Comparison of Proposed Charitable Choice Act of 2001 with Current Charitable Choice Law

CRS Report for Congress
Comparison of Proposed Charitable Choice Act of
2001 with Current Charitable Choice Law
June 22, 2001
Vee Burke
Specialist in Social Legislation
Domestic Social Policy Division


Congressional Research Service ˜ The Library of Congress

Comparison of Proposed Charitable Choice Act of 2001
with Current Charitable Choice Law
Summary
This report provides a side-by-side comparison (Table 1) of the charitable
choice provisions of H.R. 7 with those of the 1996 welfare reform law (P.L. 104-193)
and of later laws that extended charitable choice rules to the Community Services
Block Grant Act (P.L. 105-285) and to substance abuse treatment and prevention
services under the Public Health Service Act (P.L 106-310 and P.L. 106-554).1
Common Provisions. The Charitable Choice Act (Title II of H.R. 7) and the
four existing charitable choice laws provide that participating religious organizations
shall retain their independence from government, including control over the
definition, development, practice, and expression of their religious beliefs. All
prohibit government from requiring religious organizations to alter their form of
internal governance, or to remove religious art, icons, scripture, or other symbols; all
provide that the exemption of religious organizations under Section 702 of the Civil
Rights Act regarding hiring and firing is not affected by their participation in, or
receipt of funds from programs covered by charitable choice. With one exception
(Community Services Block Grant Act) all five measures provide that if a beneficiary
or applicant objects to the religious character of the organization providing help, an
alternate and accessible provider must be made available. With the same exception,
all measures forbid a religious organization from discriminating against a beneficiary
or applicant on the basis of religion or religious belief. All charitable choice
measures place limits on use of federal funds for sectarian activities. In general, they
prohibit use of funds provided directly to a faith-based organization (by contract or
grant) for sectarian worship, instruction, or proselytization. With one exception (the
1996 welfare law) all measures require religious organizations to segregate
government funds into a separate account and stipulate that the government may
audit only the government funds.
Differing Provisions. Two of the laws (the 1996 welfare law and one of the
substance abuse measures) prohibit discrimination by a faith-based provider against
a beneficiary for refusal to actively participate in a religious practice — prohibiting
denial of services for this refusal. H.R. 7 does not contain this prohibition. H.R. 7
alone explicitly allows a faith-based provider, notwithstanding any other law, to
require its employees to “adhere to its religious practices.” H.R. 7 and the two
substance abuse measures require the government to notify beneficiaries and
applicants of their right to an alternate provider. The 1996 welfare reform law is the
only measure to state that its charitable choice provisions do not preempt any
provision of state law that prohibits or restricts spending of state funds in or by
religious organizations.


1 The major substantive difference between P.L. 106-310 and P.L. 106-554 is that the latter
requires states to accept training provided to personnel by religious organizations if the
training is substantially equivalent to credit-eligible training provided by nonreligious
organizations and if the organization has a record of successful drug treatment for the
preceding 3 years.

Contents
Background ..................................................1
Major Arguments of Supporters..................................2
Major Arguments of Opponents..................................2
Title ............................................................3
Short Title.......................................................3
Purposes .........................................................4
Programs Covered.................................................5
Inclusion of Religious Organizations as Nongovernmental Providers.........7
Requirement for Consistency with the First Amendment to the Constitution....8
Prohibition on Discrimination Against Religious Organizations.............9
Funds Not Construed to Be Aid to Religious Organization.................10
Funds Not Construed to Be Endorsement of Religion.....................11
Religious Character and Independence................................11
Employment Practices.............................................13
Rights of Beneficiaries.............................................16
Nondiscrimination Against Beneficiaries..............................19
Limitation on Use of Funds for Sectarian Activities .....................20
Fiscal Accountability..............................................21
Treatment of Intermediate Contractors (Nongovernmental Organizations
Acting under Contract or Other Agreement with a Government Entity)..22
Compliance .....................................................23
Preemption of Other Law?..........................................24
List of Tables
Table 1. Comparison of Charitable Choice Act of 2001 with Current
Charitable Choice Law.........................................3



Comparison of Proposed Charitable
Choice Act of 2001 with Current
Charitable Choice Law
Background
Charitable choice is a set of provisions in law intended to allow religious
organizations to provide federally funded services from specifically named programs
on the same basis as any other nongovernmental provider without impairing the
religious character of the organizations or the religious freedom of recipients.
Charitable choice does not contain special funding for faith-based organizations and
it applies only to programs designated by Congress.
The 1996 welfare reform law (P.L. 104-193) put the first charitable choice
language into federal law, applying it to the block grant program of Temporary2
Assistance for Needy Families (TANF). In 1998, Congress extended charitable
choice rules to grants under the Community Services Block Grant Act (P.L. 105-285)
and, in 2000, to grants for prevention and treatment of substance abuse under the
Public Health Service Act (P.L. 106-310 and P.L. 106-554).
The 2000 Republican platform proposed to apply charitable choice to all federal
social service programs. In their 2000 platform, Democrats said they believed that
faith-based programs should augment — not replace — government programs. H.R.
7 proposes to apply charitable choice rules, somewhat modified from those of the
TANF law, to 11 program areas and activities. TANF’s charitable choice rules apply
to a wide range of activities, some of which may overlap with activities listed in H.R.

7.


Sponsored by Representative Watts and introduced on March 29 as the
Community Solutions Act of 2001, H.R. 7 was referred to the Committees on Ways
and Means and the Judiciary. The measure embodies two major components of
President Bush’s faith-based initiative — namely, tax incentives to expand private
giving (Title I) and expansion of charitable choice. (Title III proposes a permanent
program of Individual Development Accounts, financed with tax credits.) The H.R.
7 charitable choice proposal has resulted in several congressional hearings (the first
ever conducted on charitable choice) and has aroused much controversy. As of June

25, the Charitable Choice Act had not been introduced in the Senate.


2 The 1996 law also applied charitable choice rules to food stamps, Medicaid, and
Supplemental Security Income — to the extent that they use contracts or vouchers.

Major Arguments of Supporters
!To fund only secular programs discriminates against religious
programs. It is just as inappropriate for government to favor non-
religion as to promote one religion over another.
!Faith-based programs can attract large amounts of volunteer time;
staff have a sense of mission that inspires those they serve; these
organizations often help in ways that government cannot, providing
love as well as services, guidance and friendship as well as a meal
or training.
!Charitable choice has been carefully written to protect constitutional
values.
!Charitable choice rules protect the religious character of faith-based
providers. they specify that religious organizations shall retain
control over the definition, development, practice, and expression of
their religious beliefs.
!Charitable choice rules protect the religious liberty of beneficiaries;
they require that if a recipient objects to the religious character of the
provider, the government must provide an alternate and accessible
provider.
Major Arguments of Opponents
!Charitable choice may lead to unconstitutional use of government
funds to promote a specific religious practice or belief.
!Since money is interchangeable, government funds given for a
secular purpose could indirectly help to fund the organization’s
religious purposes, undermining governmental neutrality toward
religion.
!Charitable choice rules would require government to decide what is
a legitimate religion and what is not, what is preaching and what is
not.
!Direct government grants to religious groups could make churches
dependent on government, eroding their mission and tending to
secularize them.
!Charitable choice promotes government-funded discrimination by
allowing religious organizations that receive federal dollars for their
services to hire and fire on the basis of religious beliefs.



CRS-3
Table 1. Comparison of Charitable Choice Act of 2001 with Current Charitable Choice Law
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Title
Provision of assistanceServices provided byReligious organizationsNondiscrimination andPrevention and
under governmentcharitable, religious, orincluded asinstitutional safeguardstreatment of substance
iki/CRS-RL31030programs by religiousand communityprivate organizations. [Section 104]nongovernmentalproviders.for religious providers.abuse; servicesprovided through
g/worganizations. [Section 3305, as titledreligious organizations.
s.or[Section 679, as titledabove, added to Title
leak
Would enact a newabove, was added byXIX of Public Health[Section 144 , Subtitle
://wikiSection 1994A in TitleSection 201 to theService Act a newE, of H.R. 5662, added
httpXXIV of the RevisedCommunity ServicesSection 1955.]to Title V of Public
Statutes. Block Grant Act.]Health Service Act a
[Section 201]new Part G, entitled
“services provided
through religious
organizations.”]
Short Title
Charitable Choice Act ofNoneNoneNoneNone


2001. [Section

1994A(a)]



CRS-4
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Purposes
(1) To provide assistanceTo allow states toNo statement ofTo prohibitTo allow religious
to needy individuals andcontract with religiouspurpose.discrimination againstorganizations to be
families in the mostorganizations (and tonongovernmentalprogram participants
effective and efficientallow religiousorganizations andon the same basis as
manner;organizations to acceptcertain individuals onany other nonprofit
(2) To prohibitcertificates, vouchers,the basis of religion inprivate provider
iki/CRS-RL31030discrimination againstor any other forms ofthe distribution ofwithout impairing the
g/wreligious organizationsdisbursement) undergovernment funds toreligious character of
s.oron the basis of religion inany covered program onprovide substancethe organizations and
leakthe administration andthe same basis as anyabuse services underwithout diminishing
://wikidistribution ofgovernment assistanceother nongovernmentalprovider — withoutthis Title (XIX) andTitle V, and the receiptthe religious freedomof program
httpunder covered programs;impairing the religiousof services under thesebeneficiaries. [Section
(3) To allow religiouscharacter of thetitles; and to allow the582(b)]


organizations to assist inorganizations, andorganizations to accept
the administration andwithout diminishing thethe funds to provide
distribution of assistancereligious freedom ofservices without
without impairing theirbeneficiaries. [Sectionimpairing the religious
religious character; and104(b)]character of the
(4) To protect theorganizations or the
religious freedom ofreligious freedom of
those in need who arethe individuals.
eligible for government[Section 1955(a)]
aid, including expanding
the possibility of their
choosing to receive
services from a religious
organization. [Section

1994A(b)]



CRS-5
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Programs Covered
A program using federalTemporary AssistanceAny program carriedAny programDiscretionary and
funds that carries outfor Needy Familiesout by the federalproviding substanceformula grant
activities that are:(TANF) and Welfare-government or by aabuse services underprograms (Titles 5 and
— related to theto-Work grants.state or localTitle 19 (formula block19, respectively)
prevention and treatmentgovernment under thegrants) and Title 5administered by the
of juvenile delinquencyAny other programCommunity Services(discretionary grants)Substance Abuse and
iki/CRS-RL31030and the improvement ofmodified or establishedBlock Grant program.of the Public HealthMental Health Services
g/wthe juvenile justiceunder Titles I or II of[Section 679(a)]Service Act. [SectionAdministration that
s.orsystem, including thoseP.L. 104-193 that1955(a)(1)]award financial
leakfunded under thepermits contracts withassistance to public or
://wikiJuvenile Justice andDelinquency Preventionorganizations or permitscertificates, vouchers,private entities to carryout activities to prevent
httpAct;or other forms ofor treat substance
— related to preventiondisbursement to beabuse. [Section 581]


of crime, includingprovided to
programs funded underbeneficiaries, as a
Title I of the Omnibusmeans of providing aid.
Crime Control and Safe[Section 104 (a)(2)]
Streets Act;
— under federal housingThese programs are
laws;food stamps, Medicaid,
— under Title I of theand Supplemental
Workforce InvestmentSecurity Income (SSI)
Act;— to the extent that
— under the Olderthey are administered
Americans Act;through contracts or
— under Child Care andvouchers with
Development Blockanongovernmental
Grant (CCDBG) Actagencies. They

CRS-6
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
(see endnote for existinggenerally are
law and regulationsadministered directly by
governing religiouspublic agencies, and
providers of CCDBGfederal law requires that
funds);eligibility for Medicaid
— under the Communityand food stamps be
Development Blockdetermined by a public
Grant;official. Food stamps
— related to theand Medicaid allow
iki/CRS-RL31030intervention in andstates to use private
g/wprevention of domesticorganizations, including
s.orviolence;religious ones, in
leak — under the Job Accessproviding services.


and Reverse Commute
://wikigrant program under the
httpFederal Transit Act; and
— to assist students
obtain equivalents of
secondary school
diplomas and activities
relating to non-school-
hour programs.
Note: Activities carried
out under federal
programs providing
education to children
eligible to attend
elementary or secondary
schools are not covered
— unless they are
provided under one of
the above-listed

CRS-7
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
authorities or are
diploma-equivalent or
non-school-hour
programs. Section

1994A(c)(4)]


Inclusion of Religious Organizations as Nongovernmental Providers
iki/CRS-RL31030For a covered programAuthorizes states (1) toFor a covered programA state that chooses toNotwithstanding any
g/wcarried out by the federaladminister and providecarried out by theuse nongovernmentalother provision of law,
s.orgovernment, or by a stateservices under coveredfederal government, ororganizations toa religious organization
leakor local government withprograms throughby a state or localprovide services undermay receive financial
federal funds, thecontracts withgovernment with federala covered programassistance and be a
://wikigovernment shallcharitable, religious, orfunds, the governmentshall consider religiousprovider of services
httpconsider religiousprivate organizations,shall consider religiousorganizations on theunder a covered
organizations on theand (2) to provideorganizations on thesame basis as otherprogram on the same
same basis as other non-beneficiaries of coveredsame basis as othernongovernmentalbasis as any other
governmentalprograms withnongovernmentalentities, subject to thenonprofit private
organizations, subject tocertificates, vouchers,organizations, subject toprovision immediatelyprovider. [Section
provision immediatelyor other forms ofprovision immediatelybelow. [Section582(a)]


below. [Sectiondisbursementbelow. [Section 679(a)]1955(b)(2)]
1994A(c)(1)(A)]redeemable with
charitable, religious, or
private organizations.
[Section 104(a)(1)]

CRS-8
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Requirement for Consistency with the First Amendment to the Constitution
The nondiscriminationIf a state uses thisThe nondiscriminationThe nondiscriminationThe nondiscrimination
provision above appliesauthority, religiousprovision above appliesprovision aboveprovision above
if the program isorganizations areso long as the programapplies so long as theapplies as long as the
implemented in a mannereligible, on the sameis implemented in a programs areprograms are
consistent with thebasis as any othermanner consistent withimplemented in a implemented
Establishment and Freeprivate organization, tothe Establishmentmanner consistent withconsistent with the
iki/CRS-RL31030Exercise Clauses of thebe contractors, or toClause of the firstthe EstablishmentEstablishment and the
g/wfirst amendment to theaccept certificates,amendment to theClause of the firstFree Exercise Clauses
s.orConstitution.vouchers, or otherConstitution. [Sectionamendment to theof the first amendment
leak[Sectionforms of disbursement679(a)]Constitution. [Sectionto the Constitution.
://wiki1994A(c)(1)(A)]under a coveredprogram — so long as1955(b)(2)][Section 582(c)]


httpthe program is
implemented consistent
with the Establishment
Clause of the first
amendment to the
Constitution.
[Section104(c)]

CRS-9
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Prohibition on Discrimination Against Religious Organizations
Neither the federalUnless state law forbidsSame as H.R. 7. Same as H.R. 7.Same as H.R. 7.
government, nor a stateor restricts spending of[Section 679(a)][Section 1955(b)(2)](Section 582 (c)(2)]


or local governmentstate funds by religious
receiving funds under abodies, neither the
covered program mayfederal government nor
discriminate against ana state receiving funds
iki/CRS-RL31030organization thatunder a covered
g/wprovides assistance orprogram may
s.orapplies to providediscriminate against an
leakassistance under theorganization that is or
://wikiprogram, on the basisthat the organization hasapplies to be acontractor or that
httpa religious character.accepts certificates,
[Section1994A(c)(1)vouchers, or other
(B)]forms of disbursement,
on the basis that the
organization has a
religious character.
[Section 104(c)]

CRS-10
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Funds Not Construed to Be Aid to Religious Organization
Federal, state, or localNo provisionNo provisionNo provisionNo provision


government funds or
other assistance received
by a religious
organization for the
provision of services
iki/CRS-RL31030under this Act constitutes
g/waid to needy individuals
s.orand families, the ultimate
leakbeneficiaries of the
://wikiservices, and not aid tothe religious
httporganization. [Section

1994A(c)(2)]



CRS-11
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Funds Not Construed to Be Endorsement of Religion
The receipt by a religiousNo provisionNo provisionNo provisionNo provision
organization of federal,
state, or local
government funds or
other assistance under
this Act is not and should
iki/CRS-RL31030not be perceived as an
g/wendorsement by the
s.orgovernment of religion
leakor the organization’s
://wikireligious beliefs orpractices. [Section
http1994A(c)(3)]
Religious Character and Independence
A religious organizationA religious organizationA religious organizationA religiousAny religious
s practicesthat provides assistancehaving a contract with athat provides assistanceorganization thatorganization that is a
under a covered programcovered program orunder a coveredprovides services underprogram participant
shall retain its autonomywhich acceptsprogram shall retain itsa covered programshall retain its
from federal, state, andcertificates, vouchers,religious character andshall retain itsindependence from
local governments,or other forms ofcontrol over theindependence fromfederal, state, and local
including its control overdisbursement under adefinition, development,federal, state, or localgovernment, including
the definition,covered program,practice, and expressiongovernments, includingits control over the
development, practice,retains its independenceof its religious beliefs.its control over thedefinition,
and expression of itsfrom federal, state, and[Section 679(b)(1)]definition,development, practice,
religious beliefs. local governments,development, practice,and expression of its
[Section 1994A(d)(1)]including its controland expression of itsreligious beliefs.



CRS-12
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
over the definition,religious beliefs.[Section 582(d)(1)]
development, practice,[Section 1955(c)(1)]
and expression of its
religious beliefs.
[Section 104(d)(1)]
eligious symbolsNeither the federalNeither the federalNeither the federalNeither the federal norNeither the federal
government nor a state orgovernment nor a stategovernment nor a statea state or localgovernment nor a state
iki/CRS-RL31030local government shallmay require a religiousmay require a religiousgovernment shallshall require a religious
g/wrequire a religiousorganization to alter itsorganization to alter itsrequire a religiousorganization to alter its
s.ororganization to alter itsform of internalform of internalorganization to alter itsform of internal
leakform of internalgovernance, or to governance, except (forform of internalgovernance or remove
governance; or to removeremove religious art,purposes ofgovernance or toreligious art, icons,
://wikireligious art, icons,icons, scripture, or otheradministration of theremove religious art,scripture, or other
httpscripture, or othersymbols in order to becommunity servicesicons, scripture, orsymbols. [Section
symbols because they areeligible to contract toblock grant program) asother symbols in order582(d)(2)]


religious, in order to beprovide assistance or toprovided in Sectionto be eligible to
eligible to provideaccept certificates,676B; or to removeprovide services under
assistance under avouchers, or otherreligious art, icons,any covered program.
covered program. forms of disbursementscripture, or other[Section 1955(c)(2)]
[Section 1994A(d)(2)]funded under a coveredsymbols in order to be
program. [Sectioneligible to provide
104(d)(2)]services under a covered
program. [Section

679(b)(2)]



CRS-13
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Employment Practices
vil RightsThe exemption of aA religiousThe exemption of a The exemption of aThe exemption of a
emptionreligious organization organization’sreligious organizationreligious organizationreligious organization
under Sections 702 orexemption underunder Section 702 of theunder Sections 702 orunder Section 702 of
703(e)(2)b of the CivilSection 702 of the CivilCivil Rights Act703(e)(2) regardingthe Civil Rights Act
Rights Act regardingRights Act regardingregarding employmentemployment practicesshall not be affected by
employment practices isemployment practices ispractices shall not beshall not be affected byits participation in, or
iki/CRS-RL31030not affected by itsnot affected by itsaffected by itsits provision ofreceipt of funds from, a
g/wprovision of assistanceparticipation in, orparticipation in, orservices under, orcovered program.
s.orunder, or receipt of fundsreceipt of funds, fromreceipt of Communityreceipt of funds from[Section 582(e)]
leakfrom, a covered program. covered programs.Block Grant Act funds.any covered program.
://wiki[Section 1994A(e)(2)][Section 104(f)][Section 679(b)(3)][Section 1955(d)(2)]
http
otherNothing in this Act altersNothing in theNo program or activityNo provisionNothing in this section.
ws forbidding the duty of a religiouscharitable choicefunded under theshall be construed to
scriminationorganization to complyprovisions of P.L. 104-Community Servicesmodify or affect any
with federal laws193 is to be construed toBlock Grant Act mayother federal or state
prohibitingpreempt a provision of adiscriminate against alaw or regulation
discrimination on thestate constitution or lawperson on the basis ofrelating to
basis of: race, color, orthat prohibits orrace, color, nationaldiscrimination in
national origin (Title VIrestricts spending oforigin, or sex. employment. [Section
of the Civil Rights Act);state funds in or byPrograms are subject to582(e)]
sex, blindness, or visualreligious organizations.rules against
impairment (Title IX of[Section 104(k)]discrimination on theNote: Title 19 of the
the Educationbasis of age or disabilityPublic Health Service



CRS-14
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Amendments of 1972);(Age DiscriminationAct says that on
disabilities (of otherwiseAct, Section 504 of thegrounds of religion, no
qualified persons)Rehabilitation Act, andperson shall be
(Section 504 of theTitle II of Americansexcluded from, denied
Rehabilitation Act); orwith Disabilities Act). benefits of, or
age (Age Discrimination[Section 678F(c)(1)]subjected to
Act). [Sectiondiscrimination under
1994A(e)(3)]any program or activity
receiving substance
iki/CRS-RL31030abuse formula grant
g/wfunds. [Section
s.or1947(a)(2) of Public
leakHealth Service Act.]
://wikis and religiousNotwithstanding anyNo provisionNo provisionA religiousNo provision
httpother provision of law, aorganization that
religious organizationprovides services under
that provides assistancea covered substance
under a covered programabuse program may
may require that itsrequire that its
employees adhere to itsemployees adhere to
religious practices.rules forbidding the use
[Section 1994A(e)(1)]of drugs or alcohol.
[Section 1955(d)(1)]
ional No provisionNo provisionNo provisionNo provisionIn determining whether
orpersonnel of a religious
of organization with a
srecord of successful
ationsdrug treatment for the
preceding 3 years have



CRS-15
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
satisfied state or local
requirements for
education and training,
a state or local
government shall not
discriminate against
education and training
provided to personnel
by a religious
iki/CRS-RL31030organization, so long
g/was it includes basic
s.orcontent substantially
leakequivalent to the
content of credit-
://wikieligible training
httpprovided by
nonreligious
organizations. [Section

584(b)]



CRS-16
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Rights of Beneficiaries
If a beneficiary orIf a beneficiary of,No provisionIf a beneficiary orIf a beneficiary or
derapplicant has anapplicant for, or aapplicant has anapplicant objects to the
objection to the religiousperson who requests toobjection to thereligious character of a
character of theapply for assistancereligious character ofprovider, the faith-
organization providingunder a coveredthe organizationbased provider must
assistance, theprogram has anproviding services, therefer the person to
iki/CRS-RL31030appropriate objection to theappropriateservices (provided by
g/wgovernmental entity mustreligious character ofgovernmental entitythe governmental unit
s.orprovide, within athe organization ormust provide, within athat administers the
leakreasonable period ofinstitution providingreasonable period ofprogram) from an
://wikitime, assistance from anaccessible and alternateassistance, the state inwhich the persontime, services from analternative andalternative andaccessible provider
httpprovider that is at leastresides, must provide,accessible providerwith a value at least
equal in value to the aidwithin a reasonablewith a value at leastequal to that of
that would have beenperiod of time,equal to that ofservices that would
received from theassistance from anservices that wouldhave been received
religious organization. accessible andhave been receivedfrom the religious
[Section 1994A(f)(1) andalternative providerfrom the religiousorganization. The
(3)]with a value at leastorganization. [Sectionfaith-based
equal to that of the1955(e)(1)]organization must
assistance that wouldnotify the government
have been receivedagency that administers
from the religiousthe program about its
organization. [Sectionreferral. [Section

104(e)] 582(f)(1)]


Before making the
referral, the faith-based
organization must



CRS-17
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
consider any list that
state or local
government makes
available of entities in
the area that provide
program services. The
faith-based
organization must
ensure that the
iki/CRS-RL31030beneficiary makes
g/wcontact with the
s.oralternative provider.
leak[Section 582(f)(3)]


://wiki
http

CRS-18
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
beneficiaryThe appropriate federal,No provisionNo provisionThe appropriateProgram participants
state or localgovernmental entity(including faith-based
dergovernmental entity mustmust guarantee thatorganizations), public
guarantee that notice ofnotice of beneficiaryagencies that refer
beneficiary rights torights to service frompersons to covered
service from anan alternate provider isprograms, and the
alternative provider isgiven to beneficiariesgovernments that
given to beneficiaries oror applicants foradminister covered
applicants for assistanceassistance under aprograms or are
iki/CRS-RL31030under a covered program.covered program.program participants
g/w[Section 1994A(f)(2) and[Section 1955(e)(2)must ensure that notice
s.or(3)]and (3)]of their rights to
leakservice from an
alternative provider is
://wikigiven to beneficiaries
httpor prospective
beneficiaries. Section

582(f)(2)



CRS-19
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Nondiscrimination Against Beneficiaries
A religious organizationExcept as otherwiseNo provisionA religiousA religious
providing assistance provided in law, aorganization providingorganization shall not
through a grant orreligious organizationservices through adiscriminate against a
contract under a coveredshall not discriminategrant, contract, orprogram beneficiary or
program shall notagainst a person incooperative agreementprospective beneficiary
discriminate, in carryinggiving assistance underunder any covered on the basis of religion
iki/CRS-RL31030out the program, againstany covered program onprogram shall notor religious belief in
g/wa beneficiary or applicantthe basis of religion, adiscriminate against aproviding services or
s.oron the basis of religion, areligious belief, orbeneficiary orengaging in outreach
leakreligious belief, or refusal to activelyapplicant on the basisactivities under
://wikirefusal to hold a religiousbelief. [Sectionparticipate in a religiouspractice. [Sectionof religion, a religiousbelief, a refusal to holdcovered programs.[Section 582(f)(4)]


http1994A(g)(1)]104(g)]a religious belief, or a
refusal to actively
A religious organizationparticipate in a
providing assistancereligious practice.
through a voucher,[Section 1955(f)]
certificate, or other form
of indirect disbursement
under a covered program,
shall not discriminate, in
carrying out the program,
against a beneficiary or
applicant on the basis of
religion, religious belief,
or refusal to hold a
religious belief. [Section

1994A(g)(2)]



CRS-20
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Limitation on Use of Funds for Sectarian Activities
No funds providedNo funds providedNo funds providedNo funds providedNo funds provided
through a grant ordirectly to institutionsdirectly to a religiousthrough a grant orunder a covered
contract to a religiousor organizations toorganization to providecontract to a religiousprogram shall be spent
organization forprovide services andassistance under anyorganization to providefor sectarian worship,
assistance under aadminister programscovered program shallservices under anyinstruction, or
covered program may bemay be spent forbe spent for sectariancovered program shallproselytization.
iki/CRS-RL31030spent for sectariansectarian worship,worship, instruction, orbe spent for sectarian[Section 583]


g/wworship, instruction, orinstruction, orproselytization. [Sectionworship, instruction, or
s.orproselytization.proselytization. [Section679(c)]proselytization.
leak[Section1994A(i)] 104(j)][Section 1955(i)]
://wikiEach recipient[Note: This prohibitiondoes not apply in cases
httporganization must file aof assistance provided
signed certificateto individuals through
providing assurance thatcertificates, vouchers,
it will comply with theor other forms of
above rule. [Sectiondisbursement
1994A(i)]redeemable at
charitable, religious, or
private organizations.]

CRS-21
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Fiscal Accountability
fect on State andIf a state or localNo provisionNo provisionSame as H.R. 7.No provision


al Fundsgovernment contributes[Section 1955(j)]
funds to carry out a
covered program, the
state or local government
may segregate its funds
iki/CRS-RL31030from the federal funds
g/wprovided for the program
s.oror may commingle its
leakfunds with federal funds.
://wikiIf funds are commingled,the provisions of this Act
httpapply in the same
manner, and to the same
extent, as they apply to
federal funds.
[Section 1994A(j)]

CRS-22
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Treatment of Intermediate Contractors (Nongovernmental Organizations Acting under
Contract or Other Agreement with a Government Entity)
If an intermediateNo provisionIf an eligible entity orIf an intermediateNo provision


contractor is givenother organizationorganization is given
authority to select(referred to here as anauthority to select
nongovernmental “intermediate nongovernmental
iki/CRS-RL31030organizations assubcontractors to provideorganization”), is givenauthority under aorganizations toprovide services under
g/w
s.orassistance under acontract or agreement toany covered program,
leakcovered program, theselect nongovernmentalthe intermediate
intermediate contractororganizations to provideorganization shall have
://wikihas the same duties underassistance underthe same duties under
httpthis Act as thecovered programs, thethis section as the
government whenintermediategovernment but shall
selecting or otherwiseorganization shall haveretain all other rights of
dealing withthe same duties undera nongovernmental
subcontractors; but, if thethis section as theorganization under this
intermediate contractorgovernment.section. [Section
is a religious[Section679(e)]1955(k)]
organization, it retains
all other rights of a
religious organization
under this Act. [Section

1994A(k)]



CRS-23
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Compliance
A party alleging that aAny party which seeksNo provisionAny party that seeks toA religious
state or local governmentto enforce its rightsenforce its rights underorganization may
has violated its rightsunder the Charitablethis section may assertobtain review of
under this Act may bringChoice provisions ofa civil action foragency action in
a civil action in stateP.L. 104-193 may assertinjunctive relieffederal court in
court against the officiala civil action forexclusively in anaccordance with
iki/CRS-RL31030or government agencyinjunctive reliefappropriate federal orChapter 7 of Title 5,
g/wthat has allegedlyexclusively in anstate court against theUnited States Code.
s.orcommitted the violation. appropriate state courtentity, agency, or[Section 582(h)]


leakA party alleging that theagainst the entity orofficial that allegedly
://wikifederal government hasviolated its rights underagency that allegedlycommits the violation. commits the violation.[Section 1955(h)]
httpthis Act may bring a civil[Section 104(i)]
action for appropriate
relief in an appropriate
federal district court
against the official or
government agency that
allegedly committed the
violation.
[Section1994A(l)]

CRS-24
Community Renewal
Community ServicesChildren’s Health ActTax Relief Act (H.R.
Charitable Choice Act P.L. 104-193Block Grant Act (Title(Title XXXIII of5662), enacted as part
Title II of H.R. 7(Welfare Reform)II of P.L. 105-285)P.L. 106-310)of P.L. 106-554
Preemption of Other Law?
No provisionNothing in theNo provisionNo provisionNo provision
charitable choice
provisions of P.L. 104-
193 is to be construed to
preempt a provision of a
state constitution or law
iki/CRS-RL31030that prohibits or
g/wrestricts spending of
s.orstate funds in or by
leakreligious organizations.
://wiki[Section 104(k)]
http
ious providers may receive funding on the same basis as nonsectarian providers. However, religious providers may use funds for
construction (generally disallowed for other providers) to the extent needed to bring facilities into compliance with health and safety standards. Use of
CCBDG funds for religious activities, including sectarian worship or instruction, generally is prohibited; but this prohibition does not apply to funds received
by providers in the form of child care certificates, if the sectarian services are freely chosen by the parent. Providers may not discriminate in admissions
against a child on the basis of religion, with the exceptions of family child care providers and providers who receive CCDBG funds in the form of child care
certificates. However, sectarian providers may reserve unsubsidized slots for children whose families regularly participate in their organization’s activities,
unless 80% or more of their operating budget comes from federal or state funds, including child care certificates. In their employment practices, providers
may not discriminate on the basis of religion if the employee’s primary duties are to give child care. However, in considering two or more qualified
applicants, sectarian providers may give preference to a person who regularly participates in the organization ‘s activities. Also, sectarian organizations may
require employees to adhere to their religious tenets or teaching and to rules forbidding the use of drugs or alcohol, unless 80% or more of their operating
budget comes from federal or state funds. See CRS Report RL30785, The Child Care and Development Block Grant: Background and Funding, by Alice
Butler and Melinda Gish.
t appears that provisions of Section 703(e)(2) of the Civil Rights Act are subsumed by Section 702.