[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6164 Enrolled Bill (ENR)]


        H.R.6164

                       One Hundred Ninth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
             the third day of January, two thousand and six


                                 An Act


 
To amend title IV of the Public Health Service Act to revise and extend 
  the authorities of the National Institutes of Health, and for other 
                                purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Institutes of Health Reform 
Act of 2006''.

                          TITLE I--NIH REFORM

SEC. 101. ORGANIZATION OF NATIONAL INSTITUTES OF HEALTH.

    (a) In General.--Section 401 of the Public Health Service Act (42 
U.S.C. 281) is amended to read as follows:

``SEC. 401. ORGANIZATION OF NATIONAL INSTITUTES OF HEALTH.

    ``(a) Relation to Public Health Service.--The National Institutes 
of Health is an agency of the Service.
    ``(b) National Research Institutes and National Centers.--The 
following agencies of the National Institutes of Health are national 
research institutes or national centers:
        ``(1) The National Cancer Institute.
        ``(2) The National Heart, Lung, and Blood Institute.
        ``(3) The National Institute of Diabetes and Digestive and 
    Kidney Diseases.
        ``(4) The National Institute of Arthritis and Musculoskeletal 
    and Skin Diseases.
        ``(5) The National Institute on Aging.
        ``(6) The National Institute of Allergy and Infectious 
    Diseases.
        ``(7) The National Institute of Child Health and Human 
    Development.
        ``(8) The National Institute of Dental and Craniofacial 
    Research.
        ``(9) The National Eye Institute.
        ``(10) The National Institute of Neurological Disorders and 
    Stroke.
        ``(11) The National Institute on Deafness and Other 
    Communication Disorders.
        ``(12) The National Institute on Alcohol Abuse and Alcoholism.
        ``(13) The National Institute on Drug Abuse.
        ``(14) The National Institute of Mental Health.
        ``(15) The National Institute of General Medical Sciences.
        ``(16) The National Institute of Environmental Health Sciences.
        ``(17) The National Institute of Nursing Research.
        ``(18) The National Institute of Biomedical Imaging and 
    Bioengineering.
        ``(19) The National Human Genome Research Institute.
        ``(20) The National Library of Medicine.
        ``(21) The National Center for Research Resources.
        ``(22) The John E. Fogarty International Center for Advanced 
    Study in the Health Sciences.
        ``(23) The National Center for Complementary and Alternative 
    Medicine.
        ``(24) The National Center on Minority Health and Health 
    Disparities.
        ``(25) Any other national center that, as an agency separate 
    from any national research institute, was established within the 
    National Institutes of Health as of the day before the date of the 
    enactment of the National Institutes of Health Reform Act of 2006.
    ``(c) Division of Program Coordination, Planning, and Strategic 
Initiatives.--
        ``(1) In general.--Within the Office of the Director of the 
    National Institutes of Health, there shall be a Division of Program 
    Coordination, Planning, and Strategic Initiatives (referred to in 
    this subsection as the `Division').
        ``(2) Offices within division.--
            ``(A) Offices.--The following offices are within the 
        Division: The Office of AIDS Research, the Office of Research 
        on Women's Health, the Office of Behavioral and Social Sciences 
        Research, the Office of Disease Prevention, the Office of 
        Dietary Supplements, the Office of Rare Diseases, and any other 
        office located within the Office of the Director of NIH as of 
        the day before the date of the enactment of the National 
        Institutes of Health Reform Act of 2006. In addition to such 
        offices, the Director of NIH may establish within the Division 
        such additional offices or other administrative units as the 
        Director determines to be appropriate.
            ``(B) Authorities.--Each office in the Division--
                ``(i) shall continue to carry out the authorities that 
            were in effect for the office before the date of enactment 
            referred to in subparagraph (A); and
                ``(ii) shall, as determined appropriate by the Director 
            of NIH, support the Division with respect to the 
            authorities described in section 402(b)(7).
    ``(d) Organization.--
        ``(1) Number of institutes and centers.--In the National 
    Institutes of Health, the number of national research institutes 
    and national centers may not exceed a total of 27, including any 
    such institutes or centers established under authority of paragraph 
    (2) or under authority of this title as in effect on the day before 
    the date of the enactment of the National Institutes of Health 
    Reform Act of 2006.''.
    (b) Additional Provisions Regarding Organization.--Section 401 of 
the Public Health Service Act, as added by subsection (a) of this 
section, is amended--
        (1) in subsection (d), by adding at the end the following:
        ``(3) Reorganization of office of director.--Notwithstanding 
    subsection (c), the Director of NIH may, after a series of public 
    hearings, and with the approval of the Secretary, reorganize the 
    offices within the Office of the Director, including the addition, 
    removal, or transfer of functions of such offices, and the 
    establishment or termination of such offices, if the Director 
    determines that the overall management and operation of programs 
    and activities conducted or supported by such offices would be more 
    efficiently carried out under such a reorganization.
        ``(4) Internal reorganization of institutes and centers.--
    Notwithstanding any conflicting provisions of this title, the 
    director of a national research institute or a national center may, 
    after a series of public hearings and with the approval of the 
    Director of NIH, reorganize the divisions, centers, or other 
    administrative units within such institute or center, including the 
    addition, removal, or transfer of functions of such units, and the 
    establishment or termination of such units, if the director of such 
    institute or center determines that the overall management and 
    operation of programs and activities conducted or supported by such 
    divisions, centers, or other units would be more efficiently 
    carried out under such a reorganization.''; and
        (2) by adding after subsection (d) the following:
    ``(e) Scientific Management Review Board for Periodic 
Organizational Reviews.--
        ``(1) In general.--Not later than 60 days after the date of the 
    enactment of the National Institutes of Health Reform Act of 2006, 
    the Secretary shall establish an advisory council within the 
    National Institutes of Health to be known as the Scientific 
    Management Review Board (referred to in this subsection as the 
    `Board').
        ``(2) Duties.--
            ``(A) Reports on organizational issues.--The Board shall 
        provide advice to the appropriate officials under subsection 
        (d) regarding the use of the authorities established in 
        paragraphs (2), (3), and (4) of such subsection to reorganize 
        the National Institutes of Health (referred to in this 
        subsection as `organizational authorities'). Not less 
        frequently than once each 7 years, the Board shall--
                ``(i) determine whether and to what extent the 
            organizational authorities should be used; and
                ``(ii) issue a report providing the recommendations of 
            the Board regarding the use of the authorities and the 
            reasons underlying the recommendations.
            ``(B) Certain responsibilities regarding reports.--The 
        activities of the Board with respect to a report under 
        subparagraph (A) shall include the following:
                ``(i) Reviewing the research portfolio of the National 
            Institutes of Health (referred to in this subsection as 
            `NIH') in order to determine the progress and effectiveness 
            and value of the portfolio and the allocation among the 
            portfolio activities of the resources of NIH.
                ``(ii) Determining pending scientific opportunities, 
            and public health needs, with respect to research within 
            the jurisdiction of NIH.
                ``(iii) For any proposal for organizational changes to 
            which the Board gives significant consideration as a 
            possible recommendation in such report--

                    ``(I) analyzing the budgetary and operational 
                consequences of the proposed changes;
                    ``(II) taking into account historical funding and 
                support for research activities at national research 
                institutes and centers that have been established 
                recently relative to national research institutes and 
                centers that have been in existence for more than two 
                decades;
                    ``(III) estimating the level of resources needed to 
                implement the proposed changes;
                    ``(IV) assuming the proposed changes will be made 
                and making a recommendation for the allocation of the 
                resources of NIH among the national research institutes 
                and national centers; and
                    ``(V) analyzing the consequences for the progress 
                of research in the areas affected by the proposed 
                changes.

            ``(C) Consultation.--In carrying out subparagraph (A), the 
        Board shall consult with--
                ``(i) the heads of national research institutes and 
            national centers whose directors are not members of the 
            Board;
                ``(ii) other scientific leaders who are officers or 
            employees of NIH and are not members of the Board;
                ``(iii) advisory councils of the national research 
            institutes and national centers;
                ``(iv) organizations representing the scientific 
            community; and
                ``(v) organizations representing patients.
        ``(3) Composition of board.--The Board shall consist of the 
    Director of NIH, who shall be a permanent nonvoting member on an ex 
    officio basis, and an odd number of additional members, not to 
    exceed 21, all of whom shall be voting members. The voting members 
    of the Board shall be the following:
            ``(A) Not fewer than 9 officials who are directors of 
        national research institutes or national centers. The Secretary 
        shall designate such officials for membership and shall ensure 
        that the group of officials so designated includes directors 
        of--
                ``(i) national research institutes whose budgets are 
            substantial relative to a majority of the other institutes;
                ``(ii) national research institutes whose budgets are 
            small relative to a majority of the other institutes;
                ``(iii) national research institutes that have been in 
            existence for a substantial period of time without 
            significant organizational change under subsection (d);
                ``(iv) as applicable, national research institutes that 
            have undergone significant organization changes under such 
            subsection, or that have been established under such 
            subsection, other than national research institutes for 
            which such changes have been in place for a substantial 
            period of time; and
                ``(v) national centers.
            ``(B) Members appointed by the Secretary from among 
        individuals who are not officers or employees of the United 
        States. Such members shall include--
                ``(i) individuals representing the interests of public 
            or private institutions of higher education that have 
            historically received funds from NIH to conduct research; 
            and
                ``(ii) individuals representing the interests of 
            private entities that have received funds from NIH to 
            conduct research or that have broad expertise regarding how 
            the National Institutes of Health functions, exclusive of 
            private entities to which clause (i) applies.
        ``(4) Chair.--The Chair of the Board shall be selected by the 
    Secretary from among the members of the Board appointed under 
    paragraph (3)(B). The term of office of the Chair shall be 2 years.
        ``(5) Meetings.--
            ``(A) In general.--The Board shall meet at the call of the 
        Chair or upon the request of the Director of NIH, but not fewer 
        than 5 times with respect to issuing any particular report 
        under paragraph (2)(A). The location of the meetings of the 
        Board is subject to the approval of the Director of NIH.
            ``(B) Particular forums.--Of the meetings held under 
        subparagraph (A) with respect to a report under paragraph 
        (2)(A)--
                ``(i) one or more shall be directed toward the 
            scientific community to address scientific needs and 
            opportunities related to proposals for organizational 
            changes under subsection (d), or as the case may be, 
            related to a proposal that no such changes be made; and
                ``(ii) one or more shall be directed toward consumer 
            organizations to address the needs and opportunities of 
            patients and their families with respect to proposals 
            referred to in clause (i).
            ``(C) Availability of information from forums.--For each 
        meeting under subparagraph (B), the Director of NIH shall post 
        on the Internet site of the National Institutes of Health a 
        summary of the proceedings.
        ``(6) Compensation; term of office.--The provisions of 
    subsections (b)(4) and (c) of section 406 apply with respect to the 
    Board to the same extent and in the same manner as such provisions 
    apply with respect to an advisory council referred to in such 
    subsections, except that the reference in such subsection (c) to 4 
    years regarding the term of an appointed member is deemed to be a 
    reference to 5 years.
        ``(7) Reports.--
            ``(A) Recommendations for changes.--Each report under 
        paragraph (2)(A) shall be submitted to--
                ``(i) the Committee on Energy and Commerce and the 
            Committee on Appropriations of the House of 
            Representatives;
                ``(ii) the Committee on Health, Education, Labor, and 
            Pensions and the Committee on Appropriations of the Senate;
                ``(iii) the Secretary; and
                ``(iv) officials with organizational authorities, other 
            than any such official who served as a member of the Board 
            with respect to the report involved.
            ``(B) Availability to public.--The Director of NIH shall 
        post each report under paragraph (2) on the Internet site of 
        the National Institutes of Health.
            ``(C) Report on board activities.--Not later than 18 months 
        after the date of the enactment of the National Institutes of 
        Health Reform Act of 2006, the Board shall submit to the 
        committees specified in subparagraph (A) a report describing 
        the activities of the Board.
    ``(f) Organizational Changes per Recommendation of Scientific 
Management Review Board.--
        ``(1) In general.--With respect to an official who has 
    organizational authorities within the meaning of subsection 
    (e)(2)(A), if a recommendation to the official for an 
    organizational change is made in a report under such subsection, 
    the official shall, except as provided in paragraphs (2), (3), and 
    (4) of this subsection, make the change in accordance with the 
    following:
            ``(A) Not later than 100 days after the report is submitted 
        under subsection (e)(7)(A), the official shall initiate the 
        applicable public process required in subsection (d) toward 
        making the change.
            ``(B) The change shall be fully implemented not later than 
        the expiration of the 3-year period beginning on the date on 
        which such process is initiated.
        ``(2) Inapplicability to certain reorganizations.--Paragraph 
    (1) does not apply to a recommendation made in a report under 
    subsection (e)(2)(A) if the recommendation is for--
            ``(A) an organizational change under subsection (d)(2) that 
        constitutes the establishment, termination, or consolidation of 
        one or more national research institutes or national centers; 
        or
            ``(B) an organizational change under subsection (d)(3).
        ``(3) Objection by director of nih.--
            ``(A) In general.--Paragraph (1) does not apply to a 
        recommendation for an organizational change made in a report 
        under subsection (e)(2)(A) if, not later than 90 days after the 
        report is submitted under subsection (e)(7)(A), the Director of 
        NIH submits to the committees specified in such subsection a 
        report providing that the Director objects to the change, which 
        report includes the reasons underlying the objection.
            ``(B) Scope of objection.--For purposes of subparagraph 
        (A), an objection by the Director of NIH may be made to the 
        entirety of a recommended organizational change or to 1 or more 
        aspects of the change. Any aspect of a change not objected to 
        by the Director in a report under subparagraph (A) shall be 
        implemented in accordance with paragraph (1).
        ``(4) Congressional review.--An organizational change under 
    subsection (d)(2) that is initiated pursuant to paragraph (1) shall 
    be carried out by regulation in accordance with the procedures for 
    substantive rules under section 553 of title 5, United States Code. 
    A rule under the preceding sentence shall be considered a major 
    rule for purposes of chapter 8 of such title (relating to 
    congressional review of agency rulemaking).
    ``(g) Definitions.--For purposes of this title:
        ``(1) The term `Director of NIH' means the Director of the 
    National Institutes of Health.
        ``(2) The terms `national research institute' and `national 
    center' mean an agency of the National Institutes of Health that 
    is--
            ``(A) listed in subsection (b) and not terminated under 
        subsection (d)(2)(A); or
            ``(B) established by the Director of NIH under such 
        subsection.
    ``(h) References to NIH.--For purposes of this title, a reference 
to the National Institutes of Health includes its agencies.''.
    (c) Conforming Amendments.--Title IV of the Public Health Service 
Act (42 U.S.C. 281 et seq.) is amended--
        (1) by redesignating subpart 3 of part E as subpart 19;
        (2) by transferring subpart 19, as so redesignated, to part C 
    of such title IV;
        (3) by inserting subpart 19, as so redesignated, after subpart 
    18 of such part C; and
        (4) in subpart 19, as so redesignated--
            (A) by redesignating section 485B as section 464z-1;
            (B) by striking ``National Center for Human Genome 
        Research'' each place such term appears and inserting 
        ``National Human Genome Research Institute''; and
            (C) by striking ``Center'' each place such term appears and 
        inserting ``Institute''.

SEC. 102. AUTHORITY OF DIRECTOR OF NIH.

    (a) Secretary Acting Through the Director.--Section 402(b) of the 
Public Health Service Act (42 U.S.C. 282(b)) is amended--
        (1) by redesignating paragraph (14) as paragraph (22);
        (2) by striking paragraphs (12) and (13);
        (3) by redesignating paragraphs (4) through (11) as paragraphs 
    (14) through (21);
        (4) in paragraph (21) (as so redesignated), by inserting 
    ``and'' after the semicolon at the end;
        (5) in the matter after and below paragraph (22) (as so 
    redesignated), by striking ``paragraph (6)'' and inserting 
    ``paragraph (16)''; and
        (6) by striking ``the Secretary'' in the matter preceding 
    paragraph (1) and all that follows through paragraph (1) and 
    inserting the following: ``the Secretary, acting through the 
    Director of NIH--
        ``(1) shall carry out this title, including being responsible 
    for the overall direction of the National Institutes of Health and 
    for the establishment and implementation of general policies 
    respecting the management and operation of programs and activities 
    within the National Institutes of Health;''.
    (b) Additional Authorities.--Section 402(b) of the Public Health 
Service Act, as amended by subsection (a) of this section, is amended 
by striking paragraphs (2) and (3) and inserting the following:
        ``(2) shall coordinate and oversee the operation of the 
    national research institutes, national centers, and administrative 
    entities within the National Institutes of Health;
        ``(3) shall, in consultation with the heads of the national 
    research institutes and national centers, be responsible for 
    program coordination across the national research institutes and 
    national centers, including conducting priority-setting reviews, to 
    ensure that the research portfolio of the National Institutes of 
    Health is balanced and free of unnecessary duplication, and takes 
    advantage of collaborative, cross-cutting research;
        ``(4) shall assemble accurate data to be used to assess 
    research priorities, including information to better evaluate 
    scientific opportunity, public health burdens, and progress in 
    reducing health disparities;
        ``(5) shall ensure that scientifically based strategic planning 
    is implemented in support of research priorities as determined by 
    the agencies of the National Institutes of Health;
        ``(6) shall ensure that the resources of the National 
    Institutes of Health are sufficiently allocated for research 
    projects identified in strategic plans;
        ``(7)(A) shall, through the Division of Program Coordination, 
    Planning, and Strategic Initiatives--
            ``(i) identify research that represents important areas of 
        emerging scientific opportunities, rising public health 
        challenges, or knowledge gaps that deserve special emphasis and 
        would benefit from conducting or supporting additional research 
        that involves collaboration between 2 or more national research 
        institutes or national centers, or would otherwise benefit from 
        strategic coordination and planning;
            ``(ii) include information on such research in reports 
        under section 403; and
            ``(iii) in the case of such research supported with funds 
        referred to in subparagraph (B)--
                ``(I) require as appropriate that proposals include 
            milestones and goals for the research;
                ``(II) require that the proposals include timeframes 
            for funding of the research; and
                ``(III) ensure appropriate consideration of proposals 
            for which the principal investigator is an individual who 
            has not previously served as the principal investigator of 
            research conducted or supported by the National Institutes 
            of Health;
        ``(B) may, with respect to funds reserved under section 
    402A(c)(1) for the Common Fund, allocate such funds to the national 
    research institutes and national centers for conducting and 
    supporting research that is identified under subparagraph (A); and
        ``(C) may assign additional functions to the Division in 
    support of responsibilities identified in subparagraph (A), as 
    determined appropriate by the Director;
        ``(8) shall, in coordination with the heads of the national 
    research institutes and national centers, ensure that such 
    institutes and centers--
            ``(A) preserve an emphasis on investigator-initiated 
        research project grants, including with respect to research 
        involving collaboration between 2 or more such institutes or 
        centers; and
            ``(B) when appropriate, maximize investigator-initiated 
        research project grants in their annual research portfolios;
        ``(9) shall ensure that research conducted or supported by the 
    National Institutes of Health is subject to review in accordance 
    with section 492 and that, after such review, the research is 
    reviewed in accordance with section 492A(a)(2) by the appropriate 
    advisory council under section 406 before the research proposals 
    are approved for funding;
        ``(10) shall have authority to review and approve the 
    establishment of all centers of excellence recommended by the 
    national research institutes;
        ``(11)(A) shall oversee research training for all of the 
    national research institutes and National Research Service Awards 
    in accordance with section 487; and
        ``(B) may conduct and support research training--
            ``(i) for which fellowship support is not provided under 
        section 487; and
            ``(ii) that does not consist of residency training of 
        physicians or other health professionals;
        ``(12) may, from funds appropriated under section 402A(b), 
    reserve funds to provide for research on matters that have not 
    received significant funding relative to other matters, to respond 
    to new issues and scientific emergencies, and to act on research 
    opportunities of high priority;
        ``(13) may, subject to appropriations Acts, collect and retain 
    registration fees obtained from third parties to defray expenses 
    for scientific, educational, and research-related conferences;''.
    (c) Certain Authorities.--Section 402 of the Public Health Service 
Act (42 U.S.C. 282) is amended--
        (1) by striking subsections (i) and (l); and
        (2) by redesignating subsections (j) and (k) as subsections (i) 
    and (j), respectively.
    (d) Advisory Council for Director of NIH.--Section 402 of the 
Public Health Service Act, as amended by subsection (c) of this 
section, is amended by adding after subsection (j) the following 
subsection:
    ``(k) Council of Councils.--
        ``(1) Establishment.--Not later than 90 days after the date of 
    the enactment of the National Institutes of Health Reform Act of 
    2006, the Director of NIH shall establish within the Office of the 
    Director an advisory council to be known as the `Council of 
    Councils' (referred to in this subsection as the `Council') for the 
    purpose of advising the Director on matters related to the policies 
    and activities of the Division of Program Coordination, Planning, 
    and Strategic Initiatives, including making recommendations with 
    respect to the conduct and support of research described in 
    subsection (b)(7).
        ``(2) Membership.--
            ``(A) In general.--The Council shall be composed of 27 
        members selected by the Director of NIH with approval from the 
        Secretary from among the list of nominees under subparagraph 
        (C).
            ``(B) Certain requirements.--In selecting the members of 
        the Council, the Director of NIH shall ensure--
                ``(i) the representation of a broad range of 
            disciplines and perspectives; and
                ``(ii) the ongoing inclusion of at least 1 
            representative from each national research institute whose 
            budget is substantial relative to a majority of the other 
            institutes.
            ``(C) Nomination.--The Director of NIH shall maintain an 
        updated list of individuals who have been nominated to serve on 
        the Council, which list shall consist of the following:
                ``(i) For each national research institute and national 
            center, 3 individuals nominated by the head of such 
            institute or center from among the members of the advisory 
            council of the institute or center, of which--

                    ``(I) two shall be scientists; and
                    ``(II) one shall be from the general public or 
                shall be a leader in the field of public policy, law, 
                health policy, economics, or management.

                ``(ii) For each office within the Division of Program 
            Coordination, Planning, and Strategic Initiatives, 1 
            individual nominated by the head of such office.
                ``(iii) Members of the Council of Public 
            Representatives.
        ``(3) Terms.--
            ``(A) In general.--The term of service for a member of the 
        Council shall be 6 years, except as provided in subparagraphs 
        (B) and (C).
            ``(B) Terms of initial appointees.--Of the initial members 
        selected for the Council, the Director of NIH shall designate--
                ``(i) nine for a term of 6 years;
                ``(ii) nine for a term of 4 years; and
                ``(iii) nine for a term of 2 years.
            ``(C) Vacancies.--Any member appointed to fill a vacancy 
        occurring before the expiration of the term for which the 
        member's predecessor was appointed shall be appointed only for 
        the remainder of that term. A member may serve after the 
        expiration of that member's term until a successor has taken 
        office.''.
    (e) Review by Advisory Councils of Research Proposals.--Section 
492A(a)(2) of the Public Health Service Act (42 U.S.C. 289a-1(a)(2)) is 
amended by inserting before the period the following: ``, and unless a 
majority of the voting members of the appropriate advisory council 
under section 406, or as applicable, of the advisory council under 
section 402(k), has recommended the proposal for approval''.
    (f) Conforming Amendments.--
        (1) Public health service act.--The Public Health Service Act 
    (42 U.S.C. 201 et seq.) is amended--
            (A) in section 402(a), by striking ``Director of the 
        National Institutes of Health'' and all that follows through 
        ``who shall'' and inserting ``Director of NIH who shall''; and
            (B) in sections 405(c)(3)(A), 452(c)(1)(E)(i), and 
        492(a)(2), by striking the term ``402(b)(6)'' each place such 
        term appears and inserting ``402(b)(16)''.
        (2) Federal food, drug, and cosmetic act.--Section 561(c) of 
    the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 360bbb) is 
    amended in the matter following paragraph (7) by striking 
    ``402(j)(3)'' and inserting ``402(i)(3)''.
    (g) Rule of Construction Regarding Authorities of National Research 
Institutes and National Centers.--This Act and the amendments made by 
this Act may not be construed as affecting the authorities of the 
national research institutes and national centers that were in effect 
under the Public Health Service Act on the day before the date of the 
enactment of this Act, subject to the authorities of the Secretary of 
Health and Human Services and the Director of NIH under section 401 of 
the Public Health Service Act (as amended by section 101 of this Act). 
For purposes of the preceding sentence, the terms ``national research 
institute'', ``national center'', and ``Director of NIH'' have the 
meanings given such terms in such section 401.

SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

    (a) Funding.--Title IV of the Public Health Service Act (42 U.S.C. 
281 et seq.) is amended by inserting after section 402 the following:

``SEC. 402A. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--For the purpose of carrying out this title, 
there are authorized to be appropriated--
        ``(1) $30,331,309,000 for fiscal year 2007;
        ``(2) $32,831,309,000 for fiscal year 2008; and
        ``(3) such sums as may be necessary for fiscal year 2009.
    ``(b) Office of the Director.--Of the amount authorized to be 
appropriated under subsection (a) for a fiscal year, there are 
authorized to be appropriated for programs and activities under this 
title carried out through the Office of the Director of NIH such sums 
as may be necessary for each of the fiscal years 2007 through 2009.
    ``(c) Trans-NIH Research.--
        ``(1) Common fund.--
            ``(A) Account.--For the purpose of allocations under 
        section 402(b)(7)(B) (relating to research identified by the 
        Division of Program Coordination, Planning, and Strategic 
        Initiatives), there is established an account to be known as 
        the Common Fund.
            ``(B) Reservation.--
                ``(i) In general.--Of the total amount appropriated 
            under subsection (a) for fiscal year 2007 or any subsequent 
            fiscal year, the Director of NIH shall reserve an amount 
            for the Common Fund, subject to any applicable provisions 
            in appropriations Acts.
                ``(ii) Minimum amount.--For each fiscal year, the 
            percentage constituted by the amount reserved under clause 
            (i) relative to the total amount appropriated under 
            subsection (a) for such year may not be less than the 
            percentage constituted by the amount so reserved for the 
            preceding fiscal year relative to the total amount 
            appropriated under subsection (a) for such preceding fiscal 
            year, subject to any applicable provisions in 
            appropriations Acts.
            ``(C) Common fund strategic planning report.--Not later 
        than June 1, 2007, and every 2 years thereafter, the Secretary, 
        acting through the Director of NIH, shall submit a report to 
        the Congress containing a strategic plan for funding research 
        described in section 402(b)(7)(A)(i) (including personnel 
        needs) through the Common Fund. Each such plan shall include 
        the following:
                ``(i) An estimate of the amounts determined by the 
            Director of NIH to be appropriate for maximizing the 
            potential of such research.
                ``(ii) An estimate of the amounts determined by the 
            Director of NIH to be sufficient only for continuing to 
            fund research activities previously identified by the 
            Division of Program Coordination, Planning, and Strategic 
            Initiatives.
                ``(iii) An estimate of the amounts determined by the 
            Director of NIH to be necessary to fund research described 
            in section 402(b)(7)(A)(i)--

                    ``(I) that is in addition to the research 
                activities described in clause (ii); and
                    ``(II) for which there is the most substantial 
                need.

            ``(D) Evaluation.--During the 6-month period following the 
        end of the first fiscal year for which the total amount 
        reserved under subparagraph (B) is equal to 5 percent of the 
        total amount appropriated under subsection (a) for such fiscal 
        year, the Secretary, acting through the Director of NIH, in 
        consultation with the advisory council established under 
        section 402(k), shall submit recommendations to the Congress 
        for changes regarding amounts for the Common Fund.
        ``(2) Trans-nih research reporting.--
            ``(A) Limitation.--With respect to the total amount 
        appropriated under subsection (a) for fiscal year 2008 or any 
        subsequent fiscal year, if the head of a national research 
        institute or national center fails to submit the report 
        required by subparagraph (B) for the preceding fiscal year, the 
        amount made available for the institute or center for the 
        fiscal year involved may not exceed the amount made available 
        for the institute or center for fiscal year 2006.
            ``(B) Reporting.--Not later than January 1, 2008, and each 
        January 1st thereafter--
                ``(i) the head of each national research institute or 
            national center shall submit to the Director of NIH a 
            report on the amount made available by the institute or 
            center for conducting or supporting research that involves 
            collaboration between the institute or center and 1 or more 
            other national research institutes or national centers; and
                ``(ii) the Secretary shall submit a report to the 
            Congress identifying the percentage of funds made available 
            by each national research institute and national center 
            with respect to such fiscal year for conducting or 
            supporting research described in clause (i).
            ``(C) Determination.--For purposes of determining the 
        amount or percentage of funds to be reported under subparagraph 
        (B), any amounts made available to an institute or center under 
        section 402(b)(7)(B) shall be included.
            ``(D) Verification of amounts.--Upon receipt of each report 
        submitted under subparagraph (B)(i), the Director of NIH shall 
        review and, in cases of discrepancy, verify the accuracy of the 
        amounts specified in the report.
            ``(E) Waiver.--At the request of any national research 
        institute or national center, the Director of NIH may waive the 
        application of this paragraph to such institute or center if 
        the Director finds that the conduct or support of research 
        described in subparagraph (B)(i) is inconsistent with the 
        mission of such institute or center.
    ``(d) Transfer Authority.--Of the total amount appropriated under 
subsection (a) for a fiscal year, the Director of NIH may (in addition 
to the reservation under subsection (c)(1) for such year) transfer not 
more than 1 percent for programs or activities that are authorized in 
this title and identified by the Director to receive funds pursuant to 
this subsection. In making such transfers, the Director may not 
decrease any appropriation account under subsection (a) by more than 1 
percent.
    ``(e) Rule of Construction.--This section may not be construed as 
affecting the authorities of the Director of NIH under section 401.''.
    (b) Elimination of Other Authorizations of Appropriations.--Title 
IV of the Public Health Service Act (42 U.S.C. 281 et seq.) is 
amended--
        (1) by striking the first sentence of paragraph (5) of section 
    402(i) (as redesignated by section 102(b));
        (2) by striking subsection (e) of section 403A;
        (3) by striking subsection (c) of section 404B;
        (4) by striking subsection (h) of section 404E;
        (5) by striking subsection (d) of section 404F;
        (6) by striking subsection (e) of section 404G;
        (7) by striking subsection (d) of section 409A;
        (8) in section 409B--
            (A) in subsection (a), by striking ``under subsection (e)'' 
        and inserting ``to carry out this section''; and
            (B) by striking subsection (e);
        (9) by striking subsection (e) of section 409C;
        (10) in section 409D--
            (A) by striking subsection (d); and
            (B) by redesignating subsection (e) as subsection (d);
        (11) by striking subsection (e) of section 409E;
        (12) by striking subsection (c) of section 409F;
        (13) in section 409H, by striking--
            (A) paragraph (3) of subsection (a);
            (B) paragraph (3) of subsection (b);
            (C) paragraph (5) of subsection (c); and
            (D) paragraph (4) of subsection (d);
        (14) by striking subsection (d) of section 409I;
        (15) by striking section 417B;
        (16) by striking subsection (g) of section 417C;
        (17) in section 417D, by striking--
            (A) paragraph (3) of subsection (a); and
            (B) paragraph (3) of subsection (b);
        (18) by striking subsection (d) of section 424A;
        (19) by striking subsection (c) of section 424B;
        (20) by striking section 425;
        (21) by striking subsection (d) of section 434A;
        (22) by striking subsection (d) of section 441A;
        (23) by striking subsection (c) of section 442A;
        (24) in section 445H--
            (A) by striking subsection (b); and
            (B) in subsection (a), by striking ``(a)'';
        (25) by striking subsection (d) of section 445I;
        (26) by striking section 445J;
        (27) in section 447A--
            (A) by striking subsection (b); and
            (B) in subsection (a), by striking ``(a)'';
        (28) by striking subsection (d) of section 447B;
        (29) by striking subsection (g) in section 452A;
        (30) by striking paragraph (7) in section 452E(b);
        (31) in section 452G--
            (A) by striking subsection (b); and
            (B) in subsection (a), by striking ``(a) Enhanced 
        Support.--'';
        (32) by striking subsection (d) of section 464H;
        (33) by striking subsection (d) of section 464L;
        (34) by striking paragraph (4) of section 464N(c);
        (35) by striking subsection (e) of section 464P;
        (36) by striking subsection (f) of section 464R;
        (37) by striking subsection (d) of section 464z;
        (38) in section 467--
            (A) by striking the first sentence;
            (B) by striking ``for such buildings and facilities'' and 
        inserting ``for suitable and adequate buildings and facilities 
        for use of the Library''; and
            (C) by striking ``The amounts authorized to be appropriated 
        by this section include'' and inserting ``Amounts appropriated 
        to carry out this section may be used for'';
        (39) by striking section 468;
        (40) in section 481A--
            (A) in the matter preceding subparagraph (A) of subsection 
        (c)(2)--
                (i) by striking the term ``under subsection (i)(1)'' 
            and inserting ``to carry out this section''; and
                (ii) by striking ``under such subsection'' and 
            inserting ``to carry out this section''; and
            (B) by striking subsection (i);
        (41) in subsection (a) of section 481B, by striking ``under 
    section 481A(h)'' and inserting ``to carry out section 481A'';
        (42) by striking subsection (c) in the section 481C that 
    relates to general clinical research centers;
        (43) by striking subsection (e) in section 485C;
        (44) by striking subsection (l) in section 485E;
        (45) by striking subsection (h) in section 485F;
        (46) by striking subsection (e) in section 485G;
        (47) by striking subsection (d) of section 487;
        (48) by striking subsection (c) of section 487A; and
        (49) by striking subsection (c) in the section 487F that 
    relates to a loan repayment program regarding clinical researchers.
    (c) Rule of Construction Regarding Continuation of Programs.--The 
amendment of a program by a provision of subsection (b) may not be 
construed as terminating the authority of the Federal agency involved 
to carry out the program.

SEC. 104. REPORTS.

    (a) Report of Director of NIH.--The Public Health Service Act (42 
U.S.C. 201 et seq.), as amended by section 103(a) of this Act, is 
amended--
        (1) by redesignating section 403A as section 403C;
        (2) in section 1710(a), by striking ``section 403A'' and 
    inserting ``section 403C''; and
        (3) by striking section 403 and inserting the following 
    sections:

``SEC. 402B. ELECTRONIC CODING OF GRANTS AND ACTIVITIES.

    ``The Secretary, acting through the Director of NIH, shall 
establish an electronic system to uniformly code research grants and 
activities of the Office of the Director and of all the national 
research institutes and national centers. The electronic system shall 
be searchable by a variety of codes, such as the type of research 
grant, the research entity managing the grant, and the public health 
area of interest. When permissible, the Secretary, acting through the 
Director of NIH, shall provide information on relevant literature and 
patents that are associated with research activities of the National 
Institutes of Health.

``SEC. 403. BIENNIAL REPORTS OF DIRECTOR OF NIH.

    ``(a) In General.--The Director of NIH shall submit to the Congress 
on a biennial basis a report in accordance with this section. The first 
report shall be submitted not later than 1 year after the date of the 
enactment of the National Institutes of Health Reform Act of 2006. Each 
such report shall include the following information:
        ``(1) An assessment of the state of biomedical and behavioral 
    research.
        ``(2) A description of the activities conducted or supported by 
    the agencies of the National Institutes of Health and policies 
    respecting the programs of such agencies.
        ``(3) Classification and justification for the priorities 
    established by the agencies, including a strategic plan and 
    recommendations for future research initiatives to be carried out 
    under section 402(b)(7) through the Division of Program 
    Coordination, Planning, and Strategic Initiatives.
        ``(4) A catalog of all the research activities of the agencies, 
    prepared in accordance with the following:
            ``(A) The catalog shall, for each such activity--
                ``(i) identify the agency or agencies involved;
                ``(ii) state whether the activity was carried out 
            directly by the agencies or was supported by the agencies 
            and describe to what extent the agency was involved; and
                ``(iii) identify whether the activity was carried out 
            through a center of excellence.
            ``(B) In the case of clinical research, the catalog shall, 
        as appropriate, identify study populations by demographic 
        variables and other variables that contribute to research on 
        minority health and health disparities.
            ``(C) Research activities listed in the catalog shall 
        include, where applicable, the following:
                ``(i) Epidemiological studies and longitudinal studies.
                ``(ii) Disease registries, information clearinghouses, 
            and other data systems.
                ``(iii) Public education and information campaigns.
                ``(iv) Training activities, including--

                    ``(I) National Research Service Awards and Clinical 
                Transformation Science Awards;
                    ``(II) graduate medical education programs, 
                including information on the number and type of 
                graduate degrees awarded during the period in which the 
                programs received funding under this title;
                    ``(III) investigator-initiated awards for 
                postdoctoral training;
                    ``(IV) a breakdown by demographic variables and 
                other appropriate categories; and
                    ``(V) an evaluation and comparison of outcomes and 
                effectiveness of various training programs.

                ``(v) Clinical trials, including a breakdown of 
            participation by study populations and demographic 
            variables and such other information as may be necessary to 
            demonstrate compliance with section 492B (regarding 
            inclusion of women and minorities in clinical research).
                ``(vi) Translational research activities with other 
            agencies of the Public Health Service.
        ``(5) A summary of the research activities throughout the 
    agencies, which summary shall be organized by the following 
    categories, where applicable:
            ``(A) Cancer.
            ``(B) Neurosciences.
            ``(C) Life stages, human development, and rehabilitation.
            ``(D) Organ systems.
            ``(E) Autoimmune diseases.
            ``(F) Genomics.
            ``(G) Molecular biology and basic science.
            ``(H) Technology development.
            ``(I) Chronic diseases, including pain and palliative care.
            ``(J) Infectious diseases and bioterrorism.
            ``(K) Minority health and health disparities.
            ``(L) Such additional categories as the Director determines 
        to be appropriate.
        ``(6) A review of each entity receiving funding under this 
    title in its capacity as a center of excellence (in this paragraph 
    referred to as a `center of excellence'), including the following:
            ``(A) An evaluation of the performance and research 
        outcomes of each center of excellence.
            ``(B) Recommendations for promoting coordination of 
        information among the centers of excellence.
            ``(C) Recommendations for improving the effectiveness, 
        efficiency, and outcomes of the centers of excellence.
            ``(D) If no additional centers of excellence have been 
        funded under this title since the previous report under this 
        section, an explanation of the reasons for not funding any 
        additional centers.
    ``(b) Requirement Regarding Disease-Specific Research Activities.--
In a report under subsection (a), the Director of NIH, when reporting 
on research activities relating to a specific disease, disorder, or 
other adverse health condition, shall--
        ``(1) present information in a standardized format;
        ``(2) identify the actual dollar amounts obligated for such 
    activities; and
        ``(3) include a plan for research on the specific disease, 
    disorder, or other adverse health condition, including a statement 
    of objectives regarding the research, the means for achieving the 
    objectives, a date by which the objectives are expected to be 
    achieved, and justifications for revisions to the plan.
    ``(c) Additional Reports.--In addition to reports required by 
subsections (a) and (b), the Director of NIH or the head of a national 
research institute or national center may submit to the Congress such 
additional reports as the Director or the head of such institute or 
center determines to be appropriate.

``SEC. 403A. ANNUAL REPORTING TO INCREASE INTERAGENCY COLLABORATION AND 
              COORDINATION.

    ``(a) Collaboration With Other HHS Agencies.--On an annual basis, 
the Director of NIH shall submit to the Secretary a report on the 
activities of the National Institutes of Health involving collaboration 
with other agencies of the Department of Health and Human Services.
    ``(b) Clinical Trials.--Each calendar year, the Director of NIH 
shall submit to the Commissioner of Food and Drugs a report that 
identifies each clinical trial that is registered during such calendar 
year in the databank of information established under section 402(i).
    ``(c) Human Tissue Samples.--On an annual basis, the Director of 
NIH shall submit to the Congress a report that describes how the 
National Institutes of Health and its agencies store and track human 
tissue samples.
    ``(d) First Report.--The first report under subsections (a), (b), 
and (c) shall be submitted not later than 1 year after the date of the 
enactment of the National Institutes of Health Reform Act of 2006.

``SEC. 403B. ANNUAL REPORTING TO PREVENT FRAUD AND ABUSE.

    ``(a) Whistleblower Complaints.--
        ``(1) In general.--On an annual basis, the Director of NIH 
    shall submit to the Inspector General of the Department of Health 
    and Human Services, the Secretary, the Committee on Energy and 
    Commerce and the Committee on Appropriations of the House of 
    Representatives, and the Committee on Health, Education, Labor, and 
    Pensions and the Committee on Appropriations of the Senate a report 
    summarizing the activities of the National Institutes of Health 
    relating to whistleblower complaints.
        ``(2) Contents.--For each whistleblower complaint pending 
    during the year for which a report is submitted under this 
    subsection, the report shall identify the following:
            ``(A) Each agency of the National Institutes of Health 
        involved.
            ``(B) The status of the complaint.
            ``(C) The resolution of the complaint to date.
    ``(b) Experts and Consultants.--On an annual basis, the Director of 
NIH shall submit to the Inspector General of the Department of Health 
and Human Services, the Secretary, the Committee on Energy and Commerce 
and the Committee on Appropriations of the House of Representatives, 
and the Committee on Health, Education, Labor, and Pensions and the 
Committee on Appropriations of the Senate a report that--
        ``(1) identifies the number of experts and consultants, 
    including any special consultants, whose services are obtained by 
    the National Institutes of Health or its agencies;
        ``(2) specifies whether such services were obtained under 
    section 207(f), section 402(d), or other authority;
        ``(3) describes the qualifications of such experts and 
    consultants;
        ``(4) describes the need for hiring such experts and 
    consultants; and
        ``(5) if such experts and consultants make financial 
    disclosures to the National Institutes of Health or any of its 
    agencies, specifies the income, gifts, assets, and liabilities so 
    disclosed.
    ``(c) First Report.--The first report under subsections (a) and (b) 
shall be submitted not later than 1 year after the date of the 
enactment of the National Institutes of Health Reform Act of 2006.

``SEC. 403C. ANNUAL REPORTING REGARDING TRAINING OF GRADUATE STUDENTS 
              FOR DOCTORAL DEGREES.

    ``(a) In General.--Each institution receiving an award under this 
title for the training of graduate students for doctoral degrees shall 
annually report to the Director of NIH, with respect to each degree-
granting program at such institution--
        ``(1) the percentage of students admitted for study who 
    successfully attain a doctoral degree; and
        ``(2) for students described in paragraph (1), the average time 
    between the beginning of graduate study and the receipt of a 
    doctoral degree.
        ``(3) Provision of information to applicants.--Each institution 
    described in subsection (a) shall provide to each student 
    submitting an application for a program of graduate study at such 
    institution the information described in paragraphs (1) and (2) of 
    such subsection with respect to the program or programs to which 
    such student has applied.''.
    (b) Striking of Other Reporting Requirements for NIH.--
        (1) Public health service act; title iv.--Title IV of the 
    Public Health Service Act, as amended by section 103(b) of this 
    Act, is amended--
            (A) in section 404E(b)--
                (i) by amending paragraph (3) to read as follows:
        ``(3) Coordination of centers.--The Director of NIH shall, as 
    appropriate, provide for the coordination of information among 
    centers under paragraph (1) and ensure regular communication 
    between such centers.''; and
                (ii) by striking subsection (f) and redesignating 
            subsection (g) as subsection (f);
            (B) in section 404F(b)(1), by striking subparagraphs (F) 
        and (G);
            (C) by striking section 407;
            (D) in section 409C(b), by striking paragraph (4) and 
        redesignating paragraphs (5) and (6) as paragraphs (4) and (5), 
        respectively;
            (E) in section 409E, by striking subsection (d);
            (F) in section 417C, by striking subsection (f);
            (G) in section 424B(a)--
                (i) in paragraph (1), by adding ``and'' after the 
            semicolon at the end;
                (ii) in paragraph (2), by striking ``; and'' and 
            inserting a period; and
                (iii) by striking paragraph (3);
            (H) in section 429, by striking subsections (c) and (d);
            (I) in section 442, by striking subsection (j) and 
        redesignating subsection (k) as subsection (j);
            (J) in section 464D, by striking subsection (j);
            (K) in section 464E, by striking subsection (e);
            (L) in section 464T, by striking subsection (e);
            (M) in section 481A, by striking subsection (h);
            (N) in section 485E, by striking subsection (k);
            (O) in section 485H--
                (i) by striking ``(a)'' and all that follows through 
            ``The Secretary,'' and inserting ``The Secretary,''; and
                (ii) by striking subsection (b); and
            (P) in section 494--
                (i) by striking ``(a) If the Secretary'' and inserting 
            ``If the Secretary''; and
                (ii) by striking subsection (b).
        (2) Public health service act; other provisions.--The Public 
    Health Service Act (42 U.S.C. 201 et seq.) is amended--
            (A) in section 399E, by striking subsection (e);
            (B) in section 1122--
                (i) by striking ``(a) From the sums'' and inserting 
            ``From the sums''; and
                (ii) by striking subsections (b) and (c);
            (C) by striking section 2301;
            (D) in section 2354, by striking subsection (b) and 
        redesignating subsection (c) as subsection (b);
            (E) in section 2356, by striking subsection (e) and 
        redesignating subsections (f) and (g) as subsections (e) and 
        (f), respectively; and
            (F) in section 2359(b)--
                (i) by striking paragraph (2);
                (ii) by striking `` (b) Evaluation and Report'' and all 
            that follows through ``Not later than 5 years'' and 
            inserting `` (b) Evaluation.--Not later than 5 years'';
                (iii) by redesignating subparagraphs (A) through (C) as 
            paragraphs (1) through (3), respectively; and
                (iv) by moving each of paragraphs (1) through (3) (as 
            so redesignated) 2 ems to the left.
        (3) Other acts.--Provisions of Federal law are amended as 
    follows:
            (A) Section 7 of Public Law 97-414 is amended--
                (i) in subsection (a)--

                    (I) in paragraph (2), by inserting ``and'' at the 
                end;
                    (II) in paragraph (3), by striking ``; and'' and 
                inserting a period; and
                    (III) by striking paragraph (4); and

                (ii) in subsection (b), by striking the last sentence 
            of paragraph (3).
            (B) Title III of Public Law 101-557 (42 U.S.C. 242q et 
        seq.) is amended by striking section 304 and redesignating 
        section 305 and 306 as sections 304 and 305, respectively.
            (C) Section 4923 of Public Law 105-33 is amended by 
        striking subsection (b).
            (D) Public Law 106-310 is amended by striking section 105.
            (E) Section 1004 of Public Law 106-310 is amended by 
        striking subsection (d).
            (F) Section 3633 of Public Law 106-310 (as amended by 
        section 2502 of Public Law 107-273) is repealed.
            (G) Public Law 106-525 is amended by striking section 105.
            (H) Public Law 107-84 is amended by striking section 6.
            (I) Public Law 108-427 is amended by striking section 3 and 
        redesignating sections 4 and 5 as sections 3 and 4, 
        respectively.

SEC. 105. CERTAIN DEMONSTRATION PROJECTS.

    (a) Bridging the Sciences.--
        (1) In general.--From amounts to be appropriated under section 
    402A(b) of the Public Health Service Act, the Secretary of Health 
    and Human Services, acting through the Director of NIH, (in this 
    subsection referred to as the ``Secretary'') in consultation with 
    the Director of the National Science Foundation, the Secretary of 
    Energy, and other agency heads when necessary, may allocate funds 
    for the national research institutes and national centers to make 
    grants for the purpose of improving the public health through 
    demonstration projects for biomedical research at the interface 
    between the biological, behavioral, and social sciences and the 
    physical, chemical, mathematical, and computational sciences.
        (2) Goals, priorities, and methods; interagency 
    collaboration.--The Secretary shall establish goals, priorities, 
    and methods of evaluation for research under paragraph (1), and 
    shall provide for interagency collaboration with respect to such 
    research. In developing such goals, priorities, and methods, the 
    Secretary shall ensure that--
            (A) the research reflects the vision of innovation and 
        higher risk with long-term payoffs; and
            (B) the research includes a wide spectrum of projects, 
        funded at various levels, with varying timeframes.
        (3) Peer review.--A grant may be made under paragraph (1) only 
    if the application for the grant has undergone technical and 
    scientific peer review under section 492 of the Public Health 
    Service Act (42 U.S.C. 289a) and has been reviewed by the advisory 
    council under section 402(k) of such Act (as added by section 
    102(c) of this Act) or has been reviewed by an advisory council 
    composed of representatives from appropriate scientific disciplines 
    who can fully evaluate the applicant.
    (b) High-Risk, High-Reward Research.--
        (1) In general.--From amounts to be appropriated under section 
    402A(b) of the Public Health Service Act, the Secretary, acting 
    through the Director of NIH, may allocate funds for the national 
    research institutes and national centers to make awards of grants 
    or contracts or to engage in other transactions for demonstration 
    projects for high-impact, cutting-edge research that fosters 
    scientific creativity and increases fundamental biological 
    understanding leading to the prevention, diagnosis, and treatment 
    of diseases and disorders. The head of a national research 
    institute or national center may conduct or support such high-
    impact, cutting-edge research (with funds allocated under the 
    preceding sentence or otherwise available for such purpose) if the 
    institute or center gives notice to the Director of NIH beforehand 
    and submits a report to the Director of NIH on an annual basis on 
    the activities of the institute or center relating to such 
    research.
        (2) Special consideration.--In carrying out the program under 
    paragraph (1), the Director of NIH shall give special consideration 
    to coordinating activities with national research institutes whose 
    budgets are substantial relative to a majority of the other 
    institutes.
        (3) Administration of program.--Activities relating to research 
    described in paragraph (1) shall be designed by the Director of NIH 
    or the head of a national research institute or national center, as 
    applicable, to enable such research to be carried out with maximum 
    flexibility and speed.
        (4) Public-private partnerships.--In providing for research 
    described in paragraph (1), the Director of NIH or the head of a 
    national research institute or national center, as applicable, 
    shall seek to facilitate partnerships between public and private 
    entities and shall coordinate when appropriate with the Foundation 
    for the National Institutes of Health.
        (5) Peer review.--A grant for research described in paragraph 
    (1) may be made only if the application for the grant has undergone 
    technical and scientific peer review under section 492 of the 
    Public Health Service Act (42 U.S.C. 289a) and has been reviewed by 
    the advisory council under section 402(k) of such Act (as added by 
    section 102(c) of this Act).
    (c) Report to Congress.--Not later than the end of fiscal year 
2009, the Secretary, acting through the Director of NIH, shall conduct 
an evaluation of the activities under this section and submit a report 
to the Congress on the results of such evaluation.
    (d) Definitions.--For purposes of this section, the terms 
``Director of NIH'' , ``national research institute'', and ``national 
center'' have the meanings given such terms in section 401 of the 
Public Health Service Act.

SEC. 106. ENHANCING THE CLINICAL AND TRANSLATIONAL SCIENCE AWARD.

    (a) In General.--In administering the Clinical and Translational 
Science Award, the Director of NIH shall establish a mechanism to 
preserve independent funding and infrastructure for pediatric clinical 
research centers by--
        (1) allowing the appointment of a secondary principal 
    investigator under a single Clinical and Translational Science 
    Award, such that a pediatric principal investigator may be 
    appointed with direct authority over a separate budget and 
    infrastructure for pediatric clinical research; or
        (2) otherwise securing institutional independence of pediatric 
    clinical research centers with respect to finances, infrastructure, 
    resources, and research agenda.
    (b) Report.--As part of the biennial report under section 403 of 
the Public Health Service Act, the Director of NIH shall provide an 
evaluation and comparison of outcomes and effectiveness of training 
programs under subsection (a).
    (c) Definition.--For purposes of this section, the term ``Director 
of NIH'' has the meaning given such term in section 401 of the Public 
Health Service Act.

SEC. 107. FOUNDATION FOR THE NATIONAL INSTITUTES OF HEALTH.

    Section 499 of the Public Health Service Act (42 U.S.C. 290b) is 
amended--
        (1) in subsection (d)--
            (A) in paragraph (1)--
                (i) by amending subparagraph (D)(ii) to read as 
            follows:
                ``(ii) Upon the appointment of the appointed members of 
            the Board under clause (i)(II), the terms of service as 
            members of the Board of the ex officio members of the Board 
            described in clauses (i) and (ii) of subparagraph (B) shall 
            terminate. The ex officio members of the Board described in 
            clauses (iii) and (iv) of subparagraph (B) shall continue 
            to serve as ex officio members of the Board.''; and
                (ii) in subparagraph (G), by inserting ``appointed'' 
            after ``that the number of'';
            (B) by amending paragraph (3)(B) to read as follows:
            ``(B) Any vacancy in the membership of the appointed 
        members of the Board shall be filled in accordance with the 
        bylaws of the Foundation established in accordance with 
        paragraph (6), and shall not affect the power of the remaining 
        appointed members to execute the duties of the Board.''; and
            (C) in paragraph (5), by inserting ``appointed'' after 
        ``majority of the'';
        (2) in subsection (j)--
            (A) in paragraph (2), by striking ``(d)(2)(B)(i)(II)'' and 
        inserting ``(d)(6)'';
            (B) in paragraph (4)--
                (i) in subparagraph (A), by inserting ``, including an 
            accounting of the use of amounts transferred under 
            subsection (l)'' before the period at the end; and
                (ii) by striking subparagraph (C) and inserting the 
            following:
            ``(C) The Foundation shall make copies of each report 
        submitted under subparagraph (A) available--
                ``(i) for public inspection, and shall upon request 
            provide a copy of the report to any individual for a charge 
            that shall not exceed the cost of providing the copy; and
                ``(ii) to the appropriate committees of Congress.''; 
            and
            (C) in paragraph (10), by striking ``of Health.'' and 
        inserting ``of Health and the National Institutes of Health may 
        accept transfers of funds from the Foundation.''; and
        (3) by striking subsection (l) and inserting the following:
    ``(l) Funding.--From amounts appropriated to the National 
Institutes of Health, for each fiscal year, the Director of NIH shall 
transfer not less than $500,000 and not more than $1,250,000 to the 
Foundation.''.

SEC. 108. MISCELLANEOUS AMENDMENTS.

    (a) Certain Authorities of the Secretary.--
        (1) In general.--Section 401 of the Public Health Service Act, 
    as added and amended by section 101, is amended in subsection (d) 
    by inserting after paragraph (1) a subsection that is identical to 
    section 401(c) of such Act as in effect on the day before the date 
    of the enactment of this Act. The subsection so inserted is 
    amended--
            (A) by striking ``(c)(1) The Secretary may'' and inserting 
        the following:
        ``(2) Reorganization of institutes.--
            ``(A) In general.--The Secretary may'';
            (B) by striking ``(A) the Secretary determines'' and 
        inserting the following:
                ``(i) the Secretary determines'';
            (C) by striking ``(B) the additional'' and inserting the 
        following:
                ``(ii) the additional''; and
            (D) by striking ``(2) The Secretary may'' and inserting the 
        following:
            ``(B) Additional authority.--The Secretary may''.
        (2) Conforming amendments.--Section 401(d)(2) of the Public 
    Health Service Act, as designated by paragraph (1) of this 
    subsection, is amended--
            (A) in subparagraph (A)(ii), by striking ``subparagraph 
        (A)'' and inserting ``clause (i)''; and
            (B) by striking ``Labor and Human Resources'' each place 
        such term appears and inserting ``Health, Education, Labor, and 
        Pensions''.
    (b) Certain Research Centers.--Section 414 of the Public Health 
Service Act (42 U.S.C. 285a-3) is amended by adding at the end the 
following subsection:
    ``(d) Research centers under this section may not be considered 
centers of excellence for purposes of section 402(b)(10).''.

SEC. 109. APPLICABILITY.

    This title and the amendments made by this title apply only with 
respect to amounts appropriated for fiscal year 2007 or subsequent 
fiscal years.

                   TITLE II--MISCELLANEOUS PROVISIONS

SEC. 201. REDISTRIBUTION OF CERTAIN UNUSED SCHIP ALLOTMENTS FOR FISCAL 
              YEARS 2004 AND 2005 TO REDUCE FUNDING SHORTFALLS FOR 
              FISCAL YEAR 2007.

    (a) Redistribution of Certain Unused SCHIP Allotments.--Section 
2104 of the Social Security Act (42 U.S.C. 1397dd) is amended by adding 
at the end the following new subsection:
    ``(h) Special Rules to Address Fiscal Year 2007 Shortfalls.--
        ``(1) Redistribution of unused fiscal year 2004 allotments.--
            ``(A) In general.--Notwithstanding subsection (f) and 
        subject to subparagraphs (C) and (D), with respect to months 
        beginning during fiscal year 2007, the Secretary shall provide 
        for a redistribution under such subsection from the allotments 
        for fiscal year 2004 under subsection (b) that are not expended 
        by the end of fiscal year 2006, to a shortfall State described 
        in subparagraph (B), such amount as the Secretary determines 
        will eliminate the estimated shortfall described in such 
        subparagraph for such State for the month.
            ``(B) Shortfall state described.--For purposes of this 
        paragraph, a shortfall State described in this subparagraph is 
        a State with a State child health plan approved under this 
        title for which the Secretary estimates, subject to paragraph 
        (4)(B) and on a monthly basis using the most recent data 
        available to the Secretary as of such month, that the projected 
        expenditures under such plan for such State for fiscal year 
        2007 will exceed the sum of--
                ``(i) the amount of the State's allotments for each of 
            fiscal years 2005 and 2006 that was not expended by the end 
            of fiscal year 2006; and
                ``(ii) the amount of the State's allotment for fiscal 
            year 2007.
            ``(C) Funds redistributed in the order in which states 
        realize funding shortfalls.--The Secretary shall redistribute 
        the amounts available for redistribution under subparagraph (A) 
        to shortfall States described in subparagraph (B) in the order 
        in which such States realize monthly funding shortfalls under 
        this title for fiscal year 2007. The Secretary shall only make 
        redistributions under this paragraph to the extent that there 
        are unexpended fiscal year 2004 allotments under subsection (b) 
        available for such redistributions.
            ``(D) Proration rule.--If the amounts available for 
        redistribution under subparagraph (A) for a month are less than 
        the total amounts of the estimated shortfalls determined for 
        the month under that subparagraph, the amount computed under 
        such subparagraph for each shortfall State shall be reduced 
        proportionally.
        ``(2) Funding remainder of reduction of shortfall for fiscal 
    year 2007 through redistribution of certain unused fiscal year 2005 
    allotments.--
            ``(A) In general.--Subject to subparagraphs (C) and (D) and 
        paragraph (5)(B), with respect to months beginning during 
        fiscal year 2007 after March 31, 2007, the Secretary shall 
        provide for a redistribution under subsection (f) from amounts 
        made available for redistribution under paragraph (3) to each 
        shortfall State described in subparagraph (B), such amount as 
        the Secretary determines will eliminate the estimated shortfall 
        described in such subparagraph for such State for the month.
            ``(B) Shortfall state described.--For purposes of this 
        paragraph, a shortfall State described in this subparagraph is 
        a State with a State child health plan approved under this 
        title for which the Secretary estimates, subject to paragraph 
        (4)(B) and on a monthly basis using the most recent data 
        available to the Secretary as of March 31, 2007, that the 
        projected expenditures under such plan for such State for 
        fiscal year 2007 will exceed the sum of--
                ``(i) the amount of the State's allotments for each of 
            fiscal years 2005 and 2006 that was not expended by the end 
            of fiscal year 2006;
                ``(ii) the amount, if any, that is to be redistributed 
            to the State in accordance with paragraph (1); and
                ``(iii) the amount of the State's allotment for fiscal 
            year 2007.
            ``(C) Funds redistributed in the order in which states 
        realize funding shortfalls.--The Secretary shall redistribute 
        the amounts available for redistribution under subparagraph (A) 
        to shortfall States described in subparagraph (B) in the order 
        in which such States realize monthly funding shortfalls under 
        this title for fiscal year 2007. The Secretary shall only make 
        redistributions under this paragraph to the extent that such 
        amounts are available for such redistributions.
            ``(D) Proration rule.--If the amounts available for 
        redistribution under paragraph (3) for a month are less than 
        the total amounts of the estimated shortfalls determined for 
        the month under subparagraph (A), the amount computed under 
        such subparagraph for each shortfall State shall be reduced 
        proportionally.
        ``(3) Treatment of certain states with fiscal year 2005 
    allotments unexpended at the end of the first half of fiscal year 
    2007.--
            ``(A) Identification of states.--The Secretary, on the 
        basis of the most recent data available to the Secretary as of 
        March 31, 2007--
                ``(i) shall identify those States that received an 
            allotment for fiscal year 2005 under subsection (b) which 
            have not expended all of such allotment by March 31, 2007; 
            and
                ``(ii) for each such State shall estimate--

                    ``(I) the portion of such allotment that was not so 
                expended by such date; and
                    ``(II) whether the State is described in 
                subparagraph (B).

            ``(B) States with funds in excess of 200 percent of need.--
        A State described in this subparagraph is a State for which the 
        Secretary determines, on the basis of the most recent data 
        available to the Secretary as of March 31, 2007, that the total 
        of all available allotments under this title to the State as of 
        such date, is at least equal to 200 percent of the total 
        projected expenditures under this title for the State for 
        fiscal year 2007.
            ``(C) Redistribution and limitation on availability of 
        portion of unused allotments for certain states.--
                ``(i) In general.--In the case of a State identified 
            under subparagraph (A)(i) that is also described in 
            subparagraph (B), notwithstanding subsection (e), the 
            applicable amount described in clause (ii) shall not be 
            available for expenditure by the State on or after April 1, 
            2007, and shall be redistributed in accordance with 
            paragraph (2).
                ``(ii) Applicable amount.--For purposes of clause (i), 
            the applicable amount described in this clause is the 
            lesser of--

                    ``(I) 50 percent of the amount described in 
                subparagraph (A)(ii)(I); or
                    ``(II) $20,000,000.

        ``(4) Special rules.--
            ``(A) Expenditures limited to coverage for populations 
        eligible on october 1, 2006.--A State shall use amounts 
        redistributed under this subsection only for expenditures for 
        providing child health assistance or other health benefits 
        coverage for populations eligible for such assistance or 
        benefits under the State child health plan (including under a 
        waiver of such plan) on October 1, 2006.
            ``(B) Regular fmap for expenditures for coverage of 
        nonchild populations.--To the extent a State uses amounts 
        redistributed under this subsection for expenditures for 
        providing child health assistance or other health benefits 
        coverage to an individual who is not a child or a pregnant 
        woman, the Federal medical assistance percentage (as defined in 
        the first sentence of section 1905(b)) applicable to the State 
        for the fiscal year shall apply to such expenditures for 
        purposes of making payments to the State under subsection (a) 
        of section 2105 from such amounts.
        ``(5) Retrospective adjustment.--
            ``(A) In general.--The Secretary may adjust the estimates 
        and determinations made under paragraphs (1), (2), and (3) as 
        necessary on the basis of the amounts reported by States not 
        later than November 30, 2007, on CMS Form 64 or CMS Form 21, as 
        the case may be and as approved by the Secretary, but in no 
        case may the applicable amount described in paragraph 
        (3)(C)(ii) exceed the amount determined by the Secretary on the 
        basis of the most recent data available to the Secretary as of 
        March 31, 2007.
            ``(B) Funding of any retrospective adjustments only from 
        unexpended 2005 allotments.--Notwithstanding subsections (e) 
        and (f), to the extent the Secretary determines it necessary to 
        adjust the estimates and determinations made for purposes of 
        paragraphs (1), (2), and (3), the Secretary may use only the 
        allotments for fiscal year 2005 under subsection (b) that 
        remain unexpended through the end of fiscal year 2007 for 
        providing any additional amounts to States described in 
        paragraph (2)(B) (without regard to whether such unexpended 
        allotments are from States described in paragraph (3)(B)).
            ``(C) Rules of construction.--Nothing in this subsection 
        shall be construed as--
                ``(i) authorizing the Secretary to use the allotments 
            for fiscal year 2006 or 2007 under subsection (b) of States 
            described in paragraph (3)(B) to provide additional amounts 
            to States described in paragraph (2)(B) for purposes of 
            eliminating the funding shortfall for such States for 
            fiscal year 2007; or
                ``(ii) limiting the authority of the Secretary to 
            redistribute the allotments for fiscal year 2005 under 
            subsection (b) that remain unexpended through the end of 
            fiscal year 2007 and are available for redistribution under 
            subsection (f) after the application of subparagraph (B).
        ``(6) 1-year availability; no further redistribution.--
    Notwithstanding subsections (e) and (f), amounts redistributed to a 
    State pursuant to this subsection for fiscal year 2007 shall only 
    remain available for expenditure by the State through September 30, 
    2007, and any amounts of such redistributions that remain 
    unexpended as of such date, shall not be subject to redistribution 
    under subsection (f). Nothing in the preceding sentence shall be 
    construed as limiting the ability of the Secretary to adjust the 
    determinations made under paragraphs (1), (2), and (3) in 
    accordance with paragraph (5).
        ``(7) Definition of state.--For purposes of this subsection, 
    the term `State' means a State that receives an allotment for 
    fiscal year 2007 under subsection (b).''.
    (b) Extending Authority for Qualifying States to Use Certain Funds 
for Medicaid Expenditures.--Section 2105(g)(1)(A) of such Act (42 
U.S.C. 1397ee(g)(1)(A)) is amended by striking ``or 2005'' and 
inserting ``2005, 2006, or 2007''.
    (c) Report to Congress.--Not later than April 30, 2007, the 
Secretary of Health and Human Services shall submit a report to the 
Committee on Energy and Commerce of the House of Representatives and 
the Committee on Finance of the Senate regarding the amounts 
redistributed to States under section 2104 of the Social Security Act 
to reduce funding shortfalls for the State Children's Health Insurance 
Program (SCHIP) for fiscal year 2007. Such report shall include 
descriptions and analyses of--
        (1) the extent to which such redistributed amounts have reduced 
    or eliminated such shortfalls on the basis of reports by States 
    submitted to the Secretary as of April 1, 2007; and
        (2) the effect of the redistribution and limited availability 
    of unexpended fiscal year 2005 allotments under such program on the 
    States described in section 2104(h)(3)(B) of the Social Security 
    Act (42 U.S.C. 1397dd(h)(3)(B)) on the basis of reports by States 
    submitted to the Secretary as of such date.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.