Charitable Choice: House-Passed Version of H.R. 7 Compared with Existing Charitable Choice Laws

CRS Report for Congress
Charitable Choice:
House-Passed Version of H.R. 7
Compared with Existing Charitable Choice Laws
Updated December 17, 2002
Vee Burke
Domestic Social Policy Division

Congressional Research Service ˜ The Library of Congress

Charitable Choice: House-Passed Version of H.R. 7
Compared with Existing Charitable Choice Laws
Summary
This report provides a side-by-side comparison (Table 1) of two versions of the
Charitable Choice Act of 2001 (Title II of H.R. 7) with three existing charitable
choice laws. The table shows how the bill passed by the House on July 19, 2001,
differs from the original version of H.R. 7, from the first charitable choice law (the
1996 welfare reform law, P.L. 104-193), and from two later laws that extended
charitable choice rules to substance abuse treatment and prevention services under
the Public Health Service Act (P.L. 106-310 and P.L. 106-554).¹
As the table shows, the House bill² refines somewhat the list of programs and
activities to which H.R. 7 rules would apply. In a new provision, it authorizes the
secretary of the department administering a covered program to require that
assistance be disbursed to recipients as vouchers redeemable by religious and other
providers chosen by individual beneficiaries. If a beneficiary objects to the religious
character of a provider, the government must provide assistance of equal value from
an accessible and alternate provider that is unobjectionable on religious grounds (the
original bill required the government to offer assistance from an alternative provider,
“including a nonreligious one”). The bill stipulates that if a religious organization
receiving direct funds (through contract or agreement) for provision of services offers
sectarian worship, instruction, or proselytization, the religious activity must be
voluntary and offered separate from the program funded under the Charitable Choice
Act. The bill retains the provision (which is in all charitable choice laws) allowing
religious organizations to hire only co-religionists, but it deletes a provision in the
original H.R. 7 measure that would have allowed a religious organization to require
its employees to adhere to its religious practices.
The House bill includes a new provision to earmark $50 million annually in
Justice Department funds for training and technical assistance to small
nongovernmental organizations in procedures relating to participation in federally
funded benefit programs. Common to both versions of H.R. 7, but absent from any
other charitable choice measure, is a declaration that funds received by a religious
organization under the Act are not to be construed as aid to religious organizations
or an endorsement of religion. The table shows that over time charitable choice
legislation has grown longer and more detailed, as sponsors have sought to draft
language to meet disparate concerns that charitable choice might weaken the
religious character of participating organizations, impair the religious freedom of
beneficiaries, and erode the wall separating church and state.

¹ A fourth current charitable choice law is Title II of 105-285, which applies its charitable
choice rules to any program carried out under the Community Services Block Grant
program. These provisions are shown in Table 1 of CRS Report RL31030.
² The House-passed version of Title II is the same as that approved on June 28, 2001, by the
House Judiciary Committee.

Contents
Background ......................................................1
Major Arguments of Supporters..................................2
Major Arguments of Opponents..................................2
Title ........................................................4
Short Title...................................................4
Purposes .....................................................5
Programs Covered.............................................6
Inclusion of Religious Organizations as Nongovern-mental Providers....8
Requirement for Consistency with the First Amendment to the
Constitution ..............................................9
Prohibition on Discrimination Against Religious Organizations........10
Funds Not Construed to Be Aid to Religious Organizations............11
Funds Not Construed to Be Endorsement of Religion.................12
Religious Character and Independence............................12
Employment Practices.........................................13
Application of Other Laws Forbidding Discrimination................15
Rights of Beneficiaries.........................................16
Nondiscrimination Against Beneficiaries..........................18
Limitation on Use of Funds for Sectarian Activities..................19
Authority to Require Use of Vouchers and Certificates...............20
Fiscal Accountability..........................................21
Effect on State and Local Funds.................................23
Treatment of Intermediate Contractors/Grantors
(Nongovernmental Organizations Acting under Agreement
with a Government Entity)..................................24
Technical Assistance for Small Nongovernmental Organizations........24
Compliance .................................................26
Preemption of Other Law?......................................27
List of Tables
Table 1. Charitable Choice: House-Passed H.R. 7 Compared with Three
Existing Charitable Choice Laws..................................4

Charitable Choice: House-Passed Version
of H.R. 7 Compared with
Existing Charitable Choice Laws
Background
Charitable choice is a set of provisions in law intended to allow religious
organizations to provide federally funded services from specifically named programs
on the same basis as any other nongovernmental provider without impairing the
religious character of the organizations or the religious freedom of recipients.
Charitable choice does not contain special funding for faith-based organizations and
it applies only to programs designated by Congress.
The 1996 welfare reform law (P.L. 104-193) put the first charitable choice
language into federal law, applying it to the block grant program of Temporary
Assistance for Needy Families (TANF).³ In 1998, Congress extended charitable
choice rules to grants under the Community Services Block Grant Act (P.L. 105-285)
and, in 2000, to grants for prevention and treatment of substance abuse under the
Public Health Service Act (P.L. 106-310 and P.L. 106-554).
The 2000 Republican platform proposed to apply charitable choice to all federal
social service programs. In their 2000 platform, Democrats said they believed that
faith-based programs should augment — not replace — government programs. “In
every instance where this Administration sees a responsibility to help people, it will
look to faith-based organizations, charities, and groups that have shown the ability
to change lives,” said the FY2002 budget press release of the Department of Health
and Human Services (HHS). “These groups will not replace government but rather
partner with it.”
H.R. 7, as passed by the House on July 19, 2001 by a vote of 233 to 198, would
apply charitable choice rules, significantly changed from those in current charitable
choice laws, to a range of (nine) program areas and activities, some of which may
overlap with TANF-funded activities. Sponsored by Representative Watts and
introduced on March 29 as the Community Solutions Act of 2001, H.R. 7 was
referred to the Committees on Ways and Means and the Judiciary. The measure
embodies two major components of President Bush’s faith-based initiative —
namely, tax incentives to expand private giving (Title I) and expansion of charitable
choice (Title II). The Ways and Means Committee dealt with Titles I and III, the
Judiciary Committee with Title II. As modified by the Ways and Means Committee

³ The 1996 law also applied charitable choice rules to food stamps, Medicaid, and
Supplemental Security Income (SSI) to the extent that they use contracts or vouchers.

and passed by the House, the tax incentives in Title I were scaled back sharply (for
instance, the Bush budget proposal to allow tax deductions for a portion of charitable
donations for non-itemizing tax filers was estimated to cost $84 billion in forgone
revenue over 10 years, but the smaller version voted by the House is estimated to cost
$6.4 billion). As introduced, Title III of H.R. 7 proposed a permanent program of
Individual Development Accounts, financed with tax credits, but the Ways and
Means Committee substituted language revising and extending an existing IDA
program and doubling its authorized funding. On June 18, 2002, the Senate Finance
Committee approved a revised H.R. 7 (now called the Care Act), which omitted
provisions to expand charitable choice, but included tax incentives for private giving
and IDA provisions. This bill did not reach the Senate floor.
The H.R. 7 charitable choice proposal resulted in several congressional hearings
(the first ever conducted on charitable choice) and has aroused much controversy.
For background and legal issues, see CRS Report RL31043.
Major Arguments of Supporters
^!To fund only secular programs discriminates against religious
programs. It is just as inappropriate for government to favor non-
religion as to promote one religion over another;
^!Faith-based programs can attract large amounts of volunteer time;
staff have a sense of mission that inspires those they serve; these
organizations often help in ways that government cannot, providing
love as well as services, guidance and friendship as well as a meal
or training;
^!Charitable choice has been carefully written to protect constitutional
values;
^!Charitable choice rules protect the religious character of faith-based
providers; they specify that religious organizations shall retain
control over the definition, development, practice, and expression of
their religious beliefs; and
^!Charitable choice rules protect the religious liberty of beneficiaries;
they require that if a recipient objects to the religious character of the
provider, the government must provide an alternate and accessible
provider.
Major Arguments of Opponents
^!Charitable choice may lead to unconstitutional use of government
funds to promote a specific religious practice or belief;
^!Since money is interchangeable, government funds given for a
secular purpose could indirectly help to fund the organization’s
religious purposes, undermining governmental neutrality toward
religion;
^!Charitable choice rules would require government to decide what is
a legitimate religion and what is not, what is preaching and what is
not;

^!Direct government grants to religious groups could make churches
dependent on government, eroding their mission and tending to
secularize them; and
^!Charitable choice promotes government-funded discrimination by
allowing religious organizations that receive federal dollars for their
services to hire and fire on the basis of religious beliefs.

Table 1. Charitable Choice: House-Passed H.R. 7 Compared with Three Existing Charitable Choice Laws⁴
Community Renewal
Charitable Choice Act Charitable Choice Act Children’s Health ActTax Relief Act
Title II of H.R. 7Title II of H.R. 7P.L. 104-193(Title XXXIII of (H.R. 5662), enacted as
as introducedas passed by the House(Welfare Reform)P.L. 106-310)part of P.L. 106-554
leProvision of assistanceSame as original H.R. 7Services provided byNondiscrimination andPrevention and treatment
under governmentcharitable, religious, orinstitutional safeguardsof substance abuse;
programs by religious andprivate organizations. for religious providers.services provided through
community organizations. [Section 104]religious organizations.
Would enact a newSame as original H.R. 7[Section 3305, as titled[Section 144 , Subtitle E,
Section 1991 in Titleabove, added to Titleof H.R. 5662, added to
ⁱ^{ki/CRS-RL31042}XXIV of the RevisedStatutes. XIX of Public HealthService Act a newTitle V of Public HealthService Act a new Part G,
^g/w[Section 201]Section 1955.]entitled “services
^s^.orprovided through
^le^akreligious organizations.”]
^://wikiort TitleCharitable Choice Act ofSame as original H.R. 7NoneNoneNone

^h^ttp2001. [Section 1991(a)]
⁴ A fourth current charitable choice law is Title II of P.L. 105-285, which applies its charitable choice rules to any program carried
out under the Community Services Block Grant program. These provisions are shown in Table 1 of CRS Report RL31030.

^g/w(3) To allow religiousunder covered programs.character of theallow the organizations
^s^.ororganizations to assist inorganizations, andto accept the funds to
^le^akthe administration andwithout diminishing theprovide services without
distribution of assistancereligious freedom ofimpairing the religious
^://wikiwithout impairing theirbeneficiaries. [Sectioncharacter of the
^h^ttpreligious character; and104(b)]organizations or the
(4) To protect thereligious freedom of the
religious freedom of thoseindividuals. [Section
in need who are eligible1955(a)]
for government aid,
including expanding the
possibility of their
choosing to receive
services from a religious
organization. [Section

1991(b)]

^s^.orincluding programsassistance to crimeprovided to beneficiaries,
^le^akfunded under Title I of thevictims and offenders’as a means of providing
Omnibus Crime Controlfamilies, includingaid. [Section 104 (a)(2)]
^://wikiand Safe Streets Act;programs funded under
^h^ttpTitle I of the OmnibusThese programs are food
Crime Control and Safestamps, Medicaid, and
— under federal housingStreets Act;Supplemental Security
laws; — related to theIncome (SSI) — to the
provision of assistanceextent that they are
under federal housingadministered through
laws, including thecontracts or vouchers
Community Developmentwith nongovernmental
— under Title I of theBlock Grant Programagencies. They generally
Workforce Investment(CDBG);are administered directly
Act (training programs — under subtitle B or Dby public agencies, and
and Job Corps);of Title I of thefederal law requires that
— under the OlderWorkforce Investmenteligibility for Medicaid
Americans Act;Act (training programs);and food stamps be
— under the Child Care — under the Olderdecided by government
and Development BlockAmericans Act;personnel or by persons

tinued)child care under the — (Note: Judiciary
CCDBG).Committee bill moved
— under the CommunityCDBG to housing entry
Development Block Grantabove)
program; — related to intervention
— related to interventionin and prevention of
in and prevention ofdomestic violence
domestic violenceactivities, including
activities;programs under the Child
Abuse Prevention and
ⁱ^{ki/CRS-RL31042}Treatment Act or the
^g/wFamily Violence
^s^.orPrevention and Services
^le^ak Ac t ;
— related to hunger relief — related to hunger relief
^://wikiactivities; activities;
^h^ttp — under the Job Access — under the Job Access
and Reverse Commuteand Reverse Commute
grant program under thegrant program under the
Federal Transit Act; and Federal Transit Act; and
— to assist students — to assist students
obtain equivalents ofobtain equivalents of
secondary schoolsecondary school
diplomas and activitiesdiplomas and activities
relating to non-school-relating to non-school-
hour programs. hour programs, including
programs under Chapter 3
of subtitle A of Title II of
the Workforce Investment
Act or part I of Title X of
the Elementary and
Secondary Education Act.

below. [Sectionimplemented in a mannerdisbursement redeemable1955(b)(2)]

1991(c)(1)(A)]that is consistent with thewith charitable,

establishment clause andreligious, or private
the free exercise clause oforganizations. [Section
the first amendment to the104(a)(1)]
Constitution. [Section

1991(c)(1)(A)]

covered program — so
long as the program is
ⁱ^{ki/CRS-RL31042}implemented consistent
^g/wwith the Establishment
^s^.orClause of the first
^le^akamendment to the
Constitution.
^://wiki [Section104(c)]
^h^ttp

ainstlocal governmentstate funds by religious
ligiousreceiving funds under abodies, neither the
ganizationscovered program mayfederal government nor a
discriminate against anstate receiving funds
organization that providesunder a covered program
assistance or applies tomay discriminate against
provide assistance underan organization that is or
the program, on the basisapplies to be a contractor
that the organization hasor that accepts
a religious character.certificates, vouchers, or
ⁱ^{ki/CRS-RL31042}[Section 1991(c)(1)(B)]other forms of
^g/wdisbursement, on the
^s^.orbasis that the
^le^akorganization has a
religious character.
^://wiki[Section 104(c)]
^h^ttp

rued togovernment funds or othergovernment funds or other
id toassistance received by aassistance received by a
ligiousreligious organization forreligious organization for
ganizationsthe provision of servicesthe provision of services
under this Act constitutesunder this Act constitutes
aid to needy individualsaid to needy individuals
and families, the ultimateand families, the ultimate
beneficiaries of thebeneficiaries of the
services, and not aid to theservices, and not support
religious organization.for religion or the
[Section 1991(c)(2)]organization’s religious
ⁱ^{ki/CRS-RL31042}beliefs or practices.
^g/wNotwithstanding these
^s^.orprovisions, Title VI of the
^le^akCivil Rights Act, which
bars discrimination on the
^://wikibasis of race, color, or
^h^ttpnational origin, shall
apply to organizations
receiving direct assistance
funded under any covered
program. [Section

1991(c)(2)]

1991(d)(2)]

oyment
ices
Civil RightsThe exemption of aThe exemption of aA religiousThe exemption of aThe exemption of a
Actreligious organization religious organization organization’s exemptionreligious organizationreligious organization
exemptionunder Sections 702 orunder Sections 702 orunder Section 702 of theunder Sections 702 orunder Section 702 of the
703(e)(2)^b of the Civil703(e)(2)^b of the CivilCivil Rights Act 703(e)(2)^b of the CivilCivil Rights Act
Rights Act regardingRights Act regardingregarding employmentRights Act regardingregarding employment
employment practices isemployment practices ispractices is not affectedemployment practices ispractices is not affected
not affected by itsnot affected by itsby its participation in, ornot affected by itsby its participation in, or
provision of assistanceprovision of assistancereceipt of funds, fromprovision of servicesreceipt of funds from, a

religiousprovision of law, athat provides services
practicesreligious organization thatunder a covered
provides assistance undersubstance abuse
a covered program mayprogram may require
require that its employeesthat its employees
adhere to its religiousadhere to rules
practices. [Sectionforbidding the use of

1991(e)(1)]drugs or alcohol.

[Section 1955(d)(1)]

584(b)]

ication ofNothing in this Act altersSame as in original H.R. 7P.L. 104-193 says thatNo provisionNothing in this section
sthe duty of a religious[Section 1991(f)]any program or activityshall be construed to
ddingorganization to complythat receives fundingmodify or affect any
criminationwith federal lawsfrom the program ofother federal or state law
prohibiting discrimination Temporary Assistanceor regulation concerning
on the basis of: race,for Needy Families isdiscrimination in
color, or national originsubject to theemployment. [Section
(Title VI of the Civilnondiscrimination582(e)]
Rights Act); sex,provisions of the AgeNote: The Public HealthNote: The Public Health
blindness, or visualDiscrimination Act,Service Act says that onService Act says that on
impairment (Title IX ofSection 504 of thegrounds of religion, nogrounds of religion, no
the EducationRehabilitation Act, theone shall be excludedone shall be excluded

^g/w1991(g)(1)]religious belief. [Sectionpractice. [Sectiona religious belief, or a
^s^.or1991(h)(1)].104(g)]refusal to actively
^le^akA religious organizationA religious organizationparticipate in a religious
^://wikiproviding assistanceproviding assistancepractice. [Section
^h^ttpthrough a voucher,through a voucher,1955(f)]
certificate, or other formcertificate, or other form
of indirect disbursementof indirect disbursement
under a covered program,under a covered program,
shall not discriminate, inmay not deny admission
carrying out the program,into the program on the
against a beneficiary orbasis of religion, religious
applicant on the basis ofbelief, or refusal to hold a
religion, religious belief,religious belief. [Section
or refusal to hold a1991(h)(2)]
religious belief. [SectionNote: If a religious
1991(g)(2)]organization that receives
funds through a grant or
cooperative agreement
offers religious activities,
they must be voluntary

ⁱ^{ki/CRS-RL31042}worship, instruction, orproselytization.If such an organizationoffers sectarian worship,instruction, orproselytization. [Sectionbe spent for sectarianworship, instruction, or
^g/w[Section 1991(i)] instruction, or104(j)]proselytization. [Section
^s^.orproselytization, the[Note: This prohibition1955(i)]
^le^akreligious activity must bedoes not apply in cases
^://wikivoluntary for recipientsof assistance provided to
^h^ttpand offered separate fromindividuals through
the program funded undercertificates, vouchers, or
this Act. other forms of
Each recipientEach recipientdisbursement redeemable
organization must file aorganization must file aat charitable, religious,
signed certificateseparately signedor private organizations.]
providing assurance that itcertificate certifying that
will comply with thethe organization is aware
above rule. [Sectionof and will comply with
1991(i)]these rules. [Section

1991(j)]

re Use ofpurpose of a covered
program, the Secretary of
ificatesthe department
administering it may
require that some or all of
the funds be in the form of
vouchers, certificates or
other forms of indirect
disbursement.
Organizations receive
these funds only as a
ⁱ^{ki/CRS-RL31042}result of private choices of
^g/wbeneficiaries, and no
^s^.orgovernment endorsement
^le^akof any religion, or of
religion generally, occurs.
^://wiki[Section 1991(l)]
^h^ttp

provided into a separatecooperative agreement, itinto separate accounts,
account. Only themust segregateonly the financial
government funds aregovernment funds into aassistance provided with
subject to audit by theseparate account. If itthose funds is subject to
government. [Sectionprovides assistanceaudit. [Section

1991(h)(2)]through vouchers,104(h)(2)]

certificates,

1991(i)(2)]

Self AuditNo provisionAn organization providingNo provisionNo provisionNo provision

services under any
covered program shall
ⁱ^{ki/CRS-RL31042}conduct annually a self
^g/waudit for compliance with
^s^.orits duties under this Act
^le^akand submit a copy to the
appropriate government
^://wikiagency, along with a plan
^h^ttpto correct any variances.
[Section 1991(i)(3)]

government contributes[Section 1991(k)][Section 1955(j)]
funds to carry out a
covered program, the state
or local government may
segregate its funds from
the federal funds provided
for the program or may
commingle its funds with
federal funds. If funds are
commingled, the
provisions of this Act
ⁱ^{ki/CRS-RL31042}apply in the same manner,
^g/wand to the same extent, as
^s^.orthey apply to federal
^le^akfunds.
[Section 1991(j)]
^://wiki
^h^ttp

1991(k)]

calNo provisionOut of amounts madeNo provisionNo provisionNo provision

sistance foravailable for Office of
allJustice Programs,
ern-including those for the
Office of Community
ganizationsOriented Policing
Services, authorizes $50
million annually to
provide training and
technical assistance to
small nongovernmental
organizations, as
determined by the
Attorney General,

1991(o)].

agency that has allegedlystate official or localappropriate state courtstate court against the
committed the violation. government agency thatagainst the entity orentity, agency, or
A party alleging that thehas allegedly committedagency that allegedlyofficial that allegedly
federal government hasthe violation. A partycommits the violation. commits the violation.
violated its rights underalleging that the federal[Section 104(i)][Section 1955(h)]
ⁱ^{ki/CRS-RL31042}this Act may bring a civilgovernment has violated
^g/waction for appropriateits rights under this Act
^s^.orrelief in an appropriatemay bring a civil action
^le^akfederal district courtfor injunctive relief in
against the official orfederal district court
^://wikigovernment agency thatagainst the official or
^h^ttpallegedly committed thegovernment agency that
violation. [Sectionallegedly committed the
1991(l)]violation. [Section

1991(n)]

Community Renewal
Charitable Choice Act Charitable Choice Act Children’s Health ActTax Relief Act
Title II of H.R. 7Title II of H.R. 7P.L. 104-193(Title XXXIII of (H.R. 5662), enacted as
as introducedas passed by the House(Welfare Reform)P.L. 106-310)part of P.L. 106-554
ion ofNo explicit provision.No explicit provision.^c (InNothing in the charitableNo explicit provision. Nothing in this section
?a colloquy on the Housechoice provisions of P.L.shall be construed to
floor before passage, Rep.104-193 is to bemodify or affect any
Watts, bill sponsor, wasconstrued to preempt aother federal or state law
asked whether he wouldprovision of a stateor regulation relating to
commit to working toconstitution or law thatdiscrimination in
craft language that wouldprohibits or restrictsemployment. [Section
ensure that religiousspending of state funds582(e)]
organizations comply within or by religious
state and local civil rightsorganizations. [Section
laws. Rep. Watts said he104(k)]
was willing to make a
ⁱ^{ki/CRS-RL31042}commitment to “more
^g/wclearly address” this issue
^s^.orin conference.)
^le^ak
^://wiki^a^Un^der^th^e^C^C^D^B^G^{, relig}^iou^s^prov^iders^m^a^y^receiv^e^f^uⁿ^dⁱⁿ^g^on^th^e^s^a^m^e^basⁱ^s^asⁿ^oⁿ^s^ectarian^prov^iders^.^How^e^v^e^r,^relig^iou^s^provⁱ^d^e^r^{s m}^a^y^use^fund^{s fo}^r^c^o^nst^r^uc^tⁱ^oⁿ
^h^ttp⁽^g^en^er^ally^dⁱ^sallo^w^e^d^f^o^r^o^t^h^e^r^p^r^o^v^id^er^s)^to^th^{e ex}^ten^tⁿ^eed^ed^to^b^rⁱⁿ^g^f^{acilities in}^t^o^c^o^m^p^lian^{ce w}^ith^h^ealth^an^d^saf^e^ty^stan^d^a^rd^{s. Use o}^f^C^C^B^{DG f}^uⁿ^d^{s f}^o^r
^r^e^lig^io^u^s^activ^ities,ⁱⁿ^clu^dⁱⁿ^g^sectar^ian^w^o^r^s^hⁱ^p^o^rⁱⁿ^str^u^ctioⁿ^,^g^eⁿ^e^r^a^lly^{is p}^r^o^h^ib^ited^;^b^u^{t th}^{is p}^r^o^h^ib^itioⁿ^d^o^e^{s n}^o^{t ap}^p^l^y^{to f}^uⁿ^d^s^receiv^e^{d by}^prov^idersⁱⁿ^th^e
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^{a p}^e^r^s^oⁿ^w^h^o^r^e^g^u^l^ar^ly^p^a^r^ticip^{ates in}^t^h^e^o^r^g^aⁿⁱ^z^a^t^ioⁿ^’^{s activ}^{ities. A}^l^so^{, sectar}^ian^o^r^g^aⁿⁱ^zatioⁿ^s^m^a^y^r^e^q^u^ir^{e em}^p^l^o^y^{ees to}^ad^h^e^r^e^to^th^eir^r^e^lig^io^u^s^ten^e^{ts o}^r
^teachⁱⁿ^g^an^{d to ru}^les^f^o^rbiddin^g^th^{e u}^s^{e of}^dru^g^s^or^alcoh^o^l,^uⁿ^l^es^s^{80% or m}^o^{re of}^th^{eir operati}ⁿ^g^bu^dg^{et com}^e^s^f^r^om^f^e^{deral o}^{r s}^t^{ate f}^uⁿ^d^s^.^{See C}^R^{S R}^e^port
^R^L^30785,^T^h^{e C}^h^{ild C}^a^r^e^{and Development}^{Block Gr}^{ant: Backgr}^{ound and Funding}^{, b}^y^A^{lice B}^u^tler^an^d^Melin^d^a^Gish^.^b
^It^appears^t^h^at^provⁱ^sⁱ^oⁿ^s^of^S^ectⁱ^oⁿ^{703(e)(2) of}^t^h^{e C}ⁱ^vⁱ^l^Rⁱ^g^h^t^s^A^c^t^{are s}^u^bs^u^m^{ed by}^S^ectⁱ^oⁿ^702.^c
^Bef^o^re^pas^s^a^g^e^,^t^h^{e qu}^es^tⁱ^oⁿ^w^a^s^as^k^e^{d on}^t^h^{e H}^o^u^s^{e f}^l^oor:^“^I^f^{a s}^t^at^{e l}^a^w^prohⁱ^bⁱ^t^s^di^s^c^ri^mⁱⁿ^a^tⁱ^oⁿ^bas^e^{d on}^{a part}ⁱ^c^u^l^{ar ch}^a^r^acter^{istic, an}^d^if^{a r}^e^lig^io^u^s^o^r^g^aⁿⁱ^zatioⁿ
^w^o^u^l^d^o^r^dⁱⁿ^a^r^ily⁽^b^ased^oⁿ^{state law}⁾^b^e^r^e^q^u^ir^ed^to^co^m^p^ly^w^ith^th^{at law}^,^w^o^u^l^d^{H.R. 7}^ch^an^g^e^th^at^situ^atioⁿⁱⁿ^an^y^w^a^y^?^Rep^.^W^a^{tts r}^e^p^lied^:^“^Y^{es, H.R. 7}^w^o^u^l^d
^ch^an^g^e^th^{is situ}^atioⁿ^,ⁱⁿ^{a p}^a^r^ticu^l^arⁱⁿ^stan^{ce. I}^f^{a r}^e^lig^io^u^s^o^r^g^aⁿⁱ^zatioⁿ^w^e^r^e^to^co^m^mⁱⁿ^g^l^{e f}^e^d^e^r^a^{l f}^uⁿ^d^{s w}^ith^{state m}^oⁿⁱ^e^s^,ⁱ^t^c^o^u^l^d^a^sse^r^tⁱ^t^s^rⁱ^ght^und^e^r
^s^u^bs^ection^{(d) an}^{d (e) of}^H.R^.^{7 ag}^ain^s^t^th^e^en^f^o^rcem^en^t^of^s^t^at^{e o}^r^lo^{cal p}^r^o^c^u^r^em^en^{t p}^r^o^v^isioⁿ^s^th^{at lim}^ited^th^{e r}^e^lig^io^u^s^o^r^g^aⁿⁱ^zatioⁿ^’^{s ab}^ility^to^hⁱ^r^e^staf^f^oⁿ
^a^r^e^lig^io^u^s^b^a^{sis.” No}^{te: Su}^b^s^ectioⁿ⁽^d⁾^coⁿ^cerⁿ^s^th^{e r}ⁱ^g^h^t^o^f^{a r}^e^lig^io^u^s^o^r^g^aⁿⁱ^zatioⁿ^to^r^e^tain^coⁿ^t^r^o^l^o^v^er^its^o^r^g^aⁿⁱ^zatioⁿ^a^{l ch}^{aracter an}^{d au}^ton^o^m^y^{. Su}^bs^ection
^{(e) prov}^ides^th^{at th}^{e relig}^iou^s^org^aⁿⁱ^zation^’^s^rig^h^t^{to h}ⁱ^{re an}^{d f}ⁱ^{re on}^th^{e bas}ⁱ^s^of^relig^ion^(uⁿ^d^{er Section}⁷⁰²^of^T^itle^VII^o^f^th^e^Civ^{il Rig}^h^t^{s A}^c^t)^{is n}^o^{t af}^f^ected
^b^y^{its p}^a^r^ticip^atin^gⁱⁿ^a^p^r^o^g^r^a^m^c^o^v^e^r^e^d^b^y^th^{e A}^c^{t. I}^t^also^p^r^o^v^id^{es th}^{at an}^y^p^r^o^v^isioⁿⁱⁿ^{a co}^v^e^r^e^d^p^r^o^g^r^a^m^th^{at is in}^coⁿ^sⁱ^sten^{t w}^ith^o^r^th^{at w}^o^u^l^d^dⁱ^mⁱⁿⁱ^sh
^t^h^{e ex}^erci^s^e^of^t^h^{e rel}ⁱ^gⁱ^o^u^s^org^aⁿⁱ^zatⁱ^oⁿ^’^s^au^t^oⁿ^o^m^y^uⁿ^d^{er S}^ectⁱ^oⁿ^{702 s}^h^al^l^h^a^v^eⁿ^o^ef^f^ect^.