Posted by Eugene Volokh:
Does the Proposed Auto Bailout Violate the Petition Clause of the First 
Amendment:
http://volokh.com/archives/archive_2008_12_07-2008_12_13.shtml#1228844407


   The [1]proposed bill provides, among other things,

     (g) WITHDRAWAL FROM CERTAIN ACTIONS. -- The terms of any financial
     assistance under this Act shall prohibit the eligible automobile
     manufacturer from participating in, pursuing, funding, or
     supporting in any way, any legal challenge (existing or
     contemplated) to State laws concerning greenhouse gas emission
     standards.

   My friend, Notre Dame lawprof Rick Garnett, asks: Does this violate
   the First Amendment? Here are a few tentative thoughts:

   1. The Petition Clause: To begin with, filing nonfrivolous lawsuits is
   generally protected by the First Amendment, which protects "the right
   of the people ... to petition the Government for a redress of
   grievances." This is [2]solidly established First Amendment law. I
   can't speak to any original meaning evidence on the subject (since I
   haven't investigated the matter), but the precedent is clear.

   2. Conditioning Grants on Refraining from First Amendment-Protected
   Activity: It's also well established that the government generally may
   not condition a grant of money on the speaker's refraining from the
   use of the speaker's own unsubsidized money for First
   Amendment-protected activity. That's the holding of [3]FCC v. League
   of Women Voters (1984). (League of Women Voters was a 5-4 decision,
   but one the Court has not retreated from, and has indeed cited
   favorably.) The government is free to attach certain strings (though
   not all strings) to the use of government-provided money. That's what
   justifies the decision in Rust v. Sullivan allowing the government to
   subsidize only speech about contraceptives and not speech about
   abortion, the limits on electioneering by nonprofits that benefit from
   the charitable tax exemption, and the like. But the government
   generally can't limit what subsidy recipients do with money they get
   from nongovernmental sources.

   To be sure, because money is fungible, this League of Women Voters
   principle in effect does stop the government from making sure that its
   subsidies aren't indirectly used for certain speech. If the government
   gives someone $1 million, and the speaker continues speaking using
   what is ostensibly its own money, that speech will still be much
   facilitated by the government grant -- the $1 million will free up
   money that the recipient would otherwise have had to spend, and will
   let the recipient use that freed-up money for its own speech. But the
   Court considered that argument in League of Women Voters and rejected
   it.

   3. Ban on Viewpoint Discriminatory Conditions Attached Even to
   Government-Provided Money (So Long as The Money Is Used for Private
   Speech): It's also possible that the government may not attach
   viewpoint-discriminatory conditions to the use of its own money, so
   long as the money is used for private speech -- which would here
   include petitioning the government via the court system -- rather than
   the government's own speech. That's suggested by [4]Legal Services
   Corp. v. Velazquez (another 5-4 opinion). But [5]Locke v. Davey
   concludes that this principle is limited to programs that are intended
   to "encourage a diversity of views from private speakers." Given that
   the funding program here is aimed not at encouraging a diversity of
   views, but rather at funding GM's general operation (incidentally
   including a wide range of GM litigation and speech that would normally
   happen in the course of GM's general operation, except for this one
   particular kind of litigation position on GM's part), perhaps Locke v.
   Davey governs instead of Velazquez. 

                                   * * *

   In any case, those are my tentative thoughts on the subject. Some of
   the cases I cite were controversial when decided, and may remain
   controversial now; nor do I vouch for their correctness as a matter of
   sound constitutional logic. Moreover, while there are structural
   similarities between this situation and some of the past cases, it's
   pretty clear that they were decided in contexts vastly different from
   this one, and it's not clear how far the Court would take those cases'
   logic here. Finally, it's odd that the government would be free to
   constrain GM's speech if it simply nationalized it -- or, if you
   prefer, bought all its stock -- but not if it took the less intrusive
   step of offering it various financial benefits (though that might be
   an oddity that is an inherent part of unconstitutional conditions
   doctrine in this area).

   So I don't know what should be the right result as a matter of deep
   constitutional principles, or even what is doctrinally mandated here.
   But I hope that the cases I cite above provide something of a starting
   point for analysis.

References

   1. http://static1.firedoglake.com/28/files//2008/12/bailout-proposal.pdf
   2. 
http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=us&vol=536&invol=516
   3. 
http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=us&vol=468&invol=364
   4. 
http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=us&vol=000&invol=99-603
   5. 
http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=us&vol=540&invol=712#FNopinion1.3

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