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‘‘(iv) as applicable, national research 
institutes that have undergone significant 
organization changes under such sub-
section, or that have been established 
under such subsection, other than national 
research institutes for which such changes 
have been in place for a substantial period 
of time; and 
‘‘(v) national centers. 
‘‘(C) Members appointed by the Secretary 
from among individuals who are not officers or 
employees of the United States. Such members 
shall include— 
‘‘(i) individuals representing the inter-
ests of public or private institutions of 
higher education that have historically re-
ceived funds from NIH to conduct re-
search; and 
‘‘(ii) individuals representing the in-
terests of private entities that have re-
ceived funds from NIH to conduct research 
or that have broad expertise regarding how 
the National Institutes of Health func-
tions, exclusive of private entities to which 
clause (i) applies. 
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‘‘(4) CHAIR.—The Chair of the Board shall be 
selected by the Secretary from among the appointed 
members of the Board, except that the Secretary 
may select the Director of NIH as the Chair. The 
term of office of the Chair shall be 2 years. 
‘‘(5) MEETINGS.— 
‘‘(A) IN GENERAL.—The Board shall meet 
at the call of the Chair or upon the request of 
the Director of NIH, but not fewer than 5 
times with respect to issuing any particular re-
port under paragraph (2)(A). The location of 
the meetings of the Board is subject to the ap-
proval of the Director of NIH. 
‘‘(B) PARTICULAR FORUMS.—Of the meet-
ings held under subparagraph (A) with respect 
to a report under paragraph (2)(A)— 
‘‘(i) one or more shall be directed to-
ward 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 to-
ward consumer organizations to address 
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the needs and opportunities of patients 
and their families with respect to proposals 
referred to in clause (i). 
‘‘(C) 
AVAILABILITY
OF
INFORMATION 
FROM FORUMS.—For each meeting under sub-
paragraph (B), the Director of NIH shall post 
on the Internet site of the National Institutes 
of Health a summary of the proceedings. 
‘‘(6) COMPENSATION; TERM OF OFFICE.—The 
provisions of subsections (b)(4) and (c) of section 
406 apply with respect to the Board to the same ex-
tent and in the same manner as such provisions 
apply with respect to an advisory council referred to 
in such subsections, except that the reference in 
such subsection (c) to 4 years regarding the term of 
an appointed member is deemed to be a reference to 
5 years. 
‘‘(7) REPORTS.— 
‘‘(A) 
RECOMMENDATIONS
FOR 
CHANGES.—Each 
report 
under 
paragraph 
(2)(A) shall be submitted to— 
‘‘(i) the Committee on Energy and 
Commerce within the House of Represent-
atives; 
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‘‘(ii) the Committee on Health, Edu-
cation, Labor, and Pensions within the 
Senate; 
‘‘(iii) the Secretary; and 
‘‘(iv) officials with organizational au-
thorities, other than any such official who 
served as a member of the Board with re-
spect to the report involved. 
‘‘(B) AVAILABILITY TO PUBLIC.—The Di-
rector of NIH shall post each report under 
paragraph (2) on the Internet site of the Na-
tional Institutes of Health. 
‘‘(C) REPORT ON BOARD ACTIVITIES.—Not 
later than 18 months after the date of the en-
actment 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 RECOMMENDA-
TION OF SCIENTIFIC MANAGEMENT REVIEW BOARD.— 
‘‘(1) IN GENERAL.—With respect to an official 
who has organizational authorities within the mean-
ing 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, ex-
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cept as provided in paragraph (2) of this subsection, 
make the change in accordance with the following: 
‘‘(A) Not later than 100 days after the re-
port is submitted under subsection (e)(7)(A), 
the official shall initiate the applicable public 
process required in subsection (d) toward mak-
ing the change. 
‘‘(B) The change shall be fully imple-
mented not later than the expiration of the 3- 
year period beginning on the date on which 
such process is initiated. 
‘‘(2) OBJECTION BY DIRECTOR OF NIH.— 
‘‘(A) IN
GENERAL.—Paragraph (1) does 
not apply to a recommendation for an organiza-
tional change made in a report under sub-
section (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 un-
derlying the objection. 
‘‘(B) SCOPE
OF
OBJECTION.—For pur-
poses of subparagraph (A), an objection by the 
Director of NIH may be made to the entirety 
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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 imple-
mented in accordance with paragraph (1). 
‘‘(g) DEFINITIONS.—For purposes of this title: 
‘‘(1) The term ‘Director of NIH’ means the Di-
rector of the National Institutes of Health. 
‘‘(2) The terms ‘national research institute’ and 
‘national center’ mean an agency of the National In-
stitutes of Health that is— 
‘‘(A) listed in subsection (b) and not termi-
nated 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 in-
cludes its agencies.’’. 
(b) CONFORMING AMENDMENTS.—Title IV of the 
Public Health Service Act (42 U.S.C. 281 et seq.) is 
amended— 
(1) by redesignating subpart 3 of part E as 
subpart 19; 
(2) by transferring subpart 19, as so redesig-
nated, to part C of such title IV; 
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(3) by inserting subpart 19, as so redesignated, 
after subpart 18 of such part C; and 
(4) in subpart 19, as so redesignated— 
(A) by redesignating section 485B as sec-
tion 464z–1; 
(B) by striking ‘‘National Center for 
Human Genome Research’’ each place such 
term appears and inserting ‘‘National Human 
Genome Research Institute’’; and 
(C) by striking ‘‘Center’’ each place such 
term appears and inserting ‘‘Institute’’. 
SEC. 3. AUTHORITY OF DIRECTOR OF NIH. 
(a) IN GENERAL.—Section 402(b) of the Public 
Health Service Act (42 U.S.C. 282(b)) is amended— 
(1) by redesignating paragraph (14) as para-
graph (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 
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(6) by striking paragraphs (1) through (3) and 
inserting the following paragraphs: 
‘‘(1) shall be responsible for the overall direc-
tion of the National Institutes of Health and for the 
establishment and implementation of general policies 
respecting the management and operation of pro-
grams and activities within the National Institutes 
of Health; 
‘‘(2) shall coordinate and oversee the operation 
of the national research institutes, national centers, 
and administrative entities within the National Insti-
tutes of Health; 
‘‘(3) shall, in consultation with the heads of the 
national research institutes and national centers, be 
responsible for program coordination across the na-
tional research institutes and national centers, in-
cluding conducting priority-setting reviews, to ensure 
that the research portfolio of the National Institutes 
of Health is balanced and free of unnecessary, dupli-
cative research, and takes advantage of collaborative, 
cross-cutting research; 
‘‘(4) shall assemble accurate data to be used to 
assess research priorities, including information to 
better evaluate scientific opportunity, public health 
burdens, and progress in reducing health disparities; 
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‘‘(5) shall ensure that scientifically based stra-
tegic planning is implemented in support of research 
priorities as determined by the agencies of the Na-
tional Institutes of Health; 
‘‘(6) shall ensure that the resources of the Na-
tional 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 im-
portant areas of emerging scientific opportuni-
ties, rising public health challenges, or knowl-
edge 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 sup-
ported with funds referred to in subparagraph 
(B)— 
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‘‘(I) require as appropriate that pro-
posals include milestones and goals for the 
research; 
‘‘(II) require that the proposals in-
clude timeframes for funding of the re-
search; and 
‘‘(III) ensure appropriate consider-
ation of proposals for which the principal 
investigator is an individual who has not 
previously served as the principal investi-
gator 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 re-
search that is identified under subparagraph (A); 
and 
‘‘(C) may assign additional functions to the Di-
vision in support of responsibilities identified in sub-
paragraph (A), as determined appropriate by the Di-
rector; 
‘‘(8) shall, in coordination with the heads of the 
national research institutes and national centers, en-
sure that such institutes and centers— 
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‘‘(A) preserve an emphasis on investigator- 
initiated research project grants, including with 
respect to research involving collaboration be-
tween 2 or more such institutes or centers; and 
‘‘(B) when appropriate, maximize investi-
gator-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 appro-
priate advisory council under section 406 before the 
research proposals are approved for funding; 
‘‘(10) shall approve the establishment of all 
centers of excellence recommended by the national 
research institutes, other than centers recognized 
under section 414; 
‘‘(11) shall oversee research training for all of 
the national research institutes and National Re-
search Service Awards in accordance with section 
487; 
‘‘(12) may, from funds appropriated under sec-
tion 402A(b), reserve funds to provide for research 
on matters that have not received significant funding 
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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, col-
lect and retain registration fees obtained from third 
parties to defray expenses for scientific, educational, 
and research-related conferences;’’. 
(b) CERTAIN AUTHORITIES.—Section 402 of the 
Public Health Service Act (42 U.S.C. 282) is amended— 
(1) by striking subsections (i) and (l); and 
(2) by redesignating subsections (j) and (k) as 
subsections (i) and (j), respectively. 
(c) ADVISORY COUNCIL FOR DIRECTOR OF NIH.— 
Section 402 of the Public Health Service Act, as amended 
by subsection (b) of this section, is amended by adding 
after subsection (j) the following subsection: 
‘‘(k) COUNCIL OF COUNCILS.— 
‘‘(1) ESTABLISHMENT.—The Director of NIH 
shall establish within the Office of the Director an 
advisory council to be known as the ‘Council of 
Councils’ (referred to in this subsection as the 
‘Council’) for the purpose of advising the Director 
on matters related to the policies and activities of 
the Division of Program Coordination, Planning, 
and Strategic Initiatives, including making rec-
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ommendations with respect to the conduct and sup-
port of research described in subsection (b)(7). 
‘‘(2) MEMBERSHIP.— 
‘‘(A) IN GENERAL.—The Council shall be 
composed of 27 members selected by the Direc-
tor of NIH with approval from the Secretary 
from among the list of nominees under sub-
paragraph (C). 
‘‘(B) CERTAIN REQUIREMENTS.—In select-
ing 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 re-
search institute whose budget is substan-
tial relative to a majority of the other in-
stitutes. 
‘‘(C) NOMINATION.—The Director of NIH 
shall maintain an updated list of individuals 
who have been nominated to serve on the Coun-
cil, which list shall consist of the following: 
‘‘(i) For each national research insti-
tute and national center, 3 individuals 
nominated by the head of such institute or 
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center from among the members of the ad-
visory council of the institute or center, of 
which— 
‘‘(I) two shall be scientists; and 
‘‘(II) one shall be from the gen-
eral public or shall be a leader in the 
field of public policy, law, health pol-
icy, economics, or management. 
‘‘(ii) For each office within the Divi-
sion of Program Coordination, Planning, 
and Strategic Initiatives, 1 individual nom-
inated by the head of such office. 
‘‘(3) TERMS.— 
‘‘(A) IN GENERAL.—The term of service 
for a member of the Council shall be 6 years, 
except as provided in subparagraphs (B) and 
(C). 
‘‘(B) TERMS OF INITIAL APPOINTEES.—Of 
the initial members selected for the Council, the 
Director of NIH shall designate— 
‘‘(i) nine for a term of 6 years; 
‘‘(ii) nine for a term of 4 years; and 
‘‘(iii) nine for a term of 2 years. 
‘‘(C) VACANCIES.—Any member appointed 
to fill a vacancy occurring before the expiration 
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of the term for which the member’s predecessor 
was appointed shall be appointed only for the 
remainder of that term. A member may serve 
after the expiration of that member’s term until 
a successor has taken office.’’. 
(d) REVIEW BY ADVISORY COUNCILS OF RESEARCH 
PROPOSALS.—Section 492A(a)(2) of the Public Health 
Service Act (42 U.S.C. 289a–1(a)(2)) is amended by in-
serting before the period the following: ‘‘, and unless a 
majority of the voting members of the appropriate advi-
sory council under section 406, or as applicable, of the 
advisory council under section 402(k), has recommended 
the proposal for approval’’. 
(e) CONFORMING AMENDMENT.—Section 402(a) of 
the Public Health Service Act (42 U.S.C. 282(a)) is 
amended by striking ‘‘Director of the National Institutes 
of Health’’ and all that follows through ‘‘who shall’’ and 
inserting ‘‘Director of NIH who shall’’. 
(f) RULE OF CONSTRUCTION REGARDING AUTHORI-
TIES
OF NATIONAL RESEARCH INSTITUTES
AND NA-
TIONAL CENTERS.—This Act and the amendments made 
by this Act may not be construed as affecting the authori-
ties 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, 
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subject to the authorities of the Director of NIH under 
section 401 of the Public Health Service Act (as amended 
by section 2(a) of this Act). For purposes of the preceding 
sentence, the terms ‘‘national research institute’’, ‘‘na-
tional center’’, and ‘‘Director of NIH’’ have the meanings 
given such terms in such section 401. 
SEC. 4. AUTHORIZATION OF APPROPRIATIONS. 
(a) FUNDING.—Title IV of the Public Health Service 
Act (42 U.S.C. 281 et seq.) is amended by inserting after 
section 402 the following: 
‘‘SEC. 402A. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—For the purpose of carrying out 
this title, there are authorized to be appropriated— 
‘‘(1) $29,747,874,000 for fiscal year 2007; 
‘‘(2) $31,235,268,000 for fiscal year 2008; and 
‘‘(3) $32,797,032,000 for fiscal year 2009. 
‘‘(b) OFFICE OF THE DIRECTOR.—Of the amount au-
thorized to be appropriated under subsection (a) for a fis-
cal year, there are authorized to be appropriated for pro-
grams and activities under this title carried out through 
the Office of the Director of NIH the following amount, 
as applicable to the fiscal year: 
‘‘(1) $1,000,000,000 for fiscal year 2007. 
‘‘(2) $1,050,000,000 for fiscal year 2008. 
‘‘(3) $1,102,500,000 for fiscal year 2009. 
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‘‘(c) TRANS-NIH RESEARCH.— 
‘‘(1) COMMON FUND.— 
‘‘(A) 
ANNUAL
RESERVATION
OF 
AMOUNTS.—Of the total amount appropriated 
under subsection (a) for fiscal year 2007 or any 
subsequent fiscal year, the Director of NIH 
shall reserve the applicable amount under sub-
paragraph (B) for allocations under section 
402(b)(7)(B) (relating to research identified by 
the Division of Program Coordination, Plan-
ning, and Strategic Initiatives), which reserva-
tions shall constitute an account to be known as 
the Common Fund. 
‘‘(B) AMOUNT OF RESERVATION.—Subject 
to subparagraph (C), the amount reserved by 
the Director of NIH under subparagraph (A) 
for a fiscal year shall be the sum of— 
‘‘(i) the base amount determined 
under subparagraph (D); and 
‘‘(ii) any additional amount deter-
mined under subparagraph (E). 
Amounts reserved under the preceding sentence 
shall remain available until expended. 
‘‘(C) MAXIMUM RESERVATION.— 
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‘‘(i) IN
GENERAL.—The amount re-
served by the Director of NIH under sub-
paragraph (A) for a fiscal year shall not 
exceed 5 percent of the total amount ap-
propriated under subsection (a) for such 
fiscal year, subject to clause (ii). 
‘‘(ii) APPLICABILITY.—Clause (i) may 
not apply with respect to any fiscal year 
beginning after the submission of rec-
ommendations under subparagraph (F). 
‘‘(iii) PRESERVATION
OF
RESERVA-
TION.—For any fiscal year following the 
first fiscal year for which the percentage 
that applies for purposes of clause (i) is 5 
percent, the reservation under subpara-
graph (A) for the fiscal year involved may 
not be less than 5 percent of the total 
amount appropriated under subsection (a) 
for such fiscal year. For fiscal year 2008 
and each subsequent fiscal year, the per-
centage constituted by the reservation 
under subparagraph (A) relative to the 
total amount appropriated under sub-
section (a) for the fiscal year involved may 
not be less than the percentage constituted 
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by the reservation under such subpara-
graph for the preceding fiscal year relative 
to the total amount appropriated under 
subsection (a) for such preceding fiscal 
year. 
‘‘(D) BASE
AMOUNT.—The base amount 
referred to in subparagraph (B)(i) for a fiscal 
year is— 
‘‘(i) for fiscal year 2007, the amount 
reserved by the Director of NIH for fiscal 
year 2006 for research described in section 
402(b)(7)(A)(i); and 
‘‘(ii) for fiscal year 2008 and each 
subsequent fiscal year, the amount re-
served under subparagraph (A) for the 
preceding fiscal year. 
‘‘(E) 
ADDITIONAL
AMOUNT
COR-
RESPONDING
TO
INCREASES
IN
APPROPRIA-
TIONS.—The additional amount referred to in 
subparagraph (B)(ii) is 50 percent of the 
amount by which the total amount appropriated 
under subsection (a) for the fiscal year involved 
exceeds the total amount appropriated under 
such subsection for the preceding fiscal year, 
except that for any fiscal year beginning after 
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