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(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 sec-
tion 304 and redesignating section 305 and 306
as sections 304 and 305, respectively.
(C) Section 4923 of Public Law 105–33 is
amended by striking subsection (b).
(D) Public Law 106–310 is amended by
striking section 105.
(E) Section 1004 of Public Law 106–310 is
amended by striking subsection (d).
(F) Section 3633 of Public Law 106–310
(as amended by section 2502 of Public Law 107–
273) is repealed.
(G) Public Law 106–525 is amended by
striking section 105.
(H) Public Law 107–84 is amended by
striking section 6.
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(I) Public Law 108–427 is amended by
striking section 3 and redesignating sections 4
and 5 as sections 3 and 4, respectively.
SEC. 105. CERTAIN DEMONSTRATION PROJECTS.
(a) BRIDGING THE SCIENCES.—
(1) IN GENERAL.—From amounts to be appro-
priated 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 consulta-
tion with the Director of the National Science Foun-
dation, the Secretary of Energy, and other agency
heads when necessary, may allocate funds for the na-
tional 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, behav-
ioral, and social sciences and the physical, chemical,
mathematical, and computational sciences.
(2) GOALS, PRIORITIES, AND METHODS; INTER-
AGENCY COLLABORATION.—The Secretary shall estab-
lish goals, priorities, and methods of evaluation for
research under paragraph (1), and shall provide for
interagency collaboration with respect to such re-
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search. In developing such goals, priorities, and meth-
ods, the Secretary shall ensure that—
(A) the research reflects the vision of inno-
vation and higher risk with long-term payoffs;
and
(B) the research includes a wide spectrum
of projects, funded at various levels, with varying
timeframes.
(3) PEER REVIEW.—A grant may be made under
paragraph (1) only if the application for the grant
has undergone technical and scientific peer review
under section 492 of the Public Health Service Act
(42 U.S.C. 289a) and has been reviewed by the advi-
sory council under section 402(k) of such Act (as
added by section 102(c) of this Act) or has been re-
viewed by an advisory council composed of represent-
atives from appropriate scientific disciplines who can
fully evaluate the applicant.
(b) HIGH-RISK, HIGH-REWARD RESEARCH.—
(1) IN GENERAL.—From amounts to be appro-
priated under section 402A(b) of the Public Health
Service Act, the Secretary, acting through the Direc-
tor of NIH, may allocate funds for the national re-
search institutes and national centers to make awards
of grants or contracts or to engage in other trans-
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actions 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 re-
search institute or national center may conduct or
support such high-impact, cutting-edge research (with
funds allocated under the preceding sentence or other-
wise 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 cen-
ter 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 ap-
plicable, to enable such research to be carried out with
maximum flexibility and speed.
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(4) PUBLIC-PRIVATE
PARTNERSHIPS.—In pro-
viding 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 de-
scribed in paragraph (1) may be made only if the ap-
plication 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 re-
viewed 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 Direc-
tor 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.
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SEC. 106. ENHANCING THE CLINICAL AND TRANSLATIONAL
SCIENCE AWARD.
(a) IN GENERAL.—In administering the Clinical and
Translational Science Award, the Director of NIH shall es-
tablish 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 agen-
da.
(b) REPORT.—As part of the biennial report under sec-
tion 403 of the Public Health Service Act, the Director of
NIH shall provide an evaluation and comparison of out-
comes and effectiveness of training programs under sub-
section (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.
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SEC. 107. FOUNDATION FOR THE NATIONAL INSTITUTES OF
HEALTH.
Section 499 of the Public Health Service Act (42
U.S.C. 290b) is amended—
(1) in subsection (d)—
(A) in paragraph (1)—
(i) by amending subparagraph (D)(ii)
to read as follows:
‘‘(ii) Upon the appointment of the ap-
pointed 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 es-
tablished in accordance with paragraph (6), and
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shall not affect the power of the remaining ap-
pointed members to execute the duties of the
Board.’’; and
(C) in paragraph (5), by inserting ‘‘ap-
pointed’’ after ‘‘majority of the’’;
(2) in subsection (j)—
(A) 
in 
paragraph 
(2), 
by 
striking
‘‘(d)(2)(B)(i)(II)’’ and inserting ‘‘(d)(6)’’;
(B) in paragraph (4)—
(i) in subparagraph (A), by inserting
‘‘, including an accounting of the use of
amounts transferred under subsection (l)’’
before the period at the end; and
(ii) by striking subparagraph (C) and
inserting the following:
‘‘(C) The Foundation shall make copies of
each report submitted under subparagraph (A)
available—
‘‘(i) for public inspection, and shall
upon request provide a copy of the report to
any individual for a charge that shall not
exceed the cost of providing the copy; and
‘‘(ii) to the appropriate committees of
Congress.’’; and
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(C) in paragraph (10), by striking ‘‘of
Health.’’ and inserting ‘‘of Health and the Na-
tional 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 Di-
rector 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 deter-
mines’’ and inserting the following:
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‘‘(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 Sec-
retary may’’.
(2) 
CONFORMING
AMENDMENTS.—Section
401(d)(2) of the Public Health Service Act, as des-
ignated 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 Re-
sources’’ each place such term appears and in-
serting ‘‘Health, Education, Labor, and Pen-
sions’’.
(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).’’.
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SEC. 109. APPLICABILITY.
This title and the amendments made by this title apply
only with respect to amounts appropriated for fiscal year
2007 or subsequent fiscal years.
TITLE II—MISCELLANEOUS
PROVISIONS
SEC. 201. REDISTRIBUTION OF CERTAIN UNUSED SCHIP AL-
LOTMENTS FOR FISCAL YEARS 2004 AND 2005
TO REDUCE FUNDING SHORTFALLS FOR FIS-
CAL 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 fol-
lowing new subsection:
‘‘(h) SPECIAL RULES TO ADDRESS FISCAL YEAR 2007
SHORTFALLS.—
‘‘(1) REDISTRIBUTION OF UNUSED FISCAL YEAR
2004 ALLOTMENTS.—
‘‘(A) IN
GENERAL.—Notwithstanding sub-
section (f) and subject to subparagraphs (C) and
(D), with respect to months beginning during fis-
cal year 2007, the Secretary shall provide for a
redistribution under such subsection from the al-
lotments for fiscal year 2004 under subsection
(b) that are not expended by the end of fiscal
year 2006, to a shortfall State described in sub-
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paragraph (B), such amount as the Secretary de-
termines 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 de-
scribed 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 allot-
ments 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 allot-
ment for fiscal year 2007.
‘‘(C) FUNDS REDISTRIBUTED IN THE ORDER
IN
WHICH
STATES
REALIZE
FUNDING
SHORT-
FALLS.—The Secretary shall redistribute the
amounts available for redistribution under sub-
paragraph (A) to shortfall States described in
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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) avail-
able 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 REDIS-
TRIBUTION OF CERTAIN UNUSED FISCAL YEAR 2005
ALLOTMENTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (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 de-
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scribed in subparagraph (B), such amount as the
Secretary determines will eliminate the esti-
mated shortfall described in such subparagraph
for such State for the month.
‘‘(B) SHORTFALL STATE DESCRIBED.—For
purposes of this paragraph, a shortfall State de-
scribed 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 expendi-
tures under such plan for such State for fiscal
year 2007 will exceed the sum of—
‘‘(i) the amount of the State’s allot-
ments 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 allot-
ment for fiscal year 2007.
‘‘(C) FUNDS REDISTRIBUTED IN THE ORDER
IN
WHICH
STATES
REALIZE
FUNDING
SHORT-
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FALLS.—The Secretary shall redistribute the
amounts available for redistribution under sub-
paragraph (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 FIS-
CAL 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 re-
ceived an allotment for fiscal year 2005
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under subsection (b) which have not ex-
pended 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 de-
scribed in subparagraph (B).
‘‘(B) STATES WITH FUNDS IN EXCESS OF
200 PERCENT OF NEED.—A State described in
this subparagraph is a State for which the Sec-
retary 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 pro-
jected expenditures under this title for the State
for fiscal year 2007.
‘‘(C) REDISTRIBUTION AND LIMITATION ON
AVAILABILITY OF PORTION OF UNUSED ALLOT-
MENTS FOR CERTAIN STATES.—
‘‘(i) IN GENERAL.—In the case of a
State identified under subparagraph (A)(i)
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that is also described in subparagraph (B),
notwithstanding subsection (e), the applica-
ble amount described in clause (ii) shall not
be available for expenditure by the State on
or after April 1, 2007, and shall be redis-
tributed in accordance with paragraph (2).
‘‘(ii) APPLICABLE AMOUNT.—For pur-
poses of clause (i), the applicable amount
described in this clause is the lesser of—
‘‘(I) 50 percent of the amount de-
scribed 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
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under this subsection for expenditures for pro-
viding 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 sen-
tence of section 1905(b)) applicable to the State
for the fiscal year shall apply to such expendi-
tures for purposes of making payments to the
State under subsection (a) of section 2105 from
such amounts.
‘‘(5) RETROSPECTIVE ADJUSTMENT.—
‘‘(A) IN GENERAL.—The Secretary may ad-
just 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 para-
graph (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 AD-
JUSTMENTS ONLY FROM UNEXPENDED 2005 AL-
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LOTMENTS.—Notwithstanding 
subsections 
(e)
and (f), to the extent the Secretary determines it
necessary to adjust the estimates and determina-
tions made for purposes of paragraphs (1), (2),
and (3), the Secretary may use only the allot-
ments for fiscal year 2005 under subsection (b)
that remain unexpended through the end of fiscal
year 2007 for providing any additional amounts
to States described in paragraph (2)(B) (without
regard to whether such unexpended allotments
are from States described paragraph (3)(B)).
‘‘(C) RULES
OF
CONSTRUCTION.—Nothing
in this subsection shall be construed as—
‘‘(i) authorizing the Secretary to use
the allotments for fiscal year 2006 or 2007
under subsection (b) of States described in
paragraph (3)(B) to provide additional
amounts to States described in paragraph
(2)(B) for purposes of eliminating the fund-
ing shortfall for such States for fiscal year
2007; or
‘‘(ii) limiting the authority of the Sec-
retary to redistribute the allotments for fis-
cal year 2005 under subsection (b) that re-
main unexpended through the end of fiscal
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year 2007 and are available for redistribu-
tion under subsection (f) after the applica-
tion of subparagraph (B).
‘‘(6) 1-YEAR AVAILABILITY; NO FURTHER REDIS-
TRIBUTION.—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 Sep-
tember 30, 2007, and any amounts of such redistribu-
tions 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 sub-
section (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 in-
serting ‘‘2005, 2006, or 2007’’.
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(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 Fi-
nance of the Senate regarding the amounts redistributed to
States under section 2104 of the Social Security Act to re-
duce funding shortfalls for the State Children’s Health In-
surance Program (SCHIP) for fiscal year 2007. Such re-
port 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 Sec-
retary as of April 1, 2007; and
(2) the effect of the redistribution and limited
availability of unexpended fiscal year 2005 allotments
under such program on the States described in section
2104(h)(3)(B) of the Social Security Act (42 U.S.C.
1397dd(h)(3)(B)) on the basis of reports by States
submitted to the Secretary as of such date.
Attest:
Secretary.