‘‘(B) ADMINISTRATIVE
UNIT.—For pur-
poses of paragraph (1), an administrative unit 
within the National Institutes of Health that is 
established under authority of subparagraph 
(A) shall be considered a national research in-
stitute or a national center, without regard to 
whether the administrative unit is designated 
by the Director of NIH as such an institute or 
center. 
‘‘(C) PUBLIC PROCESS.—Any reorganiza-
tion under subparagraph (A) shall be carried 
out by regulation in accordance with the proce-
dures for substantive rules under section 553 of 
title 5, United States Code. 
‘‘(3) REORGANIZATION OF OFFICE OF DIREC-
TOR.—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 
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would be more efficiently carried out under such a 
reorganization. 
‘‘(4) INTERNAL
REORGANIZATION
OF
INSTI-
TUTES
AND
CENTERS.—Notwithstanding any con-
flicting provisions of this title, the director of a na-
tional research institute or a national center may, 
after a series of public hearings and with the ap-
proval of the Director of NIH, reorganize the divi-
sions, centers, or other administrative units within 
such institute or center, including the addition, re-
moval, 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 divi-
sions, centers, or other units would be more effi-
ciently carried out under such a reorganization. 
‘‘(5) 
NOTICE
TO
CONGRESS; 
EFFECTIVE 
DATE.—A reorganization under paragraph (2), (3), 
or (4) may not take effect before the expiration of 
90 days after the Secretary submits to the Com-
mittee on Energy and Commerce of the House of 
Representatives and the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate written 
notice of the reorganization. 
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‘‘(e) SCIENTIFIC MANAGEMENT REVIEW BOARD FOR 
PERIODIC ORGANIZATIONAL REVIEWS.— 
‘‘(1) IN
GENERAL.—Not later than 60 days 
after the date of the enactment of the National In-
stitutes of Health Reform Act of 2006, the Sec-
retary 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) re-
garding 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 rec-
ommendations of the Board regarding the 
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use of the authorities and the reasons un-
derlying the recommendations. 
‘‘(B) CERTAIN RESPONSIBILITIES REGARD-
ING REPORTS.—The activities of the Board with 
respect to a report under subparagraph (A) 
shall include the following: 
‘‘(i) Reviewing all programs of the 
National Institutes of Health (referred to 
in this subsection as ‘NIH’) in order to de-
termine the progress and cost-effectiveness 
of such programs and the allocation among 
the programs of the resources of NIH. 
‘‘(ii) Determining pending scientific 
opportunities, and public health needs, 
with respect to research within the juris-
diction of NIH. 
‘‘(iii) For any proposal for organiza-
tional changes to which the Board gives 
significant consideration as a possible rec-
ommendation in such report— 
‘‘(I) analyzing the budgetary and 
operational consequences of the pro-
posed changes; 
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‘‘(II) estimating the level of re-
sources needed to implement the pro-
posed changes; and 
‘‘(III) assuming the proposed 
changes will be made and making a 
recommendation for the allocation of 
the resources of NIH among the na-
tional research institutes and national 
centers. 
‘‘(C) CONSULTATION.—In carrying out 
subparagraph (A), the Board shall consult 
with— 
‘‘(i) the heads of national research in-
stitutes and national centers whose direc-
tors 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 pa-
tients. 
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‘‘(3) COMPOSITION OF BOARD.—The member-
ship of the Board may not exceed 21 individuals, all 
of whom shall be voting members. The Board shall 
be composed of the following: 
‘‘(A) The Director of NIH, who shall be a 
permanent member on an ex officio basis. 
‘‘(B) Not fewer than 9 officials who are di-
rectors of national research institutes or na-
tional centers. The Secretary shall designate 
such officials for membership and shall ensure 
that the group of officials so designated in-
cludes directors of— 
‘‘(i) national research institutes whose 
budgets are substantial relative to a major-
ity of the other institutes; 
‘‘(ii) 
national 
research 
institutes 
whose budgets are small relative to a ma-
jority of the other institutes; 
‘‘(iii) national research institutes that 
have been in existence for a substantial pe-
riod of time without significant organiza-
tional change under subsection (d); 
‘‘(iv) as applicable, national research 
institutes that have undergone significant 
organization changes under such sub-
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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. 
‘‘(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 
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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 
the needs and opportunities of patients 
and their families with respect to proposals 
referred to in clause (i). 
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‘‘(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; 
‘‘(ii) the Committee on Health, Edu-
cation, Labor, and Pensions within the 
Senate; 
‘‘(iii) the Secretary; and 
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‘‘(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-
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), 
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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 
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 
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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; 
(3) by inserting subpart 19, as so redesignated, 
after subpart 18 of such part C; and 
(4) in subpart 19, as so redesignated— 
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(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 
(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 
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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; 
‘‘(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; 
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‘‘(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)— 
‘‘(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 
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‘‘(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— 
‘‘(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 
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‘‘(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 
relative to other matters, to respond to new issues 
and scientific emergencies, and to act on research 
opportunities of high priority; 
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‘‘(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-
ommendations with respect to the conduct and sup-
port of research described in subsection (b)(7). 
‘‘(2) MEMBERSHIP.— 
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