I 
109TH CONGRESS 
2D SESSION 
H. R. 4845 
To better prepare and develop the United States workforce for the global 
economy, and remove barriers that stifle innovation. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 2, 2006 
Mr. GOODLATTE (for himself, Mr. SMITH of Texas, Mrs. JOHNSON of Con-
necticut, Mr. PUTNAM, Mr. SWEENEY, and Mr. TIAHRT) introduced the 
following bill; which was referred to the Committee on the Judiciary, and 
in addition to the Committees on Ways and Means, Science, Education 
and the Workforce, and Energy and Commerce, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To better prepare and develop the United States workforce 
for the global economy, and remove barriers that stifle 
innovation. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Innovation and Competitiveness Act’’. 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title; table of contents. 
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TITLE I—REDUCE RED TAPE AND CREATE OPPORTUNITIES FOR 
ECONOMIC GROWTH 
Subtitle A—Business Activity Tax Simplification 
Sec. 101. Short title. 
Sec. 102. Removal of certain limitations on the application of Public Law 86– 
272. 
‘‘Sec. 105. Removal of certain limitations on the application of Public Law 
86–272. 
Sec. 103. Jurisdictional standard for State and local net income taxes and 
other business activity taxes. 
Sec. 104. Definitions. 
Sec. 105. Effective date. 
Subtitle B—Attorney Accountability 
Sec. 121. Short title. 
Sec. 122. Attorney accountability. 
Sec. 123. Applicability of Rule 11 to State cases affecting interstate commerce. 
Sec. 124. Prevention of forum-shopping. 
Sec. 125. Rule of construction. 
Sec. 126. Three-strikes Rule for suspending attorneys who commit multiple 
Rule 11 violations. 
Sec. 127. Presumption of Rule 11 violation for repeatedly relitigating same 
issue. 
Sec. 128. Enhanced sanctions for document destruction in pending Federal 
court proceedings. 
Sec. 129. Ban on concealment of unlawful conduct. 
TITLE II—INCREASE AMERICA’S TALENT POOL 
Sec. 201. Innovation Scholarship Program. 
‘‘SUBPART 6—INNOVATION SCHOLARSHIP PROGRAM 
‘‘Sec. 419A. Innovation mathematics and science honors scholarship pro-
gram. 
‘‘Sec. 419B. Mathematics and science incentive program. 
‘‘Sec. 419C. Mathematics and science education coordinating council 
grants. 
‘‘Sec. 419D. Authorization of appropriations. 
TITLE III—PROMOTION OF RESEARCH AND DEVELOPMENT 
Sec. 301. Short title. 
Sec. 302. Findings. 
Sec. 303. Permanent extension of research credit. 
Sec. 304. Increase in rates of alternative incremental credit. 
Sec. 305. Alternative simplified credit for qualified research expenses. 
TITLE IV—INCREASE ACCESS TO AND EFFICIENCY OF HEALTH 
CARE 
Subtitle A—Health Care Choice 
Sec. 401. Short title of subtitle. 
Sec. 402. Specification of constitutional authority for enactment of law. 
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Sec. 403. Findings. 
Sec. 404. Cooperative governing of individual health insurance coverage. 
‘‘PART D—COOPERATIVE GOVERNING OF INDIVIDUAL HEALTH INSURANCE 
COVERAGE 
‘‘Sec. 2795. Definitions. 
‘‘Sec. 2796. Application of law. 
‘‘Sec. 2797. Primary State must meet Federal floor before issuer may sell 
into secondary States. 
‘‘Sec. 2798. Enforcement. 
Sec. 405. Severability. 
Subtitle B—Health Information Technology Promotion 
Sec. 411. Short title of subtitle. 
Sec. 412. Office of the National Coordinator for Health Information Tech-
nology. 
‘‘PART D—HEALTH INFORMATION TECHNOLOGY 
‘‘Sec. 271. Office of the National Coordinator for Health Information 
Technology. 
Sec. 413. Safe harbors for provision of health information technology and train-
ing services to health care professionals. 
Sec. 414. Uniform health information laws and regulations. 
Sec. 415. Rulemaking to upgrade ASC X12 and NCPDP standards and ICD 
codes. 
Sec. 416. Report on the American Health Information Community. 
Sec. 417. Strategic plan for coordinating implementation of health information 
technology. 
TITLE V—SEAMLESS MOBILITY 
Sec. 501. Prohibition on impeding. 
TITLE 
I—REDUCE 
RED 
TAPE 
AND CREATE OPPORTUNITIES 
FOR ECONOMIC GROWTH 
Subtitle A—Business Activity Tax 
Simplification 
SEC. 101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Business Activity 
Tax Simplification Act of 2006’’. 
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SEC. 102. REMOVAL OF CERTAIN LIMITATIONS ON THE AP-
PLICATION OF PUBLIC LAW 86–272. 
(a) SOLICITATIONS WITH RESPECT TO SALES AND 
TRANSACTIONS OF OTHER THAN TANGIBLE PERSONAL 
PROPERTY.—Section 101 of the Act entitled ‘‘An Act re-
lating to the power of the States to impose net income 
taxes on income derived from interstate commerce, and 
authorizing studies by congressional committees of mat-
ters pertaining thereto’’, approved September 14, 1959 
(15 U.S.C. 381 et seq.), is amended— 
(1) in subsection (a)(1) by striking ‘‘of tan-
gible’’ and all that follows through ‘‘State; and’’ and 
inserting the following: ‘‘or transactions, which or-
ders are sent outside the State for approval or rejec-
tion and, if approved, are— 
‘‘(A) in the case of tangible personal prop-
erty, filled by shipment or delivery from a point 
outside the State; and 
‘‘(B) in the case of all other forms of prop-
erty, services, and other transactions, fulfilled 
from a point outside the State; 
and’’; 
(2) in subsection (c)— 
(A) by inserting ‘‘or fulfilling transactions’’ 
after ‘‘making sales’’; 
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(B) by inserting ‘‘or transactions’’ after 
‘‘sales’’ the other places it appears; and 
(C) by striking ‘‘of tangible personal prop-
erty’’ each place it appears; and 
(3) in subsection (d)(1) by striking ‘‘the sale of, 
tangible personal property’’ and inserting ‘‘a sale or 
transaction,’’. 
(b) APPLICATION OF PROHIBITIONS TO OTHER BUSI-
NESS ACTIVITY TAXES.—Title I of the Act entitled ‘‘An 
Act relating to the power of the States to impose net in-
come taxes on income derived from interstate commerce, 
and authorizing studies by congressional committees of 
matters pertaining thereto’’, approved September 14, 
1959 (15 U.S.C. 381 et seq.), is amended by adding at 
the end the following: 
‘‘SEC. 105. Beginning with taxable periods beginning 
on or after the first day of the first calendar year that 
begins after the date of the enactment of the Business 
Activity Tax Simplification Act of 2006, the prohibitions 
of section 101 that apply with respect to net income taxes 
shall also apply with respect to each other business activity 
tax, as defined in section 104 of the Business Activity Tax 
Simplification Act of 2006. A State or political subdivision 
thereof may not assess or collect any tax which by reason 
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