ZitatCalifornia Government Code § 8195 provides that “The State of California may not sell or display the Battle Flag of the Confederacy, also referred to as the Stars and Bars, or any similar image, or tangible personal property, inscribed with such an image unless the image appears in a book, digital medium, or state museum that serves an educational or historical purpose.” Read narrowly, this would be constitutional: The California Legislature is generally free to decide what speech the state engages in.
But it looks as though the state is now reading this as prohibiting even the display of private citizens’ paintings in venues such as County Fair art shows, and even in a context where basically all other submissions are displayed (so that the government isn’t just selecting a few paintings for display because it thinks they are the best). A lawsuit filed by the Center for Individual Rights argues that this violates the First Amendment:
It's an art competition at a bloody county fair for heaven's sake. Even the Leftist "LA Times" calls this application of the law "absurd". http://www.latimes.com/opinion/editorials/