II

105TH CONGRESS

2D SESSION S. 2046

To ensure that Federal, State, and local governments consider all nongovernmental organizations on an equal basis when choosing such organizations

to provide assistance under certain government programs, without impairing the religious character of any of the organizations, and without

diminishing the religious freedom of beneficiaries of assistance funded

under such programs, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 7, 1998

Mr. ASHCROFT introduced the following bill; which was read twice and

referred to the Committee on Governmental Affairs

A BILL

To ensure that Federal, State, and local governments consider all nongovernmental organizations on an equal

basis when choosing such organizations to provide assistance under certain government programs, without impairing the religious character of any of the organizations, and without diminishing the religious freedom of

beneficiaries of assistance funded under such programs,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Charitable Choice Ex3 pansion Act of 1998’’.

4 SEC. 2. PURPOSE.

5 The purpose of this Act is to ensure that Federal,

6 State, and local governments consider all nongovernmental

7 organizations on an equal basis when choosing such orga8 nizations to provide assistance to beneficiaries under gov9 ernment programs described in section 3(a), without im10 pairing the religious character of any of the organizations,

11 and without diminishing the religious freedom of bene12 ficiaries of assistance funded under such programs.

13 SEC. 3. PROVISION OF ASSISTANCE UNDER GOVERNMENT

14 PROGRAMS.

15 (a) RELIGIOUS ORGANIZATIONS INCLUDED AS NON16 GOVERNMENTAL PROVIDERS.—For any program carried

17 out by the Federal Government, or by a State or local

18 government with Federal funds, in which the Federal,

19 State, or local government is authorized to use nongovern20 mental organizations, through contracts, grants, certifi21 cates, vouchers, or other forms of disbursement, to provide

22 assistance to beneficiaries under the program, the govern23 ment shall consider, on the same basis as other nongovern24 mental organizations, religious organizations to provide

25 the assistance under the program, so long as the program

26 is implemented in a manner consistent with the Establish-
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1 ment Clause of the first amendment to the Constitution.

2 Neither the Federal Government nor a State or local gov3 ernment receiving funds under such program shall dis4 criminate against an organization that provides assistance

5 under, or applies to provide assistance under, such pro6 gram, on the basis that the organization has a religious

7 character.

8 (b) EXCLUSIONS.—As used in subsection (a), the

9 term ‘‘program’’ does not include activities carried out

10 under—

11 (1) Federal programs providing education to

12 children eligible to attend elementary schools or sec13 ondary schools, as defined in section 14101 of the

14 Elementary and Secondary Education Act of 1965

15 (20 U.S.C. 8801) (except for activities to assist stu16 dents in obtaining the recognized equivalents of sec17 ondary school diplomas);

18 (2) the Higher Education Act of 1965 (20

19 U.S.C. 1001 et seq.);

20 (3) the Head Start Act (42 U.S.C. 9831 et

21 seq.); or

22 (4) the Child Care and Development Block

23 Grant Act of 1990 (42 U.S.C. 9858 et seq.).

24 (c) RELIGIOUS CHARACTER AND INDEPENDENCE.—
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1 (1) IN GENERAL.—A religious organization that

2 provides assistance under a program described in

3 subsection (a) shall retain its independence from

4 Federal, State, and local governments, including

5 such organization’s control over the definition, devel6 opment, practice, and expression of its religious be7 liefs.

8 (2) ADDITIONAL SAFEGUARDS.—Neither the

9 Federal Government nor a State or local government

10 shall require a religious organization—

11 (A) to alter its form of internal govern12 ance; or

13 (B) to remove religious art, icons, scrip14 ture, or other symbols;

15 in order to be eligible to provide assistance under a

16 program described in subsection (a).

17 (d) EMPLOYMENT PRACTICES.—The exemption of a

18 religious organization provided under section 702 or

19 703(e)(2) of the Civil Rights Act of 1964 (42 U.S.C.

20 2000e–1, 2000e–2(e)(2)) regarding employment practices

21 shall not be affected by the religious organization’s provi22 sion of assistance under, or receipt of funds from, pro23 grams described in subsection (a).

24 (e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.—
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1 (1) IN GENERAL.—If an individual described in

2 paragraph (3) has an objection to the religious char3 acter of the organization from which the individual

4 receives, or would receive, assistance funded under

5 any program described in subsection (a), the appro6 priate Federal, State, or local governmental entity

7 shall provide to such individual (if otherwise eligible

8 for such assistance) within a reasonable period of

9 time after the date of such objection, assistance

10 that—

11 (A) is from an alternative organization

12 that is accessible to the individual; and

13 (B) has a value that is not less than the

14 value of the assistance that the individual would

15 have received from such organization.

16 (2) NOTICE.—The appropriate Federal, State,

17 or local governmental entity shall ensure that notice

18 is provided to individuals described in paragraph (3)

19 of the right of such individuals to make the objection

20 described in paragraph (1).

21 (3) INDIVIDUAL DESCRIBED.—An individual de22 scribed in this paragraph is an individual who re23 ceives or applies for assistance under a program de24 scribed in subsection (a).
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1 (f) NONDISCRIMINATION AGAINST BENEFICIARIES.—

2 A religious organization shall not discriminate against an

3 individual described in subsection (e)(3) in regard to—

4 (1) rendering assistance funded under any pro5 gram described in subsection (a) on the basis of reli6 gion, a religious belief, or refusal to hold a religious

7 belief; or

8 (2) rendering assistance funded through a

9 grant or contract under such program on the basis

10 of refusal to actively participate in a religious prac11 tice.

12 (g) FISCAL ACCOUNTABILITY.—

13 (1) IN GENERAL.—Except as provided in para14 graph (2), any religious organization providing as15 sistance under any program described in subsection

16 (a) shall be subject to the same regulations as other

17 nongovernmental organizations to account in accord

18 with generally accepted accounting principles for the

19 use of such funds provided under such program.

20 (2) LIMITED AUDIT.—Such organization shall

21 segregate government funds provided under such

22 program into a separate account. Only the govern23 ment funds shall be subject to audit by the govern24 ment.
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1 (h) COMPLIANCE.—A party alleging that the rights

2 of the party under this section have been violated by a

3 State or local government may bring a civil action pursu4 ant to section 1979 of the Revised Statutes (42 U.S.C.

5 1983) against the official or government agency that has

6 allegedly committed such violation. A party alleging that

7 the rights of the party under this section have been vio8 lated by the Federal Government may bring a civil action

9 for appropriate relief in an appropriate Federal district

10 court against the official or government agency that has

11 allegedly committed such violation.

12 (i) LIMITATIONS ON USE OF FUNDS FOR CERTAIN

13 PURPOSES.—No funds provided through a grant or con14 tract to a religious organization to provide assistance

15 under any program described in subsection (a) shall be

16 expended for sectarian worship, instruction, or proselytiza17 tion.

18 (j) EFFECT ON STATE AND LOCAL LAWS.—

19 (1) IN GENERAL.—If a State or local govern20 ment contributes State or local funds to carry out a

21 program described in subsection (a), the government

22 may—

23 (A) segregate the State or local funds from

24 the Federal funds provided to carry out the

25 program; or
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1 (B) commingle the State or local funds

2 with the Federal funds.

3 (2) SEGREGATED FUNDS.—If the State or local

4 government segregates the State or local funds, the

5 provisions of State law relating to the expenditure of

6 public funds in or by sectarian institutions shall

7 apply only to the segregated State or local funds.

8 (3) COMMINGLED FUNDS.—If the State or local

9 government commingles the State or local funds, the

10 provisions of this section shall apply to the commin11 gled funds in the same manner, and to the same ex12 tent, as the provisions apply to the Federal funds,

13 and the provisions of State law described in para14 graph (2) shall not apply to the commingled funds.

15 (k) TREATMENT OF INTERMEDIATE CONTRAC16 TORS.—If a nongovernmental organization (referred to in

17 this subsection as an ‘‘intermediate organization’’), acting

18 under a contract or other agreement with the Federal Gov19 ernment or a State or local government, is given the au20 thority under the contract or agreement to select non21 governmental organizations to provide assistance under

22 the programs described in subsection (a), the intermediate

23 organization shall have the same duties under this section

24 as the government.

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