To provide assistance to States to expand and establish drug abuse treatment programs to enable such programs to provide services to individuals who voluntarily seek treatment for drug abuse.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Treatment on Demand Assistance 
Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) According to the Department of Health and Human 
        Services, each year drug and alcohol related abuse kills more 
        than 120,000 Americans.
            (2) In 1999, an estimated 14,800,000 Americans were current 
        illicit drug users.
            (3) States across the country are faced with increasing 
        demands for drug treatment programs.
            (4) In addition, methamphetamine abuse continues to be on 
        the rise. Methamphetamine abuse accounts for 5.1 percent of all 
        treatment admissions, which was the fourth highest percentage 
        after cocaine, heroin, and marijuana.
            (5) Current statistics show that methamphetamine use is 
        increasing rapidly especially among the nation's youth.
            (6) There are over 2,800,000 substance abusers in America 
        in need of treatment.
            (7) This number exceeds the 2,137,100 persons receiving 
        treatment.
            (8) Recent reports indicate that every additional dollar 
        invested in substance abuse treatment saves taxpayers $7.46 in 
        societal costs.
            (9) In California, the average cost to taxpayers per 
        inmate, per year, is $23,406 versus the national average cost 
        of $4,300 for a full treatment program.
            (10) Drugs and alcohol cost taxpayers nearly 
        $276,000,000,000 annually in preventable health care costs, 
        extra law enforcement, auto crashes, crime and lost 
        productivity versus $3,100,000,000 appropriated for substance 
        abuse-related activities in fiscal year 2000.
            (11) Nationwide, 59 percent of police chiefs believe that 
        drug offenders are served better by participation in treatment 
        programs versus prisons only.
            (12) Current treatment on demand programs such as those in 
        San Francisco and Baltimore focus on the specific drug abuse 
        needs of the local community and should be encouraged.
            (13) Many States have developed programs designed to treat 
        non-violent drug offenders and this should be encouraged.
            (14) Drug treatment prevention programs must be increased 
        in order to effectively address the needs of those actively 
        seeking treatment before they commit a crime.

SEC. 3. PURPOSE.

    It is the purpose of this Act to--
            (1) assist individuals who seek the services of drug abuse 
        treatment programs by providing them with treatment on demand;
            (2) provide assistance to help eliminate the backlog of 
        individuals on waiting lists to obtain drug treatment for their 
        addictions;
            (3) enhance public safety by reducing drug-related crimes 
        and preserving jails and prison cells for serious and violent 
        criminal offenders;
            (4) complement the efforts of law enforcement by providing 
        additional funding to expand current community-based treatment 
        efforts and prevent the recidivism of those currently in the 
        correctional system; and
            (5) assist States in the implementation of alternative drug 
        treatment programs that divert non-violent drug offenders to 
        treatment programs that are more suited for the rehabilitation 
        of drug offenders.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Non-violent.--The term ``non-violent'' with respect to 
        a criminal offense means an offense that is not a crime of 
        violence as defined under the applicable State law.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (3) State.--The term ``State'' means each of the 50 States, 
        the District of Columbia and the Commonwealth of Puerto Rico.

SEC. 5. GRANTS FOR THE EXPANSION OF CAPACITY FOR PROVIDING TREATMENT.

    Subpart 1 of part B of title V of the Public Health Service Act (42 
U.S.C. 290bb et seq.), as amended by sections 3104 and 3632 of the 
Youth Drug and Mental Health Services Act (Public Law 106-310), is 
amended--
            (1) by redesignating the section 514 relating to the 
        methamphetamine and amphetamine treatment initiative as section 
        514B and inserting such section after section 514A; and
            (2) and by adding at the end the following:

``SEC. 514C. TREATMENT ON DEMAND.

    ``(a) In General.--The Secretary, acting through the Director of 
the Center for Substance Abuse Treatment, shall--
            ``(1) award grants, contracts, or cooperative agreements to 
        public and private nonprofit entities, including Native Alaskan 
        entities and Indian tribes and tribal organizations; and
            ``(2) award block grants to States;
for the purpose of providing substance abuse treatment services.
    ``(b) Eligibility.--
            ``(1) In general.--To be eligible to receive a grant, 
        contract, or cooperative agreement under subsection (a) an 
        entity or a State shall provide assurances to the Secretary 
        that amounts received under such grant, contract, or agreement 
        will only be used for substance abuse treatment programs that 
        have been certified by the State as using licensed or certified 
        providers.
            ``(2) Application.--An entity or State desiring a grant, 
        contract, or cooperative agreement under subsection (a) shall 
        submit an application to the Secretary at such time, in such 
        manner, and accompanied by such information as the Secretary 
        may reasonably require.
            ``(3) Priority.--In awarding grants, contracts, or 
        cooperative agreements to entities under subsection (a)(1), the 
        Secretary shall give priority to applicants who propose to 
        eliminate the waiting lists for substance abuse treatment on 
        demand programs in local communities with high incidences of 
        drug use.
    ``(c) Amount.--
            ``(1) Public and private nonprofit entities.--The amount of 
        each grant, contract, or cooperative agreement awarded to a 
        public or private nonprofit entity under subsection (a)(1) 
        shall be determined by the Secretary based on the application 
        submitted by such an entity.
            ``(2) States.--The amount of a block grant awarded to a 
        State under subsection (a)(2) shall be determined by the 
        Secretary based on the formula contained in section 1933.
    ``(d) Duration of Grants.--The Secretary shall award grants, 
contracts, or cooperative agreements under subsection (a) for periods 
not to exceed 5 fiscal years.
    ``(e) Requirement of Matching Funds.--
            ``(1) In general.--Subject to paragraph (3), the Director 
        may not make a grant, contract or cooperative agreement under 
        subsection (a) unless the entity or State involved agrees, with 
        respect to the costs of the program to be carried out by the 
        entity or State pursuant to such subsection, to make available 
        (directly or through donations from public or private entities) 
        non-Federal contributions toward such costs in an amount that 
        is--
                    ``(A) for the first fiscal year for which the 
                entity or State receives such a grant, contract or 
                cooperative agreement, not less than $1 for each $9 of 
                Federal funds provided in the grant, contract or 
                cooperative agreement;
                    ``(B) for any second or third such fiscal year, not 
                less than $1 for each $5 of Federal funds provided in 
                the grant, contract or cooperative agreement; and
                    ``(C) for any subsequent such fiscal year, not less 
                than $1 for each $3 of Federal funds provided in the 
                grant, contract or cooperative agreement.
            ``(2) Determination of amount of non-federal 
        contribution.--Non-Federal contributions required in paragraph 
        (1) may be in cash or in kind, fairly evaluated, including 
        plant, equipment, or services. Amounts provided by the Federal 
        Government, or services assisted or subsidized to any 
        significant extent by the Federal Government, may not be 
        included in determining the amount of such non-Federal 
        contributions.
            ``(3) Waiver.--The Director may waive the requirement 
        established in paragraph (1) if the Director determines--
                    ``(A) that extraordinary economic conditions in the 
                area to be served by the entity or State involved 
                justify the waiver; or
                    ``(B) that other circumstances exist with respect 
                to the entity or State that justify the waiver, 
                including the limited size of the entity or State or 
                the ability of the entity or State to raise funds.
    ``(f) Evaluation.--An entity or State that receives a grant, 
contract, or cooperative agreement under subsection (a) shall submit, 
in the application for such grant, contract, or cooperative agreement, 
a plan for the evaluation of any project undertaken with funds provided 
under this section. Such entity or State shall provide the Secretary 
with periodic evaluations of the progress of such project and such 
evaluation at the completion of such project as the Secretary 
determines to be appropriate.
    ``(g) Use for Construction.--A grantee under this section may use 
up to 25 percent of the amount awarded under the grant, contract or 
cooperative agreement under this section for the costs of construction 
or major renovation of facilities to be used to provide substance abuse 
treatment services and for facility maintenance.
    ``(h) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section--
                    ``(A) $600,000,000 for fiscal year 2002;
                    ``(B) $1,200,000,000 for fiscal year 2003;
                    ``(C) $1,800,000,000 for fiscal year 2004;
                    ``(D) $2,400,000,000 for fiscal year 2005; and
                    ``(E) $3,000,000,000 for fiscal year 2006.
            ``(2) Allocation of funds.--From the amount appropriated 
        under paragraph (1) for each fiscal year, the Secretary shall 
        allocate--
                    ``(A) 50 percent of such amount to award grants, 
                contracts, or cooperative agreements to public or 
                nonprofit private entities under subsection (a)(1); and
                    ``(B) 50 percent of such amount to award grants to 
                States under subsection (a)(2).''.

SEC. 6. ALTERNATIVE TREATMENT PROGRAMS.

    (a) Grants.--The Attorney General, in consultation with the 
Secretary, shall award grants to eligible States to enable such States, 
either directly or through the provision of assistance to counties or 
local municipalities, to  provide drug treatment services to 
individuals who have been convicted of non-violent drug possession 
offenses and diverted from incarceration because of the enrollment of 
such individuals into community-based drug treatment programs.
    (b) Eligibility.--To be eligible to receive a grant under this 
section a State shall--
            (1) be implementing an alternative drug treatment program 
        under which any individual in the State who has been convicted 
        of a non-violent drug possession offense may be enrolled in an 
        appropriate drug treatment program as an alternative to 
        incarceration; and
            (2) prepare and submit to the Secretary an application at 
        such time, in such manner, and containing such information as 
        the Secretary may require.
    (c) Use of Funds.--Amounts provided to a State under a grant under 
this section may be used by the State (or by State or local entities 
that receive funding from the State under this section) to pay expenses 
associated with--
            (1) the construction of treatment facilities;
            (2) payments to related drug treatment services providers 
        that are necessary for the effectiveness of the program, 
        including aftercare supervision, vocational training, 
        education, and job placement;
            (3) drug testing;
            (4) probation services;
            (5) counseling, including mental health services; and
            (6) the operation of drug courts.
    (d) Matching Requirement.--Funds may not be provided to a State 
under this section unless the State agrees that, with respect to the 
costs to be incurred by the State in carrying out the drug treatment 
program involved, the State will make available (directly or through 
donations from public or private entities) non-Federal contributions 
toward such costs in an amount that is at least equal to the amount of 
Federal funds provided to the State under this section.
    (e) Authorization of Appropriations.--There is authorized to carry 
out this section, $250,000,000 for each of fiscal years 2002 through 
2006.

SEC. 7. STUDY BY THE GENERAL ACCOUNTING OFFICE.

    (a) In General.--The General Accounting Office shall conduct a 
study of the use of funds under this Act and the amendments made by 
this Act. In conducting such study, the Office shall make 
determinations as to whether such funding meets, exceeds, or falls 
short of the level of funding needed to provide substance abuse 
treatment to those in need.
    (b) Reports.--The General Accounting Office shall prepare and 
submit to the appropriate committees of Congress an interim and final 
report concerning the study conducted under subsection (a). The reports 
required under this subsection shall be submitted--
            (1) with respect to the interim report, not later than 2 
        years after the date of enactment of this Act; and
            (2) with respect to the final report, not later than 4 
        years after the date of enactment of this Act.

Summary: Treatment on Demand Assistance Act - Amends the Public Health Service Act to direct the Secretary of Health and Human Services, acting through the Director of the Center for Substance Abuse Treatment, to, for the purpose of providing substance abuse treatment services: (1) award grants, contracts, or cooperative agreements to public and private nonprofit entities, including Native Alaskan entities and Indian tribes and tribal organizations. And (2) award block grants to States. Requires giving priority in awarding grants to applicants proposing to eliminate waiting lists of treatment on demand programs. Directs the Attorney General, in consultation with the Secretary, shall award grants to eligible States to enable such States, either directly or through the provision of assistance to counties or local municipalities, to provide drug treatment services to individuals who have been convicted of non-violent drug possession offenses and diverted from incarceration because of the enrollment of such individuals into community-based drug treatment programs. Requires a study by the General Accounting Office of the use funds under this Act.