‘‘(5) The term ‘financial assistance’ means a
grant, 
cooperative 
agreement, 
contract, 
or
voucherized assistance.
‘‘(6) The term ‘program beneficiary’ means an
individual who receives program services.
‘‘(7) The term ‘program participant’ has the
meaning given such term in section 582(a)(2).
‘‘(8) The term ‘program services’ means treat-
ment for substance abuse, or preventive services re-
garding such abuse, provided pursuant to an award
under a designated program.
‘‘(9) The term ‘religious organization’ means a
nonprofit religious organization.
‘‘(10) 
The 
term 
‘voucherized 
assistance’
means—
‘‘(A) a system of selecting and reimbursing
program services in which—
‘‘(i) the beneficiary is given a docu-
ment or other authorization that may be
used to pay for program services;
‘‘(ii) the beneficiary chooses the orga-
nization that will provide services to him or
her according to rules specified by the des-
ignated award recipient; and
‘‘(iii) the organization selected by the
beneficiary is reimbursed by the designated
award recipient for program services pro-
vided; or
‘‘(B) any other mode of financial assist-
ance to pay for program services in which the
program beneficiary determines the allocation
of program funds through his or her selection
of one service provider from among alternatives.
‘‘SEC. 582. RELIGIOUS ORGANIZATIONS AS PROGRAM PAR-
TICIPANTS.
‘‘(a) IN GENERAL.—
‘‘(1) SCOPE OF AUTHORITY.—Notwithstanding
any 
other 
provision 
of 
law, 
a 
religious
organization—
‘‘(A) may be a designated award recipient;
‘‘(B) may make designated subawards to
other public or nonprofit private entities (in-
cluding other religious organizations);
‘‘(C) may provide for the provision of pro-
gram services to program beneficiaries through
the use of voucherized assistance; and
‘‘(D) may be a provider of services under
a designated program, including a provider that
accepts voucherized assistance.
‘‘(2) DEFINITION OF PROGRAM PARTICIPANT.—
For purposes of this part, the term ‘program partici-
pant’ means a public or private entity that has re-
ceived a designated direct award, or a designated
subaward, regardless of whether the entity provides
program services. Such term includes an entity
whose only participation in a designated program is
to provide program services pursuant to the accept-
ance of voucherized assistance.
‘‘(b) RELIGIOUS ORGANIZATIONS.—The purpose of
this section is to allow religious organizations to be pro-
gram participants on the same basis as any other non-
profit private provider without impairing the religious
character of such organizations, and without diminishing
the religious freedom of program beneficiaries.
‘‘(c) 
NONDISCRIMINATION
AGAINST
RELIGIOUS
ORGANIZATIONS.—
‘‘(1) FINDINGS.—The Congress finds that the
establishment clause of the first amendment to the
Constitution of the United States does not require
that—
‘‘(A) social-welfare programs discriminate
against faith-based providers of services; or
‘‘(B) faith-based providers of services, as a
prerequisite to participation in Federal pro-
grams, abandon their religious character and
censor their religious expression.
‘‘(2) NONDISCRIMINATION.—Religious organiza-
tions are eligible to be program participants on the
same basis as any other nonprofit private organiza-
tion. Neither the Federal Government nor a State
receiving funds under such programs shall discrimi-
nate against an organization that is or applies to be
a program participant on the basis that the organi-
zation has a religious character.
‘‘(d) RELIGIOUS CHARACTER AND FREEDOM.—
‘‘(1) RELIGIOUS
ORGANIZATIONS.—Except as
provided in this section, any religious organization
that is a program participant shall retain its inde-
pendence from Federal, State, and local government,
including such organization’s control over the defini-
tion, development, practice, and expression of its re-
ligious beliefs.
‘‘(2) ADDITIONAL
SAFEGUARDS.—Neither the
Federal Government nor a State shall require a reli-
gious organization to—
‘‘(A) alter its form of internal governance;
or
‘‘(B) remove religious art, icons, scripture,
or other symbols;
in order to be a program participant.
‘‘(e) NONDISCRIMINATION IN EMPLOYMENT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), nothing in this section shall be construed
to modify or affect the provisions of any other Fed-
eral or State law or regulation that relates to dis-
crimination in employment on the basis of religion.
‘‘(2) EXCEPTION.—A religious organization
that is a program participant may require that an
employee rendering programs services adhere to—
‘‘(A) the religious beliefs and practices of
such organization; and
‘‘(B) any rules of the organization regard-
ing the use of drugs or alcohol.
‘‘(f) RIGHTS OF PROGRAM BENEFICIARIES.—With
respect to an individual who is a program beneficiary or
a prospective program beneficiary, if the individual objects
to a program participant on the basis that the participant
is a religious organization, the following applies:
‘‘(1) If the organization received a designated
direct award, the organization shall arrange for the
individual to receive program services through an al-
ternative entity.
‘‘(2) If the organization received a designated
subaward, the non-Federal entity that made the