TYPE AND DISTRIBUTION OF GRANTS; SUPPLEMENTAL GRANTS.

SEC. 103. TYPE AND DISTRIBUTION OF GRANTS; SUPPLEMENTAL GRANTS. Section 2603(b) of the Public Health Service Act (42 U.S.C. 300ff–13(b)) is amended—(1) in paragraph (1)—(A) in the matter preceding subparagraph (A), by striking “Not later than” and all that follows through “the Secretary shall” and inserting the following: “Subject to subsection (a)(4)(B)(i) and section 2610(d), the Secretary shall”;(B) in subparagraph (B), by striking “demonstrates the severe need in such area” and inserting “demonstrates the need in such area, on an objective and quantified basis,”;(C) by striking subparagraph (F) and inserting the following:“(F) demonstrates the inclusiveness of affected communities and individuals with HIV/AIDS;”;(D) in subparagraph (G), by striking the period and inserting “; and”; and(E) by adding at the end the following:“(H) demonstrates the ability of the applicant to expend funds efficiently by not having had, for the most recent grant year under subsection (a) for which data is available, more than 2 percent of grant funds under such subsection canceled or covered by any waivers under subsection (c)(3).”; and(2) in paragraph (2)—(A) in subparagraph (A), by striking “severe need” and inserting “demonstrated need”;(B) by striking subparagraph (B) and inserting the following:“(B) Demonstrated need.—The factors considered by the Secretary in determining whether an eligible area has a demonstrated need for purposes of paragraph (1)(B) may include any or all of the following:“(i) The unmet need for such services, as determined under section 2602(b)(4) or other community input process as defined under section 2609(d)(1)(A).“(ii) An increasing need for HIV/AIDS-related services, including relative rates of increase in the number of cases of HIV/AIDS.“(iii) The relative rates of increase in the number of cases of HIV/AIDS within new or emerging subpopulations.“(iv) The current prevalence of HIV/AIDS.“(v) Relevant factors related to the cost and complexity of delivering health care to individuals with HIV/AIDS in the eligible area.“(vi) The impact of co-morbid factors, including co-occurring conditions, determined relevant by the Secretary.“(vii) The prevalence of homelessness.“(viii) The prevalence of individuals described under section 2602(b)(2)(M).120 STAT. 2774“(ix) The relevant factors that limit access to health care, including geographic variation, adequacy of health insurance coverage, and language barriers.“(x) The impact of a decline in the amount received pursuant to subsection (a) on services available to all individuals with HIV/AIDS identified and eligible under this title.”; and(C) by striking subparagraphs (C) and (D) and inserting the following:“(C) Priority in making grants.—The Secretary shall provide funds under this subsection to an eligible area to address the decline or disruption of all EMA-provided services related to the decline in the amounts received pursuant to subsection (a) consistent with the grant award for the eligible area for fiscal year 2006, to the extent that the factor under subparagraph (B)(x) (relating to a decline in funding) applies to the eligible area.”.