Faith-Based Drug Treatment Enhancement Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Faith-Based Drug Treatment 
Enhancement Act''.

SEC. 2. PREVENTION AND TREATMENT OF SUBSTANCE ABUSE; SERVICES PROVIDED 
              THROUGH RELIGIOUS ORGANIZATIONS.

    Title V of the Public Health Service Act (42 U.S.C. 290aa et seq.) 
is amended by adding at the end the following:

      ``Part G--Services Provided Through Religious Organizations

``SEC. 581. APPLICABILITY TO DESIGNATED PROGRAMS.

    ``(a) Designated Programs.--Subject to subsection (b), this part 
applies to each program under this Act that makes awards of Federal 
financial assistance to public or private entities for the purpose of 
carrying out activities to prevent or treat substance abuse (in this 
part referred to as a `designated program'). Designated programs 
include the program under subpart II of part B of title XIX (relating 
to formula grants to the States).
    ``(b) Limitation.--This part does not apply to any award of Federal 
financial assistance under a designated program for a purpose other 
than the purpose specified in subsection (a).
    ``(c) Definitions.--For purposes of this part (and subject to 
subsection (b)):
            ``(1) Designated award recipient.--The term `designated 
        award recipient' means a public or private entity that has 
        received an award under a designated program (whether the award 
        is a designated direct award or a designated subaward).
            ``(2) Designated direct award.--The term `designated direct 
        award' means an award under a designated program that is 
        received directly from the Federal Government.
            ``(3) Designated subaward.--The term `designated subaward' 
        means an award of financial assistance made by a non-Federal 
        entity, which award consists in whole or in part of Federal 
        financial assistance provided through an award under a 
        designated program.
            ``(4) Designated program.--The term `designated program' 
        has the meaning given such term in subsection (a).
            ``(5) Financial assistance.--The term `financial 
        assistance' means a grant, cooperative agreement, contract, or 
        voucherized assistance.
            ``(6) Program beneficiary.--The term `program beneficiary' 
        means an individual who receives program services.
            ``(7) Program participant.--The term `program participant' 
        has the meaning given such term in section 582(a)(2).
            ``(8) Program services.--The term `program services' means 
        treatment for substance abuse, or preventive services regarding 
        such abuse, provided pursuant to an award under a designated 
        program.
            ``(9) Religious organization.--The term `religious 
        organization' means a nonprofit religious organization.
            ``(10) Voucherized assistance.--The term `voucherized 
        assistance' means--
                    ``(A) a system of selecting and reimbursing program 
                services in which--
                            ``(i) the beneficiary is given a document 
                        or other authorization that may be used to pay 
                        for program services;
                            ``(ii) the beneficiary chooses the 
                        organization that will provide services to him 
                        or her according to rules specified by the 
                        designated award recipient; and
                            ``(iii) the organization selected by the 
                        beneficiary is reimbursed by the designated 
                        award recipient for program services provided; 
                        or
                    ``(B) any other mode of financial assistance 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 PARTICIPANTS.

    ``(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 (including other 
                religious organizations);
                    ``(C) may provide for the provision of program 
                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 participant' means a public or 
        private entity that has received 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 acceptance of voucherized assistance.
    ``(b) Religious Organizations.--The purpose of this section is to 
allow religious organizations to be program participants on the same 
basis as any other nonprofit 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 programs, 
                abandon their religious character and censor their 
                religious expression.
            ``(2) Nondiscrimination.--Religious organizations are 
        eligible to be program participants on the same basis as any 
        other nonprofit private organization. Neither the Federal 
        Government nor a State receiving funds under such programs 
        shall discriminate against an organization that is or applies 
        to be a program participant on the basis that the organization 
        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 independence from Federal, State, 
        and local government, 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 shall require a religious 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 paragraph (2), 
        nothing in this section shall be construed to modify or affect 
        the provisions of any other Federal or State law or regulation 
        that relates to discrimination in employment on the basis of 
        religion.
            ``(2) Exception.--A religious organization that is a 
        program participant may require that an employee rendering 
        program services adhere to--
                    ``(A) the religious beliefs and practices of such 
                organization; and
                    ``(B) any rules of the organization regarding the 
                use of drugs or alcohol.
    ``(f) Rights of Program Beneficiaries.--
            ``(1) Objections regarding religious organizations.--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:
                    ``(A) If the organization received a designated 
                direct award, the organization shall arrange for the 
                individual to receive program services through an 
                alternative entity.
                    ``(B) If the organization received a designated 
                subaward, the non-Federal entity that made the subaward 
                shall arrange for the individual to receive the program 
                services through an alternative program participant.
                    ``(C) If the organization is providing services 
                pursuant to voucherized assistance, the designated 
                award recipient that operates the voucherized 
                assistance program shall arrange for the individual to 
                receive the program services through an alternative 
                provider.
                    ``(D) Arrangements under any of subparagraphs (A) 
                through (C) with an alternative entity shall provide 
                for program services the monetary value of which is not 
                less than the monetary value of the program services 
                that the individual would have received from the 
                religious organization involved.
            ``(2) 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 services discriminate 
                against a program beneficiary on the basis of religion 
                or religious belief.
                    ``(B) Limitation.--A religious organization that is 
                a program participant may require a program beneficiary 
                who has elected in accordance 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 devised 
                        by the organizations that are religious in 
                        content or origin.
    ``(g) Fiscal Accountability.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        religious organization that is a program participant shall be 
        subject to the same regulations as other recipients of awards 
        of Federal financial assistance to account, in accordance with 
        generally 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 designated 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 beneficiary if the beneficiary 
may choose where such assistance is redeemed or allocated.

``SEC. 584. ADMINISTRATION OF PROGRAM AND TREATMENT 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 Federal 
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 religious facility or by a religious organization that is a program 
participant. If a State law or constitution would prevent 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 qualification for 
        counselors and other personnel in drug treatment programs may 
        undermine the effectiveness of such programs; and
            ``(2) such formal educational requirements for counselors 
        and other personnel may hinder or prevent 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 
        qualifications 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 requirements.--
                    ``(A) In general.--Subject to paragraph (1), a 
                State or local government that is a program participant 
                may establish formal educational qualifications for 
                personnel in organizations 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 qualification imposed 
                under subparagraph (A) for an individual religious 
                organization, if the Secretary determines that--
                            ``(i) the religious organization has a 
                        record of prior successful drug treatment for 
                        at least the preceding 3 years;
                            ``(ii) the educational qualifications have 
                        effectively barred such religious organization 
                        from becoming a program provider;
                            ``(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.''.

Summary: Faith-Based Drug Treatment Enhancement Act - Amends the Public Health Service Act to declare that the amendments made by this Act apply to each program that makes awards of Federal financial assistance to prevent or treat substance abuse. 
Allows, notwithstanding any other provision of law, a religious organization to be an award recipient, make subawards, provide services through vouchers, or accept vouchers for providing services. Makes religious organizations eligible on the same basis as any other nonprofit private organization.  Prohibits Federal or State: (1) discrimination against an organization on the basis that the organization has a religious character; and (2) requirements that a religious organization, in order to be a program participant, remove religious art, icons, scripture, or other symbols. 
Requires a religious organization to arrange for services through an alternative entity if an individual objects to the religious organization.  Allows a religious organization to require a beneficiary who has elected to receive services from the organization to actively participate in religious practice, worship, and instruction. 
Prohibits using funds for sectarian worship or instruction, unless the beneficiary may choose where the assistance is redeemed or allocated. 
Declares that assistance to or on behalf of a beneficiary is aid to the beneficiary and not to the organization.  Requires, if a State law or constitution would prevent the expenditure of State or local funds by religious organizations, that the Federal funds shall be segregated from State or other public funds. 
Requires, for personnel working in religious organization drug treatment programs, giving credit for religious education and training equivalent to credit given for secular course work.  Mandates waiver of educational requirements if the religious organization has a record of successful drug treatment and the State or local government fails to demonstrate empirically that the educational qualifications are necessary.