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  <FDSYS>
    <CFRTITLE>7</CFRTITLE>
    <CFRTITLETEXT>Agriculture</CFRTITLETEXT>
    <VOL>1</VOL>
    <DATE>2007-01-01</DATE>
    <ORIGINALDATE>2007-01-01</ORIGINALDATE>
    <COVERONLY>false</COVERONLY>
    <TITLE>EQUAL OPPORTUNITY FOR RELIGIOUS ORGANIZATIONS</TITLE>
    <GRANULENUM>16</GRANULENUM>
    <HEADING>PART 16</HEADING>
    <ANCESTORS>
      <PARENT HEADING="Title 7" SEQ="1">Agriculture</PARENT>
      <PARENT HEADING="Subtitle A" SEQ="0">Office of the Secretary of Agriculture</PARENT>
    </ANCESTORS>
  </FDSYS>
  <PART>
    <EAR>Pt. 16</EAR>
    <HD SOURCE="HED">PART 16—EQUAL OPPORTUNITY FOR RELIGIOUS ORGANIZATIONS</HD>
    <CONTENTS>
      <SECHD>Sec.</SECHD>
      <SECTNO>16.1</SECTNO>
      <SUBJECT>Purpose and applicability.</SUBJECT>
      <SECTNO>16.2</SECTNO>
      <SUBJECT>Rights of religious organizations.</SUBJECT>
      <SECTNO>16.3</SECTNO>
      <SUBJECT>Responsibilities of participating organizations.</SUBJECT>
      <SECTNO>16.4</SECTNO>
      <SUBJECT>Effect on State and local funds.</SUBJECT>
      <SECTNO>16.5</SECTNO>
      <SUBJECT>Compliance.</SUBJECT>
    </CONTENTS>
    <AUTH>
      <HD SOURCE="HED">Authority:</HD>
      <P>5 U.S.C. 301; E.O. 13279, 67 FR 77141, 3 CFR, 2002 Comp., p. 258; E.O. 13280, 67 FR 77145, 3 CFR, 2002 Comp., p. 262.</P>
    </AUTH>
    <SOURCE>
      <HD SOURCE="HED">Source:</HD>
      <P>69 FR 41382, July 9, 2004, unless otherwise noted.</P>
    </SOURCE>
    <SECTION>
      <SECTNO>§ 16.1</SECTNO>
      <SUBJECT>Purpose and applicability.</SUBJECT>
      <P>(a) The purpose of this part is to set forth USDA policy regarding equal opportunity for religious organizations to participate in USDA assistance programs for which other private organizations are eligible.</P>
      <P>(b) Except as otherwise specifically provided in this part, the policy outlined in this part applies to all recipients and subrecipients of USDA assistance to which 7 CFR parts 3015, 3016, or 3019 apply, and to recipients and subrecipients of Commodity Credit Corporation assistance that is administered by agencies of USDA.</P>
    </SECTION>
    <SECTION>
      <SECTNO>§ 16.2</SECTNO>
      <SUBJECT>Rights of religious organizations.</SUBJECT>
      <P>(a) A religious organization is eligible, on the same basis as any other eligible private organization, to access and participate in USDA assistance programs. Neither the Federal government nor a State or local government receiving USDA assistance shall, in the selection of service providers, discriminate for or against a religious organization on the basis of the organization's religious character or affiliation.</P>

      <P>(b) A religious organization that participates in USDA assistance programs will retain its independence and may continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that it does not use USDA direct assistance to support any inherently religious activities, such as worship, religious instruction, or proselytization. Among other things, a religious organization may:
      </P>
      <EXTRACT>
        <PRTPAGE P="459"/>
        <P>(1) Use space in its facilities to provide services and programs without removing religious art, icons, scriptures, or other religious symbols,</P>
        <P>(2) Retain religious terms in its organization's name,</P>
        <P>(3) Select its board members and otherwise govern itself on a religious basis, and</P>
        <P>(4) Include religious references in its organizations' mission statements and other governing documents.</P>
      </EXTRACT>
      
      <P>(c) In addition, a religious organization's 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, is not forfeited when an organization receives USDA assistance.</P>
    </SECTION>
    <SECTION>
      <SECTNO>§ 16.3</SECTNO>
      <SUBJECT>Responsibilities of participating organizations.</SUBJECT>
      <P>(a) An organization that participates in programs and activities supported by direct USDA assistance programs shall not discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief.</P>
      <P>(b) Organizations that receive direct USDA assistance under any USDA program may not engage in inherently religious activities, such as worship, religious instruction, or proselytization, as part of the programs or services supported with direct USDA assistance. If an organization conducts such activities, the activities must be offered separately, in time or location, from the programs or services supported with direct assistance from USDA, and participation must be voluntary for beneficiaries of the programs or services supported with such direct assistance. These restrictions on inherently religious activities do not apply where USDA funds or benefits are provided to religious organizations as a result of a genuine and independent private choice of a beneficiary or through other indirect funding mechanisms, provided the religious organizations otherwise satisfy the requirements of the program.</P>

      <P>(c) Nothing in paragraphs (a) or (b) shall be construed to prevent religious organizations that receive USDA assistance under the Richard B. Russell National School Lunch Act, 42 U.S.C. 1751 <E T="03">et seq.,</E> the Child Nutrition Act of 1966, 42 U.S.C. 1771 <E T="03">et seq.,</E> or USDA international school feeding programs from considering religion in their admissions practices or from imposing religious attendance or curricular requirements at their schools.</P>
      <P>(d)(1) Direct USDA assistance may be used for the acquisition, construction, or rehabilitation of structures only to the extent that those structures are used for conducting USDA programs and activities and only to the extent authorized by the applicable program statutes and regulations. Direct USDA assistance may not be used for the acquisition, construction, or rehabilitation of structures to the extent that those structures are used by the USDA funding recipients for inherently religious activities. Where a structure is used for both eligible and inherently religious activities, direct USDA assistance may not exceed the cost of those portions of the acquisition, construction, or rehabilitation that are attributable to eligible activities in accordance with the cost accounting requirements applicable to USDA funds. Sanctuaries, chapels, or other rooms that an organization receiving direct assistance from USDA uses as its principal place of worship, however, are ineligible for USDA-funded improvements. Disposition of real property after the term of the grant or any change in use of the property during the term of the grant is subject to government-wide regulations governing real property disposition (see 7 CFR parts 3015, 3016 and 3019).</P>
      <P>(2) Any use of direct USDA assistance funds for equipment, supplies, labor, indirect costs and the like shall be prorated between the USDA program or activity and any use for other purposes by the religious organization in accordance with applicable laws, regulations, and guidance.</P>
      <P>(3) Nothing in this section shall be construed to prevent the residents of housing receiving direct USDA assistance funds from engaging in religious exercise within such housing.</P>
    </SECTION>
    <SECTION>
      <SECTNO>§ 16.4</SECTNO>
      <SUBJECT>Effect on State and local funds.</SUBJECT>

      <P>If a State or local government voluntarily contributes its own funds to supplement activities carried out under programs governed by this part, the <PRTPAGE P="460"/>State or local government has the option to separate out the direct USDA assistance funds or commingle them. If the funds are commingled, the provisions of this part shall apply to all of the commingled funds in the same manner, and to the same extent, as the provisions apply to the direct USDA assistance.</P>
    </SECTION>
    <SECTION>
      <SECTNO>§ 16.5</SECTNO>
      <SUBJECT>Compliance.</SUBJECT>
      <P>USDA agencies will monitor compliance with this part in the course of regular oversight of USDA programs.</P>
    </SECTION>
  </PART>
</CFRGRANULE>
