[House Report 108-601]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-601

======================================================================



 
             TO REVISE AND EXTEND THE BOYS AND GIRLS CLUBS 
                               OF AMERICA

                                _______
                                

 July 13, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 2363]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on the Judiciary, to whom was referred the bill 
(S. 2363) to revise and extend the Boys and Girls Clubs of 
America, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for the Legislation..........................     2
Hearings.........................................................     2
Committee Consideration..........................................     2
Vote of the Committee............................................     2
Committee Oversight Findings.....................................     3
New Budget Authority and Tax Expenditures........................     3
Congressional Budget Office Cost Estimate........................     3
Performance Goals and Objectives.................................     4
Constitutional Authority Statement...............................     5
Section-by-Section Analysis and Discussion.......................     5
Changes in Existing Law Made by the Bill, as Reported............     5
Markup Transcript................................................     6

                          Purpose and Summary

    The Economic Espionage Act of 1996 (42 U.S.C. Sec. 13751 
note) established a program to provide Department of Justice 
grant support for starting new Boys and Girls Clubs in 
distressed areas. The current version of the law calls for the 
establishment of 1,200 new clubs by the end of 2005. S. 2363 
will increase this number by 300 for a total of 1,500. Current 
law also calls for a goal of 4,000 total clubs by January 1, 
2007. S. 2363 increases that goal to at least 5,000 such 
facilities in operation by January 1, 2010. Additionally, the 
bill extends through FY 2010 the authority of the Director of 
the Bureau of Justice Assistance of the Department of Justice 
to make grants to the organization to establish such 
facilities. It authorizes appropriations for FY 2006 through FY 
2010, beginning with $80 million in FY 2006 and increasing each 
year by increments of $5 million reaching $100 million in FY 
2010.

                Background and Need for the Legislation

    The Boys and Girls Clubs of America had its first 
beginnings almost 150 years ago. The first club was organized 
in 1860 by a group of women who believed disadvantaged boys 
should have access to a positive structured environment outside 
of school. By 1906, several Boys Clubs joined together and 
formed the Federated Boys Club in Boston. In 1956, the Boys 
Clubs of America received a congressional charter and 
celebrated its 50th anniversary. Recognizing that girls are 
also a vital part of the Clubs' membership, the name was 
changed to the Boys and Girls Clubs of America in 1990.
    The Boys and Girls Clubs of America continue to provide a 
positive learning environment for children throughout this 
country. The Clubs have numerous nationally recognized programs 
that address issues pertinent to today's youth. More than 25 
programs are available to youngsters seeking knowledge on 
topics including education, leadership development, the arts, 
and alcohol and drug prevention. Of the several million 
children that benefit from the Boys and Girls Clubs of America, 
a large majority of these kids live in our inner cities and 
urban areas. These programs are essential to providing 
resources and nourishing skills necessary for young people to 
become successful, productive adults.
    S. 2363 was introduced by Senator Hatch and Senator Leahy 
on April 29, 2004. On June 3, 2004, the Senate Committee on the 
Judiciary reported S. 2363 favorably, and the same day, the 
Senate passed the bill without amendment by unanimous consent. 
The bill was referred to the House Committee on the Judiciary 
on June 4, 2004.

                                Hearings

    No hearings were held in the Committee on the Judiciary on 
S. 2363.

                        Committee Consideration

    On July 7, 2004, the Committee met in open session and 
ordered favorably reported the bill S. 2363 without an 
amendment, a quorum being present.

                         Vote of the Committee

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee notes that there 
were no recorded votes during the Committee consideration of S. 
2363.

                      Committee Oversight Findings

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

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority or increased tax 
expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, S. 2363, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 13, 2004.
Hon. F. James Sensenbrenner, Jr., Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2363, an act to 
revise and extend the Boys and Girls Clubs of America.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz, who can be reached at 226-2860.
            Sincerely,
                                       Douglas Holtz-Eakin.

Enclosure

cc:
        Honorable John Conyers, Jr.
        Ranking Member
S. 2363--An act to revise and extend the Boys and Girls Clubs of 
        America.

                                SUMMARY

    S. 2363 would authorize the appropriation of a total of 
$350 million for fiscal years 2006 through 2009 for the 
Attorney General to make grants to the Boys and Girls Clubs of 
America. CBO estimates that implementing the act would cost 
$199 million over the 2006-2009 period, subject to 
appropriation of the authorized amounts. Enacting S. 2363 would 
not affect direct spending or revenues.
    S. 2363 contains no intergovernmental or private-sector 
mandates as defined by the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on State, local, or tribal 
governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of S. 2363 is shown in the 
following table. For this estimate, CBO assumes that the 
amounts authorized by the act will be appropriated by the start 
of each fiscal year and that outlays will follow the historical 
rate of spending for this program. The costs of this 
legislation fall within budget function 750 (administration of 
justice).

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    S. 2363 contains no intergovernmental or private-sector 
mandates as defined by UMRA and would impose no costs on State, 
local, or tribal governments.

                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                              2004     2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending for Boys and Girls Clubs
Grants Under Current Law
  Authorization Level a                                          80       80        0        0        0        0
  Estimated Outlays                                              66       77       61       38       22       10

Proposed Changes
  Authorization Level                                             0        0       80       85       90       95
  Estimated Outlays                                               0        0       18       43       61       77

Spending for Boys and Girls Clubs
  Authorization Level                                            80       80       80       85       90       95
  Estimated Outlays                                              66       77       79       81       83       87
----------------------------------------------------------------------------------------------------------------
a. The 2004 level is the amount appropriated for that year for the grants authorized by S. 2363. The 2005 level
  is the amount authorized in current law for these grants.

                         PREVIOUS CBO ESTIMATE

    On June 10, 2004, CBO transmitted a cost estimate for S. 
2363, an act to revise and extend the Boys and Girls Clubs of 
America, as passed by the Senate on June 3, 2004. The two 
versions of the legislation are identical, as are the cost 
estimates.

                         ESTIMATE PREPARED BY:

Federal Costs: Mark Grabowicz (226-2860)
Impact on State, Local, and Tribal Governments: Melissa Merrell 
    (225-3220)
Impact on the Private Sector: Paige Piper/Bach (226-2940)

                         ESTIMATE APPROVED BY:

Peter H. Fontaine
Deputy Assistant Director for Budget Analysis

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee notes that S. 2363 
authorizes funding. The Committee on the Judiciary expects the 
Director of the Bureau of Justice Assistance of the Department 
of Justice to make grants to the Boys and Girls Clubs to 
establish the additional authorized facilities. The Committee 
intends that the Clubs should establish these facilities where 
needed with emphasis on extending services to public housing 
projects and distressed areas.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article I, section 8 of the Constitution.

               Section-by-Section Analysis and Discussion

Section 1. Boys and Girls Clubs of America
    Section 1 amends section 401 of the Economic Espionage Act 
of 1996 (42 U.S.C. Sec. 13751 note) by increasing the current 
goal of new Boys and Girls Club facilities from 1,200 to 1,500 
and calling for the total number of facilities to be increased 
to 5,000 by January 1, 2010.
    This bill also authorizes appropriations for FY 2006-2010 
as follows:

         $80,000,000 for fiscal year 2006

         $85,000,000 for fiscal year 2007

         $90,000,000 for fiscal year 2008

         $95,000,000 for fiscal year 2009

         $100,000,000 for fiscal year 2010

         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 italics, existing law in which no change 
is proposed is shown in roman):

               SECTION 401 OF THE ECONOMIC ESPIONAGE ACT 
                                OF 1996

SEC. 401. ESTABLISHING BOYS AND GIRLS CLUBS.

    (a) Findings and Purpose.--
            (1) * * *
            (2) Purpose.--The purpose of this section is to 
        provide adequate resources in the form of seed money 
        for the Boys and Girls Clubs of America to establish 
        [1,200] 1,500 additional local clubs where needed, with 
        particular emphasis placed on establishing clubs in 
        public housing projects and distressed areas, and to 
        ensure that there are a total of not less than [4,000] 
        5,000 Boys and Girls Clubs of America facilities in 
        operation not later than December 31, [2005] 2010, 
        serving not less than 5,000,000 young people.

           *       *       *       *       *       *       *

    (c) Establishment.--
            (1) In general.--For each of the fiscal years 
        [2002, 2003, 2004, 2005, and 2006] 2006, 2007, 2008, 
        2009, and 2010, the Director of the Bureau of Justice 
        Assistance of the Department of Justice shall make a 
        grant to the Boys and Girls Clubs of America for the 
        purpose of establishing and extending Boys and Girls 
        Clubs facilities where needed, with particular emphasis 
        placed on establishing clubs in and extending services 
        to public housing projects and distressed areas.
            (2) Applications.--The Attorney General shall 
        accept an application for a grant under this subsection 
        if submitted by the Boys and Girls Clubs of America, 
        and approve or deny the grant not later than 90 days 
        after the date on which the application is submitted, 
        if the application--
                    (A) includes a long-term strategy to 
                establish [1,200] 1,500 additional Boys and 
                Girls Clubs and detailed summary of those areas 
                in which new facilities will be established, or 
                in which existing facilities will be expanded 
                to serve additional youths, during the next 
                fiscal year;
                    (B) includes a plan to ensure that there 
                are a total of not less than [4,000] 5,000 Boys 
                and Girls Clubs of America facilities in 
                operation before January 1, [2007] 2010;

           *       *       *       *       *       *       *

    (e) Authorization of Appropriations.--
            [(1) In general.--There are authorized to be 
        appropriated to carry out this section--
                    [(A) $70,000,000 for fiscal year 2002;
                    [(B) $80,000,000 for fiscal year 2003;
                    [(C) $80,000,000 for fiscal year 2004; and
                    [(D) $80,000,000 for fiscal year 2005.]
            (1) In general.--There are authorized to be 
        appropriated to carry out this section--
                    (A) $80,000,000 for fiscal year 2006;
                    (B) $85,000,000 for fiscal year 2007;
                    (C) $90,000,000 for fiscal year 2008;
                    (D) $95,000,000 for fiscal year 2009; and
                    (E) $100,000,000 for fiscal year 2010.

           *       *       *       *       *       *       *


                           Markup Transcript



                            BUSINESS MEETING

                        WEDNESDAY, JULY 7, 2004

                  House of Representatives,
                                Committee on the Judiciary,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 10:03 a.m., in 
Room 2141, Rayburn House Office Building, Hon. F. James 
Sensenbrenner, Jr. [Chairman of the committee] presiding.
    Chairman Sensenbrenner. The committee will be in order.
    A working quorum is present and, pursuant to notice, I now 
call up the bill S. 2363, a bill to revise and extend the Boys 
and Girls Clubs of America, for purposes of markup and move its 
favorable recommendation to the House. Without objection, the 
bill will be considered as read and open for amendment at any 
point, and the chair recognizes himself for 5 minutes to 
explain the bill.
    [The bill, S. 2363, follows:]



    Chairman Sensenbrenner. Today, we markup S. 2363 to revise 
and extend the Boys and Girls Clubs of America. The Senate 
Judiciary Committee reported and passed the bill on June 3rd, 
2004, without amendment, by unanimous consent. They did 
something. [Laughter.]
    Boys and Girls Clubs of America had its beginning almost 
150 years ago. The first club was organized in 1860 by a group 
of women who believed that the disadvantaged boys should have 
access to a positive-structured environment outside of school. 
In 1956, the Boys Clubs of America received a congressional 
charter and celebrated the clubs' 50th anniversary. Recognizing 
that girls are also a vital part of the clubs' membership, the 
name was changed to Boys and Girls Clubs of America in 1990.
    Over the years, many of America's disadvantaged youth have 
benefitted from the clubs' nationally recognized programs. They 
include a wide range of issues from health and education to 
alcohol and drug education programs and pregnancy prevention. 
The safe learning environments that the clubs provide have 
helped our youth have a positive impact on society.
    In an effort to further the positive mission of the clubs, 
the bill will establish 1,500 additional local clubs and will 
ensure that there are at least 5,000 such facilities in 
operation by January 1st, 2010. This bill authorizes 
appropriations for fiscal years 2006 through 2010, beginning 
with $80 million in fiscal year 2006 and increasing each year 
by increments of $5 million and then reaching $100 million in 
fiscal year 2010.
    The bill received overwhelming bipartisan support in the 
Senate, and I hope my colleagues can support this important 
bill.
    And I now recognize the gentleman from Michigan for 
whatever comments he wishes to make.
    Mr. Conyers. Thank you, Chairman Sensenbrenner. I am 
pleased to join with you in this bill, as our counterparts, the 
Senator and the Chairman of the Judiciary Committee and Ranking 
Member of the Judiciary has in legislation that was passed on 
June 3rd in the other body.
    We have got three of these clubs in metropolitan Detroit. 
We are checking now on the number in the State of Michigan. The 
value of these clubs I think go without too much detail being 
required. I can attest to the success, the training, the 
motivation that young people receive from these clubs. 
Sometimes they are children at risk that are lifted up and 
whose lives are very deeply affected. Some of the programming 
naturally focuses on character building, and leadership and 
help in life skills.
    So the Boys and Girls Clubs of America has taken on and 
plays a crucial role in preparing our young people and our 
Nation for a positive future, and so I join with you in what I 
hope will be a unanimous round of support for this measure.
    Chairman Sensenbrenner. I thank the gentleman from 
Michigan.
    Without objection, all Members may include opening 
statements in the record at this point, and I would also ask 
unanimous consent that a letter to me, dated June 28th, from 
Robbie Calloway, senior vice president of the Boys and Girls 
Clubs of America be placed in the record.
    [The prepared statement of Mr. Conyers follows:]

Prepared Statement of the Honorable John Conyers, Jr., a Representative 
 in Congress From the State of Michigan, and Ranking Member, Committee 
                            on the Judiciary

    I am pleased that the Committee is taking up S. 2363, ``A bill to 
revise and extend the Boys and Girls Clubs of America,'' at today's 
markup. Senator Hatch and Senator Leahy introduced this legislation on 
April 29, 2004 and it passed unanimously with bipartisan support on 
June 3, 2004. I am confident that our Committee, as well as the House, 
will take up this legislation in the same spirit.
    S. 2363 extends the authorization for annual grants from the 
Department of Justice to the Boys and Girls Club of America. This 
legislation authorizes the Boys and Girls Club of America to receive 
funds through 2010 at $80 million for FY 2006, $85 million for FY 2007, 
$90 million for FY 2008, $95 million for FY 2009, and $100 million for 
FY 2010. It also authorizes an increase in the number of clubs in 
existence to 5,000 by 2010 which will increase the number of children 
served to over 5 million.
    Founded in 1860, the Boys and Girls Club of America has been in 
existence for over one hundred years and provides young people with a 
positive alternative to drugs, gangs, and crime. At such clubs across 
America and throughout the world at our military bases, youth, ages 6-
18, find a positive adult influence and a safe environment in which to 
learn and grow. There are currently 3,500 clubs that serve 3.6 million 
children.
    It is with firsthand knowledge that I can attest to the success and 
opportunity provided the youth in my District that attend the Boys and 
Girls Clubs. There are 3 Boys and Girls Clubs in Detroit, as well as 
one each in Dearborn and Highland Park. There are a total of 52 clubs 
in Michigan serving approximately 52,000 kids. In my District I observe 
some of the nation's most at risk children develop, learn, and change 
their lives and surroundings as a result of their participation in club 
activity. Such club programming focuses on character and leadership, 
education and career, health and life skills, and sports, fitness, and 
recreation. The Boys and Girls Club of America has taken on the crucial 
role of preparing our young people and our nation for a positive 
future.
    I am confident that other Members of this Committee, regardless of 
party affiliation, can speak to similar successes as a result of a Boys 
and Girls Club in their District. We all realize that this legislation 
is necessary to continue the much needed mission of the Club and we all 
know too well the consequences of not providing such preparation. While 
it costs taxpayers $25,000 to $75,000 per year to keep one young person 
in jail, it costs just $200 per year to provide Boys and Girls Club 
programming for one youth.
    As I am champion of rights and opportunity for our nation's 
children, it is with great pleasure that I will support this 
reauthorization. Please join me.

    [The prepared statement of Mr. Schiff follows:]

Prepared Statement of the Honorable Adam B. Schiff, a Representative in 
                 Congress From the State of California

    Mr. Chairman. I would like to express my strong support for S. 
2363, important legislation to extend the authorization for annual 
grants from the Department of Justice to the Boys and Girls Club of 
America.
    With over 3,500 Boys and Girls Clubs across America and globally on 
U.S. military bases, these clubs serve over 3.6 million children. As a 
father of two young children, I recognize the importance that 
recreation and companionship play in the lives of our youth. With an 
increasing number of children at home with no adult care or 
supervision, it is essential that we provide these important 
opportunities for interaction to children in need.
    I have had the opportunity to visit with the Boys and Girls Club of 
Burbank in my district and witness firsthand the great work of this 
organization. During my visit, I was able to participate in some of 
their activities, such as assisting students with their homework and 
playing recreational games. Club programs and services are often aimed 
at instilling an important sense of belonging and influence in 
children. The clubs also provide young people with a positive outlet 
and an alternative to exposure to drugs, gangs, and crime that continue 
to plague many of our communities.
    I am pleased to support the legislation before us today which will 
increase the number of children served by Boys and Girls Clubs of 
America to over 5 million.

    [The letter follows:]

    
    
    Chairman Sensenbrenner. Are there amendments?
    [No response.]
    Chairman Sensenbrenner. If there are no amendments, a 
reporting quorum is not present. Without objection, the 
previous question is ordered on the motion to report the bill 
S. 2363 favorably, and that vote will take place once a 
reporting quorum appears.
    [Intervening business.]
    Chairman Sensenbrenner. A reporting quorum is now present, 
and the question is on the motion to report the bill S. 2363 
favorably.
    All in favor, say aye.
    Opposed, no.
    The ayes have it. The motion to report favorably is 
adopted.
    Without objection, the Chairman is authorized to move to go 
to conference pursuant to House rules. Without objection, the 
staff is directed to make any technical and conforming changes, 
and all Members will be given 2 days, as provided by the rules, 
in which to submit additional, dissenting, supplemental or 
minority views.

                                  
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