qualified health centers, and entities described in 
section 2652(a) that constitute a point of access to 
services by maintaining referral relationships. 
‘‘(2) CONDITIONS.—With respect to an entity 
that proposes to provide early intervention services 
under paragraph (1), such paragraph shall apply 
only if the entity demonstrates to the satisfaction of 
the chief elected official for the eligible area involved 
that— 
‘‘(A) Federal, State, or local funds are oth-
erwise inadequate for the early intervention 
services the entity proposes to provide; and 
‘‘(B) the entity will expend funds pursuant 
to such paragraph to supplement and not sup-
plant other funds available to the entity for the 
provision of early intervention services for the 
fiscal year involved. 
‘‘(f) PRIORITY FOR WOMEN, INFANTS, CHILDREN, 
AND YOUTH.— 
‘‘(1) IN GENERAL.—For the purpose of pro-
viding health and support services to infants, chil-
dren, youth, and women with HIV/AIDS, including 
treatment measures to prevent the perinatal trans-
mission of HIV, the chief elected official of an eligi-
ble area, in accordance with the established priorities 
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of the planning council, shall for each of such popu-
lations in the eligible area use, from the grants made 
for the area under section 2601(a) for a fiscal year, 
not less than the percentage constituted by the ratio 
of the population involved (infants, children, youth, 
or women in such area) with HIV/AIDS to the gen-
eral population in such area of individuals with HIV/ 
AIDS. 
‘‘(2) WAIVER.—With respect to the population 
involved, the Secretary may provide to the chief 
elected official of an eligible area a waiver of the re-
quirement of paragraph (1) if such official dem-
onstrates to the satisfaction of the Secretary that 
the population is receiving HIV-related health serv-
ices through the State medicaid program under title 
XIX of the Social Security Act, the State children’s 
health insurance program under title XXI of such 
Act, or other Federal or State programs. 
‘‘(g) REQUIREMENT OF STATUS AS MEDICAID PRO-
VIDER.— 
‘‘(1) PROVISION OF SERVICE.—Subject to para-
graph (2), the Secretary may not make a grant 
under section 2601(a) for the provision of services 
under this section in a State unless, in the case of 
any such service that is available pursuant to the 
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State plan approved under title XIX of the Social 
Security Act for the State— 
‘‘(A) the political subdivision involved will 
provide the service directly, and the political 
subdivision has entered into a participation 
agreement under the State plan and is qualified 
to receive payments under such plan; or 
‘‘(B) the political subdivision will enter 
into an agreement with a public or nonprofit 
private entity under which the entity will pro-
vide the service, and the entity has entered into 
such a participation agreement and is qualified 
to receive such payments. 
‘‘(2) WAIVER.— 
‘‘(A) IN GENERAL.—In the case of an enti-
ty making an agreement pursuant to paragraph 
(1)(B) regarding the provision of services, the 
requirement established in such paragraph shall 
be waived by the HIV health services planning 
council for the eligible area if the entity does 
not, in providing health care services, impose a 
charge or accept reimbursement available from 
any third-party payor, including reimbursement 
under any insurance policy or under any Fed-
eral or State health benefits program. 
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‘‘(B) DETERMINATION.—A determination 
by the HIV health services planning council of 
whether an entity referred to in subparagraph 
(A) meets the criteria for a waiver under such 
subparagraph shall be made without regard to 
whether the entity accepts voluntary donations 
for the purpose of providing services to the pub-
lic. 
‘‘(h) ADMINISTRATION.— 
‘‘(1) LIMITATION.—The chief executive officer 
of an eligible area shall not use in excess of 10 per-
cent of amounts received under a grant under this 
part for administrative expenses. 
‘‘(2) ALLOCATIONS BY CHIEF EXECUTIVE OFFI-
CER.—In the case of entities and subcontractors to 
which the chief executive officer of an eligible area 
allocates amounts received by the officer under a 
grant under this part, the officer shall ensure that, 
of the aggregate amount so allocated, the total of 
the expenditures by such entities for administrative 
expenses does not exceed 10 percent (without regard 
to whether particular entities expend more than 10 
percent for such expenses). 
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‘‘(3) ADMINISTRATIVE
ACTIVITIES.—For pur-
poses of paragraph (1), amounts may be used for 
administrative activities that include— 
‘‘(A) routine grant administration and 
monitoring activities, including the development 
of applications for part A funds, the receipt and 
disbursal of program funds, the development 
and establishment of reimbursement and ac-
counting systems, the development of a clinical 
quality management program as described in 
paragraph (5), the preparation of routine pro-
grammatic and financial reports, and compli-
ance with grant conditions and audit require-
ments; and 
‘‘(B) all activities associated with the 
grantee’s contract award procedures, including 
the activities carried out by the HIV health 
services planning council as established under 
section 2602(b), the development of requests 
for proposals, contract proposal review activi-
ties, negotiation and awarding of contracts, 
monitoring of contracts through telephone con-
sultation, written documentation or onsite vis-
its, reporting on contracts, and funding re-
allocation activities. 
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