Second Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 16-0145.01 Esther van Mourik x4215HOUSE BILL 16-1123 HOUSE SPONSORSHIP Klingenschmitt, Humphrey, Everett, Saine, Buck, Van Winkle, Windholz, Neville P., Lundeen, Brown, Joshi, Nordberg, Priola, Willett SENATE SPONSORSHIP Lundberg, Grantham, Holbert, Lambert, Neville T. House Committees Senate Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning an exemption from public accommodations law requirements for certain religiously affiliated persons. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Section 2 of the bill grants an exemption to clergy, ministers, and religiously affiliated organizations from any requirement to participate in religious or other ceremonies, including marriage, that would conflict with their sincerely held religious beliefs. The bill does this by amending the public accommodations laws to specify that for the purpose of the solemnization of any marriage or religious ceremony or for providing services, accommodations, facilities, goods, or privileges related to the solemnization of any marriage or religious ceremony, "place of public accommodation" does not include a place principally used by a religious organization, an organization supervised or controlled by a religious organization, or an organization with a connection to a religious organization. Section 2 of the bill further amends the public accommodations laws to specify that for the purpose of the solemnization of any marriage or religious ceremony or for providing services, accommodations, facilities, goods, or privileges related to the solemnization of any marriage or religious ceremony, "person" does not include a clergy member, a minister, or an individual acting within the scope of his or her employment with a religious organization, an organization supervised or controlled by a religious organization, or an organization with a connection to a religious organization. The bill specifies that a refusal to provide services by a clergy member, a minister, or an individual associated with a religious organization is not the basis for a civil or criminal action or any other action by this state or political subdivision of this state. Section 3 of the bill amends the city and county sales tax ordinance laws to require a city and county to include the state exemption for charitable organizations in their sales tax ordinances. Sections 4 through 7 of the bill specify in certain tax laws that the tax exempt status of an organization exempt from taxation under federal tax law may not be withheld if the organization, or an employee acting within the scope of that employment, chooses not to solemnize any marriage or religious ceremony or provide services, accommodations, facilities, goods, or privileges for a purpose related to the solemnization of any marriage or religious ceremony if the action would cause the organization to violate a sincerely held religious belief. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) Section 4 of article II of the Colorado constitution states that "No person shall be required to attend or support any ministry or place of worship, religious sect or denomination against his consent." Despite this clear language, clergy members, ministers, and individuals associated with religious organizations are not protected under existing law. This act is therefore necessary to protect the interests of the clergy members, ministers, and individuals associated with religious organizations in Colorado who do not wish to act against his or her consent. (b) During the April 2015 oral argument in Obergefell v. Hodges, 135 S. Ct. 2584 (2015), solicitor general Donald B. Verrilli, Jr., admitted that if the United States supreme court found a constitutional right to same-sex marriage, the decision in the 1983 Bob Jones University v. United States, 461 U.S. 574 (1983), case revoking federal tax-exempt status to a Christian university that banned interracial dating is "certainly going to be an issue". This act is therefore necessary to protect the tax status of religious organizations in Colorado. SECTION 2. In Colorado Revised Statutes, 24-34-601, amend (1); and add (1.5) as follows: 24-34-601. Discrimination in places of public accommodation - definition. (1) As used in this part 6, "place of public accommodation" means any place of business engaged in any sales to the public and any place offering services, facilities, privileges, advantages, or accommodations to the public, including but not limited to any business offering wholesale or retail sales to the public; any place to eat, drink, sleep, or rest, or any combination thereof; any sporting or recreational area and facility; any public transportation facility; a barber shop, bathhouse, swimming pool, bath, steam or massage parlor, gymnasium, or other establishment conducted to serve the health, appearance, or physical condition of a person; a campsite or trailer camp; a dispensary, clinic, hospital, convalescent home, or other institution for the sick, ailing, aged, or infirm; a mortuary, undertaking parlor, or cemetery; an educational institution; or any public building, park, arena, theater, hall, auditorium, museum, library, exhibit, or public facility of any kind whether indoor or outdoor. "Place of public accommodation" shall does not include a church, synagogue, mosque, or other place that is principally used for religious purposes, and for the purpose of the solemnization of any marriage or religious ceremony or for providing services, accommodations, facilities, goods, or privileges related to the solemnization of any marriage or religious ceremony, does not include a place principally used by a religious organization, an organization supervised or controlled by a religious organization, or an organization with a connection to a religious organization. (1.5) As used in this part 6, for the purpose of the solemnization of any marriage or religious ceremony or for providing services, accommodations, facilities, goods, or privileges related to the solemnization of any marriage or religious ceremony, "person" does not include a clergy member, a minister, or an individual acting within the scope of his or her employment with a religious organization, an organization supervised or controlled by a religious organization, or an organization with a connection to a religious organization. A refusal to provide services, accommodations, facilities, goods, or privileges by a clergy member, a minister, or an individual acting within the scope of his or her employment with a religious organization, an organization supervised or controlled by a religious organization, or an organization with a connection to a religious organization is not the basis for a civil or criminal cause of action or any other action by the state or a political subdivision of the state. SECTION 3. In Colorado Revised Statutes, 29-2-105, repeal (1) (d) (I) (E); and add (11) as follows: 29-2-105. Contents of sales tax ordinances and proposals - repeal. (1) The sales tax ordinance or proposal of any incorporated town, city, or county adopted pursuant to this article shall be imposed on the sale of tangible personal property at retail or the furnishing of services, as provided in paragraph (d) of this subsection (1). Any countywide or incorporated town or city sales tax ordinance or proposal shall include the following provisions: (d) (I) A provision that the sale of tangible personal property and services taxable pursuant to this article shall be the same as the sale of tangible personal property and services taxable pursuant to section 39-26-104, C.R.S., except as otherwise provided in this paragraph (d). The sale of tangible personal property and services taxable pursuant to this article shall be subject to the same sales tax exemptions as those specified in part 7 of article 26 of title 39, C.R.S.; except that the sale of the following may be exempted from a town, city, or county sales tax only by the express inclusion of the exemption either at the time of adoption of the initial sales tax ordinance or resolution or by amendment thereto: (E) The exemption for sales by a charitable organization specified in section 39-26-718 (1) (b), C.R.S.; (11) Notwithstanding any provision of this section to the contrary, a statutory or home rule city and county, city, or county may not withhold the tax exempt status of a church, synagogue, mosque, or other place that is principally used for religious purposes, or of an organization exempt from taxation under sections 39-3-106 and 39-26-718, C.R.S., or section 501 (c) (3) of the federal "Internal Revenue Code of 1986", as amended, if the organization, or an employee acting within the scope of that employment, chooses not to solemnize any marriage or religious ceremony or provide services, accommodations, facilities, goods, or privileges for a purpose related to the solemnization of any marriage or religious ceremony if the action would cause the organization to violate a sincerely held religious belief. SECTION 4. In Colorado Revised Statutes, 39-3-106, add (4) as follows: 39-3-106. Property - religious purposes - exemption - legislative declaration. (4) Notwithstanding any provision of this section to the contrary, the tax exempt status of property described in subsection (1) of this section, and the tax exempt status of property owned by an organization exempt from taxation under section 501 (c) (3) of the federal "Internal Revenue Code of 1986", as amended, may not be withheld if the organization, or an employee acting within the scope of that employment, chooses not to solemnize any marriage or religious ceremony or provide services, accommodations, facilities, goods, or privileges for a purpose related to the solemnization of any marriage or religious ceremony if the action would cause the organization to violate a sincerely held religious belief. SECTION 5. In Colorado Revised Statutes, add 39-21-102.5 as follows: 39-21-102.5. Religious freedom. Notwithstanding any provision of this article to the contrary, including the scope of the article set forth in section 39-21-102, the tax exempt status of a church, synagogue, mosque, or other place that is principally used for religious purposes, or of an organization exempt from taxation under section 39-26-718 or section 501 (c) (3) of the federal "Internal Revenue Code of 1986", as amended, may not be withheld if the organization, or an employee acting within the scope of that employment, chooses not to solemnize any marriage or religious ceremony or provide services, accommodations, facilities, goods, or privileges for a purpose related to the solemnization of any marriage or religious ceremony if the action would cause the organization to violate a sincerely held religious belief. SECTION 6. In Colorado Revised Statutes, 39-26-102, amend (2.5) as follows: 39-26-102. Definitions. As used in this article, unless the context otherwise requires: (2.5) "Charitable organization" means any entity organized and operated exclusively for religious (such as a church, synagogue, mosque, or other place principally used for religious purposes), charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office, or any veterans' organization registered under section 501 (c) (19) of the "Internal Revenue Code of 1986", as amended, for the purpose of sponsoring a special event, meeting, or other function in the state of Colorado so long as such event, meeting, or function is not part of such organization's regular activities in the state. Notwithstanding any provision of this subsection (2.5) to the contrary, the tax exempt status of an organization exempt from taxation under section 39-26-718 or section 501 (c) (3) of the federal "Internal Revenue Code of 1986", as amended, may not be withheld if the organization, or an employee acting within the scope of that employment, chooses not to solemnize any marriage or religious ceremony or provide services, accommodations, facilities, goods, or privileges for a purpose related to the solemnization of any marriage or religious ceremony if the action would cause the organization to violate a sincerely held religious belief. SECTION 7. In Colorado Revised Statutes, 39-26-718, add (2) as follows: 39-26-718. Charitable organizations - association or organization of parents and teachers of public school students. (2) Notwithstanding any provision of this section to the contrary, the tax exempt status of an organization exempt from taxation under this section or under section 501 (c) (3) of the federal "Internal Revenue Code of 1986", as amended, may not be withheld if the organization, or an employee acting within the scope of that employment, chooses not to solemnize any marriage or religious ceremony or provide services, accommodations, facilities, goods, or privileges for a purpose related to the solemnization of any marriage or religious ceremony if the action would cause the organization to violate a sincerely held religious belief. SECTION 8. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 10, 2016, if adjournment sine die is on May 11, 2016); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.