To establish a Federal incentive grant program for States that implement effective measures to prevent and reduce underage consumption of beverage alcohol, to evaluate the effectiveness and efficiency of anti-underage drinking programs funded with Federal dollars, and to provide appropriate reporting of Federal underage drinking data.

Summary: Underage Drinking Prevention Act of 2006 - Requires the Secretary of Health and Human Services to evaluate federal programs intended to prevent and reduce the consumption of beverage alcohol by minors. Directs that a program not receiving a score that demonstrates effectiveness must be modified to be eligible for future funding.

Allows the Secretary to make grants to states for activities to prevent and reduce underage drinking by reallocating funds from ineffective grants and programs. Sets forth eligibility requirements, including that the state has: (1) demonstrated coordination among agencies to prevent and reduce underage drinking and abuse; (2) implemented a comprehensive plan to improve enforcement and adjudication of existing underage drinking laws; and (3) penalties for specified underage drinking offenses that escalate with repeat offenses. Allows the Secretary to terminate ineffective programs and transfer the federal amounts involved for use for: (1) programs determined to be effective; (2) evidence-based programs; and (3) incentive grants for state measures.

Requires the Interagency Coordinating Committee on the Prevention of Underage Drinking to require that federally funded surveys collect and report data in a consistent manner that allows users to compare survey results. Sets forth age categories to be used in such surveys.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Underage Drinking Prevention Act of 
2006''.

SEC. 2. FINDINGS.

    The Congress finds as follows:
            (1) The consumption of beverage alcohol by underage youth 
        is an ongoing national concern. About 10.8 million Americans 
        between the ages of 12 to 20--for whom alcohol is illegal--
        report current alcohol use, approximately 29 percent of that 
        age group. (Substance Abuse and Mental Health Services 
        Administration; 2004 National Survey on Drug Use and Health.)
            (2) Despite the seriousness of the problem that exists, 
        significant declines have been noted over the past decade among 
        8th, 10th and 12th graders. Since 1991, ``binge drinking'' has 
        declined by 19 percent for 8th graders; 8 percent for 10th 
        graders; and 6 percent for 12th graders, and ``past month 
        drinking'' has declined by 32 percent for 8th graders; 22 
        percent for 10th graders; and 13 percent for 12th graders (2005 
        Monitoring the Future Survey).
            (3) However, 42 percent of college students report having 
        five or more drinks in a row at least once in the past two 
        weeks. Sixty-eight percent report drinking alcohol within the 
        past month. Consumption patterns in this category have remained 
        flat over the last decade. (Johnson, et al., 2004 Monitoring 
        the Future Study.)
            (4) Sixty-five percent of underage youth who drink obtain 
        alcohol from family and friends. Seven percent of youth report 
        they obtained alcohol from retailers who failed to check for 
        identification (Teenage Research Unlimited, Omnibus 2003).
            (5) Data from the National Academy of Sciences/Institute of 
        Medicine, the Federal Trade Commission and the American Medical 
        Association show that most youth who drink obtain alcohol 
        primarily through non-commercial sources, such as family and 
        friends.
            (6) In 2000, an estimated $71 million of federally 
        appropriated funding was dedicated to the prevention of 
        underage drinking. Many Federal agencies have program 
        activities that include the prevention of underage drinking, 
        but for which agency officials have not isolated funding 
        specific to alcohol. For example, $769 million in funding was 
        used for activities that addressed the prevention of alcohol 
        and other drug use that targeted either youth or both youth and 
        the broader community. (GAO-01-503, Underage Drinking, 
        Information on Federal Funds Targeted at Prevention, 2001.)
            (7) The Department of Health and Human Services/Substance 
        Abuse and Mental Health Services Administration stated that 
        programs that have not been rigorously evaluated cannot be 
        assumed to be effective. Programs that are funded by the 
        Federal Government should have evidence of effectiveness (A 
        Comprehensive Plan for Preventing and Reducing Underage 
        Drinking, 2006).
            (8) Based upon evidence of effectiveness, existing Federal 
        funding should be reallocated to programs and grants to States 
        with effective measures to prevent and reduce underage 
        drinking.

SEC. 3. ADMINISTRATION; CONSULTATION.

    (a) Administration.--This Act shall be carried out by the Secretary 
of Health and Human Services on behalf of the Interagency Coordinating 
Committee on the Prevention of Underage Drinking (referred to in this 
Act as ``ICCPUD'').
    (b) Consultation With Nonfederal Entities.--In carrying out this 
Act, the Secretary shall consult with States, public and private 
entities, including colleges and universities; public health and 
consumer organizations; and the beverage alcohol industry.

SEC. 4. EVALUATION OF FEDERAL UNDERAGE DRINKING PROGRAMS.

    (a) In General.--The Secretary shall in accordance with subsection 
(b) evaluate programs that are carried out in whole or in part with 
Federal funds and are intended to prevent and reduce the consumption of 
beverage alcohol by minors (referred to in this Act as ``underage 
drinking'').
    (b) Certain Requirements.--In carrying out subsection (a), the 
Secretary shall--
            (1) identify Federal underage drinking programs--
                    (A) that primarily make awards of grants, 
                cooperative agreements, or contracts to States or local 
                governments; and
                    (B) that primarily make such awards to private 
                entities;
            (2) determine the cost of each of the programs, with 
        allocations specific to Federal, State, local, and private 
        expenditures; and
            (3) evaluate all programs and require grantees to build the 
        evaluation costs into grant proposals.
    (c) Certain Requirements.--With respect to evaluations under 
subsection (a):
            (1) The Secretary shall work jointly with the funded entity 
        to develop evaluation criteria appropriate to each program.
            (2) The Secretary shall determine that all evaluations are 
        properly completed in a timely fashion.
            (3) Programs that do not receive a score that demonstrates 
        effectiveness will have to be modified or will not be eligible 
        for future funding.
    (d) Report to Congress.--The Secretary shall complete the 
evaluations under subsection (a) and submit to the Congress a report 
summarizing the results of the evaluations. The report shall include 
the information pursuant to subsections (b) and (c) and recommendations 
for reallocating Federal funding for underage drinking prevention and 
reduction programs toward the incentive grant created in section 5 or 
to programs deemed to be effective and evidence-based. The list of 
evaluated and evidence-based programs should be made available online 
and should be evaluated on a revolving basis.

SEC. 5. INCENTIVE GRANTS TO STATES REGARDING MEASURES TO PREVENT OR 
              REDUCE UNDERAGE DRINKING.

    (a) In General.--The Secretary may make grants to eligible States 
for the purpose of carrying out activities to prevent, and reduce 
underage drinking by reallocating funding from grants and programs 
deemed ineffective in section 4.
    (b) Eligible States.--A State is an eligible State for purposes of 
this section if the State has implemented not fewer than five of the 
following ten policies with respect to underage drinking:
            (1) The State has demonstrated coordination among agencies, 
        including public health, alcohol beverage control and law 
        enforcement, to prevent and reduce underage drinking and abuse 
        by providing prevention and treatment as well as enforcing laws 
        regarding the illegal purchase, attempt to purchase, 
        possession, consumption, furnishing, and provision of beverage 
        alcohol to minors.
            (2) The appropriate agencies referred to in paragraph (1) 
        have conducted a review to identify and catalog state and local 
        underage drinking prevention and reduction programs online and 
        have evaluated programs consistent with criteria pursuant to 
        section 4.
            (3) The State has implemented a comprehensive plan to 
        improve enforcement and adjudication of existing laws to 
        prevent and reduce underage drinking and to report the results 
        of these efforts.
            (4) The State has--
                    (A) penalties for adults who knowingly and 
                illegally provide alcohol to minors in violation of 
                State law;
                    (B) penalties for minors who purchase, attempt to 
                purchase, possess or consume beverage alcohol in 
                violation of State law, including driver's license 
                penalties; and
                    (C) penalties that escalate with repeat offenses.
            (5) The State has monetary fines resulting from the 
        imposition of such penalties outlined in paragraph (4) that are 
        used to provide funding for programs to prevent and reduce 
        underage drinking in the States in which the violation 
        occurred.
            (6) The State requires parental notification for minors who 
        seek to fraudulently acquire beverage alcohol in violation of 
        State law.
            (7) The State publicizes its laws and penalties regarding 
        underage drinking, including penalties for individuals who 
        illegally provide or furnish beverage alcohol to minors in 
        violation of State laws.
            (8) The State has established mechanisms for effective 
        collaboration between licensed retailers, including retailers 
        owned or operated by or on behalf of the State or its agency, 
        and law enforcement authorities to detect and stop the use of 
        false or fraudulent identification.
            (9) The State has established incentives for such retailers 
        as defined in paragraph (8)--
                    (A) to regularly train employees who serve or sell 
                alcohol; and
                    (B) to utilize age verification in the serving and 
                selling of alcohol.
            (10) The State has developed and implemented evidence-based 
        programs designed to educate parents about underage drinking 
        and how to address the issue.

SEC. 6. FUNDING.

    (a) Certain Transfers.--With respect to Federal underage drinking 
prevention and reduction programs that are determined by the Secretary 
through evaluations under section 4 to be ineffective, the Secretary 
may terminate such programs and transfer the Federal amounts involved 
for use for--
            (1) programs determined under the evaluations to be 
        effective in preventing or reducing underage drinking;
            (2) evidence-based programs to prevent or reduce underage 
        drinking; and
            (3) incentive grants to states regarding measures to 
        prevent or reduce underage drinking.
    (b) State Funding Levels.--Once the Secretary has submitted the 
report under section 4 to Congress, States will retain and manage their 
Federal funds and will have an initial two-year grace period to either 
modify or sunset ineffective programs and reallocate Federal resources. 
Thereafter, unused funds must be obligated before the fiscal year ends 
in order to be carried over to the next fiscal year. Once obligated, 
the funds can be used within a four-year period.

SEC. 7. IMPROVED COLLECTION AND REPORTING.

    (a) In General.--
            (1) Reporting in consistent manner.--ICCPUD, as part of its 
        ongoing efforts to improve Federal data collection, shall 
        require that federally funded surveys collect and report data 
        in a consistent manner that allows users of this data to 
        compare the results of these surveys. In these efforts, the 
        surveys shall report demographic categories that represent the 
        cohort of those under the age of 21. In order to facilitate 
        more useful data analysis, the following age categories shall 
        be established, where cohorts are available and used in those 
        activities described in subsection (b):
                    (A) Early teens--persons 12 to 14 years of age.
                    (B) Teens--persons 15 to 17 years of age.
                    (C) Underaged adults--persons 18 to 20 years of 
                age.
            (2) Additional requirements.--With respect to the age 
        groupings under paragraph (1):
                    (A) The grouping shall not preclude the use of 
                other age groups or the use of a comprehensive age 
                grouping of people between the ages of 12 to 20.
                    (B) The groups shall include gender, ethnic and 
                other specific demographic data.
    (b) Use of Certain National Surveys.--Activities under subsection 
(a) shall include the collection and reporting of relevant data from--
            (1) national surveys funded by the Secretary, including but 
        not limited to Monitoring the Future Survey and National Survey 
        on Drug Use and Health; and
            (2) State data available from research conducted or 
        supported by the States, which wholly or partially use Federal 
        funds.

SEC. 8. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``Secretary'' means the Secretary of Health 
        and Human Services.
            (2) The term ``underage drinking'' means the illegal 
        consumption, purchase, attempt to purchase or possession of 
        beverage alcohol in violation of State law.
            (3) The term ``underage drinking programs'' means programs 
        referred to in section 4(a).
            (4) The term ``minors,'' with respect to a State, means 
        individuals who are under the age designated in the law of the 
        State as the minimum age for legally purchasing, attempting to 
        purchase, consuming or possessing beverage alcohol as defined 
        under State law.
            (5) The term ``beverage alcohol industry'' means producers, 
        bottlers, importers, marketers, wholesalers, and retailers, 
        including control state jurisdictions, of beer, wine and 
        distilled spirits.
            (6) Incentive grant means funding reallocated from programs 
        deemed to be ineffective.