[House Report 107-175] [From the U.S. Government Publishing Office] 107th Congress Rept. 107-175 HOUSE OF REPRESENTATIVES 1st Session Part 1 ====================================================================== TO EXTEND THE AUTHORIZATION OF THE DRUG-FREE COMMUNITIES SUPPORT PROGRAM FOR AN ADDITIONAL 5 YEARS, TO AUTHORIZE A NATIONAL COMMUNITY ANTIDRUG COALITION INSTITUTE, AND FOR OTHER PURPOSES _______ July 30, 2001.--Committed to the Committee of the Whole House on the State of the Union and ordered to be printed _______ Mr. Burton of Indiana, from the Committee on Government Reform, submitted the following R E P O R T [To accompany H.R. 2291] [Including cost estimate of the Congressional Budget Office] The Committee on Government Reform, to whom was referred the bill (H.R. 2291) to extend the authorization of the Drug-Free Communities Support Program for an additional 5 years, to authorize a National Community Antidrug Coalition Institute, and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. CONTENTS Page I. Purpose and Summary..............................................6 II. Need for Legislation.............................................7 III. Legislative Hearings and Committee Action........................8 IV. Oversight Findings..............................................10 V. Explanation of Bill.............................................10 VI. Section-by-Section Summary......................................21 VII. Statement of CBO Cost Estimate..................................22 VIII.Statement of Constitutional Authority...........................24 IX. Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b).....24 X. Changes in Existing Law.........................................24 XI. Congressional Accountability Act; Public Law 104-1..............28 XII. Budget Analysis.................................................28 XIII.Unfunded Mandates Reform Act; Public Law 104-4, Section 423.....28 XIV. Appendix........................................................28 The amendment is as follows: Strike all after the enacting clause and insert the following: SECTION 1. FIVE-YEAR EXTENSION OF DRUG-FREE COMMUNITIES SUPPORT PROGRAM. (a) Findings.--Congress makes the following findings: (1) In the next 15 years, the youth population in the United States will grow by 21 percent, adding 6,500,000 youth to the population of the United States. Even if drug use rates remain constant, there will be a huge surge in drug-related problems, such as academic failure, drug-related violence, and HIV incidence, simply due to this population increase. (2) According to the 1994-1996 National Household Survey, 60 percent of students age 12 to 17 who frequently cut classes and who reported delinquent behavior in the past 6 months used marijuana 52 days or more in the previous year. (3) The 2000 Washington Kids Count survey conducted by the University of Washington reported that students whose peers have little or no involvement with drinking and drugs have higher math and reading scores than students whose peers had low level drinking or drug use. (4) Substance abuse prevention works. In 1999, only 10 percent of teens saw marijuana users as popular, compared to 17 percent in 1998 and 19 percent in 1997. The rate of past-month use of any drug among 12- to 17-year-olds declined 26 percent between 1997 and 1999. Marijuana use for sixth through eighth graders is at the lowest point in 5 years, as is use of cocaine, inhalants, and hallucinogens. (5) Community Anti-Drug Coalitions throughout the United States are successfully developing and implementing comprehensive, long-term strategies to reduce substance abuse among youth on a sustained basis. For example: (A) The Boston Coalition brought college and university presidents together to create the Cooperative Agreement on Underage Drinking. This agreement represents the first coordinated effort of Boston's many institutions of higher education to address issues such as binge drinking, underage drinking, and changing the norms surrounding alcohol abuse that exist on college and university campuses. (B) In 2000, the Coalition for a Drug-Free Greater Cincinnati surveyed more than 47,000 local students in grades 7 through 12. The results provided evidence that the Coalition's initiatives are working. For the first time in a decade, teen drug use in Greater Cincinnati appears to be leveling off. The data collected from the survey has served as a tool to strengthen relationships between schools and communities, as well as facilitate the growth of anti-drug coalitions in communities where such coalitions had not existed. (C) The Miami Coalition used a three-part strategy to decrease the percentage of high school seniors who reported using marijuana at least once during the most recent 30-day period. The development of a media strategy, the creation of a network of prevention agencies, and discussions with high school students about the dangers of marijuana all contributed to a decrease in the percentage of seniors who reported using marijuana from over 22 percent in 1995 to 9 percent in 1997. The Miami Coalition was able to achieve these results while national rates of marijuana use were increasing. (D) The Nashville Prevention Partnership worked with elementary and middle school children in an attempt to influence them toward positive life goals and discourage them from using substances. The Partnership targeted an area in East Nashville and created after school programs, mentoring opportunities, attendance initiatives, and safe passages to and from school. Attendance and test scores increased as a result of the program. (E) At a youth-led town meeting sponsored by the Bering Strait Community Partnership in Nome, Alaska, youth identified a need for a safe, substance-free space. With help from a variety of community partners, the Partnership staff and youth members created the Java Hut, a substance-free coffeehouse designed for youth. The Java Hut is helping to change norms in the community by providing a fun, youth-friendly atmosphere and activities that are not centered around alcohol or marijuana. (F) Portland's Regional Drug Initiative (RDI) has promoted the establishment of drug-free workplaces among the city's large and small employers. Over 3,000 employers have attended an RDI training session, and of those, 92 percent have instituted drug-free workplace policies. As a result, there has been a 5.5 percent decrease in positive workplace drug tests. (G) San Antonio Fighting Back worked to increase the age at which youth first used illegal substances. Research suggests that the later the age of first use, the lower the risk that a young person will become a regular substance abuser. As a result, the age of first illegal drug use increased from 9.4 years in 1992 to 13.5 years in 1997. (H) In 1990, multiple data sources confirmed a trend of increased alcohol use by teenagers in the Troy community. Using its ``multiple strategies over multiple sectors'' approach, the Troy Coalition worked with parents, physicians, students, coaches, and others to address this problem from several angles. As a result, the rate of twelfth grade students who had consumed alcohol in the past month decreased from 62.1 percent to 53.3 percent between 1991 and 1998, and the rate of eighth grade students decreased from 26.3 percent to 17.4 percent. The Troy Coalition believes that this decline represents not only a change in behavior on the part of students, but also a change in the norms of the community. (6) Despite these successes, drug use continues to be a serious problem facing communities across the United States. For example: (A) According to the Pulse Check: Trends in Drug Abuse Mid-Year 2000 report-- (i) crack and powder cocaine remains the most serious drug problem; (ii) marijuana remains the most widely available illicit drug, and its potency is on the rise; (iii) treatment sources report an increase in admissions with marijuana as the primary drug of abuse--and adolescents outnumber other age groups entering treatment for marijuana; (iv) 80 percent of Pulse Check sources reported increased availability of club drugs, with ecstasy (MDMA) and ketamine the most widely cited club drugs and seven sources reporting that powder cocaine is being used as a club drug by young adults; (v) ecstasy abuse and trafficking is expanding, no longer confined to the ``rave'' scene; (vi) the sale and use of club drugs has grown from nightclubs and raves to high schools, the streets, neighborhoods, open venues, and younger ages; (vii) ecstasy users often are unknowingly purchasing adulterated tablets or some other substance sold as MDMA; and (viii) along with reports of increased heroin snorting as a route of administration for initiates, there is also an increase in injecting initiates and the negative health consequences associated with injection (for example, increases in HIV/AIDS and Hepatitis C) suggesting that there is a generational forgetting of the dangers of injection of the drug. (B) The 2000 Parent's Resource Institute for Drug Education study reported that 23.6 percent of children in the sixth through twelfth grades used illicit drugs in the past year. The same study found that monthly usage among this group was 15.3 percent. (C) According to the 2000 Monitoring the Future study, the use of ecstasy among eighth graders increased from 1.7 percent in 1999 to 3.1 percent in 2000, among tenth graders from 4.4 percent to 5.4 percent, and from 5.6 percent to 8.2 percent among twelfth graders. (D) A 1999 Mellman Group study found that-- (i) 56 percent of the population in the United States believed that drug use was increasing in 1999; (ii) 92 percent of the population viewed illegal drug use as a serious problem in the United States; and (iii) 73 percent of the population viewed illegal drug use as a serious problem in their communities. (7) According to the 2001 report of the National Center on Addiction and Substance Abuse at Columbia University entitled ``Shoveling Up: The Impact of Substance Abuse on State Budgets'', using the most conservative assumption, in 1998 States spent $77,900,000,000 to shovel up the wreckage of substance abuse, only $3,000,000,000 to prevent and treat the problem and $433,000,000 for alcohol and tobacco regulation and compliance. This $77,900,000,000 burden was distributed as follows: (A) $30,700,000,000 in the justice system (77 percent of justice spending). (B) $16,500,000,000 in education costs (10 percent of education spending). (C) $15,200,000,000 in health costs (25 percent of health spending). (D) $7,700,000,000 in child and family assistance (32 percent of child and family assistance spending). (E) $5,900,000,000 in mental health and developmental disabilities (31 percent of mental health spending). (F) $1,500,000,000 in public safety (26 percent of public safety spending) and $400,000,000 for the state workforce. (8) Intergovernmental cooperation and coordination through national, State, and local or tribal leadership and partnerships are critical to facilitate the reduction of substance abuse among youth in communities across the United States. (9) Substance abuse is perceived as a much greater problem nationally than at the community level. According to a 2001 study sponsored by The Pew Charitable Trusts, between 1994 and 2000-- (A) there was a 43 percent increase in the percentage of Americans who felt progress was being made in the war on drugs at the community level; (B) only 9 percent of Americans say drug abuse is a ``crisis'' in their neighborhood, compared to 27 percent who say this about the nation; and (C) the percentage of those who felt we lost ground in the war on drugs on a community level fell by more than a quarter, from 51 percent in 1994 to 37 percent in 2000. (b) Extension and Increase of Program.--Section 1024(a) of the National Narcotics Leadership Act of 1988 (21 U.S.C. 1524(a)) is amended-- (1) by striking ``and'' at the end of paragraph (4); and (2) by striking paragraph (5) and inserting the following new paragraphs: ``(5) $50,600,000 for fiscal year 2002; ``(6) $60,000,000 for fiscal year 2003; ``(7) $70,000,000 for fiscal year 2004; ``(8) $80,000,000 for fiscal year 2005; ``(9) $90,000,000 for fiscal year 2006; and ``(10) $99,000,000 for fiscal year 2007.''. (c) Extension of Limitation on Administrative Costs.--Section 1024(b) of that Act (21 U.S.C. 1524(b)) is amended by striking paragraph (5) and inserting the following new paragraph (5): ``(5) 6 percent for each of fiscal years 2002 through 2007.''. (d) Additional Grants.--Section 1032(b) of that Act (21 U.S.C. 1533(b)) is amended by adding at the end the following new paragraph (3): ``(3) Additional grants.-- ``(A) In general.--Subject to subparagraph (F), the Administrator may award an additional grant under this paragraph to an eligible coalition awarded a grant under paragraph (1) or (2) for any first fiscal year after the end of the 4-year period following the period of the initial grant under paragraph (1) or (2), as the case may be. ``(B) Scope of grants.--A coalition awarded a grant under paragraph (1) or (2), including a renewal grant under such paragraph, may not be awarded another grant under such paragraph, and is eligible for an additional grant under this section only under this paragraph. ``(C) No priority for applications.--The Administrator may not afford a higher priority in the award of an additional grant under this paragraph than the Administrator would afford the applicant for the grant if the applicant were submitting an application for an initial grant under paragraph (1) or (2) rather than an application for a grant under this paragraph. ``(D) Renewal grants.--Subject to subparagraph (F), the Administrator may award a renewal grant to a grant recipient under this paragraph for each of the fiscal years of the 4-fiscal-year period following the fiscal year for which the initial additional grant under subparagraph (A) is awarded in an amount not to exceed amounts as follows: ``(i) For the first and second fiscal years of that 4-fiscal-year period, the amount equal to 80 percent of the non-Federal funds, including in-kind contributions, raised by the coalition for the applicable fiscal year. ``(ii) For the third and fourth fiscal years of that 4-fiscal-year period, the amount equal to 67 percent of the non-Federal funds, including in-kind contributions, raised by the coalition for the applicable fiscal year. ``(E) Suspension.--If a grant recipient under this paragraph fails to continue to meet the criteria specified in subsection (a), the Administrator may suspend the grant, after providing written notice to the grant recipient and an opportunity to appeal. ``(F) Limitation.--The amount of a grant award under this paragraph may not exceed $100,000 for a fiscal year.''. (e) Data Collection and Dissemination.--Section 1033(b) of that Act (21 U.S.C. 1533(b)) is amended by adding at the end the following new paragraph: ``(3) Consultation.--The Administrator shall carry out activities under this subsection in consultation with the Advisory Commission and the National Community Antidrug Coalition Institute.''. (f) Limitation on Use of Certain Funds for Evaluation of Program.-- Section 1033(b) of that Act, as amended by subsection (e) of this section, is further amended by adding at the end the following new paragraph: ``(4) Limitation on use of certain funds for evaluation of program.--Amounts for activities under paragraph (2)(B) may not be derived from amounts under section 1024(a) except for amounts that are available under section 1024(b) for administrative costs.''. (g) Treatment of Funds for Coalitions Representing Certain Organizations.--Section 1032 of that Act (21 U.S.C. 1532) is further amended by adding at the end the following new subsection: ``(c) Treatment of Funds for Coalitions Representing Certain Organizations.--Funds appropriated for the substance abuse activities of a coalition that includes a representative of the Bureau of Indian Affairs, the Indian Health Service, or a tribal government agency with expertise in the field of substance abuse may be counted as non-Federal funds raised by the coalition for purposes of this section.''. (h) Priority in Awarding Grants.--Section 1032 of that Act (21 U.S.C. 1532) is further amended by adding at the end the following new subsection: ``(d) Priority in Awarding Grants.--In awarding grants under subsection (b)(1)(A)(i), priority shall be given to a coalition serving economically disadvantaged areas.''. SEC. 2. SUPPLEMENTAL GRANTS FOR COALITION MENTORING ACTIVITIES UNDER DRUG-FREE COMMUNITIES SUPPORT PROGRAM. Subchapter I of chapter 2 of the National Narcotics Leadership Act of 1988 (21 U.S.C. 1531 et seq.) is amended by adding at the end the following new section: ``SEC. 1035. SUPPLEMENTAL GRANTS FOR COALITION MENTORING ACTIVITIES. ``(a) Authority To Make Grants.--As part of the program established under section 1031, the Director may award an initial grant under this subsection, and renewal grants under subsection (f), to any coalition awarded a grant under section 1032 that meets the criteria specified in subsection (d) in order to fund coalition mentoring activities by such coalition in support of the program. ``(b) Treatment With Other Grants.-- ``(1) Supplement.--A grant awarded to a coalition under this section is in addition to any grant awarded to the coalition under section 1032. ``(2) Requirement for basic grant.--A coalition may not be awarded a grant under this section for a fiscal year unless the coalition was awarded a grant or renewal grant under section 1032(b) for that fiscal year. ``(c) Application.--A coalition seeking a grant under this section shall submit to the Administrator an application for the grant in such form and manner as the Administrator may require. ``(d) Criteria.--A coalition meets the criteria specified in this subsection if the coalition-- ``(1) has been in existence for at least 5 years; ``(2) has achieved, by or through its own efforts, measurable results in the prevention and treatment of substance abuse among youth; ``(3) has staff or members willing to serve as mentors for persons seeking to start or expand the activities of other coalitions in the prevention and treatment of substance abuse; ``(4) has demonstrable support from some members of the community in which the coalition mentoring activities to be supported by the grant under this section are to be carried out; and ``(5) submits to the Administrator a detailed plan for the coalition mentoring activities to be supported by the grant under this section. ``(e) Use of Grant Funds.--A coalition awarded a grant under this section shall use the grant amount for mentoring activities to support and encourage the development of new, self-supporting community coalitions that are focused on the prevention and treatment of substance abuse in such new coalitions' communities. The mentoring coalition shall encourage such development in accordance with the plan submitted by the mentoring coalition under subsection (d)(5). ``(f) Renewal Grants.--The Administrator may make a renewal grant to any coalition awarded a grant under subsection (a), or a previous renewal grant under this subsection, if the coalition, at the time of application for such renewal grant-- ``(1) continues to meet the criteria specified in subsection (d); and ``(2) has made demonstrable progress in the development of one or more new, self-supporting community coalitions that are focused on the prevention and treatment of substance abuse. ``(g) Grant Amounts.-- ``(1) In general.--Subject to paragraphs (2) and (3), the total amount of grants awarded to a coalition under this section for a fiscal year may not exceed the amount of non- Federal funds raised by the coalition, including in-kind contributions, for that fiscal year. Funds appropriated for the substance abuse activities of a coalition that includes a representative of the Bureau of Indian Affairs, the Indian Health Service, or a tribal government agency with expertise in the field of substance abuse may be counted as non-Federal funds raised by the coalition. ``(2) Initial grants.--The amount of the initial grant awarded to a coalition under subsection (a) may not exceed $75,000. ``(3) Renewal grants.--The total amount of renewal grants awarded to a coalition under subsection (f) for any fiscal year may not exceed $75,000. ``(h) Fiscal Year Limitation on Amount Available for Grants.--The total amount available for grants under this section, including renewal grants under subsection (f), in any fiscal year may not exceed the amount equal to five percent of the amount authorized to be appropriated by section 1024(a) for that fiscal year. ``(i) Priority in Awarding Initial Grants.--In awarding initial grants under this section, priority shall be given to a coalition that expressly proposes to provide mentorship to a coalition or aspiring coalition serving economically disadvantaged areas.''. SEC. 3. FIVE-YEAR EXTENSION OF ADVISORY COMMISSION ON DRUG-FREE COMMUNITIES. Section 1048 of the National Narcotics Leadership Act of 1988 (21 U.S.C. 1548) is amended by striking ``2002'' and inserting ``2007''. SEC. 4. AUTHORIZATION FOR NATIONAL COMMUNITY ANTIDRUG COALITION INSTITUTE. (a) In General.--The Director of the Office of National Drug Control Policy may, using amounts authorized to be appropriated by subsection (d), make a grant to an eligible organization to provide for the establishment of a National Community Antidrug Coalition Institute. (b) Eligible Organizations.--An organization eligible for the grant under subsection (a) is any national nonprofit organization that represents, provides technical assistance and training to, and has special expertise and broad, national-level experience in community antidrug coalitions under section 1032 of the National Narcotics Leadership Act of 1988 (21 U.S.C. 1532). (c) Use of Grant Amount.--The organization receiving the grant under subsection (a) shall establish a National Community Antidrug Coalition Institute to-- (1) provide education, training, and technical assistance for coalition leaders and community teams, with emphasis on the development of coalitions serving economically disadvantaged areas; (2) develop and disseminate evaluation tools, mechanisms, and measures to better assess and document coalition performance measures and outcomes; and (3) bridge the gap between research and practice by translating knowledge from research into practical information. (d) Authorization of Appropriations.--There is authorized to be appropriated for purposes of activities under this section, including the grant under subsection (a), amounts as follows: (1) For each of fiscal years 2002 and 2003, $2,000,000. (2) For each of fiscal years 2004 and 2005, $1,000,000. (3) For each of fiscal years 2006 and 2007, $750,000. SEC. 5. PROHIBITION AGAINST DUPLICATION OF EFFORT. The Director of the Office of National Drug Control Policy shall ensure that the same or similar activities are not carried out, through the use of funds for administrative costs provided under subchapter II of the National Narcotics Leadership Act of 1988 (21 U.S.C. 1521 et seq.) or funds provided under section 4 of this Act, by more than one recipient of such funds. I. Purpose and Summary The purpose of the ``Drug-Free Communities Act of 1997'' (21 U.S.C. Sec. Sec. 1521 et seq.) (``DFCA'') is to establish a program to support and encourage local communities that first demonstrate a comprehensive, long-term commitment to reduce substance abuse among youth. The DFCA did this primarily by authorizing grants of up to $100,000 to local community coalitions to assist them in their anti-drug efforts. H.R. 2291 would expand that program and reauthorize it for an additional five years (through fiscal year 2007). The reauthorizing legislation includes provisions that would (1) annually increase the total funds authorized for the program from $50,600,000 in fiscal year 2002 to $99,000,000 in fiscal year 2007; (2) increase the percentage of the total funds authorized available for administrative costs from the 3 percent allowed under current law to 6 percent; (3) instruct the Director of the Office of National Drug Control Policy (ONDCP) to take steps to ensure that there is no bureaucratic duplication of effort among the various entities charged with administering the program and assisting coalitions; (4) allow coalitions to re-apply for grants even after five years, but only with an increased matching requirement; (5) create a new class of grants that help mature coalitions ``mentor'' newly-formed coalitions; (6) instruct the Director to give priority for all grants to coalitions that propose to assist economically disadvantaged communities; (7) help coalitions serving Native American communities to meet their private fundraising ``matching requirement'' under existing law by allowing them to count Federal funds allocated to tribal government agencies as non-Federal funds raised; and (8) establish a National Community Antidrug Coalition Institute. II. Need for Legislation Drug use among the nation's youth is a substantial and continuing problem. After achieving significant declines in teen drug use in the 1980's, the United States began to lose ground in the 1990's. According to the 2000 Monitoring the Future Study, from 1992 to 1996 past-month use of any illicit drug rose from 14.4 percent to 24.6 percent for twelfth graders; 11.0 percent to 23.2 percent for tenth graders; and 6.8 percent to 14.6 percent for eighth graders. The National Household Survey on Drug Abuse, conducted by the Substance Abuse and Mental Health Services Administration (SAMHSA), reported that between 1994 and 1996, LSD and hallucinogen use increased by 183 percent and cocaine use increased by 166 percent. The rise in drug use reflected a growing level of ignorance about the risks and consequences of illegal drug use. For example, disapproval of marijuana use and perception of the risks associated with that drug weakened significantly during that same period among eighth graders, corresponding (not surprisingly) with an increase in marijuana use among eighth graders (from approximately 3 percent to approximately 11 percent). (Source: 2000 Monitoring the Future Study.) Perception of the risks of LSD, powder cocaine and crack cocaine had similarly declined. These two trends (growing ignorance of the dangers of drug abuse, and growing drug abuse among youth) suggested a looming national crisis. Congress responded to this threat by passing, among other legislation, the Drug Free Communities Act of 1997 (``DFCA''), an amendment to the National Narcotics Leadership Act of 1988. DFCA sought to strengthen what has proven to be one of the most effective demand-side weapons in the fight against teen drug use: local community anti-drug coalitions. These coalitions bring individuals and institutions together to pool their knowledge, experience and resources in the struggle against illegal drug use in their local communities. As locally-based organizations, these coalitions are uniquely well-situated to deal with the special problems of their communities. DFCA established a program of direct grants to community organizations demonstrating a comprehensive, long-term commitment to reduce substance abuse among youth. The DFCA program was intended, among other things, to strengthen collaboration among communities, the federal government, and state, local and tribal governments, to serve as a catalyst for increased citizen participation in community anti-drug efforts, and to rechannel federal anti-drug resources and information to local communities. At the heart of the DFCA are grants to ``coalitions,'' which are broad-based groups consisting of representatives of youth, parents, businesses, the media, law enforcement,religious or other civic groups, health care professionals, and others that seek to reduce drug addiction in their communities, especially among the young. The coalitions are required to submit detailed applications for grants, describing their commitment to anti- drug efforts, their long-term strategy for combating drug addiction, and their ability to sustain and account for their efforts. The grants are limited to $100,000 per year, and are subject to a matching requirement (under which the coalition must match each Federal grant dollar with a dollar raised from non-Federal sources). Coalitions from rural areas may be excused from meeting all of the DECA's program requirements. Under existing law, a coalition receiving a grant is entitled to apply for renewal grants for four years after its initial award. The program has been a resounding success, and is one of the cornerstones of our nation's narcotics demand-reduction efforts. The ``Findings'' section of H.R. 2291 (Section 1(a)) gives only a few examples of the successes of the local coalitions assisted by DFCA. According to ONDCP, there are now 307 coalitions receiving grants under DFCA, with an additional 144 new awards projected for fiscal year 2001. Though it is difficult precisely to quantify the effect these local coalitions have had on the nation's drug problem, there is no doubt but that the steep increases in drug abuse among the young have leveled off since 1997. (Source: 2000 Monitoring the Future Study.) Nevertheless, significant work remains to be done. The National Parents' Resource Institute for Drug Education (PRIDE) survey of high school seniors for the 2000-2001 school year shows that 2 out of every 5 seniors used an illegal drug in the past year. The PRIDE shows that parental involvement (one key strategy promoted by DFCA) has a tremendous impact on the rate of youth drug abuse. Students are nearly twice as likely to use drugs if their parents do not talk to them about drugs, and students whose parents set clear rules about family standards are more than 50 percent less likely to use drugs than those who do not. The reauthorization of DFCA is critical to the nation's continuing efforts to reduce drug abuse. III. Legislative Hearings and Committee Action A. Hearings The Subcommittee on Criminal Justice, Drug Policy and Human Resources held a hearing on June 28, 2001, at which Congressman Rob Portman and Congressman Sander Levin testified as sponsors of the bill. Dr. Donald M. Vereen, Jr., Deputy Director of the Office of National Drug Control Policy, Mr. John J. Wilson, Acting Director of the Office of Juvenile Justice and Delinquency Prevention at the U.S. Department of Justice, General Arthur T. Dean (retired), Chairman and CEO of Community Anti-Drug Coalitions of America, Judge Michael Kramer of the Noble County, Indiana, Superior Court and Chair of Drug-Free Noble County, and Mr. Lawrence Couch, Program Manager of the Montgomery County Partnership, Maryland, also testified in support of the bill. Subcommittee Chairman Mark E. Souder began the hearing with a statement in strong support of the bill, and taking note of the many successes made possible by the original Drug-Free Communities Act. Chairman Souder also expressed his concerns, however, with the bill's increase in the administrative expenses cap and the risk of duplication of effort between the many entities entrusted under the bill with monitoring, evaluating, and providing training and technical assistance to anti-drug coalitions. The ranking Minority member of the subcommittee, Elijah E. Cummings, expressed his support for the bill and especially for its support of the efforts of established coalitions to provide assistance to new coalitions. Mr. Cummings also expressed his concern that DFCA funds be targeted towards economically disadvantaged communities. The Vice-Chairman of the Subcommittee, Benjamin A. Gilman, made a statement praising the DFCA program as a major component of our national demand reduction strategy. Congressman Portman summarized the goals of the DFCA program and its successes since original enactment. He noted that reauthorization of the DFCA was one of the centerpieces of President George W. Bush's anti-drug strategy, and that the bill is a priority for the Administration. Mr. Portman remarked on the vital role played by the faith community in the program, and expressed his support for the bill's creation of a National Community Antidrug Coalition Institute. Mr. Portman also stated his support for the bill's increase in the administrative expenses cap, while acknowledging that a central goal of the original legislation was to limit the number of dollars being spent on administrative overhead. Congressman Sander Levin discussed the history of the DFCA, explaining how it had been enacted to deal with the nation's crippling drug problem. Mr. Levin expressed his support for the bill's authorization of grants to support the mentoring of new coalitions by established ones, and for the proposed Institute. Mr. Levin noted that demand for grants under the DFCA has risen tremendously since the program's inception. Dr. Vereen testified to the successes of the DFCA program and to the need for increasing the administrative expenses cap. Mr. Wilson described OJJDP's administration of most aspects of the program, and also testified as to the need for the increase in the cap. Both also provided testimony in response to questions from the Subcommittee concerning the size of the administrative expenses cap and the risk of duplication of administrative tasks. Mr. Dean expressed his support for the reauthorization of the DFCA, and in particular for the creation of the proposed Institute. Judge Kramer and Mr. Couch also expressed their support for the legislation, and described their experiences as leaders of DFCA coalitions. B. Committee Action The Subcommittee on Criminal Justice, Drug Policy and Human Resources favorably referred An Amendment in the Nature of a Substitute to the bill, as amended, by voice vote on July 24, 2001, to the Committee on Government Reform and Oversight. On July 25, 2001, a quorum being present, the Committee on Government Reform and Oversight favorably reported An Amendment in the Nature of a Substitute to H.R. 2291, as amended, by voice vote. Committee on Government Reform and Oversight--107th Congress Rollcall Date: July 25, 2001. Amendment No. 1. Description: Amendment in the Nature of a Substitute to H.R. 2291. Offered by: Hon. Dan Burton (IN). Adopted by: Voice Vote. Date: July 25, 2001. Amendment No. 2. Description: Amendment to the Amendment in the Nature of a Substitute to H.R. 2291, page 11, strike lines 2 through 4 and insert the following: ``(8) $80,000,000 for fiscal year 2005; (9) $90,000,000 for fiscal year 2006; and (10) $99,000,000 for fiscal year 2007.'' Offered by: Hon. Danny K. Davis (IL). Adopted by: Voice Vote. Date: July 25, 2001. Motion to favorably report H.R. 2291, as amended. Offered by: Hon. Dan Burton (IN). Adopted by Voice Vote. IV. Oversight Findings Pursuant to rule XIII, clause 3(c)(1), and rule X, clause 2(b)(1) of the Rules of the House of Representatives, the Committee presents the following oversight findings from its own investigation. During the 107th Congress, the Subcommittee on Criminal Justice, Drug Policy and Human Resources held a hearing on June 28, 2001 concerning H.R. 2291. Witnesses at the hearing testified as to the need for the legislation and its provisions, as well as the past administration of the DFCA program. The results and findings from Committee oversight activities are incorporated in the bill and this report. V. Explanation of Bill The Committee provides the following description of the proposed legislation and an explanation of the Committee's actions. Pursuant to rule XIII, clause 3(c)(4) of the Rules of the House of Representatives, it includes a description of its general performance goals and objectives, as well as outcome- related goals and objectives. A. Findings (Sec. 1(a)) The bill's findings are outlined clearly. They demonstrate (1) the pressing need for further demand-reduction efforts, particularly among our nation's youth, and (2) the record of success and prospects for future progress offered by local community anti-drug coalitions. B. Extension and Increase of Program (Sec. 1(b)) The reauthorization of DFCA is critical to the nation's continuing efforts to reduce drug abuse. Moreover, to ensure that enough funds are available to assist the rapidly growing number of coalitions emerging throughout the country, increasing the funds authorized for the program is essential. Thus, H.R. 2291 (as amended) would reauthorize DFCA for 5 years (through fiscal year 2002), and gradually increase the funds authorized, up to $99,000,000 in the final year (fiscal year 2007). Concerns were raised concerning the size of these increases. The Committee believes that these concerns are well- founded, particularly since they could threaten the availability of funds for other pressing national priorities. In addition, there are legitimate questions about just how many coalitions capable of properly using these funds currently exist, or are likely to exist over the next five fiscal years. It is certainly the case that over the past four years this program has expanded rapidly, and the demand for grant funding should continue to grow. For the past 3 years, grants have been made to only about 40 percent of the applicant pool, with no degradation from one year to the next. Such significant increases in the amounts authorized for the program, however, may well outstrip the number of coalitions ready and able to provide the level and quality of services expected in the program. It is the intention of the Committee that ONDCP carefully monitor the grant criteria and administration to ensure that there is no relaxation of them for DFCA grants. The Committee also emphasizes that only the amounts authorized have been increased. During the annual appropriations process, Congress, in consultation with the Office of National Drug Control Policy (ONDCP), should take care to ensure that only those amounts are appropriated as can be awarded to coalitions that fully meet all applicable criteria. Some concern were expressed to the Committee that special language should be included regarding the eligibility of statewide anti-drug coalitions for a DFCA grant. After reviewing the legislation and the legislative history, it is the belief both of the bill's sponsors in the House of Representatives and the Senate and of the Committee that no special language would be necessary. The purpose of a DFCA grant is to support the growth of eligible coalitions, no matter what their size. Therefore, where a statewide coalition meets all of the other eligibility requirements outlined by the legislation, it should be able to compete on equal footing with other coalitions for a grant. Pursuant to a directive of the ONDCP program Administrator, the maximum amount that a coalition can receive under a renewal grant was reduced from $100,000 to $75,000 for years 3, 4, and 5 of this program. While neither the bill's sponsors in the House of Representatives and the Senate nor the Committee are convinced of the necessity of this reduction, they do believe that the Administrator, when acting with the clear advice and understanding of the Advisory Commission, has the authority to make such changes. However, the Committee believes it is essential that all coalitions receive adequate notice well in advance of any future changes in the eligibility amounts, as coalition fund-raising strategies may be affected by changes to the program. C. Extension of limitation on administrative costs Reflecting the intent of Congress to minimize the amount of money spent on bureaucratic overhead instead of grants to local anti-drug coalitions, administrative costs have been subject to a decreasing percentage cap since 1998 (reflecting the increasing levels of overall funding): 10 percent of fund authorized in fiscal year 1998 (meaning $1,000,000 was available for administrative costs), 6 percent in fiscal year 1999 ($1,200,000), 4 percent in fiscal year 2000 ($1,200,000), and 3 percent in fiscal year 2001 ($1,200,000). The 3 percent cap would remain in effect under existing law for fiscal year 2002 ($1,305,000). As amended, H.R. 2291 will raise the administrative costs cap to 6 percent of funds authorized for fiscal years 2002 through 2006. ONDCP requested, and the original version of the bill provided, a cap of 8 percent. (See the further discussion of this issue below.) The Committee carefully analyzed the information provided to it by ONDCP in determining an appropriate administrative costs cap. ONDCP identified five sources of administrative costs associated with DFCA which it believes should be paid for with DFCA funds: 1. Grants management by the Office of Juvenile Justice and Delinquency Prevention (OJJDP), a division of the Department of Justice. 2. Peer review of grant applications, and marketing and publicity of the DFCA program, all of which are undertaken by a private firm called Aspen Systems Corporation. 3. Technical assistance and training to grantees, undertaken by the six regional Centers for Application of Prevention Technologies (CAPTs), which are administered by the Center for Substance Abuse Prevention (a division of the Department of Health and Human Services). 4. Independent evaluation of the DFCA program, undertaken by another private firm, Caliber Associates. 5. Salary and costs of ONDCP's DFCA Administrator and the Advisory Commission established by DFCA. Each of these is analyzed below. 1. Grants management by OJJDP Section 1031(b) of the DFCA directs ONDCP to ``(1) make and track grants to grant recipients; (2) provide for the technical assistance and training, data collection, and dissemination of information on state-of-the-art practices that the Director determines to be effective in reducing substance abuse; and (3) provide for the general administration of the program.'' Pursuant to an Interagency Agreement, ONDCP has delegated most of the tasks of administering the DFCA program to the Office of Juvenile Justice and Delinquency Prevention, a division of the Department of Justice, which has the personnel and experience necessary to carry them out. According to an Administrative Cost Study (the ``Study''), first submitted by ONDCP to the Appropriations Committee of the United States Senate on January 18, 2001 and subsequently provided to this Committee, OJJDP administers the DFCA program through its Special Emphasis Division (SED). SED has assigned 9 staff members to work full-time on the DFCA program. Seven of these staffers are program managers, who are responsible for monitoring and administering the grants program, and two are administrative support staff. During the hearing held by the Subcommittee on Criminal Justice, Drug Policy and Human Resources concerning this bill, representatives of ONDCP and OJJDP testified to the need for more program managers to handle the growing number of grants. According to OJJDP, currently each program manager is responsible for an average of 44 grants. That number will rise as the number of grants rises; thus the Committee recognizes that there is a need to hire more program managers if the administration of the program is not to suffer. OJJDP has stated that ideally each program manager would be responsible for only 26 grants, as this is the amount reportedly used in many other grant programs. In an effort to determine how many program managers would be required, the Committee asked ONDCP and OJJDP to identify the activities carried out by these staffers, and how much time they spend on them. In their joint written response, ONDCP and OJJDP identified the following three principal activities: (1) administering the grant application process, which according to ONDCP and OJJDP occupies virtually all of the program managers' time from May through November each year; (2) bi-monthly telephone contacts with grantees, which require, on average, one hour per grantee per month; and (3) conducting on-site visits, one per grantee per year, each visit taking an average of 2 days. Assuming that May through November of each year are indeed completely taken up by the grant application process, five months are left in which to carry out the other two principal activities. The following chart shows the demands made on a program manager's time during those 5 months at various grants-per-program manager levels, assuming an 8-hour working day: ---------------------------------------------------------------------------------------------------------------- Days spent on telephone Grants per manager contacts Days spent on site visits Total days per month ---------------------------------------------------------------------------------------------------------------- 44 5.5 17.6 23.1 42 5.3 16.8 22.1 40 5.0 16.0 21.0 38 4.8 15.2 20.0 36 4.5 14.4 18.9 34 4.3 13.6 17.9 32 4.0 12.8 16.8 30 3.8 12.0 15.8 28 3.5 11.2 14.7 26 3.3 10.4 13.7 ---------------------------------------------------------------------------------------------------------------- There are slightly less than 22 working days per month, on average. Thus, a ratio in the range of 38 to 40 grants per program manager would appear to be adequate. While a ratio approaching 26 grants per manager (as requested by OJJDP) would certainly allow for a great deal of flexibility in the schedule of each program manager, as well as the potential for greater individual attention to each grantee, it must be remembered that the DFCA program was envisioned as involving very low administrative and bureaucratic overhead--lower than that of the typical Federal grant program. The Committee believes that to keep those administrative costs low, only such staff as necessary should be added. According to OJJDP, the cost of adding each new professional staffer is $100,000. Set forth below is a chart showing what the cost would be per year to keep the grants-to- program manager ratio at its current level of 44, to reduce it to 40, and to reduce it still further to 38. (Each grant is assumed to be $100,000, which is the assumption used by OJJDP in the calculations provided to the Committee and its staff.) \1\ --------------------------------------------------------------------------- \1\ Note that this chart overstates the number of program managers required, since it does not subtract administrative expenses from the total funds available for grants. For example, in fiscal year 2002, the actual number of grants which OJJDP would have to manage would be less than 500 once administrative costs were subtracted from the $50,600,000 authorized for DFCA. ---------------------------------------------------------------------------------------------------------------- Total Staffers Total cost (millions) FY funds Total ------------------------------------------------------ (millions) grants 44 40 38 44 40 38 ---------------------------------------------------------------------------------------------------------------- 2002................................ $50.6 506 12 13 13 $1.2 $1.3 $1.3 2003................................ 60 600 14 15 16 1.4 1.5 1.6 2004................................ 70 700 16 18 18 1.6 1.8 1.8 2005................................ 80 800 18 20 21 1.8 2 2.1 2006................................ 90 900 21 23 24 2.1 2.3 2.4 2007................................ 99 990 23 25 26 2.3 2.5 2.6 ---------------------------------------------------------------------------------------------------------------- 2. Peer review of grant applications, and marketing and publicity of the DFCA program, by Aspen Systems Corporation According to the written responses provided to the Committee, OJJDP has contracted with Aspen Systems Corporation to provide 3 services: (1) a ``peer review'' of grant applicants as part of the application process; (2) development of publications on the DFCA program; and (3) website support and information dissemination activities. From 1998 through 2000, OJJDP reports paying $289,000 per year to Aspen for these services. According to OJJDP, it plans to pay Aspen $325,000 in 2002. While OJJDP did not state precisely how much it planned to pay Aspen in the years after 2002, it predicted ``proportional growth'' as the number of grants increased. Assuming proportional growth (to match the growth in total funds for DFCA), the Committee projects the approximate growth of this cost as follows: 2002.......................................................... $325,000 2003.......................................................... 385,000 2004.......................................................... 447,000 2005.......................................................... 510,000 2006.......................................................... 574,000 2007.......................................................... 631,000 3. Technical assistance and training provided by the CAPTs OJJDP reports that it has agreed with CSAP that the CAPTs will (1) provide to each DFCA grantee 8 hours of technical assistance upon request, (2) allow grantees to attend regional training conferences registration-free, (3) provide a Drug-Free Communities Grantee Workshop (at which an overview of the CAPTs' research and training is presented), and (4) provide training to potential applicants and/or unsuccessful applicants for DFCA grants to assist them with the application process. OJJDP informed Committee staff that it costs approximately $1,000 per grantee to provide these services. Subsequently, OJJDP stated that the $1,000 figure was arrived at simply by dividing the $350,000 it paid to CSAP by the total number of grantees (307). It is therefore not clear how much the total cost will grow as the number of grantees grows, since the cost of some of the services provided by the CAPTs (such as the Workshop and the conferences) may not vary significantly with the number of participants. However, using the $1,000 figure per grantee produces the following rough estimate of the future costs: \2\ --------------------------------------------------------------------------- \2\ As was the case with the number of program managers, this estimate overstates the amount required, since administrative costs have not yet been subtracted from the total funds available for grants; also, 5 percent of the total funds would be spent on mentoring grants, which would not carry with them the requirement for additional CAPTs training. 2002.......................................................... $506,000 2003.......................................................... 600,000 2004.......................................................... 700,000 2005.......................................................... 800,000 2006.......................................................... 900,000 2007.......................................................... 990,000 4. Independent evaluation by Caliber Associates According to ONDCP, the independent evaluation is designed to measure: ``(1) The impact of coalition efforts on community capacity for prevention service delivery and (2) the degree to which coalition efforts result in a strengthened community response to alcohol, tobacco, and other drug problems.'' It is a 5-year study. ONDCP spent $600,000 from 1998 to 2000 on this evaluation, and plans to spend the same amount in 2001. It proposes, however, to increase the funding for it by $50,000 increments, up to a maximum of $750,000. Due to the difficulties involved in quantifying the ``results'' of the DFCA program and the problems entailed in comparing the effectiveness of coalitions in widely varying local circumstances, the evaluation does not attempt to determine whether individual coalitions have been effective. Indeed, since so many variables are involved in attempting to quantify both the nation's drug problem and efforts to deal with it, the independent evaluation cannot reasonably be expected to provide a comprehensive, quantifiable analysis of the results of the program as a whole. Instead, the independent evaluation is designed principally to attempt to identify coalition activities that have proven effective. The evaluation thus relies primarily on analyzing the activities of a representative sample of the coalitions, rather than analyzing in detail the activities of all of the coalitions. The Committee acknowledges the difficulties inherent in evaluating a program like the DFCA program. Under the circumstances, the Caliber Associates evaluation is probably the best possible evaluation that can be achieved, particularly given the intent of Congress to minimize the administrative costs of the program. Because of these inherent difficulties, however, the Committee does not believe that increasing the funding of the evaluation or attempting to expand it would be likely to be very fruitful. Since the evaluation relies primarily on a representative sample for its most significant findings, there is little need for increased funding, even as the number of grantees grows. Indeed, if the evaluation really had to be increased to match the growing number of grants, it would have to rise by more than $150,000 over the next 5 fiscal years. Thus, the Committee believes that the current funding level of $600,000 per year is sufficient. 5. Salary and costs of ONDCP Administrator and Advisory Commission In accordance with the statute, ONDCP has assigned a program Administrator to oversee the DFCA program. The DFCA also established an Advisory Commission, consisting of representatives (appointed by the President) of the public, of non-profit organizations, and state agencies with experience in substance abuse prevention. The Advisory Commission makes recommendations to ONDCP regarding the DFCA program, and may collect information on substance abuse prevention and make that information available to eligible coalitions and the general public through publications and workshops or conferences. ONDCP has spent $200,000 per year to pay the salary and expenses of the DFCA Administrator and the Advisory Commission established by the statute. ONDCP has informed the Committee that it will not need to increase that figure through 2007. 6. Other administrative costs The Committee asked ONDCP and OJJDP to describe any additional costs that they believed should be paid for out of the amounts authorized for administrative costs. In its written response, these agencies did not identify any such additional costs. Subsequently the Committee's staff was informed (1) that travel costs had not been included in previous cost forecasts, and (2) that additional administrative staff would need to be added at OJJDP (beyond the additional program managers). The Committee has not received sufficient documentation of these costs to be able to quantify or evaluate them. 7. Total administrative costs Adding up all of the costs identified by ONDCP and OJJDP, and holding the funding of the Caliber Associates evaluation constant at $600,000, the following would be the approximate total administrative costs per year and the percentage of the total funding, if the grants per program manager were held constant at 44, or were reduced to 40 or 38: \3\ --------------------------------------------------------------------------- \3\ This chart reflects both the reduction in the number of total grants due to the subtraction of administrative costs, and the fact that 5 percent of the grants will be mentoring grants which are set at $75,000 instead of $100,000. ---------------------------------------------------------------------------------------------------------------- 44 grants per 40 grants per 38 grants per program manager program manager program manager Fiscal year ----------------------------------------------------------------- In In In millions Percent millions Percent millions Percent ---------------------------------------------------------------------------------------------------------------- 2002.......................................... $2.69 5.3 $2.80 5.5 $2.86 5.7 2003.......................................... 3.05 5.1 3.18 5.3 3.25 5.4 2004.......................................... 3.43 4.9 3.58 5.1 3.66 5.2 2005.......................................... 3.80 4.8 3.98 5.0 4.07 5.1 2006.......................................... 4.18 4.6 4.38 4.9 4.49 5.0 2007.......................................... 4.52 4.6 4.74 4.8 4.86 4.9 ---------------------------------------------------------------------------------------------------------------- The preceding chart indicates that the total administrative costs will fall as a percentage of the total funds authorized from 2002 through 2007. Moreover, it indicates that the 6 percent administrative cost cap permitted by the amended bill should be morethan sufficient to allow ONDCP and OJJDP to reduce the grants-per-program manager ratio by a significant amount. The Committee acknowledges that the preceding estimates, being limited to those costs for which sufficient information and documentation were provided, may not include every possible administrative cost of the program. However, the creation of new entities to assist coalitions also strongly suggests that some cost reduction reasonably may be expected within the delineated categories. Even at the 38 grants-per- manager level, the authorized administrative cost limit will still leave additional funds to meet other needs. It is no doubt the case that choices will have to be made about where to allocate these administrative resources. In the view of the Committee, however, that was part of Congress' original intent in establishing an administrative cost cap: to control the growth of the bureaucracy and to ensure that the maximum number of dollars goes to the local coalitions. 8. Additional views concerning the administrative expenses cap As acknowledged above, there was a dispute about the appropriate level for the cap on administrative expenses for the DFCA program. Both the House and Senate bills set the level at 8 percent, which was the level requested by both the Clinton and Bush Administrations. The bill's sponsors on both the House and Senate side have expressed concern that cutting the administrative costs to 6 percent would jeopardize the administration of the program. The Committee agrees that continued review of the proper level to be authorized for administrative expenses of this program is warranted, and will monitor this issue next year after the changes made by this legislation are put in place. The Committee acknowledges that, even at 8 percent, the administrative costs would still be lower than those for other Department of Justice programs including the At-Risk Children program (10 percent) and the Drug Court program (up to 15 percent for training and technical assistance alone). C. Additional grants (Sec. 1(d)) Under the original DFCA, after being awarded an initial grant, a local coalition was entitled to reapply for a renewal grant for four additional years. No provision was made for additional aid after that point. This reflected in part Congress' intention that Federal aid to local coalitions would only be temporary, enabling the coalitions to establish themselves and begin their anti-drug efforts, but not to become permanently dependent on Federal funding. The Committee continues to support that goal. Representatives of many of the coalitions, however, informed the Committee and the bill's sponsors on both the House and Senate side that an abrupt cessation of Federal assistance would cause many of these coalitions to halt their activities. After five years, many of these coalitions (being primarily voluntary organizations) have only just begun to make a difference in their communities. A limit of 5 years, while certainly supportive of the goal of financial independence, may have the additional and unintended effect of withdrawing assistance from some coalitions just as they are starting to become effective. The reauthorizing legislation therefore allows for a second five-year period of Federal funding, but only with certain restrictions. First, ONDCP may not accord any priority during the application process to a coalition because of its status as a previous grantee; that coalition must compete with all other applicants on an equal footing. Second, any renewal grants are subject to an increased matching requirement, under which the coalition must raise $1.25 in non-Federal funds for every dollar of DFCA funds it receives for the first two renewal grants, and approximately $1.33 in non-Federal funds for every DFCA dollar for the last two renewal grants. D. Data collection and dissemination (Sec. 1(e)) This subsection directs the program Administrator to carry out data collection and dissemination activities under Section 1033(b) of the DFCA in consultation with the Advisory Commission and the National Community Antidrug Coalition Institute created by this legislation. This provision is intended to ensure that the resources and experience of the Advisory Commission and the new Institute are fully utilized for these important activities. E. Limitation on use of certain funds for evaluation of program (Sec. 1(f)) This provision codifies Congress' original understanding that the cost of any program evaluation is an administrative expense subject to the limitation on administrative expenses. Indeed, as two committees of the United States informed ONDCP, the cost of evaluation, technical assistance and training are considered to be administrative costs subject to the cap. (See Administrative Cost Study, submitted by ONDCP to the Senate Appropriations Committee, January 18, 2001, page 8.) F. Treatment of funds for coalitions representing certain organizations (Sec. 1(g)) This provision remedies a problem that had arisen under the previous statute in the treatment of coalitions that serve Indian tribes and include representatives of tribal government agencies (as specifically allowed by the DFCA). The Committee was informed that it is frequently more difficult for coalitions serving Indian tribes to raise non-Federal funds to meet the matching requirement under Section 1032 of the DFCA. These coalitions typically receive Federal funds (other than DFCA funds) instead of State government funds for anti-drug activities, putting those coalitions at a comparative disadvantage to coalitions with greater access to State and local government funds. ONDCP informed the Committee that pursuant to Federal Indian law, ONDCP has the authority to waive or modify the matching requirement for tribes that are Federally recognized and enjoy a government-to-government relationship with the United States. However, this authority would not extend to non- Federally recognized tribes. This provision therefore enables any coalition including a representative of the Bureau of Indian Affairs, the Indian Health Service, or a tribal government agency withexpertise in the field of substance abuse prevention, to count any funds it receives from any source, including Federal sources (other than the DFCA program itself), as non-Federal funds for purposes of the matching requirement. This subsection removes the barrier to receiving DFCA funds and eliminates any disparity in the treatment of coalitions serving Federally-recognized and non-Federally recognized tribes. G. Priority in awarding grants (Sec. 1(h)) Several members of the Committee expressed their concern that coalitions serving economically disadvantaged communities might face added difficulties in obtaining grants under the DFCA. Since these coalitions may lack the same resources available to coalitions from more prosperous communities, their applications may not seem as well supported as those of other coalitions. This provision seeks to remedy this imbalance, by directing those evaluating grant applications to give priority to coalitions serving economically disadvantaged communities. This subsection should not be read, however, to mean that any coalition (whether serving an economically disadvantaged community or not) should be excused from the minimum criteria and standards necessary to receive a grant. It is not the Committee's intent that this provision eliminate those criteria and standards. Rather, the Committee intends that among those coalitions meeting those minimum criteria and standards, priority is to be given to the ones that serve our nation's neediest areas. H. Supplemental grants for coalition mentoring activities (Sec. 2) A number of established coalitions with proven histories of success have expressed an interest in mentoring new and/or struggling coalitions, particularly in neighboring communities. Rather than creating a new and separate grant program, the bill will authorize certain coalitions to apply for a supplemental grant of up to $75,000. Up to 5 percent of the total funds authorized under DFCA may be used for these grants. This coalition mentoring grant program capitalizes on the idea, which underpins the entire DFCA, that local communities, rather than the Federal government, often know how best to address challenges in those communities. The Committee expects that as a result of these mentoring grants, new coalitions can have the benefit of local insights and common experiences when addressing similar problems. Section 2 of H.R. 2291, as amended, imposes a number of conditions on the receipt of these grants, including requirements that a grantee have been in existence for at least 5 years, and that it have achieved demonstrable results in the prevention and treatment of substance abuse among youth. Renewal grants are allowed. A non-Federal funds matching requirement identical to that applying to general grants is imposed, but with an exception for coalitions serving Indian tribes (identical to that described in part II.F above). There is no requirement that the non-Federal funds have been raised specifically for mentoring purposes; rather, funds raised for any anti-substance abuse activities may be counted against the matching requirement. To ensure that coalitions are given an appropriate incentive to mentor coalitions serving those most in need, priority in awarding these grants is to be given to coalitions expressly proposing to mentor coalitions or aspiring coalitions serving economically disadvantaged areas. I. Five-year extension of advisory commission on drug-free communities (Sec. 3) The Advisory Commission is reauthorized for an additional 5 years. J. Authorization for national community anti-drug coalition institute (Sec. 4) In response to a perceived need on the part of many grant recipients for greater guidance and information in carrying out their anti-substance abuse activities, the bill's drafters in both the House of Representatives and the Senate looked for ways effectively to provide that guidance and information. The end result of those efforts is the bill's authorization of a National Community Anti-Drug Coalition Institute. The Institute is intended to (1) provide education, training, and technical assistance for coalition leaders and community teams; (2) develop and disseminate evaluation tools, mechanisms, and measures to better assess and document coalition performance measures and outcomes; and (3) bridge the gap between research and practice by translating knowledge from research into practical information. In response to concerns raised by several members, the Committee added language directing the Institute to place special emphasis on the development of coalitions serving economically disadvantaged areas. To help create the Institute, the bill authorizes a federal grant, to be awarded by ONDCP to a national organization that represents, provides technical assistance to and training to, and has special expertise and broad, national-level experience in working with DFCA coalitions. The Committee expects that ONDCP will ensure that a competitive process, in accordance with applicable Federal law, will be used to determine the ultimate recipient of that grant. Nevertheless, only one such organization, Community Anti-Drug Coalitions of America (CADCA), has communicated with the Committee regarding the legislation. Thus, the Committee received extensive information from CADCA concerning its views of possible future goals and activities of the Institute. The bill authorizes up to $2,000,000 in each of fiscal years 2002 and 2003 for the grant establishing the Institute. CADCA has expressed the view that it believes the Institute could expect to receive sufficient outside funding after 2003 to enable it to achieve financial independence. Nevertheless, some provision should be made for financial assistance to the Institute (regardless of which organization ultimately receives the grant) from fiscal years 2004 through 2007, should insufficient non-Federal funding be available. The Committee believes that a cap on such assistance of $1,000,000 in fiscal years 2004 and 2005, and $750,000 in fiscal years 2006 and 2007, will balance theneed for contingent financial assistance with the intent of the Committee that the Institute move quickly towards independence from Federal support. The Committee had some concerns with respect to the level of the initial grants in 2002 and 2003. CADCA submitted to the Committee its view of a proposed budget for the Institute which, while describing activities and expenditures that undoubtedly have great merit, suggests the risk of duplicating some tasks already being undertaken or commissioned by ONDCP and/or OJJDP. The Committee expects that the ultimate recipient of the Institute grants will take its own steps to ensure that such duplication of effort does not occur and that overall costs are minimized as much as possible. K. Prohibition against duplication of effort (Sec. 5) The Committee is very concerned that the creation of the mentoring grants and the Institute, coupled with the raising of the administrative expenses cap, poses a significant danger of duplication of tasks among all the various entities providing monitoring, training and technical assistance, and/or evaluation services to DFCA grantees. Such duplication of tasks would be antithetical to one of the central purposes of the DFCA, namely to minimize the number of dollars spent on administrative overhead while maximizing the number of dollars directed to the coalitions themselves. This section instructs the Director of ONDCP to take affirmative steps to ensure that such duplication of effort does not occur. VI. Section-by-Section Summary SECTION 1. FIVE YEAR EXTENSION OF DRUG-FREE COMMUNITIES SUPPORT PROGRAM The Drug-Free Communities Act program is reauthorized for five years, from fiscal year 2003 through fiscal year 2007. The amounts authorized for the program are increased in fiscal year 2002 (the last year of authorization under the current DFCA) to $50,600,000 in fiscal year 2002; thereafter $60,000,000 is authorized in fiscal year 2003, $70,000,000 in fiscal year 2004, $80,000,000 in fiscal year 2005, $90,000,000 in fiscal year 2006, and $99,000,000 in fiscal year 2007. The limitation on administrative costs is extended through fiscal year 2007, but is raised for fiscal years 2002 through 2007 to 6 percent of the amounts authorized. Authority is given to the program Administrator to make additional grants to coalitions that already received an initial grant and 4 renewal grants. No priority is to be given these coalitions during the application process, however. Moreover, renewal grants for these additional grants are subject to a more stringent matching requirement, under which the renewal grant may be equal to no more than 80 percent of the total non-Federal funds raised by the coalition for the first two years after the initial grant, and 67 percent for the final two years. These grants remain capped at $100,000 per year. The program Administrator is directed to carry out data collection and dissemination activities under Section 1033(b) of the original DFCA in consultation with the Advisory Commission and the National Community Antidrug Coalition Institute established by Section 4 of this bill. This Section provides that amounts expended on a program evaluation are to be derived from the amounts authorized for administrative expenses only, and not from any other funds authorized by the DFCA. The non-Federal fundraising matching requirement is changed for coalitions serving Indian communities by allowing such coalitions to include Federal funds appropriated to them for substance abuse activities. This Section provides that priority in awarding DFCA grants is to be given to otherwise eligible coalitions that serve economically disadvantaged areas. SECTION 2. SUPPLEMENTAL GRANTS FOR COALITION MENTORING ACTIVITIES UNDER DRUG-FREE COMMUNITIES SUPPORT PROGRAM Section 2 authorizes the Administrator to award supplemental grants to coalitions already receiving DFCA grants, for the purpose of supporting the mentoring of new or emerging coalitions. The criteria for receiving such a grant are listed in Section 2(d). Renewal grants are permitted under certain conditions. The grants are limited to $75,000 per year, and the total amount of all such grants cannot exceed 5 percent of the funds authorized under the DFCA. Priority for the grants is given to coalitions expressly proposing to assist coalitions serving economically disadvantaged areas. SECTION 3. FIVE-YEAR EXTENSION OF ADVISORY COMMISSION ON DRUG-FREE COMMUNITIES The Advisory Commission is reauthorized through fiscal year 2007. SECTION 4. AUTHORIZATION FOR NATIONAL COMMUNITY ANTI-DRUG COALITION INSTITUTE This Section authorizes the ONDCP Director to award a grant to a private, not-for-profit organization with substantial experience in working with community anti-drug coalitions for the purpose of establishing a National Community Anti-Drug Coalition Institute. The Institute's activities are outlined in subsection (c). Up to $2,000,000 for each of fiscal years 2002 and 2003 is authorized for this grant. If necessary, up to $1,000,000 may be awarded to the Institute in each of fiscal years 2004 and 2005, and up to $750,000 in each of fiscal years 2006 and 2007. SECTION 5. PROHIBITION AGAINST DUPLICATION OF EFFORT The Director of ONDCP is instructed to take steps to ensure no duplication of effort by entities receiving funds under the DFCA or under Section 4 of this bill. VII. Statement of CBO Cost Estimate Pursuant to rule XIII, clause 3(c)(3) of the Rules of the House of Representatives, the Committee was provided the following estimate of the cost of H.R. 2291 prepared by the Congressional Budget Office. U.S. Congress, Congressional Budget Office, Washington, DC, July 30, 2001. Hon. Dan Burton, Chairman, Committee on Government Reform, House of Representatives, Washington, DC. Dear Mr. Chairman: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2291, a bill to extend the authorization of the Drug-Free Communities Support Program for an additional 5 years, to authorize a National Community Antidrug Coalition Institute, and for other purposes. If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is Mark Grabowicz. Sincerely, Barry B. Anderson, (For Dan L. Crippen, Director). Enclosure. H.R. 2291--A bill to extend the authorization of the Drug-Free Communities Support Program for an additional 5 years, to authorize a National Community Antidrug Coalition Institute, and for other purposes Summary: H.R. 2291 would authorize the appropriation of $406 million over the 2002-2007 period to extend the Drug-Free Communities Support Program. In addition, the bill would authorize the appropriation of $7.5 million over the 2002-2007 period to establish a National Community Antidrug Coalition Institute. Assuming appropriation of the authorized amounts, CBO estimates that implementing H.R. 2291 would cost $235 million over the 2002-2006 period, mostly for the Drug-Free Communities Support Program. This legislation would not affect direct spending or receipts so pay-as-you-go procedures would not apply. H.R. 2291 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). Any costs to state and local governments receiving grants under this bill would be incurred voluntarily. Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 2291 is shown in the following table. For the purposes of this estimate, CBO assumes that the authorized amounts will be appropriated by the start of each fiscal year and that spending would follow the historical spending rates for these or similar activities. The cost of this legislation falls within budget function 800 (general government). ---------------------------------------------------------------------------------------------------------------- By fiscal year in millions of dollars-- ----------------------------------------------------------- 2001 2002 2003 2004 2005 2006 ---------------------------------------------------------------------------------------------------------------- SPENDING SUBJECT TO APPROPRIATION Spending under current law for the Drug-Free Communities Support Program: Authorization level\1\.......................... 40 44 0 0 0 0 Estimated outlays............................... 31 39 30 9 0 0 Proposed Changes: Authorization level............................. 0 9 62 71 81 91 Estimated outlays............................... 0 4 24 53 72 82 Spending under H.R. 2291 for the Drug-Free Communties Support Program and the National Community Anti-Drug Coalition Institute: Authorization level\1\.......................... 40 53 62 71 81 91 Estimated outlays............................... 31 43 54 62 72 82 ---------------------------------------------------------------------------------------------------------------- \1\ The 2001 level is the amount appropriated for that year for the Drug-Free Communities Support Program. The 2002 level is the amount authorized to be appropriated in current law for that program. Pay-as-you-go considerations: None. Intergovernmental and private-sector impact: H.R. 2291 contains no intergovernmental mandates as defined in UMRA. Any costs of state and local governments receiving grants under this bill would be incurred voluntarily. Estimated prepared by: Federal costs: Mark Grabowicz; impact on State, local, and tribal governments: Susan Sieg Tompkins; impact on the the private sector: Paige Piper/Bach. Estimate approved by: Peter H. Fontaine, Deputy Assistant Director of Budget Analysis. VIII. Statement of Constitutional Authority Pursuant to rule XIII, clause 3(d)(1) of the Rules of the House of Representatives, the Committee finds that Congress is specifically granted the power to enact this law under Article I, Section 8, clause 1 under which Congress is granted the ``Power To * * * provide for the * * * general Welfare of the United States[.]'' IX. Federal Advisory Committee Act (5 U.S.C. App.) Section 5(b) As H.R. 2291 does not establish a new advisory committee within the meaning of Section 5(b) of the Federal Advisory Committee Act, no statement under that section is necessary. The Committee refers interested parties to Section IX of Report 105-105, dated May 20, 1997, which contains the Section 5(b) statement for the Advisory Commission created by the original DFCA. X. Changes in Existing Law Made by the Bill, as Reported In compliance with clause 3(e) 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): NATIONAL NARCOTICS LEADERSHIP ACT OF 1988 TITLE I--COORDINATION OF NATIONAL DRUG POLICY Subtitle A--National Drug Control Program SEC. 1001. SHORT TITLE. This subtitle may be cited as the ``National Narcotics Leadership Act of 1988''. * * * * * * * CHAPTER 2--DRUG-FREE COMMUNITIES * * * * * * * SEC. 1024. AUTHORIZATION OF APPROPRIATIONS. (a) In General.--There are authorized to be appropriated to the Office of National Drug Control Policy to carry out this chapter-- (1) * * * * * * * * * * (4) $40,000,000 for fiscal year 2001; [and] [(5) $43,500,000 for fiscal year 2002.] (5) $50,600,000 for fiscal year 2002; (6) $60,000,000 for fiscal year 2003; (7) $70,000,000 for fiscal year 2004; (8) $80,000,000 for fiscal year 2005; (9) $90,000,000 for fiscal year 2006; and (10) $99,000,000 for fiscal year 2007. (b) Administrative Costs.--Not more than the following percentages of the amounts authorized under subsection (a) may be used to pay administrative costs: (1) * * * * * * * * * * [(5) 3 percent for fiscal year 2002.] (5) 6 percent for each of fiscal years 2002 through 2007. * * * * * * * Subchapter I--Drug-Free Communities Support Program * * * * * * * SEC. 1032. PROGRAM AUTHORIZATION. (a) * * * (b) Grant Amounts.-- (1) * * * * * * * * * * (3) Additional grants.-- (A) In general.--Subject to subparagraph (F), the Administrator may award an additional grant under this paragraph to an eligible coalition awarded a grant under paragraph (1) or (2) for any first fiscal year after the end of the 4- year period following the period of the initial grant under paragraph (1) or (2), as the case may be. (B) Scope of grants.--A coalition awarded a grant under paragraph (1) or (2), including a renewal grant under such paragraph, may not be awarded another grant under such paragraph, and is eligible for an additional grant under this section only under this paragraph. (C) No priority for applications.--The Administrator may not afford a higher priority in the award of an additional grant under this paragraph than the Administrator would afford the applicant for the grant if the applicant were submitting an application for an initial grant under paragraph (1) or (2) rather than an application for a grant under this paragraph. (D) Renewal grants.--Subject to subparagraph (F), the Administrator may award a renewal grant to a grant recipient under this paragraph for each of the fiscal years of the 4-fiscal- year period following the fiscal year for which the initial additional grant under subparagraph (A) is awarded in an amount not to exceed amounts as follows: (i) For the first and second fiscal years of that 4-fiscal-year period, the amount equal to 80 percent of the non- Federal funds, including in-kind contributions, raised by the coalition for the applicable fiscal year. (ii) For the third and fourth fiscal years of that 4-fiscal-year period, the amount equal to 67 percent of the non- Federal funds, including in-kind contributions, raised by the coalition for the applicable fiscal year. (E) Suspension.--If a grant recipient under this paragraph fails to continue to meet the criteria specified in subsection (a), the Administrator may suspend the grant, after providing written notice to the grant recipient and an opportunity to appeal. (F) Limitation.--The amount of a grant award under this paragraph may not exceed $100,000 for a fiscal year. (c) Treatment of Funds for Coalitions Representing Certain Organizations.--Funds appropriated for the substance abuse activities of a coalition that includes a representative of the Bureau of Indian Affairs, the Indian Health Service, or a tribal government agency with expertise in the field of substance abuse may be counted as non-Federal funds raised by the coalition for purposes of this section. (d) Priority in Awarding Grants.--In awarding grants under subsection (b)(1)(A)(i), priority shall be given to a coalition serving economically disadvantaged areas. SEC. 1033. INFORMATION COLLECTION AND DISSEMINATION WITH RESPECT TO GRANT RECIPIENTS. (a) * * * (b) Data Collection and Dissemination.-- (1) * * * * * * * * * * (3) Consultation.--The Administrator shall carry out activities under this subsection in consultation with the Advisory Commission and the National Community Antidrug Coalition Institute. (4) Limitation on use of certain funds for evaluation of program.--Amounts for activities under paragraph (2)(B) may not be derived from amounts under section 1024(a) except for amounts that are available under section 1024(b) for administrative costs. * * * * * * * SEC. 1035. SUPPLEMENTAL GRANTS FOR COALITION MENTORING ACTIVITIES. (a) Authority To Make Grants.--As part of the program established under section 1031, the Director may award an initial grant under this subsection, and renewal grants under subsection (f), to any coalition awarded a grant under section 1032 that meets the criteria specified in subsection (d) in order to fund coalition mentoring activities by such coalition in support of the program. (b) Treatment With Other Grants.-- (1) Supplement.--A grant awarded to a coalition under this section is in addition to any grant awarded to the coalition under section 1032. (2) Requirement for basic grant.--A coalition may not be awarded a grant under this section for a fiscal year unless the coalition was awarded a grant or renewal grant under section 1032(b) for that fiscal year. (c) Application.--A coalition seeking a grant under this section shall submit to the Administrator an application for the grant in such form and manner as the Administrator may require. (d) Criteria.--A coalition meets the criteria specified in this subsection if the coalition-- (1) has been in existence for at least 5 years; (2) has achieved, by or through its own efforts, measurable results in the prevention and treatment of substance abuse among youth; (3) has staff or members willing to serve as mentors for persons seeking to start or expand the activities of other coalitions in the prevention and treatment of substance abuse; (4) has demonstrable support from some members of the community in which the coalition mentoring activities to be supported by the grant under this section are to be carried out; and (5) submits to the Administrator a detailed plan for the coalition mentoring activities to be supported by the grant under this section. (e) Use of Grant Funds.--A coalition awarded a grant under this section shall use the grant amount for mentoring activities to support and encourage the development of new, self-supporting community coalitions that are focused on the prevention and treatment of substance abuse in such new coalitions' communities. The mentoring coalition shall encourage such development in accordance with the plan submitted by the mentoring coalition under subsection (d)(5). (f) Renewal Grants.--The Administrator may make a renewal grant to any coalition awarded a grant under subsection (a), or a previous renewal grant under this subsection, if the coalition, at the time of application for such renewal grant-- (1) continues to meet the criteria specified in subsection (d); and (2) has made demonstrable progress in the development of one or more new, self-supporting community coalitions that are focused on the prevention and treatment of substance abuse. (g) Grant Amounts.-- (1) In general.--Subject to paragraphs (2) and (3), the total amount of grants awarded to a coalition under this section for a fiscal year may not exceed the amount of non-Federal funds raised by the coalition, including in-kind contributions, for that fiscal year. Funds appropriated for the substance abuse activities of a coalition that includes a representative of the Bureau of Indian Affairs, the Indian Health Service, or a tribal government agency with expertise in the field of substance abuse may be counted as non-Federal funds raised by the coalition. (2) Initial grants.--The amount of the initial grant awarded to a coalition under subsection (a) may not exceed $75,000. (3) Renewal grants.--The total amount of renewal grants awarded to a coalition under subsection (f) for any fiscal year may not exceed $75,000. (h) Fiscal Year Limitation on Amount Available for Grants.-- The total amount available for grants under this section, including renewal grants under subsection (f), in any fiscal year may not exceed the amount equal to five percent of the amount authorized to be appropriated by section 1024(a) for that fiscal year. (i) Priority in Awarding Initial Grants.--In awarding initial grants under this section, priority shall be given to a coalition that expressly proposes to provide mentorship to a coalition or aspiring coalition serving economically disadvantaged areas. * * * * * * * Subchapter II--Advisory Commission * * * * * * * SEC. 1048. TERMINATION. The Advisory Commission shall terminate at the end of fiscal year [2002] 2007. XI. Congressional Accountability Act; Public Law 104-1 The Committee finds that the legislation does not relate to the terms and conditions of employment or access to public services or accommodations within the meaning of Section 102(b)(3) of the Congressional Accountability Act (PL 104-1). XII. Budget Analysis Pursuant to rule XIII, clause 3(c)(2) of the Rules of the House of Representatives, and Section 308(a) of the Congressional Budget Act of 1974, the Committee finds that no new budget authority, new spending authority, new credit authority or an increase or decrease in revenues or tax expenditures results from enactment of this resolution. XIII. Unfunded Mandates Reform Act; Public Law 104-4 Section 423 The Committee finds that the legislation does not impose any Federal mandates within the meaning of Section 423 of the Unfunded Mandates Reform Act (P.L. 104-4). XIV. Appendix House of Representatives, Committee on Energy and Commerce, Washington, DC, July 30, 2001. Hon. Dan Burton, Chairman, Committee on Government Reform, Rayburn House Office Building, Washington, DC. Dear Chairman Burton: I am writing with regard to H.R. 2291, which the Committee on Government Reform ordered reported on July 25, 2001. The Committee on Energy and Commerce was named as an additional Committee of jurisdiction upon the bill's introduction. I recognize your desire to bring this bill before the House in an expeditious manner. Accordingly, I will not exercise the Committee's right to exercise its referral. By agreeing to waive its consideration of the bill, however, the Energy and Commerce Committee does not waive its jurisdiction over H.R. 2291. In addition, the Energy and Commerce Committee reserves its authority to seek conferees on any provisions of the bill that are within its jurisdiction during any House-Senate conference that may be convened on this similar legislation. I ask for your commitment to support any request by the Energy and Commerce Committee for conferees on H.R. 2291 or similar legislation. I request that you include this letter as a part of the Committee's report on H.R. 2291 and in the Congressional Record during debate on its provisions. Thank you for your attention to these matters. Sincerely, W.J. ``Billy'' Tauzin, Chairman. ------ House of Representatives, Committee on Government Reform, Washington, DC, July 30, 2001. Hon. W.J. ``Billy'' Tauzin, Chairman, Committee on Energy and Commerce, Rayburn House Office Building, Washington, DC. Dear Mr. Chairman: Thank you for your letter of July 30, 2001, regarding H.R. 2291, a bill to extend the authorization of the Drug-Free Communities Support Program. I agree that the Committee on Energy and Commerce has valid jurisdictional claims to certain provisions of this legislation, and I appreciate your decision not to exercise your referral in the interest of expediting consideration of the bill. I agree that by foregoing your right to consider this legislation, the Committee on Energy and Commerce is not waiving its jurisdiction. I will also support your Committee's request to seek conferees on provisions of the bill that fall within your jurisdiction, should the bill go to a House-Senate conference. Further, as your requested, this exchange of letters will be included in the Committee report on the bill and in the Congressional Record as part of the floor debate. Thank you for your cooperation in this matter. Sincerely, Dan Burton, Chairman.