With regard for those who approach communion wearing a rainbow sash, who run for public office campaigning as Catholics but publicly support abortion legislation, live openly with a person of the same or opposite sex without benefit of marriage, notoriously exploit their workers, are heads of crime families – the priest and bishop are the ones who have the authority to judge the state of their souls and to give or withhold communion, or absolution.
Those of us in the pews must place the most charitible interpretation possible on their actions, and assume that if they receive communion that they have just confessed and been absolved of their sins (if any) and that if they are conducting themselves publicly in a manner that seems to espouse an immoral choice, then they are invincibly ignorant. In either case, lay people never have the right to judge, only the priest.
If the lay person has responsibility over such a person by reason of a service to the church, for which he receives his authority from the pastor and ultimately the bishop, that lay person exercises prudential judgement, applies the standards he has been instructed to use. This is not the same as judging the condition of someone’s soul. For instance, the DRE cannot choose someone to serve as a catechist, or the school principal cannot hire someone as a parochial school teacher, who publicly dissents by speech or manner of living from Church teaching.