Arizona Revised Statutes | Title 41 - State Government | Chapter 34: Charitable choice in contracts for goods and services
AZ Rev Stat § 41-3751 (2018) Contracts for goods and services; religious organizations; definitions
A. Notwithstanding any other law or executive order, and in accordance
with this section, all public bodies shall contract for goods and services
provided pursuant to title 8, 36 or 46 or title 31, chapter 2, article 6
without discrimination against religious organizations, including
discrimination because of their religious beliefs or exercise of religion
and shall provide beneficiaries of assistance under the programs established
by law with certificates, vouchers or other forms of disbursement that are
redeemable with these organizations that are awarded a contract. The public
bodies may use any state, federal, local or other monies available for these
B. The public bodies shall allow contracts with religious organizations
to provide goods and services provided pursuant to title 8, 36 or 46 or
title 31, chapter 2, article 6 and to accept certificates, vouchers or other
forms of disbursement under any program established on the same basis as any
other nongovernmental provider without impairing the religious character of
these organizations, and without diminishing the religious freedom of
beneficiaries of assistance funded under these programs. The programs shall
be implemented consistent with the first amendment of the United States
Constitution. The public bodies shall not discriminate against an
organization that is or applies to be a contractor to provide assistance or
that accepts certificates, vouchers or other forms of disbursement on the
basis that the organization has a religious character.
C. A religious organization with a contract described in this section
shall retain its independence from federal, state and local governments,
including the religious organization's control over the definition,
development, practice and expression of its religious beliefs. Public bodies
shall not require a religious organization to alter its form of internal
governance or to remove religious art, icons, scripture or other symbols in
order to be eligible to contract to provide assistance or to accept
certificates, vouchers or other forms of disbursement funded under any
program or public contract.
D. If a person who applies for or receives goods, services or
disbursements objects to the religious character of the organization or
institution from which the person receives or would receive assistance
funded under any program, the public body shall provide the person, within a
reasonable period of time after the date of the objection, with assistance
from an alternative provider that is accessible to the person if an
alternative provider is available and the value of which is not less than
the value of assistance that the person would have received from the
religious organization. Organizations shall provide notice to people
receiving assistance of the right to object pursuant to this subsection.
E. A religious organization's exemption provided under section 702 of the
civil rights act of 1964 (P.L. 88-352; 78 Stat. 255; 42 United States Code
section 2000e-1a) regarding employment practices is not affected by its
participation in or receipt of monies from programs described in this
section. Nothing in this section allows religious organizations to
discriminate in employment practices on the basis of race, age, color, sex
or national origin.
F. Except as otherwise provided by law, a religious organization shall
not discriminate against a person in regard to rendering assistance funded
under any program described in this section on the basis of religion, a
religious belief or refusal to participate in a religious practice, or on
the basis of race, age, color, sex or national origin.
G. Except as provided in subsection H, any religious organization that
contracts to provide goods, services or assistance funded under any program
is subject to the same rules as other contractors to account in accordance
with generally accepted auditing principles for the use of the monies
provided under the program.
H. If a religious organization segregates public monies provided under
these programs into separate accounts, only the programs funded by financial
assistance provided with these monies are subject to financial and
I. Appeals from the decisions of the head of a state agency, board or
commission may be made to the director of the department of administration
in accordance with the rules of procedure adopted by the director pursuant
to chapter 23, article 9 of this title to resolve bid protests.
J. A religious organization whose rights have been violated under this
section may assert that violation as a claim or defense in an administrative
proceeding or a judicial proceeding once all administrative remedies have
been exhausted and obtain appropriate relief, including injunctive relief
and compensatory damages. A religious organization that prevails in an
action to enforce this section may seek to recover attorney fees and costs
pursuant to section 12-348.
K. No monies provided directly to institutions or organizations to
provide services and administer programs under this section may be spent for
sectarian worship, instruction or proselytization. This subsection does not
apply to the contracting for the services of chaplains by a public body.
L. For the purposes of this section:
1. "Exercise of religion" has the same meaning prescribed in section
2. "Public body" means state agencies, boards and commissions and
political subdivisions of this state.