673
retary that the plan or other arrangement meets the
requirements of clauses (i) and (ii).
‘‘(D) For purposes of subparagraph (A)(i)(II), a plan
or arrangement shall be treated as established or main-
tained in accordance with this subparagraph only if—
‘‘(i) all of the benefits provided under the plan
or arrangement consist of health insurance coverage;
or
‘‘(ii)(I) the plan or arrangement is a multiem-
ployer plan; and
‘‘(II) the requirements of clause (B) of the pro-
viso to clause (5) of section 302(c) of the Labor
Management Relations Act, 1947 (29 U.S.C.
186(c)) are met with respect to such plan or other
arrangement.
‘‘(E) For purposes of subparagraph (A)(i)(II), a plan
or arrangement shall be treated as established or main-
tained in accordance with this subparagraph only if—
‘‘(i) the plan or arrangement is in effect as of
the date of the enactment of the Expansion of Port-
ability and Health Insurance Coverage Act of 1997,
or
‘‘(ii) the employee organization or other entity
sponsoring the plan or arrangement—
674
‘‘(I) has been in existence for at least 3
years or is affiliated with another employee or-
ganization which has been in existence for at
least 3 years, or
‘‘(II) demonstrates to the satisfaction of
the Secretary that the requirements of subpara-
graphs (C) and (D) are met with respect to the
plan or other arrangement.’’.
(c) CONFORMING AMENDMENTS TO DEFINITIONS OF
PARTICIPANT AND BENEFICIARY.—Section 3(7) of such
Act (29 U.S.C. 1002(7)) is amended by adding at the end
the following new sentence: ‘‘Such term includes an indi-
vidual who is a covered individual described in paragraph
(40)(C)(ii).’’.
SEC. 5305. ENFORCEMENT PROVISIONS RELATING TO ASSO-
CIATION HEALTH PLANS.
(a) CRIMINAL PENALTIES FOR CERTAIN WILLFUL
MISREPRESENTATIONS.—Section 501 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1131)
is amended—
(1) by inserting ‘‘(a)’’ after ‘‘SEC. 501.’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) Any person who, either willfully or with willful
blindness, falsely represents, to any employee, any employ-
675
ee’s beneficiary, any employer, the Secretary, or any State,
a plan or other arrangement established or maintained for
the purpose of offering or providing any benefit described
in section 3(1) to employees or their beneficiaries as—
‘‘(1) being an association health plan which has
been certified under part 8;
‘‘(2) having been established or maintained
under or pursuant to one or more collective bargain-
ing agreements which are reached pursuant to col-
lective bargaining described in section 8(d) of the
National Labor Relations Act (29 U.S.C. 158(d)) or
paragraph Fourth of section 2 of the Railway Labor
Act (45 U.S.C. 152, paragraph Fourth) or which are
reached pursuant to labor-management negotiations
under similar provisions of State public employee re-
lations laws; or
‘‘(3) being a plan or arrangement with respect
to which the requirements of subparagraph (C), (D),
or (E) of section 3(40) are met;
shall, upon conviction, be imprisoned not more than five
years, be fined under title 18, United States Code, or
both.’’.
(b) CEASE ACTIVITIES ORDERS.—Section 502 of
such Act (29 U.S.C. 1132) is amended by adding at the
end the following new subsection:
676
‘‘(n)(1) Subject to paragraph (2), upon application
by the Secretary showing the operation, promotion, or
marketing of an association health plan (or similar ar-
rangement providing benefits consisting of medical care
(as defined in section 733(a)(2))) that—
‘‘(A) is not certified under part 8, is subject
under section 514(b)(6) to the insurance laws of any
State in which the plan or arrangement offers or
provides benefits, and is not licensed, registered, or
otherwise approved under the insurance laws of such
State; or
‘‘(B) is an association health plan certified
under part 8 and is not operating in accordance with
the requirements under part 8 for such certification,
a district court of the United States shall enter an order
requiring that the plan or arrangement cease activities.
‘‘(2) Paragraph (1) shall not apply in the case of an
association health plan or other arrangement if the plan
or arrangement shows that—
‘‘(A) all benefits under it referred to in para-
graph (1) consist of health insurance coverage; and
‘‘(B) with respect to each State in which the
plan or arrangement offers or provides benefits, the
plan or arrangement is operating in accordance with
677
applicable State laws that are not superseded under
section 514.
‘‘(3) The court may grant such additional equitable
relief, including any relief available under this title, as it
deems necessary to protect the interests of the public and
of persons having claims for benefits against the plan.’’.
(c) RESPONSIBILITY
FOR CLAIMS PROCEDURE.—
Section 503 of such Act (29 U.S.C. 1133) is amended by
adding at the end (after and below paragraph (2)) the fol-
lowing new sentence:
‘‘The terms of each association health plan which is or
has been certified under part 8 shall require the board
of trustees or the named fiduciary (as applicable) to en-
sure that the requirements of this section are met in con-
nection with claims filed under the plan.’’.
SEC. 5306. COOPERATION BETWEEN FEDERAL AND STATE
AUTHORITIES.
Section 506 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1136) is amended by adding
at the end the following new subsection:
‘‘(c) RESPONSIBILITY OF STATES WITH RESPECT TO
ASSOCIATION HEALTH PLANS.—
‘‘(1) AGREEMENTS
WITH
STATES.—A State
may enter into an agreement with the Secretary for
delegation to the State of some or all of the Sec-
678
retary’s authority under sections 502 and 504 to en-
force the requirements for certification under part 8.
The Secretary shall enter into the agreement if the
Secretary determines that the delegation provided
for therein would not result in a lower level or qual-
ity of enforcement of the provisions of this title.
‘‘(2) DELEGATIONS.—Any department, agency,
or instrumentality of a State to which authority is
delegated pursuant to an agreement entered into
under this paragraph may, if authorized under State
law and to the extent consistent with such agree-
ment, exercise the powers of the Secretary under
this title which relate to such authority.
‘‘(3) RECOGNITION
OF
PRIMARY
DOMICILE
STATE.—In entering into any agreement with a
State under subparagraph (A), the Secretary shall
ensure that, as a result of such agreement and all
other agreements entered into under subparagraph
(A), only one State will be recognized, with respect
to any particular association health plan, as the pri-
mary domicile State to which authority has been del-
egated pursuant to such agreements.’’.
SEC. 5307. EFFECTIVE DATE AND TRANSITIONAL RULES.
(a) EFFECTIVE DATE.—The amendments made by
sections 5302, 5305, and 5306 shall take effect on Janu-
679
ary 1, 1999. The amendments made by sections 5303 and
5304 shall take effect on the date of the enactment of
this Act. The Secretary of Labor shall issue all regulations
necessary to carry out the amendments made by this Act
before January 1, 1999.
(b) EXCEPTION.—Section 801(a)(2) of the Employee
Retirement Income Security Act of 1974 (added by section
5302) does not apply with respect to group health plans
(as defined in section 733(a)(1) of such Act) existing on
April 1, 1997, which do not provide health insurance cov-
erage (as defined in section 733(b)(1) of such Act) on such
date.
TITLE VI—COMMITTEE ON GOV-
ERNMENT 
REFORM 
AND
OVERSIGHT
Subtitle A—Postal Service
SEC. 6001. REPEAL OF AUTHORIZATION OF TRANSITIONAL
APPROPRIATIONS FOR THE UNITED STATES
POSTAL SERVICE.
(a) REPEAL.—
(1) IN
GENERAL.—Section 2004 of title 39,
United States Code, is repealed.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—
680
(A) The table of sections for chapter 20 of
such title is amended by repealing the item re-
lating to section 2004.
(B) Section 2003(e)(2) of such title is
amended by striking ‘‘sections 2401 and 2004’’
each place it appears and inserting ‘‘section
2401’’.
(b) CLARIFICATION THAT LIABILITIES FORMERLY
PAID PURSUANT TO SECTION 2004 REMAIN LIABILITIES
PAYABLE BY THE POSTAL SERVICE.—Section 2003 of
title 39, United States Code, is amended by adding at the
end the following:
‘‘(h) Liabilities of the former Post Office Department
to the Employees’ Compensation Fund (appropriations for
which were authorized by former section 2004, as in effect
before the effective date of this subsection) shall be liabil-
ities of the Postal Service payable out of the Fund.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—This section and the amend-
ments made by this section shall take effect on the
date of the enactment of this Act or October 1,
1997, whichever is later.
(2) PROVISIONS RELATING TO PAYMENTS FOR
FISCAL YEAR 1998.—
681
(A) AMOUNTS
NOT
YET
PAID.—No pay-
ment may be made to the Postal Service Fund,
on or after the date of the enactment of this
Act, pursuant to any appropriation for fiscal
year 1998 authorized by section 2004 of title
39, United States Code (as in effect before the
effective date of this section).
(B) AMOUNTS PAID.—If any payment to
the Postal Service Fund is or has been made
pursuant to an appropriation for fiscal year
1998 authorized by such section 2004, then, an
amount equal to the amount of such payment
shall be paid from such Fund into the Treasury
as miscellaneous receipts before October 1,
1998.
Subtitle B—Civil Service
SEC. 6101. CONTRIBUTIONS UNDER THE CIVIL SERVICE RE-
TIREMENT SYSTEM.
(a) INDIVIDUAL CONTRIBUTIONS.—
(1) IN GENERAL.—Subsection (c) of sec-
tion 8334 of title 5, United States Code, is
amended to read as follows:
‘‘(c) Each employee or Member credited with civilian
service after July 31, 1920, for which retirement deduc-
tions or deposits have not been made, may deposit with
682
interest an amount equal to the following percentages of
his basic pay received for that service:
‘‘Per-
centage
of basic
pay
Service period
Employee ...................................................
2.50 .....
August 1, 1920, to
June 30, 1926.
3.50 .....
July 1, 1926, to June
30, 1942.
5 ..........
July 1, 1942, to June
30, 1948.
6 ..........
July 1, 1948, to Octo-
ber 31, 1956.
6.50 .....
November 1, 1956, to
December 31, 1969.
7 ..........
January 1, 1970, to De-
cember 31, 1998.
7.25 .....
January 1, 1999, to De-
cember 31, 1999.
7.40 .....
January 1, 2000, to De-
cember 31, 2000.
7.50 .....
January 1, 2001, to De-
cember 31, 2002.
7 ..........
After December 31,
2002.
Member or employee for Congressional
employee service .....................................
2.50 .....
August 1, 1920, to
June 30, 1926.
3.50 .....
July 1, 1926, to June
30, 1942.
5 ..........
July 1, 1942, to June
30, 1948.
6 ..........
July 1, 1948, to Octo-
ber 31, 1956.
6.50 .....
November 1, 1956, to
December 31, 1969.
7.50 .....
January 1, 1970, to De-
cember 31, 1998.
7.75 .....
January 1, 1999, to De-
cember 31, 1999.
7.90 .....
January 1, 2000, to De-
cember 31, 2000.
8 ..........
January 1, 2001, to De-
cember 31, 2002.
7.50 .....
After December 31,
2002.
Member for Member service ......................
2.50 .....
August 1, 1920, to
June 30, 1926.
3.50 .....
July 1, 1926, to June
30, 1942.
683
‘‘Per-
centage
of basic
pay
Service period
5 ..........
July 1, 1942, to August
1, 1946.
6 ..........
August 2, 1946, to Oc-
tober 31, 1956.
7.50 .....
November 1, 1956, to
December 31, 1969.
8 ..........
January 1, 1970, to De-
cember 31, 1998.
8.25 .....
January 1, 1999, to De-
cember 31, 1999.
8.40 .....
January 1, 2000, to De-
cember 31, 2000.
8.50 .....
January 1, 2001, to De-
cember 31, 2002.
8 ..........
After December 31,
2002.
Law enforcement officer for law enforce-
ment service and firefighter for fire-
fighter service ........................................
2.50 .....
3.50 .....
August 1, 1920, to
June 30, 1926.
July 1, 1926, to June
30, 1942.
5 ..........
July 1, 1942, to June
30, 1948.
6 ..........
July 1, 1948, to Octo-
ber 31, 1956.
6.50 .....
November 1, 1956, to
December 31, 1969.
7 ..........
January 1, 1970, to De-
cember 31, 1974.
7.50 .....
January 1, 1975, to De-
cember 31, 1998.
7.75 .....
January 1, 1999, to De-
cember 31, 1999.
7.90 .....
January 1, 2000, to De-
cember 31, 2000.
8 ..........
January 1, 2001, to De-
cember 31, 2002.
7.50 .....
After December 31,
2002.
Bankruptcy judge ......................................
2.50 .....
August 1, 1920, to
June 30, 1926.
3.50 .....
July 3, 1926, to June
30, 1942.
5 ..........
July 1, 1942, to June
30, 1948.
6 ..........
July 1, 1948, to Octo-
ber 31, 1956.
6.50 .....
November 1, 1956, to
December 31, 1969.
684
‘‘Per-
centage
of basic
pay
Service period
7 ..........
January 1, 1970, to De-
cember 31, 1983.
8 ..........
January 1, 1984, to De-
cember 31, 1998.
8.25 .....
January 1, 1999, to De-
cember 31, 1999.
8.40 .....
January 1, 2000, to De-
cember 31, 2000.
8.50 .....
January 1, 2001, to De-
cember 31, 2002.
8 ..........
After December 31,
2002.
Judge of the United States Court of Ap-
peals for the Armed Forces for service
as a judge of that court .........................
6 ..........
6.50 .....
May 5, 1950, to Octo-
ber 31, 1956.
November 1, 1956, to
December 31, 1969.
7 ..........
January 1, 1970, to
(but not including)
the date of the enact-
ment of the Depart-
ment of Defense Au-
thorization Act, 1984.
8 ..........
The date of the enact-
ment of the Depart-
ment of Defense Au-
thorization Act, 1984,
to December 31,
1998.
8.25 .....
January 1, 1999, to De-
cember 31, 1999.
8.40 .....
January 1, 2000, to De-
cember 31, 2000.
8.50 .....
January 1, 2001, to De-
cember 31, 2002.
8 ..........
After December 31,
2002.
United States magistrate ..........................
2.50 .....
August 1, 1920, to
June 30, 1926.
3.50 .....
July 1, 1926, to June
30, 1942.
5 ..........
July 1, 1942, to June
30, 1948.
6 ..........
July 1, 1948, to Octo-
ber 31, 1956.
6.50 .....
November 1, 1956, to
December 31, 1969.
7 ..........
January 1, 1970, to
September 30, 1987.
685
‘‘Per-
centage
of basic
pay
Service period
8 ..........
October 1, 1987, to De-
cember 31, 1998.
8.25 .....
January 1, 1999, to De-
cember 31, 1999.
8.40 .....
January 1, 2000, to De-
cember 31, 2000.
8.50 .....
January 1, 2001, to De-
cember 31, 2002.
8 ..........
After December 31,
2002.
Claims Court Judge ...................................
2.50 .....
August 1, 1920, to
June 30, 1926.
3.50 .....
July 1, 1926, to June
30, 1942.
5 ..........
July 1, 1942, to June
30, 1948.
6 ..........
July 1, 1948, to Octo-
ber 31, 1956.
6.50 .....
November 1, 1956, to
December 31, 1969.
7 ..........
January 1, 1970, to
September 30, 1988.
8 ..........
October 1, 1988, to De-
cember 31, 1998.
8.25 .....
January 1, 1999, to De-
cember 31, 1999.
8.40 .....
January 1, 2000, to De-
cember 31, 2000.
8.50 .....
January 1, 2001, to De-
cember 31, 2002.
8 ..........
After December 31,
2002.
Notwithstanding the preceding provisions of this sub-
section and any provision of section 206(b)(3) of the Fed-
eral Employees’ Retirement Contribution Temporary Ad-
justment Act of 1983, the percentage of basic pay required
under this subsection in the case of an individual described
in section 8402(b)(2) shall, with respect to any covered
service (as defined by section 203(a)(3) of such Act) per-
formed by such individual after December 31, 1983, and
686
before January 1, 1987, be equal to 1.3 percent, and, with
respect to any such service performed after December 31,
1986, be equal to the amount that would have been de-
ducted from the employee’s basic pay under subsection (k)
of this section if the employee’s pay had been subject to
that subsection during such period.’’.
(2) DEDUCTIONS.—The first sentence of section
8334(a)(1) of title 5, United States Code, is amend-
ed to read as follows: ‘‘The employing agency shall
deduct and withhold from the basic pay of an em-
ployee, Member, Congressional employee, law en-
forcement officer, firefighter, bankruptcy judge,
judge of the United States Court of Appeals for the
Armed Forces, United States magistrate, or Claims
Court judge, as the case may be, the percentage of
basic pay applicable under subsection (c).’’.
(3) OTHER SERVICE.—
(A) MILITARY SERVICE.—Section 8334(j)
of title 5, United States Code, is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (5),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end the follow-
ing:
687
‘‘(5) Effective with respect to any period of military
service performed after December 31, 1998, and before
January 1, 2003, the percentage of basic pay under sec-
tion 204 of title 37 payable under paragraph (1) shall be
equal to the same percentage as would be applicable under
section 8334(c) for that same period for service as an ‘em-
ployee’, subject to paragraph (1)(B).’’.
(B) 
VOLUNTEER
SERVICE.—Section
8334(l) of title 5, United States Code, is
amended—
(i) in paragraph (1) by striking the
period at the end and inserting ‘‘, subject
to paragraph (4).’’; and
(ii) by adding at the end the follow-
ing:
‘‘(4) Effective with respect to any period of service
as a volunteer or volunteer leader performed after Decem-
ber 31, 1998, and before January 1, 2003, the percentage
of the readjustment allowance or stipend (as the case may
be) payable under paragraph (1) shall be equal to the
same percentage as would be applicable under section
8334(c) for that same period for service as an ‘em-
ployee’.’’.
(b) GOVERNMENT CONTRIBUTIONS.—
688
(1) IN
GENERAL.—Section 8334 of title 5,
United States Code, is amended by adding at the
end the following:
‘‘(m)(1) This subsection shall govern for purposes of
determining the amount to be contributed under the sec-
ond sentence of subsection (a)(1) with respect to any serv-
ice—
‘‘(A) which is performed after September 30,
1997, and before January 1, 2003; and
‘‘(B) as to which a contribution under such sen-
tence would otherwise be payable.
‘‘(2) The amount of the contribution required under
the second sentence of subsection (a)(1) with respect to
any service described in paragraph (1) shall (instead of
the amount which would otherwise apply under such sen-
tence) be equal to the amount of basic pay received for
such service by the employee or Member involved, multi-
plied by the percentage under paragraph (3).
‘‘(3)(A) The percentage under this paragraph is, with
respect to any service, equal to the sum of—
‘‘(i) the percentage which would have been ap-
plicable under subsection (c), with respect to such
service, if it had been performed in fiscal year 1997,
plus
689
‘‘(ii) the applicable percentage under subpara-
graph (B).
‘‘(B) The applicable percentage under this subpara-
graph is, with respect to service performed—
‘‘(i) after September 30, 1997, and before Octo-
ber 1, 2002, 1.51 percent; or
‘‘(ii) after September 30, 2002, and before Jan-
uary 1, 2003, 0 percent.
‘‘(4) An amount determined under this subsection
with respect to any period of service shall, for purposes
of subsection (k)(1)(B) (and any other provision of law
which similarly refers to contributions under the second
sentence of subsection (a)(1)), be treated as the amount
required under such sentence with respect to such service.
‘‘(5)(A) Notwithstanding paragraphs (1) through (4),
the amount to be contributed by the Postal Service by rea-
son of the second sentence of subsection (a)(1) with re-
spect to any service performed by an officer or employee
of the Postal Service during the period described in sub-
paragraph (A) of paragraph (1) shall be determined as
if section 6101 of the Balanced Budget Act of 1997 had
never been enacted.
‘‘(B) For purposes of this paragraph, the term ‘Post-
al Service’ means the United States Postal Service and
the Postal Rate Commission.’’.
690
(2) CONFORMING
AMENDMENT.—The second
sentence of section 8334(a)(1) of title 5, United
States Code, is amended by striking the period and
inserting ‘‘, subject to subsection (m).’’.
SEC. 6102. CONTRIBUTIONS UNDER THE FEDERAL EMPLOY-
EES’ RETIREMENT SYSTEM.
(a) INDIVIDUAL CONTRIBUTIONS.—
(1) IN
GENERAL.—Subsection (a) of section
8422 of title 5, United States Code, is amended—
(A) in paragraph (1) by striking ‘‘para-
graph (2).’’ and inserting ‘‘paragraph (2) or
(3), as applicable.’’;
(B) in paragraph (2) by striking ‘‘The ap-
plicable’’ and inserting ‘‘Subject to paragraph
(3), the applicable’’; and
(C) by adding at the end the following:
‘‘(3)(A) The applicable percentage under this sub-
section shall, for purposes of service performed after De-
cember 31, 1998, and before January 1, 2003, be equal
to—
‘‘(i) the applicable percentage under subpara-
graph (B), minus
‘‘(ii) the percentage then in effect under section
3101(a) of the Internal Revenue Code of 1986 (re-
691
lating to rate of tax for old-age, survivors, and dis-
ability insurance).
‘‘(B) The applicable percentage under this subpara-
graph shall be as follows:
‘‘Per-
centage
of basic
pay
Service period
Employee ...................................................
7.25 .....
January 1, 1999, to De-
cember 31, 1999.
7.40 .....
January 1, 2000, to De-
cember 31, 2000.
7.50 .....
January 1, 2001, to De-
cember 31, 2002.
Congressional employee .............................
7.75 .....
January 1, 1999, to De-
cember 31, 1999.
7.90 .....
January 1, 2000, to De-
cember 31, 2000.
8 ..........
January 1, 2001, to De-
cember 31, 2002.
Member ......................................................
7.75 .....
January 1, 1999, to De-
cember 31, 1999.
7.90 .....
January 1, 2000, to De-
cember 31, 2000.
8 ..........
January 1, 2001, to De-
cember 31, 2002.
Law enforcement officer ............................
7.75 .....
January 1, 1999, to De-
cember 31, 1999.
7.90 .....
January 1, 2000, to De-
cember 31, 2000.
8 ..........
January 1, 2001, to De-
cember 31, 2002.
Firefighter .................................................
7.75 .....
January 1, 1999, to De-
cember 31, 1999.
7.90 .....
January 1, 2000, to De-
cember 31, 2000.
8 ..........
January 1, 2001, to De-
cember 31, 2002.
Air traffic controller ..................................
7.75 .....
January 1, 1999, to De-
cember 31, 1999.
7.90 .....
January 1, 2000, to De-
cember 31, 2000.
8 ..........
January 1, 2001, to De-
cember 31, 2002.’’.
(2) OTHER SERVICE.—
692
(A) MILITARY SERVICE.—Section 8422(e)
of title 5, United States Code, is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (5),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end the follow-
ing:
‘‘(5) Effective with respect to any period of military
service performed after December 31, 1998, and before
January 1, 2003, the percentage of basic pay under sec-
tion 204 of title 37 payable under paragraph (1) shall be
equal to the sum of the percentage specified in paragraph
(1), plus—
‘‘(A) .25 percent, if performed after December
31, 1998, and before January 1, 2000;
‘‘(B) .40 percent, if performed after December
31, 1999, and before January 1, 2001;
‘‘(C) .50 percent, if performed after December
31, 2000, and before January 1, 2003.’’.
(B) 
VOLUNTEER
SERVICE.—Section
8422(f) of title 5, United States Code, is
amended—
693
(i) in paragraph (1) by striking the
period at the end and inserting ‘‘, subject
to paragraph (4).’’; and
(ii) by adding at the end the follow-
ing:
‘‘(4) Effective with respect to any period of service
as a volunteer or volunteer leader performed after Decem-
ber 31, 1998, and before January 1, 2003, the percentage
of the readjustment allowance or stipend (as the case may
be) payable under paragraph (1) shall be equal to the sum
of the percentage specified in paragraph (1), plus—
‘‘(A) .25 percent, if performed after December
31, 1998, and before January 1, 2000;
‘‘(B) .40 percent, if performed after December
31, 1999, and before January 1, 2001;
‘‘(C) .50 percent, if performed after December
31, 2000, and before January 1, 2003.’’.
(b) GOVERNMENT CONTRIBUTIONS.—
(1) IN
GENERAL.—Section 8423 of title 5,
United States Code, is amended by adding at the
end the following:
‘‘(d)(1) This subsection shall govern for purposes of
determining the amount to be contributed by an employing
agency for any period (or portion thereof)—
694
‘‘(A) which is occurs after September 30, 1997,
and before January 1, 2003; and
‘‘(B) as to which a contribution under sub-
section (a) would otherwise be payable by such agen-
cy.
‘‘(2) The amount of the contribution required under
subsection (a) with respect to any period (or portion there-
of) described in paragraph (1) shall (instead of the
amount which would otherwise apply) be equal to the
amount which would be required under subsection (a) if
section 6102(a) of the Balanced Budget Act of 1997 had
never been enacted.’’.
(2) 
CONFORMING
AMENDMENT.—Section
8423(a)(1) of title 5, United States Code, is amend-
ed by striking ‘‘Each’’ and inserting ‘‘Subject to
subsection (d), each’’.
SEC. 6103. GOVERNMENT CONTRIBUTION FOR HEALTH
BENEFITS.
(a) IN GENERAL.—Section 8906 of title 5, United
States Code, is amended by striking subsection (a) and
all that follows through the end of paragraph (1) of sub-
section (b) and inserting the following:
‘‘(a)(1) The Office of Personnel Management shall,
not later than October 1 of each year, determine the
weighted average of the subscription charges that will be
695
in effect during the following contract year with respect
to—
‘‘(A) enrollments under this chapter for self
alone; and
‘‘(B) enrollments under this chapter for self
and family.
‘‘(2) In determining each weighted average under
paragraph (1), the weight to be given to a particular sub-
scription charge shall, with respect to each plan (and op-
tion) to which it is to apply, be commensurate with the
number of enrollees enrolled in such plan (and option) as
of March 31 of the year in which the determination is
being made.
‘‘(3) For purposes of paragraph (2), the term ‘en-
rollee’ means any individual who, during the contract year
for which the weighted average is to be used under this
section, will be eligible for a Government contribution for
health benefits.
‘‘(b)(1) Except as provided in paragraphs (2) and
(3), the biweekly Government contribution for health bene-
fits for an employee or annuitant enrolled in a health bene-
fits plan under this chapter is adjusted to an amount equal
to 72 percent of the weighted average under subsection
(a)(1)(A) or (B), as applicable. For an employee, the ad-
justment begins on the first day of the employee’s first
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pay period of each year. For an annuitant, the adjustment
begins on the first day of the first period of each year
for which an annuity payment is made.’’.
(b) EFFECTIVE DATE.—This section and the amend-
ment made by this section shall take effect on the first
day of the contract year that begins in 1999, except that
nothing in this subsection shall prevent the Office of Per-
sonnel Management from taking any action, before such
first day, which it considers necessary in order to ensure
the timely implementation of such amendment.
SEC. 6104. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in section
6103, this subtitle shall take effect on—
(1) October 1, 1997; or
(2) if later, the date of the enactment of this
Act.
(b) SPECIAL RULE.—If the date of the enactment of
this Act is later than October 1, 1997, then, for purposes
of applying the amendments made by sections 6101 and
6102—
(1) any reference in any such amendment to
‘‘September 30, 1997’’ shall be treated as referring
to the day before the date of the enactment of this
Act; and
697
(2) any reference in any such amendment to
‘‘October 1, 1997’’ shall be treated as referring to
the date of the enactment of this Act.
TITLE 
VII—COMMITTEE 
ON
TRANSPORTATION 
AND 
IN-
FRASTRUCTURE
SEC. 7001. EXTENSION OF HIGHER VESSEL TONNAGE DU-
TIES.
(a) EXTENSION OF DUTIES.—Section 36 of the Act
of August 5, 1909 (36 Stat. 111; 46 U.S.C. App. 121),
is amended by striking ‘‘for fiscal years 1991, 1992, 1993,
1994, 1995, 1996, 1997, 1998,’’ each place it appears and
inserting ‘‘for fiscal years through fiscal year 2002,’’.
(b) CONFORMING AMENDMENT.—The Act entitled
‘‘An Act concerning tonnage duties on vessels entering
otherwise than by sea’’, approved March 8, 1910 (36 Stat.
234; 46 U.S.C. App. 132), is amended by striking ‘‘for
fiscal years 1991, 1992, 1993, 1994, 1995, 1996, 1997,
and 1998,’’ and inserting ‘‘for fiscal years through fiscal
year 2002,’’.
SEC. 7002. SALE OF GOVERNORS ISLAND, NEW YORK.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, no earlier than fiscal year 2002, the Adminis-
trator of General Services shall dispose of by sale at fair
market value all rights, title, and interests of the United
698
States in and to the land of, and improvements to, Gov-
ernors Island, New York.
(b) RIGHT OF FIRST REFUSAL.—Before a sale is
made under subsection (a) to any other parties, the State
of New York and the city of New York shall be given the
right of first refusal to purchase all or part of Governors
Island. Such right may be exercised by either the State
of New York or the city of New York or by both parties
acting jointly.
(c) PROCEEDS.—Proceeds from the disposal of Gov-
ernors Island under subsection (a) shall be deposited in
the general fund of the Treasury and credited as mis-
cellaneous receipts.
SEC. 7003. SALE OF AIR RIGHTS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Administrator of General Services shall
sell, at fair market value and in a manner to be deter-
mined by the Administrator, the air rights adjacent to
Washington Union Station described in subsection (b), in-
cluding air rights conveyed to the Administrator under
subsection (d). The Administrator shall complete the sale
by such date as is necessary to ensure that the proceeds
from the sale will be deposited in accordance with sub-
section (c).
699
(b) DESCRIPTION.—The air rights referred to in sub-
section (a) total approximately 16.5 acres and are depicted
on the plat map of the District of Columbia as follows:
(1) Part of lot 172, square 720.
(2) Part of lots 172 and 823, square 720.
(3) Part of lot 811, square 717.
(c) PROCEEDS.—Before September 30, 2002, pro-
ceeds from the sale of air rights under subsection (a) shall
be deposited in the general fund of the Treasury and cred-
ited as miscellaneous receipts.
(d) CONVEYANCE OF AMTRAK AIR RIGHTS.—
(1) GENERAL RULE.—As a condition of future
Federal financial assistance, Amtrak shall convey to
the Administrator of General Services on or before
December 31, 1997, at no charge, all of the air
rights of Amtrak described in subsection (b).
(2) FAILURE TO COMPLY.—If Amtrak does not
meet the condition established by paragraph (1),
Amtrak shall be prohibited from obligating Federal
funds after March 1, 1998.
TITLE VIII—COMMITTEE ON
VETERANS’ AFFAIRS
SEC. 8001. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This title may be cited as the
‘‘Veterans Reconciliation Act of 1997’’.
700
(b) TABLE OF CONTENTS.—The table of contents for
this title is as follows:
Sec. 8001. Short title; table of contents.
Subtitle A—Extension of Temporary Authorities
Sec. 8011. Authority to require that certain veterans make copayments in ex-
change for receiving health-care benefits.
Sec. 8012. Medical care cost recovery for non-service-connected disabilities of
service-connected veterans.
Sec. 8013. Department of Veterans Affairs medical-care receipts.
Sec. 8014. Income verification authority.
Sec. 8015. Limitation on pension for certain recipients of medicaid-covered
nursing home care.
Sec. 8016. Home loan fees.
Sec. 8017. Procedures applicable to liquidation sales on defaulted home loans
guaranteed by the Secretary of Veterans Affairs.
Sec. 8018. Enhanced loan asset sale authority.
Subtitle B—Other Matters
Sec. 8021. Rounding down of cost-of-living adjustments in compensation and
DIC rates.
Sec. 8022. Withholding of payments and benefits.
Subtitle A—Extension of
Temporary Authorities
SEC. 8011. AUTHORITY TO REQUIRE THAT CERTAIN VETER-
ANS MAKE COPAYMENTS IN EXCHANGE FOR
RECEIVING HEALTH-CARE BENEFITS.
(a) HOSPITAL AND MEDICAL CARE.—
(1) EXTENSION.—Section 1710(f)(2)(B) of title
38, United States Code, is amended by inserting
‘‘before September 30, 2002,’’ after ‘‘(B)’’.
(2) REPEAL OF SUPERSEDED PROVISION.—Sec-
tion 8013(e) of the Omnibus Budget Reconciliation
Act of 1990 (38 U.S.C. 1710 note) is repealed.
701
(b) OUTPATIENT MEDICATIONS.—Section 1722A(c)
of title 38, United States Code, is amended by striking
out ‘‘September 30, 1998’’ and inserting in lieu thereof
‘‘September 30, 2002’’.
SEC. 8012. MEDICAL CARE COST RECOVERY FOR NON-SERV-
ICE-CONNECTED DISABILITIES OF SERVICE-
CONNECTED VETERANS.
Section 1729(a)(2)(E) of title 38, United States
Code, is amended by striking out ‘‘before October 1,
1998,’’ and inserting ‘‘before October 1, 2002,’’.
SEC. 8013. DEPARTMENT OF VETERANS AFFAIRS MEDICAL-
CARE RECEIPTS.
(a) ALLOCATION OF RECEIPTS.—(1) Chapter 17 of
title 38, United States Code, is amended by inserting after
section 1729 the following new section:
‘‘§ 1729A. Department of Veterans Affairs Medical
Care Collections Fund
‘‘(a) There is in the Treasury a fund to be known
as the Department of Veterans Affairs Medical Care Col-
lections Fund.
‘‘(b) Amounts recovered or collected after September
30, 1997, under any of the following provisions of law
shall be deposited in the fund:
‘‘(1) Section 1710(f) of this title.
‘‘(2) Section 1710(g) of this title.
702
‘‘(3) Section 1711 of this title.
‘‘(4) Section 1722A of this title.
‘‘(5) Section 1729 of this title.
‘‘(6) Public Law 87–693, popularly known as
the ‘Federal Medical Care Recovery Act’ (42 U.S.C.
2651 et seq.), to the extent that a recovery or collec-
tion under that law is based on medical care or serv-
ices furnished under this chapter.
‘‘(c)(1) Subject to the provisions of appropriations
Acts, amounts in the fund shall be available, without fiscal
year limitation, to the Secretary for the following pur-
poses:
‘‘(A) Furnishing medical care and services
under this chapter, to be available during any fiscal
year for the same purposes and subject to the same
limitations (other than with respect to the period of
availability for obligation) as apply to amounts ap-
propriated from the general fund of the Treasury for
that fiscal year for medical care.
‘‘(B) Expenses of the Department for the iden-
tification, billing, auditing, and collection of amounts
owed the United States by reason of medical care
and services furnished under this chapter.
703
‘‘(2) Amounts available under paragraph (1) may not
be used for any purpose other than a purpose set forth
in subparagraph (A) or (B) of that paragraph.
‘‘(2)(A) If for fiscal year 1998, 1999, or 2000 the
Secretary determines that the total amount to be recov-
ered for that fiscal year under the provisions of law speci-
fied in subsection (b) will be less than the amount con-
tained in the latest Congressional Budget Office baseline
estimate (computed under section 257 of the Balanced
Budget and Emergency Deficit Control Act of 1985) for
the amount of such recoveries for that fiscal year by at
least $25,000,000, the Secretary shall promptly certify to
the Secretary of the Treasury the amount of the shortfall
(as estimated by the Secretary) that is in excess of
$25,000,000. Upon receipt of such a certification, the Sec-
retary of the Treasury shall, not later than 30 days after
receiving the certification, deposit in the fund, from any
unobligated amounts in the Treasury, an amount equal
to the amount certified by the Secretary.
‘‘(B) For a fiscal year for which a deposit is made
under subparagraph (A), if the Secretary subsequently de-
termines that the actual amount recovered for that fiscal
year under the provisions of law specified in subsection
(b) is greater than the amount estimated by the Secretary
that was used for purposes of the certification by the Sec-