Ill STAT. 336 PUBLIC LAW 105-33—AUG. 5, 1997 as amended by section 4001, shall have the same meaning as when used in such part. SEC. 4012. ADVISORY COMMITTEES. (a) COMPETITIVE PRICING ADVISORY COMMITTEE. — (1) IN GENERAL.—Before implementing the project under this subchapter, the Secretary shall appoint the Competitive Pricing Advisory Committee, including independent actuaries, individuals with expertise in competitive health plan pricing, and an employee of the Office of Personnel Management with expertise in the administration of the Federal Employees Health Benefit Program, to make recommendations to the Secretary concerning the designation of areas for inclusion in the project and appropriate research design for implementing the project. (2) INITIAL RECOMMENDATIONS. — The Competitive Pricing Advisory Committee initially shall submit recommendations regarding the area selection, benefit design among plans offered, structuring choice among health plans offered, methods for setting the price to be paid to plans, collection of plan information (including information concerning quality and access to care), information dissemination, and methods of evaluating the results of the project. (3) QUALITY RECOMMENDATION.— The Competitive Pricing Advisory Committee shall study and make recommendations regarding the feasibility of providing financial incentives and penalties to plans operating under the project that meet, or fail to meet, applicable quality standards. (4) ADVICE DURING IMPLEMENTATION. — Upon implementation of the project, the Competitive Pricing Advisory Committee shall continue to advise the Secretary on the application of the design in different areas and changes in the project based on experience with its operations. (5) SUNSET. —The Competitive Pricing Advisory Committee shall terminate on December 31, 2004. (b) APPOINTMENT OF AREA ADVISORY COMMITTEE.— Upon the designation of an area for inclusion in the project, the Secretary shall appoint an area advisory committee, composed of representatives of health plans, providers, and medicare beneficiaries in the area, to advise the Secretary concerning how the project will be implemented in the area. Such advice may include advice concerning the marketing and pricing of plans in the area and other salient factors. The duration of such a committee for an area shall be for the duration of the operation of the project in the area. (c) SPECIAL APPLICATION.—Notwithstanding section 9(c) of the Federal Advisory Committee Act (5 U.S.C. App.), the Competitive Pricing Advisory Commission and any area advisory committee (described in subsection (b)) may meet as soon as the members of the commission or committee, respectively, are appointed. Subchapter B—Social Health Maintenance Organizations SEC. 4014. SOCIAL HEALTH MAINTENANCE ORGANIZATIONS (SHMOS). (a) EXTENSION OF DEMONSTRATION PROJECT AUTHORITIES.— 101 Stat. Section 4018(b) of the Omnibus Budget Reconciliation Act of 1987 1330-65. is amended—
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