Posted by Jonathan Adler:
S.C. Stimulus Fight in Federal Court:
http://volokh.com/archives/archive_2009_05_31-2009_06_06.shtml#1243857460


   Today a federal district court in South Carolina [1]will hear
   arguments from attorneys for South Carolina Mark Sanford that
   litigation over whether the state legislature can force the acceptance
   of federal stimulus money over the Governor's objection should occur
   in federal court. Two other lawsuits have already been filed against
   Governor in state court seeking to force him to accept the money.
   These suits would be put on hold in state court if the federal court
   agrees to hear the case.

   Why does Governor Sanford want this case to be heard in federal court?
   One reason is that the litigation turns on an application of federal
   law, specifically the stimulus bill. Under the stimulus, the Governor
   argues, the Governor has the authority to accept or reject funds. As
   the Governor argues in one of his briefs to the court:

     the central legal issue in these three cases is whether the General
     Assembly may use a state law to transfer Governor Sanford�s
     discretionary authority under a federal law to itself. That issue,
     which is one of federal preemption, is controlled by the United
     States Supreme Court�s decision in Lawrence County v. Lead-Deadwood
     School District, 469 U.S. 256 (1985). In Lawrence County, the
     Supreme Court held that when the federal government grants a
     specific entity of state or local government discretionary
     authority over the use of federal funds, any attempt by a state
     legislature to dictate through state law how that federal money is
     spent is preempted by federal law.

   This federal question, the Governor argues, gives the federal court
   jurisdiction to hear the case.

   Another reason for wanting this case to be in federal court is that
   the South Carolina Supreme Court may be too inclined to side with the
   state legislature, in part because it's the state legislature that
   elects them to office. [2]Article V of the South Carolina Constitution
   provides:

     The members of the Supreme Court shall be elected by a joint public
     vote of the General Assembly for a term of ten years, and shall
     continue in office until their successors shall be elected and
     qualified, and shall be classified so that the term of one of them
     shall expire every two years. In any contested election, the vote
     of each member of the General Assembly present and voting shall be
     recorded.

   There is no bar on successive terms, so each member of the Court could
   seek reelection before the state legislature again. Given what's at
   stake, it's understandable why the Governor would think the state
   Supreme Court might not be the most neutral forum. Indeed, I'm
   inclined to think the case for recusal of the state Supreme Court's
   justices is stronger here than in [3]Capterton v. A.T. Massey Coal,
   but if the state Supreme Court were to take the case, I doubt any of
   the justices would in fact recuse.

References

   1. http://www.thestate.com/local/story/808983.html
   2. http://www.scstatehouse.gov/scconstitution/a05.htm
   3. 
http://www.scotuswiki.com/index.php?title=Caperton_v._A.T._Massey_Coal_Company%2C_Inc.%2C_et_al.

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