subaward shall arrange for the individual to receive
the program services through an alternative program
participant.
‘‘(3) If the organization is providing services
pursuant to voucherized assistance, the designated
award recipient that operates the voucherized assist-
ance program shall arrange for the individual to re-
ceive the program services through an alternative
provider.
‘‘(4) Arrangements under any of paragraphs
(1) through (3) with an alternative entity shall pro-
vide for program services the monetary value of
which is not less than the monetary value of the pro-
gram services that the individual would have re-
ceived from the religious organization involved.
‘‘(5) NONDISCRIMINATION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B) or as otherwise provided in
law, a religious organization that is a program
participant shall not in providing program serv-
ices discriminate against a program beneficiary
on the basis of religion or religious belief.
‘‘(B) LIMITATION.—A religious organiza-
tion that is a program participant may require
a program beneficiary who has elected in ac-
cordance with paragraph (1) to receive program
services from such organization—
‘‘(i) to actively participate in religious
practice, worship, and instruction; and
‘‘(ii) to follow rules of behavior de-
vised by the organizations that are reli-
gious in content or origin.
‘‘(g) FISCAL ACCOUNTABILITY.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any religious organization that is a pro-
gram participant shall be subject to the same regula-
tions as other recipients of awards of Federal finan-
cial assistance to account, in accordance with gen-
erally accepted auditing principles, for the use of the
funds provided under such awards.
‘‘(2) LIMITED
AUDIT.—With respect to the
award involved, if a religious organization that is a
program participant maintains the Federal funds in
a separate account from non-Federal funds, then
only the Federal funds shall be subject to audit.
‘‘(h) COMPLIANCE.—With respect to compliance with
this section by an agency, a religious organization may
obtain judicial review of agency action in accordance with
chapter 7 of title 5, United States Code.
‘‘SEC. 583. LIMITATIONS ON USE OF FUNDS FOR CERTAIN
PURPOSES.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), no funds provided directly to an entity under a des-
ignated program shall be expended for sectarian worship
or instruction.
‘‘(b) EXCEPTION.—Subsection (a) shall not apply to
assistance provided to or on behalf of a program bene-
ficiary if the beneficiary may choose where such assistance
is redeemed or allocated.
‘‘SEC. 584. ADMINISTRATION OF PROGRAM AND TREAT-
MENT OF FUNDS.
‘‘(a) FUNDS NOT AID TO INSTITUTIONS.—Financial
assistance under a designated program provided to or on
behalf of program beneficiaries is aid to the beneficiary,
not to the organization providing program services. The
receipt by a program beneficiary of program services at
the facilities of the organization shall not constitute Fed-
eral financial assistance to the organization involved.
‘‘(b) PROHIBITION ON STATE DISCRIMINATION IN
USE OF FUNDS.—No provision in any State constitution
or State law shall be construed to prohibit the expenditure
of Federal funds under a designated program in a reli-
gious facility or by a religious organization that is a pro-
gram participant. If a State law or constitution would pre-
vent the expenditure of State or local public funds in such
a facility or by such an organization, then the State or
local government shall segregate the Federal funds from
State or other public funds for purposes of carrying out
the designated program.
‘‘SEC. 585. EDUCATIONAL REQUIREMENTS FOR PERSONNEL
IN DRUG TREATMENT PROGRAMS.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) establishing formal educational qualifica-
tion for counselors and other personnel in drug
treatment programs may undermine the effective-
ness of such programs; and
‘‘(2) such formal educational requirements for
counselors and other personnel may hinder or pre-
vent the provision of needed drug treatment services.
‘‘(b) LIMITATION ON EDUCATIONAL REQUIREMENTS
OF PERSONNEL.—
‘‘(1) TREATMENT OF RELIGIOUS EDUCATION.—
If any State or local government that is a program
participant imposes formal educational qualifications
on providers of program services, including religious
organizations, such State or local government shall
treat religious education and training of personnel
as having a critical and positive role in the delivery
of program services. In applying educational quali-
fications for personnel in religious organizations,
such State or local government shall give credit for
religious education and training equivalent to credit
given for secular course work in drug treatment or
any other secular subject that is of similar grade
level and duration.
‘‘(2) RESTRICTION
OF
DISCRIMINATION
RE-
QUIREMENTS.—
‘‘(A) IN GENERAL.—Subject to paragraph
(1), a State or local government that is a pro-
gram participant may establish formal edu-
cational qualifications for personnel in organiza-
tions providing program services that contribute
to success in reducing drug use among program
beneficiaries.
‘‘(B) EXCEPTION.—The Secretary shall
waive the application of any educational quali-
fication imposed under subparagraph (A) for an
individual religious organization, if the Sec-
retary determines that—
‘‘(i) the religious organization has a
record of prior successful drug treatment
for at least the preceding three years;
‘‘(ii) the educational qualifications
have effectively barred such religious orga-
nization from becoming a program pro-
vider;
‘‘(iii) the organization has applied to
the Secretary to waive the qualifications;
and
‘‘(iv) the State or local government
has failed to demonstrate empirically that
the educational qualifications in question
are necessary to the successful operation of
a drug treatment program.’’.
SEC. 203. CRA CREDIT FOR INVESTMENTS IN COMMUNITY
DEVELOPMENT ORGANIZATIONS LOCATED IN
RENEWAL COMMUNITIES.
Section 804 of the Community Reinvestment Act of
1977 (12 U.S.C. 2903) is amended by adding at the end
the following new subsection:
‘‘(c) INVESTMENTS IN CERTAIN COMMUNITY DEVEL-
OPMENT ORGANIZATIONS.—In assessing and taking into
account, under subsection (a), the record of a regulated
financial institution, the appropriate Federal financial su-
pervisory agency may consider, as a factor, investments
of the institution in, and capital investment, loan partici-
pation, and other ventures undertaken by the institution
in cooperation with, any community development organi-
zation (as defined in section 234 of the Bank Enterprise
Act of 1991) which is located in a renewal community (as
designated under section 1400E of the Internal Revenue
Code of 1986).’’.
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