A Christian camp is settling its lawsuit against Colorado after the state granted it an exemption from new licensing rules that would have forced it to let attendees use bathrooms and sleeping facilities “consistent with their gender identity.”

The camp, IdRaHaJe, short for “I’d Rather Have Jesus,” filed a lawsuit in federal court in May over the licensing requirement. IdRaHaJe said that failure to comply with the regulation could lead to fines or put at risk its ability to operate. 

In a statement Wednesday, a conservative law firm, the Alliance Defending Freedom, said that as part of the settlement, Colorado “agreed not to take any enforcement action against Camp IdRaHaJe for violation of the gender identity requirements.” The state also issued a clarifying memo that stated that “churches, synagogues, mosques, or any other place that is principally used for religious purposes” are exempt from the regulation.

A lawyer for ADF, Andrea Dill, said, “Government officials should never put a dangerous ideology ahead of kids.”

“State officials must respect religious ministries and their beliefs about human sexuality; they can’t force a Christian summer camp to violate its convictions. We’re pleased that Camp IdRaHaJe is again free to operate as it has for more than 75 years: as a Christian summer camp that accepts all campers without fear of being punished for its beliefs,” she said. 

The executive director of the Department of Early Childhood, Lisa Roy, said in a statement that the state never took any action against the camp. She also insisted that it was “never under a threat of closure.”

IdRaHaJe filed its lawsuit after it sought an exemption from the requirement to renew its license ahead of its opening date. While the state offers “individualized exemptions” for “any rule or standard” that would impose an “undue hardship,” it initially rejected the Christian camp’s request for one.

The camp said the regulation was forcing it to “choose between upholding its Biblical beliefs about biological sex and risk losing its license or abandoning its beliefs and mission by forcing girls and boys to shower, dress, and share sleeping quarters with campers of the opposite sex.”

The lawsuit pointed out that the Department of Early Childhood conducts annual inspections of “each licensed organization’s facilities and operations to ensure compliance with state requirements,” which it said could lead to the state revoking its license if it was determined that the camp was not complying with the regulations.