ment’s proposed participation in such State reform
plan.
(e) EXEMPTION
OF
HIGH-PRIORITY
VETERANS
FROM PREMIUMS, ETC.—A veteran described in section
1710(a)(1) of title 38, United States Code, who receives
health care services from the Secretary under a pilot pro-
gram under this title incurs no liability to pay a premium,
deductible, copayment, or other charge in connection with
(1) receiving the hospital care services the veteran is eligi-
ble for under section 1710(a)(1) of such title, and (2)
medical services to persons described in section 1710(a)(1)
of such title, subject to the limitations in section 1710(e)
of such title.
(f) RETENTION OF SPECIALIZED CAPACITIES.—In
carrying out the pilot programs, the Secretary shall ensure
that the Department maintains its capacity to provide for
the specialized treatment and rehabilitative needs of dis-
abled veterans described in section 1710(a) of title 38,
United States Code, including veterans with spinal cord
dysfunction, blindness, and mental illness.
(g) REQUIREMENT FOR CONSIDERATION OF USE OF
EXPANDED SHARING AUTHORITY.—The Secretary may
not make a determination under subsection (a)(1) unless
the Secretary has fully considered the feasibility of using
authority under title II III of this Act.
SEC. 204. FUNDING.
(a) ESTABLISHMENT OF REVOLVING FUND.—There
is established in the Treasury of the United States a re-
volving fund for conduct of the pilot programs under this
title. Amounts Subject to subsection (e), amounts in the re-
volving fund are available without fiscal year limitation for
all expenses necessary to carry out the purposes of the
pilot program.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the revolving fund such
sums as may be necessary for each of fiscal years 1995
through 2000 for conduct and evaluation of the pilot
programs.
(c) 
AUTHORIZATION
TO
TRANSFER
CERTAIN
FUNDS.—(1) In addition to funds appropriated pursuant
to subsection (a), the Secretary may transfer to the revolv-
ing fund authorized by subsection (a) funds from the Med-
ical Care Appropriation Account and the Construction Ap-
propriation Accounts of the Department for any fiscal
year when the Secretary determines such transfer is nec-
essary to carry out the purposes of the pilot program.
(2) The authority in paragraph (1) shall apply only
with respect to amounts appropriated after the date of the
enactment of this Act.
(d) AUTHORIZED DISBURSEMENTS.—(1) Notwith-
standing any other provision of law, the Secretary, subject
to paragraph (2) and to subsection (e), may make disburse-
ments from the revolving fund established under sub-
section (a) as the Secretary considers necessary to carry
out the purposes of the pilot programs and their evalua-
tion. Such disbursements may be made to furnish medical
care and services, or for the acquisition, construction, re-
pair, or renovation of facilities (including the land on
which facilities are located or to be constructed) necessary
to carry out the pilot program, and for conducting
consumer surveys, printing, marketing, and advertising
(including contracts for such services).
(2) Funds in the revolving fund shall not be available
for a major medical facility project, or a major medical
facility lease, as defined in section 8104(a)(3) of title 38,
United States Code, unless funds for such project or lease
have been specifically authorized by law.
(e) RECEIPT OF FUNDS.—(1) Notwithstanding any
other provision of law, the Secretary may recover or collect
funds by reason of the furnishing of health care under a
pilot program authorized under section 202 in the same
manner as any other health-care provider or plan operat-
ing in the State, whether such funds are received from
an individual, another agency or department of the United
States, an agency of State or local government, a health-
care provider, health care plan, insurer, or other entity
(including amounts received as premiums, copayments,
deductibles, or third-party reimbursements). Any such
funds so received shall be deposited to the revolving fund.
(2) Any such funds so received and deposited, the re-
covery or collection of which is authorized in section
1729(a) of title 38, United States Code, as in effect on
February 1, 1994, shall be administered in accordance
with paragraph (3).
(3) Funds recovered or collected by the Department
pursuant to section 1729(a) of title 38, United States
Code, during any fiscal year in an amount in excess of
the current Congressional Budget Office baseline for re-
ceipts under that section for that fiscal year shall not be
subject to section 1729(g)(2) of such title, to the extent
those funds are attributable to the operation of a pilot pro-
gram under this title.
(2) Any such funds received under paragraph (1),
other than funds for which recovery could have been accom-
plished under section 1710(f), 1712(f), 1722A, or 1729(a)
of title 38, United States Code, shall be deposited in the
revolving fund. Funds for which recovery could have been
accomplished under any of those sections shall be deposited
in the Medical-Care Cost Recovery Fund established under
section 1729(g) of that title.
(3) Funds deposited in the Medical-Care Cost Recovery
Fund during any fiscal year in an amount in excess of
the Congressional Budget Office baseline (as of the date of
the enactment of this Act) for deposits in that fund for that
fiscal year shall not be subject to paragraph (4) of section
1710(f), 1712(f), or 1729(g) (as the case may be) of that
title, but shall be transferred to the revolving fund. Such
transfer for any fiscal year shall be made at any time that
the total of amounts so received less amounts estimated to
cover the expenses, payments, and costs described in para-
graph (3) of section 1729(g) of that title is in excess of the
applicable Congressional Budget Office baseline.
(f) CHECKING ACCOUNTS.—The Secretary may es-
tablish and maintain checking and savings accounts in any
Federal Reserve Bank, any depository for public funds,
depository for public funds or in such other places and in
such manner as the Secretary determines appropriate in
connection with the revolving fund established under sub-
section (a). The Subject to subsection (e), the Secretary
may disburse funds from any such account in such manner
as the Secretary considers necessary to carry out the pur-
poses of the pilot programs associated with those funds.
(g) TRANSFER OF EXCESS FUNDS TO TREASURY.—
If the Secretary determines that moneys in the revolving
fund established under subsection (a) are in excess of the
needs of the pilot program, the Secretary shall transfer
the excess funds to the Medical Care Appropriation
account of the Department.
SEC. 205. ADMINISTRATIVE FLEXIBILITY.
The Secretary, when the Secretary considers it nec-
essary to carry out a pilot program authorized under
section 202, may—
(1) carry out administrative reorganizations,
subject to section 203(f) of this title, without regard
to section 510(b) of title 38, United States Code;
(2) when the Secretary finds it is cost-effective
or necessary in order to provide health care services
in a timely manner, enter into contracts—
(A) for procurement of any commercially
available item at a cost of under $100,000
without regard to any provision of law or regu-
lation (i) requiring competitive procedures; (ii)
mandating or giving priority to any source of
supply; or (iii) pertaining to protests; and
(B) without regard to the provisions of sec-
tion 8110(c) of title 38, United States Code;
(3) carry out consumer-survey, promotional, ad-
vertising, and marketing activities related to estab-
lishing and operating a health plan; and