fied 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 State 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 subparagraph to supplement and not 
supplant other funds available to the entity for 
the provision of early intervention services for 
the fiscal year involved. 
‘‘(e) 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, a State 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, 
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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 a State a 
waiver of the requirement of paragraph (1) if such 
State demonstrates to the satisfaction of the Sec-
retary that the population is receiving HIV-related 
health services 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. 
‘‘(f) CONSTRUCTION.—A State may not use amounts 
received under a grant awarded under section 2611 to 
purchase or improve land, or to purchase, construct, or 
permanently improve (other than minor remodeling) any 
building or other facility, or to make cash payments to 
intended recipients of services.’’. 
(b) HIV CARE CONSORTIA.—Section 2613 of the 
Public Health Service Act (42 U.S.C. 300ff–23) is amend-
ed— 
(1) in subsection (a), in the matter preceding 
paragraph (1)— 
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(A) by striking ‘‘may use’’ and inserting 
‘‘may, subject to subsection (f), use’’; and 
(B) by striking ‘‘section 2612(a)(1)’’ and 
inserting ‘‘section 2612(a)’’; and 
(2) by adding at the end the following sub-
section: 
‘‘(f) ALLOCATION OF FUNDS; TREATMENT AS SUP-
PORT SERVICES.—For purposes of the requirement of sec-
tion 2612(b)(1), expenditures of grants under section 
2611 for or through consortia under this section are 
deemed to be support services, not core medical services. 
The preceding sentence may not be construed as having 
any legal effect on the provisions of subsection (a) that 
relate to authorized expenditures of the grant.’’. 
(c) TECHNICAL AMENDMENTS.—Part B of title 
XXVI of the Public Health Service Act (42 U.S.C. 300ff– 
21 et seq.) is amended— 
(1) in section 2611— 
(A) in subsection (a), by striking the sub-
section designation and heading; and 
(B) by striking subsection (b); 
(2) in section 2614— 
(A) in subsection (a), in the matter pre-
ceding paragraph (1), by striking ‘‘section 
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2612(a)(2)’’ 
and 
inserting 
‘‘section 
2612(b)(3)(J)’’; and 
(B) in subsection (c)(2)(B), by striking 
‘‘homemaker or’’; 
(3) in section 2615(a) by striking ‘‘section 
2612(a)(3)’’ and inserting ‘‘2612(b)(3)(F)’’; and 
(4) in section 2616(a) by striking ‘‘section 
2612(a)(5)’’ and inserting ‘‘2612(b)(3)(B)’’. 
SEC. 202. AIDS DRUG ASSISTANCE PROGRAM. 
(a) REQUIREMENT OF MINIMUM DRUG LIST.—Sec-
tion 2616 of the Public Health Service Act (42 U.S.C. 
300ff–26) is amended— 
(1) in subsection (c), by striking paragraph (1) 
and inserting the following: 
‘‘(1) ensure that the therapeutics included on 
the list of classes of core antiretroviral therapeutics 
established by the Secretary under subsection (e) 
are, at a minimum, the treatments provided by the 
State pursuant to this section;’’; 
(2) by redesignating subsection (e) as sub-
section (f); and 
(3) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) LIST OF CLASSES OF CORE ANTIRETROVIRAL 
THERAPEUTICS.—For purposes of subsection (c)(1), the 
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Secretary shall develop and maintain a list of classes of 
core antiretroviral therapeutics, which list shall be based 
on the therapeutics included in the guidelines of the Sec-
retary known as the Clinical Practice Guidelines for Use 
of HIV/AIDS Drugs, relating to drugs needed to manage 
symptoms associated with HIV. The preceding sentence 
does not affect the authority of the Secretary to modify 
such Guidelines.’’. 
(b) DRUG REBATE PROGRAM.—Section 2616 of the 
Public Health Service Act, as amended by subsection 
(a)(2) of this section, is amended by adding at the end 
the following: 
‘‘(g) DRUG REBATE PROGRAM.—A State shall ensure 
that any drug rebates received on drugs purchased from 
funds provided pursuant to this section are applied to ac-
tivities supported under this subpart, with priority given 
to activities described under this section.’’. 
SEC. 203. DISTRIBUTION OF FUNDS. 
(a) DISTRIBUTION BASED ON LIVING CASES OF HIV/ 
AIDS.— 
(1) STATE
DISTRIBUTION
FACTOR.—Section 
2618(a)(2) of the Public Health Service Act (42 
U.S.C. 300ff–28(a)(2)) is amended— 
(A) in subparagraph (B), by striking ‘‘esti-
mated number of living cases of acquired im-
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