# Petition for Writ of Certiorari — Landreneau, Secretary for the Louisiana Department of Wildlife and Fisheries v. Pelts & Skins, LLC

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2005
- **Citation:** 544 U.S. 1058

## Text

Supreme Court, U.S.
}) FILED

No.04 22 JUN 30 2004

OFFICE OF THE CLERK

IN THE
Supreme Court of the United States

WILLIAM DWIGHT LANDRENEAU,
Secretary for the Louisiana Department
of Wildlife and Fisheries,

Petitioner,
v.

PELTS & SKINS, LLC,

Respondent.

On PETITION FOR A WRIT OF CERTIORARI TO THE |
UNITED STATES CourRT OF APPEALS
FOR THE FIFTH CIRCUIT

PETITION FOR A WRIT OF CERTIORARI

C. Berwick Duvat, I
DuvAL, FUNDERBURK, SUNDBERY,
LoveLit & WATKINS
101 Wilson Avenue
Post Office Box 3017
Houma, Louisiana 70361
(985) 876-6410

Attorneys for Petitioner

188152 ce

COUNSEL PRESS
(800) 274-3321 + (800) 359-6859

ELLE oT

IPRS WI I ne me me ap em

i
QUESTION PRESENTED

Whether La.R.S. 56: 253 and 279 violate the First
Amendment insofar as they require alligator hunters and
alligator farmers in Louisiana to pay assessments to fund
generic marketing with which they disagree.

li
LIST OF PARTIES

The plaintiff-appeliee in the Fifth Circuit Court of
Appeals was Pelts & Skins, L.L.C., a Louisiana limited
liability company. The original defendant-appellant was
James A. Jenkins, Jr., Secretary of the Louisiana Department
of Wildlife and Fisheries. William Dwight Landreneau, the
current Secretary of the Louisiana Department of Wildlife
and Fisheries, was substituted in the Court of Appeals in the
place of Mr. Jenkins on January 22, 2004.

tii

TABLE OF CONTENTS

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Constitutional and Statutory Provisions Involved . .

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Reasons for Granting the Petition ..............

I.

Generic alligator marketing by the Louisiana
Department of Wildlife and Fisheries is
government speech which is exempt from
First Amendment scrutiny ...............

A. The First Amendment permits a state to
engage in its own speech and to assess
its citizens, or a segment of its citizens,
to pay for that speech ..............

B.

iv
Contents

Louisiana’s alligator marketing program
is government speech because the
state specified the message, created a
governmental entity to disseminate it,
and vested control in a politically
accountable official ................

The Court of Appeals incorrectly found
that the speech in question is not
government speech .............+..

The question whether Louisiana’s
alligator marketing program involves
government speech warrants the Court’s
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II. Louisiana’s assessments are constitutional
under the intermediate scrutiny applicable to
regulations of commercial speech ........

III. Louisiana’s alligator marketing program is

part

of a broader regulatory scheme that

exempts this program from the First
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Conclusion

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Page

17

21

23

25

27

30

TABLE OF CITED AUTHORITIES
Page

Cases:

Abood v. Detroit Board of Education, 431 U.S. 209
CEPTS cnvcdereesccndedidartsseaiinoneee 17, 29

Board of Regents of Univ. of Wis. Sys. v. Southworth,
SEP ile BAY GED hvkccsssccbanee 17, 18, 21, 22

Board of Trustees v. Fox, 492 U.S. 469 (1989) .... 25
Central Hudson Gas & Electric Corp. v. Public
Service Comm'n, 447 U.S. 557 (1980) ........

(0ans dehae bine beenkeeeee 13, 14, 15, 25, 26

Charter v. United States Dept. of Agriculture, 230
F. Supp. 2d 1121 (D. Mont. 2002), appeal pending,

eS gd * 5 Pere oes e ree eee 4
Columbia Broadcasting Sys., Inc. v. Democratic

Nat’l Committee, 412 U.S. 94 (1973) ......... 16
Cox v. New Hampshire, 312 U.S. 569 (1941) ..... 23
Glickman v. Wileman Bros. & Elliott, Inc., 521 U.S.

SST (ESF tD vescdscbecsdhcuivnceeseeiee passim
In re R.M.J., 455 U.S. 191 (1982) .............. 26

Kadrmas v. Dickinson Public Schools, 487 U.S. 450
PD sano os tteeedueentsnteceeee 23

vi

Cited Authorities
Page

” Keller v. State Bar of California, 496 U.S. 1 (1990)
s seecevewesuacseneduale een eeee 17, 21, 29

Lebron v. National R.R. Passenger Corp., 513 U.S.
SPO CHGS) ccccccccccccceccduvccavdnvasenas 19, 20

Legal Services Corp. v. Velazquez, 531 U.S. 533
CROGED oc cccccccddcsecctsesectsaustduuanen 16, 18

Livestock Marketing Ass'n v. U.S. Dept. of
Agriculture, 335 F.3d 711 (8®* Cir. 2003), cert.
granted in part sub nom. Veneman v. Livestock
Marketing Ass'n (May 24, 2004) (No. 03-1164)

WETTTTITITITTTTT ITT passim
Lorillard Tobacco Co. v. Reilly, 533 U.S. 525 (2001)
0 ncccecccenceceseeeeeeseusaeussueeneael 26
Michigan Pork Producers Ass'n v. Veneman, 348 F.3d
157 (6* Cir. 2003), petition for cert. filed sub
nom. Michigan Pork Producers Ass'n Vv.
Campaign for Family Farms (Jan. 20, 2004)
Gin. GROG) oc cccccccescccccccantacnces passim
National Endowment for the Arts v. Finley, 524 U.S.
SED CISSED cs ccvcccccsedebucsescasueuseave: 16
Rosenberger v. Rector and Visitors of the Univ. of
Pee., SIS UB. SID CUGSS) .nccccccccccccccess 4, 16

Rust v. Sullivan, 500 U.S. 173 (1991) ........... 16

vil

Cited Authorities
Page

Santa Fe Indep. Sch. Dist. v. Doe, 530 U.S. 290
Ge 2 060 00b566esnscdnsndedsabdendseaves 18

United States v. Frame, 885 F.2d 1119 (3* Cir. 1989),
cert. denied, 493 U.S. 1094 (1990) ........... 5,24

United States v. Sperry Corp., 493 U.S. 52 (1989)... 22

United States v. United Foods, Inc., 533 U.S. 405

GOED oc dcseccceprivdcccéensneedaqececel passim
United States Postal Serv. v. Council of Greenburgh

Civic Ass ‘ns, 453 U.S. 114 (1981) ............ 23
West Va. Bd. of Education v. Barnette, 319 U.S. 624

GREED wbdccennsccsccccpasesesabenuancaens 28
Wooley v. Maynard, 430 U.S. 705 (1977) ........ 28
Codes:
7 Ge NS ONO, cneuscscnssccscussanases 27
F ees ee NE 0. ckcccsnnsvcsudnsuceesa 29
SP Wee SEM ccducsccanscacvensieceues l
SOCBPR. $27 ....cccccccccccccccccccccccces 6
EA, COR, GOGO, DUES sivdcccccsccscsuctuvtacs 5

vill

Cited Authorities

Page
Constitution:
A MD cncceccctcccnececessess passim
Statutes:
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ION cus tadawssusvenenckaseneks 6
SPU SEED cccccececnacscscccensas 7
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SUED cbancddaeesacvacs ddivanucnnass 5
REED Accdtcnaceddctcsrcncasdsvenses 8
SE bducnedocduetawudee stcauaseses passim
RR SEE a wdcdbdosencaccaabeckéstaceees 7
SE SE das dbntoccsccdessovecnpasababs 8
EE MED axoswbennecdsceuansanvasa 1, 10, 19, 20
EE cbdnaceenccedsccddudensieasas passim
Miscellaneous:

28 La. Register 1874.20... 00.0... cceeeeeeeeee 10, 19

ix
Cited Authorities

Page
Treaties:
Convention of International Trade in Endangered

Species of Wild Fauna and Flora, 27 U.S.T. 1087,
PY 60 bsp knccdaddseocnecesess 6

x

TABLE OFAPPENDICES

Appendix A — Opinion Of The United States Court
Of Appeals For The Fifth Circuit Filed April 2,
BOO 0 Bika be ia eaneseeess hee

Appendix B — Findings Of Fact And Conclusions
Of Law Of The United States District Court For
The Middle District Of Louisiana Dated And Filed
pS. Pere er errr irs ree er re

Appendix C — Relevant Statutes ...............

l

William Dwight Landreneau, Secretary of the Louisiana
Department of Wildlife and Fisheries, respectfully petitions for
a writ of certiorari to review the judgment of the United States
Court of Appeals for the Fifth Circuit in this case.

OPINIONS BELOW

The opinion of the United States Court of Appeals for the
Fifth Circuit (App. A at 1a-23a) is reported at Pelts & Skins,
LLC v. Landreneau, 365 F.3d 423 (5" Cir. 2004). The opinion
of the district court (App. B at 24a-49a) is reported at Pelts &
Skins, L.L.C. v. Jenkins, 259 F. Supp. 2d 482 (M.D. La. 2003).

STATEMENT OF JURISDICTION

This Court’s jurisdiction is invoked under 28 U.S.C.
§ 1254(1). The judgment of the Fifth Circuit was entered April
2, 2004. Neither party requested rehearing in the Court of
Appeals.

CONSTITUTIONAL AND STATUTORY
PROVISIONS INVOLVED

1. The First Amendment to the United States Constitution
provides in pertinent part:

“Congress shall make no law . . . abridging the freedom of
speech.”

2. La.R.S. 56:253 is reproduced in pertinent part at
App. C at 50a.

3. La.R.S. 56:266 is reproduced in pertinent part at
App. C at 50a-52a.

4. La.R.S. 56:279 is reproduced in pertinent part at
App. C at 52a-56a.

2

STATEMENT OF THE CASE

This case presents a First Amendment challenge to the
mandatory assessment by the Louisiana Department of Wildlife
and Fisheries (the Department) of certain fees on alligator
farmers and alligator hunters to fund generic marketing, research,
and industry and consumer information about Louisiana
alligators. The Fifth Circuit held in this case that the assessment
violated the First Amendment rights of a Louisiana alligator
farming operation that objected to funding part of the cost of
such marketing.

On two prior occasions, the Court has granted review of
decisions declaring unconstitutional assessments under similar
regulatory programs. In Glickman vy. Wileman Bros. & Elliott,
Inc., 521 U.S. 457, 477 (1997), the Court held that mandatory
assessments to fund generic advertising under a marketing
program for California tree fruit survived First Amendment
scrutiny as “a species of economic regulation.” Conversely, in
United States v. United Foods, Inc., 533 U.S. 405 (2001), this

——ourt (over the dissents of Justices O’Connor, Ginsburg, and
Breyer) held that mandatory assessments to fund generic
advertising of mushrooms failed to pass muster under the First
Amendment.

Both the Eighth Circuit and the Sixth Circuit recently upheld
First Amendment challenges to generic marketing programs in
Livestock Marketing Ass’n v. U.S. Dept. of Agriculture, 335 F.3d
711 (8" Cir. 2003), cert. granted in part sub nom. Veneman v.
Livestock Marketing Ass'n, (May 24, 2004) (No. 03-1164), and
in Michigan Pork Producers Ass’n v. Veneman, 348 F.3d 157
(6" Cir. 2003), petition for cert. filed sub nom. Michigan Pork
Producers Ass'n, Inc. v. Campaign for Family Farms (Jan. 20,
2004) (No. 03-1043). The Eighth Circuit case, Livestock
Marketing, involved assessments for generic marketing of beef;

3

the Sixth Circuit case, Michigan Pork, challenged assessments
for generic marketing of pork.

On May 24, 2004, this Court granted the petition for a writ
of certiorari in the Livestock Marketing case, and in the case
consolidated with it in the Eighth Circuit, Nebraska Cattlemen,
Inc. v. Livestock Marketing Ass'n, 335 F.3d 711 (8" Cir. 2003),
limited to the following issues:

From the Livestock Marketing case:

Whether the Beef Promotion and Research Act of
1985 (Beef Act), 7 U.S.C. 2901 et seg., and the
implementing Beef Promotion and Research Order
(Beef Order), 7 C.F.R. Part 1260, violate the First
Amendment insofar as they require cattle producers
to pay assessments to fund generic advertising with
which they disagree.

From the Nebraska Cattlemen case:

Whether the Eighth Circuit erred in holding that
the Beef Promotion and Research Act of 1985
(“Beef Act”), 7 U.S.C. §§ 2901 et seq., and
regulations promulgated thereunder — which
impose assessments on beef producers and importers
to fund research, education, and promotional
activities carried out by special administrative bodies
created by Congress for the express purpose of
furthering important governmental objectives under
the direct supervision and control of the Secretary
of Agriculture — are “unconstitutional and
unenforceable.”

The petition in the Michigan Pork case, filed January 20,
2004, is pending as of the time of filing this petition.

4

In this case, the Fifth Circuit decided the same constitutional
issue addressed by the Eighth Circuit in Livestock Marketing
and by the Sixth Circuit in Michigan Pork.' The government
defendant in each of these cases raised as a defense the
government speech doctrine, an issue that the Court has never
decided in the context of compelled subsidies for generic
marketing. (In the United Foods case, this Court specifically
declined to consider the issue because the argument had not
been raised below. 533 U.S. at 416-17.) The government speech
doctrine is based on the principle that “when [the government]
is the speaker or when it enlists private entities to convey its
own message ... it is entitled to say what it wishes.”
Rosenberger v. Rector & Visitors of Univ. of Va., 515 U.S. 819,
833 (1995). Although each of the circuit courts in these three
cases upheld the First Amendment challenge to the government
program involved, the decisions represent a conflict within the
circuit courts on the government speech issue in the context of
compelled subsidy cases.

The Eighth Circuit held categorically that the government
speech doctrine does not apply to compelled subsidy cases.
335 F.3d at 720. In contrast, the Fifth Circuit held in this case
that “the government speech doctrine is at least potentially
applicable to this general category of cases.” 365 F.3d at 429
n.13, App. A at 12a. The Eighth Circuit’s decision is in tension

1. The same constitutional issue is also pending before the Ninth
Circuit in an appeal from a district court’s decision finding that the Beef
Act’s generic marketing program constitutes government speech and is
therefore exempt from First Amendment scrutiny. Charter v. United
States Dept. of Agriculture, 230 F. Supp. 2d 1121 (D. Mon. 2002).
Following oral argument and submission of the case in the Ninth
Circuit, that court vacated the submission on May 27, 2004, pending
this Court’s resolution of the identica! issue posed in the Livestock
Marketing case, which will be heard by this Court next term.
9" Cir. docket sheet for No. 02-36140, 5/27/04 entry.

5

with not only the Fifth Circuit’s decision in this case, but with
both the Sixth Circuit’s decision in the Michigan Pork case and
the Third Circuit’s less-recent decision in United States v. Frame,
885 F.2d 1119 (3d Cir. 1989), cert. denied, 493 U.S. 1094 (1990).
In both the Michigan Pork and Frame cases, the circuit courts
assumed that, if the compelled subsidy program qualified as
government speech, producers would have no First Amendment
right to avoid assessments for those programs.

Statutory and Regulatory Background. Louisiana has
one of the largest remaining wetland areas in America, with
over four million acres of marsh, swamp, and other wetland
habitat for alligators and other animals. Over 1.5 million
alligators live in these four million acres. Although much of
this land is privately owned, the wild alligators who inhabit
these wetlands belong to the state, La. Civ. Code art. 3413, and
are under the jurisdiction of the Department. La.R.S. 56:3.A.
But these fearsome nongame quadrupeds have not always
roamed Louisiana’s wetlands in such vast numbers.

At the turn of the last century, the state was home to almost
the same number of wild alligators as today. But over the
following decades, the number of wild alligators in the state
declined to a point near extinction. Beginning in the 1960s, both
the state and federal governments began taking steps to protect
endangered species. Due to the coordinated federal and state
regulatory scheme — now enforced worldwide through a treaty
signed by over 160 nations — Louisiana’s alligator population
has not only come back from the brink of extinction, it has grown
large enough to support a statewide industry with an annual
economic impact of more than $54 million.

But the state’s alligator industry has been threatened by
market dynamics not unrelated to the rebound of the alligator
population, including the worldwide animal rights movement.

6

As part ofits comprehensive regulation of the alligator industry,
the Louisiana legislature has addressed this threat and other
market issues through education and marketing programs. It is
the funding of these marketing programs that is at issue in this
case.

Congress’ first step in the conservation effort came with
passage of the Endangered Species Preservation Act of 1966,
P.L. 89-669, 80 Stat. 926. That law provided for a listing of
certain native animal species as endangered and established
limited means for protecting listed species.” The following year,
the Alligator Mississippiensis or “American Alligator” was
placed on the endangered species list. 50 C.F.R. § 17, App. D
(1971). Louisiana’s 1.5 million alligators are members of the
American Alligator species.

In 1973, the United States, along with other countries,
signed the Convention of International Trade in Endangered
Species of Wild Fauna and Flora (CITES), Mar. 3, 1973, 27
U'S.T. 1087, T.I1.A.S. No. 8249. The treaty, which has been
signed by over 160 countries in the three decades since its
enactment, restricts international commerce in wild animals and
plants that are believed to be actually or potentially harmed by
trade.

The treaty classifies covered species in three categories
according to their relative need for protection, and placed the
American Alligator in the middle category with other species
that are not necessarily now threatened with extinction but may
become so unless trade is Closely controlled. CITES, Art. II.
The United States implemented CITES through the Endangered
Species Act, 16 U.S.C. § 1537a.

2. The Endangered Species Act of 1973, 16 U.S.C. § 1531 et seq.,
superceded both the Endangered Species Preservation Act of 1966 and
the Endangered Species Conservation Act of 1969.

7

The Endangered Species Act makes it unlawful for any
person subject to U.S. jurisdiction to engage in any trade contrary
to CITES, or to possess any specimens traded contrary to the
treaty. 16 U.S.C. § 1538(c)(1).

Louisiana’s efforts to rebuild its alligator population began
in earnest in the 1960s through research, management and law
enforcement. In 1962, the state closed its alligator hunting season
and began a concentrated effort to manage this valuable resource.
After a ten-year hiatus, Louisiana reestablished its annual
alligator harvest on a limited basis. In 1970, the Legislature
gave the Department full authority to regulate alligators in the
state. In 1972, Louisiana initiated its first program aimed at
managing the wild alligator population based a sustained-yield
harvest. The first hunt, authorized in 1972, was confined to one
parish in southwestern Louisiana. The hunt area was gradually
expanded until 1981, when the season was opened statewide.

Between 1972 and 2001, Louisiana’s wild alligator harvest
produced almost 500,000 wild skins with an estimated value of
$168 million. This renaissance of the alligator population and
industry was made possible by state and federal regulation of
the industry. In 1987, the American Alligator was removed from
the Endangered Species List due to recovery.

The Department oversees two alligator programs: the first
based on a wild harvest strategy, the other based on farming of
captive adult alligators and alligator eggs collected from the
wild. The state regulates almost every aspect of these two

programs.

Louisiana’s hunting season for wild alligators takes place
in September and lasts roughly a month. See La.R.S. 56:259.A;
La. Admin. Code Title 76, Ch. 7, § 701 G.1. Ahunter who wishes
to take part in the wild alligator harvest season must obtain a

8

license from the Department. La.R.S. 56:251A(2)(a)(i). If the
license is approved, the Department issues the hunter a license
and one or more numbered tags. Each tag authorizes the hunter
to trap one wild alligator. All unused tags must be returned to
the Department within 15 days after the close of the season.
Id., La. Admin. Code Title 76, Ch.7, § 701.F.2.c. Through this
tagging program, the Department monitors and controls the exact
number of alligators killed in the wild each year, i.e., the supply
of alligator skins on the market.

Once a licensed hunter captures an alligator, the state’s
tracking system for wild alligators kicks in. At this point, the
hunter dispatches his quarry and either skins his catch that day
or, more typically, sells it directly to a dealer. Once an alligator
has been dispatched, the hunter iaust insert one of his tags into
the last six inches of the animal’s tail. La. Admin. Code Title
76, Ch.7, § 701.F.5S.

As with alligator hunting, the alligator farming industry is
heavily regulated. The Department’s tracking system for farmed
alligators begins with the harvest of eggs from the wild and
continues through the time these eggs are hatched, the baby
alligators are raised, slaughtered, and skinned, and the skins are
shipped out of state. An alligator farmer who wishes to collect
alligator eggs on private property must also obtain a license
from the Department. La.R.S. 56:262B.

The egg collection license allows the farmer to collect his
quota of alligator eggs, then incubate, hatch and raise them at
his farm. At the end of his second year of egg collection, the
farmer must return 14 percent of the hatch, each averaging at
least 4' in length, to the original property. The returned animals
are closely monitored by the Department, which measures each
animal before it is returned, records its sex, numbers and tags
it, and notches one of the ridges on its back for future reference.

9

When alligators skins are ready for shipment out of state,
the dealer provides a shipping manifest to the Department.
At this point the dealer — or in this case the respondent — pays
the “tag fee” of $2 per skin. La.R.S. 56:253(C)(2)(a). These tag
fees are credited to the Louisiana Alligator Resource Fund which
pays for numerous programs, including generic marketing.

Louisiana’s regulatory scheme not only resuscitated a
species which had by 1962 become endangered by over-
harvesting, but also facilitated the creation of a strong, stable
market for this valuable resource. From 1972 through 2001,
Louisiana’s harvest of wild and farm alligators produced almost
2.2 million wild skins (over 2,000 miles of leather) with an
estimated value of $317.6 million. Ninety percent of the farm
harvest has occurred since 1990. But with the state’s efforts to
save and maintain its alligator population and develop an
industry came other forces: the worldwide animal rights
movement, along with markets that changed, but did not expand.

A relatively small percentage of products made from
Louisiana alligator skins are consumed in the United States.
Many potential buyers in this country still believe that alligators
are endangered, and know nothing of the quality of the leather.
Therefore, the Department determined that market enhancement
programs were needed to increase demand and support stronger
prices.

In 1991, the Louisiana Legislature created the Alligator
Resource Fund. La.R.S. 56:279, App. C at 52a-53a. In the statute
creating this fund, the Legislature recognized that the state’s
alligator industry is a vital aspect of its economic base, and that
there is a need to educate the public concerning alligator hunting
as a sound wildlife management practice and to support the
industry with a comprehensive research and development

10

program. A portion of all Department revenues received from
tag fees is credited to the Resource Fund. These monies may be
spent only on authorized programs, including salaries within
the Department’s fur and refuge division; law enforcement
activities associated with the alligator farm industry; marketing
programs; research on alligator conservation and techniques for
enhancing the industry; and management of the alligator
population. La.R.S. 56:279B, App. C at 53a.

The Legislature also created a governmental entity — the
Louisiana Fur and Alligator Advisory Council (Advisory
Council) — within the Department. The Advisory Council is
responsible for reviewing and approving recommended
procedures and programs to be funded by the Alligator Resource
Fund and another fund. The Secretary (or his designee) is an
ex officio member of the Advisory Council and “shall be present
at all official meetings.” La.R.S. 56:266C, App. C at Sla.
Moreover, one member of the Council is appointed by the
speaker of the Louisiana House of Representatives and another
by the president of the Louisiana Senate. The remaining nine
members of the Council are appointed by the Secretary, and
represent a cross section of trappers, alligator hunters, coastal
landowners and alligator farmers. The Council reviews and
approves programs and services implemented by the Department
and recommends expenditures from the two funds to ensure
that funds are dedicated solely to projects that further goals
identified by the Legislature. The Department, not the Council,
creates and controls its own budget.

The Legislature sets the tag fees which help fund the
Alligator Resource Fund. R.S. 56:253, App. C at 50a. Such fees
are not fixed or controlled by the Advisory Council, but are
under the Department’s administrative control. See, e.g., 28 La.
Register 1874. The Secretary exercises veto power over the
Council’s recommendations regarding expenditures from the

1]

Fund, and the Department, not the Council, is responsible for
annual reporting to the Legislature on the status and uses of
fund revenues. La.R.S. 56:279E.

The legislative goals of public education, marketing, and
resource management are interrelated and essential parts of
Louisiana’s comprehensive program directed at conservation
and sustainable use of this valuable state resource. In the period
since implementation of these measures, the Louisiana alligator
industry has enjoyed substantial growth. The alligator farming
industry has grown from only 30 farmers in 1987 to 66 in 2000,
with over 500,000 animals in captivity.

Proceedings in the District Court. On April 16, 2002,
Pelts & Skins, LLC filed this suit in the Middle District of
Louisiana for injunctive relief against James A. Jenkins, Jr., then
Secretary of the Louisiana Department of Wildlife and Fisheries.
Plaintiff challenged as violative of the First Amendment
expenditures for generic marketing from two separate funds
controlled by the Department, one of which is the Alligator
Resource Fund.’ Plaintiff moved for a preliminary injunction,
and the parties agreed that trial of the preliminary injunction
would be combined with trial on the merits. Plaintiff moved for
summary judgment, the Secretary opposed the motion, and the
parties agreed to submission of the case on the record. District
Judge John Parker heard oral argument on plaintiff’s summary
judgment motion, the parties filed exhibits into the record
without objections, and the case was submitted on the merits
without any live testimony. Thereafter, the district judge issued
his Findings of Fact and Conclusions of Law, App. B at 25a-

3. Respondent also challenged generic marketing expenditures
from the Louisiana Fur and Alligator Public Education and Marketing
Fund. The Fifth Circuit held that respondent lacked standing to challenge
expenditures from that fund. 365 F.3d at 428, App. A at 9a. That portion
of the court of appeals’s holding is not at issue in this petition.

12

49a, directing that a permanent injunction issue against the
Secretary prohibiting expenditures from the two funds “for the
purpose of generic alligator marketing.” Judge Parker entered
judgment May 9, 2003, which included a permanent injunction
prohibiting state officials from “approving, authorizing or
expending any revenue from the ... Louisiana Alligator
Resource Fund for the purpose of generic alligator marketing.”
Judgment, CA rec.exc. 3.

The district court found that the alligator marketing program
was not government speech, citing three factors: (1) the
advertising is funded not through general tax dollars, but through
fees on what could be considered “a narrow segment of society
with common interests and one not representative of the general
population, App. B at 39a; (2) the lack of evidence that the
Advisory Council “was created to participate in the state’s
general government, id.; and (3) the “close nexus between the
alligator producers and the message funded.” Jd. The district
court also held that the marketing program “amounts to
unconstitutional compelled commercial speech.” App. B at 40a.

The Fifth Circuit’s Decision. On April 2, 2004, the Fifth
Circuit issued its decision, App. A at 1a-23a, affirming the district
court’s injunction insofar as it enjoined use of the Alligator
Resource Fund for generic alligator marketing. The circuit court
also vacated and remanded (on standing grounds) the injunction
insofar as it barred state officials from using the Louisiana Fur
and Alligator Public Education and Marketing Fund to support
generical alligator marketing.

The Fifth Circuit held that “the government speech doctrine
is at least potentially applicable to this general category of cases,”
365 F.3d at 429 n.13, App. A at 12a, but found that “the generic
marketing at issue is not government speech, but government
facilitation of the private speech of fur and alligator harvesters.”

13

365 F.3d at 429, App. A at 12a. The Fifth Circuit’s factual
findings on this point are not supported by the record.

On the issue of whether the program is constitutional under
the standard articulated by this Court in Central Hudson Gas &
Electric Corp. v. Public Service Comm'n, 447 U.S. 557 (1980),
for regulation of commercial speech, the Fifth Circuit expressed
“doubt” that the Central Hudson test applies. 365 F.3d at 434
n.21, App. A at 23a, but added that, in any event, Louisiana’s
program “burdens First Amendment speech more than necessary.
Louisiana does not need to compel alligator harvesters to support
generic marketing, but could simply fund generic marketing
from its general tax revenues.” Jd.

REASONS FOR GRANTING THE PETITION

The Fifth Circuit has held unconstitutional provisions of
Louisiana law designed to protect one of the state’s once-
endangered natural resources — the American Alligator — and
the multi-million dollar industry that has grown up around it.
That holding is incorrect, for the Louisiana law is not one
“abridging the freedom of speech” under the First Amendment.
The law promotes speech — by the government — through
modest assessments on persons who voluntarily participate in
the alligator industry.

Respondent breeds and sells the very product that Louisiana
has chosen to promote in the law in question, and the law does
not constrain respondent from communicating its own messages.
Therefore, whether analyzed under the First Amendment
standard applicable to programs of government speech, the
standard applicable to regulations of commercial speech, or the
two in combination, Louisiana’s assessment does not abridge
respondent’s freedom of speech. Indeed, in the context of
sustaining similar statutes against First Amendment challenge,

vd

the government speech and intermediate scrutiny analysis are
mutually reinforcing.

This Court should grant this petition in order to address the
applicability to compelled subsidy cases of these two legal
doctrines: the government speech doctrine and the intermediate
First Amendment scrutiny under the standard articulated by this
Court in Central Hudson.

1. The decision of the Fifth Circuit in this case on the
applicability of the government speech doctrine to compelled
subsidy cases conflicts with the Eighth Circuit’s Livestock
Marketing decision, which this Court has agreed to hear.
The Fifth Circuit outlined the conflicting decisions of the two
circuit courts as follows:

The Eighth Circuit declared the government speech
doctrine categorically inapplicable to compelled
subsidy cases. See Livestock Mktg. Ass’n v. U.S.
Dep t of Agric., 335 F.3d 711, 720 (8" Cir. 2003),
petition for cert. filed sub. nom. Veneman v. Livestock
Mktg. Ass'n, 72 U.S.L.W. 3539 (U.S. Feb. 13, 2004)
(No. 03-1164). The Supreme Court’s treatment of
compelled subsidy challenges convinces us that the
government speech doctrine is at least potentially
applicable to this general category of cases.

365 F.3d at 429 n.13, App. A at 12a

2. The Court has not decided how or if the Central Hudson
test applies to compelled subsidy cases, see United Foods, 533
U.S. at 410, and the circuit courts are split on the issue.
The Sixth Circuit in the Michigan Pork case refused to apply
the test to a compelled subsidy for a pork marketing program;
the Eighth Circuit in Livestock Marketing applied a version of
the Central Hudson test that it adapted to “the particular

15

i circumstances” of that case. 335 F.3d at 723. In this case, the
Fifth Circuit expressed “doubt that the Central Hudson test
applies, 365 F.3d at 434 n.21, App. A at 23a, but then chose “to
leave this question open because even were we to apply the
Central Hudson test, Louisiana’s alligator marketing program
would not pass it.”’ Jd.

3. In light of the conflicts and inconsistences among the
circuits on both of these issues, this Court should either grant
the petition in this case and hear it on the merits along with
Livestock Marketing/Nebraska Cattlemen, or withhold ruling
on the petition until the Court decides the merits of the those
two consolidated cases. If the issue before the Court in Livestock
Marketing/Nebraska Cattlemen is resolved in favor of those
petitioners, the Court should grant this petition, vacate the Fifth
Circuit’s decision insofar as it affirmed the district court’s
injunction, and remand the Fifth Circuit’s decision for
reconsideration in light of Livestock Marketing/Nebraska
Cattlemen.

I. Generic Alligator Marketing By The Louisiana
Department Of Wildlife And Fisheries Is Government
Speech Which Is Exempt From First Amen#éient
Scrutiny.

Sections 253 and 279 of Title 56 of the Louisiana Revised
Statutes establishes a program of government speech. The
genciic marketing of alligators under that program serves public
purposes identified by the state, is confined to a message
specified by the state, and is disseminated by a governmental
entity created by the state and subject to the supervision of the
Secretary of the Department. The First Amendment does not
constrain a state government’s ability to engage in its own
speech, whether funded by general tax revenues or by “tag fees”
assessed against those who benefit most from the speech and
are members of an industry that the state has chosen to protect.

16

A. The First Amendment Permits A State to Engage
In Its Own Speech And To Assess Its Citizens, Or A
Segment Of Its Citizens, To Pay For That Speech.

The First Amendment limits the government’s interference
with private speech rather than the government’s own speech.
Therefore, “when the State is the speaker, it may make content-
based choices ... [and] it is entitled to say what it wishes.”
Rosenberger v. Rector and Visitors of Univ. of Va., 515 U.S.
819, 833 (1995); see Columbia Broad. Sys., Inc. v. Democratic
Nat’l Comm., 412 U.S. 94, 139 n.7 (1973) (Stewart, J.,
concurring) (“Government is not restrained by the First
Amendment from controlling its own expression.”).

The First Amendment does not apply to government speech
when the government is itself the speaker, as well as when the
government “disburses public funds to private entities to convey
a governmental message.” Rosenberger, 515 U.S. at 833.
In Rust v. Sullivan, 500 U.S. 173, 192-93 (1991), for instance,
this Court upheld regulations prohibiting private physicians from
providing abortion counseling as part of family planning
counseling financed by federal funds. Although “Rust did not
place explicit reliance on the rationale that the counseling
activities of the doctors under T’*!e X amounted to governmental
speech,” subsequent cases “have explained Rust on this
understanding.” Legal Services Corp. v. Velazquez, 531 U.S.
533, 541 (2001); see National Endowment for the Arts v. Finley,
524 U.S. 569, 598 (1998) (Scalia, J., concurring) (It “makes
not a bit of difference, insofar as either common sense or the
Constitution is concerned, whether [government] officials
further their (and, in a democracy, our) favored point of view
by achieving it directly . . . or by advocating it officially . . . or
by giving money to others who achieve or advocate it.”’).

17

Government speech necessarily is paid for by citizens, some
of whom may disagree with its message. But such disagreement
provides no basis under the First Amendment to silence the
government or to excuse objecting citizens from having to share
the costs of its speech. This Court has recognized that the
government, “as a general rule, may support valid programs
and policies by taxes or other exactions binding on protesting
parties,” even when the government will spend the funds so
raised “for speech and other expression to advocate and defend
its own policies.” Board of Regents of Univ. Of Wis. Sys. v.
Southworth, 529 U.S. 217, 229 (2000). Indeed, 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 v. State Bar of California, 496 U.S. 1, 12-13 (1990);
cf. Abood v. Detroit Bd. of Education, 431 U.S. 209, 259 n.13
(1977) (Powell, Jr., concurring in the judgment) (“Compelled
support of a private association is fundamentally different from
compelled support of government.”).

B. Louisiana’s Alligator Marketing Program Is
Government Speech Because The State Specified
The Message, Created A Governmental Entity To
Disseminate It, And Vested Control In A Politically
Accountable Official.

The Court has not defined the precise contours of the
government speech doctrine. But the Court’s decisions suggest
that, when the government establishes a program to convey a
specific message, in order to advance a public purpose and

18

retains ultimate editorial control over the message, the program
is one of government speech. See Santa Fe Indep. Sch. Dist. v.
Doe, 530 U.S. 290, 303 (2000) (holding that an invocation
delivered at school events by a student selected in a school
election was government speech under the Establishment Clause
because the invocation was “subject to particular regulations
that confine the content and topic of the student’s message”);
Velazquez, 531 U.S. at 542 (contrasting a program designed
“to promote a governmental message” with one designed
“to facilitate private speech” on an array of topics); Southworth,
529 U.S. at 229 (suggesting that, if a state university established
a program “to advance a particular message” of its own and
remained “responsible for its content,” the program would
involve government speech). And, although the government may
choose to convey a message through private parties, it may be
particularly evident that a program involves government speech
when the speaker is itself a government entity. Applying those
principles, Louisiana’s alligator marketing program is
government speech.

First, in 1991, the Legislature created the Alligator Resource
Fund, La.R.S. 279A, App. C at 52a-53a, and specified that the
Fund’s goals were to finance specific items related to protection
and enhancement of the alligator population and industry,
including salaries within the Department, law enforcement
activities, marketing programs, and research on alligator
conservation and management. La.R.S. 56:279B, App. C at 53a-
54a.

Second, the Legislature created a governmental entity —
the Advisory Council — within the Department. The Advisory
Council is responsible for reviewing and approving
recommended procedures and programs to be funded in part by
the Alligator Resource Fund. The Secretary (or his designee) is
an ex officio member of the Advisory Council and is required

19

by law to attend all official meetings. La.R.S. 56:266C, App. C
at 51a. Moreover, all eleven members of the Council are
appointed and may be removed by state officials (the Secretary
and the two elected leaders of Louisiana’s Legislature). The
Council reviews and approves programs and services
implemented by the Department and recommends expenditures
from the Resource Fund. The Department, not the Council,
creates and controls its own budget.

Furthermore, the Louisiana Legislature sets the tag fees
which help fund the Alligator Resource Fund. R.S. 56:253,
App. C at 50a. Such fees are not fixed or controlled by the
Advisory Council, but are under the Department’s administrative
control. See, e.g., 28 La. Register 1874. The Secretary exercises
veto power over the Council’s recommendations regarding
expenditures from the Fund, and the Department, not the
Council, is responsible for annual reporting to the Legislature
on the status ard uses of fund revenues. La.R.S. 56:279E.

This statutory scheme confirms that the State of Louisiana,
through the Legislature, the Department and its Secretary, is
substantially involved in the workings of the Advisory Council,
that the marketing recommended and approved by the Advisory
Council is directly related to state goals and interests, and that
the state maintains editorial control of the message and is the
literal speaker. The Council is not an industry self-help group
but an advisory and oversight council (whose members extend
beyond the alligator industry) created to ensure that important
and substantial state interests in the alligator, its habitat, and
the industry are advanced by proper application of dedicated
state revenue.

In Lebron v. National R.R. Passenger Corp., 513 U.S. 374,
400 (1995), the Court found that Amtrak is subject to the First
Amendment when it regulates advertising displayed at its

20

facilities. Lebron set out a three-part test for determining whether
an entity is subject to the First Amendment when it restricts the
speech of others: When “the Government creates a corporation
by special law, for the furtherance of governmental objectives,
and retains for itself permanent authority to appoint a majority
of the directors of that corporation, the corporation is part of
the Government for purposes of the First Amendment.”

Louisiana’s alligator marketing program satisfies Lebron’s
three-part test. First, the legislative branch of the State of
Louisiana created the Advisory Council‘ “by special law,”
La.R.S. 56:266C, App. C at 50a. Second, the Council is
responsible “for reviewing and approving recommended
procedures and programs” to be funded by the Resource Fund.
La.R.S. 266C, App. C at 50a. Each of the specific goals of the
Alligator Resource Fund constitutes a “governmental objective”
under Lebron. These include funding research on alligator
conservation and techniques needed to enhance the industry,
and funding “management of the alligator population through
proper management, harvest, and farm facility management.”
La.R.S. 56:279B(5), App. C at 54a. And, third, the State of
Louisiana appoints not only a majority, but all of the Council’s
members. (The Secretary appoints nine members; the speaker
of the House of Representatives and the president of the Senate
each appoint one member.) La.R.S. 56:266C, App. C at 51a.

4. The Advisory Council is not a corporation under Louisiana
law; rather, it is “within the Department of Wildlife and Fisheries.”
La.R.S. 56:266C, App. C at 50a. This appears to be a distinction without
legal significance; in fact, the Advisory Council’s existence “within”
the Department more easily supports a finding that the Council is “part
of the Government for purposes of the First Amendment,” Lebron, 513
U.S. at 400, then if it were a separate corporation.

21

Because Louisiana enacted the “tag fee” system to serve
public purposes, directs the message to be disseminated, created
a governmental entity to disseminate it, and requires the
Secretary’s continuing control over that entity, the challenged
law is properly understood as creating a program of government
speech. The First Amendment does not prohibit the imposition
of fees to fund such programs. See Southworth, 529 U.S.
at 229.

C. The Court Of Appeals Incorrectly Found That The
Speech In Question Is Not Government Speech.

The Fifth Circuit found that the challenged alligator
marketing program is “not government speech, but government
facilitation of the private speech of fur and alligator harvesters.”
365 F.3d at 429, App. A at 12a. The court of appeals relied on
three factors in reaching its decision: first, the method by which
the Department funds the Advisory Council, the composit*” ::
and operation of the Council, and an application of the puizies
underlying the government speech doctrine. Jd.

In Keller v. State Bar of California, supra, which presented
a First Amendment challenge to the use of mandatory dues to
fund a state bar’s political speech, the Court analyzed at length
whether the state bar was a governmental entity. 496 U.S. at
10-13. It was only after concluding that the state bar was not
speaking as the government when, for example, it endorsed a
nuclear weapons freeze or a gun control initiative, id. at 6 n.2,
that the Court turned to whether the disputed use of dues could
be sustained as germane to the purposes that justified requiring
lawyers to affiliate with the state bar, such as regulating
the legal profession, id. at 13-17. Keller thus proceeded on the
understanding that the government speech doctrine would defeat
a First Amendment objection to compelled contributions to a
program of what, in contrast to the speech in Keller itself, is
properly classified as government speech.

22

In Southworth, which involved a First Amendment
challenge to a state university’s mandatory student activity
fee used to fund extracurricular student speech, the Court
contrasted that program with a program of government speech.
529 U.S. at 229 (“If the challenged speech here were financed
by tuition dollars and the University and its officials were
responsible for its content, the case might be evaluated
on the premise that the government itself is the speaker.”).
The Court’s discussion of the government speech doctrine in
that context implies recognition that, when a program does
involve government speech, an individual cannot assert a valid
First Amendment objection to being required to contribute to
its cost.

The Fifth Circuit in this case and the Sixth Circuit in
Michigan Pork held incorrectly that generic advertising
programs for alligators and pork are not government speech.
Both courts relied on the facts that the programs are funded by
assessments on the affected industry, not general tax revenues,
and are carried out by entities whose members, while appointed
by the government, are chosen from the industry. Neither fact
detracts from the character of the generic advertising as
government speech. The government is entitled to fund its
speech through whatever means it considers most appropriate,
including through assessments on those who participate in the
industry that the government has chosen to promote.

The assessments are a kind of “user fee,” which the Court
has viewed as a permissible means of funding many government
activities.* Moreover, the government is entitled to speak through

5. See, e.g., United States v. Sperry Corp., 493 U.S. 52, 60-62
(1989) (upholding, as a permissible “user fee,” a requirement that
successful claimants before the Iran-United States Claims Tribunal pay
a portion of any award to the U.S. Treasury as “reimbursement to the

(Cont’d)

23

whatever public or private entity it considers most appropriate,
and thus may speak through a legislatively-created body, which
is composed entirely of members who are appointed and
removable by state officials, and which acts under the Secretary’s
ongoing supervision and control.

D. The Question Whether Louisiana’s Alligator
Marketing Program Involves Government Speech
Warrants The Court’s Consideration.

The question whether the government speech doctrine
defeats First Amendment challenges to assessments for generic
advertising programs under Louisiana law and similar state and
federal statutes is an important one for American businesses
and consumers. The Court’s intervention is warranted in this
case, as it was in United Foods and in Glickman, and as it is in
Livestock Marketing/Nebraska Cattlemen (pending before the
Court), all of which raised First Amendment challenges to
similar government programs.

(Cont'd)

United States Government for expenses incurred” in connection with
the Tribunal); Kadrmas v. Dickinson Public Schools, 487 U.S. 450, 461-
468 (1988) (observing that it is “manifestly rational” for a state “to allow
local school boards the option of charging patrons a user fee for bus
service” rather than funding such service out of general revenues);
Cox v. New Hampshire, 312 U.S. 569, 576-577 (1941) (observing that a
state may require payment of a reasonable parade license fee to
compensate local government for its administrative and law enforcement
expenses); cf, United States Postal Serv. v. Council of Greenburgh
Civic Ass’ns, 453 U.S. 114, 141 (1981) (White, J., concurring) (“No
one questions, however, that the Government, the operator of the [postal]
system, may impose a fee on those who would use the system, even
though the user fee measurably reduces the ability of various persons or
organizations to communicate with others.”).

24

Petitioners in the Nebraska Cattlemen case listed in their
petition the numerous First Amendment challenges to various
agricultural commodity promotion and research programs,
specifically citing the Fifth Circuit’s decision in this case.
According to those petitioners, these decisions “reveal profound
disarray and confusion among courts in this important area of
constitutional law.” Petition for a Writ of Certiorari, No. 03-
1165 at 25-26. The amici in the Livestock Marketing case
(30 states and the Commonwealth of Puerto Rico) urged the
Court to grant the then pending petition “to resolve this conflict
in the circuits regarding application of the government-speech
doctrine,” citing the decisions from the Third Circuit (Frame),
Fifth Circuit (this case), and Sixth Circuit (Michigan Pork) as
in conflict with the Eighth Circuit’s decision in Livestock
Marketing. See Brief of Texas et al. as Amici Curiae in Support
of Petitioners, Veneman y. Livestock Marketing Association,
No. 03-1164 at 10-11.

Wholly apart from the problems engendered by the
conflicting decisions from the circuit courts, this case presents
an issue of national importance, evidenced by the participation
of 30 states and the Commonwealth of Puerto Rico as amici in
Livestock Marketing. At least 42 states have created commodity-
marketing programs, and at least one state, Oregon, has such
programs for 28 different commodities. /d. at 15 n.19. Resolution
of challenges to state commodity-marketing programs may well
depend on the question the Court has yet to address. As the
Court has granted certiorari in the Livestock Marketing and
Nebraska Cattlemen cases, it should also grant the petition in
this case in order to resolve the government speech issue.

25

Il. Louisiana’s Assessments Are Constitutional Under The
Intermediate Scrutiny Applicable To Regulations Of
Commercial Speech.

Aside from the government speech question, this Court’s
review is warranted on the question whether Louisiana’s
assessment provisions withstand intermediate First Amendment
scrutiny under the standard articulated in Central Hudson for
regulations of commercial speech. The Fifth Circuit declined
to decide whether the Central Hudson test applies to compelled
subsidy challenges, but expressed “doubt” that it does. 365 F.3d
at 434 n.21, App. A at 23a. Nevertheless, it held that Louisiana’s
alligator marketing program would not pass the test if it did
apply:

To pass this test, a restriction on commercial speech
must directly advance a substantial government
interest and burden First Amendment rights no
more than necessary to accomplish that interest.
Central Hudson, 447 U.S. at 566. Even granting
arguendo that Louisiana has a substantial interest in
conservation and that the message expressed by the
Council’s generic marketing helps advance that
interest, Louisiana’s program burdens First
Amendment speech more than necessary. Louisiana
does not need to compel alligator harvesters to
support generic marketing, but could simply fund
generic marketing from its general tax revenues. /d.

As the Court has explained, the Central Hudson standard
does not require a legislature to employ the “least-restrictive-
means” of regulation or to achieve a perfect fit between means
and ends. Board of Trustees v. Fox, 492 U.S. 469, 480 (1989).
It is sufficient that the legislature achieves a “reasonable” fit by

26

adopting regulations “in proportion to the interest served.”
In re R.M.J., 455 U.S. 191, 203 (1982), citing Central Hudson,
447 U.S. at 563-64. Louisiana’s alligator marketing program
satisfies that standard.

Louisiana’s program advances two “substantial”
governmental interests: conserving its once threatened alligator
population and insuring stability of the worldwide market for
alligator products. Moreover, the state’s alligator marketing
program directly advances those interests. The Court has
repeatedly recognized the “immediate connection between
advertising and demand.” Central Hudson, 447 U.S. at 569;
Lorillard Tobacco Co. v. Reilly, 533 U.S. 525, 557 (2001) (“[W]e
have acknowledged the theory that product advertising
stimulates demand for products, while suppressed advertising
may have the opposite effect.”). The challenged assessment
provisions play an integral role in advancing the state’s interests.

Nor is the alligator marketing program “more extensive
than is necessary to serve” the government interests. It imposes
“no restraint on the freedom of any producer to communicate
any message to any audience,” does “not compel any person to
engage in any actual or symbolic speech,” and does “not compel
the procucers to endorse or to finance any political or ideological
views.” Glickman, 521 U.S. at 469-70. It requires only that
alligator hunters and farmers contribute financially to generic
marketing (and other activities) designed to benefit the alligator
industry as a whole by promoting the sale of the product that
the industry exists to market.

27

III. Louisiana’s Alligator Marketing Program Is Part Of A
Broader Regulatory Scheme That Exempts This
Program From The First Amendment.

The Court has twice addressed the constitutionality of
mandatory assessments for state generic advertising programs,
United Foods, — where mushroom producers successfully
challenged mandatory assessments for generic advertising —
and Glickman — where the Court rejected a challenge to similar
assessments by growers of fruit trees. The Fifth Circuit
erroneously found that “Louisiana’s generic alligator marketing
program more closely resembles the mushroom program at issue
in United Foods than the fruit program at issue in Glickman.”
365 F.3d at 433, App. A at 19a. Petitioner submits that
Louisiana’s comprehensive regulation of the alligator population
and industry constitutes a broad regulatory scheme like the one
that validated the assessments in Glickman.

In Glickman, the Court upheld marketing orders issued by
the Secretary of Agriculture against growers, handlers, and
processors of California tree fruits. The orders were issued
pursuant to the Agricultural Marketing Agreement Act of 1937,
7 U.S.C. § 601 et seg., which Congress enacted in order to
maintain orderly marketing conditions and supply flow for
agricultural commodities in interstate commerce. The marketing
orders authorized assessments against fruit growers to finance
various projects, including generic advertising. The marketing
orders could limit quantity, quality, grade and size of the
commodity to be marketed, and could provide for marketing
research and development projects, including advertising.

The generic ads promoted the message that California
summer fruits were wholesome, delicious, and attractive.
The Court rejected a First Amendment challenge to the
advertising program, pointing to the broad regulatory framework

28

in which the fruit growers operated. 521 U.S. at 469. The Court
regarded the advertising component of the marketing orders as
part of an overall regulatory scheme comprising valid economic
regulation of transactions in agricultural commodities affected
by a national public interest. Jd.

The Court announced three factors that distinguished the
regulatory scheme for fruit growers from laws that violate the
First Amendment:

First, the marketing orders impose no restraint on
the freedom of any producer to communicate any
message to any audience. Second, they do not
compel any person to engage in any actual or
symbolic speech. Third, they do not compel the
producers to endorse or to finance any pelitical or
ideological views. Jd.

Each of these three factors applies equally to Louisiana’s
regulation of the alligator population and industry. First,
Louisiana law does not impose any “restraint on the freedom of
any producer to communicate any message to any audience.”
Louisiana alligator farmers and dealers are free to advertise and
market their products and services as they see fit or, if they
prefer, not at all. Second, Louisiana’s regulatory scheme does
not require respondent to engage in actual or symbolic speech.
But cf. West Va. State Bd. of Education v. Barnette, 319 U.S.
624 (1943) (enjoining enforcement of a requirement that
public school children salute the American flag); Wooley v.
Maynard, 430 U.S. 705 (1977) (striking down New Hampshire’s
requirement that auto license plates contain the motto “Live
Free or Die’’). Third, Louisiana does not require anyone who
pays an alligator tag fee to endorse or finance any political or
ideological view. The message of Louisiana’s marketing program

29

is straightforward, and far removed from politics or ideology
-- the message that “‘the alligator trade is legal, sustainable and
verifiable with conservation value.” Exh. H at 23.

Four years after Glickman, the Court decided in United
Foods that assessments on mushroom producers for generic
advertising programs promoting mushroom sales pursuant to
another federal statute, the Mushroom Promotion, Research,
and Consumer Information Act of 1990, 7 U.S.C. § 6101
et seq., violated producers’ First Amendment rights. Unlike the
regulatory program in Glickman, the assessments in United
Foods were not ancillary to a more comprehensive regulatory
program restricting market autonomy and the advertising itself
was the principal object of the regulatory scheme. 533 U.S. at
415.

To distinguish this result from its earlier decision in
Glickman, the Court noted that the mandatory fruit advertising
program in Glickman was merely ancillary to a more
comprehensive regulatory program restricting market autonomy,
while the advertising program in United Foods was the principal
object of the regulatory scheme and almost all of the funds
collected under the mandatory assessments were used for one
purpose, generic advertising, with no other regulatory framework
governing how mushrooms may be produced and sold. The
Court struck down the United Foods regulatory scheme on First
Amendment principles it had previously applied in Abood and
Keller.

The Fifth Circuit acknowledged “a number of
interdependent state, federal, and international laws impos[ing]
requirements on alligator harvesters,” and “Louisiana’s extensive
regulation of alligator harvesting,” 365 F.3d at 433, App. A at
20a, but nevertheless concluded that the “fees imposed here,
though used for more than generic marketing, represent a

30

collective association only in the loosest sense of that term.”
365 F.3d at 434, App. A at 21a. On the record before the Fifth
Circuit, that conclusion was erroneous as a matter of law.

CONCLUSION

For all of the foregoing reasons, petitioner respectfully
requests that the Supreme Court grant this petition; alternatively,
that the Court hold this petition pending its decision on the merits
of the Livestock Marketing/Nebraska Cattlemen matters and, if
the decision in those cases is favorable to petitioner herein, grant
this petition, vacate the decision of the Fifth Circuit Court of
Appeals insofar as it affirmed the district court’s grant of
injunctive relief, and remand to that court for reconsideration
in light of this Court’s decision in the Livestock Marketing/
Nebraska Cattlemen matters.

Respectfully submitted,

C. Berwick DuvaL, II

DuvAL, FUNDERBURK, SUNDBERY,
LoveELL & WATKINS

101 Wilson Avenue

Post Office Box 3017

Houma, Louisiana 70361

(985) 876-6410

Attorneys for Petitioner

APPENDIX

la

APPENDIX A — OPINION OF THE UNITED STATES
COURT OF APPEALS FOR THE FIFTH CIRCUIT
FILED APRIL 2, 2004

IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT

No. 03-30523

PELTS & SKINS, LLC,
Plaintiff-Appellee,
versus

WILLIAM DWIGHT LANDRENEAJU, Secretary for the
Department of Wildlife and Fisheries,

Defendant-Appellant.

Appeal from the United States District Court
for the Middle District of Louisiana.

Before KING, Chief Judge, and BENAVIDES and
CLEMENT, Circuit Judges.

BENA#w WES, Circuit Judge:

Plaintiff-Appellee Pelts & Skins farms alligators in
Louisiana. Defendant-Appellant William Dwight Landreneau
is Secretary of the Louisiana Department of Wildlife and
Fisheries (“DWF”), the agency responsible for overseeing
conservation of alligators.’ Louisiana requires alligator

1. Mr. Landreneau replaced James A. Jenkins as secretary after
the district court ruled. To avoid confusion, we refer to Mr.
Landreneau as the Secretary.

2a

Appendix A

hunters and farmers to pay various fees, and DWF uses a portion
of those fees to support generic marketing of alligator products.
Pelts & Skins alleges that this practice constitutes a compelled
subsidy for private speech that violates the First Amendment.
The district court agreed with Pelts & Skins and permanently
enjoined use of the fees to support generic marketing of alligator
products.

We conclude that Pelts & Skins lacks standing to challenge
the use of certain alligator-related fees. With regard to the fees
Pelts & Skins does have standing to challenge, we agree with
the district court that the use of those fees for generic marketing
violates the First Amendment. We therefore affirm in part, vacate
in part, and remand in part.

I.

The American alligator was once endangered, but Louisiana
_ law now allows the hunting and farming of alligators for their
meat and skins. DWF regulates the hunting, farming, processing,
and shipment of alligators and alligator parts. See La. Rev. Stat.
Ann. § 36:602(B) (West Supp. 2004). DWF does not regulate
the prices or marketing of alligators, but it does administer two
funds, the proceeds of which support generic marketing of
alligator products: the Louisiana Fur and Alligator Public
Education and Marketing Fund (the “Marketing Fund”’) and the
Louisiana Alligator Resource Fund (the “Resource Fund”).
The generic marketing supported by these two funds is the focus
of this case.’

2. This type of scheme—compelled subsidies for generic
marketing— has produced many familiar campaigns, including “Got
(Cont’d)

3a

Appendix A

The Marketing Fund derives its revenues from license
fees, i.e., the fees associated with the hunting licenses that
fur trappers and alligator hunters must carry. See id.
§§ 56:251(A), 56:266(D). Twenty dollars of every twenty-
five-dollar license fee are earmarked for the Marketing Fund.’
Id. The Louisiana Legislature created the Marketing Fund to
market alligator and fur products, to educate the public about
the harvesting of those products, and to recommend strategies
to the fur and alligator industry. Jd. § 56:266(B).

The Resource Fund derives its revenues from a variety
of fees imposed on alligator hunters, farmers, and processors.
Id. § 56:279. The most notable of these fees is the tag fee, a
charge for the tag that must be attached to every harvested
alligator skin. Jd. § 56:253(C).* The Legislature created the

(Cont'd)

Milk?”; “Pork: The Other White Meat”; “The Incredible, Edible Egg”;
“Ah... the Power of Cheese”; and “The Touch . . . the Feel of Cotton
... the Fabric of Our Lives.” See Cochran v. Veneman, 359 F.3d 263,
266 (3d Cir. 2004); Mich. Pork Producers Ass’n v. Veneman, 348 F.3d
157, 162 & n.2 (6th Cir. 2003), petition for cert. filed sub. nom. Veneman
v. Campaign for Family Farms, 72 U.S.L.W. 3539 (U.S. Jan. 20, 2004)
(No. 03-1043).

3. The state treasurer may apply collected fees to the Marketing
Fund and the Resource Fund only after she ensures that state revenues
can cover due and payable state debts. La. Rev. Stat. Ann. §§ 266(D)(1),
279(C)(1) (West Supp. 2004). The record does not indicate that the
treasurer has ever applied alligator-related fees to state debts.

4. Section 56:253(C)(2)(a) allows DWF to charge up to four dollars
per tag, and during some years, Pelts & Skins paid four dollars per tag.
But starting in September 2002, DWF temporarily suspended the
collection of two dollars of the regular four-dollar fee. La. Admin. Code
tit. 76, § 701(A)(4)(a)(xi) (2003).

4a

Appendix A

Resource Fund “to help uefray the cost of alligator programs”
administered by DWF. /d. § 56:279(A). The Resource Fund
supports alligator-related research and, when surplus funds
are available, helps to fund alligator-related law enforcement
and marketing programs. /d. § 56:279(B).

DWF monitors both funds, and the Secretary must
approve all expenditures for generic marketing, but another
State-created entity, the Louisiana Fur and Alligator Advisory
Council (the “Council”), is directly responsible for the
content of the generic marketing and must review and
approve all expenditures from the funds. /d. § § 266(C),
279(D)(3). The Council comprises the Secretary (or his
designate), who serves ex officio, and eleven appointed
members. /d. § 56:266(C). The speaker of the House and
the president of the Senate each appoint one member. /d.
The Secretary appoints nine members, and those nine
members must represent “a cross-section of trappers, alligator
hunters, coastal landowners, and alligator farmers.” Jd. Two
of those nine members must represent a private organization,
the Louisiana Alligator Farmers and Ranchers Association.
Id. The Secretary may appoint the remaining seven members
based on nominations from the Louisiana Trappers and
Alligator Hunters Association. Jd.

Pelts & Skins, as Louisiana’s (and the world’s) largest
alligator farming operation, pays fees that account for roughly
25% of the alligator- related revenues received by DWF. Pelts
& Skins does not object to the collection of these revenues
but does object to the expenditure of these funds on generic
marketing. According to Pelts & Skins, its business depends
on convincing consumers that it produces a unique product

Sa

Appendix A

that is superior in quality to other alligator products. Generic
alligator marketing undercuts this message because generic
marketing does not differentiate between particular types,
qualities, or brands of alligator products, but rather promotes
the notion that alligator products in general are desirable,
reliably available, and lawfully produced.* Pelts & Skins also
hints broadly that the Council’s generic marketing campaign,
which consists mainly of sending representatives to fashion
shows and setting up educational displays, is a boondoggle.
However, Pelts & Skins is quick to clarify that its objection
to generic marketing stems from the message of that
marketing, not its efficacy.

Based on its objection to the generic marketing’s content,
Pelts & Skins sought to enjoin DWF from expending
revenues from the Marketing Fund and the Resource Fund
for generic alligator marketing. According to Pelts & Skins,
Louisiana violated the First Amendment by imposing
mandatory fees on Pelts & Skins, then using those fees to
subsidize a message with which Pelts & Skins disagrees. In
response, the Secretary argued (1) that the Tax Injunction
Act of 1937 barred federal jurisdiction; (2) that the generic
marketing at issue was government speech not subject to First
Amendment scrutiny; and (3) that, in the alternative, the

5. Pelts & Skins’ objection to the message embodied in generic
marketing may seem minor, but the Supreme Court has explained
that the perceived importance of a plaintiff's objection is immaterial.
See United States v. United Foods, 533 U.S. 405, 411 (2001) (“First
Amendment values are at serious risk if the government can compel
a particular citizen, or a discrete group of citizens, to pay special
subsidies for speech on the side that it favors; and there is no apparent
principle which distinguishes out of hand minor debates about
whether a branded mushroom is better than just any mushroom.”).

6a

Appendix A

generic marketing was merely ancillary to a broader
cooperative regime and therefore consistent with the First
Amendment.

The parties agreed to submit the case on the record
without live testimony. The district court determined (1) that
the Tax Injunction Act did not bar federal jurisdiction;
(2) that the generic marketing was not government speech;
and (3) that the use of mandatory fees to fund generic
marketing was not ancillary to a broader cooperative regime.
Pelts & Skins, L.L.C. v. Jenkins, 259 F. Supp. 2d 482 (M.D.
La. 2003). The court permanently enjoined the Secretary from
“approving, authorizing or expending any revenue from the
Louisiana Fur and Alligator Public Education and Marketing
Fund or from the Louisiana Alligator Resource Fund for
the purpose of generic alligator marketing.” /d. at 494.
The Secretary appealed.°®

Il.

We first address the Secreitary’s contention that Pelts &
Skins lacks standing to challenge expenditures from the
Marketing Fund. The Secretary failed to raise this argument
in the district court, but a party may raise standing at any
time, even on appeal. Johnson v. City of Dallas, 61 F.3d 442,
443-44 (Sth Cir. 1995).

The first requirement of standing is that a party must
demonstrate an injury in fact. See McConnell v. FEC, 124
S. Ct. 619, 707 (2003). Pelts & Skins alleges that it has been

6. The Secretary has appealed neither the district court’s findings
of fact nor its ultimate holding with regard to the Tax Injunction Act.

7a

Appendix A

injured in fact because it must pay fees that directly support
a message with which it disagrees. The Secretary claims that
Pelts & Skins has failed to prove this injury with regard to
the Marketing Fund. The Secretary concedes that Pelts &
Skins has paid the tag fees that support the Resource Fund,
and the record amply supports that concession.’ However,
according to the Secretary, Pelts & Skins has not shown that
it has ever paid the license fees that support the Marketing
Fund.

We agree with the Secretary that Pelts & Skins failed to
prove that Louisiana’s use of the marketing fund has caused
an injury in fact. Because this case proceeded to final
judgment,* “the factual allegations supporting standing
(if controverted)? must be supported adequately by the

7. We must address standing on a claim-by-claim basis, so Pelts
& Skins cannot parlay its standing to challenge the Resource Fund
into standing to challenge the Marketing Fund. See James v. City of
Dallas, 254 F.3d 551, 563 (Sth Cir. 2001).

8. As noted above, the parties agreed to let the hearing on Pelts
& Skins’ motion for summary judgment serve as a submission of the
case on the merits. The district court treated the case as a trial on a
stipulated record. See Pelts & Skins, 259 F. Supp. 2d at 483. At oral
argument, Pelts & Skins claimed that it did not realize that the trial
court would go beyond addressing the motion for summary judgment.
However, even had this case been resolved on summary judgment,
Pelts & Skins could not have rested on mere allegations, but would
have had to set forth specific facts by affidavit or other evidence.
See Lujan v. Defenders of Wildlife, 504 U.S. 555, 561 (1992).

9. This parenthetical does not mean that Pelts & Skins did not
need to support its allegations with evidence because the Secretary
(Cont'd)

8a

Appendix A

evidence adduced at trial.” Walker v. City of Mesquite, 169
F.3d 973, 978 (Sth Cir. 1999); see also Lujan v. Defenders of
Wildlife, 504 U.S. 555, 561 (1992). Pelts & Skins must
support each element of standing just as it would support
any other matter on which it bears the burden of proof. Lewis
v. Casey, 518 U.S. 343, 358 (1996).

Pelts & Skins has not carried this burden. Nowhere does
the record indicate that Pelts & Skins ever held a hunting
license or paid any fee that supports the Marketing Fund.
Instead, Pelts & Skins relies on assertions in pleadings. Had
the district court decided this case on a motion to dismiss,
these allegations would be sufficient; however, once a case
passes this preliminary stage, a plaintiff must set forth
evidence of an injury in fact. See Lujan, 504 U.S. at 561
(1992); Walker, 169 F.3d at 978 & n.15.'° The record contains
no such evidence.

(Cont'd)

failed to controvert those allegations in the district court. Were we to
interpret Walker in this way, we would undermine the established
rule that objections to standing may not be waived. See Lang v.
French, 154 F.3d 217, 222 n.28 (Sth Cir. 1998); Jn re Weaver, 632
F.2d 461, 463 n.6 (Sth Cir. 1980).

10. Pelts & Skins also relies on a sentence from the Secretary’s
Answer in which the Secretary “admit[s] ... that plaintiff does
contribute to the fund.” Answer § 24. However, this so-called
admission is ambiguous; the Secretary’s statement does not specify
which of the two funds Pelts & Skins has contributed to. Because
this statement is less than “deliberate, clear, and unequivocal,” it
cannot serve as a judicial admission. See Heritage Bank v. Redcom
Labs., Inc., 250 F.3d 319, 329 (Sth Cir. 2001).

9a

Appendix A

Pelts & Skins also relies on the district court’s finding that
“plaintiff’s farming operation is conditioned upon payment of”
mandatory fees (‘license fees’ and ‘tag fees’) to the DWF.”
259 F. Supp. 2d at 483-84. We review for clear error the findings
underlying a district court’s determination of standing. Rivera
v. Wyeth-Ayerst Labs., 283 F.3d 315, 319 (5th Cir. 2002);
Pederson v. La. State Univ., 213 F.3d 858, 869 (Sth Cir. 2000).
A finding is clearly erroneous if a review of the evidence leaves |
us with a firm conviction that the district court has made a
mistake. Dickerson ex rel. Dickerson v. United States, 280 F.3d
470, 474 (5th Cir. 2002). The absence of any evidence supporting
the district court’s finding firmly convinces us that, based on
the record as it stands, the district court has made a mistake.
Cf. Walker v. U.S. Dep t of Hous. & Urban Dev., 99 F.3d 761,
770 (5th Cir. 1996).'' Given the parties’ failure to contest and
to address standing in the district court, the district court’s finding
is- unsurprising; nevertheless, that finding is clearly erroneous
on this record.

On this record, therefore, Pelts & Skins lacks standing to
challenge expenditures from the Marketing Fund. A district court
may only remedy the injury in fact the plaintiff has established.
Lewis, 518 U.S. at 357 (1996). We therefore vacate the portion
of the injunction concerning the Marketing Fund.

11. The Secretary also argues that the relevant statutes provide
that only a natural person, not a corporate entity such as Pelts &
Skins, can hold a hunting license. Because the district court can
consider these arguments on remand, we need not discuss them except
to say that neither the governing statutes, see La. Rev. Stat. Ann.
§ 56:8, 56:54 (West Supp. 2004), nor the governing regulations,
see La. Admin. Code tit. 76, § 701 (2003), affirmatively support the
district court’s finding that Pelts & Skins must pay a hunting license
fee to operate its business.

10a
Appendix A

When jurisdiction is not clear from the record but could
exist, we may remand to the district court so that the parties
may supplement the record. Mollett v. Penrod Drilling Co.,
872 F.2d 1221, 1228 (Sth Cir. 1989). Remand is especially
appropriate when, as in this case, jurisdiction may hinge on
a simple factual matter that was left untested because the
parties did not dispute standing in the district court. After
further review, the district court may determine that Pelts &
Skins has paid the license fee. We therefore remand this case
in part. On remand, the district court should ascertain whether
Pelts & Skins has standing to challenge the Marketing Fund
and modify the injunction accordingly.

Ii.

Although Pelts & Skins lacks standing to challenge use
of the Marketing Fund, it has standing to challenge use of
the Resource Fund. We therefore consider whether the use
of the Resource Fund to promote generic alligator marketing
violates the First Amendment. We review the district court’s
resolution of this constitutional question de novo. Baby Dolls
Topless Saloons, Inc. v. City of Dallas, 295 F.3d 471, 482
(Sth Cir. 2002).

A.

We first consider whether the generic alligator marketing
is government speech or private speech. The government
speech doctrine holds that “when the government
appropriates public funds to promote a particular policy of
its own, it is entitled to say what it wishes.” Rosenberger v.
Rector & Visitors of Univ. of Va., 515 U.S. 819, 833 (1995).

lla

Appendix A

The Secretary argues that generic alligator marketing is
immune from First Amendment review because the State of
Louisiana is speaking."

We disagree. Not all government-facilitated speech is
government speech. The government speech doctrine does
not apply if a program is “designed to facilitate private |
speech, not to promote a governmental message.” Velazquez,
531 U.S. at 542. In this case, three considerations—the
method by which DWF funds generic marketing, the
composition and operation of the Fur and Alligator Advisory

12. The Supreme Court has not determined how the government
speech doctrine applies to compelled subsidies for generic marketing.
Neither of the two Supreme Court cases addressing mandatory
assessments for generic marketing considers the question of
government speech. See United States v. United Foods, Inc., 533
U.S. 405 (2001); Glickman v. Wileman Bros. & Elliott, Inc., 521 U.S.
457 (1997). In United Foods, the Court intimated that the government
speech doctrine might have been applicable to the issue of compelled
assessments for generic marketing but expressly reserved this question
because the argument was not raised or addressed in the court of
appeals. 533 U.S. at 416-17.

Rather, courts usually consider the government speech doctrine
when plaintiffs challenge restrictions on government-funded
expression as content- or viewpoint-discriminatory. See, e.g., Legal
Servs. Corp. v. Velazquez, 531 U.S. 533, 536-37 (2001) (striking down
restrictions that barred government-funded lawyers from challenging
the validity of welfare statutes); Rosenberger, 515 U.S. at 822-28
(striking down state university’s restrictions on use of student
activities funds for religious publications); Rust v. Sullivan, 500 U.S.
173, 177-83 (1991) (upholding restriction that barred recipients of
federal funds from discussing abortion as a method of family
planning).

12a

Appendix A

Council, and an application of the policies underlying the
government speech doctririe—convince us that the generic
marketing at issue is not government speech, but government
facilitation of the private speech of fur and alligator harvesters."

13. Three other circuits addressed the application of the
government speech doctrine to programs similar to the generic
alligator marketing program and uniformly concluded that this type
of producer-funded generic marketing is not government speech.

The Third and Sixth Circuits relied upon two basic
considerations: first, that assessments on producers rather than
general revenues funded the marketing; and second, that the
organizations responsible for the conteni of the generic marketing
represented private rather than governmental interests. See Cochran,
359 F.3d at 273-74 (generic milk marketing); Mich. Pork, 348 F.3d
at 161-62 (generic pork marketing); United States v. Frame, 885 F.2d
1119, 1131-33 (3d Cir. 1989) (generic beef marketing).

The Eighth Circuit declared the government speech doctrine
categorically inapplicable to compelled subsidy cases. See Livestock
Mktg. Ass’n v. U.S. Deptt of Agric., 335 F.3d 711, 720 (8th Cir. 2003),
petition for cert. filed sub. nom. Veneman v. Livestock Mktg. Ass’n,
72 U.S.L.W. 3539 (U.S. Feb. 13, 2004) (No. 03-1164). The Supreme
Court’s treatment of compelled subsidy challenges convinces us that
the government speech doctrine is at least potentially applicable to
this general category of cases. In Keller v. State Bar, the Court invoked
the government speech doctrine and analyzed whether an integrated
state bar was a government agency before turning to the question of
whether bar dues constituted an impermissible compelled subsidy
for private speech. 496 U.S. 1, 10-13 (1990). In Board of Regents of
University of Wisconsin System v. Southworth, the Court considered
a compelled subsidy challenge to mandatory student fees and stated
in dictum that, had the state university not denied that the speech at
issue was government speech, “the analysis likely would be altogether
different.” 529 U.S. 217, 235 (2000).

13a

Appendix A

First, the method by which DWF funds generic alligator
marketing suggests that generic alligator advertising is the
message of fur and alligator harvesters, not Louisiana as a whole.
Government speech is typically funded from a government’s
general revenues, not assessments levied on a particular group.
See Keller, 496 U.S. at 11; Mich. Pork, 348 F.3d at 162; Frame,
885 F.2d at 1132-33. The portions of the Resource Fund.
administered by the Council do not come from general state
revenues; rather, they come from fees levied on only one group:
harvesters of furs and alligators. The Resource Fund remains in
an account segregated from the State’s general revenues.
La. Rev. Stat. Ann. § 56:279(C)(1) (West Supp. 2004). Moreover,
the expenditures recommended, reviewed, and approved by the
Council primarily concern precisely those persons who must
contribute to the Resource Fund. This “close nexus” between
the individuals who pay for the speech and the content of the
speech suggests that Louisiana is facilitating a private message,
not expressing its cwn. See Frame, 885 F.2d at 1132.

Second, an organization that represents private interests,
the Council, is primarily responsible for the generic marketing
campaign. Cochran, Michigan Pork, and Frame all dealt with
generic marketing programs run by industry-specific councils.
In each of these cases, the federal agriculture secretary appointed
the members of the council based on nominations from industry
representatives. Because these councils were composed of
industry representatives, the courts determined that those
councils, though appointed by the government, represented
private interests. See Cochran, 359 F.3d at 274; Michigan Pork,
348 F.3d at 162; Frame, 885 F.2d at 1133.

Likewise, although the Council is a government creation,
the composition of the Council demonstrates that it represents

14a

Appendix A

primarily private interests.'* The Secretary or his designate serves
on the Council ex officio, and he and other government officials
appoint all the remaining members of the Council, but the
Secretary does not enjoy plenary discretion to appoint any person
to the Council. La. Rev. Stat. Ann. § 56:266(C) (West Supp.
2004). Rather, he must appoint a carefully calibrated “cross
section of trappers, alligator hunters, coastal landowners, and
alligator farmers.” Jd. Two members of the Council must
represent a private organization, the Louisiana Farmers and
Ranchers Association. /d. The Secretary may choose all nine of
the Council members he appoints based on nominations from
private organizations, id., and the record suggests that the
Secretary does so. Because representatives of private alligator
harvesters compose the heavy majority of the Council, it
naturally reflects private rather than governmental interests. '°

14. The Secretary argues that alligator marketing is government
speech because the Council’s governing statutes lay out specific goals
and articulate Louisiana’s interest in promotion of the alligator industry.
See La. Rev. Stat. Ann. § § 56:266(B), 56:279(A) (West Supp. 2004).
The fact that the government has an interest in facilitating private speech
does not convert that speech into a governmental message. The federal
government laid out similar interests in the statutes at issue in Michigan
Pork, Livestock Marketing, and Frame, but none of those courts
considered the articulation of those interests relevant. See Mich. Pork,
348 F.3d at 159; Livestock Mktg., 335 F.3d at 713-14; Frame, 885 F.2d
at 1122-23. Moreover, in Velazquez, the Court held that the legal
representation at issue was not government speech despite the fact that
Congress had articulated a governmental interest in funding legal
representation for indigent litigants. 531 U.S. at 536, 541-42.

15. In Lebron v. National Railroad Passenger Corp., the Supreme
Court considered whether Amtrak was “an agency or instrumentality of

(Cont'd)

ee

15a

Appendix A

Furthermore, although the Secretary portrays alligator
marketing as a DWF-run program, the Council, not DWF,
primarily controls how the Resource Fund is used.'®
Cf. Michigan Pork, 348 F.3d at 162. DWF cannot spend
money from the Resource Fund without the Council’s
approval. La. Rev. Stat. Ann. § 56:279(D)(3) (West Supp.
2004). Moreover, the record suggests that DWF’s approval.
of contracts recommended by the Council is largely
perfunctory. Cf. United Foods, 533 U.S. at 416-17
(suggesting in dictum that evidence of pro forma oversight
implies that government-facilitated generic marketing is not
government speech). Our review of the record reveals no
evidence that DWF crafts or edits the content of any of the
generic marketing at issue; rather, this task falls to private

(Cont'd)

the United States for the purpose of individual rights guaranteed
against the Government by the Constitution.” 513 U.S. 374, 394 (1995).
Lebron, however, involved an issue very different from the question
presented in this case. In Lebron, an artist sued to compel Amtra‘ to
display political artwork on an Amtrak-owned billboard. Jd. at 376-78.
The question was not whether Amtrak’s use of the billboard was
government speech; like a privately-owned billboard, the Amtrak
billboard was designed to facilitate promotion of private messages. Jd.
Rather, the question in Lebron was whether the First Amendment placed
any limitations on Amtrak’s use of the billboard. Jd. We thus consider
Lebron inapplicable to the issue at hand. Accord Cochran, 359 F.3d at
274 n.10; Livestock Mktg., 335 F.3d at 720 n.5.

16. To be sure, DWF could exercise limited control over the
Council. Aside from his appointment power, the Secretary also retains
the power io veto the Council’s expenditures from the Resource
Fund. See La. Rev. Stat. Ann. § 56:279(D) (West Supp. 2004). The record,
however, contains no evidence that the Secretary has ever exercised
that veto.

l6a

Appendix A

contractors hired by the Council to market alligator products.
Thus, the Council, not DWF, is primarily responsible for
generic alligator marketing.

Third, the policies underlying the government speech
doctrine do not support the application of that doctrine to
this case. One rationale for the government speech doctrine
is that, without the doctrine, “every citizen [would] have a
right to insist that no one paid by public funds express a
view with which he disagreed ... and the process of
government as we know it would be radically transformed.”
Keller, 496 U.S. at 12-13. This case, however, does not raise
the specter of lawsuit-induced paralysis. As our discussion
of standing demonstrates, only members of the narrow group
compelled to contribute funds to subsidize directly a private
message have standing to challenge the expression at issue.

A second rationale for the government speech doctrine
is that “[w]hen the government speaks, for instance to
promote its own policies or to advance a particular idea, it
is, in the end, accountable to the electorate and the political
process for its advocacy.” Velazquez, 531 U.S. at 541 (quoting
Southworth, 529 U.S. at 235). In contrast, the government
can easily avoid accountability when it imposes costs on a
single, narrow group to facilitate a specialized message,
especially if only a small minority of that group objects to
the message expressed.

We are not dealing with a program funded from
general revenues by broadly applicable taxes. Nor are
we dealing with a governmental message crafted, controlled,
and expressed by an agency designed to represent state

17a

Appendix A

government. Rather, in this.case we confront a program in
which the government uses its authority to exact fees from
private individuals, then facilitates the use of those fees to
express a message designed to benefit private commercial
interests. This sort of program is not government speech.

B.

Because we have determined that use of the Resource
Fund for generic marketing represents a compelled subsidy
for private speech, we must decide whether that compuision
is nonetheless permissible. The Supreme Court has twice
addressed compelled subsidies for generic marketing. In
Glickman vy. Wileman Bros. & Elliot., Inc., 521 U.S. 457
(1997), the Court upheld compelled subsidies for generic fruit
marketing. In United States v. United Foods, Inc., 533 US.
405 (2001), the Court struck down compelled subsidies for
generic mushroom marketing. We must mediate between
these two contrasting precedents, or, in the words of the
district court, “determine whether Louisiana alligator
producers are more like mushroom producers than like peach
producers.” Pelts & Skins, 259 F. Supp. 2d at 483.

In Glickman, the Court evaluated a New Deal-era
regulatory scheme that required producers of peaches, plums,
and nectarines to participate in “[c]Jollective, rather than
competitive, marketing.” 521 U.S. at 461. This collective
marketing scheme “displaced competition” by imposing
uniform prices, dictating the quality and quantity of the fruits
marketed, determining the grade and size of the fruits
sold, providing for the orderly disposition of surplus,
authorizing joint research and development projects,

18a

Appendix A

requiring standardized packaging, and even exempting
affected producers from antitrust laws. /d. As part of this
displacement of competition, the government required
producers to pay for generic marketing of the fruit. /d.
A group of growers alleged that the assessments violated the
First Amendment. The Court upheld the assessments only
after “stress[ing] the importance of the statutory context.”
Id. at 469. Because the growers were part of a “broader
collective enterprise in which their freedom to act
independently [was] already constrained by the regulatory
scheme,” the Court characterized the assessments for generic
marketing as “a species of economic regulation that should
enjoy the same strong presumption of validity that we accord
to other policy judgments made by Congress.” Jd. at 477.

Later, in United Foods, mushroom handlers refused to
pay mandatory assessments to fund generic mushroom
marketing. 533 U.S. at 408-09. The Court struck down the
assessments as violations of the handlers’ First Amendment
right not to subsidize speech with which they disagreed.
Id. at 409. Unlike the program in J .«ckman, the Court
reasoned, the mushroom program was not “ancillary to a more
comprehensive program restricting marketing autonomy.”
Id. at 411. Rather, the generic mushroom advertising, “far
from being ancillary, [was] the principal object of the
regulatory scheme.” Jd. at 411-12. The Court summarized
its compelled subsidy cases and enunciated a guiding
principle: When the government binds individuals into a
collective association, the government can also require that
those persons subsidize speech germane to the purpose
underlying the association. United Foods, 533 U.S. at
413-15; see also Keller, 496 U.S. at 13-14 (integrated bar);

19a

Appendix A

Abood v. Detroit Bd. of Educ., 431 U.S. 209, 235-36 (1977)

(closed union shop). Because the mushroom program did not-————
require association except to support generic marketing, the
program violated the First Amendment. United Foods, 533

U.S-~ at 415-16.

We agree with the district court that Louisiana's generic
alligator marketing program more closely resembles the
mushroom program at issue in United Foods than the fruit
program at issue in Glickman. The Glickman rule permitting
compelled subsidies applies when individuals have been
“bound together” in a collective. United Foods, 533 U.S. at
412; accord Cochran, 359 F.3d at 275; Delano Farms Co. v.
Cal. Table Grape Comm'n, 318 F.3d 895, 898-99 (9th Cir.
2003) (striking down compelled subsidies for generic grape
marketing). Without an underlying collectivized association,
a state cannot justify a compelled subsidy. See United Foods,
533 U.S. at 413-15. Louisiana alligator producers are not
part of a collective association akin to Glickman ‘s marketing
cooperative. None of the laws governing alligator production
imposes collective rather than competitive marketing as the
scheme in Glickman did. Cf. Cochran, 359 F.3d at 275.
Rather, as the Secretary admits, the State of Louisiana does
not regulate prices in the alligator market, and alligator
harvesters are free to negotiate prices and to market products
as they wish."’

17. Abood and Keller allow compelled subsidies for speech that is
germane to a lawfully compelled collective association. Abood, 431 U.S.
at 235-36; Keller, 496 U.S. at 14. In this case there is no underlying
association to which the generic marketing could be germane. Therefore,
we need not determine whether generic marketing is germane to
Louisiana’s other alligator-related regulations.

20a

Appendix A

The Secretary emphasizes Louisiana’s extensive
regulation of alligator harvesting and argues that generic
alligator marketing, like generic peach marketing, is
permissible because it is ancillary to Louisiana’s alligator
regulations.'* Regulations alone do not create compelled
association. See Cochran, 359 F.3d at 275; Delane Farms,
318 F.3d at 899. In Glickman, the fruit producers were subject
to a specific type of regulation: a scheme that displaced
individual marketing efforts and thus necessitated collective
generic marketing. See 521 U.S. at 461. Likewise, in Keller
and Abood, the state required that individuals join a collective
interest group; to be effective, that interest group had to speak
on behalf of its members on certain issues. See Keller, 496
U.S. at 14-15; Abood, 431 U.S. at 220-23. A number of
interdependent state, federal, and international laws impose
requirements on alligator harvesters, but these laws do not
require collective association, and “it is only the overriding
associational purpose which allows compelled subsidy for
speech in the first place.” United Foods, 533 U.S. at 413
(emphasis added).'®

18. The Secretary also seeks to distinguish United Foods and
its progeny by pointing out that those cases involved privately-owned
commodities, whereas alligators are the property of the State of
Louisiana. La. Civ. Code Ann. art. 3413 (West 1994). However, this
case does not involve the marketing of live wild alligators, but the
marketing of products made from lawfully captured and enclosed
alligators, which are private property. See id. arts. 3413, 3415.

19. In Glickman, the Court identified three ways in which the
regulatory scheme at issue was different from laws found to abridge
the First Amendment: (1) the assessments did not bar producers from
communicating their own messages; (2) the assessments did not

(Cont’d)

2la

Appendix A

We recognize that, unlike the assessments at issue in United
Foods, Cochran, and Delano Farms, a majority of the alligator-
related assessments fund programs other than generic marketing.
See United Foods, 533 U.S. at 411-12; Cochran, 359 F.3d at
276; Delano Farms, 318 F.3d at 899. In each of the past several
years, the Council has spent approximately 15% of the Resource
Fund on generic marketing and the remainder on research and
law enforcement. This distinction in the percentage of fees that
go to generic marketing does not support applying Glickman to
this case. The key element of Glickman—a highly collectivized
marketing association—is still absent. The common thread
uniting Abood, Keller, Glickman, and United Foods is that
compelled subsidization of speech is permissible when
individuals have been bound into a collective association. United
Foods, 533 U.S. at 413-15. The fees imposed here, though used
for more than generic marketing, represent a collective
association only in the loosest sense of that term.”°

(Cont'd)

compel the producers to engage in any actual or symbolic speech;
and (3) the assessments did not compel endorsement of any political
or ideological views. 521 U.S. at 469. The Secretary urges us to
consider these factors. However, “[t]hese points were noted in
Glickman in the context of a different type of regulatory scheme and
are not controlling of the outcome.” United Foods, 533 U.S. at 411.
The Court in United Foods was especially careful to emphasize that
the non-political, non-ideological nature of the generic marketing
was irrelevant. /d. at 410-11. Because the compelled subsidies in
this case are materially distinct from the collective marketing scheme
at issue in Glickman, these three factors are irrelevant to this case.

20. The Secretary observed at oral argument that, in other
compelled subsidy cases, courts have struck down entire marketing
(Cont’d)

22a

Appendix A

In sum, Louisiana’s alligator regulations are more
analogous to the mushroom marketing program in United
Foods than to the fruit marketing collective in Glickman.
The use of mandatory fees for generic marketing is not
ancillary to a government-imposed collective association.
Louisiana’s use of the Resource Fund to support generic
marketing therefore violates the First Amendment.’'

(Cont'd)

programs and invalidated the collection of assessments. E.g., United
Foods, 533 U.S. at 408-09; Cochran, 359 F.3d at 280; Mich. Pork,
348 F.3d at 159; Livestock Mktg., 335 F.3d at 713; Delano Farms,
318 F.3d at 897. In contrast, Pelts & Skins does not seek to stop
paying alligator-related fees, but instead challenges only the use of
those fees. The Secretary argues that the limited nature of this
challenge proves that generic marketing is concomitant to other
programs supported by the Resource Fund. Although generic
marketing might be one of a number of alligator-related programs, it
is not ancillary to any associational regulatory scheme, much less
the type of marketing collective at issue in Glickman.

21. The Secretary contends that, even if the alligator marketing
program burdens First Amendment rights, that program survives
constitutional review under the test for restrictions on non-misleading
commercial speech enunciated in Central Hudson Gas & Electric
Corp. v. Public Service Commission, 447 U.S. 557, 566 (1980).

United Foods did not explain if or how the Central Hudson test
applies to compelled subsidy cases, see 533 U.S. at 410, and other
circuits have diverged on this question, compare Mich. Pork, 348
F.3d at 163 (refusing to apply Central Hudson test to compelled
subsidy for generic pork marketing), with Livestock Mktg., 335 F.3d
at 722-726 (adapting Central Hudson test to compelled subsidy for
generic beef marketing).

(Cont’d)

23a

Appendix A
IV.

As the record stands, Pelts & Skins has not proven that it
has standing to challenge use of the Marketing Fund. Therefore,
we vacate the portion of the injunction barring Louisiana from
using the Marketing Fund to support generic alligator marketing
and remand so that the district court may determine whether
Pelts & Skins has standing and modify the injunction
accordingly.

With regard to the remaining challenge, we conclude that
Louisiana’s use of the Resource Fund to support generic
marketing violates the First Amendment. We therefore affirm
the district court’s judgment granting a permanent injunction
against use of the Resource Fund for generic alligator marketing.

AFFIRMED in part, VACATED in part, and REMANDED
in part.

(Cont'd)

We doubt that the Central Hudson test applies. See Glickman, 521
U.S. at 474 n.18 (questioning in dictum “why the Central Hudson test,
which involved a restriction on commercial speech, should govern a
case involving the compelled funding of speech”). Like the Third Circuit,
however, we choose to leave this question open because even were we
to apply the Central Hudson test, Louisiana’s alligator marketing program
would not pass it. See Cochran, 359 F.3d at 277-80. To pass this test, a
restriction on commercial speech must directly advance a substantial
government interest and burden First Amendment rights no more than
necessary to accomplish that interest. Central Hudson, 447 U.S. at 566.
Even granting arguendo that Louisiana has a substantial interest in
conservation and that the message expressed by the Council’s generic
marketing helps advance that interest, Louisiana’s program burdens First
Amendment speech more than necessary. Louisiana does not need to
compel alligator harvesters to support generic marketing, but could
simply fund generic marketing from its general tax revenues.

24a

APPENDIX B — FINDINGS OF FACT AND

CONCLUSIONS OF LAW OF THE UNITED STATES

DISTRICT COURT FOR THE MIDDLE DISTRICT OF
LOUISIANA DATED AND FILED APRIL 24, 2003

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA

CIVIL ACTION
NO. 02-CV-384
PELTS & SKINS, L.L.C.
VERSUS

JAMES JENKINS, JR., SECRETARY OF THE LOUISIANA
DEPARTMENT OF WILDLIFE AND FISHERIES

FINDINGS OF FACT AND CONCLUSIONS OF LAW
PROLOGUE

The Supreme Court has held that the Constitution
prohibits the government from compelling the producers of
mushrooms to pay for generic advertising to which they
object, but allows the government to compel the producers
of peaches to pay for such advertising. Resolution of this
case requires the cou: to determine whether Louisiana
alligator producers are more like mushroom producers than
like peach producers. The answer to that riddle determines
whether a Louisiana statute compelling farmers of alligators
to fund generic advertising treads upon the First Amendment
rights of plaintiff. For reasons that follow, this court

25a

Appendix B

ultimately concludes that the alligator resembles the
mushroom more than the peach, and thus, that the First
Amendment stands between alligator farmers and Louisiana’s
mandatory assessments to pay for a generic alligator
advertising program.

BACKGROUND

This matter came before the court on a motion for
summary judgment by plaintiff, Pelts & Skins, L.L.C. (“Pelts
& Skins”), for judgment in the form of a permanent injunction
against defendant, James Jenkins, Jr., Secretary of the
Louisiana Department of Wildlife and Fisheries (“DWF”)
(doc. 29). Defendant opposes the motion (doc. 36).
Thereafter, the parties agreed that the February 7, 2003
hearing on plaintiff’s motion would serve as a submission
of the case on the merits (doc. 43). All evidence submitted
in support of and in opposition to the motion for summary
judgment, as well as all other exhibits filed at the hearing,
have been received by stipulation of the parties on the merits
of the case. After consideration of the law, evidence, and
arguments of counsel, the court renders its findings of fact
and conclusions of law in accordance with Fed.R.Civ.P. 52(a),
as follows:

FINDINGS OF FACT

1. Plaintiff’s alligator farming operation is conditioned upon
payment of certain mandatory fees (“license fees” and
“tag fees”) to the DWF. These fees are deposited into
both the Louisiana Fur and Alligator Public Education
and Marketing Fund and the Louisiana Alligator Resource

26a

Appendix B

Fund. A portion of revenues from these funds is then used
by the DWF, as recommended by the Alligator Advisory
Council, to finance generic marketing of alligator products
without differentiating any particular type, quality, or brand
of alligator product.' For example, the DWF’s public
education and marketing programs are primarily carried out
by Don Ashley and Christine Brewton. Ashley attends trade
shows, implements and designs airport booths, and produces
literature promoting alligator products. Brewton visits
various fashion houses promoting Louisiana alligator
products and has implemented various educational
information materials setting forth the “marsh to market”
program of alligator skins.

2. Plaintiff has its own internal system of grading quality.
Its marketing strategy is based on communicating the
quality and uniqueness of its branded alligator product.
Plaintiff does the majority of its business in Europe.

3. Plaintiff is “vehemently”* opposed to the DWF’s
marketing message, even if, as the DWF argues, generic

1. In its answer, defendant admits to plaintiff’s statement in the
complaint that “[t]he marketing efforts approved and authorized by
DWF through Mr. Jenkins and thereby funded by the Alligator
Marketing Fund and the Alligator Resource Fund are generic in the
sense that they promote alligator products or Louisiana’s alligator
products in general, without differentiating any particular type, quality
or brand of alligator products (hereafter, ‘DWF’s Generic
Marketing’).” Complaint for Injunctive Relief, § 21.

2. It is not clear to the court that vehemence is of constitutional
significance, but since plaintiff insists upon so describing its stance,
let it be duly noted for the record that plaintiff not only objects, but
“vehemently” objects to the message of state’s advertising program.

27a
Appendix B

marketing does not dilute product image in the mind of the
consumer and does not reduce producer profits by lowering
prices.’

4. According to the DWF’s expert, Charles C. Theriot, of the
total alligator industry related revenues received in the fiscal
year ending 2002, approximately 92% were credited to the
Resource Fund and 6% to the Education and Marketing
Fund. From 1997 to 2002, the total alligator-related generic
advertising and marketing expenditures made by the DWF
from the Resource Fund were: 1% in 1997, 15% in 1998;
16% in 1999; 20% in 2000; 16% in 2001; and 14% in 2002.

5. Mr. Theriot also calculates that if educational expenditures
made by the DWF are included as part of the DWF’s
alligator-related generic advertising and marketing
expenditures and are included with those expenditures, then
the total alligator-related generic advertising and marketing
expenditures as a percentage of the total revenues realized
by the DWF were: 1% in 1997, 9% in 1998, 12% in 1999,
22% in 2000, 16% in 2001, and 21% in 2002.*

3. Any weight placed by either plaintiff or defendant upon the
effectiveness of the generic marketing is irrelevant. For First
Amendment purposes, it is enough that plaintiff is opposed to the
marketing message and that plaintiff is one of a small part of society
that is compelled to pay the cost of such advertising.

4. The court is aware of plaintiff’s argument that Mr. Theriot’s
report fails to specify the criteria used to determine whether a
particular expenditure was for generic marketing and that the report
does not account for generic marketing financed by the Education
and Marketing Fund.

28a
Appendix B

6. Defendant argues in brief that licensing fees are the only
sources of income for the Education and Marketing Fund
and are de minimis compared to the tag fees that account
for the majority of the Resource Fund. Defendant argues
further that the percentage of the total income used for
generic marketing and public education is less than 25%
of the annual funds received and that approximately 75%
is used for maintaining proper research habitat, law
enforcement, and so on. First of all, plaintiff maintains
that it exports in excess of 80,000 raw skins per year and
pays annual tag fees in excess of $320,000. Moreover,
Mr. Theriot’s report maintains that the plaintiff’s own
alligator-related payments were approximately 22.6%,
25.4%, and 25.1% of the total alligator-related revenue
realized by the DWF from all sources for the fiscal years
ending 2000, 2001, and 2002, respectively. The fact that
plaintiff was responsible for approximately one quarter
of the DWF’s alligator revenue undermines defendant’s
de minimis argument. To trample upon one’s First
Amendment rights “just a little vit” does not rectify the
fact that those rights are being trampled upon.

7. The DWF controls and supervises all wildlife within the
state, including fish, and is charged with management,
protection, conservation, and replenishment of the
wildlife and fish. The DWF also regulates the shipping
of skins. La.R.S. 36:602(B).

8. The DWF has statutory authority to establish regulations
and licensing procedures regarding the taking, possessing,
and shipping of all alligators, raw alligator skins, and
alligator parts. La.R.S. 56:251(A)(2)(a)(ii1).

29a

Appendix B

9. Pursuant to La.R.S. 56:253(C)(1), every resident
alligator hunter or farmer or nonresident alligator hunter
must attach a tag to any out-of-state shipment of
alligators or alligator skins. The tag must be secured
from the DWF and must bear a certain color and serial
number. Before shipping alligator or raw alligator skins
out of state, La.R.S. 56:253(C)(2)(a) requires resident
alligator hunters and farmers and nonresident hunters
to pay to the DWF an alligator shipping label fee for
each alligator and an alligator hide tag fee for each raw
skin. The alligator shipping label fee and the alligator
hide tag fee may be no more than four dollars per
alligator or skin.° No alligator part may be shipped out
of state without having affixed a !abel bearing the DWF
license number and other information to the shipment.
La.R.S. 56:253(D).

10. Every resident alligator hunter must pay a $25 annual
license fee to DWF before commencing business.
La.R.S. 56:251(2)(a)(i). Payment of an additional $25
entitles a duly licensed resident alligator hunter to
another license authorizing him to be accompanied
by one resident assistant while hunting. La.R.S.
56:25 1(2)(a)(i1). Only bona fide residents may apply for
a resident alligator hunter’s license. La.R.S. 56:252(A).

5. “[H]owever, the alligator shipping label fee and the alligator
hide tag fee shall each be reduced in any fiscal year by rule or
regulation of the commission in an equal amount equivalent to any
amount of additional revenues received into the Louisiana Alligator
Resource Fund from the state general fund or sources other than
alligator-related fees established pursuant to this Title.” La.R.S.
56:253(C)(2)(a). The state currently charges two dollars for each tag.

11.

12.

30a

Appendix B

The Louisiana Alligator Resource Fund, intended to
defray the cost of alligator programs, is established by
La.R.S. 56:279. This Fund is maintained by revenues
received by the state from tag fees imposed on alligator
hunters, alligator farmers, alligator shipping label fees
on the sale of alligators, and all revenues derived from
any other alligator-regulated fees and from the severance
tax on alligator skins provided for in La.R.S. 56:256.

La.R.S. 56:279(C)(1).°

Pursuant to La.R.S. 56:279(B)(1)-(5), the Resource

Fund’s five specific goals are as follows:

(1) To provide salaries and financial support
including associated indirect cost for the following
positions, to provide a minimum of two full-
time technical positions (biologists) and eight
nontechnical positions such as computer
operators, secretaries, and wildlife specialists
existing within the fur and refuge division of the
Louisiana Department of Wildlife and Fisheries.

(2) To assist with funding for law enforcement
activities associated with the alligator farm
industry when surplus funds are available and
recommended by the Louisiana Fur and Alligator
Council.

(3) To assist with funding marketing programs
recommended by the Louisiana Fur and Alligator

6. In 2002, the tag fees comprised 79% of the Resource Fund total.

3la

Appendix B

Advisory Council’ when surplus funds are
available.

(4) To actively fund research on all aspects
involved with alligator conservation and to
develop the techniques needed to enhance the
commercial alligator industry.

(5) To assist in funding management of the
alligator population through proper management,
harvest, and farm facility management.

(Emphasis added).

13. The Louisiana Fur and Alligator Public Education
and Marketing Fund is established by La.R.S. 56:266.
This Fund is maintained by the $25 license fees imposed
upon trappers and alligator hunters as required by
La.R.S. 56:251.°

14. Pursuant to La.R.S. 56:266(B)(1)-(7), the Education and
Marketing Fund’s seven specific goals are as follows:

(1) To educate the public regarding the need for
trapping as a sound wildlife management tool and
regarding the logic of managing furbearing species
and alligators as renewable resources.

7. As established by La.R.S. 56:266(C).

8. Twenty dollars of each twenty-five dollar alligator hunting
license sold goes to the Education and Marketing Fund. La.R.S.
56:266(D)(1).

32a
Appendix B

(2) To identify the current consumers of Louisiana
furs and alligator hides.

(3) To identify present and potential Louisiana fur
and alligator marketing problems, obstacles, and
related significant issues.

(4) To strengthen existing markets and develop new
markets and marketing strategies for raw and
finished Louisiana fur and alligator products.

(5) To develop and implement an international
advertising campaign to promote the utilization of
raw and finished Louisiana fur and alligator
products.

(6) To examine, evaluate, and make recommenda-
tions concerning any aspect of the fur and alligator
industry including habitat management, harvest, and
marketing which will enhance the future of the in-
dustry and perpetuate the conservation of these spe-
cies.

(7) To make specific recommendations to the
secretary regarding the expenditures of monies from
the Alligator Resource Fund including any annual
surplus only as provided for in R.S. 56:279.

(Emphasis added).

i

15.

16.

33a

Appendix B

The Louisiana Fur and Alligator Advisory Council
reviews and approves recommended procedures and
programs to be funded from the Public Education and
Marketing Fund and the Resource Fund, to ensure that
fund revenues are expended for the Council’s specific
goals. La.R.S. 56:266(C).

Though Louisiana’s statutory scheme is comprehensive
and designed to protect a once-endangered species, the
DWF is not statutorily authorized and has never
attempted to regulate to whom alligator farmers may
sell their skins, the manner in which farmers promote
and market their skins, or the price at which farmers
must sell their skins on the open market.?

CONCLUSIONS OF LAW

The Tax Injunction Act of 1937

Jurisdiction is based upon 28 U.S.C. § 1331. After
consideration of the parties’ post-hearing memoranda
(docs. 44 and 45) regarding jurisdictional questions
posed by the Tax Injunction Act, 28 U.S.C. § 1341, the

ae

9. The defendant places much weight on the alligator’s former

status as endangered, maintaining that if left unregulated, alligators
threaten to recess back into endangerment. While state regulations
may have had a hand in alligator regeneration, that is not reason
enough to save a statute that stands in violation of the First
Amendment. This is especially true when the maintenance of the
alligator population could easily be achieved without generic
advertising or when generic advertising could be funded through
general, independent sources.

34a

Appendix B

court concludes that the Act does not bar this action.
First, Pelts & Skins does not seek to enjoin the
“collection” of any monies (that is, plaintiff does not
seek to enjoin the DWF from assessing the fees), but
rather, seeks only to enjoin the Secretary from funding
generic marketing with these fees. Second, the “fees”
in question do not amount to “taxes” for purposes of
the Act. See Home Builders Ass'n of Mississippi, Inc.
v. City of Madison, Mississippi, 143 F.3d 1006, 1011
(Sth Cir. 1998) (“[T]he classic tax sustains the essential
flow of revenue to the government, while the classic
fee is linked to some regulatory scheme. The classic tax
is imposed by a state or municipal legislature, while the
classic fee is imposed by an agency upon those it
regulates. The classic tax is designed to provide a benefit
for the entire community, while the classic fee !s
designed to raise money to help defray an agency’s
regulatory expenses.” (footnotes omitted)); Goetz v.
Glickman, 920 F.Supp. 1173, 1181 (D.Kan. 1996), aff'd,
149 F.3d 1131 (10th Cir. 1998) (noting that assessments
under the Beef Promotion and Research Act were not
direct taxes, since “[a] regulatory scheme will not
constitute a tax unless the real purpose and effect of the
statute and regulations promulgate” thereunder is to
raise revenues for the general support of the
government.” (citations omitted)).

Considering the foregoing, the mandated fees used for
generic advertising are “contrary to the First Amendment
principles set forth in cases involving expression by
groups which include persons who object to the speech,
but who, nevertheless, must remain members of the

er ee cs

35a

Appendix B

group by law or necessity.” United States v. United Foods,
Inc., 533 U.S. 405, 413, 121 S.Ct. 2334, 2339, 150 L.Ed.2d
438 (2001).

Government Speech

3. The DWF contends that the speech espoused through the
generic advertising and public education programs is
government speech since the state maintains a degree of
editorial control, is the literal speaker, and is ultimately
responsible for the speech. The defendant cites several
cases in furtherance of its strong contention."®

4. Theessence of government speech is when the government
speaks in favor ofa public policy. See, e.g., Rust v. Sullivan,
500 U.S. 173 (the federal government is free to determine
how appropriated general tax money could be used—
“the government may ‘make a value judgment favoring
childbirth over abortion, and. . . implement that judgment
by the allocation of public funds.’” Jd. at 192-193)."

10. Bd. of Regents of the Univ. of Wisconsin Sys. v. Southworth,
529 U.S. 217, 120 S.Ct. 1346, 146 L.Ed.2d 193 (2000); Rust v. Sullivan,
500 U.S. 173, 111 S.Ct. 1759, 114 L.Ed.2d 233 (1991); Central Hudson
Gas & Elec. Corp. v. Pub. Serv. Comm'n, 447 U.S. 557, 100 §.Ct. 2343,
65 L.Ed.2d 341 (1980); Sons of Confederate Veterans, Inc. v. Comm 'r
of the Virginia Dep t of Motor Vehicles, 288 F.3d 610 (4th Cir. 2002);
and Downs v. Los Angeles Unified Sch. Dist., 228 F.3d 1003 (9th Cir.
2000), cert. denied, 532 U.S. 994, 121 S.Ct. 1653, 149 L.Ed.2d 636
(2001).

11. Neither of the two main cases at issue, Glickman v. Wileman
Bros. & Elliott, Inc., 521 U.S. 457, 117 S.Ct. 2130, 138 L.Ed.2d 585
(1997) nor United Foods, 533 U.S. 405, address the issue of government
speech. See Glickman, 521 U.S. at 483 n. 2; United Foods, 533 U.S.
at 416.

36a

Appendix B

In Abood v. Detroit Board of Education, 431 U.S. 209,
97 S.Ct. 1782, 52 L.Ed.2d 261 (1977), teachers
sought a declaration that the “agency shop” clause of
the collective bargaining agreement was invalid.
The Court held, in part, that though the clause was
valid insofar as it financed collective bargaining,
contract administration, and grievance adjustments, First
Amendment principles prohibited the union and the
Board of Education from requiring any teacher to
contribute (as a condition of employment as a public
school teacher) to the support of an ideological cause
he might oppose. In his concurren

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385017_1563%3A1. Public record. Not legal advice.
