[House Report 105-368]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-368
_______________________________________________________________________


 
        ESTABLISHMENT OF 2,500 BOYS AND GIRLS CLUBS BEFORE 2000

                                _______
                                

October 31, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Hyde, from the Committee on the Judiciary, submitted the following

                              R E P O R T

                        [To accompany H.R. 1753]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 1753) to provide for the establishment of not less 
than 2,500 Boys and Girls Clubs of America facilities by the 
year 2000, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                           TABLE OF CONTENTS

                                                                   Page
The Amendment....................................................     1
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     3
Hearings.........................................................     4
Committee Consideration..........................................     4
Vote of the Committee............................................     4
Committee Oversight Findings.....................................     4
Committee on Government Reform and Oversight Findings............     4
New Budget Authority and Tax Expenditures........................     4
Congressional Budget Office Estimate.............................     5
Constitutional Authority Statement...............................     6
Section-by-Section Analysis and Discussion.......................     6
Changes in Existing Law Made by the Bill, as Reported............     7

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. 2,500 BOYS AND GIRLS CLUBS BEFORE 2000.

    (a) In General.--Section 401(a) of the Economic Espionage Act of 
1996 (42 U.S.C. 13751 note) is amended by striking paragraph (2) and 
inserting the following:
          ``(2) Purpose.--The purpose of this section is to provide 
        adequate resources in the form of seed money for the Boys and 
        Girls Clubs of America to establish 1,000 additional local 
        clubs where needed, with particular emphasis placed on 
        establishing clubs in public housing projects and distressed 
        areas, and to ensure that there are a total of not less than 
        2,500 Boys and Girls Clubs of America facilities in operation 
        not later than December 31, 1999.''.
    (b) Accelerated Grants.--Section 401 of the Economic Espionage Act 
of 1996 (42 U.S.C. 13751 note) is amended--
          (1) in subsection (b)(2), by striking ``or rural'' and all 
        that follows through the end and inserting the following: 
        ``rural area, or Indian reservation with a population of high 
        risk youth as defined in section 517 of the Public Health 
        Service Act (42 U.S.C. 290bb-23) of sufficient size to warrant 
        the establishment of a Boys and Girls Club.''; and
          (2) by striking subsection (c) and inserting the following:
    ``(c) Establishment.--
          ``(1) In general.--For each of the fiscal years 1997, 1998, 
        1999, 2000, and 2001, the Director of the Bureau of Justice 
        Assistance of the Department of Justice shall make a grant to 
        the Boys and Girls Clubs of America for the purpose of 
        establishing and extending Boys and Girls Clubs facilities 
        where needed, with particular emphasis placed on establishing 
        clubs in and extending services to public housing projects and 
        distressed areas.
          ``(2) Applications.--The Attorney General shall accept an 
        application for a grant under this subsection if submitted by 
        the Boys and Girls Clubs of America, and approve or deny the 
        grant not later than 90 days after the date on which the 
        application is submitted, if the application--
                  ``(A) includes a long-term strategy to establish 
                1,000 additional Boys and Girls Clubs and detailed 
                summary of those areas in which new facilities will be 
                established, or in which existing facilities will be 
                expanded to serve additional youths, during the next 
                fiscal year;
                  ``(B) includes a plan to ensure that there are a 
                total of not less than 2,500 Boys and Girls Clubs of 
                America facilities in operation before January 1, 2000;
                  ``(C) certifies that there will be appropriate 
                coordination with those communities where clubs will be 
                located; and
                  ``(D) explains the manner in which new facilities 
                will operate without additional, direct Federal 
                financial assistance to the Boys and Girls Clubs once 
                assistance under this subsection is discontinued.''.
    (c) Role Model Grants.--Section 401 of the Economic Espionage Act 
of 1996 (42 U.S.C. 13751 note) is amended by adding at the end the 
following:
    ``(f) Role Model Grants.--Of amounts made available under 
subsection (e) for any fiscal year--
          ``(1) not more than 5 percent may be used to provide a grant 
        to the Boys and Girls Clubs of America for administrative, 
        travel, and other costs associated with a national role-model 
        speaking tour program; and
          ``(2) no amount may be used to compensate speakers other than 
        to reimburse speakers for reasonable travel and accommodation 
        costs associated with the program described in paragraph 
        (1).''.

                          Purpose and Summary

    H.R. 1753 would amend a provision enacted as part of the 
``Economic Espionage Act of 1996'' (P.L. 104-294), which 
authorized $100 million in federal seed money over five years 
to establish an additional 1,000 Boys and Girls Clubs in public 
housing and distressed areas throughout the country. As of 
1996, there were 1,800 Boys and Girls Clubs facilities in the 
United States. H.R. 1753 would make several administrative 
changes to current law, streamlining the application process 
for the clubs and ensuring that at least 2,500 facilities are 
established by the year 2000.
    H.R. 1753 directs the Attorney General to accept and 
approve applications for such grants submitted by BGCA if the 
application: (1) includes a long-term strategy to establish 
1,000 additional clubs and a detailed summary of those areas in 
which new facilities will be established or existing facilities 
expanded to serve additional youths during the next fiscal 
year; (2) includes a plan to insure that there are a total of 
not less than 2,500 BGCA facilities in operation before January 
1, 2000; (3) certifies that there will be appropriate 
coordination with those communities where clubs will be 
located; and (4) explains the manner in which new facilities 
will operate without additional, direct federal financial 
assistance. The bill also earmarks specified funds to provide a 
grant to BGCA for administrative, travel, and other costs 
associated with a national role-model speaking tour program.

                Background and Need for the Legislation

    H.R. 1753 would amend a provision enacted as part of the 
``Economic Espionage Act of 1996'' (P.L. 104-294) which 
authorized $100 million in federal seed money over five years 
to establish an additional 1,000 Boys and Girls Clubs in public 
housing and distressed areas throughout the country. H.R. 1753 
would make several administrative changes to current law, 
streamlining the application process for the clubs, and 
permitting a small amount of the funds to be used to establish 
a role model speakers' program to encourage and motivate young 
people nationwide.
    The primary purpose of this program is to ensure that at 
least 2,500 Boys and Girls Clubs facilities are established by 
the year 2000. Because this goal is expected to be realized 
through the existing authorization from the ``Economic 
Espionage Act 1996,'' H.R. 1753 does not require new federal 
spending.
    Officially founded in 1906, Boys and Girls Clubs of America 
(BGCA) has grown from 53 local clubs to more than 1,800 active 
club facilities in metropolitan and rural areas, as well as 
Indian reservations, in all 50 states, the District of 
Columbia, Puerto Rico, and the U.S. Virgin Islands. In Fiscal 
Year 1995, through funding provided by the Department of 
Justice, the Department of Housing and Urban Development, and 
other public and private sources, the BGCA recorded serving a 
record 2.2 million youths in 1,672 clubs, 270 of which were in 
public housing. In FY1996, the Department of Justice provided 
almost $15 million to BGCA to serve an additional 195,820 
youths to bring the total number of Boys and Girls Clubs 
facilities in the United States to 1,850.
    Congress has been supportive of Boys and Girls Clubs of 
America for a number of years because it has shown itself to be 
an impressive private-sector program that makes a difference in 
the lives of young people. Boys and Girls Clubs have a 
tremendous reputation for establishing effective community 
programs that assist youth to develop into hard-working, 
caring, and law-abiding citizens. With regard to the 
effectiveness of Boys and Girls Clubs, a three-year study by 
Columbia University evaluated the effectiveness of the BGCA's 
efforts begun in 1987 to establish clubs in public housing 
communities. The study found that Boys and Girls Clubs in 
public housing reduced juvenile crime by 13 percent, decreased 
overall drug activity by 22 percent, and reduced the presence 
of crack cocaine by 25 percent. The study also found that clubs 
improved the quality of life for the children and families who 
reside in public housing. Evaluations of have shown that the 
members of Boys and Girls Clubs also do better in school and 
are less attracted to gangs.
    H.R. 1753 builds on Congress' continued efforts to ensure 
that, with federal seed money, the Boys and Girls Clubs of 
America is able to expand to serve an additional 1 million 
young people through at least 2,500 clubs by the year 2000. The 
goal of this program is to provide seed money for the 
construction and expansion--actual bricks and mortar--of Boys 
and Girls Clubs across the country. Once the clubs are open, 
they will operate without significant federal funds. The reason 
Boys and Girls Clubs have been successful and the reason 
Congress has wanted to do more for them is because they are 
locally run and dependent primarily on community involvement 
for their success. In an era where billions are being spent on 
bloated, never-ending, federally run programs, support of the 
Boys and Girls Clubs in this short-term yet significant way, 
serves as a model for the proper role of the Federal Government 
in crime prevention.

                                Hearings

    No hearings were held on H.R. 1753.

                        Committee Consideration

    On October 9, 1997, the Subcommittee on Crime met in open 
session and ordered reported the bill H.R. 1753 by voice vote, 
a quorum being present. On October 29, 1997, the Committee met 
in open session and ordered reported favorably the bill H.R. 
1753 with amendment by voice vote, a quorum being present.

                         Vote of the Committee

    There were no recorded votes on H.R. 1753.

                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

    Clause 2(l)(3)(B) of House Rule XI is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 2(l)(3)(C) of rule XI of the 
Rules of the House of Representatives, the Committee sets 
forth, with respect to the bill, H.R. 1753, the following 
estimate and comparison prepared by the Director of the 
Congressional Budget Office under section 403 of the 
Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 31, 1997.
Hon. Henry J. Hyde,
Chairman, Committee on the Judiciary,
Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1753, a bill to 
provide for the establishment of not less than 2,500 Boys and 
Girls Clubs of America facilities by the year 2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

H.R. 1753--A bill to provide for the establishment of not less than 
        2,500 Boys and Girls Clubs of America facilities by the year 
        2000

    Public Law 104-294 authorized appropriations of $20 million 
for each of fiscal years 1997 through 2001 to establish an 
additional 1,000 Boys and Girls Clubs facilities by the year 
2001. There were about 1,800 facilities in 1996. H.R. 1753 
would make several administrative changes to current law to try 
to ensure that at least 2,500 facilities are operating by the 
year 2000.
    Funding to date is consistent with the authorizations in 
law. The authorized amount of $20 million was appropriated for 
1997, and that amount is expected to result in an additional 
200 clubs. For fiscal year 1998, the authorized amount of $20 
million has been approved by both the House and the Senate, but 
has not yet been enacted into law.
    H.R. 1753 would not affect the authorization levels or the 
outlays for the Boys and Girls Clubs program. Therefore, CBO 
estimates that enacting this legislation would have no impact 
on the federal budget. Because the bill would not affect direct 
spending or receipts, pay-as-you-go procedures would not apply. 
H.R. 1753 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
and would impose no costs on state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Mark Grabowicz. 
This estimate was approved by Robert A. Sunshine, Deputy 
Assistant Director for Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to Rule XI, clause 2(l)(4) of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, section 8 of the Constitution.

                      Section-By-Section Analysis

    Sec. 1. 2,500 Boys and Girls Clubs before 2000. Section 1 
would amend section 401 of Title IV of the ``Economic Espionage 
Act of 1996'' (P.L. 104-294), which authorizes $100 million in 
federal seed money over five years to establish an additional 
1,000 Boys and Girls Clubs in public housing and distressed 
areas throughout the country. Section 1(a) amends section 
401(a)(2) of the ``Economic Espionage Act of 1996'' to clarify 
that the purpose of the program is to provide adequate 
resources in the form of seed money for the Boys and Girls 
Clubs of America for 1,000 additional local clubs where needed, 
with particular emphasis placed on establishing clubs in public 
housing projects and distressed areas. This provision would 
expand the availability of funds for Boys and Girls Clubs in 
areas other than public housing projects and distressed areas 
to allow Boys and Girls Clubs ``where needed.'' Particular 
emphasis shall continue to be given to public housing projects, 
where Boys and Girls Clubs have been shown to have made 
significant progress in preventing youth crime, and to 
distressed areas in rural or urban communities. Current law 
expressly provides for Boys and Girls Clubs in rural areas, but 
the provision in section 1(a) of H.R. 1753 is intended to make 
clear that not only can rural areas as well as urban areas 
qualify as distressed areas, but also that clubs ought to be 
expanded into rural areas and smaller communities where needed.
    Subsection 1(a)(2) also amends section 401(a)(2) of the 
``Economic Espionage Act of 1996,'' to ensure that there are a 
total of not less than 2,500 Boys and Girls Clubs of America 
established by the year 2000.
    Subsection 1(b) amends the definition of ``distressed 
area'' currently defined in section 401(b)(2) of the ``Economic 
Espionage Act of 1996,'' as an urban, suburban, or rural area 
with a high percentage of high risk youth as defined in section 
517 of the Public Health Service Act (42 U.S.C. 290bb-23) 
(which includes youth at risk of drug abuse, physical abuse, 
dropping out of school, teen pregnancy, juvenile delinquency, 
and other factors). Subsection 1(b) of H.R. 1753 would amend 
that definition of distressed area to include any rural or 
urban area, or Indian reservation with a population of high 
risk youth of sufficient size to warrant the establishment of a 
Boys and Girls Club. It is the view of the Committee that the 
determination to establish a club should be based on the need 
for a club. Rural communities, for example, may have a 
population of at-risk youth which would benefit from a Boys and 
Girls Club, but they may not be able to meet the ``high 
percentage of high risk youth'' requirement as required in 
current law.
    Section 1(b) also removes language in current law requiring 
Boys and Girls Clubs to make contracts with the Department of 
Housing and Urban Development, in addition to making several 
administrative changes and streamlining the application process 
for the clubs. Subsection (b) directs the Attorney General to 
accept and approve applications for such grants submitted by 
BGCA if the application: (1) includes a long-term strategy to 
establish 1,000 additional clubs and a detailed summary of 
those areas in which new facilities will be established or 
existing facilities expanded to serve additional youths during 
the next fiscal year; (2) includes a plan to insure that there 
are a total of not less than 2,500 BGCA facilities in operation 
before January 1, 2000; (3) certifies that there will be 
appropriate coordination with those communities where clubs 
will be located; and (4) explains the manner in which new 
facilities will operate without additional, direct federal 
financial assistance.
    Section 1(c) earmarks specified funds to provide a grant to 
BGCA for administrative, travel, and other costs associated 
with a national role-model speaking tour program. Not more than 
5 percent of the amount available for Boys and Girls Clubs for 
any fiscal year may be used for this program. These funds may 
not be used to compensate speakers other than to reimburse them 
for reasonable travel and accommodation costs associated with 
the role-model speaking tour program.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

           SECTION 401 OF THE ECONOMIC ESPIONAGE ACT OF 1996

SEC. 401. ESTABLISHING BOYS AND GIRLS CLUBS.

  (a) Findings and Purpose.--
          (1) * * *
          [(2) Purpose.--It is the purpose of this section to 
        provide adequate resources in the form of seed money 
        for the Boys and Girls Clubs of America to establish 
        1,000 additional local Boys and Girls Clubs in public 
        housing projects and other distressed areas by 2001.]
          (2) Purpose.--The purpose of this section is to 
        provide adequate resources in the form of seed money 
        for the Boys and Girls Clubs of America to establish 
        1,000 additional local clubs where needed, with 
        particular emphasis placed on establishing clubs in 
        public housing projects and distressed areas, and to 
        ensure that there are a total of not less than 2,500 
        Boys and Girls Clubs of America facilities in operation 
        not later than December 31, 1999.
  (b) Definitions.--For purposes of this section--
          (1) * * *
          (2) the term ``distressed area'' means an urban, 
        suburban, [or rural area with a high percentage of high 
        risk youth as defined in section 509A of the Public 
        Health Service Act (42 U.S.C. 290aa-8(f)).] rural area, 
        or Indian reservation with a population of high risk 
        youth as defined in section 517 of the Public Health 
        Service Act (42 U.S.C. 290bb-23) of sufficient size to 
        warrant the establishment of a Boys and Girls Club.
  [(c) Establishment.--
          [(1) In general.--For each of the fiscal years 1997, 
        1998, 1999, 2000, and 2001, the Director of the Bureau 
        of Justice Assistance of the Department of Justice 
        shall provide a grant to the Boys and Girls Clubs of 
        America for the purpose of establishing Boys and Girls 
        Clubs in public housing projects and other distressed 
        areas.
          [(2) Contracting authority.--Where appropriate, the 
        Secretary of Housing and Urban Development, in 
        consultation with the Attorney General, shall enter 
        into contracts with the Boys and Girls Clubs of America 
        to establish clubs pursuant to the grants under 
        paragraph (1).]
  (c) Establishment.--
          (1) In general.--For each of the fiscal years 1997, 
        1998, 1999, 2000, and 2001, the Director of the Bureau 
        of Justice Assistance of the Department of Justice 
        shall make a grant to the Boys and Girls Clubs of 
        America for the purpose of establishing and extending 
        Boys and Girls Clubs facilities where needed, with 
        particular emphasis placed on establishing clubs in and 
        extending services to public housing projects and 
        distressed areas.
          (2) Applications.--The Attorney General shall accept 
        an application for a grant under this subsection if 
        submitted by the Boys and Girls Clubs of America, and 
        approve or deny the grant not later than 90 days after 
        the date on which the application is submitted, if the 
        application--
                  (A) includes a long-term strategy to 
                establish 1,000 additional Boys and Girls Clubs 
                and detailed summary of those areas in which 
                new facilities will be established, or in which 
                existing facilities will be expanded to serve 
                additional youths, during the next fiscal year;
                  (B) includes a plan to ensure that there are 
                a total of not less than 2,500 Boys and Girls 
                Clubs of America facilities in operation before 
                January 1, 2000;
                  (C) certifies that there will be appropriate 
                coordination with those communities where clubs 
                will be located; and
                  (D) explains the manner in which new 
                facilities will operate without additional, 
                direct Federal financial assistance to the Boys 
                and Girls Clubs once assistance under this 
                subsection is discontinued.
          * * * * * * *
  (f) Role Model Grants.--Of amounts made available under 
subsection (e) for any fiscal year--
          (1) not more than 5 percent may be used to provide a 
        grant to the Boys and Girls Clubs of America for 
        administrative, travel, and other costs associated with 
        a national role-model speaking tour program; and
          (2) no amount may be used to compensate speakers 
        other than to reimburse speakers for reasonable travel 
        and accommodation costs associated with the program 
        described in paragraph (1).

                                
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