the grant pursuant to paragraph (1) and 
the grant pursuant to subparagraph (G) is 
not less than 95 percent of such total for 
the State for the preceding fiscal year, ex-
cept that any increase under this clause— 
‘‘(I) may not result in a grant 
pursuant to paragraph (1) that is 
more than 95 percent of the amount 
of such grant for the preceding fiscal 
year; and 
‘‘(II) may not result in a grant 
pursuant to subparagraph (G) that is 
more than 95 percent of the amount 
of such grant for such preceding fiscal 
year. 
‘‘(ii) FISCAL
YEAR
2007.—For pur-
poses of clause (i) as applied for fiscal year 
2007, the references in such clause to sub-
paragraph (G) are deemed to be references 
to subparagraph (I) as such subparagraph 
was in effect for fiscal year 2006. 
‘‘(iii) SOURCE
OF
FUNDS
FOR
IN-
CREASE.— 
‘‘(I) IN
GENERAL.—From the 
amount 
reserved 
under 
section 
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2623(b)(2) for a fiscal year, and from 
amounts available for such section 
pursuant to subsection (d) of this sec-
tion, the Secretary shall make avail-
able such amounts as may be nec-
essary to comply with clause (i). 
‘‘(II) PRO RATA REDUCTION.—If 
the amounts referred to in subclause 
(I) for a fiscal year are insufficient to 
fully comply with clause (i) for the 
year, the Secretary, in order to pro-
vide the additional funds necessary for 
such compliance, shall reduce on a pro 
rata basis the amount of each grant 
pursuant to paragraph (1) for the fis-
cal year, other than grants for States 
for which increases under clause (i) 
apply and other than States described 
in paragraph (1)(A)(i)(I). A reduction 
under the preceding sentence may not 
be made in an amount that would re-
sult in the State involved becoming el-
igible for such an increase. 
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‘‘(iv) 
APPLICABILITY.—This 
para-
graph may not be construed as having any 
applicability after fiscal year 2009.’’. 
(e) ADMINISTRATIVE EXPENSES; CLINICAL QUALITY 
MANAGEMENT.—Section 2618(b) of the Public Health 
Service Act (42 U.S.C. 300ff–28(b)) is amended— 
(1) by redesignating paragraphs (2) through 
(7) as paragraphs (1) through (6); 
(2) in paragraph (2) (as so redesignated)— 
(A) by striking ‘‘paragraph (5)’’ and in-
serting ‘‘paragraph (4)’’; and 
(B) by striking ‘‘paragraph (6)’’ and in-
serting ‘‘paragraph (5)’’; 
(3) in paragraph (3) (as so redesignated)— 
(A) by amending subparagraph (A) to read 
as follows: 
‘‘(A) IN GENERAL.—Subject to paragraph 
(4,) and except as provided in paragraph (5), a 
State may not use more than 10 percent of 
amounts received under a grant awarded under 
section 2611 for administration.’’; 
(B) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), respec-
tively; 
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(C) by inserting after subparagraph (A) 
the following: 
‘‘(B) ALLOCATIONS.—In the case of enti-
ties and subcontractors to which a State allo-
cates amounts received by the State under a 
grant under section 2611, the State shall en-
sure that, of the aggregate amount so allocated, 
the total of the expenditures by such entities for 
administrative expenses does not exceed 10 per-
cent (without regard to whether particular enti-
ties expend more than 10 percent for such ex-
penses).’’; 
(D) in subparagraph (C) (as so redesig-
nated), by inserting before the period the fol-
lowing: ‘‘, including a clinical quality manage-
ment program under subparagraph (E)’’; and 
(E) by adding at the end the following: 
‘‘(E) CLINICAL QUALITY MANAGEMENT.— 
‘‘(i) REQUIREMENT.—Each State that 
receives a grant under section 2611 shall 
provide for the establishment of a clinical 
quality management program to assess the 
extent to which HIV health services pro-
vided to patients under the grant are con-
sistent with the most recent Public Health 
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Service guidelines for the treatment of 
HIV/AIDS and related opportunistic infec-
tion, and as applicable, to develop strate-
gies for ensuring that such services are 
consistent with the guidelines for improve-
ment in the access to and quality of HIV 
health services. 
‘‘(ii) USE OF FUNDS.— 
‘‘(I) 
IN
GENERAL.—From 
amounts received under a grant 
awarded under section 2611 for a fis-
cal year, a State may use for activities 
associated with the clinical quality 
management program required in 
clause (i) not to exceed the lesser of— 
‘‘(aa) 5 percent of amounts 
received under the grant; or 
‘‘(bb) $3,000,000. 
‘‘(II) RELATION TO LIMITATION 
ON ADMINISTRATIVE EXPENSES.—The 
costs of a clinical quality management 
program under clause (i) may not be 
considered administrative expenses for 
purposes of the limitation established 
in subparagraph (A).’’; 
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