SECTION 1. ESTABLISHMENT OF NATIONAL CENTER FOR COMPLEMENTARY AND 
              ALTERNATIVE MEDICINE.

    (a) In General.--Title IV of the Public Health Service Act (42 
U.S.C. 281 et seq.) is amended--
            (1) by striking section 404E; and
            (2) in part E, by adding at the end the following:

``Subpart 5--National Center for Complementary and Alternative Medicine

``SEC. 485D. PURPOSE OF CENTER.

    ``(a) In General.--The general purposes of the National Center for 
Complementary and Alternative Medicine (in this subpart referred to as 
the `Center') are the conduct and support of basic and applied research 
(including both intramural and extramural research), research training, 
the dissemination of health information, and other programs with 
respect to identifying, investigating, and validating complementary and 
alternative treatment, diagnostic and prevention modalities, 
disciplines and systems. The Center shall be headed by a director, who 
shall be appointed by the Secretary. The Director of the Center shall 
report directly to the Director of NIH.
    ``(b) Advisory Council.--The Secretary shall establish an advisory 
council for the Center in accordance with section 406, except that at 
least half of the members of the advisory council who are not ex 
officio members shall include practitioners licensed in one or more of 
the major systems with which the Center is concerned, and at least 3 
individuals representing the interests of individual consumers of 
complementary and alternative medicine.
    ``(c) Complement to Conventional Medicine.--In carrying out 
subsection (a), the Director of the Center shall, as appropriate, study 
the integration of alternative treatment, diagnostic and prevention 
systems, modalities, and disciplines with the practice of conventional 
medicine as a complement to such medicine and into health care delivery 
systems in the United States.
    ``(d) Appropriate Scientific Expertise and Coordination With 
Institutes and Federal Agencies.--The Director of the Center, after 
consultation with the advisory council for the Center and the division 
of research grants, shall ensure that scientists with appropriate 
expertise in research on complementary and alternative medicine are 
incorporated into the review, oversight, and management processes of 
all research projects and other activities funded by the Center. In 
carrying out this subsection, the Director of the Center, as necessary, 
may establish review groups with appropriate scientific expertise. The 
Director of the Center shall coordinate efforts with other Institutes 
and Federal agencies to ensure appropriate scientific input and 
management.
    ``(e) Evaluation of Various Disciplines and Systems.--In carrying 
out subsection (a), the Director of the Center shall identify and 
evaluate alternative and complementary medical treatment, diagnostic 
and prevention modalities in each of the disciplines and systems with 
which the Center is concerned, including each discipline and system in 
which accreditation, national certification, or a State license is 
available.
    ``(f) Ensuring High Quality, Rigorous Scientific Review.--In order 
to ensure high quality, rigorous scientific review of complementary and 
alternative, diagnostic and prevention modalities, disciplines and 
systems, the Director of the Center shall conduct or support the 
following activities:
            ``(1) Outcomes research and investigations.
            ``(2) Epidemiological studies.
            ``(3) Health services research.
            ``(4) Basic science research.
            ``(5) Clinical trials.
            ``(6) Other appropriate research and investigational 
        activities.
The Director of NIH, in coordination with the Director of the Center, 
shall designate specific personnel in each Institute to serve as full-
time liaisons with the Center in facilitating appropriate coordination 
and scientific input.
    ``(g) Data System; Information Clearinghouse.--
            ``(1) Data system.--The Director of the Center shall 
        establish a bibliographic system for the collection, storage, 
        and retrieval of worldwide research relating to complementary 
        and alternative treatment, diagnostic and prevention 
        modalities, disciplines and systems. Such a system shall be 
        regularly updated and publicly accessible.
            ``(2) Clearinghouse.--The Director of the Center shall 
        establish an information clearinghouse to facilitate and 
        enhance, through the effective dissemination of information, 
        knowledge and understanding of alternative medical treatment, 
        diagnostic and prevention practices by health professionals, 
        patients, industry, and the public.
    ``(h) Research Centers.--
            ``(1) In general.--The Director of the Center, after 
        consultation with the advisory council for the Center, shall 
        provide support for the development and operation of 
        multipurpose centers to conduct research and other activities 
        described in subsection (a) with respect to complementary and 
        alternative treatment, diagnostic and prevention modalities, 
        disciplines and systems. The provision of support for the 
        development and operation of such centers shall include 
        accredited complementary and alternative medicine research and 
        education facilities.
            ``(2) Requirements.--Each center assisted under paragraph 
        (1) shall use the facilities of a single entity, or be formed 
        from a consortium of cooperating entities, and shall meet such 
        requirements as may be established by the Director of the 
        Center. Each such center shall--
                    ``(A) be established as an independent entity; or
                    ``(B) be established within or in affiliation with 
                an entity that conducts research or training described 
                in subsection (a).
            ``(3) Duration of support.--Support of a center under 
        paragraph (1) may be for a period not exceeding 5 years. Such 
        period may be extended for one or more additional periods not 
        exceeding 5 years if the operations of such center have been 
        reviewed by an appropriate technical and scientific peer review 
        group established by the Director of the Center and if such 
        group has recommended to the Director that such period should 
        be extended.
    ``(i) Biennial Report.--The Director of the Center shall prepare 
biennial reports on the activities carried out or to be carried out by 
the Center, and shall submit each such report to the Director of NIH 
for inclusion in the biennial report under section 403.
    ``(j) Availability of Resources.--After consultation with the 
Director of the Center, the Director of NIH shall ensure that resources 
of the National Institutes of Health, including laboratory and clinical 
facilities, fellowships (including research training fellowship and 
junior and senior clinical fellowships), and other resources are 
sufficiently available to enable the Center to appropriately and 
effectively carry out its duties as described in subsection (a). The 
Director of NIH, in coordination with the Director of the Center, shall 
designate specific personnel in each Institute to serve as full-time 
liaisons with the Center in facilitating appropriate coordination and 
scientific input.
    ``(k) Authorization of Appropriations.--For the purpose of carrying 
out this subpart, there are authorized to be appropriated such sums as 
may be necessary for each of the fiscal years 1999 through 2003. 
Amounts appropriated under this subsection for fiscal year 1999 are 
available for obligation through September 30, 2001. Amounts 
appropriated under this subsection for fiscal year 2000 are available 
for obligation through September 30, 2001.''.
    (b) Savings Provision.--All officers and employees employed in the 
Office of Alternative Medicine on the day before the date of the 
enactment of this Act (pursuant to section 404E of the Public Health 
Service Act, as in effect on such day) are transferred to the National 
Center for Complementary and Alternative Medicine. Such transfer does 
not affect the status of any such officer or employee (except to the 
extent that the amendments made by subsection (a) affect the authority 
to make appointments to employment positions). All funds available on 
such day for such Office are transferred to such Center, and the 
transfer does not affect the availability of funds for the purposes for 
which the funds were appropriated (except that such purposes shall 
apply with respect to the Center to the same extent and in the same 
manner as the purposes applied with respect to the Office). All other 
legal rights and duties with respect to the Office are transferred to 
the Center, and continue in effect in accordance with their terms.
    (c) Technical and Conforming Amendments.--Part A of title IV of the 
Public Health Service Act (42 U.S.C. 281 et seq.), as amended by 
subsection (a), is amended--
            (1) in section 401(b)(2), by amending subparagraph (E) to 
        read as follows:
            ``(E) The National Center for Complementary and Alternative 
        Medicine.''; and
            (2) in section 402, by redesignating subsections (g) 
        through (k) as subsections (f) through (j), respectively.
Output: Amends the Public Health Service Act to repeal provisions regarding the Office of Alternative Medicine. 
Establishes a National Center for Complementary and Alternative Medicine as a National Institutes of Health (NIH) agency, to be headed by a Director appointed by the Secretary of Health and Human Services. 
Requires the Director of the Center to study the integration of alternative treatment, diagnostic and prevention systems, modalities, and disciplines with the practice of conventional medicine as a complement to such medicine and into U.S. health care delivery systems. 
Sets forth additional responsibilities of the Director, including the establishment of an advisory council, a bibliographic system for the collection of worldwide research relating to complementary and alternative medicine, a related information clearinghouse, and multipurpose research centers. 
Requires the Director to submit biennial activity reports to the Director of NIH. 
Authorizes appropriations for the Center for FY 1999 through 2003. 
Transfers current employees and funds of the Office of Alternative Medicine to the Center.