[Congressional Record (Bound Edition), Volume 152 (2006), Part 18]
[House]
[Pages 23361-23369]
[From the U.S. Government Publishing Office, www.gpo.gov]




            NATIONAL INSTITUTES OF HEALTH REFORM ACT OF 2006

  Mr. BARTON of Texas. Mr. Speaker, I move to suspend the rules and 
concur in the Senate amendment to the bill (H.R. 6164) 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.
  The Clerk read as follows:

       Senate amendment:
       Strike out all after the enacting clause and insert:

     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--

[[Page 23362]]

       ``(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''.

[[Page 23363]]



     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

[[Page 23364]]

     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

[[Page 23365]]

     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

[[Page 23366]]

     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

[[Page 23367]]

     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.--

[[Page 23368]]

     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 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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Barton) and the gentleman from New Jersey (Mr. Pallone) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Texas.
  Mr. BARTON of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise today in the absolute strongest possible support 
of passage of the National Institutes of Health Reauthorization Act. 
This legislation, as amended by the Senate, passed the House by 
landmark votes several months ago of 414-2. It is not often that we see 
a bill of this magnitude receive such widespread support in both the 
House and the Senate.
  We should all be proud of ourselves for this bipartisan, bicameral 
product. This represents the culmination of three hard-fought years 
spent trying to reauthorize the NIH, a crown jewel of the Federal 
Government.
  When I first took over as chairman of the Energy and Commerce 
Committee, I was surprised to learn that such an important agency of 
our Federal Government had not been authorized for over 13 years. Now I 
know why. The amount of work required to restructure this agency and at 
the same time gain the involvement and support of all the stakeholders 
and advocacy groups has been absolutely breathtaking.
  However, having said that, the hard work has paid off, and we now see 
the fruits of our labors before us this evening. The Energy and 
Commerce Committee has adopted numerous pieces of legislation in the 
years that I have served as chairman, but I would not put one piece of 
legislation, including the Energy Policy Act, which was a very major 
effort, above the importance of this bill that is before us right now.
  I want to thank Congressman John Dingell, the ranking member, soon to 
be the chairman again of the committee, for his tireless efforts.
  I want to thank Anna Eshoo. I want to thank Richard Neal. I want to 
thank the Speaker of the House, and the majority leader, John Boehner. 
I want to thank Bill Frist, thank Harry Reid, I want to thank Ted 
Kennedy. I want to thank Mr. Grassley, I want to thank Mr. Lott, Mr. 
Harkin. I could go on and on for all the Senators and House Members who 
have worked to make this legislation possible.
  It is truly a bipartisan effort, and a major, major accomplishment of 
this Congress. I also want to thank the current director at the NIH, 
Dr. Elias Zerhouni. He has been absolutely astounding in his continual 
optimistic efforts to approve this bill and to gain support for it.
  I want to thank all the stakeholders, over 90 national organizations 
have endorsed this legislation. I want to thank the major research 
universities of America for their hard work. I want to thank the 27 
institute directors for their hard work.
  In conclusion, I ask in the possible strongest terms for the support 
of every Member of this House to pass H.R. 6164, as amended by the 
Senate.
  Mr. Speaker, I reserve the balance of my time.
  Mr. PALLONE. Mr. Speaker, I yield myself such time as I may consume.
  I want to thank you, Mr. Speaker, and I want to thank Mr. Barton and 
Mr. Dingell for all their hard work on this NIH bill. As was mentioned, 
this is the first time in 13 years that we have had a reauthorization 
of the National Institutes of Health. This is an important piece of 
legislation because the National Institutes of Health are the world's 
premier research medical center and the key focal point for medical 
research in the United States.
  On September 26, the House overwhelmingly passed H.R. 6164 with a 
vote of 414-2. The Senate recently passed that bill with amendments, 
which is the bill before us now. Those amendments helped clarify 
provisions in the bill and therefore improve it. So every Member who 
voted for H.R. 6164 on September 26 should feel comfortable voting for 
this bill this evening.
  I wanted to mention that the bill before us also includes provisions 
with regard to the SCHIP, or the State Children's Health Insurance 
Program.

                              {time}  0130

  This is another reason we should be supporting the legislation this 
evening. This part of the legislation would provide the money necessary 
to help a number of States, including my own, avert a funding shortfall 
in their State Children's Health Insurance Program.
  Specifically, the bill will redirect existing unspent SCHIP funds 
from fiscal years 2004 and 2005 to help States that will not have 
sufficient funds to maintain their existing programs. States forfeiting 
unspent funding will be held harmless by capping the amount of

[[Page 23369]]

funds that will be donated to $20 million. Thanks to this compromise, 
we can prevent many States from having to limit eligibility, increase 
cost-sharing requirements or restrict benefits. Keeping these programs 
intact is critically important for the health and well-being of our 
Nation's children.
  Since its inception, SCHIP has been an integral part of reducing the 
number of uninsured children. But last year, for the first time since 
1998, the number of uninsured children in the country actually 
increased, and even more children will go without coverage if Congress 
does not act tonight to avoid the funding shortfall currently projected 
for next year.
  Again, I would like to thank my colleagues Mr. Dingell and Mr. 
Barton, as well as their staffs, who helped work out this compromise, 
as well as our Senate counterparts. Thanks to our efforts, we will help 
preserve access to health care coverage for millions of low income 
children, as well as their families.
  Finally, Mr. Speaker, while we have temporarily prevented a cut to 
the SCHIP program tonight, we must not forget that there are still 
approximately 8 million American children who currently have no health 
insurance, many of which are eligible to participate in SCHIP. 
Reauthorization of the SCHIP program must be addressed early next year 
and we must work together to help expand coverage and increase 
participation. Failure to do so will undoubtedly jeopardize the health 
of those most vulnerable in our Nation, our children.
  I would like to thank everyone again.
  Mr. Speaker, I yield back the balance of my time.
  Mr. BARTON of Texas. Mr. Speaker, I urge that we pass this bill 
unanimously, and I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. LaHood). The question is on the motion 
offered by the gentleman from Texas (Mr. Barton) that the House suspend 
the rules and concur in the Senate amendment to the bill, H.R. 6164.
  The question was taken; and (two-thirds of those voting having 
responded in the affirmative) the rules were suspended and the Senate 
amendment was concurred in.
  A motion to reconsider was laid on the table.

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