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June 30, 1997, shall be deposited, not later than December
31, 1997, in the Department of Veterans Affairs Medical
Care Collections Fund established by section 1729A(a) of
title 38, United States Code, as added by subsection (a).
Subtitle C—Other Matters
SEC. 8031. ROUNDING DOWN OF COST-OF-LIVING ADJUST-
MENTS IN COMPENSATION AND DIC RATES IN
FISCAL YEARS 1998 THROUGH 2002.
(a) COMPENSATION COLAS.—(1) Chapter 11 of title
38, United States Code, is amended by inserting after sec-
tion 1102 the following new section:
‘‘§ 1103. Cost-of-living adjustments
‘‘(a) In the computation of cost-of-living adjustments
for fiscal years 1998 through 2002 in the rates of, and dol-
lar limitations applicable to, compensation payable under
this chapter, such adjustments shall be made by a uniform
percentage that is no more than the percentage equal to the
social security increase for that fiscal year, with all in-
creased monthly rates and limitations (other than increased
rates or limitations equal to a whole dollar amount) round-
ed down to the next lower whole dollar amount.
‘‘(b) For purposes of this section, the term ‘social secu-
rity increase’ means the percentage by which benefit
amounts payable under title II of the Social Security Act
(42 U.S.C. 401 et seq.) are increased for any fiscal year
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as a result of a determination under section 215(i) of such
Act (42 U.S.C. 415(i)).’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
1102 the following new item:
‘‘1103. Cost-of-living adjustments.’’.
(b) DIC COLAS.—(1) Chapter 13 of title 38, United
States Code, is amended by inserting after section 1302 the
following new section:
‘‘§ 1303. Cost-of-living adjustments
‘‘(a) In the computation of cost-of-living adjustments
for fiscal years 1998 through 2002 in the rates of depend-
ency and indemnity compensation payable under this chap-
ter, such adjustments (except as provided in subsection (b))
shall be made by a uniform percentage that is no more than
the percentage equal to the social security increase for that
fiscal year, with all increased monthly rates (other than in-
creased rates equal to a whole dollar amount) rounded down
to the next lower whole dollar amount.
‘‘(b)(1) Cost-of-living adjustments for each of fiscal
years 1998 through 2002 in old-law DIC rates shall be in
a whole dollar amount that is no greater than the amount
by which the new-law DIC rate is increased for that fiscal
year as determined under subsection (a).
‘‘(2) For purposes of paragraph (1):
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‘‘(A) The term ‘old-law DIC rates’ means the
dollar amounts in effect under section 1311(a)(3) of
this title.
‘‘(B) The term ‘new-law DIC rate’ means the
dollar amount in effect under section 1311(a)(1) of
this title.
‘‘(c) For purposes of this section, the term ‘social secu-
rity increase’ means the percentage by which benefit
amounts payable under title II of the Social Security Act
(42 U.S.C. 401 et seq.) are increased for any fiscal year
as a result of a determination under section 215(i) of such
Act (42 U.S.C. 415(i)).’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
1302 the following new item:
‘‘1303. Cost-of-living adjustments.’’.
SEC. 8032. INCREASE IN AMOUNT OF HOME LOAN FEES FOR
THE PURCHASE OF REPOSSESSED HOMES
FROM THE DEPARTMENT OF VETERANS AF-
FAIRS.
Section 3729(a) of title 38, United States Code, is
amended—
(1) in paragraph (2)—
(A) in subparagraph (A), by striking out
‘‘or 3733(a)’’;
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(B) in subparagraph (D), by striking out
‘‘and’’ at the end;
(C) in subparagraph (E), by striking out
the period at the end and inserting in lieu there-
of ‘‘; and’’; and
(D) by adding at the end the following:
‘‘(F) in the case of a loan made under section
3733(a) of this title, the amount of such fee shall be
2.25 percent of the total loan amount.’’; and
(2) in paragraph (4), as amended by section
8012(1) of this Act, by striking out ‘‘or (E)’’ and in-
serting in lieu thereof ‘‘(E), or (F)’’.
SEC. 8033. WITHHOLDING OF PAYMENTS AND BENEFITS.
(a) NOTICE REQUIRED
IN LIEU
OF CONSENT
OR
COURT ORDER.—Section 3726 of title 38, United States
Code, is amended—
(1) by inserting ‘‘(a)’’ before ‘‘No officer’’; and
(2) by striking out ‘‘unless’’ and all that follows
and inserting in lieu thereof the following: ‘‘unless the
Secretary provides such veteran or surviving spouse
with notice by certified mail with return receipt re-
quested of the authority of the Secretary to waive the
payment of indebtedness under section 5302(b) of this
title.
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‘‘(b) If the Secretary does not waive the entire amount
of the liability, the Secretary shall then determine whether
the veteran or surviving spouse should be released from li-
ability under section 3713(b) of this title.
‘‘(c) If the Secretary determines that the veteran or
surviving spouse should not be released from liability, the
Secretary shall notify the veteran or surviving spouse of
that determination and provide a notice of the procedure
for appealing that determination, unless the Secretary has
previously made such determination and notified the vet-
eran or surviving spouse of the procedure for appealing the
determination.’’.
(b) CONFORMING AMENDMENT.—Section 5302(b) of
such title is amended by inserting ‘‘with return receipt re-
quested’’ after ‘‘certified mail’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to any indebtedness to the
United States arising pursuant to chapter 37 of title 38,
United States Code, before, on, or after the date of enact-
ment of this Act.
Attest:
Secretary.