Equal Participation of Faith-Based Organizations in Department of Justice's Programs and Activities: Implementation of Executive Order 13831, 2921-2929 [2019-27777]
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Federal Register / Vol. 85, No. 12 / Friday, January 17, 2020 / Proposed Rules
internal governance, and it may retain
religious terms in its organization’s
name, select its board members on a
religious basis, and include religious
references in its organization’s mission
statements and other governing
documents.
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(f) No grant document, contract,
agreement, covenant, memorandum of
understanding, policy, or regulation
used by USAID shall require faith-based
organizations to provide assurances or
notices where the Agency does not
require them of non-faith-based
organizations. Any restrictions on the
use of grant funds shall apply equally to
faith-based and non-faith-based
organizations. All organizations that
participate in USAID’s programs
(including through a prime award or
sub-award), including faith-based ones,
must carry out eligible activities in
accordance with all program
requirements and other applicable
requirements that govern the conduct of
USAID-funded activities, including
those that prohibit the use of direct
financial assistance from USAID to
engage in explicitly religious activities.
No grant document, contract, agreement,
covenant, memorandum of
understanding, policy, or regulation
used by USAID shall disqualify faithbased organizations from participating
in USAID’s programs because such
organizations are motivated or
influenced by religious faith to provide
social services or other assistance, or
because of their religious exercise or
affiliation.
(g) A religious organization does not
forfeit its exemption from the Federal
prohibition on employment
discrimination on the basis of religion,
set forth in section 702(a) of the Civil
Rights Act of 1964, 42 U.S.C. 2000e–1,
when the organization receives financial
assistance from USAID. An organization
that qualifies for such exemption may
select its employees on the basis of their
acceptance of, and/or adherence to, the
religious tenets of the organization.
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(l) Nothing in this section shall be
construed in such a way as to
advantage, or disadvantage, faith-based
organizations affiliated with historic or
well-established religions or sects in
comparison with other religions or
sects.
Brian Klotz,
Deputy Director, Center for Faith and
Opportunity Initiatives.
[FR Doc. 2019–27164 Filed 1–16–20; 8:45 am]
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DEPARTMENT OF JUSTICE
28 CFR Part 38
[Docket No. OAG 166; AG Order No. 4596–
2019]
RIN 1105–AB58
Equal Participation of Faith-Based
Organizations in Department of
Justice’s Programs and Activities:
Implementation of Executive Order
13831
Office of the Attorney General,
Department of Justice.
ACTION: Notice of proposed rulemaking.
AGENCY:
The rule proposes to amend
Department of Justice (‘‘Department’’)
regulations on equal treatment for faithbased and other neighborhood
organizations and to implement
Executive Order 13831 (Establishment
of a White House Faith and Opportunity
Initiative). Among other changes, this
rule proposes changes to provide clarity
about the rights and obligations of faithbased organizations participating in
Department programs, clarify the
Department’s guidance documents for
financial assistance in regard to faithbased organizations, and eliminate
certain requirements for faith-based
organizations that no longer reflect
executive branch guidance. This
proposed rulemaking is intended to
ensure that the Department’s social
service programs are implemented in a
manner consistent with the
requirements of Federal law, including
the First Amendment to the
Constitution and the Religious Freedom
Restoration Act.
DATES: Comments must be received by
the Department on or before February
18, 2020.
ADDRESSES: To ensure proper handling
of comments, please reference Docket
No. OAG 166 on all electronic and
written correspondence. The
Department encourages the electronic
submission of all comments through
https://www.regulations.gov using the
electronic comment form provided on
that site. For easy reference, an
electronic copy of this document is also
available at that website. It is not
necessary to submit paper comments
that duplicate the electronic
submission, as all comments submitted
to https://www.regulations.gov will be
posted for public review and are part of
the official docket record. However,
should you wish to submit written
comments through regular or express
mail, they should be sent to Robert
Davis, Acting Director, Office of
Communications, Office of Justice
SUMMARY:
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Programs, 810 7th St. NW, Washington,
DC 20531.
FOR FURTHER INFORMATION CONTACT:
Robert Davis, Acting Director, Office of
Communications, Office of Justice
Programs, 810 7th St. NW, Washington,
DC 20531, 202–307–0703.
SUPPLEMENTARY INFORMATION:
I. Posting of Public Comments
Please note that all comments
received are considered part of the
public record and made available for
public inspection online at https://
www.regulations.gov. Information made
available for public inspection includes
personal identifying information (such
as your name, address, etc.) voluntarily
submitted by the commenter.
If you wish to submit personal
identifying information (such as your
name, address, etc.) as part of your
comment, but do not wish it to be
posted online, you must include the
phrase ‘‘PERSONAL IDENTIFYING
INFORMATION’’ in the first paragraph
of your comment. You must also locate
all the personal identifying information
that you do not want posted online in
the first paragraph of your comment and
identify what information you want the
agency to redact. Personal identifying
information identified and located as set
forth above will be placed in the
agency’s public docket file, but not
posted online.
If you wish to submit confidential
business information as part of your
comment but do not wish it to be posted
online, you must include the phrase
‘‘CONFIDENTIAL BUSINESS
INFORMATION’’ in the first paragraph
of your comment. You must also
prominently identify confidential
business information to be redacted
within the comment. If a comment has
so much confidential business
information that it cannot be effectively
redacted, the agency may choose not to
post that comment (or to post that
comment only partially) on https://
www.regulations.gov. Confidential
business information identified and
located as set forth above will not be
placed in the public docket file, nor will
it be posted online.
If you wish to inspect the agency’s
public docket file in person by
appointment, please see the FOR
FURTHER INFORMATION CONTACT
paragraph.
II. Background
Shortly after taking office in 2001,
President George W. Bush signed
Executive Order 13199, Establishment
of White House Office of Faith-Based
and Community Initiatives, 66 FR 8499
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(Jan. 31, 2001). That Executive Order
sought to ensure that ‘‘private and
charitable community groups, including
religious ones, . . . have the fullest
opportunity permitted by law to
compete on a level playing field’’ in the
delivery of social services. To do so, it
created an office within the White
House, the White House Office of FaithBased and Community Initiatives, with
primary responsibility to ‘‘establish
policies, priorities, and objectives for
the Federal Government’s
comprehensive effort to enlist, equip,
enable, empower, and expand the work
of faith-based and other community
organizations to the extent permitted by
law.’’ Id.
On December 12, 2002, President
Bush signed Executive Order 13279,
Equal Protection of the Laws for FaithBased and Community Organizations,
67 FR 77141 (Dec. 16, 2002). Executive
Order 13279 set forth the principles and
policymaking criteria to guide Federal
agencies in formulating and
implementing policies with
implications for faith-based
organizations and other community
organizations, to ensure equal
protection of the laws for faith-based
and community organizations, and to
expand opportunities for, and
strengthen the capacity of, faith-based
and other community organizations to
meet social needs in America’s
communities. In addition, Executive
Order 13279 directed specified agency
heads to review and evaluate existing
policies that had implications for faithbased and community organizations
relating to their eligibility for Federal
financial assistance for social service
programs and, where appropriate, to
implement new policies that were
consistent with and necessary to further
the fundamental principles and
policymaking criteria articulated in the
Order. Consistent with Executive Order
13279, the Department of Justice
promulgated regulations at 28 CFR part
38 (‘‘Part 38’’). See 69 FR 2832 (Jan. 21,
2004).
President Obama maintained
President Bush’s program, but modified
it in certain respects. Shortly after
taking office, President Obama signed
Executive Order 13498, Amendments to
Executive Order 13199 and
Establishment of the President’s
Advisory Council for Faith-Based and
Neighborhood Partnerships, 74 FR 6533
(Feb. 9, 2009). This Executive Order
changed the name of the White House
Office of Faith-Based and Community
Initiatives to the White House Office of
Faith-Based and Neighborhood
Partnerships, and it created an Advisory
Council that subsequently submitted
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recommendations regarding the work of
the Office.
On November 17, 2010, President
Obama signed Executive Order 13559,
Fundamental Principles and
Policymaking Criteria for Partnerships
with Faith-Based and Other
Neighborhood Organizations, 75 FR
71319 (Nov. 22, 2010). Executive Order
13559 made various changes to
Executive Order 13279, including
making minor and substantive textual
changes to the fundamental principles;
adding a provision requiring that any
religious social service provider refer
potential beneficiaries to an alternative
provider if the beneficiaries object to the
first provider’s religious character;
adding a provision requiring that the
faith-based provider give notice of
potential referral to potential
beneficiaries; and adding a provision
that awards must be free of political
interference and not be based on
religious affiliation or lack thereof. An
interagency working group was tasked
with developing model regulatory
changes to implement Executive Order
13279 as amended by Executive Order
13559, including provisions that
clarified the prohibited uses of direct
financial assistance, allowed religious
social service providers to maintain
their religious identities, and
distinguished between direct and
indirect assistance. These efforts
eventually resulted in amendments to
agency regulations, including the
Department’s Part 38. The revised
regulations defined ‘‘indirect federal
financial assistance’’ as government aid
to a beneficiary, such as a voucher, that
flows to a religious provider only
through the genuine and independent
choice of the beneficiary, 28 CFR
38.3(b), and made a number of other
changes implementing the amended
Executive Order and other changes for
clarity and consistency. The rules
required not only that faith-based
providers give the notice of the right to
an alternative provider specified in
Executive Order 13559, but also
required faith-based providers, but not
other providers, to give written notice to
beneficiaries and potential beneficiaries
of programs funded with direct Federal
financial assistance of various rights,
including nondiscrimination based on
religion, the requirement that
participation in any religious activities
must be voluntary and that they must be
provided separately from the federally
funded activity, and that beneficiaries
may report violations. See 81 FR 19355
(April 4, 2016).
President Trump has given new
direction to the program established by
President Bush and continued by
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President Obama. On May 4, 2017,
President Trump issued Executive
Order 13798, Presidential Executive
Order Promoting Free Speech and
Religious Liberty, 82 FR 21675 (May 9,
2017). Executive Order 13798 states that
‘‘Federal law protects the freedom of
Americans and their organizations to
exercise religion and participate fully in
civic life without undue interference by
the Federal Government’’ and further
provides that the executive branch will
honor and enforce those protections. It
also directed the Attorney General to
‘‘issue guidance interpreting religious
liberty protections in Federal law.’’ 82
FR at 21675. Pursuant to this
instruction, the Attorney General, on
October 6, 2017, issued the
Memorandum for All Executive
Departments and Agencies, ‘‘Federal
Law Protections for Religious Liberty,’’
82 FR 49668 (Oct. 26, 2017) (the
‘‘Attorney General’s Memorandum on
Religious Liberty’’).
The Attorney General’s Memorandum
on Religious Liberty emphasized that
individuals and organizations do not
give up religious liberty protections by
providing government-funded social
services, and that ‘‘government may not
exclude religious organizations as such
from secular aid programs . . . when
the aid is not being used for explicitly
religious activities such as worship or
proselytization.’’
On May 3, 2018, President Trump
signed Executive Order 13831,
Executive Order on the Establishment of
a White House Faith and Opportunity
Initiative, 83 FR 20715 (May 8, 2018),
amending Executive Order 13279 as
amended by Executive Order 13559, and
other related Executive Orders. Among
other things, Executive Order 13831
changed the name of the ‘‘White House
Office of Faith-Based and Neighborhood
Partnerships,’’ as established in
Executive Order 13498, to the ‘‘White
House Faith and Opportunity
Initiative’’; changed the way that the
Initiative is to operate; directed
departments and agencies with ‘‘Centers
for Faith-Based and Neighborhood
Partnerships’’ to change those names to
‘‘Centers for Faith and Opportunity
Initiatives’’; and ordered that
departments and agencies without a
Center for Faith and Opportunity
Initiatives designate a ‘‘Liaison for Faith
and Opportunity Initiatives.’’ 83 FR at
20715, 20716. Executive Order 13831
also eliminated the alternative provider
referral requirement and requirement of
notice thereof established in Executive
Order 13559 described above. 83 FR at
20715.
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Alternative Provider Referral and
Alternative Provider Notice
Requirement
Executive Order 13559 imposed
notice and referral burdens on faithbased organizations not imposed on
secular organizations. Section 1(b) of
Executive Order 13559 had amended
section 2 of Executive Order 13279,
Fundamental Principles, by, in
pertinent part, adding a new subsection
(h) to section 2. As amended, section
2(h)(i) provided that if a beneficiary or
a prospective beneficiary of a social
service program supported by Federal
financial assistance objects to the
religious character of an organization
that provides services under the
program, that organization shall, within
a reasonable time after the date of the
objection, refer the beneficiary to an
alternative provider. Section 2(h)(ii)
directed that agencies establish policies
and procedures to ensure that referrals
are timely and follow privacy laws and
regulations; that providers notify
agencies of and track referrals; and that
each beneficiary ‘‘receive[ ] written
notice of the protections set forth in this
subsection prior to enrolling in or
receiving services from such program’’
(emphasis added). The reference to ‘‘this
subsection’’ rather than to ‘‘this
Section’’ indicated that the notice
requirement of section 2(h)(ii) was
referring only to the alternative provider
provisions in subsection (h), not all of
the protections in section 2. In 2016, the
Department of Justice revised its
regulations to conform to Executive
Order 13559. 28 CFR 38.6(c)(iv), (d).
In revising its regulations, the
Department explained in 2015 that the
revisions would implement the
alternative provider provisions in
Executive Order 13559. Executive Order
13831, however, has removed the
alternative provider requirements
articulated in Executive Order 13559.
The Department also explained that the
alternative provider provisions would
protect religious liberty rights of social
service beneficiaries. But the methods of
providing such protections were not
required by the Constitution or any
applicable law. Indeed, the selected
methods are in tension with more recent
Supreme Court precedent regarding
nondiscrimination against religious
organizations, with the Attorney
General’s Memorandum on Religious
Liberty, and with the Religious Freedom
Restoration Act of 1993 (‘‘RFRA’’), 42
U.S.C. 2000bb–2000bb–4.
As the Supreme Court recently
clarified in Trinity Lutheran Church of
Columbia, Inc. v. Comer, 137 S. Ct.
2012, 2019 (2017) (quoting Church of
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the Lukumi Babalu Aye, Inc. v. City of
Hialeah, 508 U.S. 520, 533, 542 (1993)
(alteration in original)): ‘‘The Free
Exercise Clause ‘protect[s] religious
observers against unequal treatment’
and subjects to the strictest scrutiny
laws that target the religious for ‘special
disabilities’ based on their ‘religious
status.’’’ The Court in Trinity Lutheran
added: ‘‘[T]his Court has repeatedly
confirmed that denying a generally
available benefit solely on account of
religious identity imposes a penalty on
the free exercise of religion that can be
justified only by a state interest ‘of the
highest order.’ ’’ Id. (quoting McDaniel
v. Paty, 435 U.S. 618, 628 (1978)
(plurality opinion)); see also Mitchell v.
Helms, 530 U.S. 793, 827 (2000)
(plurality opinion) (‘‘[T]he religious
nature of a recipient should not matter
to the constitutional analysis, so long as
the recipient adequately furthers the
government’s secular purpose.’’);
principle 6 of the Attorney General’s
Memorandum on Religious Liberty, 82
FR at 49669 (‘‘Government may not
target religious individuals or entities
for special disabilities based on their
religion.’’).
Applying the alternative provider
requirement categorically to all faithbased and not to other providers of
federally funded social services is thus
in tension with the nondiscrimination
principle articulated in Trinity Lutheran
and the Attorney General’s
Memorandum on Religious Liberty.
In addition, the alternative provider
requirement could in certain
circumstances raise concerns under
RFRA. Under RFRA, where the
Government substantially burdens an
entity’s exercise of religion, the
Government must prove that the burden
is in furtherance of a compelling
government interest and is the least
restrictive means of furthering that
interest. 42 U.S.C. 2000bb–1(b). When a
faith-based grant recipient carries out its
social service programs, it may engage
in an exercise of religion protected by
RFRA and certain conditions on
receiving those grants may substantially
burden the religious exercise of the
recipient. See Application of the
Religious Freedom Restoration Act to
the Award of a Grant Pursuant to a
Juvenile Justice and Delinquency
Prevention Act, 31 Op. O.L.C. 162, 169–
71, 174–83 (2007) (‘‘World Vision
Opinion’’). Requiring faith-based
organizations to comply with the
alternative provider requirement could
impose such a burden, such as in a case
in which a faith-based organization has
a religious objection to referring the
beneficiary to an alternative provider
that provides services in a manner that
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violates the organization’s religious
tenets. See Burwell v. Hobby Lobby
Stores, Inc., 573 U.S. 682, 720–26
(2014). And it is far from clear that this
requirement would meet the strict
scrutiny that RFRA requires of laws that
substantially burden religious practice.
The Department is not aware of any
instance in which a beneficiary has
actually sought an alternative provider,
undermining the suggestion that the
interests this requirement serves are in
fact important, much less compelling
enough to outweigh a substantial
burden on religious exercise.
Executive Order 13831 chose to
eliminate the alternative provider
requirement for good reason. This
decision avoids tension with the
nondiscrimination principle articulated
in Trinity Lutheran and the Attorney
General’s Memorandum on Religious
Liberty, avoids problems with RFRA
that may arise, and fits within the
Administration’s broader deregulatory
agenda.
Other Notice Requirements
As noted above, Executive Order
13559 amended Executive Order 13279
by adding a right to an alternative
provider and notice of this right.
While Executive Order 13559’s
requirement of notice to beneficiaries
was limited to notice of alternative
providers, Part 38 as most recently
amended goes further than Executive
Order 13559 by requiring that faithbased social service providers funded
with direct Federal funds provide a
much broader notice to beneficiaries
and potential beneficiaries. This
requirement applies only to faith-based
providers and not to other providers. In
addition to the notice of the right to an
alternative provider, the rule requires
notice of nondiscrimination based on
religion; that participation in religious
activities must be voluntary and
separate in time or space from activities
funded with direct Federal funds; and
that beneficiaries or potential
beneficiaries may report violations.
Separate and apart from these notice
requirements, Executive Order 13279, as
amended, clearly set forth the
underlying requirements of
nondiscrimination, voluntariness, and
the holding of religious activities
separate in time or place from any
federally funded activity. Faith-based
providers of social services, like other
providers of social services, are required
to follow the law and the requirements
of grants and contracts they receive. See,
e.g., 28 CFR 38.7. There is no basis on
which to presume that they are less
likely than other social service
providers to follow the law. See
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Mitchell, 530 U.S. at 856–57 (O’Connor,
J., concurring in judgment) (noting that
in Tilton v. Richardson, 403 U.S. 672
(1971), the Court’s upholding of grants
to universities for construction of
buildings with the limitation that they
only be used for secular educational
purposes ‘‘demonstrate[d] our
willingness to presume that the
university would abide by the secular
content restriction’’). There is thus no
need for prophylactic protections that
create administrative burdens on faithbased providers and that are not
imposed on other providers.
Definition of Indirect Federal Financial
Assistance
Executive Order 13559 directed its
Interagency Working Group on FaithBased and Other Neighborhood
Partnerships to propose model
regulations and guidance documents
regarding, among other things, ‘‘the
distinction between ‘direct’ and
‘indirect’ Federal financial assistance[.]’’
75 FR at 71321. Following issuance of
the Working Group’s report, the 2016
joint final rule amended existing
regulations to make that distinction, and
to clarify that ‘‘organizations that
participate in programs funded by
indirect financial assistance need not
modify their program activities to
accommodate beneficiaries who choose
to expend the indirect aid on those
organizations’ programs,’’ need not
provide notices or referrals to
beneficiaries, and need not separate
their religious activities from supported
programs. 81 FR at 19358. In so doing,
the final rule attempted to capture the
definition of ‘‘indirect’’ aid that the U.S.
Supreme Court employed in Zelman v.
Simmons-Harris, 536 U.S. 639 (2002).
See 81 FR at 19361–62.
In Zelman, the Court concluded that
a government funding program is ‘‘one
of true private choice’’—that is, an
indirect-aid program—where there is
‘‘no evidence that the State deliberately
skewed incentives toward religious’’
providers. 536 U.S. at 650. The Court
upheld the challenged school-choice
program because it conferred assistance
‘‘directly to a broad class of individuals
defined without reference to religion’’
(i.e., parents of schoolchildren); it
permitted participation by both
religious and nonreligious educational
providers; it allocated aid ‘‘on the basis
of neutral, secular criteria that neither
favor nor disfavor religion’’; and it made
aid available ‘‘to both religious and
secular beneficiaries on a
nondiscriminatory basis.’’ Id. at 653–54
(quotation marks omitted). While the
Court noted the availability of secular
providers, it specifically declined to
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make its definition of indirect aid hinge
on the ‘‘preponderance of religiously
affiliated private’’ providers in the city,
as that preponderance arose apart from
the program; doing otherwise, the Court
concluded, ‘‘would lead to the absurd
result that a neutral school-choice
program might be permissible in some
parts of Ohio, . . . but not in’’ others.
Id. at 656–58. In short, the Court
concluded that ‘‘[t]he constitutionality
of a neutral . . . aid program simply
does not turn on whether and why, in
a particular area, at a particular time,
most [providers] are run by religious
organizations, or most recipients choose
to use the aid at a religious [provider].’’
Id. at 658.
The final rule issued after the
Working Group’s report included among
its criteria for indirect Federal financial
assistance a requirement that
beneficiaries have ‘‘at least one adequate
secular option’’ for use of the Federal
financial assistance. See 81 FR at
19407–19426. In other words, the rule
amended regulations to make the
definition of ‘‘indirect’’ aid hinge on the
availability of secular providers. A
regulation defining ‘‘indirect Federal
financial assistance’’ to require the
availability of secular providers is in
tension with the Supreme Court’s
choice not to make the definition of
indirect aid hinge on the geographically
varying availability of secular providers.
Thus, it is appropriate to amend existing
regulations to bring the definition of
‘‘indirect’’ aid more closely into line
with the Supreme Court’s definition in
Zelman.
Overview of the Proposed Rule
The Department proposes to amend
part 38 to implement Executive Order
13831 and conform more closely to the
Supreme Court’s current First
Amendment jurisprudence; relevant
Federal statutes such as RFRA, 42
U.S.C. 2000bb et seq.; Executive Order
13279, as amended by Executive Orders
13559 and 13831; and the Attorney
General’s Memorandum on Religious
Liberty.
Consistent with these authorities, this
proposed rule would amend part 38 to
conform to Executive Order 13279, as
amended, by deleting the requirement
that faith-based social service providers
refer beneficiaries objecting to receiving
services from them to an alternative
provider and the requirement that faithbased organizations provide notices that
are not required of secular
organizations.
This proposed rule would also make
clear that a faith-based organization that
participates in Department-funded
programs or services shall retain its
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autonomy; right of expression; religious
character; and independence from
Federal, State, and local governments. It
would further clarify that none of the
guidance documents that the
Department or any State or local
government uses in administering the
Department’s financial assistance shall
require faith-based organizations to
provide assurances or notices where
similar requirements are not imposed on
secular organizations, and that any
restrictions on the use of grant funds
shall apply equally to faith-based and
secular organizations.
This proposed rule would
additionally require that the
Department’s notices or announcements
of award opportunities and notices of
awards or contracts include language
clarifying the rights and obligations of
faith-based organizations that apply for
and receive Federal funding. The
language will clarify that, among other
things, faith-based organizations may
apply for awards on the same basis as
any other organization; that the
Department will not, in the selection of
recipients, discriminate against an
organization on the basis of the
organization’s religious exercise or
affiliation; and that a faith-based
organization that participates in a
federally funded program retains its
independence from the government and
may continue to carry out its mission
consistent with religious freedom
protections in Federal law, including
the Free Speech and Free Exercise
Clauses of the First Amendment to the
Constitution.
Finally, the proposed rule would
directly reference the definition of
‘‘religious exercise’’ in RFRA, and
would amend the definition of ‘‘indirect
Federal Financial assistance’’ to align
more closely with the Supreme Court’s
definition in Zelman.
Explanations for the Proposed
Amendments to Part 38
Part 38. Partnerships With Faith-Based
and Other Neighborhood Organizations
Section 38.1
Purpose
Section 38.1 is proposed to be
changed in order to include a reference
to Executive Order 13831.
Section 38.2
Applicability and Scope
Section 38.2(a) is proposed to be
changed in order to clarify the text by
eliminating extraneous language—
specifically, the language ‘‘or religious’’
when used in ‘‘faith-based or religious
organization’’ to align with the
terminology used in Executive Order
13831.
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Section 38.3
Definitions
Section 38.3(b) is proposed to be
changed in order to clarify the text by
eliminating extraneous language and to
align the text more closely with the First
Amendment by removing the
requirement of an ‘‘adequate secular
option’’ for each beneficiary as
discussed above and otherwise
clarifying the test for indirect Federal
financial assistance. See, e.g., Zelman,
536 U.S. 639; Trinity Lutheran, 137 S.
Ct. 2012.
Section 38.3(g) is proposed to be
added in order to provide a definition
of ‘‘religious exercise’’ that aligns with
the definitions used in RFRA, 42 U.S.C.
2000bb et seq., and with the Religious
Land Use and Individualized Persons
Act of 2000, 42 U.S.C. 2000cc–5(7)(A).
See, e.g., principles 10–15 of the
Attorney General’s Memorandum on
Religious Liberty, 82 FR 49668 (October
26, 2017).
Section 38.4
Policy
Section 38.4(a) is proposed to be
changed in order to clarify the text by
eliminating extraneous language and to
align it more closely with RFRA by
recognizing both the possibility that a
religious accommodation for a service
provider may be appropriate or required
and by confirming that government may
not discriminate for or against an
organization, in the selection of service
providers, based on an organization’s
religious exercise. See, e.g., principles 6,
10–15, and 20 of the Attorney General’s
Memorandum on Religious Liberty, 82
FR 49668 (October 26, 2017); World
Vision Opinion.
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Section 38.5
Responsibilities
Section 38.5(b) is proposed to be
changed in order to clarify the text and
to align it more closely with the First
Amendment and with RFRA by
providing more detail about the
autonomy that a faith-based
organization retains while participating
in government programming. See, e.g.,
Exec. Order No. 13279, 67 FR 77141
(December 16, 2002), as amended by
Exec. Order No. 13831, 83 FR 20715
(May 8, 2018); principles 9–15, 19, and
20 of the Attorney General’s
Memorandum on Religious Liberty, 82
FR 49668 (Oct. 26, 2017).
Section 38.5(c) is proposed to be
changed in order to align the text more
closely with the First Amendment and
with RFRA by making clear that an
organization receiving indirect financial
assistance is not required to make the
attendance requirements of its program
optional for a beneficiary who has
chosen to expend indirect aid on that
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program. See, e.g., Zelman, 536 U.S.
639; principles 4, 10–15, and 20 of the
Attorney General’s Memorandum on
Religious Liberty, 82 FR 49668 (Oct. 26,
2017).
Section 38.5(d) is proposed to be
changed in order to clarify the text and
align it more closely with the First
Amendment and with RFRA by making
clear that assurances should not be
required of faith-based organizations
when they are not required of non-faithbased organizations, by recognizing the
possibility of an accommodation for a
faith-based organization participating in
a Department program, and by
prohibiting disqualification of an
eligible faith-based organization from
such participation because of its
religious exercise. See, e.g., Trinity
Lutheran, 137 S. Ct. 2012; principles 6,
7, and 10–15 of the Attorney General’s
Memorandum on Religious Liberty, 82
FR 49668 (Oct. 26, 2017).
Section 38.5(f) is proposed to be
changed in order to include a reference
to Executive Order 13831.
Section 38.5(g) is proposed to be
changed in order to clarify the text and
align it more closely with RFRA by
adding language that would not require
application for tax-exempt status under
section 501(c)(3) of the Internal Revenue
Code. If an entity has a sincerely held
religious belief that it cannot apply for
status as a 501(c)(3) tax-exempt entity,
it may provide evidence sufficient to
establish that the entity would
otherwise qualify as a nonprofit
organization under the Department’s
criteria in 28 CFR 38.5(g)(1)–(4). See,
e.g., principles 10–15 of the Attorney
General’s Memorandum on Religious
Liberty, 82 FR 49668 (October 26, 2017).
Section 38.5(i) is proposed to be
added in order to align the text more
closely with the First Amendment by
making clear that these provisions
relating to nondiscrimination toward
faith-based organizations should not be
construed to advantage or disadvantage
historically recognized religions or sects
over other religions or sects. See, e.g.,
Larson v. Valente, 456 U.S. 228 (1982);
principle 8 of the Attorney General’s
Memorandum on Religious Liberty, 82
FR 49668 (October 26, 2017).
Section 38.6 Procedures
Section 38.6 is proposed to be
changed to align the text more closely
with the First Amendment and with
RFRA by eliminating the notice and
referral requirements discussed above
and replacing them with alternative
notices discussed below. See, e.g.,
Zelman, 536 U.S. 639, Trinity Lutheran,
137 S. Ct. 2012; principles 2, 3, 6–7, 9–
17, 19, and 20 of the Attorney General’s
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2925
Memorandum on Religious Liberty, 82
FR 49668 (October 26, 2017); Exec.
Order No. 13279, 67 FR 77141
(December 16, 2002), as amended by
Exec. Order No. 13559, 75 FR 71319
(Nov. 22, 2010), and Exec. Order No.
13831, 83 FR 20715 (May 8, 2018).
Appendix A and Appendix B
Appendix A and Appendix B are
proposed to be changed to align the text
more closely with the First Amendment
and with RFRA by deleting the notice
and referral requirements that solely
burdened faith-based organizations and
instead requiring notices of the terms on
which faith-based organizations may
generally participate in Department
funded programs. See, e.g., Zelman, 536
U.S. 639, Trinity Lutheran, 137 S. Ct.
2012; principles 2, 3, 6–7, 9–17, 19, and
20 of the Attorney General’s
Memorandum on Religious Liberty, 82
FR 49668 (Oct. 26, 2017); Exec. Order
No. 13279, 67 FR 77141 (Dec. 16, 2002),
as amended by Exec. Order No. 13559,
75 FR 71319 (Nov. 22, 2010), and Exec.
Order No. 13831, 83 FR 20715 (May 8,
2018).
III. Regulatory Certifications
Executive Order 12866 and 13563—
Regulatory Planning and Review
This NPRM has been drafted in
accordance with Executive Order 13563
of January 18, 2011, 76 FR 3821,
Improving Regulation and Regulatory
Review, and Executive Order 12866 of
September 30, 1993, 58 FR 51735,
Regulatory Planning and Review.
Executive Order 13563 directs agencies,
to the extent permitted by law, to
propose or adopt a regulation only upon
a reasoned determination that its
benefits justify its costs; tailor the
regulation to impose the least burden on
society, consistent with obtaining the
regulatory objectives; and, in choosing
among alternative regulatory
approaches, select those approaches that
maximize net benefits. Executive Order
13563 recognizes that some benefits and
costs are difficult to quantify and
provides that, where appropriate and
permitted by law, agencies may
consider and discuss qualitatively
values that are difficult or impossible to
quantify, including equity, human
dignity, fairness, and distributive
impacts.
Under Executive Order 12866, the
Office of Information and Regulatory
Affairs (‘‘OIRA’’) must determine
whether this regulatory action is
‘‘significant’’ and, therefore, subject to
the requirements of the Executive Order
and subject to review by the Office of
Management and Budget (‘‘OMB’’).
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Section 3(f) of Executive Order 12866
defines a ‘‘significant regulatory action’’
as an action likely to result in a
regulation that may:
(1) Have an annual effect on the
economy of $100 million or more or
adversely affect in a material way the
economy, a sector of the economy,
productivity, competition, jobs, the
environment, public health or safety, or
State, local, or tribal governments or
communities (also referred to as an
‘‘economically significant’’ regulation);
(2) Create a serious inconsistency or
otherwise interfere with an action taken
or planned by another agency;
(3) Materially alter the budgetary
impacts of entitlements, grants, user
fees, or loan programs or the rights and
obligations of recipients thereof; or
(4) Raise novel legal or policy issues
arising out of legal mandates, the
President’s priorities, or the principles
stated in Executive Order 12866.
OIRA has determined that this
proposed rule is a significant, but not
economically significant, regulatory
action subject to review by OMB under
section 3(f) of Executive Order 12866.
Accordingly, OMB has reviewed this
proposed rule.
The Department has also reviewed
these regulations under Executive Order
13563, which supplements and
reaffirms the principles, structures, and
definitions governing regulatory review
established in Executive Order 12866.
To the extent permitted by law, section
1(b) of Executive Order 13563 requires
that an agency:
(1) Propose or adopt regulations only
upon a reasoned determination that
their benefits justify their costs
(recognizing that some benefits and
costs can be difficult to quantify);
(2) Tailor its regulations to impose the
least burden on society, consistent with
obtaining regulatory objectives, and
taking into account—among other things
and to the extent practicable—the costs
of cumulative regulations;
(3) In choosing among alternative
regulatory approaches, select those
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety,
and other advantages; distributive
impacts; and equity);
(4) To the extent feasible, specify
performance objectives, rather than the
behavior or manner of compliance that
regulated entities must adopt; and
(5) Identify and assess available
alternatives to direct regulation,
including providing economic
incentives—such as user fees or
marketable permits—to encourage the
desired behavior, or providing
information that enables the public to
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make choices. 76 FR 3821, 3821 (Jan. 21,
2011). Section 1(c) of Executive Order
13563 also requires an agency ‘‘to use
the best available techniques to quantify
anticipated present and future benefits
and costs as accurately as possible.’’ Id.
The Office of Information and
Regulatory Affairs of OMB has
emphasized that these techniques may
include ‘‘identifying changing future
compliance costs that might result from
technological innovation or anticipated
behavioral changes.’’ Memorandum for
the Heads of Executive Departments and
Agencies, and of Independent
Regulatory Agencies, from Cass R.
Sunstein, Administrator, Office of
Information and Regulatory Affairs, Re:
Executive Order 13563, ‘‘Improving
Regulation and Regulatory Review’’, at 1
(Feb. 2, 2011), https://
www.whitehouse.gov/sites/
whitehouse.gov/files/omb/memoranda/
2011/m11-10.pdf.
The Department is issuing these
proposed regulations upon a reasoned
determination that their benefits justify
their costs. In choosing among
alternative regulatory approaches, the
Department selected the approach that it
believes maximizes net benefits. Based
on the analysis that follows, the
Department believes that the proposed
regulations are consistent with the
principles in Executive Order 13563. It
is the reasoned determination of the
Department that this proposed action
would, to a significant degree, eliminate
costs that have been incurred by faithbased organizations as they complied
with the requirements of section 2(b) of
Executive Order 13559, while not
adding any other requirements for those
organizations. The Department has
determined in addition that this
proposed action would result in benefits
to beneficiaries, described in more
detail below.
The Department also has determined
that this regulatory action does not
unduly interfere with State, local, or
tribal governments in the exercise of
their governmental functions.
In accordance with Executive Orders
12866 and 13563, the Department has
assessed the potential costs and
benefits, both quantitative and
qualitative, of this regulatory action.
The potential costs and cost savings
associated with this regulatory action
are those resulting from the removal of
the notification and referral
requirements of Executive Order 13279,
as amended by Executive Order 13559
and further amended by Executive
Order 13831, and those determined to
be necessary for administering the
Department’s programs and activities.
For example, the Department recognizes
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that the removal of the notice and
referral requirements could impose
some costs on beneficiaries who may
now need to investigate alternative
providers on their own if they object to
the religious character of a potential
social service provider. The Department
invites comment on any information
that it could use to quantify this
potential cost.
The Department also notes a
quantifiable cost savings of the removal
of the notice requirement, which the
Department previously estimated as
imposing a cost of no more than $200
per faith-based organization per year for
the notices. 81 FR 19391. That estimate
was based on an estimate that it would
take no more than two hours for faithbased organizations to familiarize
themselves with the notice and referral
requirements and print and duplicate an
adequate number of notice and referral
forms for potential beneficiaries, at an
upper limit of $50/hour for the labor
cost to prepare the forms and an upper
limit of $100 for the annual cost of
materials to print multiple copies of
forms. Id. The Department is not aware
of any changed circumstances that
would counsel a change in this
estimated cost. Thus, the Department
estimates that the proposed rule’s
elimination of the notice requirement
will result in a cost savings of up to
$200 per faith-based organization per
year.
The Department previously estimated
that the cost added by the recordkeeping
requirement associated with the referral
requirement was so small as to not be
measurable. 80 FR 47316, 47322 (Aug.
6, 2015). Moreover, the Department was
unable to quantify the cost of the
referral requirement. 81 FR 19391. In
particular, while it had previously
estimated a burden of two hours of labor
per referral, 80 FR 47322, in the 2016
final rule, it was unable to determine
the number of referrals that will occur
in any one year, 81 FR 19391. The
Department now has the benefit of
experience and is not aware of any
instance of the referral requirement
actually being invoked. Because it
appears that the referral requirement
was never invoked, and therefore faithbased organizations did not expend
additional labor or material costs to
comply with the referral and
recordkeeping requirements, the
Department does not expect the
elimination of the referral and
recordkeeping requirements to result in
a cost savings.
The Department invites comment on
any data by which it could better assess
the actual implementation costs of the
notice, referral, and recordkeeping
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requirements—including any estimates
of staff time spent on compliance with
the requirements, in addition to the
printing costs for the notices referenced
above—and thereby accurately quantify
the cost savings of removing these
requirements.
In terms of benefits, the Department
recognizes a non-quantified benefit to
religious liberty that comes from
removing requirements imposed solely
on faith-based organizations, in tension
with the principles of free exercise
articulated in Trinity Lutheran. The
Department also recognizes a nonquantified benefit to grant recipients
and beneficiaries alike that comes from
increased clarity in the regulatory
requirements that apply to faith-based
organizations operating social-service
programs funded by the Federal
Government. Beneficiaries will also
benefit from the increased capacity of
faith-based social-service providers to
provide services, both because these
providers will be able to shift resources
otherwise spent fulfilling the notice and
referral requirements to provision of
services, and because more faith-based
social service providers may participate
in the marketplace once relieved of the
concern of excessive governmental
involvement.
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Executive Order 13771—Reducing
Regulation and Controlling Regulatory
Costs
Executive Order 13771, Reducing
Regulation and Controlling Regulatory
Costs, was issued on January 30, 2017
(82 FR 9339 (Feb. 3, 2017)). Section 2(a)
of Executive Order 13771 requires an
agency, unless prohibited by law, to
identify at least two existing regulations
to be repealed when the agency publicly
proposes for notice and comment, or
otherwise promulgates, a new
regulation. In furtherance of this
requirement, section 2(c) of Executive
Order 13771 requires that the new
incremental costs associated with new
regulations shall, to the extent permitted
by law, be offset by the elimination of
existing costs associated with at least
two prior regulations. OMB’s interim
guidance, issued on April 5, 2017,
https://www.whitehouse.gov/the-pressoffice/2017/04/05/memorandumimplementing-executive-order-13771titled-reducing-regulation, explains that
for Fiscal Year 2017 the above
requirements only apply to each new
‘‘significant regulatory action that
imposes costs.’’ This proposed rule is
expected to be an E.O. 13771
deregulatory action.
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Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601–612), as amended by the
Small Business Regulatory Enforcement
Fairness Act of 1996, generally requires
an agency to prepare a regulatory
flexibility analysis of any rule subject to
the notice and comment rulemaking
requirements under the Administrative
Procedure Act (5 U.S.C. 553) or any
other statute, unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities.
The Department has determined that
this rule will not have a significant
economic impact on a substantial
number of small entities. Consequently,
the Department has not prepared a
regulatory flexibility analysis.
Executive Order 12988—Civil Justice
Reform
This proposed rule has been reviewed
in accordance with Executive Order
12988, Civil Justice Reform. The
provisions of this proposed rule will not
have preemptive effect with respect to
any State or local laws, regulations, or
policies that conflict with such
provision or that otherwise impede their
full implementation. The rule will not
have retroactive effect.
Executive Order 13175—Consultation
and Coordination With Indian Tribal
Governments
This rule has been reviewed in
accordance with the requirements of
Executive Order 13175, Consultation
and Coordination with Indian Tribal
Governments. Executive Order 13175
requires Federal agencies to consult and
coordinate with tribes on a governmentto-government basis on policies that
have tribal implications, including
regulations, legislative comments or
proposed legislation, and other policy
statements or actions that have
substantial direct effects on one or more
Indian tribes, on the relationship
between the Federal Government and
Indian tribes or on the distribution of
power and responsibilities between the
Federal Government and Indian tribes.
The Department has assessed the
impact of this rule on Indian tribes and
determined that this rule does not, to its
knowledge, have tribal implications that
require tribal consultation under
Executive Order 13175.
Executive Order 13132—Federalism
Executive Order 13132 directs that, to
the extent practicable and permitted by
law, an agency shall not promulgate any
regulation that has federalism
implications, that imposes substantial
direct compliance costs on State and
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2927
local governments, that is not required
by statute, or that preempts State law,
unless the agency meets the
consultation and funding requirements
of section 6 of the Executive Order.
Because each change proposed by this
rule does not have federalism
implications as defined in the Executive
Order, does not impose direct
compliance costs on State and local
governments, is required by statute, or
does not preempt State law within the
meaning of the Executive Order, the
Department has concluded that
compliance with the requirements of
section 6 is not necessary.
Plain Language Instructions
The Department makes every effort to
promote clarity and transparency in its
rulemaking. In any regulation, there is a
tension between drafting language that
is simple and straightforward and
drafting language that gives full effect to
issues of legal interpretation. The
Department is proposing a number of
changes to this regulation to enhance its
clarity and satisfy the plain language
requirements, including revising the
organizational scheme and adding
headings to make it more user-friendly.
If any commenter has suggestions for
how the regulation could be written
more clearly, please provide comments
using the contact information provided
in the introductory section of this
proposed rule entitled, FOR FURTHER
INFORMATION CONTACT.
Paperwork Reduction Act
This proposed rule does not contain
any new or revised ‘‘collection[s] of
information’’ as defined by the
Paperwork Reduction Act of 1995. 44
U.S.C. 3501 et seq.
Unfunded Mandates Reform Act
Section 4(2) of the Unfunded
Mandates Reform Act of 1995, 2 U.S.C.
1503(2), excludes from coverage under
that Act any proposed or final Federal
regulation that ‘‘establishes or enforces
any statutory rights that prohibit
discrimination on the basis of race,
color, religion, sex, national origin, age,
handicap, or disability.’’ Accordingly,
this rulemaking is not subject to the
provisions of the Unfunded Mandates
Reform Act.
List of Subjects in 28 CFR Part 38
Administrative practice and
procedure, Grant programs, Reporting
and recordkeeping requirements,
Nonprofit organizations.
Accordingly, for the reasons set forth
in the preamble, part 38 of chapter I of
Title 28 of the Code of Federal
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Regulations is proposed to be amended
as follows:
PART 38—PARTNERSHIPS WITH
FAITH-BASED AND OTHER
NEIGHBORHOOD ORGANIZATIONS
1. The authority citation for part 38 is
revised to read as follows:
■
Authority: 28 U.S.C. 509; 5 U.S.C. 301;
E.O. 13279, 67 FR 77141; 18 U.S.C. 4001,
4042, 5040; 21 U.S.C. 871; 25 U.S.C. 3681;
Pub. L. 107–273, 116 Stat. 1758; Public Law
109–162, 119 Stat. 2960; 34 U.S.C. 10152,
10154, 10172, 10221, 10382, 10388, 10444,
10446, 10448, 10473, 10614, 10631, 11111,
11182, 20110, 20125; E.O. 13559, 75 FR
71319; E.O. 13831, 83 FR 20715.
2. Remove ‘‘or religious’’ every place
it appears except in § 38.4(b).
■
§ 38.1
[Amended]
3. Amend § 38.1 by removing ‘‘13279
and Executive Order 13559’’ and adding
in its place ‘‘13279, Executive Order
13559, and Executive Order 13831’’.
■ 4. Amend § 38.3 by:
■ a. In paragraph (b) introductory text,
remove ‘‘provided to an organization’’.
■ b. In paragraph (b)(1), add ‘‘and’’ after
‘‘religion’’.
■ c. Revise paragraph (b)(2).
■ d. Remove paragraph (b)(3).
■ e. Add paragraph (g).
The revision and addition reads as
follows:
■
§ 38.3
Definitions.
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*
*
*
*
*
(b) * * *
(2) The service provider receives the
assistance as a result of an independent
choice of the beneficiary, not a choice
of the Government.
*
*
*
*
*
(g) Religious exercise has the meaning
given to the term in 42 U.S.C. 2000cc–
5(7)(A).
■ 5. Amend § 38.4 by:
■ a. In paragraph (a), add ‘‘and
considering any religious
accommodations appropriate under the
Constitution or other provisions of
Federal law, including but not limited
to 42 U.S.C. 2000bb et seq., 42 U.S.C.
238n, 42 U.S.C. 18113, 42 U.S.C. 2000e–
1(a) and 2000e–2(e), 42 U.S.C. 12113(d),
and the Weldon Amendment’’ after
‘‘other organization’’.
■ b. In paragraph (a), remove
‘‘character’’ and add in its place
‘‘exercise’’.
■ 6. Amend § 38.5 as follows:
■ a. Amend paragraph (b).
■ i. Add ‘‘autonomy; right of expression;
religious character; and’’ before
‘‘independence’’.
■ ii. Remove ‘‘support’’ and add in its
place ‘‘fund’’.
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iii. Add ‘‘concealing, altering, or’’
before ‘‘removing’’.
■ iv. Remove ‘‘a religious basis’’ and
add in its place ‘‘the basis of their
acceptance of or adherence to the
religious tenets of the organization’’.
■ b. In paragraph (c), add ‘‘and may
require attendance at all activities that
are fundamental to the program’’ after
‘‘organization’s program’’.
■ c. Revise paragraph (d).
■ d. In paragraph (f), remove ‘‘13559,’’
and add in its place ‘‘13559 and further
amended by Executive Order 13831,’’.
■ e. Amend paragraph (g) by:
■ i. In the introductory text, remove ‘‘a
religious’’ and add in its place ‘‘a faithbased’’.
■ ii. In paragraph (g)(3), remove ‘‘or’’
after ‘‘applicant;’’.
■ iii. In paragraph (g)(4), remove
‘‘affiliate.’’ and add in its place
‘‘affiliate; or’’.
■ iv. Add paragraph (g)(5).
■ f. Add paragraph (i).
The revisions and additions read as
follows:
■
§ 38.5
Responsibilities.
*
*
*
*
*
(d) No grant document, agreement,
covenant, memorandum of
understanding, policy, or regulation that
the Department or a State or local
government uses in administering
financial assistance from the
Department shall require faith-based or
religious organizations to provide
assurances or notices where they are not
required of non-faith-based
organizations. Any restrictions on the
use of grant funds shall apply equally to
faith-based and non-faith-based
organizations. All organizations,
including religious ones, that participate
in Department programs must carry out
all eligible activities in accordance with
all program requirements, subject to any
religious accommodations appropriate
under the Constitution or other
provisions of Federal law, including but
not limited to 42 U.S.C. 2000bb et seq.,
42 U.S.C. 238n, 42 U.S.C. 18113, 42
U.S.C. 2000e–1(a) and 2000e–2(e), 42
U.S.C. 12113(d), and the Weldon
Amendment, and other applicable
requirements governing the conduct of
Department-funded activities, including
those prohibiting the use of direct
financial assistance from the
Department to engage in explicitly
religious activities. No grant document,
agreement, covenant, memorandum of
understanding, policy, or regulation that
is used by the Department or a State or
local government in administering
financial assistance from the
Department shall disqualify faith-based
or religious organizations from
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participating in the Department’s
programs because such organizations
are motivated or influenced by religious
faith to provide social services, or
because of their religious exercise or
affiliation.
*
*
*
*
*
(g) * * *
(5) For an entity that holds a sincerely
held religious belief that it cannot apply
for a determination as an entity that is
tax-exempt under section 501(c)(3) of
the Internal Revenue Code, evidence
sufficient to establish that the entity
would otherwise qualify as a nonprofit
organization under paragraphs (g)(1)
through (g)(4) of this section.
*
*
*
*
*
(i) Neither the Department awarding
agency nor any State or local
government or other pass-through entity
receiving funds under any Department
program or service shall construe these
provisions in such a way as to
advantage or disadvantage faith-based
organizations affiliated with historic or
well-established religions or sects in
comparison with other religions or
sects.
■ 7. Amend § 38.6 as follows:
■ a. Revise paragraph (b) to read as
follows:
■ b. Remove paragraphs (c) and (d).
§ 38.6
Procedures.
*
*
*
*
*
(b) Notices or announcements of
award opportunities and notices of
award or contracts shall include
language substantially similar to that in
Appendices A and B, respectively, to
this part.
■ 8. Revise Appendix A and Appendix
B to Part 38 to read as follows:
Appendix A to Part 38—Notice or
Announcement of Award Opportunities
Faith-based organizations may apply for
this award on the same basis as any other
organization, as set forth at, and subject to
the protections and requirements of, part 38
and 42 U.S.C. 2000bb et seq. The Department
of Justice will not, in the selection of
recipients, discriminate against an
organization on the basis of the
organization’s religious exercise or affiliation.
A faith-based organization that participates
in this program will retain its independence
from the government and may continue to
carry out its mission consistent with religious
freedom protections in Federal law,
including the Free Speech and Free Exercise
Clauses of the First Amendment, 42 U.S.C.
2000bb et seq., 42 U.S.C. 238n, 42 U.S.C.
18113, 42 U.S.C. 2000e–1(a) and 2000e–2(e),
42 U.S.C. 12113(d), and the Weldon
Amendment, among others. Religious
accommodations may also be sought under
many of these religious freedom protection
laws.
A faith-based organization may not use
direct financial assistance from the
E:\FR\FM\17JAP1.SGM
17JAP1
Federal Register / Vol. 85, No. 12 / Friday, January 17, 2020 / Proposed Rules
Department of Justice to support or engage in
any explicitly religious activities except
where consistent with the Establishment
Clause and any other applicable
requirements. Such an organization also may
not, in providing services funded by the
Department of Justice, discriminate against a
program beneficiary or prospective program
beneficiary on the basis of religion, a
religious belief, a refusal to hold a religious
belief, or a refusal to attend or participate in
a religious practice.
Appendix B to Part 38—Notice of
Award or Contract
A faith-based organization that participates
in this program retains its independence
from the government and may continue to
carry out its mission consistent with religious
freedom protections in Federal law,
including the Free Speech and Free Exercise
Clauses of the Constitution, 42 U.S.C. 2000bb
et seq., 42 U.S.C. 238n, 42 U.S.C. 18113, 42
U.S.C. 2000e–1(a) and 2000e–2(e), 42 U.S.C.
12113(d), and the Weldon Amendment,
among others. Religious accommodations
may also be sought under many of these
religious freedom protection laws.
A faith-based organization may not use
direct financial assistance from the
Department of Justice to support or engage in
any explicitly religious activities except
when consistent with the Establishment
Clause of the First Amendment and any other
applicable requirements. Such an
organization also may not, in providing
services funded by the Department of Justice,
discriminate against a program beneficiary or
prospective program beneficiary on the basis
of religion, a religious belief, a refusal to hold
a religious belief, or a refusal to attend or
participate in a religious practice.
Dated: December 18, 2019.
William P. Barr,
Attorney General.
[FR Doc. 2019–27777 Filed 1–16–20; 8:45 am]
BILLING CODE 4410–18–P
DEPARTMENT OF LABOR
Office of the Secretary
29 CFR Part 2
RIN 1291–AA41
Office of the Secretary,
Department of Labor.
ACTION: Notice of proposed rulemaking.
lotter on DSKBCFDHB2PROD with PROPOSALS
AGENCY:
The rule proposes to amend
Department of Labor (Department, DOL)
regulations to implement Executive
Order 13831 (Establishment of a White
House Faith and Opportunity Initiative).
Among other changes, this rule
SUMMARY:
16:48 Jan 16, 2020
To ensure proper handling
of comments, please reference Docket
No. DOL–2019–0006 on all electronic
and written correspondence. The
Department encourages the electronic
submission of all comments through
https://www.regulations.gov using the
electronic comment form provided on
that site. For easy reference, an
electronic copy of this document is also
available at that website. It is not
necessary to submit paper comments
that duplicate the electronic
submission, as all comments submitted
to https://www.regulations.gov will be
posted for public review and are part of
the official docket record. However,
should you wish to submit written
comments through regular or express
mail, they should be sent to Centers for
Faith & Opportunity Initiatives, U.S.
Department of Labor, Room S–2228, 200
Constitution Avenue NW, Washington,
DC 20210.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
I. Posting of Public Comments
Equal Participation of Faith-Based
Organizations in the Department of
Labor’s Programs and Activities:
Implementation of Executive Order
13831
VerDate Sep<11>2014
proposes changes to provide clarity
about the rights and obligations of faithbased organizations participating in
Department programs, clarify the
Department’s guidance documents for
financial assistance in regard to faithbased organizations, and eliminate
certain requirements for faith-based
organizations that no longer reflect
executive branch guidance. This
proposed rulemaking is intended to
ensure that the Department’s social
service programs are implemented in a
manner consistent with the
requirements of federal law, including
the First Amendment to the
Constitution and the Religious Freedom
Restoration Act.
DATES: Comments must be received by
DOL on or before February 18, 2020.
FOR FURTHER INFORMATION CONTACT: Mr.
Mark Zelden, Director, Centers for Faith
& Opportunity Initiatives; telephone:
202–693–6017, email: Zelden.Mark.A@
dol.gov.
Jkt 250001
All comments, including any personal
information you provide, are placed in
the public docket without change and
may be made available online at https://
www.regulations.gov. Therefore, the
Department cautions commenters about
submitting statements they do not want
made available to the public, or
submitting comments that contain
personal information (either about
themselves or others), such as Social
Security Numbers, birthdates, and
medical data. If you wish to inspect the
agency’s public docket file in person by
appointment, please see the FOR
PO 00000
Frm 00041
Fmt 4702
Sfmt 4702
2929
FURTHER INFORMATION CONTACT
paragraph.
II. Background
Shortly after taking office in 2001,
President George W. Bush signed
Executive Order 13199, Establishment
of White House Office of Faith-based
and Community Initiatives, 66 FR 8499
(January 29, 2001). That Executive
Order sought to ensure that ‘‘private and
charitable groups, including religious
ones, . . . have the fullest opportunity
permitted by law to compete on a level
playing field’’ in the delivery of social
services. To do so, it created an office
within the White House, the White
House Office of Faith-Based and
Community Initiatives with primary
responsibility to ‘‘establish policies,
priorities, and objectives for the Federal
Government’s comprehensive effort to
enlist, equip, enable, empower, and
expand the work of faith-based and
other community organizations to the
extent permitted by law.’’
On December 12, 2002, President
Bush signed Executive Order 13279,
Equal Protection of the Laws for FaithBased and Community Organizations,
67 FR 77141 (December 12, 2002).
Executive Order 13279 set forth the
principles and policymaking criteria to
guide federal agencies in formulating
and implementing policies with
implications for faith-based
organizations and other community
organizations, to ensure equal
protection of the laws for faith-based
and community organizations, and to
expand opportunities for, and
strengthen the capacity of, faith-based
and other community organizations to
meet social needs in America’s
communities. In addition, Executive
Order 13279 directed specified agency
heads to review and evaluate existing
policies that had implications for faithbased and community organizations
relating to their eligibility for federal
financial assistance for social service
programs and, where appropriate, to
implement new policies that were
consistent with and necessary to further
the fundamental principles and
policymaking criteria articulated in the
Order.
In 2004, the Department of Labor
issued regulations through notice-andcomment rulemaking implementing
Executive Order 13279 at 29 CFR part 2
subpart D (‘‘Part 2 Subpart D’’). 69 FR
41882 (July 12, 2004). The regulations
applied to all providers that
implemented social service programs
supported by the Department. The
Department subsequently issued
guidance detailing the process for
recipients of financial assistance to
E:\FR\FM\17JAP1.SGM
17JAP1
Agencies
[Federal Register Volume 85, Number 12 (Friday, January 17, 2020)]
[Proposed Rules]
[Pages 2921-2929]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27777]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF JUSTICE
28 CFR Part 38
[Docket No. OAG 166; AG Order No. 4596-2019]
RIN 1105-AB58
Equal Participation of Faith-Based Organizations in Department of
Justice's Programs and Activities: Implementation of Executive Order
13831
AGENCY: Office of the Attorney General, Department of Justice.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The rule proposes to amend Department of Justice
(``Department'') regulations on equal treatment for faith-based and
other neighborhood organizations and to implement Executive Order 13831
(Establishment of a White House Faith and Opportunity Initiative).
Among other changes, this rule proposes changes to provide clarity
about the rights and obligations of faith-based organizations
participating in Department programs, clarify the Department's guidance
documents for financial assistance in regard to faith-based
organizations, and eliminate certain requirements for faith-based
organizations that no longer reflect executive branch guidance. This
proposed rulemaking is intended to ensure that the Department's social
service programs are implemented in a manner consistent with the
requirements of Federal law, including the First Amendment to the
Constitution and the Religious Freedom Restoration Act.
DATES: Comments must be received by the Department on or before
February 18, 2020.
ADDRESSES: To ensure proper handling of comments, please reference
Docket No. OAG 166 on all electronic and written correspondence. The
Department encourages the electronic submission of all comments through
https://www.regulations.gov using the electronic comment form provided
on that site. For easy reference, an electronic copy of this document
is also available at that website. It is not necessary to submit paper
comments that duplicate the electronic submission, as all comments
submitted to https://www.regulations.gov will be posted for public
review and are part of the official docket record. However, should you
wish to submit written comments through regular or express mail, they
should be sent to Robert Davis, Acting Director, Office of
Communications, Office of Justice Programs, 810 7th St. NW, Washington,
DC 20531.
FOR FURTHER INFORMATION CONTACT: Robert Davis, Acting Director, Office
of Communications, Office of Justice Programs, 810 7th St. NW,
Washington, DC 20531, 202-307-0703.
SUPPLEMENTARY INFORMATION:
I. Posting of Public Comments
Please note that all comments received are considered part of the
public record and made available for public inspection online at https://www.regulations.gov. Information made available for public inspection
includes personal identifying information (such as your name, address,
etc.) voluntarily submitted by the commenter.
If you wish to submit personal identifying information (such as
your name, address, etc.) as part of your comment, but do not wish it
to be posted online, you must include the phrase ``PERSONAL IDENTIFYING
INFORMATION'' in the first paragraph of your comment. You must also
locate all the personal identifying information that you do not want
posted online in the first paragraph of your comment and identify what
information you want the agency to redact. Personal identifying
information identified and located as set forth above will be placed in
the agency's public docket file, but not posted online.
If you wish to submit confidential business information as part of
your comment but do not wish it to be posted online, you must include
the phrase ``CONFIDENTIAL BUSINESS INFORMATION'' in the first paragraph
of your comment. You must also prominently identify confidential
business information to be redacted within the comment. If a comment
has so much confidential business information that it cannot be
effectively redacted, the agency may choose not to post that comment
(or to post that comment only partially) on https://www.regulations.gov.
Confidential business information identified and located as set forth
above will not be placed in the public docket file, nor will it be
posted online.
If you wish to inspect the agency's public docket file in person by
appointment, please see the FOR FURTHER INFORMATION CONTACT paragraph.
II. Background
Shortly after taking office in 2001, President George W. Bush
signed Executive Order 13199, Establishment of White House Office of
Faith-Based and Community Initiatives, 66 FR 8499
[[Page 2922]]
(Jan. 31, 2001). That Executive Order sought to ensure that ``private
and charitable community groups, including religious ones, . . . have
the fullest opportunity permitted by law to compete on a level playing
field'' in the delivery of social services. To do so, it created an
office within the White House, the White House Office of Faith-Based
and Community Initiatives, with primary responsibility to ``establish
policies, priorities, and objectives for the Federal Government's
comprehensive effort to enlist, equip, enable, empower, and expand the
work of faith-based and other community organizations to the extent
permitted by law.'' Id.
On December 12, 2002, President Bush signed Executive Order 13279,
Equal Protection of the Laws for Faith-Based and Community
Organizations, 67 FR 77141 (Dec. 16, 2002). Executive Order 13279 set
forth the principles and policymaking criteria to guide Federal
agencies in formulating and implementing policies with implications for
faith-based organizations and other community organizations, to ensure
equal protection of the laws for faith-based and community
organizations, and to expand opportunities for, and strengthen the
capacity of, faith-based and other community organizations to meet
social needs in America's communities. In addition, Executive Order
13279 directed specified agency heads to review and evaluate existing
policies that had implications for faith-based and community
organizations relating to their eligibility for Federal financial
assistance for social service programs and, where appropriate, to
implement new policies that were consistent with and necessary to
further the fundamental principles and policymaking criteria
articulated in the Order. Consistent with Executive Order 13279, the
Department of Justice promulgated regulations at 28 CFR part 38 (``Part
38''). See 69 FR 2832 (Jan. 21, 2004).
President Obama maintained President Bush's program, but modified
it in certain respects. Shortly after taking office, President Obama
signed Executive Order 13498, Amendments to Executive Order 13199 and
Establishment of the President's Advisory Council for Faith-Based and
Neighborhood Partnerships, 74 FR 6533 (Feb. 9, 2009). This Executive
Order changed the name of the White House Office of Faith-Based and
Community Initiatives to the White House Office of Faith-Based and
Neighborhood Partnerships, and it created an Advisory Council that
subsequently submitted recommendations regarding the work of the
Office.
On November 17, 2010, President Obama signed Executive Order 13559,
Fundamental Principles and Policymaking Criteria for Partnerships with
Faith-Based and Other Neighborhood Organizations, 75 FR 71319 (Nov. 22,
2010). Executive Order 13559 made various changes to Executive Order
13279, including making minor and substantive textual changes to the
fundamental principles; adding a provision requiring that any religious
social service provider refer potential beneficiaries to an alternative
provider if the beneficiaries object to the first provider's religious
character; adding a provision requiring that the faith-based provider
give notice of potential referral to potential beneficiaries; and
adding a provision that awards must be free of political interference
and not be based on religious affiliation or lack thereof. An
interagency working group was tasked with developing model regulatory
changes to implement Executive Order 13279 as amended by Executive
Order 13559, including provisions that clarified the prohibited uses of
direct financial assistance, allowed religious social service providers
to maintain their religious identities, and distinguished between
direct and indirect assistance. These efforts eventually resulted in
amendments to agency regulations, including the Department's Part 38.
The revised regulations defined ``indirect federal financial
assistance'' as government aid to a beneficiary, such as a voucher,
that flows to a religious provider only through the genuine and
independent choice of the beneficiary, 28 CFR 38.3(b), and made a
number of other changes implementing the amended Executive Order and
other changes for clarity and consistency. The rules required not only
that faith-based providers give the notice of the right to an
alternative provider specified in Executive Order 13559, but also
required faith-based providers, but not other providers, to give
written notice to beneficiaries and potential beneficiaries of programs
funded with direct Federal financial assistance of various rights,
including nondiscrimination based on religion, the requirement that
participation in any religious activities must be voluntary and that
they must be provided separately from the federally funded activity,
and that beneficiaries may report violations. See 81 FR 19355 (April 4,
2016).
President Trump has given new direction to the program established
by President Bush and continued by President Obama. On May 4, 2017,
President Trump issued Executive Order 13798, Presidential Executive
Order Promoting Free Speech and Religious Liberty, 82 FR 21675 (May 9,
2017). Executive Order 13798 states that ``Federal law protects the
freedom of Americans and their organizations to exercise religion and
participate fully in civic life without undue interference by the
Federal Government'' and further provides that the executive branch
will honor and enforce those protections. It also directed the Attorney
General to ``issue guidance interpreting religious liberty protections
in Federal law.'' 82 FR at 21675. Pursuant to this instruction, the
Attorney General, on October 6, 2017, issued the Memorandum for All
Executive Departments and Agencies, ``Federal Law Protections for
Religious Liberty,'' 82 FR 49668 (Oct. 26, 2017) (the ``Attorney
General's Memorandum on Religious Liberty'').
The Attorney General's Memorandum on Religious Liberty emphasized
that individuals and organizations do not give up religious liberty
protections by providing government-funded social services, and that
``government may not exclude religious organizations as such from
secular aid programs . . . when the aid is not being used for
explicitly religious activities such as worship or proselytization.''
On May 3, 2018, President Trump signed Executive Order 13831,
Executive Order on the Establishment of a White House Faith and
Opportunity Initiative, 83 FR 20715 (May 8, 2018), amending Executive
Order 13279 as amended by Executive Order 13559, and other related
Executive Orders. Among other things, Executive Order 13831 changed the
name of the ``White House Office of Faith-Based and Neighborhood
Partnerships,'' as established in Executive Order 13498, to the ``White
House Faith and Opportunity Initiative''; changed the way that the
Initiative is to operate; directed departments and agencies with
``Centers for Faith-Based and Neighborhood Partnerships'' to change
those names to ``Centers for Faith and Opportunity Initiatives''; and
ordered that departments and agencies without a Center for Faith and
Opportunity Initiatives designate a ``Liaison for Faith and Opportunity
Initiatives.'' 83 FR at 20715, 20716. Executive Order 13831 also
eliminated the alternative provider referral requirement and
requirement of notice thereof established in Executive Order 13559
described above. 83 FR at 20715.
[[Page 2923]]
Alternative Provider Referral and Alternative Provider Notice
Requirement
Executive Order 13559 imposed notice and referral burdens on faith-
based organizations not imposed on secular organizations. Section 1(b)
of Executive Order 13559 had amended section 2 of Executive Order
13279, Fundamental Principles, by, in pertinent part, adding a new
subsection (h) to section 2. As amended, section 2(h)(i) provided that
if a beneficiary or a prospective beneficiary of a social service
program supported by Federal financial assistance objects to the
religious character of an organization that provides services under the
program, that organization shall, within a reasonable time after the
date of the objection, refer the beneficiary to an alternative
provider. Section 2(h)(ii) directed that agencies establish policies
and procedures to ensure that referrals are timely and follow privacy
laws and regulations; that providers notify agencies of and track
referrals; and that each beneficiary ``receive[ ] written notice of the
protections set forth in this subsection prior to enrolling in or
receiving services from such program'' (emphasis added). The reference
to ``this subsection'' rather than to ``this Section'' indicated that
the notice requirement of section 2(h)(ii) was referring only to the
alternative provider provisions in subsection (h), not all of the
protections in section 2. In 2016, the Department of Justice revised
its regulations to conform to Executive Order 13559. 28 CFR
38.6(c)(iv), (d).
In revising its regulations, the Department explained in 2015 that
the revisions would implement the alternative provider provisions in
Executive Order 13559. Executive Order 13831, however, has removed the
alternative provider requirements articulated in Executive Order 13559.
The Department also explained that the alternative provider provisions
would protect religious liberty rights of social service beneficiaries.
But the methods of providing such protections were not required by the
Constitution or any applicable law. Indeed, the selected methods are in
tension with more recent Supreme Court precedent regarding
nondiscrimination against religious organizations, with the Attorney
General's Memorandum on Religious Liberty, and with the Religious
Freedom Restoration Act of 1993 (``RFRA''), 42 U.S.C. 2000bb-2000bb-4.
As the Supreme Court recently clarified in Trinity Lutheran Church
of Columbia, Inc. v. Comer, 137 S. Ct. 2012, 2019 (2017) (quoting
Church of the Lukumi Babalu Aye, Inc. v. City of Hialeah, 508 U.S. 520,
533, 542 (1993) (alteration in original)): ``The Free Exercise Clause
`protect[s] religious observers against unequal treatment' and subjects
to the strictest scrutiny laws that target the religious for `special
disabilities' based on their `religious status.''' The Court in Trinity
Lutheran added: ``[T]his Court has repeatedly confirmed that denying a
generally available benefit solely on account of religious identity
imposes a penalty on the free exercise of religion that can be
justified only by a state interest `of the highest order.' '' Id.
(quoting McDaniel v. Paty, 435 U.S. 618, 628 (1978) (plurality
opinion)); see also Mitchell v. Helms, 530 U.S. 793, 827 (2000)
(plurality opinion) (``[T]he religious nature of a recipient should not
matter to the constitutional analysis, so long as the recipient
adequately furthers the government's secular purpose.''); principle 6
of the Attorney General's Memorandum on Religious Liberty, 82 FR at
49669 (``Government may not target religious individuals or entities
for special disabilities based on their religion.'').
Applying the alternative provider requirement categorically to all
faith-based and not to other providers of federally funded social
services is thus in tension with the nondiscrimination principle
articulated in Trinity Lutheran and the Attorney General's Memorandum
on Religious Liberty.
In addition, the alternative provider requirement could in certain
circumstances raise concerns under RFRA. Under RFRA, where the
Government substantially burdens an entity's exercise of religion, the
Government must prove that the burden is in furtherance of a compelling
government interest and is the least restrictive means of furthering
that interest. 42 U.S.C. 2000bb-1(b). When a faith-based grant
recipient carries out its social service programs, it may engage in an
exercise of religion protected by RFRA and certain conditions on
receiving those grants may substantially burden the religious exercise
of the recipient. See Application of the Religious Freedom Restoration
Act to the Award of a Grant Pursuant to a Juvenile Justice and
Delinquency Prevention Act, 31 Op. O.L.C. 162, 169-71, 174-83 (2007)
(``World Vision Opinion''). Requiring faith-based organizations to
comply with the alternative provider requirement could impose such a
burden, such as in a case in which a faith-based organization has a
religious objection to referring the beneficiary to an alternative
provider that provides services in a manner that violates the
organization's religious tenets. See Burwell v. Hobby Lobby Stores,
Inc., 573 U.S. 682, 720-26 (2014). And it is far from clear that this
requirement would meet the strict scrutiny that RFRA requires of laws
that substantially burden religious practice. The Department is not
aware of any instance in which a beneficiary has actually sought an
alternative provider, undermining the suggestion that the interests
this requirement serves are in fact important, much less compelling
enough to outweigh a substantial burden on religious exercise.
Executive Order 13831 chose to eliminate the alternative provider
requirement for good reason. This decision avoids tension with the
nondiscrimination principle articulated in Trinity Lutheran and the
Attorney General's Memorandum on Religious Liberty, avoids problems
with RFRA that may arise, and fits within the Administration's broader
deregulatory agenda.
Other Notice Requirements
As noted above, Executive Order 13559 amended Executive Order 13279
by adding a right to an alternative provider and notice of this right.
While Executive Order 13559's requirement of notice to
beneficiaries was limited to notice of alternative providers, Part 38
as most recently amended goes further than Executive Order 13559 by
requiring that faith-based social service providers funded with direct
Federal funds provide a much broader notice to beneficiaries and
potential beneficiaries. This requirement applies only to faith-based
providers and not to other providers. In addition to the notice of the
right to an alternative provider, the rule requires notice of
nondiscrimination based on religion; that participation in religious
activities must be voluntary and separate in time or space from
activities funded with direct Federal funds; and that beneficiaries or
potential beneficiaries may report violations.
Separate and apart from these notice requirements, Executive Order
13279, as amended, clearly set forth the underlying requirements of
nondiscrimination, voluntariness, and the holding of religious
activities separate in time or place from any federally funded
activity. Faith-based providers of social services, like other
providers of social services, are required to follow the law and the
requirements of grants and contracts they receive. See, e.g., 28 CFR
38.7. There is no basis on which to presume that they are less likely
than other social service providers to follow the law. See
[[Page 2924]]
Mitchell, 530 U.S. at 856-57 (O'Connor, J., concurring in judgment)
(noting that in Tilton v. Richardson, 403 U.S. 672 (1971), the Court's
upholding of grants to universities for construction of buildings with
the limitation that they only be used for secular educational purposes
``demonstrate[d] our willingness to presume that the university would
abide by the secular content restriction''). There is thus no need for
prophylactic protections that create administrative burdens on faith-
based providers and that are not imposed on other providers.
Definition of Indirect Federal Financial Assistance
Executive Order 13559 directed its Interagency Working Group on
Faith-Based and Other Neighborhood Partnerships to propose model
regulations and guidance documents regarding, among other things, ``the
distinction between `direct' and `indirect' Federal financial
assistance[.]'' 75 FR at 71321. Following issuance of the Working
Group's report, the 2016 joint final rule amended existing regulations
to make that distinction, and to clarify that ``organizations that
participate in programs funded by indirect financial assistance need
not modify their program activities to accommodate beneficiaries who
choose to expend the indirect aid on those organizations' programs,''
need not provide notices or referrals to beneficiaries, and need not
separate their religious activities from supported programs. 81 FR at
19358. In so doing, the final rule attempted to capture the definition
of ``indirect'' aid that the U.S. Supreme Court employed in Zelman v.
Simmons-Harris, 536 U.S. 639 (2002). See 81 FR at 19361-62.
In Zelman, the Court concluded that a government funding program is
``one of true private choice''--that is, an indirect-aid program--where
there is ``no evidence that the State deliberately skewed incentives
toward religious'' providers. 536 U.S. at 650. The Court upheld the
challenged school-choice program because it conferred assistance
``directly to a broad class of individuals defined without reference to
religion'' (i.e., parents of schoolchildren); it permitted
participation by both religious and nonreligious educational providers;
it allocated aid ``on the basis of neutral, secular criteria that
neither favor nor disfavor religion''; and it made aid available ``to
both religious and secular beneficiaries on a nondiscriminatory
basis.'' Id. at 653-54 (quotation marks omitted). While the Court noted
the availability of secular providers, it specifically declined to make
its definition of indirect aid hinge on the ``preponderance of
religiously affiliated private'' providers in the city, as that
preponderance arose apart from the program; doing otherwise, the Court
concluded, ``would lead to the absurd result that a neutral school-
choice program might be permissible in some parts of Ohio, . . . but
not in'' others. Id. at 656-58. In short, the Court concluded that
``[t]he constitutionality of a neutral . . . aid program simply does
not turn on whether and why, in a particular area, at a particular
time, most [providers] are run by religious organizations, or most
recipients choose to use the aid at a religious [provider].'' Id. at
658.
The final rule issued after the Working Group's report included
among its criteria for indirect Federal financial assistance a
requirement that beneficiaries have ``at least one adequate secular
option'' for use of the Federal financial assistance. See 81 FR at
19407-19426. In other words, the rule amended regulations to make the
definition of ``indirect'' aid hinge on the availability of secular
providers. A regulation defining ``indirect Federal financial
assistance'' to require the availability of secular providers is in
tension with the Supreme Court's choice not to make the definition of
indirect aid hinge on the geographically varying availability of
secular providers. Thus, it is appropriate to amend existing
regulations to bring the definition of ``indirect'' aid more closely
into line with the Supreme Court's definition in Zelman.
Overview of the Proposed Rule
The Department proposes to amend part 38 to implement Executive
Order 13831 and conform more closely to the Supreme Court's current
First Amendment jurisprudence; relevant Federal statutes such as RFRA,
42 U.S.C. 2000bb et seq.; Executive Order 13279, as amended by
Executive Orders 13559 and 13831; and the Attorney General's Memorandum
on Religious Liberty.
Consistent with these authorities, this proposed rule would amend
part 38 to conform to Executive Order 13279, as amended, by deleting
the requirement that faith-based social service providers refer
beneficiaries objecting to receiving services from them to an
alternative provider and the requirement that faith-based organizations
provide notices that are not required of secular organizations.
This proposed rule would also make clear that a faith-based
organization that participates in Department-funded programs or
services shall retain its autonomy; right of expression; religious
character; and independence from Federal, State, and local governments.
It would further clarify that none of the guidance documents that the
Department or any State or local government uses in administering the
Department's financial assistance shall require faith-based
organizations to provide assurances or notices where similar
requirements are not imposed on secular organizations, and that any
restrictions on the use of grant funds shall apply equally to faith-
based and secular organizations.
This proposed rule would additionally require that the Department's
notices or announcements of award opportunities and notices of awards
or contracts include language clarifying the rights and obligations of
faith-based organizations that apply for and receive Federal funding.
The language will clarify that, among other things, faith-based
organizations may apply for awards on the same basis as any other
organization; that the Department will not, in the selection of
recipients, discriminate against an organization on the basis of the
organization's religious exercise or affiliation; and that a faith-
based organization that participates in a federally funded program
retains its independence from the government and may continue to carry
out its mission consistent with religious freedom protections in
Federal law, including the Free Speech and Free Exercise Clauses of the
First Amendment to the Constitution.
Finally, the proposed rule would directly reference the definition
of ``religious exercise'' in RFRA, and would amend the definition of
``indirect Federal Financial assistance'' to align more closely with
the Supreme Court's definition in Zelman.
Explanations for the Proposed Amendments to Part 38
Part 38. Partnerships With Faith-Based and Other Neighborhood
Organizations
Section[thinsp]38.1 Purpose
Section 38.1 is proposed to be changed in order to include a
reference to Executive Order 13831.
Section[thinsp]38.2 Applicability and Scope
Section 38.2(a) is proposed to be changed in order to clarify the
text by eliminating extraneous language--specifically, the language
``or religious'' when used in ``faith-based or religious organization''
to align with the terminology used in Executive Order 13831.
[[Page 2925]]
Section[thinsp]38.3 Definitions
Section 38.3(b) is proposed to be changed in order to clarify the
text by eliminating extraneous language and to align the text more
closely with the First Amendment by removing the requirement of an
``adequate secular option'' for each beneficiary as discussed above and
otherwise clarifying the test for indirect Federal financial
assistance. See, e.g., Zelman, 536 U.S. 639; Trinity Lutheran, 137 S.
Ct. 2012.
Section 38.3(g) is proposed to be added in order to provide a
definition of ``religious exercise'' that aligns with the definitions
used in RFRA, 42 U.S.C. 2000bb et seq., and with the Religious Land Use
and Individualized Persons Act of 2000, 42 U.S.C. 2000cc-5(7)(A). See,
e.g., principles 10-15 of the Attorney General's Memorandum on
Religious Liberty, 82 FR 49668 (October 26, 2017).
Section[thinsp]38.4 Policy
Section 38.4(a) is proposed to be changed in order to clarify the
text by eliminating extraneous language and to align it more closely
with RFRA by recognizing both the possibility that a religious
accommodation for a service provider may be appropriate or required and
by confirming that government may not discriminate for or against an
organization, in the selection of service providers, based on an
organization's religious exercise. See, e.g., principles 6, 10-15, and
20 of the Attorney General's Memorandum on Religious Liberty, 82 FR
49668 (October 26, 2017); World Vision Opinion.
Section[thinsp]38.5 Responsibilities
Section 38.5(b) is proposed to be changed in order to clarify the
text and to align it more closely with the First Amendment and with
RFRA by providing more detail about the autonomy that a faith-based
organization retains while participating in government programming.
See, e.g., Exec. Order No. 13279, 67 FR 77141 (December 16, 2002), as
amended by Exec. Order No. 13831, 83 FR 20715 (May 8, 2018); principles
9-15, 19, and 20 of the Attorney General's Memorandum on Religious
Liberty, 82 FR 49668 (Oct. 26, 2017).
Section 38.5(c) is proposed to be changed in order to align the
text more closely with the First Amendment and with RFRA by making
clear that an organization receiving indirect financial assistance is
not required to make the attendance requirements of its program
optional for a beneficiary who has chosen to expend indirect aid on
that program. See, e.g., Zelman, 536 U.S. 639; principles 4, 10-15, and
20 of the Attorney General's Memorandum on Religious Liberty, 82 FR
49668 (Oct. 26, 2017).
Section 38.5(d) is proposed to be changed in order to clarify the
text and align it more closely with the First Amendment and with RFRA
by making clear that assurances should not be required of faith-based
organizations when they are not required of non-faith-based
organizations, by recognizing the possibility of an accommodation for a
faith-based organization participating in a Department program, and by
prohibiting disqualification of an eligible faith-based organization
from such participation because of its religious exercise. See, e.g.,
Trinity Lutheran, 137 S. Ct. 2012; principles 6, 7, and 10-15 of the
Attorney General's Memorandum on Religious Liberty, 82 FR 49668 (Oct.
26, 2017).
Section 38.5(f) is proposed to be changed in order to include a
reference to Executive Order 13831.
Section 38.5(g) is proposed to be changed in order to clarify the
text and align it more closely with RFRA by adding language that would
not require application for tax-exempt status under section 501(c)(3)
of the Internal Revenue Code. If an entity has a sincerely held
religious belief that it cannot apply for status as a 501(c)(3) tax-
exempt entity, it may provide evidence sufficient to establish that the
entity would otherwise qualify as a nonprofit organization under the
Department's criteria in 28 CFR 38.5(g)(1)-(4). See, e.g., principles
10-15 of the Attorney General's Memorandum on Religious Liberty, 82 FR
49668 (October 26, 2017).
Section 38.5(i) is proposed to be added in order to align the text
more closely with the First Amendment by making clear that these
provisions relating to nondiscrimination toward faith-based
organizations should not be construed to advantage or disadvantage
historically recognized religions or sects over other religions or
sects. See, e.g., Larson v. Valente, 456 U.S. 228 (1982); principle 8
of the Attorney General's Memorandum on Religious Liberty, 82 FR 49668
(October 26, 2017).
Section[thinsp]38.6 Procedures
Section 38.6 is proposed to be changed to align the text more
closely with the First Amendment and with RFRA by eliminating the
notice and referral requirements discussed above and replacing them
with alternative notices discussed below. See, e.g., Zelman, 536 U.S.
639, Trinity Lutheran, 137 S. Ct. 2012; principles 2, 3, 6-7, 9-17, 19,
and 20 of the Attorney General's Memorandum on Religious Liberty, 82 FR
49668 (October 26, 2017); Exec. Order No. 13279, 67 FR 77141 (December
16, 2002), as amended by Exec. Order No. 13559, 75 FR 71319 (Nov. 22,
2010), and Exec. Order No. 13831, 83 FR 20715 (May 8, 2018).
Appendix A and Appendix B
Appendix A and Appendix B are proposed to be changed to align the
text more closely with the First Amendment and with RFRA by deleting
the notice and referral requirements that solely burdened faith-based
organizations and instead requiring notices of the terms on which
faith-based organizations may generally participate in Department
funded programs. See, e.g., Zelman, 536 U.S. 639, Trinity Lutheran, 137
S. Ct. 2012; principles 2, 3, 6-7, 9-17, 19, and 20 of the Attorney
General's Memorandum on Religious Liberty, 82 FR 49668 (Oct. 26, 2017);
Exec. Order No. 13279, 67 FR 77141 (Dec. 16, 2002), as amended by Exec.
Order No. 13559, 75 FR 71319 (Nov. 22, 2010), and Exec. Order No.
13831, 83 FR 20715 (May 8, 2018).
III. Regulatory Certifications
Executive Order 12866 and 13563--Regulatory Planning and Review
This NPRM has been drafted in accordance with Executive Order 13563
of January 18, 2011, 76 FR 3821, Improving Regulation and Regulatory
Review, and Executive Order 12866 of September 30, 1993, 58 FR 51735,
Regulatory Planning and Review. Executive Order 13563 directs agencies,
to the extent permitted by law, to propose or adopt a regulation only
upon a reasoned determination that its benefits justify its costs;
tailor the regulation to impose the least burden on society, consistent
with obtaining the regulatory objectives; and, in choosing among
alternative regulatory approaches, select those approaches that
maximize net benefits. Executive Order 13563 recognizes that some
benefits and costs are difficult to quantify and provides that, where
appropriate and permitted by law, agencies may consider and discuss
qualitatively values that are difficult or impossible to quantify,
including equity, human dignity, fairness, and distributive impacts.
Under Executive Order 12866, the Office of Information and
Regulatory Affairs (``OIRA'') must determine whether this regulatory
action is ``significant'' and, therefore, subject to the requirements
of the Executive Order and subject to review by the Office of
Management and Budget (``OMB'').
[[Page 2926]]
Section 3(f) of Executive Order 12866 defines a ``significant
regulatory action'' as an action likely to result in a regulation that
may:
(1) Have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or communities
(also referred to as an ``economically significant'' regulation);
(2) Create a serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
(3) Materially alter the budgetary impacts of entitlements, grants,
user fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles stated in
Executive Order 12866.
OIRA has determined that this proposed rule is a significant, but
not economically significant, regulatory action subject to review by
OMB under section 3(f) of Executive Order 12866. Accordingly, OMB has
reviewed this proposed rule.
The Department has also reviewed these regulations under Executive
Order 13563, which supplements and reaffirms the principles,
structures, and definitions governing regulatory review established in
Executive Order 12866. To the extent permitted by law, section 1(b) of
Executive Order 13563 requires that an agency:
(1) Propose or adopt regulations only upon a reasoned determination
that their benefits justify their costs (recognizing that some benefits
and costs can be difficult to quantify);
(2) Tailor its regulations to impose the least burden on society,
consistent with obtaining regulatory objectives, and taking into
account--among other things and to the extent practicable--the costs of
cumulative regulations;
(3) In choosing among alternative regulatory approaches, select
those approaches that maximize net benefits (including potential
economic, environmental, public health and safety, and other
advantages; distributive impacts; and equity);
(4) To the extent feasible, specify performance objectives, rather
than the behavior or manner of compliance that regulated entities must
adopt; and
(5) Identify and assess available alternatives to direct
regulation, including providing economic incentives--such as user fees
or marketable permits--to encourage the desired behavior, or providing
information that enables the public to make choices. 76 FR 3821, 3821
(Jan. 21, 2011). Section 1(c) of Executive Order 13563 also requires an
agency ``to use the best available techniques to quantify anticipated
present and future benefits and costs as accurately as possible.'' Id.
The Office of Information and Regulatory Affairs of OMB has emphasized
that these techniques may include ``identifying changing future
compliance costs that might result from technological innovation or
anticipated behavioral changes.'' Memorandum for the Heads of Executive
Departments and Agencies, and of Independent Regulatory Agencies, from
Cass R. Sunstein, Administrator, Office of Information and Regulatory
Affairs, Re: Executive Order 13563, ``Improving Regulation and
Regulatory Review'', at 1 (Feb. 2, 2011), https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2011/m11-10.pdf.
The Department is issuing these proposed regulations upon a
reasoned determination that their benefits justify their costs. In
choosing among alternative regulatory approaches, the Department
selected the approach that it believes maximizes net benefits. Based on
the analysis that follows, the Department believes that the proposed
regulations are consistent with the principles in Executive Order
13563. It is the reasoned determination of the Department that this
proposed action would, to a significant degree, eliminate costs that
have been incurred by faith-based organizations as they complied with
the requirements of section 2(b) of Executive Order 13559, while not
adding any other requirements for those organizations. The Department
has determined in addition that this proposed action would result in
benefits to beneficiaries, described in more detail below.
The Department also has determined that this regulatory action does
not unduly interfere with State, local, or tribal governments in the
exercise of their governmental functions.
In accordance with Executive Orders 12866 and 13563, the Department
has assessed the potential costs and benefits, both quantitative and
qualitative, of this regulatory action. The potential costs and cost
savings associated with this regulatory action are those resulting from
the removal of the notification and referral requirements of Executive
Order 13279, as amended by Executive Order 13559 and further amended by
Executive Order 13831, and those determined to be necessary for
administering the Department's programs and activities. For example,
the Department recognizes that the removal of the notice and referral
requirements could impose some costs on beneficiaries who may now need
to investigate alternative providers on their own if they object to the
religious character of a potential social service provider. The
Department invites comment on any information that it could use to
quantify this potential cost.
The Department also notes a quantifiable cost savings of the
removal of the notice requirement, which the Department previously
estimated as imposing a cost of no more than $200 per faith-based
organization per year for the notices. 81 FR 19391. That estimate was
based on an estimate that it would take no more than two hours for
faith-based organizations to familiarize themselves with the notice and
referral requirements and print and duplicate an adequate number of
notice and referral forms for potential beneficiaries, at an upper
limit of $50/hour for the labor cost to prepare the forms and an upper
limit of $100 for the annual cost of materials to print multiple copies
of forms. Id. The Department is not aware of any changed circumstances
that would counsel a change in this estimated cost. Thus, the
Department estimates that the proposed rule's elimination of the notice
requirement will result in a cost savings of up to $200 per faith-based
organization per year.
The Department previously estimated that the cost added by the
recordkeeping requirement associated with the referral requirement was
so small as to not be measurable. 80 FR 47316, 47322 (Aug. 6, 2015).
Moreover, the Department was unable to quantify the cost of the
referral requirement. 81 FR 19391. In particular, while it had
previously estimated a burden of two hours of labor per referral, 80 FR
47322, in the 2016 final rule, it was unable to determine the number of
referrals that will occur in any one year, 81 FR 19391. The Department
now has the benefit of experience and is not aware of any instance of
the referral requirement actually being invoked. Because it appears
that the referral requirement was never invoked, and therefore faith-
based organizations did not expend additional labor or material costs
to comply with the referral and recordkeeping requirements, the
Department does not expect the elimination of the referral and
recordkeeping requirements to result in a cost savings.
The Department invites comment on any data by which it could better
assess the actual implementation costs of the notice, referral, and
recordkeeping
[[Page 2927]]
requirements--including any estimates of staff time spent on compliance
with the requirements, in addition to the printing costs for the
notices referenced above--and thereby accurately quantify the cost
savings of removing these requirements.
In terms of benefits, the Department recognizes a non-quantified
benefit to religious liberty that comes from removing requirements
imposed solely on faith-based organizations, in tension with the
principles of free exercise articulated in Trinity Lutheran. The
Department also recognizes a non-quantified benefit to grant recipients
and beneficiaries alike that comes from increased clarity in the
regulatory requirements that apply to faith-based organizations
operating social-service programs funded by the Federal Government.
Beneficiaries will also benefit from the increased capacity of faith-
based social-service providers to provide services, both because these
providers will be able to shift resources otherwise spent fulfilling
the notice and referral requirements to provision of services, and
because more faith-based social service providers may participate in
the marketplace once relieved of the concern of excessive governmental
involvement.
Executive Order 13771--Reducing Regulation and Controlling Regulatory
Costs
Executive Order 13771, Reducing Regulation and Controlling
Regulatory Costs, was issued on January 30, 2017 (82 FR 9339 (Feb. 3,
2017)). Section 2(a) of Executive Order 13771 requires an agency,
unless prohibited by law, to identify at least two existing regulations
to be repealed when the agency publicly proposes for notice and
comment, or otherwise promulgates, a new regulation. In furtherance of
this requirement, section 2(c) of Executive Order 13771 requires that
the new incremental costs associated with new regulations shall, to the
extent permitted by law, be offset by the elimination of existing costs
associated with at least two prior regulations. OMB's interim guidance,
issued on April 5, 2017, https://www.whitehouse.gov/the-press-office/2017/04/05/memorandum-implementing-executive-order-13771-titled-reducing-regulation, explains that for Fiscal Year 2017 the above
requirements only apply to each new ``significant regulatory action
that imposes costs.'' This proposed rule is expected to be an E.O.
13771 deregulatory action.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by
the Small Business Regulatory Enforcement Fairness Act of 1996,
generally requires an agency to prepare a regulatory flexibility
analysis of any rule subject to the notice and comment rulemaking
requirements under the Administrative Procedure Act (5 U.S.C. 553) or
any other statute, unless the agency certifies that the rule will not
have a significant economic impact on a substantial number of small
entities.
The Department has determined that this rule will not have a
significant economic impact on a substantial number of small entities.
Consequently, the Department has not prepared a regulatory flexibility
analysis.
Executive Order 12988--Civil Justice Reform
This proposed rule has been reviewed in accordance with Executive
Order 12988, Civil Justice Reform. The provisions of this proposed rule
will not have preemptive effect with respect to any State or local
laws, regulations, or policies that conflict with such provision or
that otherwise impede their full implementation. The rule will not have
retroactive effect.
Executive Order 13175--Consultation and Coordination With Indian Tribal
Governments
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments. Executive Order 13175 requires Federal agencies to consult
and coordinate with tribes on a government-to-government basis on
policies that have tribal implications, including regulations,
legislative comments or proposed legislation, and other policy
statements or actions that have substantial direct effects on one or
more Indian tribes, on the relationship between the Federal Government
and Indian tribes or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.
The Department has assessed the impact of this rule on Indian
tribes and determined that this rule does not, to its knowledge, have
tribal implications that require tribal consultation under Executive
Order 13175.
Executive Order 13132--Federalism
Executive Order 13132 directs that, to the extent practicable and
permitted by law, an agency shall not promulgate any regulation that
has federalism implications, that imposes substantial direct compliance
costs on State and local governments, that is not required by statute,
or that preempts State law, unless the agency meets the consultation
and funding requirements of section 6 of the Executive Order. Because
each change proposed by this rule does not have federalism implications
as defined in the Executive Order, does not impose direct compliance
costs on State and local governments, is required by statute, or does
not preempt State law within the meaning of the Executive Order, the
Department has concluded that compliance with the requirements of
section 6 is not necessary.
Plain Language Instructions
The Department makes every effort to promote clarity and
transparency in its rulemaking. In any regulation, there is a tension
between drafting language that is simple and straightforward and
drafting language that gives full effect to issues of legal
interpretation. The Department is proposing a number of changes to this
regulation to enhance its clarity and satisfy the plain language
requirements, including revising the organizational scheme and adding
headings to make it more user-friendly. If any commenter has
suggestions for how the regulation could be written more clearly,
please provide comments using the contact information provided in the
introductory section of this proposed rule entitled, FOR FURTHER
INFORMATION CONTACT.
Paperwork Reduction Act
This proposed rule does not contain any new or revised
``collection[s] of information'' as defined by the Paperwork Reduction
Act of 1995. 44 U.S.C. 3501 et seq.
Unfunded Mandates Reform Act
Section 4(2) of the Unfunded Mandates Reform Act of 1995, 2 U.S.C.
1503(2), excludes from coverage under that Act any proposed or final
Federal regulation that ``establishes or enforces any statutory rights
that prohibit discrimination on the basis of race, color, religion,
sex, national origin, age, handicap, or disability.'' Accordingly, this
rulemaking is not subject to the provisions of the Unfunded Mandates
Reform Act.
List of Subjects in 28 CFR Part 38
Administrative practice and procedure, Grant programs, Reporting
and recordkeeping requirements, Nonprofit organizations.
Accordingly, for the reasons set forth in the preamble, part 38 of
chapter I of Title 28 of the Code of Federal
[[Page 2928]]
Regulations is proposed to be amended as follows:
PART 38--PARTNERSHIPS WITH FAITH-BASED AND OTHER NEIGHBORHOOD
ORGANIZATIONS
0
1. The authority citation for part 38 is revised to read as follows:
Authority: 28 U.S.C. 509; 5 U.S.C. 301; E.O. 13279, 67 FR 77141;
18 U.S.C. 4001, 4042, 5040; 21 U.S.C. 871; 25 U.S.C. 3681; Pub. L.
107-273, 116 Stat. 1758; Public Law 109-162, 119 Stat. 2960; 34
U.S.C. 10152, 10154, 10172, 10221, 10382, 10388, 10444, 10446,
10448, 10473, 10614, 10631, 11111, 11182, 20110, 20125; E.O. 13559,
75 FR 71319; E.O. 13831, 83 FR 20715.
0
2. Remove ``or religious'' every place it appears except in Sec.
38.4(b).
Sec. 38.1 [Amended]
0
3. Amend Sec. 38.1 by removing ``13279 and Executive Order 13559'' and
adding in its place ``13279, Executive Order 13559, and Executive Order
13831''.
0
4. Amend Sec. 38.3 by:
0
a. In paragraph (b) introductory text, remove ``provided to an
organization''.
0
b. In paragraph (b)(1), add ``and'' after ``religion''.
0
c. Revise paragraph (b)(2).
0
d. Remove paragraph (b)(3).
0
e. Add paragraph (g).
The revision and addition reads as follows:
Sec. 38.3 Definitions.
* * * * *
(b) * * *
(2) The service provider receives the assistance as a result of an
independent choice of the beneficiary, not a choice of the Government.
* * * * *
(g) Religious exercise has the meaning given to the term in 42
U.S.C. 2000cc-5(7)(A).
0
5. Amend Sec. 38.4 by:
0
a. In paragraph (a), add ``and considering any religious accommodations
appropriate under the Constitution or other provisions of Federal law,
including but not limited to 42 U.S.C. 2000bb et seq., 42 U.S.C. 238n,
42 U.S.C. 18113, 42 U.S.C. 2000e-1(a) and 2000e-2(e), 42 U.S.C.
12113(d), and the Weldon Amendment'' after ``other organization''.
0
b. In paragraph (a), remove ``character'' and add in its place
``exercise''.
0
6. Amend Sec. 38.5 as follows:
0
a. Amend paragraph (b).
0
i. Add ``autonomy; right of expression; religious character; and''
before ``independence''.
0
ii. Remove ``support'' and add in its place ``fund''.
0
iii. Add ``concealing, altering, or'' before ``removing''.
0
iv. Remove ``a religious basis'' and add in its place ``the basis of
their acceptance of or adherence to the religious tenets of the
organization''.
0
b. In paragraph (c), add ``and may require attendance at all activities
that are fundamental to the program'' after ``organization's program''.
0
c. Revise paragraph (d).
0
d. In paragraph (f), remove ``13559,'' and add in its place ``13559 and
further amended by Executive Order 13831,''.
0
e. Amend paragraph (g) by:
0
i. In the introductory text, remove ``a religious'' and add in its
place ``a faith-based''.
0
ii. In paragraph (g)(3), remove ``or'' after ``applicant;''.
0
iii. In paragraph (g)(4), remove ``affiliate.'' and add in its place
``affiliate; or''.
0
iv. Add paragraph (g)(5).
0
f. Add paragraph (i).
The revisions and additions read as follows:
Sec. 38.5 Responsibilities.
* * * * *
(d) No grant document, agreement, covenant, memorandum of
understanding, policy, or regulation that the Department or a State or
local government uses in administering financial assistance from the
Department shall require faith-based or religious organizations to
provide assurances or notices where they are not required of non-faith-
based organizations. Any restrictions on the use of grant funds shall
apply equally to faith-based and non-faith-based organizations. All
organizations, including religious ones, that participate in Department
programs must carry out all eligible activities in accordance with all
program requirements, subject to any religious accommodations
appropriate under the Constitution or other provisions of Federal law,
including but not limited to 42 U.S.C. 2000bb et seq., 42 U.S.C. 238n,
42 U.S.C. 18113, 42 U.S.C. 2000e-1(a) and 2000e-2(e), 42 U.S.C.
12113(d), and the Weldon Amendment, and other applicable requirements
governing the conduct of Department-funded activities, including those
prohibiting the use of direct financial assistance from the Department
to engage in explicitly religious activities. No grant document,
agreement, covenant, memorandum of understanding, policy, or regulation
that is used by the Department or a State or local government in
administering financial assistance from the Department shall disqualify
faith-based or religious organizations from participating in the
Department's programs because such organizations are motivated or
influenced by religious faith to provide social services, or because of
their religious exercise or affiliation.
* * * * *
(g) * * *
(5) For an entity that holds a sincerely held religious belief that
it cannot apply for a determination as an entity that is tax-exempt
under section 501(c)(3) of the Internal Revenue Code, evidence
sufficient to establish that the entity would otherwise qualify as a
nonprofit organization under paragraphs (g)(1) through (g)(4) of this
section.
* * * * *
(i) Neither the Department awarding agency nor any State or local
government or other pass-through entity receiving funds under any
Department program or service shall construe these provisions in such a
way as to advantage or disadvantage faith-based organizations
affiliated with historic or well-established religions or sects in
comparison with other religions or sects.
0
7. Amend Sec. 38.6 as follows:
0
a. Revise paragraph (b) to read as follows:
0
b. Remove paragraphs (c) and (d).
Sec. 38.6 Procedures.
* * * * *
(b) Notices or announcements of award opportunities and notices of
award or contracts shall include language substantially similar to that
in Appendices A and B, respectively, to this part.
0
8. Revise Appendix A and Appendix B to Part 38 to read as follows:
Appendix A to Part 38--Notice or Announcement of Award Opportunities
Faith-based organizations may apply for this award on the same
basis as any other organization, as set forth at, and subject to the
protections and requirements of, part 38 and 42 U.S.C. 2000bb et
seq. The Department of Justice will not, in the selection of
recipients, discriminate against an organization on the basis of the
organization's religious exercise or affiliation.
A faith-based organization that participates in this program
will retain its independence from the government and may continue to
carry out its mission consistent with religious freedom protections
in Federal law, including the Free Speech and Free Exercise Clauses
of the First Amendment, 42 U.S.C. 2000bb et seq., 42 U.S.C. 238n, 42
U.S.C. 18113, 42 U.S.C. 2000e-1(a) and 2000e-2(e), 42 U.S.C.
12113(d), and the Weldon Amendment, among others. Religious
accommodations may also be sought under many of these religious
freedom protection laws.
A faith-based organization may not use direct financial
assistance from the
[[Page 2929]]
Department of Justice to support or engage in any explicitly
religious activities except where consistent with the Establishment
Clause and any other applicable requirements. Such an organization
also may not, in providing services funded by the Department of
Justice, discriminate against a program beneficiary or prospective
program beneficiary on the basis of religion, a religious belief, a
refusal to hold a religious belief, or a refusal to attend or
participate in a religious practice.
Appendix B to Part 38--Notice of Award or Contract
A faith-based organization that participates in this program
retains its independence from the government and may continue to
carry out its mission consistent with religious freedom protections
in Federal law, including the Free Speech and Free Exercise Clauses
of the Constitution, 42 U.S.C. 2000bb et seq., 42 U.S.C. 238n, 42
U.S.C. 18113, 42 U.S.C. 2000e-1(a) and 2000e-2(e), 42 U.S.C.
12113(d), and the Weldon Amendment, among others. Religious
accommodations may also be sought under many of these religious
freedom protection laws.
A faith-based organization may not use direct financial
assistance from the Department of Justice to support or engage in
any explicitly religious activities except when consistent with the
Establishment Clause of the First Amendment and any other applicable
requirements. Such an organization also may not, in providing
services funded by the Department of Justice, discriminate against a
program beneficiary or prospective program beneficiary on the basis
of religion, a religious belief, a refusal to hold a religious
belief, or a refusal to attend or participate in a religious
practice.
Dated: December 18, 2019.
William P. Barr,
Attorney General.
[FR Doc. 2019-27777 Filed 1-16-20; 8:45 am]
BILLING CODE 4410-18-P