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actment of the Balanced Budget Act of 1997, except
that such allowances shall not exceed—
‘‘(A) $170,000,000 for each of the fiscal
years 1998 and 1999; or
‘‘(B) $150,000,000 for each of the fiscal
years 2000, 2001, and 2002.’’.
SEC. 7004. EXTENSION OF STUDENT AID PROGRAMS.
Title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.) is amended—
(1) in section 424(a), by striking ‘‘1998.’’ and
‘‘2002.’’ and inserting ‘‘2002.’’ and ‘‘2006.’’, respec-
tively;
(2) in section 428(a)(5), by striking ‘‘1998,’’ and
‘‘2002.’’ and inserting ‘‘2002,’’ and ‘‘2006.’’, respec-
tively; and
(3) in section 428C(e), by striking ‘‘1998.’’ and
inserting ‘‘2002.’’.
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’’.
(b) TABLE OF CONTENTS.—The table of contents for
this title is as follows:
TITLE VIII—COMMITTEE ON VETERANS’ AFFAIRS
Sec. 8001. Short title; table of contents.
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Subtitle A—Extension of Temporary Authorities
Sec. 8011. Enhanced loan asset sale authority.
Sec. 8012. Home loan fees.
Sec. 8013. Procedures applicable to liquidation sales on defaulted home loans
guaranteed by the Department of Veterans Affairs.
Sec. 8014. Income verification authority.
Sec. 8015. Limitation on pension for certain recipients of medicaid-covered nurs-
ing home care.
Subtitle B—Copayments and Medical Care Cost Recovery
Sec. 8021. Authority to require that certain veterans make copayments in ex-
change for receiving health care benefits.
Sec. 8022. Medical care cost recovery authority.
Sec. 8023. Department of Veterans Affairs medical-care receipts.
Subtitle C—Other Matters
Sec. 8031. Rounding down of cost-of-living adjustments in compensation and
DIC rates in fiscal years 1998 through 2002.
Sec. 8032. Increase in amount of home loan fees for the purchase of repossessed
homes from the Department of Veterans Affairs.
Sec. 8033. Withholding of payments and benefits.
Subtitle A—Extension of Temporary
Authorities
SEC. 8011. ENHANCED LOAN ASSET SALE AUTHORITY.
Section 3720(h)(2) of title 38, United States Code, is
amended by striking out ‘‘December 31, 1997’’ and insert-
ing in lieu thereof ‘‘December 31, 2002’’.
SEC. 8012. HOME LOAN FEES.
Section 3729(a) of title 38, United States Code, is
amended—
(1) in paragraph (4), by striking out ‘‘October 1,
1998’’ and inserting in lieu thereof ‘‘October 1, 2002’’;
and
(2) in paragraph (5)(C), by striking out ‘‘Octo-
ber 1, 1998’’ and inserting in lieu thereof ‘‘October 1,
2002’’.
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SEC. 8013. PROCEDURES APPLICABLE TO LIQUIDATION
SALES ON DEFAULTED HOME LOANS GUAR-
ANTEED BY THE DEPARTMENT OF VETERANS
AFFAIRS.
Section 3732(c)(11) of title 38, United States Code, is
amended by striking out ‘‘October 1, 1998’’ and inserting
in lieu thereof ‘‘October 1, 2002’’.
SEC. 8014. INCOME VERIFICATION AUTHORITY.
Section 5317(g) of title 38, United States Code, is
amended by striking out ‘‘September 30, 1998’’ and insert-
ing in lieu thereof ‘‘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 insert-
ing in lieu thereof ‘‘September 30, 2002’’.
Subtitle B—Copayments and
Medical Care Cost Recovery
SEC. 8021. AUTHORITY TO REQUIRE THAT CERTAIN VETER-
ANS MAKE COPAYMENTS IN EXCHANGE FOR
RECEIVING HEALTH CARE BENEFITS.
(a) HOSPITAL AND MEDICAL CARE.—Section 8013(e)
of the Omnibus Budget Reconciliation Act of 1990 (38
U.S.C. 1710 note) is amended by striking out ‘‘September
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30, 1998’’ and inserting in lieu thereof ‘‘September 30,
2002’’.
(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 ‘‘Sep-
tember 30, 2002’’.
SEC. 8022. MEDICAL CARE COST RECOVERY AUTHORITY.
Section 1729(a)(2)(E) of title 38, United States Code,
is amended by striking out ‘‘October 1, 1998’’ and inserting
in lieu thereof ‘‘October 1, 2002’’.
SEC. 8023. 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 Collec-
tions Fund.
‘‘(b) Amounts recovered or collected after June 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.
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‘‘(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 and
services furnished under this chapter.
‘‘(c)(1) Subject to the provisions of appropriations
Acts, amounts in the fund shall be available to the Secretary
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 identi-
fication, billing, auditing, and collection of amounts
owed the United States by reason of medical care and
services furnished under this chapter.
‘‘(2) Amounts available under paragraph (1) shall be
available only for the purposes set forth in that paragraph.
‘‘(d) The Secretary shall ensure that the amount made
available to a Veterans Integrated Service Network in a fis-
cal year from amounts in the fund is an amount equal to
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the amount recovered or collected by the Veterans Integrated
Service Network under a provision of law referred to in sub-
section (b) during the fiscal year.’’.
(2) The table of sections at the beginning of such chap-
ter 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 ‘‘De-
partment of Veterans Affairs Medical Care Collections
Fund’’.
(4) Section 1729 is amended by striking out sub-
section (g).
(c) DISPOSITION OF FUNDS IN MEDICAL-CARE COST
RECOVERY FUND.—The amount of the unobligated balance
remaining 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