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[109th Congress Public Law 482]
[From the U.S. Government Printing Office]

[DOCID: f:publ482.109]

[[Page 120 STAT. 3675]]

Public Law 109-482
109th Congress

                                 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. <<NOTE: Jan. 15, 2007 -  [H.R. 6164]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: National Institutes of 
Health Reform Act of 2006. 42 USC 201 note.>> assembled,

SECTION 1. SHORT TITLE.

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

                           TITLE I--NIH REFORM

SEC. 101. ORGANIZATION OF NATIONAL INSTITUTES OF HEALTH.

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

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

    ``(a) Relation to Public Health Service.--The National Institutes of 
Health is an agency of the Service.
    ``(b) National Research Institutes and National Centers.--The 
following agencies of the National Institutes of Health are national 
research institutes or national centers:
            ``(1) The National Cancer Institute.
            ``(2) The National Heart, Lung, and Blood Institute.
            ``(3) The National Institute of Diabetes and Digestive and 
        Kidney Diseases.
            ``(4) The National Institute of Arthritis and 
        Musculoskeletal and Skin Diseases.
            ``(5) The National Institute on Aging.
            ``(6) The National Institute of Allergy and Infectious 
        Diseases.
            ``(7) The National Institute of Child Health and Human 
        Development.
            ``(8) The National Institute of Dental and Craniofacial 
        Research.
            ``(9) The National Eye Institute.
            ``(10) The National Institute of Neurological Disorders and 
        Stroke.
            ``(11) The National Institute on Deafness and Other 
        Communication Disorders.
            ``(12) The National Institute on Alcohol Abuse and 
        Alcoholism.
            ``(13) The National Institute on Drug Abuse.
            ``(14) The National Institute of Mental Health.

[[Page 120 STAT. 3676]]

            ``(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--

[[Page 120 STAT. 3677]]

            (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 <<NOTE: Deadline. Establishment.>> later than 60 days after 
        the date of the enactment of the National Institutes of Health 
        Reform Act of 2006, the Secretary shall establish an advisory 
        council within the National Institutes of Health to be known as 
        the Scientific Management Review Board (referred to in this 
        subsection as the `Board').
            ``(2) Duties.--
                    ``(A) Reports on organizational issues.--The Board 
                shall provide advice to the appropriate officials under 
                subsection (d) regarding the use of the authorities 
                established in paragraphs (2), (3), and (4) of such 
                subsection to reorganize the National Institutes of 
                Health (referred to in this subsection as 
                `organizational authorities'). Not less frequently than 
                once each 7 years, the Board shall--
                          ``(i) determine whether and to what extent the 
                      organizational authorities should be used; and
                          ``(ii) issue a report providing the 
                      recommendations of the Board regarding the use of 
                      the authorities and the reasons underlying the 
                      recommendations.
                    ``(B) Certain responsibilities regarding reports.--
                The activities of the Board with respect to a report 
                under subparagraph (A) shall include the following:
                          ``(i) Reviewing the research portfolio of the 
                      National Institutes of Health (referred to in this 
                      subsection as `NIH') in order to determine the 
                      progress and effectiveness and value of the 
                      portfolio and the allocation among the portfolio 
                      activities of the resources of NIH.

[[Page 120 STAT. 3678]]

                          ``(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

[[Page 120 STAT. 3679]]

                      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) <<NOTE: Website.>> 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) <<NOTE: Applicability.>> 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;

[[Page 120 STAT. 3680]]

                          ``(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 <<NOTE: Website.>> 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) <<NOTE: Deadlines.>> 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) <<NOTE: Deadline. Reports.>> 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) <<NOTE: Regulations.>> Congressional review.--An 
        organizational change under subsection (d)(2) that is initiated 
        pursuant to paragraph 

[[Page 120 STAT. 3681]]

        (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 <<NOTE: 42 USC 
        287c.>> 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 <<NOTE: 42 USC 
                287c, 285s.>> as section 464z-1;
                    (B) <<NOTE: 42 USC 285s.>> by striking ``National 
                Center for Human Genome Research'' each place such term 
                appears and inserting ``National Human Genome Research 
                Institute''; and
                    (C) by striking ``Center'' each place such term 
                appears and inserting ``Institute''.

SEC. 102. AUTHORITY OF DIRECTOR OF NIH.

    (a) Secretary Acting Through the Director.--Section 402(b) of the 
Public Health Service Act (42 U.S.C. 282(b)) is amended--
            (1) by redesignating paragraph (14) as paragraph (22);
            (2) by striking paragraphs (12) and (13);
            (3) by redesignating paragraphs (4) through (11) as 
        paragraphs (14) through (21);
            (4) in paragraph (21) (as so redesignated), by inserting 
        ``and'' after the semicolon at the end;
            (5) in the matter after and below paragraph (22) (as so 
        redesignated), by striking ``paragraph (6)'' and inserting 
        ``paragraph (16)''; and
            (6) by striking ``the Secretary'' in the matter preceding 
        paragraph (1) and all that follows through paragraph (1) and 
        inserting the following: ``the Secretary, acting through the 
        Director of NIH--
            ``(1) shall carry out this title, including being 
        responsible for the overall direction of the National Institutes 
        of Health and for the establishment and implementation of 
        general policies respecting the management and operation of 
        programs and activities within the National Institutes of 
        Health;''.

    (b) Additional Authorities.--Section 402(b) of the Public Health 
Service Act, as amended by subsection (a) of this section,

[[Page 120 STAT. 3682]]

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--

[[Page 120 STAT. 3683]]

                    ``(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 <<NOTE: Deadline.>> 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).

[[Page 120 STAT. 3684]]

                    ``(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) <<NOTE: Records.>> 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), <<NOTE: 42 USC 282.>> by 
                striking ``Director of the National Institutes of 
                Health'' and all that follows through ``who shall'' and 
                inserting ``Director of NIH who shall''; and

[[Page 120 STAT. 3685]]

                    (B) in sections 405(c)(3)(A), 452(c)(1)(E)(i), and 
                492(a)(2), <<NOTE: 42 USC 284, 285g-4, 289a.>> 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) <<NOTE: 42 USC 281 note.>> Rule of Construction Regarding 
Authorities of National Research Institutes and National Centers.--This 
Act and the amendments made by this Act may not be construed as 
affecting the authorities of the national research institutes and 
national centers that were in effect under the Public Health Service Act 
on the day before the date of the enactment of this Act, subject to the 
authorities of the Secretary of Health and Human Services and the 
Director of NIH under section 401 of the Public Health Service Act (as 
amended by section 101 of this Act). For purposes of the preceding 
sentence, the terms ``national research institute'', ``national 
center'', and ``Director of NIH'' have the meanings given such terms in 
such section 401.

SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 402A. <<NOTE: 42 USC 282a.>> 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

[[Page 120 STAT. 3686]]

                      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 <<NOTE: Deadline. Recommen- dations.>> 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

[[Page 120 STAT. 3687]]

                      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 <<NOTE: 42 USC 
        283a.>> 403A;
            (3) by striking subsection (c) of section <<NOTE: 42 USC 
        283d.>> 404B;
            (4) by striking subsection (h) of section <<NOTE: 42 USC 
        283g.>> 404E;
            (5) by striking subsection (d) of section <<NOTE: 42 USC 
        283h.>> 404F;
            (6) by striking subsection (e) of section <<NOTE: 42 USC 
        283i.>> 404G;
            (7) by striking subsection (d) of section <<NOTE: 42 USC 
        284e.>> 409A;
            (8) in section <<NOTE: 42 USC 284f.>> 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 <<NOTE: 42 USC 
        284g.>> 409C;
            (10) in section <<NOTE: 42 USC 284h.>> 409D--
                    (A) by striking subsection (d); and
                    (B) by redesignating subsection (e) as subsection 
                (d);
            (11) by striking subsection (e) of section <<NOTE: 42 USC 
        284i.>> 409E;
            (12) by striking subsection (c) of section <<NOTE: 42 USC 
        284j.>> 409F;
            (13) in section 409H, by <<NOTE: 42 USC 284l.>> 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 <<NOTE: 42 USC 
        284m.>> 409I;
            (15) by striking section <<NOTE: 42 USC 285a-8.>> 417B;
            (16) by striking subsection (g) of section <<NOTE: 42 USC 
        285a-9.>> 417C;

[[Page 120 STAT. 3688]]

            (17) in section 417D, <<NOTE: 42 USC 285a-10.>> by 
        striking--
                    (A) paragraph (3) of subsection (a); and
                    (B) paragraph (3) of subsection (b);
            (18) by striking subsection (d) of section <<NOTE: 42 USC 
        285b-7a.>> 424A;
            (19) by striking subsection (c) of section <<NOTE: 42 USC 
        285b-7b.>> 424B;
            (20) by striking section <<NOTE: 42 USC 285b-8.>> 425;
            (21) by striking subsection (d) of section <<NOTE: 42 USC 
        285c-9.>> 434A;
            (22) by striking subsection (d) of section <<NOTE: 42 USC 
        285d-6a.>> 441A;
            (23) by striking subsection (c) of section <<NOTE: 42 USC 
        285d-8.>> 442A;
            (24) in section <<NOTE: 42 USC 285e-10.>> 445H--
                    (A) by striking subsection (b); and
                    (B) in subsection (a), by striking ``(a)'';
            (25) by striking subsection (d) of section <<NOTE: 42 
        USC 285e-10a. 42 USC 285e-11. 42 USC 285f-2.>> 445I;
            (26) by striking section 445J;
            (27) in section 447A--
                    (A) by striking subsection (b); and
                    (B) in subsection (a), by striking ``(a)'';
            (28) <<NOTE: 42 USC 285f-3. 42 USC 285g-5. 42 USC 285g-9. 42 
        USC 285g-10.>> by striking subsection (d) of section 447B;

42 USC 
285g-5.

42 USC 
285g-9.

42 USC 
285g-10.
            (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 
                Sup- port.--'';
            (32) <<NOTE: 42 USC 285n. 42 USC 285o. 42 USC 285o-2. 42 USC 
        285o-4. 42 USC 285p. 42 USC 285r. 42 USC 286a-1.>> by striking 
        subsection (d) of section 464H;

42 USC 
285o.

42 USC 
285o-2.

42 USC 
285o-4.

42 USC 
285p.

42 USC 
285r.

42 USC 
286a-1.
            (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) <<NOTE: 42 USC 286a-2.>> by striking section 468;
            (40) <<NOTE: 42 USC 287a-2.>> 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, <<NOTE: 42 USC 287a-
        3.>> by striking ``under section 481A(h)'' and inserting ``to 
        carry out section 481A'';
            (42) <<NOTE: 42 USC 287a-4.>> by striking subsection (c) in 
        the section 481C that relates to general clinical research 
        centers;
            (43) <<NOTE: 42 USC 287c-11. 42 USC 287c-31. 42 USC 287c-
        32. 42 USC 287c-33. 42 USC 288. 42 USC 288-1.>> by striking 
        subsection (e) in section 485C;

42 USC 
287c-31.

42 USC 
287c-32.

42 USC 
287c-33.

42 USC 
288.

42 USC 
288-1.
            (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

[[Page 120 STAT. 3689]]

            (49) <<NOTE: 42 USC 288-5a.>> by striking subsection (c) in 
        the section 487F that relates to a loan repayment program 
        regarding clinical researchers.

    (c) <<NOTE: 42 USC 282 note.>> Rule of Construction Regarding 
Continuation of Programs.--The amendment of a program by a provision of 
subsection (b) may not be construed as terminating the authority of the 
Federal agency involved to carry out the program.

SEC. 104. REPORTS.

    (a) Report of Director of NIH.--The Public Health Service Act (42 
U.S.C. 201 et seq.), as amended by section 103(a) of this Act, is 
amended--
            (1) by redesignating section 403A <<NOTE: 42 USC 283a, 283a-
        3. 42 USC 300u-9.>> as section 403C;
            (2) in section 1710(a), by striking ``section 403A'' and 
        inserting ``section 403C''; and
            (3) by striking section 403 <<NOTE: 42 USC 283.>> and 
        inserting the following sections:

``SEC. 402B. <<NOTE: 42 USC 282b.>> 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. <<NOTE: 42 USC 283.>> 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.

[[Page 120 STAT. 3690]]

                    ``(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.

[[Page 120 STAT. 3691]]

                    ``(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. <<NOTE: 42 USC 283a.>> 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. <<NOTE: 42 USC 283a-1.>> 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

[[Page 120 STAT. 3692]]

        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. <<NOTE: 42 USC 283a-2.>> ANNUAL REPORTING REGARDING 
            TRAINING OF GRADUATE STUDENTS FOR DOCTORAL DEGREES.

    ``(a) In General.--Each institution receiving an award under this 
title for the training of graduate students for doctoral degrees shall 
annually report to the Director of NIH, with respect to each degree-
granting program at such institution--
            ``(1) the percentage of students admitted for study who 
        successfully attain a doctoral degree; and
            ``(2) for students described in paragraph (1), the average 
        time between the beginning of graduate study and the receipt of 
        a doctoral degree.
            ``(3) Provision of information to applicants.--Each 
        institution described in subsection (a) shall provide to each 
        student submitting an application for a program of graduate 
        study at such institution the information described in 
        paragraphs (1) and (2) of such subsection with respect to the 
        program or programs to which such student has applied.''.

    (b) Striking of Other Reporting Requirements for NIH.--
            (1) Public health service act; title iv.--Title IV of the 
        Public Health Service Act, as amended by section 103(b) of this 
        Act, is amended--
                    (A) in section <<NOTE: 42 USC 283g.>> 404E(b)--
                          (i) by amending paragraph (3) to read as 
                      follows:

[[Page 120 STAT. 3693]]

            ``(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), <<NOTE: 42 USC 283h.>> by 
                striking subparagraphs (F) and (G);
                    (C) by striking section <<NOTE: 42 USC 284b.>> 407;
                    (D) in section 409C(b), <<NOTE: 42 USC 284g.>> by 
                striking paragraph (4) and redesignating paragraphs (5) 
                and (6) as paragraphs (4) and (5), respectively;
                    (E) in section 409E, <<NOTE: 42 USC 284i.>> by 
                striking subsection (d);
                    (F) in section 417C, <<NOTE: 42 USC 285a-9.>> by 
                striking subsection (f);
                    (G) in section <<NOTE: 42 USC 285b-7b.>> 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, <<NOTE: 42 USC 285c-3.>> by 
                striking subsections (c) and (d);
                    (I) in section 442, <<NOTE: 42 USC 285d-7.>> by 
                striking subsection (j) and redesignating subsection (k) 
                as subsection (j);
                    (J) in section 464D, <<NOTE: 42 USC 285m-4.>> by 
                striking subsection (j);
                    (K) in section 464E, <<NOTE: 42 USC 285m-5.>> by 
                striking subsection (e);
                    (L) in section 464T, <<NOTE: 42 USC 285p-2.>> by 
                striking subsection (e);
                    (M) in section 481A, <<NOTE: 42 USC 287a-2.>> by 
                striking subsection (h);
                    (N) in section 485E, <<NOTE: 42 USC 287c-31.>> by 
                striking subsection (k);
                    (O) in section <<NOTE: 42 USC 287c-34.>> 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 <<NOTE: 42 USC 289c.>> 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, <<NOTE: 42 USC 280e-3.>> by 
                striking subsection (e);
                    (B) in section <<NOTE: 42 USC 300c-12.>> 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 <<NOTE: 42 USC 
                300cc.>> 2301;
                    (D) in section 2354, <<NOTE: 42 USC 300cc-41.>> by 
                striking subsection (b) and redesignating subsection (c) 
                as subsection (b);
                    (E) in section 2356, <<NOTE: 42 USC 300cc-43.>> by 
                striking subsection (e) and redesignating subsections 
                (f) and (g) as subsections (e) and (f), respectively; 
                and
                    (F) in section <<NOTE: 42 USC 300cc-45.>> 2359(b)--
                          (i) by striking paragraph (2);
                          (ii) <<NOTE: Deadline.>> 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

[[Page 120 STAT. 3694]]

                          (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 <<NOTE: 42 USC 
                241 note.>> 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 <<NOTE: 42 
                USC 242q-3.>> and redesignating section 305 and 
                306 <<NOTE: 42 USC 242q-4, 242q-5.>> as sections 304 and 
                305, respectively.
                    (C) Section 4923 of Public Law 105-33 <<NOTE: 42 USC 
                254c-2 note.>> is amended by striking subsection (b).
                    (D) Public Law 106-310 is amended <<NOTE: 42 
                USC 247b-4e.>> by striking section 105.
                    (E) Section 1004 of Public Law 106-310 <<NOTE: 42 
                USC 285g note.>> is amended by striking subsection (d).
                    (F) Section 3633 of Public Law 106-310 (as amended 
                by section 2502 of Public Law 107-273) <<NOTE: 114 Stat. 
                1236.>> is repealed.
                    (G) Public Law 106-525 is amended by striking 
                section 105. <<NOTE: 42 USC 287c-31 note.>> 
                    (H) Public Law 107-84 is amended by striking section 
                6. <<NOTE: 42 USC 247b-18 note.>> 
                    (I) Public Law 108-427 is amended by striking 
                section 3 <<NOTE: 118 Stat. 2430, 2431.>> and 
                redesignating sections 4 and 5 as sections 3 and 4, 
                respectively.

SEC. 105. <<NOTE: 42 USC 284n.>> 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.

[[Page 120 STAT. 3695]]

            (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.

[[Page 120 STAT. 3696]]

SEC. 106. <<NOTE: 42 USC 284 note.>> 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) <<NOTE: Termination.>> Upon the 
                      appointment of the appointed members of the Board 
                      under clause (i)(II), the terms of service as 
                      members of the Board of the ex officio members of 
                      the Board described in clauses (i) and (ii) of 
                      subparagraph (B) shall terminate. The ex officio 
                      members of the Board described in clauses (iii) 
                      and (iv) of subparagraph (B) shall continue to 
                      serve as ex officio members of the Board.''; and
                          (ii) in subparagraph (G), by inserting 
                      ``appointed'' after ``that the number of'';
                    (B) by amending paragraph (3)(B) to read as follows:
                    ``(B) Any vacancy in the membership of the appointed 
                members of the Board shall be filled in accordance with 
                the bylaws of the Foundation established in accordance 
                with paragraph (6), and shall not affect the power of 
                the remaining appointed members to execute the duties of 
                the Board.''; and
                    (C) in paragraph (5), by inserting ``appointed'' 
                after ``majority of the'';
            (2) in subsection (j)--
                    (A) in paragraph (2), by striking 
                ``(d)(2)(B)(i)(II)'' and inserting ``(d)(6)'';
                    (B) in paragraph (4)--
                          (i) in subparagraph (A), by inserting ``, 
                      including an accounting of the use of amounts 
                      transferred under subsection (l)'' before the 
                      period at the end; and
                          (ii) by striking subparagraph (C) and 
                      inserting the following:

[[Page 120 STAT. 3697]]

                    ``(C) The Foundation shall make copies of each 
                report submitted under subparagraph (A) available--
                          ``(i) <<NOTE: Public information.>> 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. <<NOTE: 42 USC 281 note.>> 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.

[[Page 120 STAT. 3698]]

                   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.--

[[Page 120 STAT. 3699]]

                    ``(A) In general.--Subject <<NOTE: Effective 
                date.>> 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

[[Page 120 STAT. 3700]]

                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) <<NOTE: Deadline.>> In general.--In the 
                      case of a State identified under subparagraph 
                      (A)(i) that is also described in subparagraph (B), 
                      notwithstanding subsection (e), the applicable 
                      amount described in clause (ii) shall not be 
                      available for expenditure by the State on or after 
                      April 1, 2007, and shall be redistributed in 
                      accordance with paragraph (2).
                          ``(ii) Applicable amount.--For purposes of 
                      clause (i), the applicable amount described in 
                      this clause is the lesser of--
                                    ``(I) 50 percent of the amount 
                                described in subparagraph (A)(ii)(I); or
                                    ``(II) $20,000,000.
            ``(4) Special rules.--
                    ``(A) Expenditures limited to coverage for 
                populations eligible on october 1, 2006.--A State shall 
                use amounts redistributed under this subsection only for 
                expenditures for providing child health assistance or 
                other health benefits coverage for populations eligible 
                for such assistance or benefits under the State child 
                health plan (including under a waiver of such plan) on 
                October 1, 2006.
                    ``(B) Regular fmap for expenditures for coverage of 
                nonchild populations.--To the extent a State uses 
                amounts redistributed under this subsection for 
                expenditures for providing child health assistance or 
                other health benefits coverage to an individual who is 
                not a child or a pregnant woman, the Federal medical 
                assistance percentage (as defined in the first sentence 
                of section 1905(b)) applicable to the State for the 
                fiscal year shall apply to such expenditures for 
                purposes of making payments to the State under 
                subsection (a) of section 2105 from such amounts.
            ``(5) Retrospective adjustment.--
                    ``(A) In general.--The <<NOTE: Deadline.>> 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

[[Page 120 STAT. 3701]]

                (3), the Secretary may use only the allotments for 
                fiscal year 2005 under subsection (b) that remain 
                unexpended through the end of fiscal year 2007 for 
                providing any additional amounts to States described in 
                paragraph (2)(B) (without regard to whether such 
                unexpended allotments are from States described in 
                paragraph (3)(B)).
                    ``(C) Rules of construction.--Nothing in this 
                subsection shall be construed as--
                          ``(i) authorizing the Secretary to use the 
                      allotments for fiscal year 2006 or 2007 under 
                      subsection (b) of States described in paragraph 
                      (3)(B) to provide additional amounts to States 
                      described in paragraph (2)(B) for purposes of 
                      eliminating the funding shortfall for such States 
                      for fiscal year 2007; or
                          ``(ii) limiting the authority of the Secretary 
                      to redistribute the allotments for fiscal year 
                      2005 under subsection (b) that remain unexpended 
                      through the end of fiscal year 2007 and are 
                      available for redistribution under subsection (f) 
                      after the application of subparagraph (B).
            ``(6) 1-year availability; no 
        further <<NOTE: Deadline.>> 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

[[Page 120 STAT. 3702]]

        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.

    Approved January 15, 2007.

LEGISLATIVE HISTORY--H.R. 6164:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 109-687 (Comm. on Energy and Commerce).
CONGRESSIONAL RECORD, Vol. 152 (2006):
            Sept. 26, considered and passed House.
            Dec. 8, considered and passed Senate, amended. House 
                concurred in Senate amendment.

                                  <all>
```