Matt Krause of First Liberty Institute says HB 71, which applies to every public school and university in Louisiana, would put a copy of the Ten Commandments in every state-funded classroom.
The law was passed by Louisiana's Republican-controlled legislature last year and says the text of the Ten Commandments must be written in "large, easily readable font."
"That's what was found unconstitutional by this panel," Krause relays.

Last June, a group of parents sued the state over concerns the law that went into effect in January violates the "separation of church and state."
In November, the district court issued a preliminary injunction on the law in the five school districts that involve plaintiffs.
"It's disappointing but hardly surprising," Krause says of this latest ruling.
But First Liberty knew there was a good chance these three federal appellate judges on the 5th U.S. Circuit Court of Appeals might lean this way.
Krause assures AFN this is "by no means the last word" on HB 71. Louisiana Attorney General Liz Murrill (R) intends to pursue getting the case before the full 5th Circuit and, if necessary, the U.S. Supreme Court, and First Liberty is confident the law will ultimately be upheld.
"This is a temporary roadblock," Krause says. "Disappointing, but hardly surprising. We look forward to having HB 71 vindicated in a future hearing by the court."
Arkansas has a similar law, and other Republican states are on the verge of similar laws.