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FratAmerica, in that case, SDS was denied recognition due to its political stance, not because it had violated any university policy related to an important government objective. That's a First Amendment violation.
"Substantial justification relating to actual disruption of the campus or illegal conduct" is exactly what UF is talking about regarding fraternities. Unfortunately, universities have very good reason to believe that fraternities left to establish and enforce their own standards will disrupt the campus (i.e. cause expensive lawsuits to be filed against the university) and commit illegal acts (i.e. hazing), and UF, in this case, has gone to great lengths to "substantially justify" the requirements fraternities must meet to retain recongition. The case you cite supports my point.
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