Who Owns the Kids?

LONDON (RNS) A Roman Catholic adoption agency has lost its fight for the right to continue its policy of refusing to place children with same-sex couples based on religious principles.

The decision in England rules that a Roman Catholic adoption agency can not require that adoptive parents of a child born Roman Catholic be ... Roman Catholic.    If the ruling says the State, not the Church defines who is Roman Catholic, wouldn't this violate America's First Amendment?

This decisions has incredibly deep implications.
 
The assertion of  Christians, Muslims and Jews is that their religion is transmitted to their children.   Native American Children and Jewish children were taken by the Roman Church and baptized.  This was seen by modern liberals as a form of theft. 

If the State claims it has the right to decide that a gay person or a gay couple is Catholic, what happens to the Church's right to define itself?

If the State claims that religion is not transmitted at birth, what about "race?"  

These are dangerous waters.