SECTION 1. SHORT TITLE.

    This Act may be cited as the ``District of Columbia Water and Sewer 
Authority Act of 1996''.

SEC. 2. PERMITTING ISSUANCE OF REVENUE BONDS FOR WASTEWATER TREATMENT 
              ACTIVITIES.

    (a) Authority to Issue Bonds.--
        (1) In general.--The first sentence of section 490(a)(1) of the 
    District of Columbia Self-Government and Governmental 
    Reorganization Act (sec. 47-334(a)(1), D.C. Code) is amended--
            (A) by striking ``and industrial'' and inserting 
        ``industrial''; and
            (B) by striking the period at the end and inserting the 
        following: ``, and water and sewer facilities (as defined in 
        paragraph (5)).''.
        (2) Water and sewer facilities defined.--Section 490(a) of such 
    Act (sec. 47-334(a), D.C. Code) is amended by adding at the end the 
    following new paragraph:
    ``(5) In paragraph (1), the term `water and sewer facilities' means 
facilities for the obtaining, treatment, storage, and distribution of 
water, the collection, storage, treatment, and transportation of 
wastewater, storm drainage, and the disposal of liquids and solids 
resulting from treatment.''.
    (b) Use of Revenues to Make Payments on Bonds.--The second sentence 
of section 490(a)(3) of such Act (sec. 47-334(a)(3), D.C. Code) is 
amended by inserting after ``property'' each place it appears in 
subparagraphs (A) and (B) the following: ``(including water and sewer 
enterprise fund revenues, assets, or other property in the case of 
bonds, notes, or obligations issued with respect to water and sewer 
facilities)''.
    (c) Permitting Delegation of Authority To Issue Revenue Bonds to 
Water and Sewer Authority.--
        (1) In general.--Section 490 of such Act (sec. 47-334, D.C. 
    Code) is amended by adding at the end the following new subsection:
    ``(h)(1) The Council may delegate to the District of Columbia Water 
and Sewer Authority established pursuant to the Water and Sewer 
Authority Establishment and Department of Public Works Reorganization 
Act of 1996 the authority of the Council under subsection (a) to issue 
revenue bonds, notes, and other obligations to borrow money to finance 
or assist in the financing or refinancing of undertakings in the area 
of utilities facilities, pollution control facilities, and water and 
sewer facilities (as defined in subsection (a)(5)). The Authority may 
exercise authority delegated to it by the Council as described in the 
first sentence of this paragraph (whether such delegation is made 
before or after the date of the enactment of this subsection) only in 
accordance with this subsection.
    ``(2) Revenue bonds, notes, and other obligations issued by the 
District of Columbia Water and Sewer Authority under a delegation of 
authority described in paragraph (1) shall be issued by resolution of 
the Authority, and any such resolution shall not be considered to be an 
act of the Council.
    ``(3) The fourth sentence of section 446 shall not apply to--
        ``(A) any amount (including the amount of any accrued interest 
    or premium) obligated or expended from the proceeds of the sale of 
    any revenue bond, note, or other obligation issued pursuant to this 
    subsection;
        ``(B) any amount obligated or expended for the payment of the 
    principal of, interest on, or any premium for any revenue bond, 
    note, or other obligation issued pursuant to this subsection;
        ``(C) any amount obligated or expended to secure any revenue 
    bond, note, or other obligation issued pursuant to this subsection; 
    or
        ``(D) any amount obligated or expended for repair, maintenance, 
    and capital improvements to facilities financed pursuant to this 
    subsection.''.
        (2) Conforming amendment.--The fourth sentence of section 446 
    of such Act (sec. 47-304, D.C. Code) is amended by striking ``(f) 
    and (g)(3)'' and inserting ``(f), (g)(3), and (h)(3)''.

SEC. 3. TREATMENT OF REVENUES AND OBLIGATIONS.

    (a) Exclusion of Revenues for Purposes of Cap on Aggregate District 
Debt.--Paragraphs (1) and (3)(A) of section 603(b) of the District of 
Columbia Self-Government and Governmental Reorganization Act (sec. 47-
313(b), D.C. Code) are each amended by inserting after ``revenue 
bonds,'' the following: ``any revenues, charges, or fees dedicated for 
the purposes of water and sewer facilities described in section 490(a) 
(including fees or revenues directed to servicing or securing revenue 
bonds issued for such purposes),''.
    (b) Exclusion of Obligations Relating to Debt Servicing Payments on 
Certain General Obligation Bonds.--
        (1) In general.--Section 603(b)(2) of such Act (sec. 47-
    313(b)(2), D.C. Code) is amended--
            (A) by striking ``and obligations'' and inserting 
        ``obligations''; and
            (B) by inserting after ``establishment,'' the following: 
        ``and obligations incurred pursuant to general obligation bonds 
        of the District of Columbia issued prior to October 1, 1996, 
        for the financing of Department of Public Works, Water and 
        Sewer Utility Administration capital projects,''.
        (2) Conforming amendment.--Section 603(b)(3)(B) of such Act 
    (sec. 47-313(b)(3)(B), D.C. Code) is amended by inserting after 
    ``bonds'' the following: ``(less the allocable portion of principal 
    and interest to be paid during the year on general obligation bonds 
    of the District of Columbia issued prior to October 1, 1996, for 
    the financing of Department of Public Works, Water and Sewer 
    Utility Administration capital projects)''.

SEC. 4. TREATMENT OF BUDGET OF WATER AND SEWER AUTHORITY.

    (a) Preparation of Independent Budget.--Subpart 1 of part D of 
title IV of the District of Columbia Self-Government and Governmental 
Reorganization Act is amended by inserting after section 445 the 
following new section:


                    ``water and sewer authority budget

    ``Sec. 445A. The District of Columbia Water and Sewer Authority 
established pursuant to the Water and Sewer Authority Establishment and 
Department of Public Works Reorganization Act of 1996 shall prepare and 
annually submit to the Mayor, for inclusion in the annual budget, 
annual estimates of the expenditures and appropriations necessary for 
the operation of the Authority for the year. All such estimates shall 
be forwarded by the Mayor to the Council for its action pursuant to 
sections 446 and 603(c), without revision but subject to his 
recommendations. Notwithstanding any other provision of this Act, the 
Council may comment or make recommendations concerning such annual 
estimates, but shall have no authority under this Act to revise such 
estimates.''.
    (b) Exemption From Reductions of Budgets of Independent Agencies.--
Section 453(c) of such Act (sec. 47-304.1(c), D.C. Code) is amended--
        (1) by striking ``courts or the Council, or to'' and inserting 
    ``courts, the Council,''; and
        (2) by striking the period at the end and inserting the 
    following: ``, or the District of Columbia Water and Sewer 
    Authority established pursuant to the Water and Sewer Authority 
    Establishment and Department of Public Works Reorganization Act of 
    1996.''.
    (c) Conforming Amendment.--Section 442(b) of such Act (sec. 47-
301(b), D.C. Code) is amended--
        (1) by striking ``and the Commission'' and inserting ``the 
    Commission''; and
        (2) by striking the period at the end and inserting the 
    following: ``, and the District of Columbia Water and Sewer 
    Authority.''.
    (d) Clerical Amendment.--The table of contents of subpart 1 of part 
D of title IV of the District of Columbia Self-Government and 
Governmental Reorganization Act is amended by inserting after the item 
relating to section 445 the following new item:
``Sec. 445A. Water and Sewer Authority budget.''.

SEC. 5. CLARIFICATION OF COMPENSATION OF CURRENT EMPLOYEES OF 
              DEPARTMENT OF PUBLIC WORKS.

    The first sentence of section 205(b)(2) of the Water and Sewer 
Authority Establishment and Department of Public Works Reorganization 
Act of 1996 (sec. 43-1675(b)(2), D.C. Code) is amended by striking 
``duties)'' and inserting ``duties, and except as may otherwise be 
provided under the personnel system developed pursuant to subsection 
(a)(4) or a collective bargaining agreement entered into after the date 
of the enactment of this Act)''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
District of Columbia Water and Sewer Authority Act of 1996 - Amends the District of Columbia Self-Government and Governmental Reorganization Act to authorize the District of Columbia Council to issue revenue bonds, notes, and other obligations to borrow money to finance water and sewer facilities (defined as facilities for the obtaining, treatment, storage, and distribution of water, the collection, storage, treatment, and transportation of wastewater, storm drainage, and the disposal of liquids and solids resulting from treatment). 
Allows water and sewer enterprise fund revenues, assets, or other property to be used as payments and security for obligations issued with respect to water and sewer facilities. 
Permits the D.C. Council to delegate to the District of Columbia Water and Sewer Authority the authority to issue obligations to finance utilities facilities, pollution control facilities, and water and sewer facilities.  Provides that such obligations issued by the Authority shall be issued by resolution of the Authority and not by an act of the Council. 
Makes provisions requiring congressional approval before amounts may be obligated or expended by District government employees or officers inapplicable with respect to any amount obligated or expended:  (1) from the proceeds of the sale of such obligations; (2) for the payment of the principal of, interest on, or any premium for such obligations; (3) to secure such obligations; and (4) for repair, maintenance, and capital improvements to facilities financed by such obligations. 
Removes from the calculation of the District's debt service ceiling:  (1) revenues, charges, or fees dedicated for the purposes of water and sewer facilities; and (2) obligations incurred pursuant to general obligation bonds issued before FY 1997 for the financing of Department of Public Works, Water and Sewer Utility Administration capital projects. 
Requires:  (1) the Authority to submit to the Mayor for inclusion in the annual budget annual estimates of the expenditures and appropriations necessary for its operation for the year; and (2) the Mayor, without revision but subject to recommendations, to forward the estimates to the Council for its action.  Permits the Council to comment or make recommendations concerning, but not revise, such annual estimates. 
Prohibits the Mayor from reducing amounts appropriated or otherwise made available to the Authority if determined necessary to reduce the District's budget in a fiscal year. 
Amends the Water and Sewer Authority Establishment and Department of Public Works Reorganization Act of 1996 to require employees transferred from the Department of Public Works to the Authority to perform their duties under the personnel system developed by the Authority's Board or a collective bargaining agreement entered into after the enactment of such Act.
District of Columbia Water and Sewer Authority Act of 1996