BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  HR 38
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          Date of Hearing:  August 28, 2012

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                   HR 38 (Hagman) - As Introduced:  August 16, 2012
           
          SUBJECT  :  First Amendment to the United States Constitution

           KEY ISSUES  :  

          1)Should the assembly adopt THIS resolution expressing its 
            opposition to religious intolerance and its STRONG support of 
            the first amendment'S CHERISHED FREEDOMS?

          2)Should the resolution be amended to clarify its intent and 
            more accurately reflect positions taken by California's local 
            elected officials in THE recent controversy SURROUNDING 
            STATEMENTS MADE BY THE CEO OF THE CHICK-FIL-A RESTAURANT 
            CHAIN? 

                                      SYNOPSIS
          
          This resolution seeks to declare that the California Assembly 
          condemns all forms of intolerance of religious beliefs and 
          recognizes that the First Amendment protects freedoms of speech 
          and religion from government persecution.  Although not 
          expressly referenced, it is reasonable to deduce by the timing 
          and provisions of the resolution that it is offered in response 
          to the recent national controversy surrounding the public 
          remarks by the CEO of the "Chick-Fil-A" restaurant chain 
          expressing opposition to same-sex marriage.  In response to the 
          CEO's religious-based comments, a handful of local officials 
          around the country reportedly criticized his comments and 
          suggested that their cities might not welcome any further 
          Chick-Fil-A restaurants, with one Chicago alderman suggesting 
          that he might use his position to block the opening of a 
          Chick-Fil-A restaurant in his ward.  The reactions of these few 
          elected officials have been widely criticized (by many of those 
          who support same-sex marriage as well) on the grounds that any 
          such official action would be a clear violation of the First 
          Amendment; nor have any public officials taken any actual such 
          action.  Nevertheless the author introduced this resolution 
          apparently to underscore that such government action in response 
          to the right of individuals to express their views would violate 
          cherished rights of expression.  This analysis concurs that any 








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          such official government action would indeed be a clear example 
          of "viewpoint discrimination" and would almost certainly be 
          found unconstitutional.  However, while the resolution no doubt 
          accurately reflects the Assembly's strong support for the First 
          Amendment, certain provisions of the resolution appear to 
          misrepresent the reactions of local elected officials in 
          California.  In addition, some of the resolution's provisions 
          are awkwardly worded and ambiguous.  Thus, the analysis 
          recommends for the Committee's consideration a number of 
          suggested drafting amendments to clarify the law and the 
          resolution's reference to it. 

          SUMMARY  :  Seeks to recognize the rights of the First Amendment 
          to the Constitution while promoting and protecting the freedoms 
          of speech and religion without government persecution.  
          Specifically,  this measure  :  

          1)Makes, amongst many, the following findings:

             a)   The First Amendment to the United States Constitution 
               provides, "Congress shall make no law respecting an 
               establishment of religion, or prohibiting the free exercise 
               thereof; or abridging the freedom of speech, or of the 
               press; or the right of the people peaceably to assemble, 
               and to petition the government for a redress of 
               grievances"; 

             b)   The free exercise of religion and freedom of speech are 
               guaranteed for all Americans by the First Amendment to the 
               United States Constitution; 

             c)   Recently, local elected officials throughout the state 
               and country have unjustly called for the exclusion of 
               certain businesses within their cities due only to business 
               owners exercising their rights under the First Amendment to 
               the United States Constitution; 

             d)   Tolerance by the government toward people of faith is 
               constitutionally guaranteed and necessary to allow an 
               unimpeded flow of tolerance and ideas that positively 
               impact and transform lives; 

             e)   Firmly upholding the right of conscience and cherishing 
               the exercise of religious independence and expression of 
               religious belief as American foundations animate the 








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               freedom that belongs to all, that we may live in liberty 
               and happiness.

          2)Resolves by the Assembly of the State of California, that the 
            Assembly unequivocally condemns all forms of intolerance of 
            religious beliefs and expressing those beliefs; that the 
            Assembly recognizes the rights of the First Amendment to the 
            Constitution while promoting and protecting the freedoms of 
            speech and religion without government persecution; and that 
            these rights preclude exclusion from commerce based upon the 
            freedom of beliefs.

           EXISTING LAW  prohibits any government body from making any law 
          respecting an establishment of religion, or prohibiting the free 
          exercise thereof; or abridging the freedom of speech, or of the 
          press; or the right of the people peaceably to assemble, and to 
          petition the government for a redress of grievances."  (U.S. 
          Constitution, Amendment I, as made applicable to the states by 
          Amendment XIV.) 

           FISCAL EFFECT :  As currently in print this measure is keyed 
          non-fiscal.

           COMMENTS  :  This resolution is apparently in response to the 
          highly-reported national controversy that ensued when Dan 
          Cathay, CEO of the fast-food chain Chick-Fil-A, reiterated his 
          opposition to same-sex marriage and his support for the 
          "biblical definition of the family."  Mr. Cathay, along with 
          WinShape, the company that operates Chick-Fil-A, have reportedly 
          made substantial donations to several conservative Christian 
          causes; indeed, Mr. Cathay's position on same-sex marriage was a 
          source of controversy long before his most recent public 
          comments. (See e.g. New York Times, January 29, 2011.)  Mr. 
          Cathay's statements might have passed unnoticed but for the 
          arguably ill-considered rhetorical reactions of a few high 
          profile elected officials.  For example, Chicago Mayor Rahm 
          Emanuel stated that Chick-Fil-A was "not welcome" in Chicago and 
          even hinted, along with a Chicago alderman, that the city might 
          block a Chick-Fil-A application to open a new franchise in 
          Chicago (though such formal government action has not occurred). 
           Boston Mayor Thomas Menino had a similar rhetorical flourish.  

          The idea that a city in the United States would actually deny a 
          permit to a business solely because of the political or 
          religious views of its CEO understandably drew sharp 








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          condemnation from across the entire political spectrum, 
          including from the editorial pages of each city's major 
          newspaper.  Not surprisingly, perhaps, both Emanuel and Menino 
          quickly issued statements clarifying their positions: that is, 
          while they still strongly opposed Mr. Cathay's views, they 
          assured everyone that a person's mere expression of religious or 
          political views would never be actual grounds for denying that 
          person a license or permit to operate a business.  (New York 
          Times, August 3, 2012; Boston Herald, July 26, 2012; Chicago 
          Sun-Times, July 30, 2012.)

          Thus this resolution does not address actual government action 
          to deny a business permit solely due to the expressed political 
          or religious views of its leader.  However it seeks to 
          underscore the State Assembly's commitment to protect the First 
          Amendment's rights of free expression and religious freedom. 


           "Viewpoint Discrimination is Censorship in its Purest Form  :"  As 
          this Committee well knows, First Amendment analysis of any 
          regulation of speech, whether it involves a direct ban or an 
          indirect burden, begins by considering whether the regulation is 
          "content-based" or "content-neutral."  If the regulation is 
          content-neutral, it may survive a lesser level of judiciary 
          scrutiny as a regulation only affecting the "time, place, and 
          manner" of the speech.  When the regulation is content-based, 
          the regulation will only survive if it meets a "strict scrutiny" 
          standard: that is, the state must have a "compelling interest" 
          in prohibiting the speech and the means used must be "narrowly 
          tailored" to serve that compelling interest and only that 
          interest.  (See e.g. Ward v. Rock Against Racism (1981) 491 U.S. 
          781.)  



          When considering "content-based" restrictions the courts often 
          distinguish between "subject-matter discrimination" and 
          "viewpoint discrimination."  For example, a regulation 
          prohibiting discussion of abortion would be "subject-matter 
          discrimination;" whereas a regulation prohibiting someone from 
          speaking out against abortion, for example, would be "viewpoint 
          discrimination."  While both forms of discrimination are 
          content-based, and thus subject to strict scrutiny, the courts 
          have held that "viewpoint discrimination" is an especially 
          suspect and "egregious form of content discrimination Ýand]  . . 








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          . the government must abstain from regulating speech when the 
          specific motivating ideology or the opinion or perspective of 
          the speaker is the rationale for the restriction."  (Rosenberger 
          v. Rector  & Visitors of the Univ. of Va. (1995) 515 U.S. 819, 
          829.)  As former Supreme Court Justice William Brennan put it: 
          "ÝV]iewpoint discrimination is censorship in its purest form."  
          Perry Educ. Ass'n. v. Perry Local Educators' Ass'n. (1983) 460 
          U.S. 37, 62 (Brennan, J., dissenting).



           Viewpoint Discrimination and Government Benefits and Privileges  : 
           While viewpoint discrimination is almost always prohibited, the 
          courts have recognized a very narrow, and controversial, range 
          of exceptions.  For example, in Rust v. Sullivan (1991) 500 U.S. 
          173 (Opinion by Chief Justice Rehnquist), the U.S. Supreme Court 
          upheld a federal regulation that limited the ability of doctors 
          to discuss abortion options with their patients if the doctors 
          or their facilities received federal funds and the funds were 
          provided in order to carry out a specific government policy.  
          The doctors who challenged this policy argued that it was 
          impermissible viewpoint discrimination because it prohibited 
          them from discussing abortion as a lawful option.  The Court's 
          majority opinion, however, reasoned that the policy did not 
          discriminate on the basis of viewpoint but simply reflected the 
          government's right to fund one form of activity over another - 
          i.e. favoring childbirth over abortion, and allocating funds 
          accordingly.  



          However, Rust v. Sullivan has been widely criticized, and it 
          prompted a strong dissent which observed that up to that point 
          "the Court Ýhad] never upheld viewpoint-based suppression of 
          speech simply because that suppression was a condition upon the 
          acceptance of public funds." (Rust at 207, Blackmun J., 
          dissenting.)  Many commentators suggest that the Rust case was 
          indeed a departure from the traditional line of cases - directly 
          relevant to this resolution's findings -- affirming the 
          so-called "unconstitutional conditions" doctrine - that is, the 
          idea that government may not use its power to confer, or 
          withhold, benefits or privileges in order to prohibit 
          constitutionally protected activity, if it could not have 
          otherwise prohibited that activity. (On the doctrine's relation 
          to free speech, see Cass R. Sunstein, Democracy and the Problem 








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          of Free Speech (1993); on the doctrine generally, see Kathleen 
          Sullivan, "Unconstitutional Conditions."102  Harvard Law Review 
          1423 (1989)).



          By 1972, the U.S. Supreme Court could already cite a long line 
          of cases making it clear that:



             even though a person has no 'right' to a valuable 
             government benefit and even though the government may deny 
             him the benefit for any number of reasons, there are some 
             reasons upon which the government many not rely Ýto deny a 
             government benefit].  It may not deny a benefit to a 
             person on a basis that infringes his constitutionally 
             protected interests -- especially, his interest in freedom 
             of speech. For if the government could deny a benefit to a 
             person because of his constitutionally protected speech or 
             associations, his exercise of those freedoms would in 
             effect be penalized and inhibited. This would allow the 
             government to "produce a result which Ýit] could not 
             command directly." ÝQuoting Speiser v. Randall, 357 U.S. 
             513 at 526]. Such interference with constitutional rights 
             is impermissible. (Perry v. Sindermann, 408 U.S. 593 at 
             597.) 



          Thus, if the above-noted local government officials in other 
          states who expressed their opposition to the statements of the 
          Chick-Fil-A CEO had actually carried out any of their implied 
          threats to deny business permits or licenses because of those 
          statements, Perry v. Sindermann and its progeny (with the 
          possible though unlikely exception of Rust v. Sullivan) appear 
          to make it clear that such actions would ultimately be found to 
          violate the First Amendment.  Government may not use the carrot 
          or stick of a benefit to "produce a result which Ýit] could not 
          command directly." (Id.)  To deny a zoning permit or business 
          license to Chick-Fil-A because of its CEO's statements about 
          same-sex marriage would be a clear instance of "viewpoint 
          discrimination" - as noted found to be the worst kind of 
          content-based regulation - and under the "unconstitutional 
          conditions" doctrine, such an action could not be justified on 








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          the grounds that a permit or license is a privilege and not a 
          right.  It is true that one does not have a constitutional 
          "right" to a business license; but one does have a right not to 
          be denied a privilege merely for having exercised one's right of 
          free speech.  That is why there was such broad-based 
          condemnation of the few local officials who initially made those 
          rhetorical threats. 

           In Point of Fact, No Elected Officials in California Have 
          Similarly Threatened to Exclude Chick-Fil-A Restaurants Because 
          of Its CEO's Political or Religious Beliefs  :  In its present 
          form, HR 38 asserts, without any documentation, that "local 
          elected officials throughout the state and country have unjustly 
          called for the exclusion of certain businesses within their 
          cities due only to business owners exercising their rights under 
          the First Amendment to the United States Constitution."   While 
          it is true that local elected officials in other states have 
          reportedly made such statements (though they, as noted above, 
          subsequently retracted them), the reaction in California has 
          been more tempered, and it appears to be inaccurate to assert, 
          as this resolution currently does, that "local elected officials 
          throughout the state" have called for excluding Chick-Fil-A 
          based on Mr. Cathay's comments or beliefs.  

          Only in Santa Barbara and Mountain View has the question of 
          Chick-Fil-A permits arisen, and in neither case have "elected 
          officials" reportedly actually sought to exclude Chick-Fil-A 
          because of the political and religious views of its CEO.  In 
          Mountain View, opposition to the opening of a new Chick-Fil-A 
          restaurant actually preceded the recent controversy and centered 
          on a drive-thru window that opponents claimed was inconsistent 
          with the city's plan to make the neighborhood more bicycle and 
          pedestrian friendly.  Despite these concerns, the City Council 
          approved Chick-Fil-A's application on July 11 of this year.  Two 
          groups then petitioned the City Council to reconsider and repeal 
          the approval.  Both groups seeking the repeal based its petition 
          on traffic-related issues and consistency with city plans to 
          foster bike and foot traffic, although one of the groups posted 
          an online petition that also made reference to Mr. Cathay's 
          statements on same-sex marriage.  However, the City Council has 
          made it clear that when it makes its decision on the petition 
          for appeal (which cannot be taken up until September 11 at the 
          earliest), Mr. Cathay's religious and political views will 
          simply not be a factor.  Thus, while one of the community groups 
          opposing the permit in Mountain View alluded to Mr. Cathay's 








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          beliefs as one of several reasons to deny the permit, the 
          Committee is not aware of any elected official that has actually 
          called for denying a business permit to Chick-Fil-A because of 
          Mr. Cathay's statements. (Contra Costa Times, August 2, 2012.)

          In Santa Barbara, the city's appointed Architectural Review 
          Board (ARB) approved a plan for a new Chick-Fil-A restaurant 
          about a year ago.  However, when Chick-Fil-A recently submitted 
          some minor amendments of the plan to the ARB for approval, five 
          of the ARB members abstained from voting on those amendments, 
          thereby stalling efforts to move forward.  At least one of the 
          abstaining members cited Mr. Cathay's comments, one cited the 
          company's "discriminatory" policies without offering any 
          specifics, and three other abstainers gave no reason at all.  
          However, the appointed ARB members are not "elected officials," 
          and indeed the elected city officials have unequivocally 
          condemned the ARB members who abstained.  The Mayor wrote a 
          letter affirming the city's support for same-sex marriage while 
          at the same time condemning the action (or inaction) of the ARB. 
           Three other elected officials, members of the City Council, 
          have promised an investigation to see whether ARB members had 
          violated their official duties and should be removed if they 
          did.  More significant, perhaps, the City Manager informed the 
          ARB that, despite their abstention, city staff issued an 
          administrative approval for the proposed amendments, thereby 
          nevertheless allowing the project to proceed.  (Santa Barbara 
          Independent, August 8, 2012).  

          In sum, as in Mountain View, no local elected official has 
          called for denying any licenses or permits to a Chick-Fil-A 
          restaurant because of Mr. Cathay's statements, and it would be 
          misleading for the resolution, if approved by this Committee, to 
          suggest otherwise. 

           Proposed Committee Amendments  :  It seems reasonable to assume 
          that most if not all members of this Committee (as well as of 
          the entire Assembly) wholeheartedly agree with the general 
          thrust of this resolution - which essentially affirms the 
          revered place of freedom of speech and religious tolerance in 
          our constitutional democracy.  Some of the provisions of this 
          resolution, however, are either awkwardly worded or, as noted 
          above, potentially misstate certain facts.   Therefore, the 
          Committee may wish to make the following amendments, unless the 
          author chooses to accept the following amendments as Author's 
          Amendments:








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          Suggested Amendment 1  :  As noted above, the provision at lines 
          1-2 on page 2 of the resolution erroneously asserts that "local 
          elected officials throughout the state" have called for the 
          exclusion of certain business within their jurisdiction due only 
          to the business owners exercising their First Amendment rights.  
          However, the background material provided to the Committee does 
          not provide any actual examples supporting that any local 
          elected officials in this state have actually made such calls.  
          Although not expressly identified in the resolution or the 
          author's background material, the timing and content of the 
          resolution reasonably suggests that the author appears to be 
          responding to the Chick-Fil-A controversy.  As discussed above, 
          however, the Committee is only aware of two instances in which 
          local elected officials suggested that Chick-Fil-A might be 
          denied the right to open new businesses, specifically in Chicago 
          and Boston.  And notably, in both instances the elected 
          officials issued later statements denying that they would ever 
          actually use the power of government to deny a business license 
          based solely on the business owner's political expressions or 
          religious beliefs.   Therefore, following an inquiry with the 
          author as to his openness to do so as an Author's Amendment, the 
          Committee may wish to amend the resolution as follows if the 
          author prefers not to:

                -      On page 2 delete lines 1 through 5.  
           
           Suggested Amendment 2  :  On page 2 lines 33-35 the resolution 
          currently states that the Assembly "unequivocally condemns all 
          forms of intolerance of religious beliefs and Ýall forms of] 
          expressing those beliefs."  ÝEmphasis added.]  As structured, 
          the intended meaning is not entirely clear.  Indeed, depending 
          on whether "condemns" is meant to apply only before the "and" or 
          after it as well, the statement could inadvertently be read to 
          say that the Assembly "condemns" expressing religious beliefs, 
          which is clearly not the author's intent.  In addition, the 
          current drafting of this provision could be inadvertently read 
          to suggest that the Assembly condemns "all forms" of 
          intolerance.  However, "intolerance" may sometimes of course be 
          justified.  For example, both citizens and the government have a 
          right to condemn the violent expression for or against religious 
          belief.  Moreover, if the expression of belief takes the form of 
          violating a law, through, for example, violent acts against 
          others, then government need not tolerate it and indeed should 
          not tolerate it.  For example, to use the Chick-Fil-A example, 








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          few would dispute the right of Mr. Cathay to express his belief 
          in the "biblical definition of marriage" or his belief that 
                                                     homosexuality is a sin.  However, if these religious beliefs 
          caused Mr. Cathay to discriminate against gay or lesbian 
          employees or customers in violation of state or federal 
          anti-discriminations laws, then government need not tolerate it. 
           Indeed, government has a duty to stop it.    Therefore, 
          following an inquiry with the author as to his openness to do so 
          as an Author's Amendment, the Committee may wish to make the 
          following clarifying amendment:

                -      On page 3 delete lines 34-35 and insert:

               ÝThe] Assembly unequivocally condemns religious 
               intolerance, supports the rights of all persons to express 
               their religious beliefs without fear of government 
               persecution, and acknowledges the right of all private 
               citizens to exercise their First Amendment freedom to 
               refuse to patronize any business whose views they find 
               offensive.  

           Suggested Amendment 3  :  The provision on page 2 lines 1-2 reads 
          "Resolved, That these rights preclude exclusion from commerce 
          based upon the freedom of beliefs."  This provision is awkwardly 
          constructed in a number of ways, such that the meaning is not 
          entirely clear.  To begin with, it would be helpful to identify 
          "these rights" as First Amendment rights.  Second, the meaning 
          of "exclusion from commerce" is not entirely clear, in part, 
          because it lacks a subject - i.e. who is it that may not be 
          excluded?  Presumably, given the overall context of the 
          resolution, it means that government should not deny a business 
          the right to operate based on the owner's religious beliefs.  
          Finally, "the exclusion" would not be "based on freedom of 
          beliefs;" rather, the exclusion would presumably be based upon 
          the business owner having "exercised" or "expressed" certain 
          religious beliefs.  In short, the provision apparently seeks to 
          state that the First Amendment prevent a government from denying 
          a business the right to operate solely because the business 
          owner had exercised his or her First Amendment rights.   
           Therefore, following an inquiry with the author as to his 
          openness to do so as an Author's Amendment, the Committee may 
          wish to consider the following amendment to the resolution: 

                -      On page 3 delete lines 1-2 and insert:









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          Resolved, That the rights guaranteed by the First Amendment 
          prevent our government from denying any person the right to 
          engage in or operate a business solely because that person has 
          expressed his or her political or religious beliefs. 

           Note  :  It is critical to include the word "solely" in this 
          proposed amendment since the government could conceivably deny a 
          business permit or license if a person, in addition to merely 
          expressing political or religious beliefs, took some action on 
          the basis of those beliefs that violated a generally applicable 
          law, such as a law prohibiting discrimination. 
              
          Similar Related Resolution  :  SCR 87 (Anderson), which 
          unanimously passed this Committee by a vote of 9-0, resolved 
          that the Legislature similarly affirms, among other things, that 
          tolerance by the government toward people of faith is 
          constitutionally guaranteed.  

          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file

           
          Analysis Prepared by  :  Thomas Clark / JUD. / (916) 319-2334