693
‘‘(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.’’.
694
(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-
695
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.—
696
(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—
697
(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)—
698
‘‘(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
699
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
700
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
701
(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
702
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).
703
(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’’.
704
(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.
706
[HVAC Reconciliation]
‘‘(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) Amounts in the fund are available to the Sec-
retary for the following purposes:
‘‘(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 as apply to amounts appropriated 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.
‘‘(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
707
[HVAC Reconciliation]
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-
retary under subparagraph (A), the Secretary shall pay
into the general fund of the Treasury, from amounts avail-
able for medical care, an amount equal to the difference
between the amount actually recovered and the amount
so estimated (but not in excess of the amount of the de-
posit under subparagraph (A) pursuant to such certifi-
cation).
‘‘(C) For a fiscal year for which a deposit is made
under subparagraph (A), if the Secretary subsequently de-
708
[HVAC Reconciliation]
termines that the actual amount recovered for that fiscal
year under the provisions of law specified in subsection
(b) is less than the amount estimated by the Secretary
that was used for purposes of the certification by the Sec-
retary under subparagraph (A), the Secretary shall
promptly certify to the Secretary of the Treasury the
amount of the shortfall. Upon receipt of such a certifi-
cation, the Secretary 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.
‘‘(d)(1) The Secretary may allocate amounts available
to the Secretary under subsection (c) among components
of the Department in such manner as the Secretary con-
siders appropriate.
‘‘(2) The Secretary shall establish a policy for the al-
location under paragraph (1) of amounts in the fund.
Such policy shall be designed so as to facilitate the realiza-
tion of the maximum feasible collections under the provi-
sions of law specified in subsection (b). In developing the
policy, the Secretary shall take into account any factors
beyond the control of the Secretary that the Secretary con-
siders may impede such collections.
‘‘(e)(1) The Secretary shall submit to the Committees
on Veterans’ Affairs of the Senate and House of Rep-
709
[HVAC Reconciliation]
resentatives quarterly reports on the operation of this sec-
tion for fiscal years 1998, 1999, and 2000 and for the
first quarter of fiscal year 2001. Each such report shall
specify the amount collected under each of the provisions
specified in subsection (b) during the preceding quarter
and the amount originally estimated to be collected under
each such provision during such quarter.
‘‘(2) A report under paragraph (1) for a quarter shall
be submitted not later than 45 days after the end of that
quarter.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1729 the following new item:
‘‘1729A. Department of Veterans Affairs Medical Care Collections Fund.’’.
(b) CONFORMING AMENDMENTS.—Chapter 17 of
such title is amended as follows:
(1) Section 1710(f) is amended by striking out
paragraph (4) and redesignating paragraph (5) as
paragraph (4).
(2) Section 1710(g) is amended by striking out
paragraph (4).
(3) Section 1722A(b) is amended by striking
out ‘‘Department of Veterans Affairs Medical-Care
Cost Recovery Fund’’ and inserting in lieu thereof
‘‘Department of Veterans Affairs Medical Care Col-
lections Fund’’.
710
[HVAC Reconciliation]
(4) Section 1729 is amended by striking out
subsection (g).
(c) TERMINATION OF MEDICAL-CARE COST RECOV-
ERY FUND.—The amount of the unobligated balance re-
maining in the Department of Veterans Affairs Medical-
Care Cost Recovery Fund (established pursuant to section
1729(g)(1) of title 38, United States Code), at the close
of September 30, 1997, shall be deposited, not later than
December 31, 1997, in the Treasury as miscellaneous re-
ceipts, and that fund shall be terminated when the deposit
occurs.
(d) DETERMINATION OF AMOUNTS SUBJECT TO RE-
COVERY.—Section 1729 of title 38, United States Code,
is amended—
(1) in subsection (a)(1), by striking out ‘‘the
reasonable cost of’’ and inserting in lieu thereof
‘‘reasonable charges for’’;
(2) in subsection (c)(2)—
(A) by striking out ‘‘the reasonable cost
of’’ in the first sentence of subparagraph (A)
and in subparagraph (B) and inserting in lieu
thereof ‘‘reasonable charges for’’; and
(B) by striking out ‘‘cost’’ in the second
sentence of subparagraph (A) and inserting in
lieu thereof ‘‘charges’’.
711
[HVAC Reconciliation]
(e) TECHNICAL AMENDMENT.—Paragraph (2) of sec-
tion 712(b) of title 38, United States Code, is amended—
(1) by striking out subparagraph (B); and
(2) by redesignating subparagraph (C) as sub-
paragraph (B).
(f) IMPLEMENTATION.—(1) Not later than January
1, 1999, the Secretary of Veterans Affairs shall submit
to the Committees on Veterans’ Affairs of the Senate and
House of Representatives a report on the implementation
of this section. The report shall describe the collections
under each of the provisions specified in section 1729A(b)
of title 38, United States Code, as added by subsection
(a). Information on such collections shall be shown for
each of the health service networks (known as Veterans
Integrated Service Networks) and, to the extent prac-
ticable for each facility within each such network. The
Secretary shall include in the report an analysis of dif-
ferences among the networks with respect to (A) the mar-
ket in which the networks operates, (B) the effort ex-
pended to achieve collections, (C) the efficiency of such
effort, and (D) any other relevant information.
(2) The Secretary shall adjust the allocation policy
established under section 1729A(d)(2) of title 38, United
States Code, as added by subsection (a), to take account
of differences in collections that the Secretary determines
712
[HVAC Reconciliation]
are attributable to the different markets in which net-
works operate and shall include in the report under para-
graph (1) a description of such adjustments.
(g) EFFECTIVE DATE.—(1) Except as provided in
paragraph (2), this section and the amendments made by
this section shall take effect on October 1, 1997.
(2) The amendments made by subsection (d) shall
take effect on the date of the enactment of this Act.
SEC. 8014. INCOME VERIFICATION AUTHORITY.
(a) EXTENSION.—Section 5317(g) of title 38, United
States Code, is amended by striking out ‘‘September 30,
1998’’ and inserting in lieu thereof ‘‘September 30,
2002’’.
(b) SOCIAL SECURITY AND TAX RETURN INFORMA-
TION.—Section 6103(l)(7) of the Internal Revenue Code
of 1986 is amended by striking out ‘‘Clause (viii) shall
not apply after September 30, 1998’’ and inserting in lieu
thereof ‘‘Clause (viii) shall not apply after September 30,
2002’’.
SEC. 8015. LIMITATION ON PENSION FOR CERTAIN RECIPI-
ENTS 
OF 
MEDICAID-COVERED 
NURSING
HOME CARE.
Section 5503(f)(7) of title 38, United States Code,
is amended by striking out ‘‘September 30, 1998’’ and in-
serting in lieu thereof ‘‘September 30, 2002’’.