Charitable Choice Guide - Appendix

(From Public Law 104-193, the "Personal Responsibility
and Work Opportunity Reconciliation Act of 1996," enacted
August 22, 1996).

SEC. 104. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR
PRIVATE ORGANIZATIONS.

(a) IN GENERAL.?

(1) STATE OPTIONS. A State May

(A) administer and provide services under the programs
described in subparagraphs (A) and (B)(i) of paragraph (2)
through contracts with charitable, religious, or private
organizations; and

(B) provide beneficiaries of assistance under the
programs described in subparagraphs (A) and (B)(ii) of paragraph
(2) with certificates, vouchers, or other forms of disbursement
which are redeemable with such organizations.

(2) PROGRAMS DESCRIBED. The programs described
in this paragraph are the following programs:

(A) A State program funded under part A of title
W of the Social Security Act (as amended by section 103(a)
of this Act).

(B)Any other program established or modified under
title I or II of this Act, that

(i) permits contracts with organizations; or

(ii) permits certificates, vouchers, or other forms
of disbursement to be provided to beneficiaries, as a means
of providing assistance.

(b) RELIGIOUS ORGANIZATIONS. The purpose of this
section is to allow States to contract with religious organizations,
or to allow religious organizations to accept certificates,
vouchers, or other forms of disbursement under any program
described in subsection(a)(2), on the same basis as any
other nongovernmental provider without impairing the religious
character of such organizations, and without diminishing
the religious freedom of beneficiaries of assistance funded
under such program.

(c) NONDISCRIMINATION AGAINST RELIGIOUS Organizations.
In the event a State exercises its authority under subsection
(a), religious organizations are eligible, on the same basis
as any other private organization, as contractors to provide
assistance, or to accept certificates, vouchers, or other
forms of disbursement, under any program described in subsection
(a)(2) so long as the programs are implemented consistent
with the Establishment Clause of the United States Constitution.
Except as provided in subsection (k), neither the Federal
Government nor a State receiving funds under such programs
shall discriminate against an organization which is or applies
to be a contractor to provide assistance, or which accepts
certificates, vouchers, or other forms of disbursement,
on the basis that the organization has a religious character.

(d) RELIGIOUS CHARACTER AND FREEDOM.?

(1) RELIGIOUS ORGANIZATIONS.a religious organization
with a contract described in subsection (a)( 1 )(A), or
which accepts certificates, vouchers, or other forms of
disbursement under subsection (a)(1) (B), shall retain its
independence from Federal,State, and local governments,
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 eligible to contract to provide assistance,
or to accept certificates, vouchers, or other forms of disbursement,
funded under a program described in subsection (a)(2).

(e) RIGHTS OF BENEFICIARIES OF ASSISTANCE.

(1) IN GENERAL.?If an individual described in paragraph

(2)has an objection to the religious character
of the organization or institution from which the individual
receives, or would receive,assistance funded under any program
described in subsection (a)(2),the State in which the individual
resides shall provide such individual (if otherwise eligible
for such assistance) within a reasonable period of time
after the date of such objection with assistance from an
alternative provider that is accessible to the individual
and the value of which is not less than the value of assistance
which the individual would have received from such organization.
(2) INDIVIDUAL DESCRIBED.?An individual described in this
paragraph is an individual who receives, applies for, or
requests to apply for, assistance under a program described
in subsection (a)(2).

(f) EMPLOYMENT PRACTICES religious organization's
exemption provided under section 702 of the Civil Rights
Act of 1964 (42 U.S.C.2000e-la) regarding employment practices
shall not be affected by its participation in, or receipt
of funds from, programs described in subsection (a)(2).

(g) NONDISCRIMINATION AGAINST BENEFICIARIES. Except
as otherwise provided in law, a religious organization shall
not discriminate against an individual in regard to rendering
assistance funded under any program described in subsection
(a)(2) on the basis of religion, a religious belief, or
refusal to actively participate in a religious practice.

(h) FISCAL ACCOUNTABILITY.

(1) IN GENERAL.except as provided in paragraph (2),
any religious organization contracting to provide assistance
funded under any program described in subsection (a)(2)
shall be subject to the same regulations as other contractors
to account in accord with generally accepted auditing principles
for the use of such funds provided under such programs.

(2) LIMITED AUDIT. If such organization segregates
Federal funds provided under such programs into separate
accounts, then only the financial assistance provided with
such funds shall be subject to audit.

(i) COMPLIANCE. Any party which seeks to enforce
its rights under this section may assert a civil action
for injunctive relief exclusively in an appropriate State
court against the entity or agency that allegedly commits
such violation.

(j) LIMITATIONS TO USE OF FUNDS FOR CERTAIN PURPOSES.?No
funds provided directly to institutions or organizations
to provide services and administer programs under subsection
(a)( 1 )(A) shall be expended for sectarian worship, instruction,
or proselytization.

(k) PREEMPTION. Nothing in this section shall be
construed to preempt any provision of a State constitution
or State statute that prohibits or restricts the expenditure
of State funds in or by religious organizations.