[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6164 Referred in Senate (RFS)]

  2d Session
                                H. R. 6164


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 27, 2006

                                Received

                           November 13, 2006

 Read twice and referred to the Committee on Health, Education, Labor, 
                              and Pensions

_______________________________________________________________________

                                 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``National 
Institutes of Health Reform Act of 2006''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Organization of National Institutes of Health.
Sec. 3. Authority of Director of NIH.
Sec. 4. Authorization of appropriations.
Sec. 5. Reports.
Sec. 6. Certain demonstration projects.
Sec. 7. Foundation for the National Institutes of Health.
Sec. 8. Applicability.

SEC. 2. 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.
            ``(2) Reorganization of institutes and centers.--
                    ``(A) In general.--Notwithstanding subsection (b), 
                and subject to paragraph (1), the Director of NIH may, 
                with the approval of the Secretary, reorganize the 
                national research institutes and the national centers, 
                including the addition, removal, or transfer of 
                functions of such institutes and centers, and the 
                establishment or termination of such institutes and 
                centers, if the Director determines that the overall 
                mission of the National Institutes of Health, or the 
                management and operation of programs and activities 
                conducted or supported by the National Institutes of 
                Health, would be more efficiently carried out under 
                such a reorganization.
                    ``(B) Administrative unit.--For purposes of 
                paragraph (1), an administrative unit within the 
                National Institutes of Health that is established under 
                authority of subparagraph (A) shall be considered a 
                national research institute or a national center, 
                without regard to whether the administrative unit is 
                designated by the Director of NIH as such an institute 
                or center.
                    ``(C) Public process.--Any reorganization under 
                subparagraph (A) shall be carried out by regulation in 
                accordance with the procedures for substantive rules 
                under section 553 of title 5, United States Code.
            ``(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.
            ``(5) Notice to congress; effective date.--A reorganization 
        under paragraph (2), (3), or (4) may not take effect before the 
        expiration of 90 days after the Secretary submits to the 
        Committee on Energy and Commerce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate written notice of the 
        reorganization.
    ``(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 all programs of the 
                        National Institutes of Health (referred to in 
                        this subsection as `NIH') in order to determine 
                        the progress and cost-effectiveness of such 
                        programs and the allocation among the programs 
                        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) estimating the level of 
                                resources needed to implement the 
                                proposed changes; and
                                    ``(III) 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.
                    ``(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 membership of the Board 
        may not exceed 21 individuals, all of whom shall be voting 
        members. The Board shall be composed of the following:
                    ``(A) The Director of NIH, who shall be a permanent 
                member on an ex officio basis.
                    ``(B) 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.
                    ``(C) 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 appointed members of the Board, 
        except that the Secretary may select the Director of NIH as the 
        Chair. 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 
                        within the House of Representatives;
                            ``(ii) the Committee on Health, Education, 
                        Labor, and Pensions within 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 paragraph 
        (2) 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) 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).
    ``(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.''.
    (b) 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. 3. AUTHORITY OF DIRECTOR OF NIH.

    (a) In General.--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 paragraphs (1) through (3) and inserting 
        the following paragraphs:
            ``(1) shall be 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;
            ``(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, 
        duplicative research, 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 approve the establishment of all centers of 
        excellence recommended by the national research institutes, 
        other than centers recognized under section 414;
            ``(11) shall oversee research training for all of the 
        national research institutes and National Research Service 
        Awards in accordance with section 487;
            ``(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;''.
    (b) 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.
    (c) Advisory Council for Director of NIH.--Section 402 of the 
Public Health Service Act, as amended by subsection (b) of this 
section, is amended by adding after subsection (j) the following 
subsection:
    ``(k) Council of Councils.--
            ``(1) Establishment.--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.
            ``(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.''.
    (d) 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''.
    (e) Conforming Amendment.--Section 402(a) of the Public Health 
Service Act (42 U.S.C. 282(a)) is amended by striking ``Director of the 
National Institutes of Health'' and all that follows through ``who 
shall'' and inserting ``Director of NIH who shall''.
    (f) 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 Director of 
NIH under section 401 of the Public Health Service Act (as amended by 
section 2(a) 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. 4. 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) $29,747,874,000 for fiscal year 2007;
            ``(2) $31,235,268,000 for fiscal year 2008; and
            ``(3) $32,797,032,000 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 the 
following amount, as applicable to the fiscal year:
            ``(1) $1,000,000,000 for fiscal year 2007.
            ``(2) $1,050,000,000 for fiscal year 2008.
            ``(3) $1,102,500,000 for fiscal year 2009.
    ``(c) Trans-NIH Research.--
            ``(1) Common fund.--
                    ``(A) Annual reservation of amounts.--Of the total 
                amount appropriated under subsection (a) for fiscal 
                year 2007 or any subsequent fiscal year, the Director 
                of NIH shall reserve the applicable amount under 
                subparagraph (B) for allocations under section 
                402(b)(7)(B) (relating to research identified by the 
                Division of Program Coordination, Planning, and 
                Strategic Initiatives), which reservations shall 
                constitute an account to be known as the Common Fund.
                    ``(B) Amount of reservation.--Subject to 
                subparagraph (C), the amount reserved by the Director 
                of NIH under subparagraph (A) for a fiscal year shall 
                be the sum of--
                            ``(i) the base amount determined under 
                        subparagraph (D); and
                            ``(ii) any additional amount determined 
                        under subparagraph (E).
                Amounts reserved under the preceding sentence shall 
                remain available until expended.
                    ``(C) Maximum reservation.--
                            ``(i) In general.--The amount reserved by 
                        the Director of NIH under subparagraph (A) for 
                        a fiscal year shall not exceed 5 percent of the 
                        total amount appropriated under subsection (a) 
                        for such fiscal year, subject to clause (ii).
                            ``(ii) Applicability.--Clause (i) may not 
                        apply with respect to any fiscal year beginning 
                        after the submission of recommendations under 
                        subparagraph (F).
                            ``(iii) Preservation of reservation.--For 
                        any fiscal year following the first fiscal year 
                        for which the percentage that applies for 
                        purposes of clause (i) is 5 percent, the 
                        reservation under subparagraph (A) for the 
                        fiscal year involved may not be less than 5 
                        percent of the total amount appropriated under 
                        subsection (a) for such fiscal year. For fiscal 
                        year 2008 and each subsequent fiscal year, the 
                        percentage constituted by the reservation under 
                        subparagraph (A) relative to the total amount 
                        appropriated under subsection (a) for the 
                        fiscal year involved may not be less than the 
                        percentage constituted by the reservation under 
                        such subparagraph for the preceding fiscal year 
                        relative to the total amount appropriated under 
                        subsection (a) for such preceding fiscal year.
                    ``(D) Base amount.--The base amount referred to in 
                subparagraph (B)(i) for a fiscal year is--
                            ``(i) for fiscal year 2007, the amount 
                        reserved by the Director of NIH for fiscal year 
                        2006 for research described in section 
                        402(b)(7)(A)(i); and
                            ``(ii) for fiscal year 2008 and each 
                        subsequent fiscal year, the amount reserved 
                        under subparagraph (A) for the preceding fiscal 
                        year.
                    ``(E) Additional amount corresponding to increases 
                in appropriations.--The additional amount referred to 
                in subparagraph (B)(ii) is 50 percent of the amount by 
                which the total amount appropriated under subsection 
                (a) for the fiscal year involved exceeds the total 
                amount appropriated under such subsection for the 
                preceding fiscal year, except that for any fiscal year 
                beginning after the submission of recommendations under 
                subparagraph (F), such percentage may be adjusted by 
                the Director of NIH, and such percentage shall be 
                adjusted by the Director to the extent necessary for 
                compliance with subparagraph (C)(iii).
                    ``(F) Evaluation.--During the 6-month period 
                following the end of the first fiscal year for which 
                the amount reserved by the Director of NIH under 
                subparagraph (A) 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 to the 
                amount of the reservation under subparagraph (A).
            ``(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 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 (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 3(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. 5. REPORTS.

    (a) Report of Director of NIH.--The Public Health Service Act (42 
U.S.C. 201 et seq.), as amended by section 4(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 directly 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 health disparities.
                    ``(C) Research activities listed in the catalog 
                shall include 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 
                        National Research Service Awards and a 
                        breakdown by demographic variables and other 
                        appropriate categories.
                            ``(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:
                    ``(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) Health disparities.
                    ``(L) Such additional categories as the Director 
                determines to be appropriate.
    ``(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 may submit to the Congress 
such additional reports as the Director 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(j).
    ``(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 of the House of Representatives, and the 
        Committee on Health, Education, Labor, and Pensions 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 
of the House of Representatives, and the Committee on Health, 
Education, Labor, and Pensions 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.''.
    (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 4(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. 6. 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 3(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 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 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 3(c) of this Act).
    (c) Report to Congress.--Not later than the end of fiscal year 
2009, 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 term in section 401 of the Public 
Health Service Act.

SEC. 7. 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
                            (iii) 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. 8. APPLICABILITY.

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

            Passed the House of Representatives September 26, 2006.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.