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The Legal Regulation of Religious Groups
Published online by Cambridge University Press: 16 February 2009
Abstract
Although much legal scholarship discusses the meaning of the religion clauses of the U.S. Constitution, very few articles analyze the ways in which state regulation affects actors' incentives to engage in religious behavior. Yet the question of how a law influences religious behavior is important for determining whether various laws are desirable, and whether they violate constitutional constraints. This article draws on recent economic models of religious organization to analyze the ways in which laws affect the behavior of religious groups. Religious groups produce collective goods for their members, and the effect of laws can be analyzed by examining how they modify the payoffs members receive for cooperating or free riding. The article examines the use of laws to establish religious groups, to subsidize them with cash or tax benefits, to provide accommodations for them, to provide symbolic support for them, to provide secular substitutes for the collective goods they produce, and to regulate disputes between members. The article also briefly discusses the constitutional implications of the analysis.
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References
1. These phenomena—the interaction of nonlegal and legal controls—are of recurring interest to legal academics; most recently, see, e.g., Special Issue, Mediting Institutions: Beyond the Public/Private Distinction, 61 U. Chi. L. Rev. 1213 (1994)Google Scholar; Symposium, , Law, Economics, and Norms, 144 U. Pa. I. Rev. 16–13 (1996).Google Scholar
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4. Their rare claims about the behavioral consequences of legal action are rarely persuasive, indeed, are impossible to evaluate. “In the aggregate … it seems likely thai adoption of [the ‘no endorsement’ principle] would create incentives that would intensify religious conflicts.” Smith, S. D., Symbols, Perception, and Doctrinal Illusions: Establishment Neutrality and the “No Endorse-ment” Test, 86 Mich. L. Rev. 266, 305 (1987).CrossRefGoogle Scholar “[R]eligion-specific policies promote the concept of religion as an interest, looking after the tangible concerns of its members, rather than acting as a force for moral good.” Lupu, I. C., Reconstructing the Establishment Clause: The Case Against Discretionary Accommodation of Religion, 140 U. Pa. L. Rev. 555, 597 (1991).CrossRefGoogle Scholar “[C]onfrontations between government and religious institutions may force both institutions to think in more sustained anil focused ways about their own commitments.” Tushnet, M., The Rhetoric of the Free Exercise Doctrine, 1993 Byu L. Rev. 117, 130.Google Scholar If the Supreme Court adopted the doctrine of formal neutrality and legislatures did not produce accommodations, “religious practice would be pressured toward homogeneity by the sheer pervasiveness of modern regulation.” Laycock, D.. The Remnants of Free Exercise, 1990 Sup. Ct. Rev. 1, 56.Google Scholar State designation of an official religious faith would produce “caste-based factions.” Eisgruber, C L., Political Unity and the Power of Government, 41 UCLA L, Rev. 130–1, 1312 (1994).Google Scholar
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The contribution of this article to the economic literature on religions groups consists of its attempt to incorporate legal questions into the analysis in a systematic way. Most of the existing literature focuses on such questions as whether religious groups are efficient, what private or social purposes they might serve, and how they overcome problems of cooperation and coordination. Aside from some articles on establishment and aside from a few passing references to legal issues, which will be discussed infra, the articles do not say much about legal regulation.
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15. “The law has grasped the paradox that freedom should include the freedom to enter into enforceable contracts; it seems to overlook the need that people often have, and perhaps the right they should have, to constrain their own behavior for their own good.” Schelling, T. C., Choice and Consequence 103 (1984)Google Scholar; see generally id. at 57–112. The best explanation, as Schelling acknowledges, is that courts seem unsuited for the difficult, information-sensitive task of forcing people to adhere to personal commitments. But that docs not bar the state from playing a useful role. If self-commitment is a good, a utilitarian state should promote it, and it can by subsidizing institutions, such as religious groups, that enforce self-commitment more sensitively and accurately than courts can.
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18. For a discussion of the literature on the relationship between religious affiliation and deviant behavior. See Cochran, J. K. and Akers, R. L., Beyond Hellfire: An Exploration of the Variable Effects of Religiosity on Adolescent Marijuana and Alcohol Use, 26 J. Res. Crime and Delinquency 198 (1989).CrossRefGoogle Scholar This study finds statistical support for the hypothesis that religious youth use marijuana and alcohol less than irreligious youth; more generally, the authors conclude that “religiosity is inversely related to delinquent behavior.” Id. at 221. See also Welch, M. R., Tittle, C. R., and Petee, T., Religion and Deviance among Adult Catholics: A Test of the “Moral Communities” Hypothesis, 30 J. Scientific Study Religion 159 (1991)CrossRefGoogle Scholar (religiosity of adult Catholics is inversely related to propensity to engage in drinking, tax evasion, and personal use of an employer's property); Francis, L.J., The Influence of Religion, Gender, and Social Class on Attitudes Toward School Among 11-Year-Olds in England, 60 J. Experimental Edu. 339 (1992)CrossRefGoogle Scholar (positive relation between religiosity and positive altitude about school): Ross, L.E., Religion and Deviance: Exploring the in Imtact of Social Control Elements, 14 Soc. Spectrum 65 (1994)CrossRefGoogle Scholar; Lipford, J., McCormick, R. E., and Tollison, R. D., Preaching Matters, 21 J. Econ. Beh. and Org. 235 (1993)CrossRefGoogle Scholar; but see Cocbran, J. K., Wood, P. B. and Arneklev, B. J., Is the Religiosity-Delinquency Relationship Spurious?, 31 J. Res. Crime & Delinquency 92 (1994).CrossRefGoogle Scholar
19. On the moral effects of religious groups, see Morgan, S. P., A Research Note on Religion and Morality: Are Religious People Nice People?, 61 Soc. Forces 683 (1983)CrossRefGoogle Scholar (claiming positive relation between religiosity and pro-social morality).
20. A related idea is that religious groups permit intergenerational contracts. Gary Becker notes that the child and the parent would be better off if the parent could agree to invest in the child's human capital in return for a promise from the child to pay for the parent's old-age care. Naturally, no such contract could be made, let alone enforced by courts; and Becker suggests that public education, on the one hand, and Social Security, on the other, provide a rough substitute for the contract See Becker, G., A Treatise on the Family 367 (enlarged ed. 1991).Google Scholar But even without the involvement of the state, a religious group could serve a similar function. In effect, the parent invests in the child and, by entering the child into the religion, extracts a fair guarantee of return payment in the form of old-age care, resulting from the child's religiously-induced loyalty. More directly, religious groups often provide services to the elderly as well as education to children. Judaism emphasizes an obligation to respect and aid the old. Christian groups support and operate old-age institutions. However, other religious groups, such as Islamic and Buddhist groups, do not put special emphasis on the needs of the elderly. See Reynolds, and Tanner, , supra note 16, at 200–03.Google Scholar
21. Religious groups have played leading roles in every great social movement, including abolition of slavery, temperance, and civil rights. Fora discussion of the moral role of religious groups in secular politics, see Reichley, A. J., Religion in American Public Life 350–59 (1985).Google Scholar On the importance of social action to many members of religious groups, and their reliance on religious groups as means, see Bellah, et al. , supra note 2 at 228–32, 239–40.Google Scholar
22. Biddle estimates that religious groups devote 29 percent of their expenditures on philanthropic activities, including activities that benefit both the non-poor and the poor. He estimates that religious groups spend about $1.43 billion on welfare-type assistance to the poor in the United Suites. They spend about $1.26 billion on aid to people overseas (but not all of this is relief). Religious groups spend about $4 billion on social services, although some portion of this benefits members. They donate $2.6 billion to other organizations, some of which must be aid agencies. Finally, religious groups are frequent and important providers of disaster relief. See Biddle, , supra note 2, at 115–19.Google Scholar
Congregations report supporting the following secular activities, for example: day care (30.8%); housing/shelter for homeless (32.5%); relief abroad (71.4%); institutional care (hospitals, clinics, nursing homes, hospices) (56.2%); elementary education (37.6%); improvement of environmental quality (26.9%). Independent Sector, From Belief to Commitment: The Activities and Finances of Religious Congregations in the United States 18 (1988).Google Scholar
23. Compare the models in Greeley, A. M., Religious Change in America 123 (1989)Google Scholar; Hull, and Bold, , supra note 13, at 8ff.Google Scholar
24. Small sects often ensure mutual aid through communal living. See Knnter, R. M., COmmttment and Community (1972).Google Scholar Other groups, such as the Amish, allow private property, but have rigorous mutual insurance systems. See Ferrara, P. J., Social Security and Taxes, in The Amish and the State 127–28Google Scholar (Kraybill, D. B. ed. 1993Google Scholar). More mainstream religious groups often provide aid to poorer members (i.e., wealthier members appear to subsidize poorer members) and provide aid to members who suffer financial misfortune. See Riddle, , supra note 2, at 114.Google Scholar
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26. The Githolic Church runs the most extensive system of religious schools, but other religious groups operate schools as well. Catholic school educations are superior to public educations, even controlling for the backgrounds of students. See Coleman, J. S., Hoffer, T., and Kilgore, S., High School Achievement: public, Catholic, and Private Schools Compared (1982).Google Scholar
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29. See Wallis, , supra note 9, at 63ff.Google Scholar One might argue that attending services, for example, or even paying a tithe is not really a “cost” because the member derives pleasure from performing these duties. But so long as every demand on the resources of a member docs not align with the member's private desires, one can point to “costs.”
30. Religious groups sometimes charge, in effect, membership fees. Synagogues usually charge a fee, sometimes amounting to hundreds of dollars per year. Many religious groups, such as the Mormons and many fundamentalist Protestant sects, charge the Biblical tithe. More mainline Christian groups have in the past raised money by renting pew to congregation members, but more recently they have relied on voluntary donations. Some sects require large lump-sum payments, including donation of the member's personal property. And almost all members of religious groups must suffer the opportunity costs of spending time at services, meetings, social activities, pilgrimages (such as the Muslim once-per-lifetime pilgrimage to Mecca), and other events if and when they have other things that they would rather do. See Caplow, , supra note 2, at 84–86, 309Google Scholar (working-class families in sample contributed 3.3% of their income to churches).
31. On the closely analogous problem of opportunism in long-term contracts, see, e.g., Williamson, O. E.. The Economic Institutions of Capitalism (1985)Google Scholar; Goetz, C. and Scott, R., Principles of Relational Contracts, 67 Va. L. Rev. 1089 (1981).CrossRefGoogle Scholar
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51. This argument is a more formal version of Madison's view that close relations with the state corrupt churches. See Drakeman, D. L., Religion and the Republic: Madison and the First Amendment 238Google Scholar, in James Madison and Religious Liberty (Alley, R. S. ed. 1985Google Scholar) (quoting Madison's “Detached Memoranda”). It is illustrated by Howe's discussion of the ways in which American states in the 19th century injured religious groups that they attempted to support. The states felt compelled by logic and politics to impose (democratic) organizational requirements on the congregations that they supported, but these requirements interfered with the ability of the congregations to choose and maintain the optimal organizational structures. See Howe, M. DeW., The Garden and the Wilderness 32ff. (1965).Google Scholar
52. In post-revolutionary Massachusetts, for example, local governments provided financial support to the local church that enjoyed the adherence of a majority of the residents of the parish. See Howe, , supra note 51, at 32–11.Google Scholar
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57. See, e.g., Church of the Lukumi Babalu Aye, Inc. v. Hialeah, 508 U.S. 520 (1993)Google Scholar (striking down public health law that prohibited ritual sacrifice of animals).
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65. This is a theme in the literature on accommodations. For example, compare McConnell, , supra note 64, at 736–38Google Scholar (arguing that accommodations can be administered fairly) with Gey, S. G., Why Is Religion Special?: Reconsidering the Accommodation of Religion Under the Religion Clauses of the First Amendment, 52 U. Pitt. L. Rev. 75. 185–86 (1990)Google Scholar (arguing that accommodations cannot be administered fairly). See also Smith, 494 U.S. at 888–90 and n.5 (similar).Google Scholar
66. See, e.g., Allegheny County v. ACLU, 492 U.S. 573 (1989).Google Scholar
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68. For a more extensive discussion, see Posner, , supra note 11.Google Scholar
69. See text accompanying supra notes 12–17.
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71. Following dc Tocqueville, Bellah argues that in the United States religious groups are essential for inculcating civic virtue (and that civic virtue is necessary to a just and stable democracy). See Bellah, , IntroductionGoogle Scholar, in Varieties of Civil Religion, supra note 70. He thus assumes that religion and civil religion are complements, rather than substitutes, as I assume.
72. On the idea or the civil religion as a substitute for Christianity, see Demerath, N.J. III and Hammond, P. E., Religion in Social Context 202–12 (1969).Google Scholar
73. See supra note 50.
74. Consider laws against prostitution, pornography, adultery, sodomy, fornication, drug use, obscenity, the purchase or consumption of alcohol, cruelly to animals, and other laws that cannot be given a plausible liberal justification (in the sense of protecting people's rights not to be coerced), but appear to prohibit conduct entirely on the basis of its supposed immorality.
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77. See text accompanying supra note 24.
78. A recent bill proposed in Congress allows stales to transfer money from federal welfare block grants to private religious organizations for charitable purposes. The bill prohibits groups from refusing aid to recipients on religious grounds and from using the money to proselytize. See Novak, V., Fight Looms Over Welfare Provisions That Funnel Aid Through Churches, Wall. St. J., 09 7, 1955, at A16.Google Scholar
79. There have been attempts to measure this; see Biddle, , supra note 2.Google Scholar
80. See text accompanying supra notes 27–28.
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86. This is not true if the group's norms are suboptimal and courts are able to choose superior norms, but this seems particularly unlikely when talking about religious groups. Cf. Posner, E. A., Law, Economics, and Inefficient Norms, 144 U. Pa. L. Rev. 1697 (1996)CrossRefGoogle Scholar (discussing conditions under which group norms can be expected to harm members).
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88. This is not necessarily the case. In United Kosher Butchers Ass'n v. Associated Synagogues of Greater Boston, Inc., 211 N.E.2d 332 (Ma. 1965)Google Scholar, some Jewish businesses allegedly tried to corner the market in certain kosher products, and obtained from some rabbis a condemnation of a competitor's goods as inconsistent with Jewish law. If such behavior occurred, it coultl easily have been the kind of high-value opportunism that a group's sanctions are too weak to deter. Even in this case, however, the court refused to intervene on evidentiary grounds, possibly fearful of substituting its judgment for that of the group.
89. Paul v. Watchtower Bible and Tract Soc. of New York, Inc., 819 F.2d 875 (9th Cir. 1987).Google Scholar
90. Grunwald, v. Bornfreund, , 696 F. Supp. 838 (E.D.N.Y. 1988).Google Scholar
91. Brown v. Mt Olive Baptist Church, 124 N.W.2d 445 (la. 1903).Google ScholarSee also cases involving removal of leaders and removal of teachers, e.g., Miller v. Catholic Diocese of Great Falls, Billings, 728 P.2d 794 (Mt. 1986).Google Scholar
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94. Guinn v. Church of Christ of Collinsville, 775 P.2d 7GG (Okla 1989).Google Scholar
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98. This was the approach of Georgia law approved by ihe majority in Jones. 443 U.S. at 599–601.Google Scholar
99. This was the approach of the dissent in Jones. see 443 U.S. at 618–20.Google Scholar
100. This analysis thus converges with Ellman's contractual analysis for schism cases, but argues that what he calls the hands-off approach (and which he rejects) is appropriate for ostracism cases. See Ellman, , supra note 85.Google ScholarSee also Laycock, D., Towards a General Theory of the Religion Clauses: The Case of Cliurrh labor Relations and the Right to Church Autonomy, 81 Colum. L. Rev. 1373, 1403–05 (1981)CrossRefGoogle Scholar; Mansfield, J. H., The Religion Clauses of the first Amendment and the Philosophy of Hie Constitution, 72 Calif. L Rev. 847, 863–68 (1984)CrossRefGoogle Scholar; Gedicks, F. M., Toward a Constitutional Jurisprudence of Religious Groups Rights, 1989 Wisc. L. Rev. 99 (and cites therein).Google Scholar
101. U.S. Const, amend. I.Google Scholar
102. On the historical fear of religious influence on state action, see Howe, , supra note 51, at 62ff.Google Scholar
103. Many religious groups deny that receiving wealth or power from the state is a good thing, because it limits their ability to criticize the state. See Hargrove, , supra note 10, at 259.Google Scholar But they do not seem to object to tax benefits and accommodations, so the analysis is relevant.
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105. A statutory analogue of this phenomenon is the lobbying restriction on nonprofit organizations, including religious groups, that receive tax exemptions. See 26 U.S.C § 501(c)(3) (1988 & Supp. 1995)Google Scholar; Wuthnow, and Nass, , supra note 67, at 162.Google Scholar Totalitarian states often suppress religious groups, probably calculating that the risks posed by the groups' ability to obtain political power outweigh any gains.
106. Compare the secularism of Lupu, which would not allow states to compensate religious groups for the benefits they confer, and the accommodationist approach of McConncll, which would allow states to promote religious groups, regardless of benefits conferred, so long as the encouragement is nondiscriminatory. See, e.g., McConnell, , supra note 64Google Scholar; Lupu, , supra note 4.Google Scholar
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108. U.S. CONST, amend. V.Google Scholar
109. U.S. CONST, amend. I.Google Scholar
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