(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 pur-
suant to subsections (b) and (c) and recommendations for 
reallocating Federal funding for underage drinking pre-
vention 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 evi-
dence-based programs should be made available online and 
should be evaluated on a revolving basis. 
SEC. 5. INCENTIVE GRANTS TO STATES REGARDING MEAS-
URES 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 
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not fewer than five of the following ten policies with re-
spect to underage drinking: 
(1) The State has demonstrated coordination 
among agencies, including public health, alcohol bev-
erage 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 pre-
vention 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 ex-
isting 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; 
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(B) penalties for minors who purchase, at-
tempt to purchase, possess or consume beverage 
alcohol in violation of State law, including driv-
er’s license penalties; and 
(C) penalties that escalate with repeat of-
fenses. 
(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 al-
cohol 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, in-
cluding retailers owned or operated by or on behalf 
of the State or its agency, and law enforcement au-
thorities to detect and stop the use of false or fraud-
ulent identification. 
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(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 par-
ents 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 termi-
nate such programs and transfer the Federal amounts in-
volved 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 re-
duce underage drinking; and 
(3) incentive grants to states regarding meas-
ures to prevent or reduce underage drinking. 
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(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 re-
sources. Thereafter, unused funds must be obligated be-
fore 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 con-
sistent manner that allows users of this data to com-
pare 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 de-
scribed in subsection (b): 
(A) Early teens—persons 12 to 14 years of 
age. 
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