. 14, 1992), Vultaggio Aff. Ex. 17.) The statute was enacted on October 1, 1992 and reads as follows:
Upon the date of enactment of this Act, the Bureau of Alcohol, Tobacco, and Firearms (ATF) shall deny any application for a certificate of label approval, including a certificate of label approval already issued, which authorizes the use of the name Crazy Horse on any distilled spirit, wine, or malt beverage product; Provided, that no funds appropriated under this Act or any other Act shall be expended by ATF for enforcement of this section and regulations thereunder, as it related to malt beverage glass bottles to which labels have been permanently affixed by means of painting and heat treatment, which were ordered on or before September 15,1992, or which are owned for resale by wholesalers or retailers.
Pub.L. 102-393, § 633. On November 17, 1992, defendant William T. Earle, Chief of the Industry Compliance Division of BATF issued a letter to G. Heileman Brewing Company (“GHBC”), which bottles Crazy Horse Malt Liquor for Hornell, stating that Public Law 102-393, § 633 “mandates the denial of labels [for Crazy Horse Malt Liquor] which have already been approved” and that “BATF is required to ‘deny any application for a certificate of label approval, including a certificate of label approval already issued, which authorizes the use of the name Crazy Horse on any distilled spirit, wine, or malt beverage product.’ ” (Letter from William T. Earle to Jim Kennedy of November 17,1992, Declaration of Candace E. Moberly, Ex. 2, Defs.’ Mem. Ex. B.)
Plaintiff filed its Complaint for declaratory and injunctive relief on December 4, 1992, and also moved the court for a preliminary injunction, preventing defendants from enforcing Public Law 102-393, § 633. As stated above, the parties recast the motion as a summary judgment motion and defendants filed a cross-motion for summary judgment.
DISCUSSION
A. Summary Judgment
The standards by which a summary judgment motion is decided are well settled. Summary judgment is appropriate where the submitted papers “show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). In this case, the parties have stipulated that no issues of fact exist; they dispute only the conclusions of law to be drawn by the Court.
See Brookpark Entertainment, Inc. v. Taft,
In their Complaint, plaintiffs allege that the Public Law 102-393, § 633 violates the Constitution in the following respects: the suppression of speech in violation of the First Amendment, the denial of equal protection and due process rights in violation of the Fifth Amendment, the issuance of a bill of attainder in violation of Article I, section nine, the taking of property without just compensation in violation of the Fifth Amendment, and a violation of the separation of powers principle. This Report and Recommendation will address each alleged violation, presuming that no issues of fact exist, and will make the necessary conclusions of law with respect to each alleged violation.
B. First Amendment
The fundamental principle of the First Amendment is that the government may not prohibit speech because the ideas expressed therein are offensive.
Texas v. Johnson,
Plaintiffs argue that although this case involves commercial speech, a strict scrutiny standard nonetheless applies by reason of the Supreme Court’s recent decision in
R.A.V. v. St. Paul,
— U.S. —,
The Supreme Court in
RAV.,
however, did not go so far as plaintiffs’ argument suggests. The Court stated that there are certain types of content-based restrictions of protected speech that may be valid and not subject to strict scrutiny. Two such exceptions, according to the Court, are content discrimination based on the very reason that the particular class of speech is proscribable, — U.S. at —,
1. Traditional Commercial Speech Inquiry
Commercial speech is defined as that speech which proposes a commercial transaction.
Virginia State Bd. of Pharmacy v. Virginia Citizens Consumer Council, Inc.,
The Crazy Horse Malt Liquor label is indisputably commercial speech.
Friedman v. Rogers,
a. Crazy Horse Label Is Lawful and Is Not Misleading
First, the Crazy Horse label, as commercial speech, is entitled to First Amendment protection because it concerns lawful activity and is not misleading.
Central Hudson,
b. Substantial Interest
Plaintiffs claim that Public Law 102-393, § 633 was enacted for the purpose of “protecting Native Americans from the offensive exploitation of a former Sioux leader’s name.” (Pis.’ Mem. at 42.) It bears repeating that the desire to protect society or certain members of society from the purported offensiveness of particular speech is not a substantial interest which justifies its prohibition.
Texas v. Johnson,
Illustrative of this in the context of commercial speech are lower court decisions addressing governmental efforts to prohibit commercial use of “Sambo’s”, an appellation with patently offensive connotations to African Americans. In
Sambo’s of Ohio, Inc. v. City Council of Toledo,
One of the basic premises of advertising is that if it is too offensive to too many people, its use will be counterproductive, for those who are offended will not only refuse to buy the product, but also, if they are sufficiently offended, they will attempt to persuade others to refuse also.
Sambo’s of Ohio,
Similarly, in
Sambo’s Restaurants, Inc. v. Ann Arbor,
The legislative history of Public Law 102-393, § 633 clearly suggests that the government’s initial objective in enacting the Crazy Horse statute was to protect Native American communities from what it perceived to be an offensive exploitation of the revered Sioux leader’s name.
See Coors,
But that is not the end of our inquiry. Contrary to plaintiffs’ argument, a particular piece of legislation may be valid where “the circumstances giving rise to [the] legislation have changed so long as the legislation continues to serve some valid and substantial governmental interest.”
Coors,
Defendants assert that the government’s substantial interest in enacting Public Law 102-393, § 633 is the protection and preservation of the health, safety, and welfare of Native Americans by preventing the enhanced appeal of alcohol use among Native Americans due to the use of the name Crazy Horse on a malt liquor. (Defs.’ Mem. at 18.) This argument is based on the premise that the use of the name Crazy Horse will stimulate the demand for malt liquor in Native American communities. (Id.) There is no evidence even indicating what Crazy Horse sales are, or what share of the market this product holds, let alone how much is consumed by Native Americans or whether alcohol consumption by Native Americans has increased since Crazy Horse was introduced.
Courts have repeatedly held that the government has a substantial interest in protecting citizens from the problems associated with alcohol.
See Dunagin v. Oxford,
Like plaintiffs, the government has also relied on the legislative history to support its argument. At the hearing entitled, Confronting the Impact of Alcohol and Marketing on Native American Health and Culture, which was held before the House Select Committee on Children, Youth, and Families in May, 1992, research was presented documenting alcohol related health problems that afflict Native American society. (See Defs.’ Mem. Ex. A.) The alcoholism rate among Native Americans is six times higher than *1236 that of the general population. (Id. at 7.) Native American infants are twenty times more likely than other United States infants to be born with Fetal Alcohol Syndrome. (Id.) High rates of alcohol use and abuse among Native American teenagers are also reported. (Id. at 7-8.) Given the serious nature of these problems, the government does have a substantial interest in preventing further use of alcohol among Native Americans in order to reduce its deleterious effects. 9
Therefore, even though the avoidance of offensiveness is not a substantial interest for Public Law 102-393, § 633, the concerns currently asserted by the government do constitute a substantial interest. While Crazy Horse may not exacerbate alcohol use, the government’s interest in preventing further alcohol abuse and its resultant problems is most certainly substantial. In light of this fact, the Court defers to the asserted interest of the government and finds that the prevention of the enhanced appeal of alcohol use among Native Americans is substantial, satisfying this prong of the Central Hudson test.
c. Direct Advancement
Although defendants have asserted a substantial interest, they have not established that Public Law 102-393, § 633 directly advances that interest.
Central Hudson,
*1237 Here, the defendants failed to offer any evidence that suggests that Public Law 102-393, § 633 — prohibiting only the use of the Crazy Horse label on liquor products — directly advances their interest in preventing the enhanced appeal of alcohol use among Native Americans. Indeed, the legislative record as to the offensiveness of the Crazy Horse label would seem as likely to suggest the contrary proposition, that Native Americans would be discouraged from consuming an alcoholic beverage that dishonors the name of a revered Native American leader.
Defendants’ primary argument on this element of
Central Hudson
is that the legislature is entitled to considerable deference in its belief that the statute would directly advance the interest. For this proposition, defendants rely on
Posadas de Puerto Rico
Assocs.
v. Tourism Co. of Puerto Rico, 478
U.S. 328,
Furthermore, in
Posadas,
the Court was able to defer to the legislature on the basis of precedent,
see Dunagin v. Oxford,
Defendants base their claim that Crazy Horse will increase alcohol consumption among Native Americans on the naked premise that because Crazy Horse was such a revered leader, Native American youths will be inclined to consume Crazy Horse, in an effort to identify with the leader and the noble Native American heritage. {See Defs.’ Mem. at 23-25.) In testimony before the Committee, some witnesses did imply that alcohol abuse among Native Americans would be exacerbated by the marketing of Crazy Horse Malt Liquor for this reason. (Id.)
The Court, however, is not at all convinced that the use of a revered Native American name may cause any discernible increase in alcohol consumption among Native Americans, particularly when plaintiffs have indicated, and defendants have not disputed, that Crazy Horse has not been marketed specifically toward Native Americans and plaintiffs’ use of this name, according to legislative findings is, if anything, offensive to Native Americans.
(See
Pis.’ Local 3(g) Statement ¶¶ 14, 16.) The government’s theory, in short, is too remote and speculative to satisfy the direct advancement prong of
Central
*1238
Hudson,
Plaintiffs also argue that because Public Law 102-393, § 633 is underinclusive, it does not directly advance the government’s interest. It is true that underinclusiveness is not necessarily fatal to a restriction of commercial speech,
Posadas,
• The burden is on the government to establish that there is an immediate connection between the interest and the restriction on speech; mere plausibility is insufficient.
Linmark Assocs., Inc. v. Willingboro,
In addition, the Fourth Circuit recently held that a statute that banned particular commercial speech toward all in an effort to protect the concerns of some failed the direct advancement prong of
Central Hudson. Edge Broadcasting Co. v. United States,
In sum, the government has failed to show how Public Law 102-393, § 633 directly advances the substantial interest of preventing enhanced alcohol use among Native Americans. “The impact on these laudable goals by [the government] is speculative at best.”
Sambo’s Restaurants,
d. Proportion to the Interest Asserted
The fourth prong that the government must satisfy is that the regulation must be in proportion to the interest asserted.
Board of Trustees v. Fox,
Although commercial speech may enjoy less protection than political speech, the Supreme Court, in fact, accords it a high value unless it is false or misleading or causes distinctive adverse effects which directly flow from the commercial speech regulated.
Discovery Network, Inc. v. Cincinnati,
Nor does this sweeping prohibition take into account sensible alternatives that would not require any direct limit on use of the Crazy Horse label, such as education programs to inform Native Americans of the dangers of alcohol. Another possibility is an additional warning on the Crazy Horse bottle informing Native Americans of the dangers of alcohol or of the high incidence of alcoholism and its effects in Native American communities. While the least restrictive means is not required, the regulation must be narrowly tailored to the government’s interest. With obvious alternatives available that do not hinder speech in any way, or hinder it far less, the statute is not, by any means, a reasonable fit.
In sum, it is the finding of this Court that Public Law 102-393, § 633 is more extensive than necessary to serve the interest asserted by the government, and as such also fails the fourth prong of the Central Hudson test.
2. Strict Scrutiny
As discussed above, the Supreme Court,
R.A.V. v. St. Paul,
— U.S.-,-,
Strict scrutiny requires that the challenged statute is narrowly tailored to a compelling governmental interest.
R.A.V.,
— U.S. at -,
The prevention of the enhanced appeal of alcohol use is certainly a compelling interest.
See Dunagin v. Oxford,
Nevertheless, as discussed above in the context of the fourth prong of Central Hudson, Public Law 102-393, § 633 is not narrowly tailored to that interest. Because the law does not even directly advance the government’s interest, it is axiomatic that it is not narrowly tailored to that interest. Measures that do not burden speech in any way could have been advanced by the government, including but not limited to counter-speech concerning the dangers inherent in alcohol abuse. Although the government contends that counterspeeeh is not required of the government before regulating speech, the Court finds that there is no evidence that the law will advance the interest in any way; therefore, the proscription of speech is not narrowly tailored.
For the reasons set forth above, it is respectfully recommended that Public Law 102-393, § 633 violates the First Amendment, and summary judgment should be granted in favor of plaintiffs on this claim.
A finding of unconstitutionality on the First Amendment challenge is sufficient to strike the statute and grant summary judgment in favor of plaintiffs. Nevertheless, for the purposes of this Report and Recommendation, the undersigned will engage in analysis of all the constitutional violations that have been alleged.
C. Equal Protection
Plaintiffs allege that Public Law 102-393, § 633 violates the equal protection clause of the Fifth Amendment. The doctrine of equal protection requires that all persons similarly situated shall be treated alike.
Barbier v. Connolly,
Courts have struck statutes that restrict a particular type of speech only for specific groups while not restricting the same type of speech for other groups.
See Minneapolis Star & Tribune Co. v. Minnesota Comm’r of
*1241
Revenue,
Plaintiffs claim that they are being treated differently from other producers of alcoholic beverages who use Native American names and symbols on their bottles. Public Law 102-393, § 633, however, applies to all beverage producers alike:- Crazy Horse may not be used on any alcoholic beverage by anyone. Conversely, Hornell Brewing is still free to use any other Native American name on its product. Therefore, plaintiffs have failed to establish that they have been treated differently from any similarly situated persons or entities, and as such have failed to satisfy the threshold of an equal protection claim. 11 Therefore, it is unnecessary to engage in the strict scrutiny analysis and it is respectfully recommended that summary judgment be granted in favor of defendants on this claim.
D. Due Process
The Fifth Amendment guarantees that the federal government shall not deprive a person life, liberty or property without due process of law. U.S. Const, amend. V. Plaintiffs claim that the due process guarantee prohibits Congress from “singling out” Hornell by proscribing use of the name Crazy Horse on alcoholic beverages. The Court agrees with defendants that due process offers no such protection against a statute that affects a specific group or entity. 12
Plaintiffs have relied on eases where courts invalidated state statutes that authorized citizen .referenda to revoke the liquor licenses of particular establishments.
Brookpark Entertainment, Inc. v. Taft,
E. Bill of Attainder
Plaintiffs have claimed that Public Law 102-393, § 633 constitutes a bill of attainder,
in
violation
of
Article I, § 9 of the Constitution. In
Selective Serv. Sys. v. Minnesota Pub. Interest Research Group,
With respect to the first characteristic, the mere singling out of an individual or group by legislation does not automatically constitute a bill of attainder. In
Nixon v. Administrator of General Servs.,
Therefore in the present case, the singling out of the name Crazy Horse in Public Law 102-393 § 633 is not dispositive of the bill of attainder issue although the hearing transcript and congressional record refer directly to the plaintiff and its product. (See Defs.’ Mem.Ex. A.) The record makes clear that the concern of the House Select Committee was not the production and distribution of malt liquor by plaintiffs. The act proscribes only the use of the name Crazy Horse on alcoholic beverages. The fact that plaintiffs were the only organization planning to use that particular name in the future in a manner proscribed by the statute (see Moberly Deposition ¶ 4), is not dispositive. Ml other liquor producers or distributors, as well as plaintiffs are proscribed by the statute from using the name Crazy Horse. Pursuant to the statute, and according to the government’s attorney at oral argument, plaintiffs are free to brew, bottle, and distribute its product, but could not continue to use its name.
The second prong of the test for identifying a bill of attainder requires that the act inflict punishment.
Selective Serv. Sys.,
The historical definition of punishment traditionally encompasses death sentences, imprisonments, banishment, the punitive confiscation of property and legislative bars to participate by individuals or groups in specific employments or professions.
Nor is the purpose of the Public Law 102-393, § 633 punitive. The Court must determine whether the act can reasonably be said to further nonpunitive legislative purposes.
Nixon,
As discussed above, the record shows that the purpose of Public Law 102-393, § 633 was the protection and preservation of health by preventing the enhanced appeal of alcohol use among Native Americans.
15
While in the context of First Amendment analysis, this Court found that the statute did not directly advance that interest, and was more extensive than necessary to serve that interest, the purpose of the statute itself is substantial and nonpunitive. It is important to note that under' the First Amendment the statute failed a significantly higher standard of review than is at issue in the bill of attainder context. As was indicated in the equal protection analysis, however, the statute would pass the lowest of standards, the rational basis test, which is most similar to the test herein defined for the bill of attainder. Under the Bill of Attainder Clause the only question with regard to the purpose is whether the government is pursuing nonpunitive goals.
Selective Sews. Sys.,
Finally, with regard to the second characteristic of a bill of attainder, the legislative record does not demonstrate an intent to punish.
Selective Sews. Sys.,
Therefore, because Public Law 102-393, § 633 does not single- out an individual for punishment, or inflict punishment on the identified individual, the statute is not a bill of attainder. On this claim, therefore, it is respectfully recommended that summary judgment be granted in favor of defendants.
F. Taking of Property Without Just Compensation
Plaintiffs also claim that Public Law 102-393, § 633 constitutes a taking of property without just compensation, in violation of the Fifth Amendment. Defendants argue only that this Court does not have jurisdiction to evaluate this claim; they state that only the
*1244
United States Court of Claims, pursuant to the Tucker Act, 28 U.S.C. § 1491(a)(1), has jurisdiction over claims for damages. However, plaintiff has sought a declaratory judgment that Public Law 102-393, § 633 is unconstitutional, not damages from the government. This Court clearly has jurisdiction to decide whether there has been a taking within the meaning of Takings Clause.
See Jim Young Develop. Corp. v. State Highway Comm’n of Missouri,
Thus, the remaining questions are whether the Crazy Horse COLA is property for the purposes of the Takings Clause, and whether there has been a taking. Assuming, without deciding, that the COLA is property,
see Cabo Distributing Co. v. Brady,
Challenges of governmental action under the Takings Clause are to be decided on an
ad hoc
basis.
Connolly v. Pension Benefit Guaranty Corp.,
Although plaintiffs have made only general statements and offered no substantive documentation with respect to the economic losses they will incur if the Crazy Horse COLA is revoked, it is likely that some economic loss would be shouldered by plaintiffs if Public Law 102-393, § 633 were upheld and enforced. It is also probable that enforcement would have a significant impact on plaintiffs’ “investment backed expectations” for the product.
Nevertheless, Public Law 102-393, § 633 does not constitute a taking under the third factor to be considered. For government action to have the character of a taking, it must “physically invade or misappropriate assets for its own.”
Connolly,
Here, it is indisputable that the government has not seized the property of plaintiffs for its own or the public’s use. Therefore, Public Law 102-393, § 633 is not a taking without just compensation in violation of the Fifth Amendment, and as such it is respectfully recommended that summary judgment on this issue be granted in favor of defendants.
G. Separation of Powers
Plaintiffs’ final allegation is that Congress violated the principles of separation of powers, as delineated in Articles I, II, and III of the Constitution, when it limited the discretion of the BATF by enacting Public Law 102-393, § 633. It is the finding of the undersigned that as a matter of law, no violation of separation of powers exists, and that summary judgment on this ground must be granted in favor of defendants.
The foundation of the separation of powers doctrine is that the Constitution divides the powers of the federal government into three defined categories: legislative, executive, and
*1245
judicial. The declared purpose of dividing the powers of government was to secure the preservation of liberty by providing “avenues for the operation of checks on the exercise of governmental power.”
Bowsher v. Synar,
Nevertheless, the legislative branch of government maintains constitutional powers that are more extensive and less susceptible to precise limits than either of the other two branches. In order to “forestall the danger of encroachment beyond the legislative sphere the Constitution imposes two basic and related constraints on the Congress.”
Metropolitan Washington Airports Authority,
— U.S. at-,
The first constraint on Congress is illustrated in
Bowsher v. Synar,
In this case, Public Law 102-393, § 633 does not violate either of the two constitutional limits of Congress’ powers as enunciated in
Bowsher
and
Chadha.
Congress has neither retained the power of removal or appointment over an officer exercising executive functions, nor has it attempted to exercise its legislative power outside the boundaries of Article I. Congress legislatively delegated the authority to issue COLAs to the ATF. The Constitution requires Congress to articulate policies and standards that would serve to confine the discretion of administrative agencies like BATF to whom Congress has delegated power.
Mistretta,
Therefore, since Congress implemented its directive modifying BATF’s delegated authority to issue COLAs in accordance with the procedures set out in Article I, it did not violate the separation of powers principle by enacting Public Law 102-393, § 633. It is respectfully recommended that summary judgment on this claim be granted in favor of defendants.
CONCLUSION
For the reasons stated above, it is respectfully recommended that summary judgment *1246 in favor of the plaintiff be granted on the basis that Public Law 102-393, § 633 violates the First Amendment of the Constitution. On the claims alleging violations of the Equal Protection Clause, Due Process Clause, Takings Clause, Bill of Attainder Clause, and Separation of Powers doctrine, it is respectfully recommended that summary judgment be granted in favor of defendants.
Although this Court has found that Public Law 102-393, § 633 violates the First Amendment for the reasons discussed above, this decision should not be read as either condoning or endorsing plaintiffs’ choice of name for their product Crazy Horse Malt Liquor. The Court can well appreciate that the use of the name of a revered Native American leader, who preached sobriety and resisted exploitation under the hand of the United States government, is offensive and may be viewed as an exploitation of Native Americans throughout this country. The choice may be particularly insensitive given the ample documentation of alcohol abuse and its destructive results among Native Americans. Nevertheless, a price we pay in this country for ordered liberty is that we are often exposed to that which is offensive to some, perhaps even to many. It is from our exposure to all that is different that we best learn to address it, change it, and sometimes tolerate and appreciate it. “Freedom of speech may best serve its high purpose when it induces a condition of unrest, creates dissatisfaction with conditions as they are, or even stirs people to anger.”
Terminiello v. Chicago,
If they are offended by the word [Crazy Horse] not only can they refuse to patronize the plaintiffs, but they, too, can erect signs, carry placards, or publish advertisements designed to persuade others to refuse to patronize the plaintiffs. That is what freedom of speech is all about. One cannot have freedom of speech for himself if it can. be denied to others, nor is speech free if only innocuous utterances are permitted. ... It would be selling our birthright for a mess of pottage to hold that because language is offensive and distasteful even to a majority of the public, a legislative body may forbid its use.
It is in this spirit that the undersigned respectfully recommends that Public Law 102-393, § 633 be declared an unconstitutional violation of the First Amendment.
Any objections to this Report and Recommendation must be filed with the Clerk of the Court, with a copy to the undersigned, within ten (10) days of receipt of this Report. Failure to file objections within the specified time waives the right to appeal the District Court’s order. See 28 U.S.C. § 636(b)(1); Fed.R.Civ.P. 72, 6(a), 6(e).
SO ORDERED.
Notes
. Plaintiffs have raised a substantial argument that a strict scrutiny analysis should be employed under
R.A.V. v. St.
Paul, -U.S.-,
. BATF regulations set forth that the COLA is issued to the bottler of the product.
. Crazy Horse was a highly revered Oglala Sioux leader.
.The general rule is that speech is protected, meaning restrictions of speech are subject to strict scrutiny.
R.A.V. v. St.
Paul,— U.S.—, —,
. The issue in R.A.V. was the constitutionality of an ordinance which read,
Whoever places on public or private property a symbol, object, appellation, characterization or graffiti, including, but not limited to, a burning cross or Nazi swastika, which one knows or has reasonable grounds to know arouses, anger, alarm, or resentment in others on the basis of race, color, creed, religion, or gender commits disorderly conduct and shall be guilty of a misdemeanor.
R.A.V.,-U.S. at-,
. An illustration of the first exception which was provided by the Court is that the government “might choose to prohibit only that obscenity which is the most patently offensive
in its pmrience-i.e.,
that which involves the most lascivious displays of sexual activity. But it may not prohibit, for example, only that obscenity which
*1233
includes offensive
political
messages.”
R.A.V.,
— U.S. at —,
With respect to the second exception, the Court stated that the government could restrict a subclass of proscribable speech when the subclass is associated with particular secondary effects. For example, according to the Court, the government could permit all obscene live performances except those involving minors.
R.A.V.,
— U.S. at-,
. This term the Supreme Court will have the opportunity to clarify unresolved issues raised by
R.A.V.
in the context of commercial speech when it considers
Edge Broadcasting Co. v. United States,
. The Court explicitly rejects plaintiffs’ argument that use of the Crazy Horse name is actually the personal expression of Don Vultaggio, the Chairman and co-owner of Hornell Brewing, and therefore is entitled to the utmost constitutional protection. Plaintiff cannot seriously liken Vultaggio's freedom of expression in decorating his home in Southwestern style to the use of the name Crazy Horse on a nationally marketed alcoholic beverage.
. According to BATF regulations, malt beverage labels shall not contain any statement that is false or untrue in any particular, or that tends to create a misleading impression, any statement, design, device or representation of or relating to analyses, standards or tests which the Director finds to be likely to mislead the consumer, or any statement, design, device or representation of or relating to any guarantee which the Director finds likely to mislead the consumer. 27 C.F.R. 7.29(1), 7.29(4), 7.29(5). See also 27 C.F.R. 7.23(a), 7.23(b).
. In support of their asserted interest defendants also rely on the federal government's history of a special "trust relationship” with Native Americans. It is accurate that the government has assumed a duty toward Native Americans to protect certain lands that have been identified as "Indian lands.”
See United States v. Mitchell,
Defendants also cite
McNabb v. Bowen,
. The rational basis test requires only that the regulation be rationally related to a legitimate governmental interest. Legislation is rarely struck when this test is applied.
See Regan
v.
Taxation With Representation,
. The Court also rejects plaintiffs' eleventh hour argument that Public Law 102-393, § 633 is a race based statute that thereby requires application of strict scrutiny. (See Pls.’ Reply Mem. at 16.) Plaintiffs argue that because the statute was enacted with the purpose of protecting Native Americans, it is "racially specific" and violates equal protection.
However, equal protection proscribes race based classifications, not all statutes whose purpose it is to protect certain racial or ethnic groups. The cases relied on by plaintiffs involved laws that facially distinguished between distinct racial groups.
See Richmond v. J.A. Croson Co.,
. Defendants argue that to accept plaintiffs’ premise would obviate the need for the Bill of Attainder clause, discussed below. The Court also perceives that plaintiffs' argument is a mere repetition of their equal protection claim.
. From the scant analysis provided by both parties on this issue, it is even unclear whether the claim is one of a substantive or procedural due process violation. While there may be a basis for finding a violation of either due process guarantee, see, e.g., Cabo Distributing Co. v. Brady, No. C-92-2591-DLJ,- F.Supp.-slip op. at 17-26 (N.D.Cal. Oct. 22, 1992), such grounds have not been alleged or argued by the parties. Therefore, this Court declines from further consideration of the issues.
. Of course, it is the finding of this Court that Public Law 102-393, § 633 fails on the First Amendment, but if assuming arguendo it were constitutional under the First Amendment, the pertinent facts in this prong of bill of attainder analysis would not invalidate the statute.
. Again, it is under First Amendment analysis that the Court finds the statute does not directly advance the asserted interest. However, that determination does not impact upon the question of whether the legislature's purpose was legitimate in bill of attainder analysis.
