The following excerpt is from North Valley Baptist Church v. McMahon, 696 F. Supp. 518 (E.D. Cal. 1988):
Id. at 717-18, 101 S.Ct. at 1431-32 (holding that a state may not deny unemployment benefits due to claimants' refusal to accept employment which conflicts with religious beliefs). Just like direct compulsion, indirect compulsion achieved by the conditions attached to the receipt of government benefits is subjected to strict scrutiny under the free exercise clause. Hobbie v. Unemployment Appeals Comm'n, 480 U.S. 136, 107 S.Ct. 1046, 94 L.Ed.2d 190 (1987).14
Within this framework, plaintiffs' situation is a bit atypical since they are not voluntarily seeking aid or assistance from the government. Indeed, if it were up to plaintiffs, they would much perfer to operate without any input from the government. The state, however, has conditioned the lawful operation of a preschool upon the procurement of a license from the state. In other words, the operation of a preschool in California is a state-granted privilege to which the condition of licensure is attached. Since plaintiffs cannot acquire this privilege without subjecting themselves to a condition in violation of their beliefs, the doctrine of indirect compulsion is fully applicable. See New Life Baptist Church Academy v. Town of East Longmeadow, 666 F.Supp. 293 (D.Mass.1987) (doctrine of indirect compulsion applies where plaintiffs hold religious objection to state requirement that school submit an application for state approval).
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