SECTION 1. PROVISION OF ASSISTANCE UNDER GOVERNMENT PROGRAMS BY 
              RELIGIOUS ORGANIZATIONS.

    Title XXIV of the Revised Statutes is amended by inserting after 
section 1990 (42 U.S.C. 1994) the following:

``SEC. 1994A. CHARITABLE CHOICE.

    ``(a) Short Title.--This section may be cited as the `Charitable 
Choice Expansion Act of 1999'.
    ``(b) Purpose.--The purposes of this section are--
            ``(1) to prohibit discrimination against nongovernmental 
        organizations and certain individuals on the basis of religion 
        in the distribution of government funds to provide government 
        assistance and distribution of the assistance, under government 
        programs described in subsection (c); and
            ``(2) to allow the organizations to accept the funds to 
        provide the assistance to the individuals without impairing the 
        religious character of the organizations or the religious 
        freedom of the individuals.
    ``(c) Religious Organizations Included as Nongovernmental 
Providers.--For any program carried out by the Federal Government, or 
by a State or local government with Federal funds, in which the 
Federal, State, or local government is authorized to use 
nongovernmental organizations, through contracts, grants, certificates, 
vouchers, or other forms of disbursement, to provide assistance to 
beneficiaries under the program, the government shall consider, on the 
same basis as other nongovernmental organizations, religious 
organizations to provide the assistance under the program, so long as 
the program is implemented in a manner consistent with the 
Establishment Clause of the first amendment to the Constitution. 
Neither the Federal Government nor a State or local government 
receiving funds under such program shall discriminate against an 
organization that provides assistance under, or applies to provide 
assistance under, such program, on the basis that the organization has 
a religious character.
    ``(d) Exclusions.--As used in subsection (c), the term `program' 
does not include activities carried out under--
            ``(1) Federal programs providing education to children 
        eligible to attend elementary schools or secondary schools, as 
        defined in section 14101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801) (except for activities 
        to assist students in obtaining the recognized equivalents of 
        secondary school diplomas);
            ``(2) the Higher Education Act of 1965 (20 U.S.C. 1001 et 
        seq.);
            ``(3) the Head Start Act (42 U.S.C. 9831 et seq.); or
            ``(4) the Child Care and Development Block Grant Act of 
        1990 (42 U.S.C. 9858 et seq.).
    ``(e) Religious Character and Independence.--
            ``(1) In general.--A religious organization that provides 
        assistance under a program described in subsection (c) shall 
        retain its independence from Federal, State, and local 
        governments, including such organization's control over the 
        definition, development, practice, and expression of its 
        religious beliefs.
            ``(2) Additional safeguards.--Neither the Federal 
        Government nor a State or local government shall require a 
        religious organization--
                    ``(A) to alter its form of internal governance; or
                    ``(B) to remove religious art, icons, scripture, or 
                other symbols;
        in order to be eligible to provide assistance under a program 
        described in subsection (c).
    ``(f) Employment Practices.--
            ``(1) Tenets and teachings.--A religious organization that 
        provides assistance under a program described in subsection (c) 
        may require that its employees providing assistance under such 
        program adhere to the religious tenets and teachings of such 
        organization, and such organization may require that those 
        employees adhere to rules forbidding the use of drugs or 
        alcohol.
            ``(2) Title vii exemption.--The exemption of a religious 
        organization provided under section 702 or 703(e)(2) of the 
        Civil Rights Act of 1964 (42 U.S.C. 2000e-1, 2000e-2(e)(2)) 
        regarding employment practices shall not be affected by the 
        religious organization's provision of assistance under, or 
        receipt of funds from, a program described in subsection (c).
    ``(g) Rights of Beneficiaries of Assistance.--
            ``(1) In general.--If an individual described in paragraph 
        (3) has an objection to the religious character of the 
        organization from which the individual receives, or would 
        receive, assistance funded under any program described in 
        subsection (c), the appropriate Federal, State, or local 
        governmental entity shall provide to such individual (if 
        otherwise eligible for such assistance) within a reasonable 
        period of time after the date of such objection, assistance 
        that--
                    ``(A) is from an alternative organization that is 
                accessible to the individual; and
                    ``(B) has a value that is not less than the value 
                of the assistance that the individual would have 
                received from such organization.
            ``(2) Notice.--The appropriate Federal, State, or local 
        governmental entity shall ensure that notice is provided to 
        individuals described in paragraph (3) of the rights of such 
        individuals under this section.
            ``(3) Individual described.--An individual described in 
        this paragraph is an individual who receives or applies for 
        assistance under a program described in subsection (c).
    ``(h) Nondiscrimination Against Beneficiaries.--
            ``(1) Grants and contracts.--A religious organization 
        providing assistance through a grant or contract under a 
        program described in subsection (c) shall not discriminate, in 
        carrying out the program, against an individual described in 
        subsection (g)(3) on the basis of religion, a religious belief, 
        a refusal to hold a religious belief, or a refusal to actively 
        participate in a religious practice.
            ``(2) Indirect forms of disbursement.--A religious 
        organization providing assistance through a voucher, 
        certificate, or other form of indirect disbursement under a 
        program described in subsection (c) shall not deny an 
        individual described in subsection (g)(3) admission into such 
        program on the basis of religion, a religious belief, or a 
        refusal to hold a religious belief.
    ``(i) Fiscal Accountability.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        religious organization providing assistance under any program 
        described in subsection (c) shall be subject to the same 
        regulations as other nongovernmental organizations to account 
        in accord with generally accepted accounting principles for the 
        use of such funds provided under such program.
            ``(2) Limited audit.--Such organization shall segregate 
        government funds provided under such program into a separate 
        account. Only the government funds shall be subject to audit by 
        the government.
    ``(j) Compliance.--A party alleging that the rights of the party 
under this section have been violated by a State or local government 
may bring a civil action pursuant to section 1979 against the official 
or government agency that has allegedly committed such violation. A 
party alleging that the rights of the party under this section have 
been violated by the Federal Government may bring a civil action for 
appropriate relief in an appropriate Federal district court against the 
official or government agency that has allegedly committed such 
violation.
    ``(k) Limitations on Use of Funds for Certain Purposes.--No funds 
provided through a grant or contract to a religious organization to 
provide assistance under any program described in subsection (c) shall 
be expended for sectarian worship, instruction, or proselytization.
    ``(l) Effect on State and Local Funds.--If a State or local 
government contributes State or local funds to carry out a program 
described in subsection (c), the State or local government may 
segregate the State or local funds from the Federal funds provided to 
carry out the program or may commingle the State or local funds with 
the Federal funds. If the State or local government commingles the 
State or local funds, the provisions of this section shall apply to the 
commingled funds in the same manner, and to the same extent, as the 
provisions apply to the Federal funds.
    ``(m) Treatment of Intermediate Contractors.--If a nongovernmental 
organization (referred to in this subsection as an `intermediate 
organization'), acting under a contract or other agreement with the 
Federal Government or a State or local government, is given the 
authority under the contract or agreement to select nongovernmental 
organizations to provide assistance under the programs described in 
subsection (c), the intermediate organization shall have the same 
duties under this section as the government but shall retain all other 
rights of a nongovernmental organization under this section.''.
Charitable Choice Expansion Act of 1999 - Requires the Federal Government, or a State or local government receiving Federal funds, when authorized to use a nongovernmental organization to provide assistance to beneficiaries under a program, to consider religious organizations on the same basis as other nongovernmental organizations to provide such assistance, so long as the program is implemented in a manner consistent with the Establishment Clause of the Constitution. Excepts from such requirement activities carried out under: (1) Federal programs providing education to children eligible to attend elementary or secondary schools (except for activities to assist students in obtaining the recognized equivalents of secondary school diplomas); (2) the Higher Education Act of 1965; (3) the Head Start Act; and (4) the Child Care and Development Block Grant Act of 1990. 
Declares that a religious organization that provides assistance under such a program shall retain its independence from Federal, State, and local governments and shall not be required to alter its form of internal governance or remove religious art, icons, scripture, or other symbols. 
Authorizes an organization to require its employees providing such assistance to adhere to its religious beliefs, including nonuse of alcohol and drugs. 
States that the employment practices exemption of a religious organization under title VII of the Civil Rights Act of 1964 shall not be affected by the provision of assistance or the receipt of funds under this Act. 
Requires the appropriate governmental entity, if a beneficiary or applicant for assistance under such a program has an objection to the religious character of the organization providing the assistance, to provide such assistance through an alternative organization.  Requires the governmental entity to ensure that notice is provided to beneficiaries and applicants of the right to make such objection. 
Prohibits a religious organization from discriminating against a beneficiary or applicant in rendering assistance based on religion or religious belief. 
Requires any religious organization providing assistance under such a program to segregate government funds provided under such program into a separate account.  Subjects only such funds to audit by the government. 
Authorizes civil actions by parties alleging that their rights under this Act have been violated by the Federal Government or by a State or local government. 
Prohibits any funds provided through a grant or contract to a religious organization to provide assistance under any such program from being expended for sectarian worship, instruction, or proselytization.
Charitable Choice Expansion Act of 1999