tent possible, contract with or recognize private 
entities in carrying out subparagraph (B). 
‘‘(D) UNIFORM
APPLICATION
OF
STAND-
ARDS.—A standard approved under subpara-
graph (B)(i) for use in the electronic creation, 
maintenance, or exchange of health information 
shall preempt a standard adopted under State 
law, regulation, or rule for such a use. 
‘‘(4) INTRAGOVERNMENTAL
COORDINATOR.— 
The National Coordinator shall ensure that health 
information technology policies and programs of the 
Department of Health and Human Services are co-
ordinated with those of relevant executive branch 
agencies and departments with a goal to avoid dupli-
cation of effort and to ensure that each agency or 
department conducts programs within the areas of 
its greatest expertise and its mission in order to cre-
ate a national interoperable health information sys-
tem capable of meeting national public health needs 
effectively and efficiently. 
‘‘(5) ADVISOR TO OMB.—The National Coordi-
nator shall provide to the Director of the Office of 
Management and Budget comments and advice with 
respect to specific Federal health information tech-
nology programs.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section for each of fiscal years 
2006 through 2010.’’. 
(b) TREATMENT OF EXECUTIVE ORDER 13335.—Ex-
ecutive Order 13335 shall not have any force or effect 
after the date of the enactment of this Act. 
(c) TRANSITION FROM ONCHIT UNDER EXECUTIVE 
ORDER.— 
(1) IN GENERAL.—All functions, personnel, as-
sets, liabilities, administrative actions, and statutory 
reporting requirements applicable to the old Na-
tional Coordinator or the Office of the old National 
Coordinator on the date before the date of the enact-
ment of this Act shall be transferred, and applied in 
the same manner and under the same terms and 
conditions, to the new National Coordinator and the 
Office of the new National Coordinator as of the 
date of the enactment of this Act. 
(2) ACTING NATIONAL COORDINATOR.—Before 
the appointment of the new National Coordinator, 
the old National Coordinator shall act as the Na-
tional Coordinator for Health Information Tech-
nology until the office is filled as provided in section 
271(a) of the Public Health Service Act, as added
by subsection (a). The President may appoint the 
old National Coordinator as the new National Coor-
dinator. 
(3) DEFINITIONS.—For purposes of this sub-
section: 
(A) NEW NATIONAL COORDINATOR.—The 
term ‘‘new National Coordinator’’ means the 
National Coordinator for Health Information 
Technology appointed under section 271(a) of 
the Public Health Service Act, as added by sub-
section (a). 
(B) OLD
NATIONAL
COORDINATOR.—The 
term ‘‘old National Coordinator’’ means the 
National Coordinator for Health Information 
Technology appointed under Executive Order 
13335. 
SEC. 3. SAFE HARBORS FOR PROVISION OF HEALTH INFOR-
MATION TECHNOLOGY AND TRAINING SERV-
ICES TO HEALTH CARE PROFESSIONALS. 
(a) FOR CIVIL PENALTIES.—Section 1128A(b) of the 
Social Security Act (42 U.S.C. 1320a–7a(b)) is amended 
by adding at the end the following new paragraph: 
‘‘(4)(A) For purposes of this subsection, a payment 
described in paragraph (1) does not include any nonmone-
tary remuneration (in the form of health information tech-
nology and related training services) made by an entity 
to a physician if— 
‘‘(i) such remuneration is made without a con-
dition that— 
‘‘(I) limits or restricts the use of the health 
information technology to services provided by 
the physician to individuals receiving services at 
the entity; 
‘‘(II) limits or restricts the use of the 
health information technology in conjunction 
with other health information technology; or 
‘‘(III) takes into account the volume or 
value of referrals (or other business generated) 
by the physician to the entity; 
‘‘(ii) in the case of such remuneration made on 
a date that is on or after the date described in sec-
tion 3(d)(2) of the Health Information Technology 
Promotion Act of 2005, to the extent the National 
Coordinator of Health Information Technology has 
approved a standard under section 271(c)(3)(B)(i) 
of the Public Health Service Act, the health infor-
mation technology provided conforms to such stand-
ard; 
‘‘(iii) in the case of such remuneration made on 
or after the date that is three years after the date
described in section 3(d)(2) of the Health Informa-
tion Technology Promotion Act of 2005, if the Sec-
retary establishes criteria under section 3(e)(3) of 
such Act, such remuneration is made in accordance 
with such criteria; and 
‘‘(iv) such remuneration is arranged for in a 
written agreement that is signed by a representative 
of the entity and by the physician and that specifies 
the remuneration made. 
‘‘(B) For purposes of subparagraph (A) and sections 
1128B(b)(3)(J) and 1877(e)(9), the term ‘health informa-
tion technology’ means hardware, software, license, right, 
intellectual property, equipment, or other information 
technology used primarily for the electronic creation, 
maintenance, and exchange of clinical health information 
to improve health care quality or efficiency.’’. 
(b) 
FOR
CRIMINAL
PENALTIES.—Section 
1128B(b)(3) of such Act (42 U.S.C. 1320a–7b(b)(3)) is 
amended— 
(1) in subparagraph (G), by striking ‘‘and’’ at 
the end; 
(2) in the subparagraph (H) added by section 
237(d) of the Medicare Prescription Drug, Improve-
ment, and Modernization Act of 2003 (Public Law 
108–173; 117 Stat. 2213)—