DISTRIBUTION OF FUNDS.

SEC. 206. DISTRIBUTION OF FUNDS. (a) Minimum Allotment.—Section 2618 of the Public Health Service Act (42 U.S.C. 300ff–28) is amended— (1) by redesignating subsections (b) through (e) as subsections (a) through (d), respectively; and (2) in subsection (a) (as so redesignated), in paragraph (1)(A)(i)— (A) in subclause (I), by striking “$100,000” and inserting “$200,000”; and (B) in subclause (II), by striking “$250,000” and inserting “$500,000”. (b) Amount of Grant; Estimate of Living Cases.—Section 2618(a) of the Public Health Service Act (as redesignated by subsection (a)(1) of this section) is amended in paragraph (2)— (1) in subparagraph (D)(i), by inserting before the semicolon the following: “, except that (subject to subparagraph (E)), for grants made pursuant to this paragraph or section 2620 for fiscal year 2005 and subsequent fiscal years, the cases counted for each 12-month period beginning on or after July 1, 2004, shall be cases of HIV disease (as reported to and confirmed by such Director) rather than cases of acquired immune deficiency syndrome”; (2) by redesignating subparagraphs (E) through (H) as subparagraphs (F) through (I), respectively; and (3) by inserting after subparagraph (D) the following subparagraph: “(E) Determination of secretary regarding data on hiv Cases.—If under section 2603(a)(3)(D)(i) the Secretary determines that data on cases of HIV disease are 114 STAT. 1335not sufficiently accurate and reliable, then notwithstanding subparagraph (D) of this paragraph, for any fiscal year prior to fiscal year 2007 the references in such subparagraph to cases of HIV disease do not have any legal effect.”. (c) Increases in Formula Amount.—Section 2618(a) of the Public Health Service Act (as redesignated by subsection (a)(1) of this section) is amended— (1) in paragraph (1)(A)(ii), by inserting before the semicolon the following: “and then, as applicable, increased under paragraph (2)(H)”; and (2) in paragraph (2)— (A) in subparagraph (A)(i), by striking “subparagraph (H)” and inserting “subparagraphs (H) and (I)”; and (B) in subparagraph (H) (as redesignated by subsection (b)(2) of this section), by amending the subparagraph to read as follows: “(H) Limitation.— “(i) In general.—The Secretary shall ensure that the amount of a grant awarded to a State or territory under section 2611 or subparagraph (I)(i) for a fiscal year is not less than— “(I) with respect to fiscal year 2001, 99 percent; “(II) with respect to fiscal year 2002, 98 percent; “(III) with respect to fiscal year 2003, 97 percent; “(IV) with respect to fiscal year 2004, 96 percent; and “(V) with respect to fiscal year 2005, 95 percent, of the amount such State or territory received for fiscal year 2000 under section 2611 or subparagraph (I)(i), respectively (notwithstanding such subparagraph). In administering this subparagraph, the Secretary shall, with respect to States or territories that will under such section receive grants in amounts that exceed the amounts that such States received under such section or subparagraph for fiscal year 2000, proportionally reduce such amounts to ensure compliance with this subparagraph. In making such reductions, the Secretary shall ensure that no such State receives less than that State received for fiscal year 2000. “(ii) Ratable reduction.—If the amount appropriated Under section 2677 for a fiscal year and available for grants under section 2611 or subparagraph (I)(i) is less than the amount appropriated and available for fiscal year 2000 under section 2611 or subparagraph (I)(i), respectively, the limitation contained in clause (i) for the grants involved shall be reduced by a percentage equal to the percentage of the reduction in such amounts appropriated and available.” (d) Territories.—Section 2618(a) of the Public Health Service Act (as redesignated by subsection (a)(1) of this section) is amended in paragraph (1)(B) by inserting “the greater of $50,000 or” after “shall be”. (e) Separate Treatment Drug Grants.—Section 2618(a) of the Public Health Service Act (as redesignated by subsection (a)(1) 114 STAT. 1336of this section and amended by subsection (b)(2) of this section) is amended in paragraph (2)(I)— (1) by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively; (2) by striking “(I) Appropriations” and all that follows through “With respect to” and inserting the following: “(I) Appropriations for treatment drug program.— “(i) Formula grants.—With respect to”; (3) in subclause (I) of clause (i) (as designated by paragraphs (1) and (2)), by inserting before the semicolon the following: “, less the percentage reserved under clause (ii)(V)”; and (4) by adding at the end the following clause: “(ii) Supplemental treatment drug grants.— “(I) In general.—From amounts made available under subclause (V), the Secretary shall make supplemental grants to States described in subclause (II) to enable such States to increase access to therapeutics described in section 2616(a), as provided by the State under section 2616(c)(2). “(II) Eligible states.—For purposes of subclause (I), a State described in this subclause is a State that, in accordance with criteria established by the Secretary, demonstrates a severe need for a grant under such subclause. In developing such criteria, the Secretary shall consider eligibility standards, formulary composition, and the number of eligible individuals at or below 200 percent of the official poverty line to whom the State is unable to provide therapeutics described in section 2616(a). “(III) State requirements.—The Secretary may not make a grant to a State under this clause unless the State agrees that— “(aa) the State will make available (directly or through donations from public or private entities) non-Federal contributions toward the activities to be carried out under the grant in an amount equal to $1 for each $4 of Federal funds provided in the grant; and “(bb) the State will not impose eligibility requirements for services or scope of benefits limitations under section 2616(a) that are more restrictive than such requirements in effect as of January 1, 2000. “(IV) Use and coordination.—Amounts made available under a grant under this clause shall only be used by the State to provide HIV/AIDS-related medications. The State shall coordinate the use of such amounts with the amounts otherwise provided under section 2616(a) in order to maximize drug coverage. “(V) Funding.—For the purpose of making grants under this clause, the Secretary shall each fiscal year reserve 3 percent of the amount referred 114 STAT. 1337to in clause (i) with respect to section 2616, subject to subclause (VI). “(VI) Limitation.—In reserving amounts under subclause (V) and making grants under this clause for a fiscal year, the Secretary shall ensure for each State that the total of the grant under section 2611 for the State for the fiscal year and the grant under clause (i) for the State for the fiscal year is not less than such total for the State for the preceding fiscal year.”. (f) Technical Amendment.—Section 2618(a) of the Public Health Service Act (as redesignated by subsection (a)(1) of this section) is amended in paragraph (3)(B) by striking “and the Republic of the Marshall Islands” and inserting “the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau, and only for purposes of paragraph (1) the Commonwealth of Puerto Rico”.