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April 20 (UPI) -- The question of whether the operations of a social services arm of the Catholic Church are "religious" or merely "charitable" is going to the Wisconsin Supreme Court. The issue surrounds the Diocese of Superior's move to opt out of the state's unemployment insurance program and enroll in a church one instead.
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Under state law, nonprofit organizations in Wisconsin that operate "primarily for religious purposes" generally can be exempted from the state program. Catholic Charities Bureau wants to enroll instead in the Wisconsin Bishops' Church Unemployment Pay Program, which it says is more efficient and less costly while providing the same level of benefits as the state.
The Wisconsin Supreme Court has agreed to hear an appeal of a ruling that says CCB's work is "charitable" but not "religious," which makes it ineligible to opt out of the state program.
The state's District 3 Court of Appeals describes the work done by CCB and its nonprofit sub-entities that operate programs under its umbrella as primarily charitable aid to individuals with developmental and mental health disabilities.
"The employers provide work training programs, life skills training, in-home support services, transportation services, subsidized housing and supportive living arrangements," the appeals court decision says. "While these activities fulfill the catechism of the Catholic Church to respond in charity to those in need, the activities themselves are not primarily religious in nature."
Nick Reaves, counsel with the Becket Fund for Religious Liberty, which is representing CCB, disagrees. Even though CCB is a separate entity, it is directly controlled by the bishop and is part of the Catholic Church.
"There's no question that Catholic Charities Bureau is religious and is operated for religious purposes," Reaves told UPI. "It would be like saying the pope isn't Catholic."
Diocese of Superior Bishop James Powers said everything CCB does advances the mission of the church.
"This backbone of our diocesan ministry has, for over a century, served those who have been forgotten, ignored and pushed to the margins of society," Powers said in a news release.
The case stems from a 2015 ruling by a Douglas County Circuit Court judge that CCB sub-entity Challenge Center, which provides services to people with developmental disabilities, was operated primarily for religious purposes and was exempt from the Unemployment Compensation Act.
Four other sub-entities -- Headwaters, Barron County Developmental Services, Diversified Service and Black River Industries -- then sought the same determination from the Wisconsin Department of Workforce Development, which decided they did not qualify for the exemption.
CCB and the sub-entities sought administrative review and an administrative law judge concluded they qualified for the exemption because they were operated primarily for religious purposes. The DWD appealed to the Wisconsin Labor and Industry Review Commission, which overturned the administrative law judge's decision. After that, CCB took the case to the circuit court and won a reversal.
The DWD appealed and the Court of Appeals ruled in the department's favor in February based on its interpretation of the religious purposes exemption. CCB appealed and the Wisconsin Supreme Court said Tuesday it would take up the case.
CCB's argument is the bureau and its sub-entities are operated primarily for a religious motive or reason, which means it is "operated primarily for religious purposes," making it exempt from the Wisconsin unemployment insurance program. The motive, according to CCB, is to comply with the Catholic Church's scriptural and doctrinal mandate to serve the poor and respond in charity to those in need.
The DWD counters that whether CCB is operated primarily for religious purposes depends on if its activities -- rather than its motivation -- are primarily religious in character. In addition, the department contends the purpose of the organization should be examined, not the purpose of the church, in determining if it is exempt.
In reinstating the Labor and Industry Review Commission's decision that CCB did not qualify for the exemption, the appeals court said the motives and activities of the nonprofit must be considered to determine whether the organization is operated primarily for religious purposes.
CCB and its sub-entities have not demonstrated through their activities a primarily religious purpose, Judge Lisa Stark wrote for a three-judge panel.
"We agree with LIRC that the activities of CCB and its sub-entities are the provision of charitable social services that are neither inherently or primarily religious activities," the ruling says. "CCB and its sub-entities do not operate to inculcate the Catholic faith; they are not engaged in teaching the Catholic religion, evangelizing or participating in religious rituals or worship services with the social service participants; they do not require their employees, participants or board members to be of the Catholic faith; participants are not required to attend any religious training, orientation or services; their funding comes almost entirely from government contracts or private companies, not from the Diocese of Superior; and they do not disseminate any religious material to participants."
Eric Rassbach, vice president and senior counsel at Becket, said the ruling would punish CCB for its good deeds.
"Saying a charity is religious only if it restricts its good deeds to those of the same faith misunderstands Catholic teaching, ignores Wisconsin law and conflicts with the First Amendment of the U.S. Constitution," Rassbach said in a statement.
"We're glad that the Wisconsin Supreme Court is stepping in to review the lower court's misguided view that Catholic Charities Bureau can't participate in a Catholic unemployment assistance program because it's not coaxing the poor, the elderly and the marginalized it serves to join the faith."
