PEER REVIEW.

SEC. 104. PEER REVIEW. Section 507 of the Public Health Service Act (42 U.S.C. 290aa-5) is amended— (1) by redesignating such section as section 504; and (2) to read as follows: “peer review “Sec. 504. (a) In General.—The Secretary, after consultation with the Directors of the Center for Substance Abuse Treatment, the Center for Substance Abuse Prevention, and the Center for Mental Health Services, shall by regulation require appropriate peer review of grants, cooperative agreements, and contracts to be administered through such Centers. “(b) Members.—The members of any peer review group established under regulations under subsection (a) shall be individuals who by virtue of their training or experience are eminently qualified to perform the review functions of the group. Not more than one-106 STAT. 334fourth of the members of any peer review group established under such regulation shall be officers or employees of the United States. “(c) Requirements.—Regulations promulgated pursuant to subsection (a)— “(1) shall require that the reviewing entity be provided a written description of the matter to be reviewed; “(2) shall require that the reviewing entity provide the advisory council of the Center involved with such description and the results of the review by the entity; and “(3) may specify the conditions under which limited exceptions may be granted to the limitations contained in the last sentence of subsection (b) and subsection (d). “(d) Recommendations.— “(1) In general.—If the direct cost of a grant, cooperative agreement, or contract (described in subsection (a)) to be made does not exceed $50,000, the Secretary may make such grant, cooperative agreement, or contract only if such grant, cooperative agreement, or contract is recommended after peer review required by regulations under subsection (a). “(2) By appropriate advisory council.—If the direct cost of a grant, cooperative agreement, or contract (described in subsection (a)) to be made exceeds $50,000, the Secretary may make such grant, cooperative agreement, or contract only if such grant, cooperative agreement, or contract is recommended— “(A) after peer review required by regulations under sub-section (a), and “(B) by the appropriate advisory council.”.