HR 6143 RFS
SEC. 206. EMERGING COMMUNITIES. 
Section 2621 of the Public Health Service Act, as re-
designated by section 205(1) of this Act, is amended— 
(1) in the heading for the section, by striking 
‘‘SUPPLEMENTAL
GRANTS’’ 
and 
inserting 
‘‘EMERGING COMMUNITIES’’; 
(2) in subsection (b)— 
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(B) by redesignating paragraph (3) as 
paragraph (4); and 
(C) by inserting after paragraph (2) the 
following: 
‘‘(3) agree that the grant will be used to pro-
vide funds directly to emerging communities in the 
State, separately from other funds under this title 
that are provided by the State to such communities; 
and’’. 
(3) by striking subsections (d) and (e) and in-
serting the following: 
‘‘(d) DEFINITIONS OF EMERGING COMMUNITY.—For 
purposes of this section, the term ‘emerging community’ 
means a metropolitan area (as defined in section 2607) 
for which there has been reported to and confirmed by 
the Director of the Centers for Disease Control and Pre-
vention a cumulative total of at least 500, but fewer than 
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1,000, cases of AIDS during the most recent period of 
5 calendar years for which such data are available. 
‘‘(e) CONTINUED STATUS
AS EMERGING COMMU-
NITY.—Notwithstanding any other provision of this sec-
tion, a metropolitan area that is an emerging community 
for a fiscal year continues to be an emerging community 
until the metropolitan area fails, for three consecutive fis-
cal years— 
‘‘(1) to meet the requirements of subsection (d); 
and 
‘‘(2) to have a cumulative total of 750 or more 
living cases of AIDS (reported to and confirmed by 
the Director of the Centers for Disease Control and 
Prevention) as of December 31 of the most recent 
calendar year for which such data is available. 
‘‘(f) DISTRIBUTION.—The amount of a grant under 
subsection (a) for a State for a fiscal year shall be an 
amount equal to the product of— 
‘‘(1) the amount available under section 
2623(b)(1) for the fiscal year; and 
‘‘(2) a percentage equal to the ratio constituted 
by the number of living cases of HIV/AIDS in 
emerging communities in the State to the sum of the 
respective numbers of such cases in such commu-
nities for all States.’’. 
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SEC. 207. TIMEFRAME FOR OBLIGATION AND EXPENDI-
TURE OF GRANT FUNDS. 
Subpart I of part B of title XXVI of the Public 
Health Service Act (42 U.S.C. 300ff-21 et seq.), as 
amended by section 205, is further amended by adding 
at the end the following: 
‘‘SEC. 2622. TIMEFRAME FOR OBLIGATION AND EXPENDI-
TURE OF GRANT FUNDS. 
‘‘(a) OBLIGATION BY END OF GRANT YEAR.—Effec-
tive for fiscal year 2007 and subsequent fiscal years, funds 
from a grant award made to a State for a fiscal year pur-
suant to section 2618(a)(1) or 2618(a)(2)(G), or under 
section 2620 or 2621, are available for obligation by the 
State through the end of the one-year period beginning 
on the date in such fiscal year on which funds from the 
award first become available to the State (referred to in 
this section as the ‘grant year for the award’), except as 
provided in subsection (c)(1). 
‘‘(b) SUPPLEMENTAL GRANTS; CANCELLATION OF 
UNOBLIGATED BALANCE OF GRANT AWARD.—Effective 
for fiscal year 2007 and subsequent fiscal years, if a grant 
award made to a State for a fiscal year pursuant to section 
2618(a)(2)(G)(ii), or under section 2620 or 2621, has an 
unobligated balance as of the end of the grant year for 
the award— 
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‘‘(1) the Secretary shall cancel that unobligated 
balance of the award, and shall require the State to 
return any amounts from such balance that have 
been disbursed to the State; and 
‘‘(2) the funds involved shall be made available 
by the Secretary as additional amounts for grants 
pursuant to section 2620 for the first fiscal year be-
ginning after the fiscal year in which the Secretary 
obtains the information necessary for determining 
that the balance is required under paragraph (1) to 
be canceled, except that the availability of the funds 
for such grants is subject to section 2618(a)(2)(H) 
as applied for such year. 
‘‘(c) FORMULA GRANTS; CANCELLATION OF UNOBLI-
GATED BALANCE OF GRANT AWARD; WAIVER PERMIT-
TING CARRYOVER.— 
‘‘(1) IN
GENERAL.—Effective for fiscal year 
2007 and subsequent fiscal years, if a grant award 
made to a State for a fiscal year pursuant to section 
2618(a)(1) or 2618(a)(2)(G)(i) has an unobligated 
balance as of the end of the grant year for the 
award, the Secretary shall cancel that unobligated 
balance of the award, and shall require the State to 
return any amounts from such balance that have 
been disbursed to the State, unless— 
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‘‘(A) before the end of the grant year, the 
State submits to the Secretary a written appli-
cation for a waiver of the cancellation, which 
application includes a description of the pur-
poses for which the State intends to expend the 
funds involved; and 
‘‘(B) the Secretary approves the waiver. 
‘‘(2) EXPENDITURE
BY
END
OF
CARRYOVER 
YEAR.—With respect to a waiver under paragraph 
(1) that is approved for a balance that is unobli-
gated as of the end of a grant year for an award: 
‘‘(A) The unobligated funds are available 
for expenditure by the State involved for the 
one-year period beginning upon the expiration 
of the grant year (referred to in this section as 
the ‘carryover year’). 
‘‘(B) If the funds are not expended by the 
end of the carryover year, the Secretary shall 
cancel that unexpended balance of the award, 
and shall require the State to return any 
amounts from such balance that have been dis-
bursed to the State. 
‘‘(3) USE OF CANCELLED BALANCES.—In the 
case of any balance of a grant award that is can-
celled under paragraph (1) or (2)(B), the grant 
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funds involved shall be made available by the Sec-
retary as additional amounts for grants under sec-
tion 2620 for the first fiscal year beginning after the 
fiscal year in which the Secretary obtains the infor-
mation necessary for determining that the balance is 
required under such paragraph to be canceled, ex-
cept that the availability of the funds for such 
grants is subject to section 2618(a)(2)(H) as applied 
for such year. 
‘‘(4) CORRESPONDING REDUCTION IN FUTURE 
GRANT.— 
‘‘(A) IN GENERAL.—In the case of a State 
for which a balance from a grant award made 
pursuant 
to 
section 
2618(a)(1) 
or 
2618(a)(2)(G)(i) is unobligated as of the end of 
the grant year for the award— 
‘‘(i) the Secretary shall reduce, by the 
same amount as such unobligated balance, 
the amount of the grant under such sec-
tion for the first fiscal year beginning after 
the fiscal year in which the Secretary ob-
tains the information necessary for deter-
mining that such balance was unobligated 
as of the end of the grant year (which re-
quirement for a reduction applies without 
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