Comparison of Proposed Charitable Choice Act of 2001 with Current Charitable Choice Law

Publication Date: June 2001

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

Type:

Abstract:

This report provides a side-by-side comparison (Table 1) of the charitable choice provisions of H.R. 7 with those of the 1996 welfare reform law (P.L. 104-193) and of later laws that extended charitable choice rules to the Community Services Block Grant Act (P.L. 105-285) and to substance abuse treatment and prevention services under the Public Health Service Act (P.L 106-310 and P.L. 106-554).1

Common Provisions. The Charitable Choice Act (Title II of H.R. 7) and the four existing charitable choice laws provide that participating religious organizations shall retain their independence from government, including control over the definition, development, practice, and expression of their religious beliefs. All prohibit government from requiring religious organizations to alter their form of internal governance, or to remove religious art, icons, scripture, or other symbols; all provide that the exemption of religious organizations under Section 702 of the Civil Rights Act regarding hiring and firing is not affected by their participation in, or receipt of funds from programs covered by charitable choice. With one exception (Community Services Block Grant Act) all five measures provide that if a beneficiary or applicant objects to the religious character of the organization providing help, an alternate and accessible provider must be made available. With the same exception, all measures forbid a religious organization from discriminating against a beneficiary or applicant on the basis of religion or religious belief. All charitable choice measures place limits on use of federal funds for sectarian activities. In general, they prohibit use of funds provided directly to a faith-based organization (by contract or grant) for sectarian worship, instruction, or proselytization. With one exception (the 1996 welfare law) all measures require religious organizations to segregate government funds into a separate account and stipulate that the government may audit only the government funds.

Differing Provisions. Two of the laws (the 1996 welfare law and one of the substance abuse measures) prohibit discrimination by a faith-based provider against a beneficiary for refusal to actively participate in a religious practice - prohibiting denial of services for this refusal. H.R. 7 does not contain this prohibition. H.R. 7 alone explicitly allows a faith-based provider, notwithstanding any other law, to require its employees to "adhere to its religious practices." H.R. 7 and the two substance abuse measures require the government to notify beneficiaries and applicants of their right to an alternate provider. The 1996 welfare reform law is the only measure to state that its charitable choice provisions do not preempt any provision of state law that prohibits or restricts spending of state funds in or by religious organizations.