‘‘(2) whose discharge or release from active
military, naval, or air service was for a compensable
disability that was incurred or aggravated in the line
of duty;
‘‘(3) who is in receipt of, or who, but for a sus-
pension pursuant to section 1151 of this title (or
both a suspension and the receipt of retired pay),
would be entitled to disability compensation, but
only to the extent that such veteran’s continuing eli-
gibility for such care is provided for in the judgment
or settlement provided for in such section;
‘‘(4) who is a former prisoner of war;
‘‘(5) of the Mexican border period or of World
War I; or
‘‘(6) who is unable to defray the expenses of
necessary care, as determined in accordance with
section 1722(a) of this title.
‘‘(f) Not later than February 1, 1999, the Secretary
shall submit to the Committees on Veterans’ Affairs of
the Senate and the House of Representatives a report on
the experience of the Department in establishing and ad-
ministering the program required by this section. The re-
port shall include any recommendations of the Secretary
for legislation to expand access of eligible veterans to
health care services furnished by the Department.
‘‘(g) This section shall expire at the close of Septem-
ber 30, 1999.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 1704 the following new
item:
‘‘1705. Delivery of health care through reformed managment of care.’’.
(c) DEADLINE
FOR IMPLEMENTATION.—The Sec-
retary shall implement the program under section 1705
of title 38, United States Code, as added by subsection
(a), not later than October 1, 1996.
SEC. 3. FUNDS RECOVERED FROM THIRD PARTIES.
(a) AUTHORIZED USES.—Section 1729 of title 38,
United States Code, is amended by adding at the end of
paragraph (3) of subsection (g) the following new subpara-
graph:
‘‘(C) Expenses of (i) establishing new out-
patient clinics, (ii) altering or remodeling medical fa-
cilities to provide additional space for provision of
outpatient care, and (iii) other measures as deter-
mined necessary by the Secretary to increase the
number of outpatient visits provided eligible veterans
through facilities of the Department or under con-
tract arrangements.’’.
(b) AVAILABILITY
OF FUNDS.—Subsection (g) of
such section is further amended by striking out paragraph
(4) and inserting the following:
‘‘(4)(A) There shall be within the Fund a reserve to
be available for the purposes specified in paragraph
(3)(C). Not later than December 1 of each year, there
shall be set aside for the reserve amounts as provided in
this paragraph. If the amount to be set aside for the re-
serve for any year is less than zero, the amount added
to the reserve for that year shall be zero. Funds may be
obligated under paragraph (3)(C) only to the extent of the
availability of unobligated amounts in the reserve.
Amounts in the reserve shall remain available for obliga-
tion until expended.
‘‘(B) On December 1, 1995, the amount set aside for
the reserve under subparagraph (A) shall be the amount
by which—
‘‘(i) the unobligated balance remaining in the
Fund at the close of business on September 30,
1995, minus any part of such balance that the Sec-
retary determines is necessary to defray the ex-
penses, payments, and costs described in paragraph
(3), exceeds
‘‘(ii) $579,282,000.
‘‘(C) On December 1, 1996, the amount set aside for
the reserve under subparagraph (A) shall be the amount
by which—
‘‘(i) the unobligated balance remaining in the
Fund at the close of business on September 30,
1996, minus any part of such balance that the Sec-
retary determines is necessary to defray the ex-
penses, payments, and costs described in paragraph
(3), exceeds
‘‘(ii) $640,918,000.
‘‘(D) On December 1, 1997, the amount set aside for
the reserve under subparagraph (A) shall be the amount
by which—
‘‘(i) the unobligated balance remaining in the
Fund at the close of business on September 30,
1997, minus any part of such balance that the Sec-
retary determines is necessary to defray the ex-
penses, payments, and costs described in paragraph
(3), exceeds
‘‘(ii) $731,334,000.
‘‘(E) On December 1, 1998, the amount set aside for
the reserve under subparagraph (A) shall be the amount
by which—
‘‘(i) the unobligated balance remaining in the
Fund at the close of business on September 30,
1998, minus any part of such balance that the Sec-
retary determines is necessary to defray the ex-
penses, payments, and costs described in paragraph
(3), exceeds
‘‘(ii) $758,321,000.
‘‘(F) On December 1, 1999, the amount set aside for
the reserve under subparagraph (A) shall be the amount
by which—
‘‘(i) the unobligated balance remaining in the
Fund at the close of business on September 30,
1999, minus any part of such balance that the Sec-
retary determines is necessary to defray the ex-
penses, payments, and costs described in paragraph
(3), exceeds
‘‘(ii) $372,435,000.
‘‘(5) Not later than January 1 of each year, there
shall be deposited into the Treasury as miscellaneous re-
ceipts an amount equal to the amount of the unobligated
balance remaining in the Fund at the close of business
on September 30 of the preceding year minus (A) any part
of such balance that the Secretary determines is necessary
in order to enable the Secretary to defray, during the fiscal
year in which the deposit is made, the expenses, payments,
and costs described in paragraph (3), and (B) the amount
in the reserve described in paragraph (4).