R.J. Reynolds Tobacco Co. v. BontaR.J. Reynolds Tobacco Co. v. Bonta
ORDER
Two tobacco companies bring suit against officials of California’s Department of Health Services. They challenge the state’s anti-tobacco advertisements, which are funded through a special surtax on wholesale tobacco sales. The tobacco companies claim that the surtax forces them to fund ads with which they disagree, and that this violates their right to free speech under the First Amendment. They also complain that the ads interfere with their right to trial by jury under the Seventh Amendment and unfairly stigmatize them in violation of the Due Process Clause of the Fourteenth Amendment.
The tobacco companies have moved for a preliminary injunction and the state has moved to dismiss the complaint. I decide the matter on the basis of the papers and pleadings filed herein, and after oral argument. 1
I.
BACKGROUND 2
A. PROPOSITION 99: THE TOBACCO TAX AND HEALTH PROTECTION ACT
In 1988, the voters of California approved Proposition 99, a statewide ballot initiative also known as the “Tobacco Tax and Health Protection Act of 1988” (“the *1088 Act”). 3 Cal. Rev. & Tax Code §§ 30121-30130. The Act imposes a $0.25 per-pack surtax on all wholesale cigarette sales in California known as the Cigarette and Tobacco Products Surtax (“the Surtax”).
1. The Cigarette and Tobacco Products Surtax
The revenue collected by the Surtax is placed in the “Cigarette and Tobacco Products Surtax Fund” and may be appropriated only for the following purposes: (1) tobacco-related school and community health education programs; (2) tobacco-related disease research; (3) medical care for patients who cannot afford to pay and who lack health insurance; and (4) programs for fire prevention and environmental conservation. Id., § 30122(a). In accordance with these purposes, taxes deposited into the Surtax Fund are allocated, according to specified percentages, among six separate accounts: Health Education (20%), Hospital Services (35%), Physician Services (10%), Research (5%), Public Resources (5%), and an Unallocated Account (25%), which may be made available for any of the four purposes specified above. Id., § 30124(b)(1). The tobacco advertising program at issue in this case is funded through a portion of the Health Education Account, which “shall only be available for the prevention and reduction of tobacco use, primarily among children, through school and community health programs.” Id., § 30122(b)(1).
2. The Tobacco Control Program
In 1999, the Legislature adopted implementing legislation. Cal. Health & Safety Code §§ 104350-104485. In conjunction therewith, the Legislature made findings that smoking is detrimental to the health of Californians, that it results in huge costs to the state, and that prevention is the best means of addressing these concerns. 4 The Legislature also determined that tobacco use prevention and cessation is “the highest priority in disease prevention for the State of California” and made a commitment to “play a leading role in promoting a smoke-free society by the year 2000....” Id., § 104350(a)(9), (10). 5
*1089 The Legislature directed the Department of Health Services to establish “a program on tobacco use and health to reduce tobacco use in California by conducting health education interventions and behavior change programs at the state level, in the community, and other nonschool settings.” Id., § 104375(a). Pursuant to this program, known as the Tobacco Control Program, the Department is required, inter alia, to develop a media campaign directed to raising public awareness of the deleterious effects of smoking and to effect a reduction in tobacco use. Id., §§ 104375(b), (c), (e)(1) & (j); 104385(a); 104400.
Approximately two-thirds of the funds in the Health Education Account are allocated to the Department of Health Services for tobacco control activities. Plaintiffs allege that the state spends approximately $25 million annually on the challenged advertisements. Complaint at ¶ 22.
B. THE CHALLENGED ADVERTISEMENTS
California’s anti-tobacco media campaign consists of radio, television, billboard and print advertising. Complaint at ¶ 14. According to plaintiffs, the ads consistently portray smoking as dangerous and undesirable and the tobacco industry and its executives as deceptive. Id. at ¶¶ 17, 19. In several of the television ads, actors playing tobacco executives are shown discussing how to lure more people into smoking or are portrayed as being elusive about smoking’s health effects. See Declaration of Todd Thompson (“Thompson Deck”), Exh. L. These ads do not contain disclaimers explaining that the people shown are actors rather than actual tobacco company employees. Complaint at ¶ 18.
A recent round of television commercials features an actor playing a public relations executive for the fictional cigarette brand “Hampton,” detailing for viewers his unseemly methods for getting people to start smoking. Thompson Deck, Exh. L. The ads end with the tagline, “Do You Smell Smoke?,” id., implicitly referencing both cigarette smoke and a smoke-and-mirrors marketing strategy. Another ad portrays tobacco executives discussing how to replace a customer base that is dying at the rate of 1,100 users a day. Id. Some of the ads end with images of mock warning labels such as: “WARNING: The tobacco industry is not your friend.”; or “WARNING: Some people will say anything to sell cigarettes.” Id.
Several spots suggest that tobacco companies aggressively market to children. Id. In one particularly striking television ad entitled “Rain,” children in a schoolyard are shown looking up while cigarettes rain down on them from the sky. Complaint at ¶ 19. A voice-over states ‘We have to sell cigarettes to your kids. We need half a million new smokers a year just to stay in business. So we advertise near schools, at candy counters. We lower our prices. We have to. It’s nothing personal. You understand.” Thompson Deck, Exhibit L. At the conclusion, the narrator says, “The tobacco industry: how low will they go to make a profit?” Id.
Each of the challenged advertisements is identified as “Sponsored by the California Department of Health Services.” Id.
C. THE PARTIES
Plaintiffs are R.J. Reynolds Tobacco Company, its subsidiary, R.J. Reynolds Smoke Shop, Inc., and Lorillard Tobacco Company. Both R.J. Reynolds and Loril- *1090 lard manufacture and sell cigarettes in California. All three corporations have their principal place of business in North Carolina and are incorporated in Delaware.
Lorillard and R.J. Reynolds allege that their business in California requires them to pay the Cigarette and Tobacco Products Surtax; R.J. Reynolds does not pay the Surtax directly but pays it through the Smoke Shop subsidiary. Because the Surtax is imposed on “distributors” of cigarettes, most Surtax payments are not made by the cigarette manufacturers themselves, but by cigarette wholesalers. Because plaintiffs also sell or provide small quantities of cigarettes directly to smokers in California, however, they claim that they have and will in the future be required to pay the Surtax. See Declaration of Steven F. Gentry (“Gentry Deck”) ¶¶ 2, 4. Plaintiffs state that their combined payments of the Tobacco Products Surtax in 2002 were in excess of $14,000. Gentry Deck ¶ 4. Thus, plaintiffs allege that they collectively contributed approximately $2,800 of the $25 million spent on the challenged ads.
The defendants are Diana M. Bonta, Director of the California Department of Health Services, and Dileep G. Bal, Acting Chief of the Tobacco Control Section of DHS. The Complaint alleges that “Bonta is the highest-ranking official of DHS and, accordingly, is ultimately responsible for the advertising challenged in this action.” Complaint at 2, ¶ 4. Defendant “Bal is directly responsible for the design, approval and distribution of the advertising challenged in this action.” Id. at 2, ¶ 5.
D. PLAINTIFFS’ ALLEGATIONS
Plaintiffs bring five causes of action. First, they allege that the use of the Surtax for funding anti-industry ads violates the right of free speech secured to them by the First Amendment. Second, they allege an identical claim under the free speech clause of Article I, section 2 of the California Constitution. Third, plaintiffs allege that the “anti-industry” ads stigmatize them, publicly disparage their reputation and character, and prejudice potential jurors with respect to the facts that underlie the sort of civil lawsuits that are frequently brought against them in California. They allege that the distribution of the advertisements thus constitutes a denial of due process, in that the state has publicly stigmatized them and denied them the right to a fair and impartial jury in California, in violation of both the Fourteenth and Seventh Amendments. Fourth, plaintiffs allege that the distribution of the program’s anti-industry ads constitutes a denial of their right to a fair and impartial jury under the Seventh Amendment. Fifth, plaintiffs bring a claim for declaratory relief, seeking a judicial declaration that the distribution of the anti-industry ads violates their constitutional rights because it (1) constitutes compelled speech with which they disagree; (2) constitutes disparaging speech which was published without affording them pri- or notice and hearing; and (3) has the potential to prejudice current and future California jurors with respect to matters at issue in pending litigation. Plaintiffs also seek an injunction barring defendants from using funds raised by the Surtax to distribute any advertising that “attacks, ridicules, vilifies, or otherwise criticizes or comments negatively upon the conduct or speech of the ‘tobacco industry,’ or of Plaintiffs.” Complaint at 14 ¶ 1.
II.
STANDARDS UNDER FED. R. CIV. P. 12(b)(6)
On a motion to dismiss, the allegations of the complaint must be accepted as true.
See Cruz v. Beto,
In general, the complaint is construed favorably to the pleader.
See Scheuer v. Rhodes,
III.
STANDING
The defendants’ first defense is that the plaintiffs lack standing. As I now explain, plaintiffs’ constitutional claims are such that this suit comes close to being “in the class of those cases where standing and the merits are inextricably intertwined.”
City of Revere v. Massachusetts General Hospital,
“[T]o satisfy Article Ill’s standing requirements, a plaintiff must show (1) it has suffered an ‘injury in fact’ that is (a) concrete and particularized and (b) actual or imminent, not conjectural or hypothetical; (2) the injury is fairly traceable to the challenged action of the defendant; and (3) it is likely, as opposed to merely speculative, that the injury will be redressed by a favorable decision.”
Friends of Earth, Inc. v. Laidlaw Environmental Services,
A. INJURY-IN-FACT
Plaintiffs claim they are injured because they are compelled to fund speech with which they disagree and because the airing of the challenged advertisements injures their reputation. Defendants contend that plaintiffs lack the requisite injury because their stake as taxpayers is too generalized and indirect to confer standing and because the compelled-speech claim fails as a matter of law. Defendants also *1092 argue that plaintiffs cannot premise standing on alleged reputational injury because any such injury is not sufficiently individualized.
Generally, suits premised solely on state or federal taxpayer status are not cognizable in the federal courts because a taxpayer’s “interest in the moneys of the Treasury ... is shared with millions of others, is comparatively minute and indeterminable; and the effect upon future taxation, of any payments out of the funds, so remote, fluctuating and uncertain, that no basis is afforded for [judicial intervention.]”
ASARCO, Inc. v. Radish,
In the matter-at-bar, it appears that plaintiffs have such a “direct and immediate” interest. The Surtax in question is levied only on tobacco wholesalers and manufacturers, for purposes directly related to their business, so that the interest at issue is not “shared with millions of others.” Both the Supreme Court and the Ninth Circuit have indicated that standing is proper where, as here, a tax is challenged by members of a small, discrete group on whom the tax is imposed.
See Bacchus Imports v. Dias,
The plaintiffs, however, are not challenging the tax itself but the government’s use of tax dollars. The question is whether the distinction makes a difference; I conclude that it does not. Standing in the present context turns on whether the plaintiffs are members of a small, discrete group on whom the tax is imposed and whether the tax is put to uses directly affecting the plaintiffs. Under this standard, there appears to be no meaningful distinction between attacking the lawfulness of collecting the tax, as contrasted with the lawfulness of the use to which the tax is put. As I now explain, the issue here is similar to taxpayer standing in another First Amendment context.
In Establishment Clause cases, rather than requiring a “direct injury,” courts require a plaintiff to demonstrate a logical link between his taxpayer status and the challenged legislative enactment, and a nexus between his taxpayer status and the precise nature of the alleged constitutional infringement.
Flast v. Cohen,
Similarly, plaintiffs alleged reputational injuries, on which their Seventh Amendment and Due Process claims depend, are not as generalized as defendants contend. In arguing to the contrary, defendants rely on
Allen v. Wright,
B. CAUSATION
In arguing that plaintiffs have failed to demonstrate the requisite causation, defendants again raise arguments that are more properly directed to the merits. Defendants’ causation argument is particularly directed to the merits of plaintiffs’ Seventh Amendment claim; they claim that any impact on jury trials caused by the challenged program is entirely speculative. For purposes of the standing inquiry, at least on a motion to dismiss, plaintiffs would appear to have satisfactorily alleged that California’s advertising campaign, which has the purpose of changing people’s attitudes about tobacco use and maligning the character of the tobacco industry, actually has that effect. These allegations are sufficient to show that the reputational harm alleged flows from the advertisements.
C. REDRESSABILITY
Finally, defendants argue that plaintiffs’ claims, even if sustained, would not be redressable. As defendants correctly point out, the ordinary remedy in compelled funding for speech cases is a refund of the money used to fund the objected-to speech. Here, however, plaintiffs do not seek a refund or an order enjoining the state from collecting the Sur
*1094
tax and, in any event, such a remedy would be barred by the Tax Injunction Act, 28 U.S.C. § 1343. The remedy that plaintiffs do seek, however, an injunction prohibiting the defendants from airing the objectionable advertisements, is not barred by statute and has in fact been adopted by at least one court in a compelled speech case.
See Pelts & Skins LLC v. Jenkins,
Because there appears to be no bar to the remedy plaintiffs seek, they have alleged redressability for purposes of standing.
Given all the above, the court concludes that plaintiffs’ allegations satisfy Article Ill’s “case or controversy” requirement. I now turn to the merits.
IV.
THE FIRST AMENDMENT
The tobacco companies argue that California’s use of the Proposition 99 Surtax to fund the challenged advertising effectively compels them to fund speech with which they disagree. They assert that such compulsion violates their rights under the First Amendment. 9 They do not question the states’s right to convey information to its citizens about the health risks of smoking. Rather, they object to advertising that assails the character, motives and practices of the tobacco industry and seek to enjoin the state from airing ads fitting that description.
Defendants and amici contend that the advertising is speech by the government on a matter of urgent importance to the public health of its citizens, and as with any other speech by the government, the advertising is necessarily funded by tax revenues. Under the “government speech” doctrine, they argue, taxpayers do not have a right to object to such activity under the First Amendment. Before turning to the government speech doctrine, I begin by addressing the compelled speech cases on which plaintiffs rely.
A. WHETHER THE DHS ADVERTISEMENTS ARE IMPERMISSIBLE COMPELLED SPEECH
Cases involving “compelled speech” fall into two distinct categories. The first line of authority, involving situations where the government directly compels citizens to engage in speech activity, is plainly inapplicable here. The challenged program does not, for instance, require the tobacco companies to repeat an objectionable message out of their own mouths,
see West Virginia Bd. of Ed. v. Barnette,
*1095
Instead, plaintiffs rely on a second line of cases in which the Supreme Court has scrutinized programs that compel people to join and contribute to groups or associations whose speech they find objectionable.
See Abood v. Detroit Bd. of Educ.,
As I explain below, plaintiffs’ reliance on these cases is unwarranted. Neither the holdings nor the reasoning in these cases suggest that government’s decision to levy a targeted tax used to fund its own speech runs afoul of the First Amendment; moreover, so far as this court can determine, no lower court, state or federal, has found otherwise. This is not surprising.
Cf. National Ass’n for Advancement of Colored People v. Hunt,
1. Abood and Keller
Chronologically, the first such case is
Abood.
12
There, public school teachers in Detroit challenged the “agency shop” provisions of their collective bargaining agreement, which required every teacher represented by the teachers’ union, regardless of whether the teacher was a member, to pay a service fee equal to union dues.
This holding was dictated by two well-established principles: first, that “the freedom of an individual to associate for the purposes of advancing beliefs and ideas is protected” by the First ... Amendment,
id.
at 233,
In a concurring opinion, Justice Powell emphasized that the obligation of citizens to contribute taxes to the government, whether or not they agree with how the money is spent, is not an obligation that may be excused by the freedom of speech or association. In doing so, he highlighted the critical distinction between expressive association and government speech:
Compelled support of a private association is fundamentally different from compelled support of government. Clearly, a local school board does not need to demonstrate a compelling state interest every time it spends a taxpayer’s money in ways the taxpayer finds abhorrent. But the reason for permitting the government to compel the payment of taxes and to spend money on controversial projects is that the government is representative of the people. The same cannot be said of a union, which is representative only of one segment of the population, with certain common interests. The withholding of financial support is fully protected as speech in this context.
Id.
at 259 n. 13,
In Keller, the Court expanded on Abood’s compelled speech analysis and, more importantly for our purposes, on the distinction in Justice Powell’s footnote. The Keller Court held that compelling objecting attorneys to pay dues to the California State Bar, to the extent that such dues were used to finance political or ideological activities not germane to the state bar’s function, was invalid. The California Supreme Court decision under review, relying on the government speech doctrine, had rejected the attorneys’ First Amendment challenge because it determined that the Bar was a government agency. In ruling against the Bar, the U.S. Supreme Court did not reject the state court’s rationale. On the contrary, the Court embraced the distinction between government speech and compelled speech and merely rejected the premise that the State Bar was speaking on behalf of the government. 13 Indeed, the Court quoted the Cal *1097 ifornia court’s broad articulation of the doctrine, along with Justice Powell’s Abood concurrence, apparently with approval:
If the bar is considered a government agency, then the distinction between revenue derived from mandatory dues and revenue from other sources is immaterial. A government agency may use unrestricted revenue, whether derived from taxes, dues, fees, tolls, tuition, donation, or other sources, for any purposes within its authority.
Keller,
The High Court, however, concluded that the Bar’s primary purpose was the representation of its members, and thus it was functionally equivalent to the union in
Abood
and “a good deal different from most other entities that would be regarded in common parlance as ‘government agencies.’”
As in
Abood,
the Court found that compelled association with the Bar was permissible to the extent that it furthered the Bar’s core purposes. Just as the “agency shop” arrangement was designed to prevent free-riders (people who benefit from collective bargaining but don’t pay dues), it was appropriate that “the lawyers who derive benefit” from the Bar’s activities, “should be called upon to pay a fair share of the cost of professional involvement in this effort.”
Id.
at 11,
2. Glickman and United Foods
Plaintiffs place greater emphasis on a pair of more recent Supreme Court decisions, Glickman and United Foods, both of which discussed the application of Abood and Keller to programs that compel agricultural producers to contribute to trade groups for the purposes of generic industry advertising. Neither of these cases, however, upset the Court’s distinction between government speech and impermissible compelled speech.
In Glickman, the Court rejected a challenge by growers and processors of California tree fruits, who were required by marketing orders promulgated by the Secretary of Agriculture (pursuant to the Agricultural Marketing Agreement Act) to pay assessments to a Nectarine Administrative Committee and Peach Commodity Committee. Those committees, in turn, used the money to pay for generic industry advertising.
The Court began its inquiry by stating that
“Abood,
and the cases that follow it, did not announce a broad First Amendment right not to be compelled to provide financial support for any organization that conducts expressive activities. Rather,
Abood
merely recognized a First Amendment interest in not being compelled to contribute to an organization whose expressive activities conflict with one’s freedom of belief.”
Only four years later, in
United Foods,
the Court invalidated a similar federal assessment program imposed on mushroom growers. The Court distinguished the fruit-tree program upheld in
Glickman
by explaining that “[i]n
Glickman,
the mandated assessments for speech were ancillary to a more comprehensive program restricting marketing autonomy. Here, for all practical purposes, the advertising itself, far from being ancillary, is the principal object of the regulatory scheme.”
United Foods,
Notably, the Court again did not reach the question of government speech. Because the issue had not been addressed in the courts below, the Court declined to consider the argument. The Court suggested, however, that the government would have to establish that it exercised more than pro forma control over the speech for it “to be labeled, and sustained, as government speech.” 15
Unlike the mushroom assessment program invalidated in
United Foods,
there is no question that the DHS officials named as the defendants here exercise much more than
pro forma
authority over the challenged advertising, and plaintiffs do not suggest otherwise. The parties do not dispute that the defendants are actually responsible for the speech conveyed. Thus, there are no “difficult issues [that] would have to be addressed [before] the program [is] labeled, and sustained, as government speech.”
*1099
In
Board of Regents of the Univ. of Wisconsin v. Southworth,
In the wake of
United Foods,
federal courts addressing challenges of mandatory assessments for generic agricultural advertising programs have uniformly addressed government speech as a threshold issue before turning to the compelled speech inquiry.
See, e.g., Pelts & Skins, LLC v. Jenkins,
No.
A recent decision by the Eighth Circuit offers a concise explanation of the difference between compelled speech and government speech:
*1100 Unlike [a case] where plaintiffs challenge[] a decision concerning the content of government speech, appellees in the present case are challenging the government’s authority to compel them to support speech with which they personally disagree; such compulsion is a form of government interference with private speech. The two categories of First Amendment cases — government speech cases and compelled speech cases — are fundamentally different.
Livestock Mktg. Ass’n v. United States Dep’t of Agric.,
B. WHETHER THE DHS ADVERTISEMENTS ARE GOVERNMENT SPEECH
The determination as to whether speech is properly characterized as government speech or private speech turns entirely on “who is responsible for the speech.”
Downs v. Los Angeles Unified Sch. Dist.,
While in some cases the distinction between government speech and compelled allegiance may present “difficult issues,”
United Foods,
If the determination turned on the attribution of the speech rather than control of the message, the result here would be the same. Unlike the
Glickman-United Foods
line of cases where a discrete group is compelled to fund the “dissemination of a particular message
identified with that group,” Cal-Almond I,
C. THE GOVERNMENT SPEECH DOCTRINE
In discussing the latitude afforded to the government under the “government speech” doctrine, courts have generally spoken in terms that are remarkably open-ended. Given the purposes of the doctrine, a broad opportunity for government speech is not entirely inappropriate. I cannot acknowledge the doctrine, however, without also expressing my serious reservations about its undefined and open-ended nature. I begin by explaining why the government speech doctrine compels the conclusion that the challenged program must be upheld. I then turn to the potential limits on the doctrine in order to underscore that government speech, like government action, is not without constitutional limits. Nonetheless, I conclude that none of the present limitations on government speech support plaintiffs’ claims.
I begin this portion of the analysis by noting that the government does not enjoy protection for its speech under the First
*1102
Amendment.
See Columbia Broad. Sys., Inc. v. Democratic Nat’l Comm.,
Nonetheless, “[t]he government speech doctrine has firm roots in our system of jurisprudence.”
Livestock Marketing,
It has been said that the government speech doctrine is a necessary implication of our system of government:
Government officials are expected as a part of the democratic process to represent and to espouse the views of a majority of their constituents. With countless advocates outside of the government seeking to influence its policy, it would be ironic if those charged with making governmental decisions were not free to speak for themselves in the process. If every citizen were to have a right to insist that no one paid by public funds express a view with which he disagreed, debate over issues of great concern to the public would be limited to those in the private sector, and the process of government as we know it radically transformed.
Keller,
Here, some may think that the issue is not as problematic as government’s efforts to persuade the public might be in another context. They would take comfort from the fact that the advertisements in question derive not just from some government official’s choice, but are instead the result of an initiative. In a sense, then, the program represents the direct decision of the majority of those voting to attempt to convince smokers to forego that vice. In this court’s view, however, those facts provide cold consolation. The issue is not whether the majority of voters approve of the program, but whether in a system of limited government, such approval should be translated into a government sponsored propaganda effort. Indeed, as I have previously noted, the fact that a statute was adopted by the initiative process “provides no special insulation from review for asserted constitutional infirmity.”
Service Employees Int’l Union v. Fair Political Practices Comm.,
Certainly, the fact that the advertisements at issue are tax-supported provides no support for plaintiffs’ claims. The government’s speech is necessarily paid for by citizens, some of whom — like plaintiffs here — will disagree with its message.
See Southworth,
The tobacco companies argue that a crucial difference between this case and others in which the courts have applied the government speech doctrine is that, here, the
*1104
state is using taxes paid by a specific industry to finance advertising that condemns that very industry. Again, one may understand the plaintiffs’ discomfort, but the Supreme Court has never suggested that the government speech doctrine applies only to speech funded with general tax revenues. On the contrary, it seems clear that speech by the government is government speech, however funded. That is, given that the tax is lawfully imposed, the money collected becomes the government’s to expend as it sees fit, so long as those expenditures fall within legal limits. If this were not so, the Supreme Court’s discussion of and reference to the government speech doctrine in
Abood,
Nor does the content or subject matter of the speech at issue alter the applicability of the government speech doctrine, as it might if the speech were religious, politically partisan, defamatory or in some other way subject to legal constraints. While the precise scope of the government speech doctrine has hardly been considered, there is no doubt that modern government is called upon to deal with “innumerable subjects” on which government may be required to take a position and then explain its reasons for doing so.
National Endowment for the Arts v. Finley,
As the Supreme Court has recently observed, “tobacco use, particularly among children and adolescents, poses perhaps the single most significant threat to public health in the United States.”
Lorillard Tobacco v. Reilly,
I have noted above my discomfort as to the propriety of the government’s speech where the state has not sought to directly regulate the conduct that its speech condemns. Candor requires me to recognize that many others find no such discomfort. Indeed, government advertising to combat the public health problems caused by smoking is often cited as a paradigmatic instance of permissible government speech.
See, e.g., Finley,
Put directly, while I believe that government speech doctrine raises profound questions concerning the appropriate role of government in a liberal society, the fact that the activity being condemned — the sale, purchase and use of tobacco by adults — is a legal activity does not, under present doctrine, appear to preclude government from actively discouraging that activity. On the contrary, the Ninth Circuit, by which I am bound, has recently indicated that the government speech would be unrestricted even if the sale of cigarettes were not only legal, but constitutionally-protected:
We agree with the host of other circuits that recognize that public officials may criticize practices that they would have no constitutional ability to regulate, so long as there is no actual or threatened imposition of government power or sanction.
American Family Ass’n, Inc. v. San Francisco,
D. POTENTIAL LIMITATIONS ON GOVERNMENT SPEECH
Courts, including the Supreme Court and the Ninth Circuit, have framed the government speech doctrine in especially broad terms and have generally done so without discussing ways in which the Constitution, including constitutional provisions other than the First Amendment, may place substantive limits on the government’s power to speak. Nonetheless, “[t]he ‘government speech’ doctrine is still in its formative stages, and, as yet, it is neither extensively nor finely developed.”
Sons of Confederate Veterans, Inc. v. Commissioner of Virginia Dept. of Motor Vehicles,
First, and most obviously, the Establishment Clause prohibits government from using its speech to endorse religion.
See Board of Ed. of Westside Community Schools (Dist.66) v. Mergens,
Second, the First Amendment may place other substantive limits on the government’s use of speech. For instance, government speech that “drowns out” private speech may violate the First Amendment.
See National Ass’n for Advancement of Colored People v. Hunt,
Third, the Constitution would appear to contain a core structural principle, perhaps embodied in the Republican Form of Government Clause, that would limit the use of tax dollars to fund overtly partisan activity.
27
See NEA v. Finley,
Fourth, it is possible that the Due Process Clause and the Equal Protection Clause may provide substantive limitations on government speech programs where the legislative classifications do not bear a rational relationship to a legitimate state interest.
See Richardson v. City & County of Honolulu,
Finally, the Constitution places substantial limits on the government’s ability to use its speech to interfere with or punish constitutionally-protected activity. As a general rule, of course, the Supreme Court’s “unconstitutional conditions” jurisprudence has said that the state may exercise its power to spend in order to discourage protected activity.
See, e.g., Maher v. Roe,
A refusal to fund protected activity, without more, cannot be equated with the imposition of a ‘penalty’ on that activity. There is a basic difference between direct state interference with a protected activity and state encouragement of alternative activity consonant with legislative policy. *1110500 U.S. at 193 [,111 S.Ct. 1759 ] (quoting Harris v. McRae,448 U.S. 297 , 317 n. 19[,100 S.Ct. 2671 ,65 L.Ed.2d 784 ] (1980); Maher,432 U.S. at 475 [,97 S.Ct. 2376 ]) (internal quotation marks and citations omitted); see also American Family Ass’n,277 F.3d at 1125 (holding that government may criticize protected activity “so long as there is no actual or threatened imposition of government power or sanction”).
It is easy to imagine, however, a government speech program that goes beyond mere discouragement and crosses into constitutionally-forbidden territory. Suppose, for instance, that a state decided to levy a severely punitive per-procedure tax on doctors who perform abortions and directed that the revenue thereby derived be used to fund an aggressive public advertising campaign designed to intimidate women seeking abortions and vilify the doctors who provide them. The government speech doctrine notwithstanding, such a program would undoubtedly constitute an impermissible “penalty” on, or an instance of “direct state interference” with, protected activity. As even the Rust Court implicitly acknowledged, such a program would fail constitutional scrutiny.
Plaintiffs make no claim that the advertisements at issue fall within any of the above limitations or the government speech doctrine, and it does not require extended discussion to recognize that their reticence is entirely proper. While it is likely that as the government speech doctrine develops, other limitations will be recognized, plaintiffs do not suggest any such development. Nonetheless, it is appropriate to reiterate that government is no more free to disregard constitutional and other legal norms when it speaks than when it acts.
Y.
ARTICLE I OF THE CALIFORNIA CONSTITUTION
In addition to their First Amendment claim, plaintiffs’ bring an identical claim under the California Constitution’s free speech clause.
See
Cal. Const., Art. I, § 2. In
Pennhurst State Sch. & Hosp. v. Halderman,
VI.
SEVENTH AMENDMENT
The Seventh Amendment provides in relevant part: “In suits at common law, where the value in controversy shall exceed twenty dollars, the right of a trial by jury shall be preserved.” U.S. Const., amend. VII. Plaintiffs’ attempt to invoke this provision must fail. It is established that the right to a jury trial in civil cases
*1111
under the Seventh Amendment is not among those provisions of the Bill of Rights that have been made applicable to the states through the Fourteenth Amendment.
See Gasperini v. Center for Humanities, Inc.,
VII.
THE DUE PROCESS CLAUSE OF THE FOURTEENTH AMENDMENT
Finally, plaintiffs argue that the State’s broadcast of its ads denies them due process of law. To establish a procedural due process claim, plaintiffs must first show the deprivation of a liberty or property interest protected by the Due Process Clause.
See Bd. of Regents of State Colleges v. Roth,
Here, plaintiffs allege that the challenged ads stigmatize them and publicly disparage their reputation and character.
See
Complaint at 11, ¶ 40. Allegations of injury to reputation alone, however, cannot support a claim for violation of due process, and therefore must be accompanied by a constitutionally recognized injury.
See Paul v. Davis,
Plaintiffs’ attempts to satisfy the “plus” element of the “stigma-plus” requirement essentially by re-alleging that they have been deprived of their Seventh Amendment right to a fair trial. See Pis.’ Reply Br. at 17-18. In proceeding this way, plaintiffs’ third cause of action (due process) depends necessarily on the resolution of their fourth cause of action (the Seventh Amendment). Hence, because the Seventh Amendment claim fails as a matter of law, the due process claim likewise fails.
Although plaintiffs fail to state a claim for denial of procedural due process, if the plaintiffs truly believe that the challenged advertisements are both provably false and disparaging to their business reputations, they are free to seek relief against the State of California or its officials in a defamation action under state law. 31
VIII.
CONCLUSION
Plaintiffs state no claims upon which relief can be granted. Accordingly, the Court hereby ORDERS as follows:
1. Defendants’ motion to dismiss is GRANTED.
2. Plaintiffs’ motion for a preliminary injunction is DENIED as moot.
3. As to plaintiffs’ claim under Article I of the California Constitution, the Clerk is directed to enter judgment against the plaintiffs without prejudice.
4. As to plaintiffs’ claims under the First Amendment, the Seventh Amendment and the Due Process Clause of the Fourteenth Amendment, the Clerk is directed to enter judgment against the plaintiffs with prejudice.
5. The Clerk is directed to CLOSE the case.
IT IS SO ORDERED.
Notes
. In addition to unusually extensive and competent briefing by the parties, the court has also had the benefit of briefing by the amici American Cancer Society, American Heart Association and American Lung Association.
. Because this case is before the court on defendants' motion to dismiss, the factual summary assumes the truth of all of the allegations set forth in plaintiffs’ First Amended Complaint. I do not here consider the factual showing required for obtaining injunctive relief, since "the irreducible minimum” for such relief is "a fair chance of success on the merits.”
Benda v. Grand Lodge of Int'l Machinists,
.
See generally
Michael P. Traynor and Stanton A. Glantz,
California's Tobacco Tax Initiative: The Development and Passage of Proposition 99, 21 J. Health Pol'y & L.
543 (1996); Edith D. Balbach, et al.,
The Implementation of California’s Tobacco Tax Initiative: The Critical Role of Outsider Strategies in Protecting Proposition 99,
25
J. Health Pol’y & L.
689 (2000). The history of Proposition 99 has been one of intense legislative and legal conflict.
See, e.g., American Lung Ass’n v. Wilson,
. The legislature specifically found that:
Smoking is the single most important source of preventable disease and premature death in California.
Tobacco-related disease places a tremendous financial burden upon persons with the disease, their families, the health care delivery system, and society as a whole.
California spends five billion six hundred million dollars ($5,600,000,000) a year in direct and indirect costs on smoking-related illnesses.
The elimination of smoking is the number one weapon against four of the five leading causes of death in California.
Id. § 104350(a)(1), (7) & (8).
.While California is certainly not "smoke-free,” there is substantial evidence, including published medical studies, indicating that the Proposition 99 programs, and the media campaign in particular, have been successful in achieving their goals. See C. Fichtenberg and S. Glantz, Association of the California Tobacco Control Program with Declines in Cigarette Consumption and Mortality from Heart Disease, New England Journal of Medicine 343:24, 1772-1777 (2000); M. Siegel, Mass Media Antismoking Campaigns: A Powerful Tool for Health Promotion, Annals of Internal Medicine, 129:2, 128-132 (1998); J.P. Pierce, *1089 et al, Has the California Tobacco Control Program reduced smoking?, Journal of the American Medical Ass’n, 280:10, 893-899.
. The Tax Injunction Act, 28 U.S.C. § 1343, which creates a jurisdictional bar to cases in federal court that seek to enjoin or restrain the collection of taxes under state law, is inapplicable here because plaintiffs seek only to enjoin anti-tobacco advertising funded by the tobacco Surtax, not the collection of the Surtax itself.
See Hoohuli v. Ariyoshi,
. The Court has never declared that the Establishment Clause is the only constitutional provision that satisfies the Flast test for taxpayer standing; it has, however, never found any other constitutional provision that satisfies the test.
. I note in passing that the observation is less than perfectly persuasive. African-Americans are a distinct group, and if indeed the government is discriminating against the members of the group in its use of taxes, it is not clear why any member of the group should not have standing. See generally Gene R. Nichol, Abusing Standing: A Comment on Allen v. Wright, 133 U. Pa. L.Rev. 635, 641-49 (1985).
. While there is no doubt that corporations enjoy the protection of the First Amendment,
Hague
v.
CIO,
. While the plaintiffs object to the use of "their” tax money to fund the advertisements, they do not contend (nor could they, given the undisputed propriety of imposing the tax), *1095 that funds so raised are not the State's at the time the funds are expended.
. I have previously described this line of cases as articulating a "doctrine of unwilling allegiance.”
Prescott v. County of El Dorado,
. In their opening brief, plaintiffs propose that "[t]he compelled speech doctrine was first applied in
International Ass’n of Machinists v. Street,
. The Court acknowledged that "the Supreme Court of California is the final authority on the ‘governmental status’ of the State Bar of California for purposes of state law” but held that the state court's "determination that the respondent is a ‘government agency’ ... is not binding on us when such a determination is essential to the decision of a federal question.”
. Based on this distinction, defendants contend that, even if the speech at issue here were not government speech, the use of Tobacco Products Surtax funds for advertising would nevertheless survive constitutional scrutiny because the ads are just one part of a comprehensive regulatory scheme aimed at reducing the harmful effects of tobacco use. Because the vast majority of the funds raised by the Surtax are used to fund activities other than speech, such as health care, research and other programs, they maintain that this case would be closer to
Glickman
than
United Foods.
Assuming government speech were not involved, defendants’ argument has considerable weight, since speech appears not to be "the principal object of the regulatory scheme.”
United Foods,
. The Court explained:
The Government's failure to raise its argument in the Court of Appeals deprived respondent of the ability to address significant matters that might have been difficult points for the government. For example, although the Government asserts that the advertising is subject to approval by the Secretary of Agriculture, respondent claims that the approval is pro forma. This and other difficult issues would have to be addressed were the program to be labeled, and sustained, as government speech.533 U.S. at 417 ,121 S.Ct. 2334 .
. The Ninth Circuit authority on which plaintiffs rely does not suggest another mode of analysis. Plaintiffs rely on
Cal-Almond, Inc. v. USDA,
Nor does the Ninth Circuit’s recent decision in Delano Farms help plaintiffs. Delano Farms simply offers a straightforward application of United Foods to a grape advertising program similar to the mushroom program considered by the Supreme Court.
. In contrast, the "speakers” in the compelled allegiance cases cited by the plaintiffs were the Mushroom Council
(United Foods),
the Nectarine Administrative Committee and Peach Commodity Committee
(Glickman),
the State Bar of California
(Keller),
the Detroit Federation of Teachers
(Abood),
the California Table Grape Commission
(Delano Farms),
California Almond Board
(Cal-Almond I),
and the Cattleman’s Beef Promotion and Research Board
(United States v. Frame,
. The same statute also provides that “[n]o media campaign funded pursuant to this article shall feature in any manner the image or voice of any elected public official or candidate for elected office, or directly represent the views of any elected public official or candidate for elected office.” Cal. Health & Safety Code § 104375(e)(2). This provision in no way undermines the fact the government is directly responsible for the ads; on the contrary, it ensures that the position being advanced is that of the government itself, not of political candidates. The provision is clearly designed to ensure that tax money is not used to fund partisan political speech or electioneering.
. With near unanimity, courts that have squarely addressed the issue have found that generic agricultural assessment programs, which fund speech by non-governmental or quasi-govemmental industry groups for the collective benefit of contributing producers, are not governmental speech. The “Beef Checkoff” program appears to be the only such program on which courts have been somewhat divided.
Compare Livestock Marketing,
. Implicit in the government speech cases is a suggestion that government is just one more participant in the marketplace of ideas. Such a notion appears to this court to be naive. It ignores the force of government, as compared to private speech, and, even more importantly, the access that government speech has to v free media, much less the paid media at issue here.
. Such broad statements appear to this court to miss the nuances that should inform the question. It is one thing to recognize that the government in a democracy must make policy choices about those issues that are properly before it, and must be able to inform the public about why those choices were made. This case appears to present quite a different question. Here, the legislature has not made a decision about banning or even regulating the sale of tobacco products to adults, but rather seeks to persuade adults not to use tobacco products. In a sense, the path taken by Proposition 99 turns the democratic process on its head. Rather than citizens trying to persuade the government as to a proper course of its conduct, the government tries to dissuade the public from engaging in conduct it apparently does not have the political will to either regulate or ban. While these observations may well address questions of political philosophy rather than purely legal issues, they nonetheless appear appropriate, given that the entire government speech doctrine derives from political philosophy rather than a specific constitutional power.
. The assumption that a particular piece of government speech would suffice in the mind of the voting public to justify obtaining "newly elected officials” seems not just unrealistic, but also ignores the difficulty and vast costs of election campaigns in a state such as California.
See, e.g., California Prolife Council v. Scully,
. In
Southworth,
which concerned the constitutionality of a student activity fee that was used in part to fund student organizations engaging in political or ideological speech, the Court noted that because "[t]he University ha[d] disclaimed that the speech was its own,” the case did not present the question whether the challenge could be sustained ''under the principle that the government can speak for itself.”
Id.
at 234-35,
. One pair of commentators have asserted that:
Speech is but one means that government must have at its disposal to conduct its affairs and to accomplish its ends. Restricting the use of tobacco, for example, might be accomplished by regulatory action that makes it sale or purchase or possession illegal. It might be accomplished by taxing the disfavored behavior or production. But the restriction might also be accomplished through the provision of information so that the consumer’s choice will be knowing, or by direct persuasion in the form of government advertisements or by educational programs or even by subsidies for groups or organizations that speak out against tobacco use. These expressive forms of action are no less necessary or proper means, nor less practical, efficient, or effective *1106 Randall Bezanson and William Buss, The Many Faces of Government Speech, 86 Iowa L.Rev. 1377, 1380 (2001).
Another commentator has explained that "[tjhere are several ways of understanding government's contribution as speaker ... Government speech can serve as an avenue for the representation of citizens' higher-minded desires even when as consumers they act with perhaps lower-minded motives (the smoker who supports Surgeon General's warnings against smoking, the careless litterer who supports environmental warning campaigns, etc.) ... Government can use its speech powers to alter social norms that might be difficult for people to change through private action.” Abner S. Greene, Government Speech on Unsettled Issues, 69 Fordham L. Rev. 1667, 1683-84 (2001).
While my own views suggest that a more restricted role for government speech is both appropriate and more consistent with the role of government in a democracy, these comments demonstrate that others are more sanguine about the exercise of the government's enormous power to persuade.
. Plaintiffs open their brief by invoking Thomas Jefferson’s pronouncement that “to compel a man to furnish contributions of money for the propagation of opinions which he disbelieves, is sinful and tyrannical.” P. Kurland & R. Lemer, eds,
The Founders’ Constitution,
vol. 5 (1987) at 77. The quoted statement is taken from Jefferson's Virginia Bill for Establishing Religious Freedom, a landmark anti-establishment measure declaring that "no man shall be compelled to frequent or support any religious worship, place, or ministry whatsoever."
Id.
It is perhaps significant that the statement arose in this context, since "the Establishment Clause is a specific prohibition on forms of state intervention in religious affairs with no precise counterpart in the speech provisions.”
Lee v. Weisman,
. Here, of course, the "drown out" concern appears inapplicable. The tobacco industry spends much more than California does on advertising within the state itself, even excluding national advertising expenditures that have an impact in California. In 1999/2000, the tobacco industry spent an estimated $823 Million advertising and promoting tobacco use in California, an amount that translates into $34.01 for every man, woman and child in the state. In contrast, the state's tobacco control budget for 1999/2000 was $3.42 per capita. See DHS, California Tobacco Control Update (Nov.2002).
.Article IV, § 4 of the Constitution, which provides that "[t]he United States shall guarantee to every State in this Union a Republican Form of Government,” is generally treated as judicially unenforceable, based on a series of decisions thought to have established a
per se
rule of nonjusticiability.
See Colegrove v. Green,
. This article is a recent revival of an argument advanced in the earlier work of two scholars, both of whom argued for broad limitations on government speech. See Mark G. Yudof, When Government Speaks (1983); Robert D. Kamenshine, The First Amendment’s Implied Political Establishment Clause, 67 Cal. L.Rev. 1104 (1979). These broad arguments have gained few adherents among commentators, however, and even its chief proponents appear to have recognized that the theory is out of step with current jurisprudence. See Robert D. Kamenshine, Reflections on Coerced Expression, 34 Land & Water L.Rev. 101 (1999).
. Some have also suggested that government speech with discriminatory content would be barred by equal protection or anti-endorsement principles.
See, e.g.,
James Forman, Note,
Driving Dixie Down: Removing the Confederate Flag from the Southern State Capitols,
101
Yale. LJ.
505 (1991) (arguing that the Southern states' flying of the Confederate Flag “constitutes government endorsement of discrimination by private parties" and is therefore unconstitutional);
cf. American Family Ass’n,
. While
"Rust
did not place explicit reliance on the [government speech rationale], when interpreting the holding in later cases [the Court has] explained
Rust
on this understanding.”
Legal Servs. Corp. v. Velazquez,
. Plaintiffs’ Due Process claim has other problems. To be cognizable, the claim must allege the government's stigmatizing speech is "substantially false.”
Campanelli v. Bockrath,