Calendar No. 49

104TH CONGRESS

1ST SESSION H. R. 1345

AN ACT

To eliminate budget deficits and management inefposes. agement Assistance Authority, and for other pur- of Columbia Financial Responsibility and Man- lumbia through the establishment of the District ficiencies in the government of the District of CoAPRIL 4 (legislative day, MARCH 27), 1995

Received; read twice and ordered placed on the calendar
II

Calendar No. 49

104TH CONGRESS

1ST SESSION H. R. 1345

IN THE SENATE OF THE UNITED STATES

APRIL 4 (legislative day, MARCH 27), 1995

Received; read twice and ordered placed on the calendar

AN ACT

To eliminate budget deficits and management inefficiencies

in the government of the District of Columbia through

the establishment of the District of Columbia Financial

Responsibility and Management Assistance Authority,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘District of Columbia Financial Responsibility and Man6 agement Assistance Act of 1995’’.
2

•HR 1345 PCS

1 (b) TABLE OF CONTENTS.—The table of contents of

2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings; purpose.

TITLE I—ESTABLISHMENT AND ORGANIZATION OF AUTHORITY

Sec. 101. District of Columbia Financial Responsibility and Management Assistance Authority.

Sec. 102. Executive director and staff of Authority.

Sec. 103. Powers of Authority.

Sec. 104. Exemption from liability for claims.

Sec. 105. Treatment of actions arising from act.

Sec. 106. Funding for operation of Authority.

Sec. 107. Suspension of activities.

Sec. 108. Application of laws of District of Columbia to Authority.

TITLE II—RESPONSIBILITIES OF AUTHORITY

Subtitle A—Establishment and Enforcement of Financial Plan

and Budget for District Government

Sec. 201. Development of financial plan and budget for District of Columbia.

Sec. 202. Process for submission and approval of financial plan and annual

District budget.

Sec. 203. Review of activities of District government to ensure compliance with

approved financial plan and budget.

Sec. 204. Restrictions on borrowing by District during control year.

‘‘Sec. 601. Transitional provision for short-term advances.

‘‘Sec. 602. Short-term advances for seasonal cash-flow management.

‘‘Sec. 603. Security for advances.

‘‘Sec. 604. Reimbursement to the Treasury.

‘‘Sec. 605. Definitions.

Sec. 205. Deposit of annual Federal payment with Authority.

Sec. 206. Effect of finding of non-compliance with financial plan and budget.

Sec. 207. Recommendations on financial stability and management responsibility.

Sec. 208. Special rules for fiscal year 1996.

Sec. 209. Control periods described.

Subtitle B—Issuance of Bonds

Sec. 211. Authority to issue bonds.

Sec. 212. Pledge of security interest in revenues of district government.

Sec. 213. Establishment of debt service reserve fund.

Sec. 214. Other requirements for issuance of bonds.

Sec. 215. No full faith and credit of the United States.

Subtitle C—Other Duties of Authority

Sec. 221. Duties of Authority during year other than control year.

Sec. 222. General assistance in achieving financial stability and management

efficiency.

Sec. 223. Obtaining reports.

Sec. 224. Reports and comments.
3

•HR 1345 PCS

TITLE III—MISCELLANEOUS PROVISIONS

Sec. 301. Other District budget reforms.

Sec. 302. Establishment of Chief Financial Officer of District of Columbia.

Sec. 303. Revisions to powers and duties of Inspector General of District of Columbia.

Sec. 304. Council approval of certain contracts.

Sec. 305. Definitions.

1 SEC. 2. FINDINGS; PURPOSE.

2 (a) FINDINGS.—Congress finds the following:

3 (1) A combination of accumulated operating

4 deficits, cash shortages, management inefficiencies,

5 and deficit spending in the current fiscal year have

6 created a fiscal emergency in the District of Colum7 bia.

8 (2) As a result of its current financial problems

9 and management inefficiencies, the District of Co10 lumbia government fails to provide its citizens with

11 effective and efficient services in areas such as edu12 cation, health care, crime prevention, trash collec13 tion, drug abuse treatment and prevention, human

14 services delivery, and the supervision and training of

15 government personnel.

16 (3) The current financial and management

17 problems of the District government have already

18 adversely affected the long-term economic health of

19 the District of Columbia by causing the migration of

20 residents and business out of the District of Colum21 bia and the failure of new residents and businesses

22 to move to the District of Columbia.
4

•HR 1345 PCS

1 (4) The fiscal and management problems in the

2 District of Columbia government are pervasive

3 across all segments of the government.

4 (5) A comprehensive approach to fiscal, man5 agement, and structural problems must be under6 taken which exempts no part of the District govern7 ment and which preserves home rule for the citizens

8 of the District of Columbia.

9 (6) The current deficit of the District of Colum10 bia must be resolved over a multi-year period, since

11 it cannot be effectively addressed in a single year.

12 (7) The ability of the District government to

13 obtain funds from capital markets in the future will

14 be severely diminished without Congressional action

15 to restore its financial stability.

16 (8) The failure to improve the financial situa17 tion of the District government will adversely affect

18 the long-term economic health of the entire National

19 Capital region.

20 (9) The efficient operation of the Federal Gov21 ernment may be adversely affected by the current

22 problems of the District of Columbia not only

23 through the services the District government pro24 vides directly to the Federal Government but

25 through services provided indirectly such as street
5

•HR 1345 PCS

1 and traffic flow maintenance, public safety, and

2 services affecting tourism.

3 (b) PURPOSE.—The purposes of this Act are as

4 follows:

5 (1) To eliminate budget deficits and cash short6 ages of the District of Columbia through visionary

7 financial planning, sound budgeting, accurate reve8 nue forecasts, and careful spending.

9 (2) To ensure the most efficient and effective

10 delivery of services, including public safety services,

11 by the District government during a period of fiscal

12 emergency.

13 (3) To conduct necessary investigations and

14 studies to determine the fiscal status and oper15 ational efficiency of the District government.

16 (4) To assist the District government in—

17 (A) restructuring its organization and

18 workforce to ensure that the residents of the

19 District of Columbia are served by a local gov20 ernment that is efficient and effective;

21 (B) achieving an appropriate relationship

22 with the Federal Government;

23 (C) ensuring the appropriate and efficient

24 delivery of services; and
6

•HR 1345 PCS

1 (D) modernizing its budget, accounting,

2 personnel, procurement, information technology,

3 and management systems to ensure the maxi4 mum financial and performance accountability

5 of the District government and its officers and

6 employees.

7 (5) To enhance the District government’s ac8 cess to the capital markets and to ensure the contin9 ued orderly payment of its debt service obligations.

10 (6) To ensure the long-term financial, fiscal,

11 and economic vitality and operational efficiency of

12 the District of Columbia.

13 (7) To examine the programmatic and struc14 tural relationship between the District government

15 and the Federal Government.

16 (8) To provide for the review of the financial

17 impact of activities of the District government before

18 such activities are implemented or submitted for

19 Congressional review.

20 (c) RULES OF CONSTRUCTION.—Nothing in this Act

21 may be construed—

22 (1) to relieve any obligations existing as of the

23 date of the enactment of this Act of the District gov24 ernment to repay any individual or entity from
7

Title I

•HR 1345 PCS

1 whom the District has borrowed funds, whether

2 through the issuance of bonds or otherwise; or

3 (2) to limit the authority of Congress to exer4 cise ultimate legislative authority over the District of

5 Columbia pursuant to Article I, section 8, clause 17

6 of the Constitution of the United States.

7 TITLE I—ESTABLISHMENT AND

8 ORGANIZATION OF AUTHORITY

9 SEC. 101. DISTRICT OF COLUMBIA FINANCIAL RESPON10 SIBILITY AND MANAGEMENT ASSISTANCE AU11 THORITY.

12 (a) ESTABLISHMENT.—Pursuant to Article I, section

13 8, clause 17 of the Constitution of the United States, there

14 is hereby established the District of Columbia Financial

15 Responsibility and Management Assistance Authority,

16 consisting of members appointed by the President in ac17 cordance with subsection (b). Subject to the conditions de18 scribed in section 108 and except as otherwise provided

19 in this Act, the Authority is established as an entity within

20 the government of the District of Columbia, and is not

21 established as a department, agency, establishment, or in22 strumentality of the United States Government.

23 (b) MEMBERSHIP.—

24 (1) IN GENERAL.—The Authority shall consist

25 of 5 members appointed by the President who meet
8

Title I

•HR 1345 PCS

1 the qualifications described in subsection (c), except

2 that the Authority may take any action under this

3 Act (or any amendments made by this Act) at any

4 time after the President has appointed 3 of its mem5 bers.

6 (2) CONSULTATION WITH CONGRESS.—The

7 President shall appoint the members of the Author8 ity after consulting with the Chair of the Committee

9 on Appropriations and the Chair of the Committee

10 on Government Reform and Oversight of the House

11 of Representatives, the Chair of the Committee on

12 Appropriations and the Chair of the Committee on

13 Governmental Affairs of the Senate, and the Dele14 gate to the House of Representatives from the Dis15 trict of Columbia.

16 (3) CHAIR.—The President shall designate one

17 of the members of the Authority as the Chair of the

18 Authority.

19 (4) SENSE OF CONGRESS REGARDING DEAD20 LINE FOR APPOINTMENT.—It is the sense of Con21 gress that the President should appoint the members

22 of the Authority as soon as practicable after the

23 date of the enactment of this Act, but in no event

24 later than 25 days after the date of the enactment

25 of this Act.
9

Title I

•HR 1345 PCS

1 (5) TERM OF SERVICE.—

2 (A) IN GENERAL.—Except as provided in

3 subparagraph (B), each member of the Author4 ity shall be appointed for a term of 3 years.

5 (B) APPOINTMENT FOR TERM FOLLOWING

6 INITIAL TERM.—As designated by the President

7 at the time of appointment for the term imme8 diately following the initial term, of the mem9 bers appointed for the term immediately follow10 ing the initial term—

11 (i) 1 member shall be appointed for a

12 term of 1 year;

13 (ii) 2 members shall be appointed for

14 a term of 2 years; and

15 (iii) 2 members shall be appointed for

16 a term of 3 years.

17 (C) REMOVAL.—The President may re18 move any member of the Authority only for

19 cause.

20 (c) QUALIFICATIONS FOR MEMBERSHIP.—An indi21 vidual meets the qualifications for membership on the Au22 thority if the individual—

23 (1) has knowledge and expertise in finance,

24 management, and the organization or operation of

25 business or government;
10

Title I

•HR 1345 PCS

1 (2) does not provide goods or services to the

2 District government (and is not the spouse, parent,

3 child, or sibling of an individual who provides goods

4 and services to the District government);

5 (3) is not an officer or employee of the District

6 government; and

7 (4) during the most recent taxable year prior to

8 appointment, paid personal income or business taxes

9 to the District government.

10 (d) NO COMPENSATION FOR SERVICE.—Members of

11 the Authority shall serve without pay, but may receive re12 imbursement for any reasonable and necessary expenses

13 incurred by reason of service on the Authority.

14 (e) ADOPTION OF BY-LAWS FOR CONDUCTING BUSI15 NESS OF AUTHORITY.—

16 (1) IN GENERAL.—As soon as practicable after

17 the appointment of its members, the Authority shall

18 adopt by-laws, rules, and procedures governing its

19 activities under this Act, including procedures for

20 hiring experts and consultants. Such by-laws, rules,

21 and procedures shall be public documents, and shall

22 be submitted by the Authority upon adoption to the

23 Mayor, the Council, the President, and Congress.

24 (2) CERTAIN ACTIVITIES REQUIRING APPROVAL

25 OF MAJORITY OF MEMBERS.—Under the by-laws
11

Title I

•HR 1345 PCS

1 adopted pursuant to paragraph (1), the Authority

2 may conduct its operations under such procedures as

3 it considers appropriate, except that an affirmative

4 vote of a majority of the members of the Authority

5 shall be required in order for the Authority to—

6 (A) approve or disapprove a financial plan

7 and budget under subtitle A of title II;

8 (B) implement recommendations on finan9 cial stability and management responsibility

10 under section 207;

11 (C) give consent to the appointment of the

12 Chief Financial Officer of the District of Co13 lumbia under section 424 of the District of Co14 lumbia Self-Government and Governmental Re15 organization Act (as added by section 302); and

16 (D) give consent to the appointment of the

17 Inspector General of the District of Columbia

18 under section 208(a) of the District of Colum19 bia Procurement Practices Act of 1985 (as

20 amended by section 303(a)).

21 (3) ADOPTION OF RULES AND REGULATIONS OF

22 DISTRICT OF COLUMBIA.—The Authority may incor23 porate in its by-laws, rules, and procedures under

24 this subsection such rules and regulations of the

25 District government as it considers appropriate to
12

Title I

•HR 1345 PCS

1 enable it to carry out its activities under this Act

2 with the greatest degree of independence practicable.

3 SEC. 102. EXECUTIVE DIRECTOR AND STAFF OF AUTHOR4 ITY.

5 (a) EXECUTIVE DIRECTOR.—The Authority shall

6 have an Executive Director who shall be appointed by the

7 Chair with the consent of the Authority. The Executive

8 Director shall be paid at a rate determined by the Author9 ity, except that such rate may not exceed the rate of basic

10 pay payable for level IV of the Executive Schedule.

11 (b) STAFF.—With the approval of the Chair, the Ex12 ecutive Director may appoint and fix the pay of additional

13 personnel as the Executive Director considers appropriate,

14 except that no individual appointed by the Executive Di15 rector may be paid at a rate greater than the rate of pay

16 for the Executive Director.

17 (c) INAPPLICABILITY OF CERTAIN CIVIL SERVICE

18 LAWS.—The Executive Director and staff of the Authority

19 may be appointed without regard to the provisions of title

20 5, United States Code, governing appointments in the

21 competitive service, and may be paid without regard to

22 the provisions of chapter 51 and subchapter III of chapter

23 53 of that title relating to classification and General

24 Schedule pay rates.
13

Title I

•HR 1345 PCS

1 (d) STAFF OF FEDERAL AGENCIES.—Upon request

2 of the Chair, the head of any Federal department or

3 agency may detail, on a reimbursable or non-reimbursable

4 basis, any of the personnel of that department or agency

5 to the Authority to assist it in carrying out its duties

6 under this Act.

7 (e) PRESERVATION OF RETIREMENT AND CERTAIN

8 OTHER RIGHTS OF FEDERAL EMPLOYEES WHO BECOME

9 EMPLOYED BY THE AUTHORITY.—

10 (1) IN GENERAL.—A Federal employee who,

11 within 2 months after separating from the Federal

12 Government, becomes employed by the Authority—

13 (A) may elect, for purposes of the retire14 ment system in which that individual last par15 ticipated before so separating, to have such in16 dividual’s period of service with the Authority

17 treated in the same way as if performed in the

18 position within the Federal Government from

19 which separated, subject to the requisite em20 ployee deductions and agency contributions

21 being currently deposited in the appropriate

22 fund; and

23 (B) if, after serving with the Authority,

24 such employee becomes reemployed by the Fed25 eral Government, shall be entitled to credit, for
14

Title I

•HR 1345 PCS

1 the full period of such individual’s service with

2 the Authority, for purposes of determining the

3 applicable leave accrual rate.

4 (2) RETIREMENT.—

5 (A) CONTRIBUTIONS.—For purposes of

6 subparagraph (A) of paragraph (1)—

7 (i) the employee deductions referred

8 to in such paragraph shall be made from

9 basic pay for service with the Authority,

10 and shall be computed using the same per11 centage as would then apply if the individ12 ual were instead serving in the position

13 within the Federal Government from which

14 separated; and

15 (ii) the agency contributions referred

16 to in such paragraph shall be made by the

17 Authority.

18 (B) DOUBLE COVERAGE NOT PER19 MITTED.—An individual who makes an election

20 under paragraph (1)(A) shall be ineligible, while

21 such election remains in effect, to participate in

22 any retirement system for employees of the gov23 ernment of the District of Columbia.

24 (3) REGULATIONS.—The Office of Personnel

25 Management shall prescribe such regulations as may
15

Title I

•HR 1345 PCS

1 be necessary to carry out this subsection. Regula2 tions to carry out paragraph (1)(A) shall be pre3 scribed in consultation with the office or agency of

4 the government of the District of Columbia having

5 jurisdiction over any retirement system referred to

6 in paragraph (2)(B).

7 SEC. 103. POWERS OF AUTHORITY.

8 (a) HEARINGS AND SESSIONS.—The Authority may,

9 for the purpose of carrying out this Act, hold hearings,

10 sit and act at times and places, take testimony, and re11 ceive evidence as the Authority considers appropriate. The

12 Authority may administer oaths or affirmations to wit13 nesses appearing before it.

14 (b) POWERS OF MEMBERS AND AGENTS.—Any mem15 ber or agent of the Authority may, if authorized by the

16 Authority, take any action which the Authority is author17 ized to take by this section.

18 (c) OBTAINING OFFICIAL DATA.—

19 (1) FROM FEDERAL GOVERNMENT.—Notwith20 standing sections 552 (commonly known as the

21 Freedom of Information Act) and 552b (the Govern22 ment in the Sunshine Act) of title 5, United States

23 Code, the Authority may secure directly from any

24 department or agency of the United States informa25 tion necessary to enable it to carry out this Act, with
16

Title I

•HR 1345 PCS

1 the approval of the head of that department or

2 agency.

3 (2) FROM DISTRICT GOVERNMENT.—Notwith4 standing any other provision of law, the Authority

5 shall have the right to secure copies of such records,

6 documents, information, or data from any entity of

7 the District government necessary to enable the Au8 thority to carry out its responsibilities under this

9 Act. At the request of the Authority, the Authority

10 shall be granted direct access to such information

11 systems, records, documents or information or data

12 as will enable the Authority to carry out its respon13 sibilities under this Act. The head of the entity of

14 the District government responsible shall provide the

15 Authority with such information and assistance (in16 cluding granting the Authority direct access to auto17 mated or other information systems) as the Author18 ity requires under this paragraph.

19 (d) GIFTS, BEQUESTS, AND DEVISES.—The Author20 ity may accept, use, and dispose of gifts, bequests, or de21 vises of services or property, both real and personal, for

22 the purpose of aiding or facilitating the work of the Au23 thority. Gifts, bequests, or devises of money and proceeds

24 from sales of other property received as gifts, bequests,

25 or devises shall be deposited in such account as the Au-
17

Title I

•HR 1345 PCS

1 thority may establish and shall be available for disburse2 ment upon order of the Chair.

3 (e) SUBPOENA POWER.—

4 (1) IN GENERAL.—The Authority may issue

5 subpoenas requiring the attendance and testimony of

6 witnesses and the production of any evidence relat7 ing to any matter under investigation by the Author8 ity. The attendance of witnesses and the production

9 of evidence may be required from any place within

10 the United States at any designated place of hearing

11 within the United States.

12 (2) FAILURE TO OBEY A SUBPOENA.—If a per13 son refuses to obey a subpoena issued under para14 graph (1), the Authority may apply to a United

15 States district court for an order requiring that per16 son to appear before the Authority to give testimony,

17 produce evidence, or both, relating to the matter

18 under investigation. The application may be made

19 within the judicial district where the hearing is con20 ducted or where that person is found, resides, or

21 transacts business. Any failure to obey the order of

22 the court may be punished by the court as civil

23 contempt.

24 (3) SERVICE OF SUBPOENAS.—The subpoenas

25 of the Authority shall be served in the manner pro-
18

Title I

•HR 1345 PCS

1 vided for subpoenas issued by United States district

2 court under the Federal Rules of Civil Procedure for

3 the United States district courts.

4 (4) SERVICE OF PROCESS.—All process of any

5 court to which application is be made under para6 graph (2) may be served in the judicial district in

7 which the person required to be served resides or

8 may be found.

9 (f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the

10 request of the Authority, the Administrator of General

11 Services may provide to the Authority, on a reimbursable

12 basis, the administrative support services necessary for the

13 Authority to carry out its responsibilities under this Act.

14 (g) AUTHORITY TO ENTER INTO CONTRACTS.—The

15 Executive Director may enter into such contracts as the

16 Executive Director considers appropriate (subject to the

17 approval of the Chair) to carry out the Authority’s respon18 sibilities under this Act.

19 (h) CIVIL ACTIONS TO ENFORCE POWERS.—The Au20 thority may seek judicial enforcement of its authority to

21 carry out its responsibilities under this Act.

22 (i) PENALTIES.—

23 (1) ACTS PROHIBITED.—Any officer or em24 ployee of the District government who—
19

Title I

•HR 1345 PCS

1 (A) takes any action in violation of any

2 valid order of the Authority or fails or refuses

3 to take any action required by any such order;

4 or

5 (B) prepares, presents, or certifies any in6 formation (including any projections or esti7 mates) or report for the Board or any of its

8 agents that is false or misleading, or, upon

9 learning that any such information is false or

10 misleading, fails to immediately advise the

11 Board or its agents thereof in writing,

12 shall be guilty of a misdemeanor.

13 (2) ADMINISTRATIVE DISCIPLINE.—In addition

14 to any other applicable penalty, any officer or em15 ployee of the District government who knowingly

16 and willfully violates paragraph (1) shall be subject

17 to appropriate administrative discipline, including

18 (when appropriate) suspension from duty without

19 pay or removal from office by order of either the

20 Mayor or Authority.

21 (3) REPORT BY MAYOR ON DISCIPLINARY AC22 TIONS TAKEN.—In the case of a violation of para23 graph (1) by an officer or employee of the District

24 government, the Mayor shall immediately report to
20

Title I

•HR 1345 PCS

1 the Board all pertinent facts together with a state2 ment of the action taken thereon.

3 SEC. 104. EXEMPTION FROM LIABILITY FOR CLAIMS.

4 The Authority and its members may not be liable for

5 any obligation of or claim against the District of Columbia

6 resulting from actions taken to carry out this Act.

7 SEC. 105. TREATMENT OF ACTIONS ARISING FROM ACT.

8 (a) JURISDICTION ESTABLISHED IN DISTRICT

9 COURT FOR DISTRICT OF COLUMBIA.—Except as pro10 vided in section 103(e)(2) (relating to the issuance of an

11 order enforcing a subpoena), any action against the Au12 thority or any action otherwise arising out of this Act, in

13 whole or in part, shall be brought in the United States

14 District Court for the District of Columbia.

15 (b) PROMPT APPEAL.—

16 (1) COURT OF APPEALS.—Notwithstanding any

17 other provision of law, any order of the United

18 States District Court for the District of Columbia

19 which is issued pursuant to an action brought under

20 subsection (a) shall be reviewable only pursuant to

21 a notice of appeal to the United States Court of Ap22 peals for the District of Columbia Circuit.

23 (2) SUPREME COURT.—Notwithstanding any

24 other provision of law, review by the Supreme Court

25 of the United States of a decision of the Court of
21

Title I

•HR 1345 PCS

1 Appeals which is issued pursuant to paragraph (1)

2 may be had only if the petition for such review is

3 filed within 10 days after the entry of such decision.

4 (c) TIMING OF RELIEF.—No order of any court

5 granting declaratory or injunctive relief against the Au6 thority, including relief permitting or requiring the obliga7 tion, borrowing, or expenditure of funds, shall take effect

8 during the pendency of the action before such court, dur9 ing the time appeal may be taken, or (if appeal is taken)

10 during the period before the court has entered its final

11 order disposing of such action.

12 (d) EXPEDITED CONSIDERATION.—It shall be the

13 duty of the United States District Court for the District

14 of Columbia, the United States Court of Appeals for the

15 District of Columbia Circuit, and the Supreme Court of

16 the United States to advance on the docket and to expe17 dite to the greatest possible extent the disposition of any

18 matter brought under subsection (a).

19 SEC. 106. FUNDING FOR OPERATION OF AUTHORITY.

20 (a) ANNUAL BUDGETING PROCESS.—

21 (1) SUBMISSION OF BUDGET.—The Authority

22 shall submit a proposed budget for each fiscal year

23 to the President for inclusion in the annual budget

24 for the District of Columbia under part D of title IV

25 of the District of Columbia Self-Government and
22

Title I

•HR 1345 PCS

1 Governmental Reorganization Act not later than the

2 May 1 prior to the first day of the fiscal year. In

3 the case of the budget for fiscal year 1996, the Au4 thority shall submit its proposed budget not later

5 than July 15, 1995.

6 (2) CONTENTS OF BUDGET.—The budget shall

7 describe—

8 (A) expenditures of the Authority by each

9 object class, including expenditures for staff of

10 the Authority;

11 (B) services of personnel and other services

12 provided by or on behalf of the Authority for

13 which the Authority made no reimbursement;

14 and

15 (C) any gifts or bequests made to the au16 thority during the previous fiscal year.

17 (3) APPROPRIATIONS REQUIRED.—No amount

18 may be obligated or expended by the Authority for

19 a fiscal year (beginning with fiscal year 1996) unless

20 such amount has been approved by Act of Congress,

21 and then only according to such Act.

22 (4) CONFORMING AMENDMENT.—Section

23 453(c) of the District of Columbia Self-Government

24 and Governmental Reorganization Act (sec. 47–

25 304.1(c), D.C. Code) is amended by striking the pe-
23

Title I

•HR 1345 PCS

1 riod at the end and inserting the following: ‘‘, or to

2 the District of Columbia Financial Responsibility

3 and Management Assistance Authority established

4 under section 101(a) of the District of Columbia Fi5 nancial Responsibility and Management Assistance

6 Act of 1995.’’.

7 (b) SPECIAL RULE FOR FUNDING OF OPERATIONS

8 DURING FISCAL YEAR 1995.—As soon as practicable

9 after the appointment of its members, the Authority shall

10 submit to the Mayor and the President—

11 (1) a request for reprogramming of funds under

12 subsection (c)(1); and

13 (2) a description of anticipated expenditures of

14 the Authority for fiscal year 1995 (which shall be

15 transmitted to Congress).

16 (c) SOURCES OF FUNDS.—

17 (1) USE OF PREVIOUSLY APPROPRIATED FUNDS

18 IN DISTRICT BUDGET.—The Mayor shall transfer

19 funds previously appropriated to the District govern20 ment for a fiscal year for auditing and consulting

21 services to the Authority (in such amounts as are

22 provided in the budget request of the Authority

23 under subsection (a) or, with respect to fiscal year

24 1995, the request submitted under subsection
24

Title I

•HR 1345 PCS

1 (b)(1)) for the purpose of carrying out the

2 Authority’s activities during the fiscal year.

3 (2) OTHER SOURCES OF FUNDS.—For provi4 sions describing the sources of funds available for

5 the operations of the Authority during a fiscal year

6 (in addition to any interest earned on accounts of

7 the Authority during the year), see section

8 204(b)(1)(A) (relating to the set-aside of amounts

9 requisitioned from the Treasury by the Mayor) and

10 section 213(b)(3) (relating to the use of interest ac11 crued from amounts in a debt service reserve fund

12 of the Authority).

13 SEC. 107. SUSPENSION OF ACTIVITIES.

14 (a) SUSPENSION UPON PAYMENT OF AUTHORITY

15 OBLIGATIONS.—

16 (1) IN GENERAL.—Upon the expiration of the

17 12-month period which begins on the date that the

18 Authority certifies that all obligations arising from

19 the issuance by the Authority of bonds, notes, or

20 other obligations pursuant to subtitle B of title II

21 have been discharged, and that all borrowings by or

22 on behalf of the District of Columbia pursuant to

23 title VI of the District of Columbia Revenue Act of

24 1939 (sec. 47–3401, D.C. Code) have been repaid,

25 the Authority shall suspend any activities carried out
25

Title I

•HR 1345 PCS

1 under this Act and the terms of the members of the

2 Authority shall expire.

3 (2) NO SUSPENSION DURING CONTROL YEAR.—

4 The Authority may not suspend its activities pursu5 ant to paragraph (1) at any time during a control

6 year.

7 (b) REACTIVATION UPON INITIATION OF CONTROL

8 PERIOD.—Upon receiving notice from the Chairs of the

9 Appropriations Committees of the House of Representa10 tives and the Senate that a control period has been initi11 ated (as described in section 209) at any time after the

12 Authority suspends its activities under subsection (a), the

13 President shall appoint members of the Authority, and the

14 Authority shall carry out activities under this Act, in the

15 same manner as the President appointed members and the

16 Authority carried out activities prior to such suspension.

17 SEC. 108. APPLICATION OF LAWS OF DISTRICT OF COLUM18 BIA TO AUTHORITY.

19 (a) IN GENERAL.—The following laws of the District

20 of Columbia (as in effect on the date of the enactment

21 of this Act) shall apply to the members and activities of

22 the Authority:

23 (1) Section 742 of the District of Columbia

24 Self-Government and Governmental Reorganization

25 Act (sec. 1–1504, D.C. Code).
26

Title I

•HR 1345 PCS

1 (2) Sections 201 through 206 of the District of

2 Columbia Freedom of Information Act (secs. 1–1521

3 through 1–1526, D.C. Code).

4 (3) Section 601 of the District of Columbia

5 Campaign Finance Reform and Conflict of Interest

6 Act (sec. 1–1461, D.C. Code).

7 (b) NO CONTROL, SUPERVISION, OVERSIGHT, OR RE8 VIEW BY MAYOR OR COUNCIL.—

9 (1) IN GENERAL.—Neither the Mayor nor the

10 Council may exercise any control, supervision, over11 sight, or review over the Authority or its activities.

12 (2) PROHIBITION AGAINST LEGISLATION AF13 FECTING AUTHORITY.—Section 602(a) of the Dis14 trict of Columbia Self-Government and Govern15 mental Reorganization Act (sec. 1–233(a), D.C.

16 Code) is amended—

17 (A) by striking ‘‘or’’ at the end of para18 graph (8);

19 (B) by striking the period at the end of

20 paragraph (9) and inserting ‘‘; or’’; and

21 (C) by adding at the end the following new

22 paragraph:

23 ‘‘(10) enact any act, resolution, or rule with re24 spect to the District of Columbia Financial Respon25 sibility and Management Assistance Authority estab-
27

Title II, Subtitle A

•HR 1345 PCS

1 lished under section 101(a) of the District of Colum2 bia Financial Responsibility and Management As3 sistance Act of 1995.’’.

4 (c) AUTHORITY NOT SUBJECT TO REPRESENTATION

5 BY CORPORATION COUNSEL.—In any action brought by

6 or on behalf of the Authority, and in any action brought

7 against the Authority, the Authority shall be represented

8 by such counsel as it may select, but in no instance may

9 the Authority be represented by the Corporation Counsel

10 of the District of Columbia.

11 TITLE II—RESPONSIBILITIES OF

12 AUTHORITY

13 Subtitle A—Establishment and En14 forcement of Financial Plan and

15 Budget for District Government

16 SEC. 201. DEVELOPMENT OF FINANCIAL PLAN AND BUDG17 ET FOR DISTRICT OF COLUMBIA.

18 (a) DEVELOPMENT OF FINANCIAL PLAN AND BUDG19 ET.—For each fiscal year for which the District govern20 ment is in a control period, the Mayor shall develop and

21 submit to the Authority a financial plan and budget for

22 the District of Columbia in accordance with this section.

23 (b) CONTENTS OF FINANCIAL PLAN AND BUDGET.—

24 A financial plan and budget for the District of Columbia

25 for a fiscal year shall specify the budgets for the District
28

Title II, Subtitle A

•HR 1345 PCS

1 government under part D of title IV of the District of Co2 lumbia Self-Government and Governmental Reorganiza3 tion Act for the applicable fiscal year and the next 3 fiscal

4 years (including the projected revenues and expenditures

5 of each fund of the District government for such years),

6 in accordance with the following requirements:

7 (1) The financial plan and budget shall meet

8 the standards described in subsection (c) to promote

9 the financial stability of the District government.

10 (2) The financial plan and budget shall provide

11 for estimates of revenues and expenditures on a

12 modified accrual basis.

13 (3) The financial plan and budget shall—

14 (A) describe lump sum expenditures by de15 partment by object class;

16 (B) describe capital expenditures (together

17 with a schedule of projected capital commit18 ments of the District government and proposed

19 sources of funding);

20 (C) contain estimates of short-term and

21 long-term debt (both outstanding and antici22 pated to be issued); and

23 (D) contain cash flow forecasts for each

24 fund of the District government at such inter25 vals as the Authority may require.
29

Title II, Subtitle A

•HR 1345 PCS

1 (4) The financial plan and budget shall include

2 a statement describing methods of estimations and

3 significant assumptions.

4 (5) The financial plan and budget shall include

5 any other provisions and shall meet such other cri6 teria as the Authority considers appropriate to meet

7 the purposes of this Act, including provisions for

8 changes in personnel policies and levels for each de9 partment or agency of the District government,

10 changes in the structure and organization of the

11 District government, and management initiatives to

12 promote productivity, improvement in the delivery of

13 services, or cost savings.

14 (c) STANDARDS TO PROMOTE FINANCIAL STABILITY

15 DESCRIBED.—

16 (1) IN GENERAL.—The standards to promote

17 the financial stability of the District government ap18 plicable to the financial plan and budget for a fiscal

19 year are as follows:

20 (A) In the case of the financial plan and

21 budget for fiscal year 1996, the expenditures of

22 the District government for each fiscal year (be23 ginning with fiscal year 1999) may not exceed

24 the revenues of the District government for

25 each such fiscal year.
30

Title II, Subtitle A

•HR 1345 PCS

1 (B) During fiscal years 1996, 1997, and

2 1998, the District government shall make con3 tinuous, substantial progress towards equalizing

4 the expenditures and revenues of the District

5 government for such fiscal years (in equal an6 nual installments to the greatest extent pos7 sible).

8 (C) The District government shall provide

9 for the orderly liquidation of the cumulative

10 fund balance deficit of the District government,

11 as evidenced by financial statements prepared

12 in accordance with generally accepted account13 ing principles.

14 (D) If funds in accounts of the District

15 government which are dedicated for specific

16 purposes have been withdrawn from such ac17 counts for other purposes, the District govern18 ment shall fully restore the funds to such ac19 counts.

20 (E) The financial plan and budget shall as21 sure the continuing long-term financial stability

22 of the District government, as indicated by fac23 tors including access to short-term and long24 term capital markets, the efficient management

25 of the District government’s workforce, and the
31

Title II, Subtitle A

•HR 1345 PCS

1 effective provision of services by the District

2 government.

3 (2) APPLICATION OF SOUND BUDGETARY PRAC4 TICES.—In meeting the standards described in para5 graph (1) with respect to a financial plan and budg6 et for a fiscal year, the District government shall

7 apply sound budgetary practices, including reducing

8 costs and other expenditures, improving productivity,

9 increasing revenues, or combinations of such prac10 tices.

11 (3) ASSUMPTIONS BASED ON CURRENT LAW.—

12 In meeting the standards described in paragraph (1)

13 with respect to a financial plan and budget for a fis14 cal year, the District government shall base esti15 mates of revenues and expenditures on Federal law

16 as in effect at the time of the preparation of the fi17 nancial plan and budget.

18 (d) REPEAL OF OFFSETS AGAINST FEDERAL PAY19 MENT AND OTHER DISTRICT REVENUES.—Section 138 of

20 the District of Columbia Appropriations Act, 1995, is

21 amended—

22 (1) by striking subsection (c); and

23 (2) by redesignating subsections (d) and (e) as

24 subsections (c) and (d).
32

Title II, Subtitle A

•HR 1345 PCS

1 SEC. 202. PROCESS FOR SUBMISSION AND APPROVAL OF FI2 NANCIAL PLAN AND ANNUAL DISTRICT

3 BUDGET.

4 (a) SUBMISSION OF PRELIMINARY FINANCIAL PLAN

5 AND BUDGET BY MAYOR.—Not later than the February

6 1 preceding a fiscal year for which the District govern7 ment is in a control period, the Mayor shall submit to the

8 Authority and the Council a financial plan and budget for

9 the fiscal year which meets the requirements of section

10 201.

11 (b) REVIEW BY AUTHORITY.—Upon receipt of the fi12 nancial plan and budget for a fiscal year from the Mayor

13 under subsection (a), the Authority shall promptly review

14 the financial plan and budget. In conducting the review,

15 the Authority may request any additional information it

16 considers necessary and appropriate to carry out its duties

17 under this subtitle.

18 (c) ACTION UPON APPROVAL OF MAYOR’S PRELIMI19 NARY FINANCIAL PLAN AND BUDGET.—

20 (1) CERTIFICATION TO MAYOR.—

21 (A) IN GENERAL.—If the Authority deter22 mines that the financial plan and budget for the

23 fiscal year submitted by the Mayor under sub24 section (a) meets the requirements applicable

25 under section 201—
33

Title II, Subtitle A

•HR 1345 PCS

1 (i) the Authority shall approve the fi2 nancial plan and budget and shall provide

3 the Mayor, the Council, the President, and

4 Congress with a notice certifying its ap5 proval; and

6 (ii) the Mayor shall promptly submit

7 the financial plan and budget to the Coun8 cil pursuant to section 442 of the District

9 of Columbia Self-Government and Govern10 mental Reorganization Act.

11 (B) DEEMED APPROVAL AFTER 30 DAYS.—

12 (i) IN GENERAL.—If the Authority

13 has not provided the Mayor, the Council,

14 and Congress with a notice certifying ap15 proval under subparagraph (A)(i) or a

16 statement of disapproval under subsection

17 (d)(1) upon the expiration of the 30-day

18 period which begins on the date the Au19 thority receives the financial plan and

20 budget from the Mayor under subsection

21 (a), the Authority shall be deemed to have

22 approved the financial plan and budget

23 and to have provided the Mayor, the Coun24 cil, the President, and Congress with the
34

Title II, Subtitle A

•HR 1345 PCS

1 notice certifying approval described in sub2 paragraph (A)(i).

3 (ii) EXPLANATION OF FAILURE TO

4 RESPOND.—If clause (i) applies with re5 spect to a financial plan and budget, the

6 Authority shall provide the Mayor, the

7 Council, the President and Congress with

8 an explanation for its failure to provide the

9 notice certifying approval or the statement

10 of disapproval during the 30-day period de11 scribed in such clause.

12 (2) ADOPTION OF FINANCIAL PLAN AND BUDG13 ET BY COUNCIL AFTER RECEIPT OF APPROVED FI14 NANCIAL PLAN AND BUDGET.—Notwithstanding the

15 first sentence of section 446 of the District of Co16 lumbia Self-Government and Governmental Reorga17 nization Act, not later than 30 days after receiving

18 the financial plan and budget for the fiscal year

19 from the Mayor under paragraph (1)(A)(ii), the

20 Council shall by Act adopt a financial plan and

21 budget for the fiscal year which shall serve as the

22 adoption of the budgets of the District government

23 for the fiscal year under such section, and shall sub24 mit such financial plan and budget to the Mayor and

25 the Authority.
35

Title II, Subtitle A

•HR 1345 PCS

1 (3) REVIEW OF COUNCIL FINANCIAL PLAN AND

2 BUDGET BY AUTHORITY.—Upon receipt of the finan3 cial plan and budget for a fiscal year from the Coun4 cil under paragraph (2) (taking into account any

5 items or provisions disapproved by the Mayor or dis6 approved by the Mayor and reenacted by the Council

7 under section 404(f) of the District of Columbia

8 Self-Government and Governmental Reorganization

9 Act, as amended by subsection (f)(2)), the Authority

10 shall promptly review the financial plan and budget.

11 In conducting the review, the Authority may request

12 any additional information it considers necessary

13 and appropriate to carry out its duties under this

14 subtitle.

15 (4) RESULTS OF AUTHORITY REVIEW OF COUN16 CIL’S INITIAL FINANCIAL PLAN AND BUDGET.—

17 (A) APPROVAL OF COUNCIL’S INITIAL FI18 NANCIAL PLAN AND BUDGET.—If the Authority

19 determines that the financial plan and budget

20 for the fiscal year submitted by the Council

21 under paragraph (2) meets the requirements

22 applicable under section 201—

23 (i) the Authority shall approve the fi24 nancial plan and budget and shall provide

25 the Mayor, the Council, the President, and
36

Title II, Subtitle A

•HR 1345 PCS

1 Congress with a notice certifying its ap2 proval; and

3 (ii) the Council shall promptly submit

4 the financial plan and budget to the Mayor

5 for transmission to the President and Con6 gress under section 446 of the District of

7 Columbia Self-Government and Govern8 mental Reorganization Act.

9 (B) DISAPPROVAL OF COUNCIL’S INITIAL

10 BUDGET.—If the Authority determines that the

11 financial plan and budget for the fiscal year

12 submitted by the Council under paragraph (2)

13 does not meet the requirements applicable

14 under section 201, the Authority shall dis15 approve the financial plan and budget, and

16 shall provide the Mayor, the Council, the Presi17 dent, and Congress with a statement contain18 ing—

19 (i) the reasons for such disapproval;

20 (ii) the amount of any shortfall in the

21 budget or financial plan; and

22 (iii) any recommendations for revi23 sions to the budget the Authority considers

24 appropriate to ensure that the budget is
37

Title II, Subtitle A

•HR 1345 PCS

1 consistent with the financial plan and

2 budget.

3 (C) DEEMED APPROVAL AFTER 15 DAYS.—

4 (i) IN GENERAL.—If the Authority

5 has not provided the Mayor, the Council,

6 the President, and Congress with a notice

7 certifying approval under subparagraph

8 (A)(i) or a statement of disapproval under

9 subparagraph (B) upon the expiration of

10 the 15-day period which begins on the date

11 the Authority receives the financial plan

12 and budget from the Council under para13 graph (2), the Authority shall be deemed

14 to have approved the financial plan and

15 budget and to have provided the Mayor,

16 the Council, the President, and Congress

17 with the notice certifying approval de18 scribed in subparagraph (A)(i).

19 (ii) EXPLANATION OF FAILURE TO

20 RESPOND.—If clause (i) applies with re21 spect to a financial plan and budget, the

22 Authority shall provide the Mayor, the

23 Council, the President and Congress with

24 an explanation for its failure to provide the

25 notice certifying approval or the statement
38

Title II, Subtitle A

•HR 1345 PCS

1 of disapproval during the 15-day period de2 scribed in such clause.

3 (5) AUTHORITY REVIEW OF COUNCIL’S REVISED

4 FINANCIAL PLAN AND BUDGET.—

5 (A) SUBMISSION OF COUNCIL’S REVISED

6 FINANCIAL PLAN AND BUDGET.—Not later than

7 15 days after receiving the statement from the

8 Authority under paragraph (4)(B), the Council

9 shall promptly by Act adopt a revised financial

10 plan and budget for the fiscal year which ad11 dresses the reasons for the Authority’s dis12 approval cited in the statement, and shall sub13 mit such financial plan and budget to the

14 Mayor and the Authority.

15 (B) APPROVAL OF COUNCIL’S REVISED FI16 NANCIAL PLAN AND BUDGET.—If, after review17 ing the revised financial plan and budget for a

18 fiscal year submitted by the Council under sub19 paragraph (A) in accordance with the proce20 dures described in this subsection, the Author21 ity determines that the revised financial plan

22 and budget meets the requirements applicable

23 under section 201—

24 (i) the Authority shall approve the fi25 nancial plan and budget and shall provide
39

Title II, Subtitle A

•HR 1345 PCS

1 the Mayor, the Council, the President, and

2 Congress with a notice certifying its ap3 proval; and

4 (ii) the Council shall promptly submit

5 the financial plan and budget to the Mayor

6 for transmission to the President and Con7 gress under section 446 of the District of

8 Columbia Self-Government and Govern9 mental Reorganization Act.

10 (C) DISAPPROVAL OF COUNCIL’S REVISED

11 FINANCIAL PLAN AND BUDGET.—

12 (i) IN GENERAL.—If, after reviewing

13 the revised financial plan and budget for a

14 fiscal year submitted by the Council under

15 subparagraph (A) in accordance with the

16 procedures described in this subsection, the

17 Authority determines that the revised fi18 nancial plan and budget does not meet the

19 applicable requirements under section 201,

20 the Authority shall—

21 (I) disapprove the financial plan

22 and budget;

23 (II) provide the Mayor, the

24 Council, the President, and Congress

25 with a statement containing the rea-
40

Title II, Subtitle A

•HR 1345 PCS

1 sons for such disapproval and describ2 ing the amount of any shortfall in the

3 financial plan and budget; and

4 (III) approve and recommend a

5 financial plan and budget for the Dis6 trict government which meets the ap7 plicable requirements under section

8 201, and submit such financial plan

9 and budget to the Mayor, the Council,

10 the President, and Congress.

11 (ii) TRANSMISSION OF REJECTED FI12 NANCIAL PLAN AND BUDGET.—The Coun13 cil shall promptly submit the revised finan14 cial plan and budget disapproved by the

15 Authority under this subparagraph to the

16 Mayor for transmission to the President

17 and Congress under section 446 of the

18 District of Columbia Self-Government and

19 Governmental Reorganization Act.

20 (D) DEEMED APPROVAL AFTER 15 DAYS.—

21 (i) IN GENERAL.—If the Authority

22 has not provided the Mayor, the Council,

23 the President, and Congress with a notice

24 certifying approval under subparagraph

25 (B)(i) or a statement of disapproval under
41

Title II, Subtitle A

•HR 1345 PCS

1 subparagraph (C) upon the expiration of

2 the 15-day period which begins on the date

3 the Authority receives the revised financial

4 plan and budget submitted by the Council

5 under subparagraph (A), the Authority

6 shall be deemed to have approved the re7 vised financial plan and budget and to

8 have provided the Mayor, the Council, the

9 President, and Congress with the notice

10 certifying approval described in subpara11 graph (B)(i).

12 (ii) EXPLANATION OF FAILURE TO

13 RESPOND.—If clause (i) applies with re14 spect to a financial plan and budget, the

15 Authority shall provide the Mayor, the

16 Council, the President and Congress with

17 an explanation for its failure to provide the

18 notice certifying approval or the statement

19 of disapproval during the 15-day period de20 scribed in such clause.

21 (6) DEADLINE FOR TRANSMISSION OF FINAN22 CIAL PLAN AND BUDGET BY AUTHORITY.—Notwith23 standing any other provision of this section, not

24 later than the June 15 preceding each fiscal year

25 which is a control year, the Authority shall—
42

Title II, Subtitle A

•HR 1345 PCS

1 (A) provide Congress with a notice certify2 ing its approval of the Council’s initial financial

3 plan and budget for the fiscal year under para4 graph (4)(A);

5 (B) provide Congress with a notice certify6 ing its approval of the Council’s revised finan7 cial plan and budget for the fiscal year under

8 paragraph (5)(B); or

9 (C) submit to Congress an approved and

10 recommended financial plan and budget of the

11 Authority for the District government for the

12 fiscal year under paragraph (5)(C).

13 (d) ACTION UPON DISAPPROVAL OF MAYOR’S PRE14 LIMINARY FINANCIAL PLAN AND BUDGET.—

15 (1) STATEMENT OF DISAPPROVAL.—If the Au16 thority determines that the financial plan and budg17 et for the fiscal year submitted by the Mayor under

18 subsection (a) does not meet the requirements appli19 cable under section 201, the Authority shall dis20 approve the financial plan and budget, and shall

21 provide the Mayor and the Council with a statement

22 containing—

23 (A) the reasons for such disapproval;

24 (B) the amount of any shortfall in the fi25 nancial plan and budget; and
43

Title II, Subtitle A

•HR 1345 PCS

1 (C) any recommendations for revisions to

2 the financial plan and budget the Authority

3 considers appropriate to ensure that the finan4 cial plan and budget meets the requirements

5 applicable under section 201.

6 (2) AUTHORITY REVIEW OF MAYOR’S REVISED

7 FINANCIAL PLAN AND BUDGET.—

8 (A) SUBMISSION OF MAYOR’S REVISED FI9 NANCIAL PLAN AND BUDGET.—Not later than

10 15 days after receiving the statement from the

11 Authority under paragraph (1), the Mayor shall

12 promptly submit to the Authority and the

13 Council a revised financial plan and budget for

14 the fiscal year which addresses the reasons for

15 the Authority’s disapproval cited in the state16 ment.

17 (B) APPROVAL OF MAYOR’S REVISED FI18 NANCIAL PLAN AND BUDGET.—If the Authority

19 determines that the revised financial plan and

20 budget for the fiscal year submitted by the

21 Mayor under subparagraph (A) meets the re22 quirements applicable under section 201—

23 (i) the Authority shall approve the fi24 nancial plan and budget and shall provide

25 the Mayor, the Council, the President, and
44

Title II, Subtitle A

•HR 1345 PCS

1 Congress with a notice certifying its ap2 proval; and

3 (ii) the Mayor shall promptly submit

4 the financial plan and budget to the Coun5 cil pursuant to section 442 of the District

6 of Columbia Self-Government and Govern7 mental Reorganization Act.

8 (C) DISAPPROVAL OF MAYOR’S REVISED

9 FINANCIAL PLAN AND BUDGET.—

10 (i) IN GENERAL.—If the Authority de11 termines that the revised financial plan

12 and budget for the fiscal year submitted by

13 the Mayor under subparagraph (A) does

14 not meet the requirements applicable under

15 section 201, the Authority shall—

16 (I) disapprove the financial plan

17 and budget;

18 (II) shall provide the Mayor, the

19 Council, the President, and Congress

20 with a statement containing the rea21 sons for such disapproval; and

22 (III) recommend a financial plan

23 and budget for the District govern24 ment which meets the requirements

25 applicable under section 201 and sub-
45

Title II, Subtitle A

•HR 1345 PCS

1 mit such financial plan and budget to

2 the Mayor and the Council.

3 (ii) SUBMISSION OF REJECTED FINAN4 CIAL PLAN AND BUDGET.—The Mayor

5 shall promptly submit the revised financial

6 plan and budget disapproved by the Au7 thority under this subparagraph to the

8 Council pursuant to section 442 of the

9 District of Columbia Self-Government and

10 Governmental Reorganization Act.

11 (D) DEEMED APPROVAL AFTER 15 DAYS.—

12 (i) IN GENERAL.—If the Authority

13 has not provided the Mayor, the Council,

14 the President, and Congress with a notice

15 certifying approval under subparagraph

16 (B)(i) or a statement of disapproval under

17 subparagraph (C) upon the expiration of

18 the 15-day period which begins on the date

19 the Authority receives the revised financial

20 plan and budget submitted by the Mayor

21 under subparagraph (A), the Authority

22 shall be deemed to have approved the re23 vised financial plan and budget and to

24 have provided the Mayor, the Council, the

25 President, and Congress with the notice
46

Title II, Subtitle A

•HR 1345 PCS

1 certifying approval described in subpara2 graph (B)(i).

3 (ii) EXPLANATION OF FAILURE TO

4 RESPOND.—If clause (i) applies with re5 spect to a financial plan and budget, the

6 Authority shall provide the Mayor, the

7 Council, the President and Congress with

8 an explanation for its failure to provide the

9 notice certifying approval or the statement

10 of disapproval during the 15-day period de11 scribed in such clause.

12 (3) ACTION BY COUNCIL.—

13 (A) ADOPTION OF FINANCIAL PLAN AND

14 BUDGET.—Notwithstanding the first sentence

15 of section 446 of the District of Columbia Self16 Government and Governmental Reorganization

17 Act, not later than 30 days after receiving the

18 Mayor’s approved revised financial plan and

19 budget for the fiscal year under paragraph

20 (2)(B) or (in the case of a financial plan and

21 budget disapproved by the Authority) the finan22 cial plan and budget recommended by the Au23 thority under paragraph (2)(C)(i)(III), the

24 Council shall by Act adopt a financial plan and

25 budget for the fiscal year which shall serve as
47

Title II, Subtitle A

•HR 1345 PCS

1 the adoption of the budgets of the District gov2 ernment for the fiscal year under such section,

3 and shall submit the financial plan and budget

4 to the Mayor and the Authority.

5 (B) REVIEW BY AUTHORITY.—The finan6 cial plan and budget submitted by the Council

7 under subparagraph (A) shall be subject to re8 view by the Authority and revision by the Coun9 cil in the same manner as the financial plan

10 and budget submitted by the Council after an

11 approved preliminary financial plan and budget

12 of the Mayor under paragraphs (3), (4), (5),

13 and (6) of subsection (c).

14 (e) REVISIONS TO FINANCIAL PLAN AND BUDGET.—

15 (1) PERMITTING MAYOR TO SUBMIT REVI16 SIONS.—The Mayor may submit proposed revisions

17 to the financial plan and budget for a control year

18 to the Authority at any time during the year.

19 (2) PROCESS FOR REVIEW, APPROVAL, DIS20 APPROVAL, AND COUNCIL ACTION.—Except as pro21 vided in paragraph (3), the procedures described in

22 subsections (b), (c), and (d) shall apply with respect

23 to a proposed revision to a financial plan and budget

24 in the same manner as such procedures apply with

25 respect to the original financial plan and budget, ex-
48

Title II, Subtitle A

•HR 1345 PCS

1 cept that subparagraph (B) of subsection (c)(1) (re2 lating to deemed approval by the Authority of a pre3 liminary financial plan and budget of the Mayor)

4 shall be applied as if the reference to the term ‘‘30-

5 day period’’ were a reference to ‘‘20-day period’’.

6 (3) EXCEPTION FOR REVISIONS NOT AFFECT7 ING APPROPRIATIONS.—To the extent that a pro8 posed revision to a financial plan and budget adopt9 ed by the Council pursuant to this subsection does

10 not increase the amount of spending with respect to

11 any account of the District government, the revision

12 shall become effective upon the Authority’s approval

13 of such revision (subject to review by Congress

14 under section 602(c) of the District of Columbia

15 Self-Government and Governmental Reorganization

16 Act).

17 (f) CONFORMING AMENDMENT TO BUDGET PROCESS

18 REQUIREMENTS UNDER HOME RULE ACT.—

19 (1) SUBMISSION OF UNBALANCED BUDGETS.—

20 Section 603 of the District of Columbia Self-Govern21 ment and Governmental Reorganization Act (sec.

22 47–313, D.C. Code) is amended—

23 (A) in subsection (c), by striking ‘‘The

24 Council’’ the first place it appears and inserting
49

Title II, Subtitle A

•HR 1345 PCS

1 ‘‘Except as provided in subsection (f), the

2 Council’’;

3 (B) in subsection (d), by striking ‘‘The

4 Mayor’’ and inserting ‘‘Except as provided in

5 subsection (f), the Mayor’’; and

6 (C) by adding at the end the following new

7 subsection:

8 ‘‘(f) In the case of a fiscal year which is a control

9 year (as defined in section 305(4) of the District of Co10 lumbia Financial Responsibility and Management Assist11 ance Act of 1995)—

12 ‘‘(1) subsection (c) (other than the fourth sen13 tence) and subsection (d) shall not apply; and

14 ‘‘(2) the Council may not approve, and the

15 Mayor may not forward to the President, any budget

16 which is not consistent with the financial plan and

17 budget established for the fiscal year under subtitle

18 A of title II of such Act.’’.

19 (2) EXPEDITED PROCEDURES FOR DIS20 APPROVAL OF ITEMS AND PROVISIONS OF COUNCIL

21 BUDGET BY MAYOR.—Section 404(f) of the District

22 of Columbia Self-Government and Governmental Re23 organization Act (sec. 1–227(f), D.C. Code) is

24 amended by adding at the end the following new

25 sentence: ‘‘In the case of any budget act for a fiscal
50

Title II, Subtitle A

•HR 1345 PCS

1 year which is a control year (as defined in section

2 305(4) of the District of Columbia Financial Re3 sponsibility and Management Assistance Act of

4 1995), this subsection shall apply as if the reference

5 in the second sentence to ‘ten-day period’ were a ref6 erence to ‘five-day period’ and the reference in the

7 third sentence to ‘thirty calendar days’ were a ref8 erence to ‘5 calendar days’.’’.

9 (g) PERMITTING MAYOR AND COUNCIL TO SPECIFY

10 EXPENDITURES UNDER SCHOOL BOARD BUDGET DUR11 ING CONTROL YEAR.—

12 (1) MAYOR’S ESTIMATE INCLUDED IN ANNUAL

13 FINANCIAL PLAN AND BUDGET.—Section 2(h) of the

14 Act entitled ‘‘An Act to fix and regulate the salaries

15 of teachers, school officers, and other employees of

16 the board of education of the District of Columbia’’,

17 approved June 20, 1906 (sec. 31–103, D.C. Code)

18 is amended by striking the period at the end and in19 serting the following: ‘‘, except that in the case of

20 a year which is a control year (as defined in section

21 305(4) of the District of Columbia Financial Re22 sponsibility and Management Assistance Act of

23 1995), the Mayor shall transmit the same together

24 with the Mayor’s own request for the amount of

25 money required for the public schools for the year.’’.
51

Title II, Subtitle A

•HR 1345 PCS

1 (2) SPECIFICATION OF EXPENDITURES.—Sec2 tion 452 of the District of Columbia Self-Govern3 ment and Governmental Reorganization Act (sec.

4 31–104, D.C. Code) is amended by adding at the

5 end the following new sentence: ‘‘This section shall

6 not apply with respect to the annual budget for any

7 fiscal year which is a control year (as defined in sec8 tion 305(4) of the District of Columbia Financial

9 Responsibility and Management Assistance Act of

10 1995).’’.

11 (h) PERMITTING SEPARATION OF EMPLOYEES IN AC12 CORDANCE WITH FINANCIAL PLAN AND BUDGET.—The

13 fourth sentence of section 422(3) of the District of Colum14 bia Self-Government and Governmental Reorganization

15 Act (sec. 1–242(3), D.C. Code) is amended by striking

16 ‘‘pursuant to procedures’’ and all that follows through

17 ‘‘Act of 1991’’ and inserting the following: ‘‘in the imple18 mentation of a financial plan and budget for the District

19 government approved under subtitle A of title II of the

20 District of Columbia Financial Responsibility and Man21 agement Assistance Act of 1995’’.

22 SEC. 203. REVIEW OF ACTIVITIES OF DISTRICT GOVERN23 MENT TO ENSURE COMPLIANCE WITH AP24 PROVED FINANCIAL PLAN AND BUDGET.

25 (a) REVIEW OF COUNCIL ACTS.—
52

Title II, Subtitle A

•HR 1345 PCS

1 (1) SUBMISSION OF ACTS TO AUTHORITY.—The

2 Council shall submit to the Authority each Act

3 passed by the Council and signed by the Mayor dur4 ing a control year or vetoed by the Mayor and re5 passed by two-thirds of the Council present and vot6 ing during a control year, and each Act passed by

7 the Council and allowed to become effective without

8 the Mayor’s signature during a control year, to9 gether with the estimate of costs accompanying such

10 Act required under section 602(c)(3) of the District

11 of Columbia Self-Government and Governmental Re12 organization Act (as added by section 301(d)).

13 (2) PROMPT REVIEW BY AUTHORITY.—Upon re14 ceipt of an Act from the Council under paragraph

15 (1), the Authority shall promptly review the Act to

16 determine whether it is consistent with the applica17 ble financial plan and budget approved under this

18 subtitle and with the estimate of costs accompanying

19 the Act (described in paragraph (1)).

20 (3) ACTIONS BY AUTHORITY.—

21 (A) APPROVAL.—Except as provided in

22 subparagraph (C), if the Authority determines

23 that an Act is consistent with the applicable fi24 nancial plan and budget, the Authority shall no25 tify the Council that it approves the Act, and
53

Title II, Subtitle A

•HR 1345 PCS

1 the Council shall submit the Act to Congress

2 for review in accordance with section 602(c) of

3 the District of Columbia Self-Government and

4 Governmental Reorganization Act.

5 (B) FINDING OF INCONSISTENCY.—Except

6 as provided in subparagraph (C), if the Author7 ity determines that an Act is significantly in8 consistent with the applicable financial plan and

9 budget, the Authority shall—

10 (i) notify the Council that of its find11 ing;

12 (ii) provide the Council with an expla13 nation of the reasons for its finding; and

14 (iii) to the extent the Authority con15 siders appropriate, provide the Council

16 with recommendations for modifications to

17 the Act.

18 (C) EXCEPTION FOR EMERGENCY ACTS.—

19 Subparagraphs (A) and (B) shall not apply

20 with respect to any act which the Council deter21 mines according to section 412(a) of the Dis22 trict of Columbia Self-Government and Govern23 mental Reorganization Act should take effect

24 immediately because of emergency cir25 cumstances.
54

Title II, Subtitle A

•HR 1345 PCS

1 (4) EFFECT OF FINDING.—If the Authority

2 makes a finding with respect to an Act under para3 graph (3)(B), the Council may not submit the Act

4 to Congress for review in accordance with section

5 602(c) of the District of Columbia Self-Government

6 and Governmental Reorganization Act.

7 (5) DEEMED APPROVAL.—If the Authority does

8 not notify the Council that it approves or dis9 approves an Act submitted under this subsection

10 during the 7-day period which begins on the date the

11 Council submits the Act to the Authority, the Au12 thority shall be deemed to have approved the Act in

13 accordance with paragraph (3)(A). At the option of

14 the Authority, the previous sentence shall be applied

15 as if the reference to ‘‘7-day period’’ were a ref16 erence to ‘‘14-day period’’ if during such 7-day pe17 riod the Authority so notifies the Council and the

18 Mayor.

19 (6) PRELIMINARY REVIEW OF PROPOSED

20 ACTS.—At the request of the Council, the Authority

21 may conduct a preliminary review of proposed legis22 lation before the Council to determine whether the

23 legislation as proposed would be consistent with the

24 applicable financial plan and budget approved under

25 this subtitle, except that any such preliminary review
55

Title II, Subtitle A

•HR 1345 PCS

1 shall not be binding on the Authority in reviewing

2 any Act subsequently submitted under this sub3 section.

4 (b) EFFECT OF APPROVED FINANCIAL PLAN AND

5 BUDGET ON CONTRACTS AND LEASES.—

6 (1) MANDATORY PRIOR APPROVAL FOR CER7 TAIN CONTRACTS AND LEASES.—

8 (A) IN GENERAL.—In the case of a con9 tract or lease described in subparagraph (B)

10 which is proposed to be entered into by the Dis11 trict government during a control year, the

12 Mayor (or the appropriate officer or agent of

13 the District government) shall submit the pro14 posed contract or lease to the Authority. The

15 Authority shall review each contract or lease

16 submitted under this subparagraph, and the

17 Mayor (or the appropriate officer or agent of

18 the District government) may not enter into the

19 contract or lease unless the Authority deter20 mines that the proposed contract or lease is

21 consistent with the financial plan and budget

22 for the fiscal year.

23 (B) CONTRACTS AND LEASES DE24 SCRIBED.—A contract or lease described in this

25 subparagraph is—
56

Title II, Subtitle A

•HR 1345 PCS

1 (i) a labor contract entered into

2 through collective bargaining; or

3 (ii) such other type of contract or

4 lease as the Authority may specify for pur5 poses of this subparagraph.

6 (2) AUTHORITY TO REVIEW OTHER CONTRACTS

7 AND LEASES AFTER EXECUTION.—

8 (A) IN GENERAL.—In addition to the prior

9 approval of certain contracts and leases under

10 paragraph (1), the Authority may require the

11 Mayor (or the appropriate officer or agent of

12 the District government) to submit to the Au13 thority any other contract (including a contract

14 to carry out a grant) or lease entered into by

15 the District government during a control year

16 which is executed after the Authority has ap17 proved the financial plan and budget for the

18 year under section 202(c) or 202(d), or any

19 proposal of the District government to renew,

20 extend, or modify a contract or lease during a

21 control year which is made after the Authority

22 has approved such financial plan and budget.

23 (B) REVIEW BY AUTHORITY.—The Author24 ity shall review each contract or lease submitted

25 under subparagraph (A) to determine if the
57

Title II, Subtitle A

•HR 1345 PCS

1 contract or lease is consistent with the financial

2 plan and budget for the fiscal year. If the Au3 thority determines that the contract or lease is

4 not consistent with the financial plan and budg5 et, the Mayor shall take such actions as are

6 within the Mayor’s powers to revise the contract

7 or lease, or shall submit a proposed revision to

8 the financial plan and budget in accordance

9 with section 202(e), so that the contract or

10 lease will be consistent with the financial plan

11 and budget.

12 (3) SPECIAL RULE FOR FISCAL YEAR 1995.—

13 The Authority may require the Mayor to submit to

14 the Authority any proposal to renew, extend, or

15 modify a contract or lease in effect during fiscal

16 year 1995 to determine if the renewal, extension, or

17 modification is consistent with the budget for the

18 District of Columbia under the District of Columbia

19 Appropriations Act, 1995.

20 (4) SPECIAL RULE FOR CONTRACTS SUBJECT

21 TO COUNCIL APPROVAL.—In the case of a contract

22 or lease which is required to be submitted to the Au23 thority under this subsection and which is subject to

24 approval by the Council under the laws of the Dis25 trict of Columbia, the Mayor shall submit such con-
58

Title II, Subtitle A

•HR 1345 PCS

1 tract or lease to the Authority only after the Council

2 has approved the contract or lease.

3 (c) RESTRICTIONS ON REPROGRAMMING OF

4 AMOUNTS IN BUDGET DURING CONTROL YEARS.—

5 (1) SUBMISSIONS OF REQUESTS TO AUTHOR6 ITY.—If the Mayor submits a request to the Council

7 for the reprogramming of any amounts provided in

8 a budget for a fiscal year which is a control year

9 after the budget is adopted by the Council, the

10 Mayor shall submit such request to the Authority,

11 which shall analyze the affect of the proposed re12 programming on the financial plan and budget for

13 the fiscal year and submit its analysis to the Council

14 not later than 15 days after receiving the request.

15 (2) NO ACTION PERMITTED UNTIL ANALYSIS

16 RECEIVED.—The Council may not adopt a re17 programming during a fiscal year which is a control

18 year, and no officer or employee of the District gov19 ernment may carry out any reprogramming during

20 such a year, until the Authority has provided the

21 Council with an analysis of a request for the re22 programming in accordance with paragraph (1).

23 SEC. 204. RESTRICTIONS ON BORROWING BY DISTRICT

24 DURING CONTROL YEAR.

25 (a) PRIOR APPROVAL REQUIRED.—
59

Title II, Subtitle A

•HR 1345 PCS

1 (1) IN GENERAL.—The District government

2 may not borrow money during a control year unless

3 the Authority provides prior certification that both

4 the receipt of funds through such borrowing and the

5 repayment of obligations incurred through such bor6 rowing are consistent with the financial plan and

7 budget for the year.

8 (2) REVISIONS TO FINANCIAL PLAN AND BUDG9 ET PERMITTED.—If the Authority determines that

10 the borrowing proposed to be undertaken by the Dis11 trict government is not consistent with the financial

12 plan and budget, the Mayor may submit to the Au13 thority a proposed revision to the financial plan and

14 budget in accordance with section 202(e) so that the

15 borrowing will be consistent with the financial plan

16 and budget as so revised.

17 (3) BORROWING DESCRIBED.—This subsection

18 shall apply with respect to any borrowing under19 taken by the District government, including borrow20 ing through the issuance of bonds under part E of

21 title IV of the District of Columbia Self-Government

22 and Governmental Reorganization Act, the exercise

23 of authority to obtain funds from the United States

24 Treasury under title VI of the District of Columbia
60

Title II, Subtitle A

•HR 1345 PCS

1 Revenue Act of 1939 (sec. 47–3401, D.C. Code), or

2 any other means.

3 (4) SPECIAL RULES FOR TREASURY BORROWING

4 DURING FISCAL YEAR 1995.—

5 (A) NO PRIOR APPROVAL REQUIRED DUR6 ING INITIAL PERIOD FOLLOWING APPOINT7 MENT.—The District government may requisi8 tion advances from the United States Treasury

9 under title VI of the District of Columbia Reve10 nue Act of 1939 (sec. 47–3401, D.C. Code)

11 without the prior approval of the Authority dur12 ing the 45-day period which begins on the date

13 of the appointment of the members of the Au14 thority (subject to the restrictions described in

15 such title, as amended by subsection (c)).

16 (B) CRITERIA FOR APPROVAL DURING RE17 MAINDER OF FISCAL YEAR.—The District gov18 ernment may requisition advances described in

19 subparagraph (A) during the portion of fiscal

20 year 1995 occurring after the expiration of the

21 45-day period described in such subparagraph if

22 the Authority finds that—

23 (i) such borrowing is appropriate to

24 meet the needs of the District government
61

Title II, Subtitle A

•HR 1345 PCS

1 to reduce deficits and discharge payment

2 obligations; and

3 (ii) the District government is making

4 appropriate progress toward meeting its

5 responsibilities under this Act (and the

6 amendments made by this Act).

7 (b) DEPOSIT OF FUNDS OBTAINED THROUGH

8 TREASURY WITH AUTHORITY.—

9 (1) AUTOMATIC DEPOSIT DURING CONTROL

10 YEAR.—If the Mayor requisitions funds from the

11 Secretary of the Treasury pursuant to title VI of the

12 District of Columbia Revenue Act of 1939 (sec. 47–

13 3401, D.C. Code) during a control year (beginning

14 with fiscal year 1996), such funds shall be deposited

15 by the Secretary into an escrow account held by the

16 Authority, to be used as follows:

17 (A) The Authority shall expend a portion

18 of the funds for its operations during the fiscal

19 year in which the funds are requisitioned, in

20 such amount and under such conditions as are

21 established under the budget of the Authority

22 for the fiscal year under section 106(a).

23 (B) The Authority shall allocate the re24 mainder of such funds to the Mayor at such in25 tervals and in accordance with such terms and
62

Title II, Subtitle A

•HR 1345 PCS

1 conditions as it considers appropriate, consist2 ent with the financial plan and budget for the

3 year and with any other withholding of funds

4 by the Authority pursuant to this Act.

5 (2) OPTIONAL DEPOSIT DURING FISCAL YEAR

6 1995.—

7 (A) DURING INITIAL PERIOD FOLLOWING

8 APPOINTMENT.—If the Mayor requisitions

9 funds described in paragraph (1) during the 45-

10 day period which begins on the date of the ap11 pointment of the members of the Authority, the

12 Secretary of the Treasury shall notify the Au13 thority, and at the request of the Authority

14 shall deposit such funds into an escrow account

15 held by the Authority in accordance with para16 graph (1).

17 (B) DURING REMAINDER OF FISCAL

18 YEAR.—If the Mayor requisitions funds de19 scribed in paragraph (1) during the portion of

20 fiscal year 1995 occurring after the expiration

21 of the 45-day period described in subparagraph

22 (A), the Secretary of the Treasury shall deposit

23 such funds into an escrow account held by the

24 Authority in accordance with paragraph (1) at

25 the request of the Authority.
63

Title II, Subtitle A

•HR 1345 PCS

1 (c) CONDITIONS ON REQUISITIONS FROM TREAS2 URY.—Title VI of the District of Columbia Revenue Act

3 of 1939 (sec. 47–3401, D.C. Code) is amended by striking

4 all after the heading and inserting the following:

5 ‘‘SEC. 601. TRANSITIONAL PROVISION FOR SHORT-TERM

6 ADVANCES.

7 ‘‘(a) TRANSITIONAL SHORT-TERM ADVANCES MADE

8 BEFORE OCTOBER 1, 1995.—

9 ‘‘(1) IN GENERAL.—If the conditions in para10 graph (2) are satisfied, the Secretary shall make an

11 advance of funds from time to time, out of any

12 money in the Treasury not otherwise appropriated,

13 for the purpose of assisting the District government

14 in meeting its general expenditures, as authorized by

15 Congress.

16 ‘‘(2) CONDITIONS TO MAKING ANY TRANSI17 TIONAL SHORT-TERM ADVANCE BEFORE OCTOBER 1,

18 1995.—The Secretary shall make an advance under

19 this subsection if the following conditions are satis20 fied:

21 ‘‘(A) the Mayor delivers to the Secretary a

22 requisition for an advance under this section;

23 ‘‘(B) as of the date on which the

24 requisitioned advance is to be made, the Au25 thority has not approved a financial plan and
64

Title II, Subtitle A

•HR 1345 PCS

1 budget for the District government as meeting

2 the requirements of the District of Columbia

3 Financial Responsibility and Management As4 sistance Act of 1995;

5 ‘‘(C) the date on which the requisitioned

6 advance is to be made is not later than Septem7 ber 30, 1995;

8 ‘‘(D) the District government has delivered

9 to the Secretary—

10 ‘‘(i) a schedule setting forth the an11 ticipated timing and amounts of req12 uisitions for advances under this sub13 section; and

14 ‘‘(ii) evidence demonstrating to the

15 satisfaction of the Secretary that the Dis16 trict government is effectively unable to ob17 tain credit in the public credit markets or

18 elsewhere in sufficient amounts and on suf19 ficiently reasonable terms to meet the Dis20 trict government’s financing needs;

21 ‘‘(E) the Secretary determines that there is

22 reasonable assurance of reimbursement for the

23 advance from the amount authorized to be ap24 propriated as the annual Federal payment to

25 the District of Columbia under title V of the
65

Title II, Subtitle A

•HR 1345 PCS

1 District of Columbia Self-Government and Gov2 ernmental Reorganization Act for the fiscal

3 year ending September 30, 1996; and

4 ‘‘(F) except during the 45-day period be5 ginning on the date of the appointment of the

6 members of the Authority, the Authority makes

7 the findings described in section 204(a)(4)(B)

8 of the District of Columbia Financial Respon9 sibility and Management Assistance Act of

10 1995.

11 ‘‘(3) AMOUNT OF ANY TRANSITIONAL SHORT12 TERM ADVANCE MADE BEFORE OCTOBER 1, 1995.—

13 ‘‘(A) IN GENERAL.—Except as provided in

14 subparagraph (C), if the conditions described in

15 subparagraph (B) are satisfied, each advance

16 made under this subsection shall be in the

17 amount designated by the Mayor in the Mayor’s

18 requisition for such advance, except that—

19 ‘‘(i) the total amount requisitioned

20 under this subsection during the 30-day

21 period which begins on the date of the first

22 requisition made under this subsection may

not exceed 331 23 ⁄3 percent of the fiscal year

24 1995 limit;
66

Title II, Subtitle A

•HR 1345 PCS

1 ‘‘(ii) the total amount requisitioned

2 under this subsection during the 60-day

3 period which begins on the date of the first

4 requisition made under this subsection may

not exceed 662 5 ⁄3 percent of the fiscal year

6 1995 limit; and

7 ‘‘(iii) the total amount requisitioned

8 under this subsection after the expiration

9 of the 60-day period which begins on the

10 date of the first requisition made under

11 this subsection may not exceed 100 percent

12 of the fiscal year 1995 limit.

13 ‘‘(B) CONDITIONS APPLICABLE TO DES14 IGNATED AMOUNT.—Subparagraph (A) applies

15 if the Mayor determines that the amount des16 ignated in the Mayor’s requisition for such ad17 vance is needed to accomplish the purpose de18 scribed in paragraph (1), and (except during

19 the 45-day period beginning on the date of the

20 appointment of the members of the Authority)

21 the Authority approves such amount.

22 ‘‘(C) AGGREGATE MAXIMUM AMOUNT OUT23 STANDING.—The sum of the anticipated prin24 cipal and interest requirements of all advances
67

Title II, Subtitle A

•HR 1345 PCS

1 made under this subsection may not be greater

2 than the fiscal year 1995 limit.

3 ‘‘(D) FISCAL YEAR 1995 LIMIT DE4 SCRIBED.—In this paragraph, the ‘fiscal year

5 1995 limit’ means the amount authorized to be

6 appropriated to the District of Columbia as the

7 annual Federal payment to the District of Co8 lumbia under title V of the District of Columbia

9 Self-Government and Governmental Reorga10 nization Act for the fiscal year ending Septem11 ber 30, 1995.

12 ‘‘(4) MATURITY OF ANY TRANSITIONAL SHORT13 TERM ADVANCE MADE BEFORE OCTOBER 1, 1995.—

14 ‘‘(A) IN GENERAL.—Except as provided in

15 subparagraph (B), each advance made under

16 this subsection shall mature on the date des17 ignated by the Mayor in the Mayor’s requisition

18 for such advance.

19 ‘‘(B) LATEST PERMISSIBLE MATURITY

20 DATE.—Notwithstanding subparagraph (A), the

21 maturity date for any advance made under this

22 subsection shall not be later than October 1,

23 1995.

24 ‘‘(5) INTEREST RATE.—Each advance made

25 under this subsection shall bear interest at an an-
68

Title II, Subtitle A

•HR 1345 PCS

1 nual rate equal to the rate determined by the Sec2 retary at the time that the Secretary makes such ad3 vance taking into consideration the prevailing yield

4 on outstanding marketable obligations of the United

5 States with remaining periods to maturity comparable to the maturity of such advance, plus 1 6 ⁄8 of

7 1 percent.

8 ‘‘(6) DEPOSIT OF ADVANCES.—

9 ‘‘(A) IN GENERAL.—Except as provided in

10 subparagraph (B), each advance made under

11 this subsection for the account of the District

12 government shall be deposited by the Secretary

13 into such account as is designated by the Mayor

14 in the Mayor’s requisition for such advance.

15 ‘‘(B) EXCEPTION.—Notwithstanding sub16 paragraph (A), if (in accordance with section

17 204(b)(2) of the District of Columbia Financial

18 Responsibility and Management Assistance Act

19 of 1995) the Authority delivers a letter request20 ing the Secretary to deposit all advances made

21 under this subsection for the account of the

22 District government in an escrow account held

23 by the Authority, each advance made under this

24 subsection for the account of the District gov25 ernment after the date of such letter shall be
69

Title II, Subtitle A

•HR 1345 PCS

1 deposited by the Secretary into the escrow ac2 count specified by the Authority in such letter.

3 ‘‘(b) TRANSITIONAL SHORT-TERM ADVANCES MADE

4 ON OR AFTER OCTOBER 1, 1995 AND BEFORE FEBRUARY

5 1, 1996.—

6 ‘‘(1) IN GENERAL.—If the conditions in para7 graph (2) are satisfied, the Secretary shall make an

8 advance of funds from time to time, out of any

9 money in the Treasury not otherwise appropriated,

10 for the same purpose as advances are made under

11 subsection (a).

12 ‘‘(2) TERMS AND CONDITIONS.—

13 ‘‘(A) IN GENERAL.—Except as provided in

14 subparagraph (B), paragraphs (2), (4), and (5)

15 of subsection (a) (other than subparagraph (F)

16 of paragraph (2)) shall apply to any advance

17 made under this subsection.

18 ‘‘(B) EXCEPTIONS.—

19 ‘‘(i) NEW CONDITIONS PRECEDENT TO

20 MAKING ADVANCES.—The conditions de21 scribed in subsection (a)(2) shall apply

22 with respect to making advances on or

23 after October 1, 1995, in the same manner

24 as such conditions apply with respect to
70

Title II, Subtitle A

•HR 1345 PCS

1 making advances before October 1, 1995,

2 except that—

3 ‘‘(I) subparagraph (C) (relating

4 to the last day on which advances may

5 be made) shall be applied as if the

6 reference to ‘September 30, 1995’

7 were a reference to ‘January 31,

8 1996’;

9 ‘‘(II) subparagraph (E) (relating

10 to the Secretary’s determination of

11 reasonable assurance of reimburse12 ment from the annual Federal pay13 ment appropriated to the District of

14 Columbia) shall be applied as if the

15 reference to ‘September 30, 1996’

16 were a reference to ‘September 30,

17 1997’;

18 ‘‘(III) the Secretary may not

19 make an advance under this sub20 section unless all advances made

21 under subsection (a) are fully reim22 bursed by withholding from the an23 nual Federal payment appropriated to

24 the District of Columbia for the fiscal

25 year ending September 30, 1996,
71

Title II, Subtitle A

•HR 1345 PCS

1 under title V of the District of Colum2 bia Self-Government and Govern3 mental Reorganization Act, and apply4 ing toward reimbursement for such

5 advances an amount equal to the

6 amount needed to fully reimburse the

7 Treasury for such advances; and

8 ‘‘(IV) the Secretary may not

9 make an advance under this sub10 section unless the Authority has pro11 vided the Secretary with the prior cer12 tification described in section

13 204(a)(1) of the District of Columbia

14 Financial Responsibility and Manage15 ment Assistance Act of 1995.

16 ‘‘(ii) NEW LATEST PERMISSIBLE MA17 TURITY DATE.—The provisions of sub18 section (a)(4) shall apply with respect to

19 the maturity of advances made after Octo20 ber 1, 1995, in the same manner as such

21 provisions apply with respect to the matu22 rity of advances made before October 1,

23 1995, except that subparagraph (B) of

24 such subsection (relating to the latest per25 missible maturity date) shall apply as if
72

Title II, Subtitle A

•HR 1345 PCS

1 the reference to ‘October 1, 1995’ were a

2 reference to ‘October 1, 1996’.

3 ‘‘(C) NEW MAXIMUM AMOUNT OUTSTAND4 ING.—

5 ‘‘(i) IN GENERAL.—Except as pro6 vided in clause (iii), if the conditions de7 scribed in clause (ii) are satisfied, each ad8 vance made under this subsection shall be

9 in the amount designated by the Mayor in

10 the Mayor’s requisition for such advance.

11 ‘‘(ii) CONDITIONS APPLICABLE TO

12 DESIGNATED AMOUNT.—Clause (i) applies

13 if the Mayor determines that the amount

14 designated in the Mayor’s requisition for

15 such advance is needed to accomplish the

16 purpose described in paragraph (1), and

17 the Authority approves such amount.

18 ‘‘(iii) AGGREGATE MAXIMUM AMOUNT

19 OUTSTANDING.—The sum of the antici20 pated principal and interest requirements

21 of all advances made under this paragraph

22 may not be greater than 60 percent of the

23 fiscal year 1996 limit.

24 ‘‘(D) DEPOSIT OF ADVANCES.—As pro25 vided in section 204(b) of the District of Co-
73

Title II, Subtitle A

•HR 1345 PCS

1 lumbia Financial Responsibility and Manage2 ment Assistance Act of 1995, each advance

3 made under this subsection for the account of

4 the District shall be deposited by the Secretary

5 into an escrow account held by the Authority.

6 ‘‘(E) FISCAL YEAR 1996 LIMIT DE7 SCRIBED.—In this paragraph, the ‘fiscal year

8 1996 limit’ means the amount authorized to be

9 appropriated to the District of Columbia as the

10 annual Federal payment to the District of Co11 lumbia under title V of the District of Columbia

12 Self-Government and Governmental Reorga13 nization Act for the fiscal year ending Septem14 ber 30, 1996.

15 ‘‘(c) TRANSITIONAL SHORT-TERM ADVANCES MADE

16 ON OR AFTER FEBRUARY 1, 1996, AND BEFORE OCTO17 BER 1, 1996.—

18 ‘‘(1) IN GENERAL.—If the conditions in para19 graph (2) are satisfied, the Secretary shall make an

20 advance of funds from time to time, out of any

21 money in the Treasury not otherwise appropriated,

22 for the same purpose as advances are made under

23 subsection (a).

24 ‘‘(2) TERMS AND CONDITIONS.—
74

Title II, Subtitle A

•HR 1345 PCS

1 ‘‘(A) IN GENERAL.—Except as provided in

2 subparagraph (B), subsection (b)(2) shall apply

3 to any advance made under this subsection.

4 ‘‘(B) EXCEPTIONS.—The conditions appli5 cable under subsection (b)(2) (other than para6 graph (2)(B) of subsection (a)) shall apply with

7 respect to making advances on or after Feb8 ruary 1, 1996, and before October 1, 1996, in

9 the same manner as such conditions apply to

10 making advances under such subsection, except

11 that—

12 ‘‘(i) in applying subparagraph (C) of

13 subsection (a)(2) (as described in sub14 section (b)(2)(B)(i)(I)), the reference to

15 ‘October 1, 1995’ shall be deemed to be a

16 reference to ‘September 30, 1996’;

17 ‘‘(ii) subparagraph (C)(iii) of sub18 section (b)(2) shall apply as if the ref19 erence to ‘60 percent’ were a reference to

20 ‘40 percent’; and

21 ‘‘(iii) no advance may be made unless

22 the Secretary has been provided the certifi23 cations and information described in para24 graphs (3) through (6) of section 602(b).
75

Title II, Subtitle A

•HR 1345 PCS

1 ‘‘(d) TRANSITIONAL SHORT-TERM ADVANCES MADE

2 ON OR AFTER OCTOBER 1, 1996, AND BEFORE OCTOBER

3 1, 1997.—

4 ‘‘(1) IN GENERAL.—If the conditions in para5 graph (2) are satisfied, the Secretary shall make an

6 advance of funds from time to time, out of any

7 money in the Treasury not otherwise appropriated,

8 for the same purpose as advances are made under

9 subsection (a).

10 ‘‘(2) TERMS AND CONDITIONS.—

11 ‘‘(A) IN GENERAL.—Except as provided in

12 subparagraph (B), paragraphs (2), (4), and (5)

13 of subsection (a) (other than subparagraphs

14 (B) and (F) of paragraph (2)) shall apply to

15 any advance made under this subsection.

16 ‘‘(B) EXCEPTIONS.—

17 ‘‘(i) NEW CONDITIONS PRECEDENT TO

18 MAKING ADVANCES.—The conditions de19 scribed in subsection (a)(2) shall apply

20 with respect to making advances on or

21 after October 1, 1996, and before October

22 1, 1997, in the same manner as such con23 ditions apply with respect to making ad24 vances before October 1, 1995, except

25 that—
76

Title II, Subtitle A

•HR 1345 PCS

1 ‘‘(I) subparagraph (C) (relating

2 to the last day on which advances may

3 be made) shall be applied as if the

4 reference to ‘September 30, 1995’

5 were a reference to ‘September 30,

6 1997’;

7 ‘‘(II) subparagraph (E) (relating

8 to the Secretary’s determination of

9 reasonable assurance of reimburse10 ment from the annual Federal pay11 ment appropriated to the District of

12 Columbia) shall be applied as if the

13 reference to ‘September 30, 1996’

14 were a reference to ‘September 30,

15 1997’;

16 ‘‘(III) the Secretary may not

17 make an advance under this sub18 section unless all advances made

19 under subsections (b) and (c) are fully

20 reimbursed by withholding from the

21 annual Federal payment appropriated

22 to the District of Columbia for the fis23 cal year ending September 30, 1997,

24 under title V of the District of Colum25 bia Self-Government and Govern-
77

Title II, Subtitle A

•HR 1345 PCS

1 mental Reorganization Act, and apply2 ing toward reimbursement for such

3 advances an amount equal to the

4 amount needed to fully reimburse the

5 Treasury for such advances; and

6 ‘‘(IV) the Secretary may not

7 make an advance under this sub8 section unless the Secretary has been

9 provided the certifications and infor10 mation described in paragraphs (3)

11 through (6) of section 602(b).

12 ‘‘(ii) NEW LATEST PERMISSIBLE MA13 TURITY DATE.—The provisions of sub14 section (a)(4) shall apply with respect to

15 the maturity of advances made under this

16 subsection, in the same manner as such

17 provisions apply with respect to the matu18 rity of advances made before October 1,

19 1995, except that subparagraph (B) of

20 such subsection (relating to the latest per21 missible maturity date) shall apply as if

22 the reference to ‘September 30, 1995’ were

23 a reference to ‘September 30, 1997’.

24 ‘‘(C) NEW MAXIMUM AMOUNT OUTSTAND25 ING.—
78

Title II, Subtitle A

•HR 1345 PCS

1 ‘‘(i) IN GENERAL.—Except as pro2 vided in clause (iii), if the conditions de3 scribed in clause (ii) are satisfied, each ad4 vance made under this subsection shall be

5 in the amount designated by the Mayor in

6 the Mayor’s requisition for such advance.

7 ‘‘(ii) CONDITIONS APPLICABLE TO

8 DESIGNATED AMOUNT.— Clause (i) applies

9 if the Mayor determines that the amount

10 designated in the Mayor’s requisition for

11 such advance is needed to accomplish the

12 purpose described in paragraph (1), and

13 the Authority approves such amount.

14 ‘‘(iii) AGGREGATE MAXIMUM AMOUNT

15 OUTSTANDING.—The sum of the antici16 pated principal and interest requirements

17 of all advances made under this paragraph

18 may not be greater than 100 percent of

19 the fiscal year 1997 limit.

20 ‘‘(iv) FISCAL YEAR 1997 LIMIT DE21 SCRIBED.—In this subparagraph, the ‘fis22 cal year 1997 limit’ means the amount au23 thorized to be appropriated to the District

24 of Columbia as the annual Federal pay25 ment to the District of Columbia under
79

Title II, Subtitle A

•HR 1345 PCS

1 title V of the District of Columbia Self2 Government and Governmental Reorga3 nization Act for the fiscal year ending Sep4 tember 30, 1997.

5 ‘‘(D) DEPOSIT OF ADVANCES.—As pro6 vided in section 204(b) of the District of Co7 lumbia Financial Responsibility and Manage8 ment Assistance Act of 1995, each advance

9 made under this subsection for the account of

10 the District shall be deposited by the Secretary

11 into an escrow account held by the Authority.

12 ‘‘SEC. 602. SHORT-TERM ADVANCES FOR SEASONAL CASH13 FLOW MANAGEMENT.

14 ‘‘(a) IN GENERAL.—If the conditions in subsection

15 (b) are satisfied, the Secretary shall make an advance of

16 funds from time to time, out of any money in the Treasury

17 not otherwise appropriated, for the purpose of assisting

18 the District government in meeting its general expendi19 tures, as authorized by Congress, at times of seasonal

20 cash-flow deficiencies.

21 ‘‘(b) CONDITIONS TO MAKING ANY SHORT-TERM AD22 VANCE.—The Secretary shall make an advance under this

23 section if—

24 ‘‘(1) the Mayor delivers to the Secretary a req25 uisition for an advance under this section;
80

Title II, Subtitle A

•HR 1345 PCS

1 ‘‘(2) the date on which the requisitioned ad2 vance is to be made is in a control period;

3 ‘‘(3) the Authority certifies to the Secretary

4 that—

5 ‘‘(A) the District government has prepared

6 and submitted a financial plan and budget for

7 the District government;

8 ‘‘(B) there is an approved financial plan

9 and budget in effect under the District of Co10 lumbia Financial Responsibility and Manage11 ment Assistance Act of 1995 for the fiscal year

12 for which the requisition is to be made;

13 ‘‘(C) at the time of the Mayor’s requisition

14 for an advance, the District government is in

15 compliance with the financial plan and budget;

16 ‘‘(D) both the receipt of funds from such

17 advance and the reimbursement of Treasury for

18 such advance are consistent with the financial

19 plan and budget for the year; and

20 ‘‘(E) such advance will not adversely affect

21 the financial stability of the District govern22 ment;

23 ‘‘(4) the Authority certifies to the Secretary, at

24 the time of the Mayor’s requisition for an advance,

25 that the District government is effectively unable to
81

Title II, Subtitle A

•HR 1345 PCS

1 obtain credit in the public credit markets or else2 where in sufficient amounts and on sufficiently rea3 sonable terms to meet the District government’s fi4 nancing needs;

5 ‘‘(5) the Inspector General of the District of

6 Columbia certifies to the Secretary the information

7 described in paragraph (3) by providing the Sec8 retary with a certification conducted by an outside

9 auditor under a contract entered into pursuant to

10 section 208(a)(4) of the District of Columbia Pro11 curement Practices Act of 1985;

12 ‘‘(6) the Secretary receives such additional cer13 tifications and opinions relating to the financial posi14 tion of the District government as the Secretary de15 termines to be appropriate from such other Federal

16 agencies and instrumentalities as the Secretary de17 termines to be appropriate; and

18 ‘‘(7) the Secretary determines that there is rea19 sonable assurance of reimbursement for the advance

20 from the amount authorized to be appropriated as

21 the annual Federal payment to the District of Co22 lumbia under title V of the District of Columbia

23 Self-Government and Governmental Reorganization

24 Act for the fiscal year following the fiscal year in

25 which such advance is made.
82

Title II, Subtitle A

•HR 1345 PCS

1 ‘‘(c) AMOUNT OF ANY SHORT-TERM ADVANCE.—

2 ‘‘(1) IN GENERAL.—Except as provided in para3 graph (3), if the conditions in paragraph (2) are sat4 isfied, each advance made under this section shall be

5 in the amount designated by the Mayor in the May6 or’s requisition for such advance.

7 ‘‘(2) CONDITIONS APPLICABLE TO DESIGNATED

8 AMOUNT.—Paragraph (1) applies if—

9 ‘‘(A) the Mayor determines that the

10 amount designated in the Mayor’s requisition

11 for such advance is needed to accomplish the

12 purpose described in subsection (a); and

13 ‘‘(B) the Authority—

14 ‘‘(i) concurs in the Mayor’s deter15 mination under subparagraph (A); and

16 ‘‘(ii) determines that the reimburse17 ment obligation of the District government

18 for an advance made under this section in

19 the amount designated in the Mayor’s req20 uisition is consistent with the financial

21 plan for the year.

22 ‘‘(3) MAXIMUM AMOUNT OUTSTANDING.—

23 ‘‘(A) IN GENERAL.—Notwithstanding para24 graph (1), the unpaid principal balance of all

25 advances made under this section in any fiscal
83

Title II, Subtitle A

•HR 1345 PCS

1 year of the District government shall not at any

2 time be greater than 100 percent of applicable

3 limit.

4 ‘‘(B) SPECIAL RULE FOR FISCAL YEAR

5 1997.—The unpaid principal balance of all ad6 vances made under this section in fiscal year

7 1997 of the District government shall not at

8 any time be greater than the difference be9 tween—

10 ‘‘(i) 150 percent of the applicable

11 limit for such fiscal year; and

12 ‘‘(ii) the unpaid principal balance of

13 any advances made under section 601(d).

14 ‘‘(C) APPLICABLE LIMIT DEFINED.—In

15 this paragraph, the ‘applicable limit’ for a fiscal

16 year is the amount authorized under title V of

17 the District of Columbia Self-Government and

18 Governmental Reorganization Act for appro19 priation as the Federal payment to the District

20 of Columbia for the fiscal year following the fis21 cal year in which the advance is made.

22 ‘‘(d) MATURITY OF ANY SHORT-TERM ADVANCE.—

23 ‘‘(1) IN GENERAL.—Except as provided in para24 graph (3), if the condition in paragraph (2) is satis25 fied, each advance made under this section shall ma-
84

Title II, Subtitle A

•HR 1345 PCS

1 ture on the date designated by the Mayor in the

2 Mayor’s requisition for such advance.

3 ‘‘(2) CONDITION APPLICABLE TO DESIGNATED

4 MATURITY.—Paragraph (1) applies if the Authority

5 determines that the reimbursement obligation of the

6 District government for an advance made under this

7 section having the maturity date designated in the

8 Mayor’s requisition is consistent with the financial

9 plan for the year.

10 ‘‘(3) LATEST PERMISSIBLE MATURITY DATE.—

11 Notwithstanding paragraph (1), the maturity date

12 for any advance made under this section shall not be

13 later than 11 months after the date on which such

14 advance is made.

15 ‘‘(e) INTEREST RATE.—Each advance made under

16 this section shall bear interest at an annual rate equal to

17 a rate determined by the Secretary at the time that the

18 Secretary makes such advance taking into consideration

19 the prevailing yield on outstanding marketable obligations

20 of the United States with remaining periods to maturity

comparable to the maturity of such advance, plus 1 21 ⁄8 of

22 1 percent.

23 ‘‘(f) 10-BUSINESS-DAY ZERO BALANCE REQUIRE24 MENT.—After the expiration of the 12-month period be25 ginning on the date on which the first advance is made
85

Title II, Subtitle A

•HR 1345 PCS

1 under this section, the Secretary shall not make any new

2 advance under this section unless the District government

3 has—

4 ‘‘(1) reduced to zero at the same time the prin5 cipal balance of all advances made under this section

6 at least once during the previous 12-month period;

7 and

8 ‘‘(2) not requisitioned any advance to be made

9 under this section in any of the 10 business days fol10 lowing such reduction.

11 ‘‘(g) DEPOSIT OF ADVANCES.—As provided in section

12 204(b) of the District of Columbia Financial Responsibil13 ity and Management Assistance Act of 1995, advances

14 made under this section for the account of the District

15 government shall be deposited by the Secretary into an

16 escrow account held by the Authority.

17 ‘‘SEC. 603. SECURITY FOR ADVANCES.

18 ‘‘(a) IN GENERAL.—The Secretary shall require the

19 District government to provide such security for any ad20 vance made under this title as the Secretary determines

21 to be appropriate.

22 ‘‘(b) AUTHORITY TO REQUIRE SPECIFIC SECU23 RITY.—As security for any advance made under this title,

24 the Secretary may require the District government to—
86

Title II, Subtitle A

•HR 1345 PCS

1 ‘‘(1) pledge to the Secretary specific taxes and

2 revenue of the District government, if such pledging

3 does not cause the District government to violate ex4 isting laws or contracts; and

5 ‘‘(2) establish a debt service reserve fund

6 pledged to the Secretary.

7 ‘‘SEC. 604. REIMBURSEMENT TO THE TREASURY.

8 ‘‘(a) REIMBURSEMENT AMOUNT.—

9 ‘‘(1) IN GENERAL.—Except as provided in para10 graph (2), on any date on which a reimbursement

11 payment is due to the Treasury under the terms of

12 any advance made under this title, the District shall

13 pay to the Treasury the amount of such reimburse14 ment payment out of taxes and revenue collected for

15 the support of the District government.

16 ‘‘(2) EXCEPTIONS FOR TRANSITIONAL AD17 VANCES.—

18 ‘‘(A) ADVANCES MADE BEFORE OCTOBER

19 1, 1995.—

20 ‘‘(i) FINANCIAL PLAN AND BUDGET

21 APPROVED.—If the Authority approves a

22 financial plan for the District government

23 before October 1, 1995, the District gov24 ernment may use the proceeds of any ad25 vance made under section 602 to discharge
87

Title II, Subtitle A

•HR 1345 PCS

1 its obligation to reimburse the Treasury

2 for any advance made under section

3 601(a).

4 ‘‘(ii) FINANCIAL PLAN AND BUDGET

5 NOT APPROVED.—If the Authority has not

6 approved a financial plan and budget for

7 the District government by October 1,

8 1995, the annual Federal payment appro9 priated to the District government for the

10 fiscal year ending September 30, 1996,

11 shall be withheld and applied to discharge

12 the District government’s obligation to re13 imburse the Treasury for any advance

14 made under section 601(a).

15 ‘‘(B) ADVANCES MADE ON OR AFTER OC16 TOBER 1, 1995.—

17 ‘‘(i) FINANCIAL PLAN AND BUDGET

18 APPROVED.—If the Authority approves a

19 financial plan and budget for the District

20 government during fiscal year 1996, the

21 District may use the proceeds of any ad22 vance made under section 602 to discharge

23 its obligation to reimburse the Treasury

24 for any advance made under section

25 601(b).
88

Title II, Subtitle A

•HR 1345 PCS

1 ‘‘(ii) FINANCIAL PLAN AND BUDGET

2 NOT APPROVED.—If the Authority has not

3 approved a financial plan and budget for

4 the District government by October 1,

5 1996, the annual Federal payment appro6 priated to the District government for the

7 fiscal year ending September 30, 1997,

8 shall be withheld and applied to discharge

9 the District government’s obligation to re10 imburse the Treasury for any advance

11 made under section 601(b).

12 ‘‘(b) REMEDIES FOR FAILURE TO REIMBURSE.—If,

13 on any date on which a reimbursement payment is due

14 to the Treasury under the terms of any advance made

15 under this title, the District government does not make

16 such reimbursement payment, the Secretary shall take the

17 actions listed in this subsection.

18 ‘‘(1) WITHHOLD ANNUAL FEDERAL PAY19 MENT.—Notwithstanding any other law, before turn20 ing over to the Authority (on behalf of the District

21 government under section 205 of the District of Co22 lumbia Financial Responsibility and Management

23 Assistance Act of 1995) any annual Federal pay24 ment appropriated to the District government for

25 any fiscal year under title V of the District of Co-
89

Title II, Subtitle A

•HR 1345 PCS

1 lumbia Self-Government and Governmental Reorga2 nization Act (if any), the Secretary shall withhold

3 from such annual Federal payment, and apply to4 ward reimbursement for the payment not made, an

5 amount equal to the amount needed to fully reim6 burse the Treasury for the payment not made.

7 ‘‘(2) WITHHOLD OTHER FEDERAL PAY8 MENTS.—If, after the Secretary takes the action de9 scribed in paragraph (1), the Treasury is not fully

10 reimbursed, the Secretary shall withhold from each

11 grant, entitlement, loan, or other payment to the

12 District government by the Federal Government not

13 dedicated to making entitlement or benefit payments

14 to individuals, and apply toward reimbursement for

15 the payment not made, an amount that, when added

16 to the amount withheld from each other such grant,

17 entitlement, loan, or other payment, will be equal to

18 the amount needed to fully reimburse the Treasury

19 for the payment not made.

20 ‘‘(3) ATTACH AVAILABLE DISTRICT REVE21 NUES.—If, after the Secretary takes the actions de22 scribed in paragraphs (1) and (2), the Treasury is

23 not fully reimbursed, the Secretary shall attach any

24 and all revenues of the District government which

25 the Secretary may lawfully attach, and apply toward
90

Title II, Subtitle A

•HR 1345 PCS

1 reimbursement for the payment not made, an

2 amount equal to the amount needed to fully reim3 burse the Treasury for the payment not made.

4 ‘‘(4) TAKE OTHER ACTIONS.—If, after the Sec5 retary takes the actions described in paragraphs (1)

6 through (3), the Treasury is not fully reimbursed,

7 the Secretary shall take any and all other actions

8 permitted by law to recover from the District gov9 ernment the amount needed to fully reimburse the

10 Treasury for the payment not made.

11 ‘‘SEC. 605. DEFINITIONS.

12 ‘‘For purposes of this title—

13 ‘‘(1) the term ‘Authority’ means the District of

14 Columbia Financial Responsibility and Management

15 Assistance Authority established under section

16 101(a) of the District of Columbia Financial Re17 sponsibility and Management Assistance Act of

18 1995;

19 ‘‘(2) the term ‘control period’ has the meaning

20 given such term under section 305(4) of such Act;

21 ‘‘(3) the term ‘District government’ has the

22 meaning given such term under section 305(5) of

23 such Act;
91

Title II, Subtitle A

•HR 1345 PCS

1 ‘‘(4) the term ‘financial plan and budget’ has

2 the meaning given such term under section 305(6)

3 of such Act; and

4 ‘‘(5) the term ‘Secretary’ means the Secretary

5 of the Treasury.’’.

6 (d) EXPENDITURE OF FUNDS FROM ACCOUNT IN

7 ACCORDANCE WITH AUTHORITY INSTRUCTIONS.—Any

8 funds allocated by the Authority to the Mayor from the

9 escrow account described in subsection (b)(1) may be ex10 pended by the Mayor only in accordance with the terms

11 and conditions established by the Authority at the time

12 the funds are allocated.

13 (e) PROHIBITION AGAINST BORROWING WHILE SUIT

14 PENDING.—The Mayor may not requisition advances from

15 the Treasury pursuant to title VI of the District of Colum16 bia Revenue Act of 1939 if there is an action filed by the

17 Mayor or the Council which is pending against the Author18 ity challenging the establishment of or any action taken

19 by the Authority.

20 SEC. 205. DEPOSIT OF ANNUAL FEDERAL PAYMENT WITH

21 AUTHORITY.

22 (a) IN GENERAL.—

23 (1) DEPOSIT INTO ESCROW ACCOUNT.—In the

24 case of a fiscal year which is a control year, the Sec25 retary of the Treasury shall deposit the annual Fed-
92

Title II, Subtitle A

•HR 1345 PCS

1 eral payment to the District of Columbia for the

2 year authorized under title V of the District of Co3 lumbia Self-Government and Governmental Reorga4 nization Act into an escrow account held by the Au5 thority, which shall allocate the funds to the Mayor

6 at such intervals and in accordance with such terms

7 and conditions as it considers appropriate to imple8 ment the financial plan for the year. In establishing

9 such terms and conditions, the Authority shall give

10 priority to using the Federal payment for cash flow

11 management and the payment of outstanding bills

12 owed by the District government.

13 (2) EXCEPTION FOR AMOUNTS WITHHELD FOR

14 ADVANCES.—Paragraph (1) shall not apply with re15 spect to any portion of the Federal payment which

16 is withheld by the Secretary of the Treasury in ac17 cordance with section 604 of title VI of the District

18 of Columbia Revenue Act of 1939 (as added by sec19 tion 204(c)) to reimburse the Secretary for advances

20 made under title VI of such Act.

21 (b) EXPENDITURE OF FUNDS FROM ACCOUNT IN AC22 CORDANCE WITH AUTHORITY INSTRUCTIONS.—Any

23 funds allocated by the Authority to the Mayor from the

24 escrow account described in paragraph (1) may be ex25 pended by the Mayor only in accordance with the terms
93

Title II, Subtitle A

•HR 1345 PCS

1 and conditions established by the Authority at the time

2 the funds are allocated.

3 SEC. 206. EFFECT OF FINDING OF NON-COMPLIANCE WITH

4 FINANCIAL PLAN AND BUDGET.

5 (a) SUBMISSION OF REPORTS.—Not later than 30

6 days after the expiration of each quarter of each fiscal

7 year (beginning with fiscal year 1996), the Mayor shall

8 submit reports to the Authority describing the actual reve9 nues obtained and expenditures made by the District gov10 ernment during the quarter with its cash flows during the

11 quarter, and comparing such actual revenues, expendi12 tures, and cash flows with the most recent projections for

13 these items.

14 (b) DEMAND FOR ADDITIONAL INFORMATION.—If

15 the Authority determines, based on reports submitted by

16 the Mayor under subsection (a), independent audits, or

17 such other information as the Authority may obtain, that

18 the revenues or expenditures of the District government

19 during a control year are not consistent with the financial

20 plan and budget for the year, the Authority shall require

21 the Mayor to provide such additional information as the

22 Authority determines to be necessary to explain the incon23 sistency.

24 (c) CERTIFICATION OF VARIANCE.—
94

Title II, Subtitle A

•HR 1345 PCS

1 (1) IN GENERAL.—After requiring the Mayor to

2 provide additional information under subsection (b),

3 the Authority shall certify to the Council, the Presi4 dent, the Secretary of the Treasury, and Congress

5 that the District government is at variance with the

6 financial plan and budget unless—

7 (A)(i) the additional information provides

8 an explanation for the inconsistency which the

9 Authority finds reasonable and appropriate, or

10 (ii) the District government adopts or im11 plements remedial action (including revising the

12 financial plan and budget pursuant to section

13 202(e)) to correct the inconsistency which the

14 Authority finds reasonable and appropriate,

15 taking into account the terms of the financial

16 plan and budget; and

17 (B) the Mayor agrees to submit the re18 ports described in subsection (a) on a monthly

19 basis for such period as the Authority may

20 require.

21 (2) SPECIAL RULE FOR INCONSISTENCIES AT22 TRIBUTABLE TO ACTS OF CONGRESS.—

23 (A) DETERMINATION BY AUTHORITY.—If

24 the Authority determines that the revenues or

25 expenditures of the District government during
95

Title II, Subtitle A

•HR 1345 PCS

1 a control year are not consistent with the finan2 cial plan and budget for the year as approved

3 by the Authority under section 202 as a result

4 of the terms and conditions of the budget of

5 the District government for the year as enacted

6 by Congress or as a result of any other law en7 acted by Congress which affects the District of

8 Columbia, the Authority shall so notify the

9 Mayor.

10 (B) CERTIFICATION.—In the case of an in11 consistency described in subparagraph (A), the

12 Authority shall certify to the Council, the Presi13 dent, the Secretary of the Treasury, and Con14 gress that the District government is at vari15 ance with the financial plan and budget unless

16 the District government adopts or implements

17 remedial action (including revising the financial

18 plan and budget pursuant to section 202(e)) to

19 correct the inconsistency which the Authority

20 finds reasonable and appropriate, taking into

21 account the terms of the financial plan and

22 budget.

23 (d) EFFECT OF CERTIFICATION.—If the Authority

24 certifies to the Secretary of the Treasury that a variance

25 exists—
96

Title II, Subtitle A

•HR 1345 PCS

1 (1) the Authority may withhold any funds de2 posited with the Authority under section 204(b) or

3 section 205(a) which would otherwise be expended

4 on behalf of the District government; and

5 (2) the Secretary shall withhold funds otherwise

6 payable to the District of Columbia under such Fed7 eral programs as the Authority may specify (other

8 than funds dedicated to making entitlement or bene9 fit payments to individuals), in such amounts and

10 under such other conditions as the Authority may

11 specify.

12 SEC. 207. RECOMMENDATIONS ON FINANCIAL STABILITY

13 AND MANAGEMENT RESPONSIBILITY.

14 (a) IN GENERAL.—The Authority may at any time

15 submit recommendations to the Mayor, the Council, the

16 President, and Congress on actions the District govern17 ment or the Federal Government may take to ensure com18 pliance by the District government with a financial plan

19 and budget or to otherwise promote the financial stability,

20 management responsibility, and service delivery efficiency

21 of the District government, including recommendations re22 lating to—

23 (1) the management of the District govern24 ment’s financial affairs, including cash forecasting,

25 information technology, placing controls on expendi-
97

Title II, Subtitle A

•HR 1345 PCS

1 tures for personnel, reducing benefit costs, reforming

2 procurement practices, and placing other controls on

3 expenditures;

4 (2) the relationship between the District gov5 ernment and the Federal Government;

6 (3) the structural relationship of departments,

7 agencies, and independent agencies within the Dis8 trict government;

9 (4) the modification of existing revenue struc10 tures, or the establishment of additional revenue

11 structures;

12 (5) the establishment of alternatives for meet13 ing obligations to pay for the pensions of former

14 District government employees;

15 (6) modifications or transfers of the types of

16 services which are the responsibility of and are deliv17 ered by the District government;

18 (7) modifications of the types of services which

19 are delivered by entities other than the District gov20 ernment under alternative service delivery mecha21 nisms (including privatization and commercializa22 tion);

23 (8) the effects of District of Columbia laws and

24 court orders on the operations of the District gov25 ernment;
98

Title II, Subtitle A

•HR 1345 PCS

1 (9) the establishment of a personnel system for

2 employees of the District government which is based

3 upon employee performance standards; and

4 (10) the improvement of personnel training and

5 proficiency, the adjustment of staffing levels, and

6 the improvement of training and performance of

7 management and supervisory personnel.

8 (b) RESPONSE TO RECOMMENDATIONS FOR ACTIONS

9 WITHIN AUTHORITY OF DISTRICT GOVERNMENT.—

10 (1) IN GENERAL.—In the case of any rec11 ommendations submitted under subsection (a) dur12 ing a control year which are within the authority of

13 the District government to adopt, not later than 90

14 days after receiving the recommendations, the Mayor

15 or the Council (whichever has the authority to adopt

16 the recommendation) shall submit a statement to the

17 Authority, the President, and Congress which pro18 vides notice as to whether the District government

19 will adopt the recommendations.

20 (2) IMPLEMENTATION PLAN REQUIRED FOR

21 ADOPTED RECOMMENDATIONS.—If the Mayor or the

22 Council (whichever is applicable) notifies the Author23 ity and Congress under paragraph (1) that the Dis24 trict government will adopt any of the recommenda25 tions submitted under subsection (a), the Mayor or
99

Title II, Subtitle A

•HR 1345 PCS

1 the Council (whichever is applicable) shall include in

2 the statement a written plan to implement the rec3 ommendation which includes—

4 (A) specific performance measures to de5 termine the extent to which the District govern6 ment has adopted the recommendation; and

7 (B) a schedule for auditing the District

8 government’s compliance with the plan.

9 (3) EXPLANATIONS REQUIRED FOR REC10 OMMENDATIONS NOT ADOPTED.—If the Mayor or

11 the Council (whichever is applicable) notifies the Au12 thority, the President, and Congress under para13 graph (1) that the District government will not

14 adopt any recommendation submitted under sub15 section (a) which the District government has au16 thority to adopt, the Mayor or the Council shall in17 clude in the statement explanations for the rejection

18 of the recommendations.

19 (c) IMPLEMENTATION OF REJECTED RECOMMENDA20 TIONS BY AUTHORITY.—

21 (1) IN GENERAL.—If the Mayor or the Council

22 (whichever is applicable) notifies the Authority, the

23 President, and Congress under subsection (b)(1)

24 that the District government will not adopt any rec25 ommendation submitted under subsection (a) which
100

Title II, Subtitle A

•HR 1345 PCS

1 the District government has authority to adopt, the

2 Authority may by a majority vote of its members

3 take such action concerning the recommendation as

4 it deems appropriate, after consulting with the Com5 mittee on Government Reform and Oversight of the

6 House of Representatives and the Committee on

7 Governmental Affairs of the Senate.

8 (2) EFFECTIVE DATE.—This subsection shall

9 apply with respect to recommendations of the Au10 thority made after the expiration of the 6-month pe11 riod which begins on the date of the enactment of

12 this Act.

13 SEC. 208. SPECIAL RULES FOR FISCAL YEAR 1996.

14 (a) ADOPTION OF TRANSITION BUDGET.—Notwith15 standing any provision of section 202 to the contrary, in

16 the case of fiscal year 1996, the following rules shall apply:

17 (1) Not later than 45 days after the appoint18 ment of its members, the Authority shall review the

19 proposed budget for the District of Columbia for

20 such fiscal year submitted to Congress under section

21 446 of the District of Columbia Self-Government

22 and Governmental Reorganization Act (taking into

23 account any items or provisions disapproved by the

24 Mayor or disapproved by the Mayor and reenacted

25 by the Council under section 404(f) of the District
101

Title II, Subtitle A

•HR 1345 PCS

1 of Columbia Self-Government and Governmental Re2 organization Act, as amended by section 202(f)(2))

3 and the multiyear plan for the District of Columbia

4 prepared pursuant to section 443 of the District of

5 Columbia Self-Government and Governmental Reor6 ganization Act, and shall submit any recommenda7 tions for modifications to such financial plan and

8 budget to promote the financial stability of the Dis9 trict government to the Mayor, the Council, the

10 President, and Congress.

11 (2) Not later than 15 days after receiving the

12 recommendations of the Authority submitted under

13 paragraph (1), the Council (in consultation with the

14 Mayor) shall promptly adopt a revised budget for

15 the fiscal year (in this section referred to as the

16 ‘‘transition budget’’), and shall submit the transition

17 budget to the Authority, the President, and Con18 gress.

19 (3) Not later than 15 days after receiving the

20 transition budget from the Council under paragraph

21 (2), the Authority shall submit a report to the

22 Mayor, the Council, the President, and Congress

23 analyzing the budget (taking into account any items

24 or provisions disapproved by the Mayor or dis25 approved by the Mayor and reenacted by the Council
102

Title II, Subtitle A

•HR 1345 PCS

1 under section 404(f) of the District of Columbia

2 Self-Government and Governmental Reorganization

3 Act, as amended by section 202(f)(2)), and shall in4 clude in the report such recommendations for revi5 sions to the transition budget as the Authority con6 siders appropriate to promote the financial stability

7 of the District government during the fiscal year.

8 (b) FINANCIAL PLAN AND BUDGET.—

9 (1) DEADLINE FOR SUBMISSION.—For purposes

10 of section 202, the Mayor shall submit the financial

11 plan and budget for fiscal year 1996 as soon as

12 practicable after the date of the enactment of this

13 Act (in accordance with guidelines established by the

14 Authority).

15 (2) ADOPTION BY COUNCIL.—In accordance

16 with the procedures applicable under section 202

17 (including procedures providing for review by the

18 Authority)—

19 (A) the Council shall adopt the financial

20 plan and budget for the fiscal year (including

21 the supplemental budget incorporated in the fi22 nancial plan and budget) prior to the submis23 sion by the Mayor of the financial plan and

24 budget for fiscal year 1997 under section

25 202(a); and
103

Title II, Subtitle A

•HR 1345 PCS

1 (B) the financial plan and budget adopted

2 by the Council (and, in the case of a financial

3 plan and budget disapproved by the Authority,

4 together with the financial plan and budget ap5 proved and recommended by the Authority)

6 shall be submitted to Congress (in accordance

7 with the procedures applicable under such sec8 tion) as a supplemental budget request for fis9 cal year 1996 (in accordance with section 446

10 of the District of Columbia Self-Government

11 and Governmental Reorganization Act).

12 (3) TRANSITION BUDGET AS TEMPORARY FI13 NANCIAL PLAN AND BUDGET.—Until the approval of

14 the financial plan and budget for fiscal year 1996 by

15 the Authority under this subsection, the transition

16 budget established under subsection (a) (as enacted

17 by Congress) shall serve as the financial plan and

18 budget adopted under this subtitle for purposes of

19 this Act (and any provision of law amended by this

20 Act) for fiscal year 1996.

21 (c) RESTRICTIONS ON ADVANCES FROM TREAS22 URY.—

23 (1) MONTHLY DETERMINATION OF PROGRESS

24 TOWARD FINANCIAL PLAN AND BUDGET.—During

25 each month of fiscal year 1996 prior to the adoption
104

Title II, Subtitle A

•HR 1345 PCS

1 of the financial plan and budget, the Authority shall

2 determine whether the District government is mak3 ing appropriate progress in preparing and adopting

4 a financial plan and budget for the fiscal year under

5 this subtitle.

6 (2) CERTIFICATION.—The Authority shall pro7 vide the President and Congress with a certification

8 if the Authority finds that the District government

9 is not making appropriate progress in developing the

10 financial plan and budget for a month, and shall no11 tify the President and Congress that the certification

12 is no longer in effect if the Authority finds that the

13 District government is making such progress after

14 the certification is provided.

15 (3) PROHIBITION AGAINST ALLOCATION OF AD16 VANCES IF CERTIFICATION IN EFFECT.—At any

17 time during which a certification under paragraph

18 (2) is in effect, Authority may not allocate any funds

19 obtained through advances to the Mayor under title

20 VI of the District of Columbia Revenue Act of 1939

21 from the escrow account in which the funds are held.

22 SEC. 209. CONTROL PERIODS DESCRIBED.

23 (a) INITIATION.—For purposes of this Act, a ‘‘control

24 period’’ is initiated upon the occurrence of any of the fol25 lowing events (as determined by the Authority based upon
105

Title II, Subtitle A

•HR 1345 PCS

1 information obtained through the Mayor, the Inspector

2 General of the District of Columbia, or such other sources

3 as the Authority considers appropriate):

4 (1) The requisitioning by the Mayor of ad5 vances from the Treasury of the United States

6 under title VI of the District of Columbia Revenue

7 Act of 1939 (sec. 47–3401, D.C. Code), or the exist8 ence of any unreimbursed amounts obtained pursu9 ant to such authority.

10 (2) The failure of the District government to

11 provide sufficient revenue to a debt service reserve

12 fund of the Authority under subtitle B.

13 (3) The default by the District government with

14 respect to any loans, bonds, notes, or other form of

15 borrowing.

16 (4) The failure of the District government to

17 meet its payroll for any pay period.

18 (5) The existence of a cash deficit of the Dis19 trict government at the end of any quarter of the

20 fiscal year in excess of the difference between the es21 timated revenues of the District government and the

22 estimated expenditures of the District government

23 (including repayments of temporary borrowings)

24 during the remainder of the fiscal year or the re25 mainder of the fiscal year together with the first 6
106

Title II, Subtitle A

•HR 1345 PCS

1 months of the succeeding fiscal year (as determined

2 by the Authority in consultation with the Chief Fi3 nancial Officer of the District of Columbia).

4 (6) The failure of the District government to

5 make required payments relating to pensions and

6 benefits for current and former employees of the

7 District government.

8 (7) The failure of the District government to

9 make required payments to any entity established

10 under an interstate compact to which the District of

11 Columbia is a signatory.

12 (b) TERMINATION.—

13 (1) IN GENERAL.—A control period terminates

14 upon the certification by the Authority that—

15 (A) the District government has adequate

16 access to both short-term and long-term credit

17 markets at reasonable interest rates to meet its

18 borrowing needs; and

19 (B) for 4 consecutive fiscal years (occur20 ring after the date of the enactment of this Act)

21 the expenditures made by the District govern22 ment during each of the years did not exceed

23 the revenues of the District government during

24 such years (as determined in accordance with

25 generally accepted accounting principles, as
107

Title II, Subtitle B

•HR 1345 PCS

1 contained in the comprehensive annual financial

2 report for the District of Columbia under sec3 tion 448(a)(4) of the District of Columbia Self4 Government and Governmental Reorganization

5 Act).

6 (2) CONSULTATION WITH INSPECTOR GEN7 ERAL.—In making the determination under this sub8 section, the Authority shall consult with the Inspec9 tor General of the District of Columbia.

10 (c) CONTROL PERIOD DEEMED TO EXIST UPON EN11 ACTMENT.—For purposes of this subtitle, a control period

12 is deemed to exist upon the enactment of this Act.

13 Subtitle B—Issuance of Bonds

14 SEC. 211. AUTHORITY TO ISSUE BONDS.

15 (a) IN GENERAL.—

16 (1) REQUEST OF MAYOR.—Subject to the re17 quirements of this subtitle, the Authority may at the

18 request of the Mayor pursuant to an Act of the

19 Council issue bonds, notes, or other obligations to

20 borrow funds to obtain funds for the use of the Dis21 trict government, in such amounts and in such man22 ner as the Authority considers appropriate.

23 (2) SPECIAL RULE FOR INSTRUMENTALITIES

24 WITH INDEPENDENT BORROWING AUTHORITY.—In

25 the case of an agency or instrumentality of the Dis-
108

Title II, Subtitle B

•HR 1345 PCS

1 trict government which under law has the authority

2 to issue bonds, notes, or obligations to borrow funds

3 without the enactment of an Act of the Council, the

4 Authority may issue bonds, notes, or other obliga5 tions to borrow funds for the use or functions of

6 such agency or instrumentality at the request of the

7 head of the agency or instrumentality.

8 (b) DEPOSIT OF FUNDS OBTAINED THROUGH BOR9 ROWING WITH AUTHORITY.—Any funds obtained by the

10 District government through borrowing by the Authority

11 pursuant to this subtitle shall be deposited into an escrow

12 account held by the Authority, which shall allocate such

13 funds to the District government in such amounts and at

14 such times as the Authority considers appropriate, consist15 ent with the specified purposes of such funds and the ap16 plicable financial plan and budget under subtitle A.

17 (c) USES OF FUNDS OBTAINED THROUGH BONDS.—

18 Any funds obtained through the issuance of bonds, notes,

19 or other obligations pursuant to this subtitle may be used

20 for any purpose (consistent with the applicable financial

21 plan and budget) under subtitle A for which the District

22 government may use borrowed funds under the District

23 of Columbia Self-Government and Governmental Reorga24 nization Act and for any other purpose which the Author25 ity considers appropriate.
109

Title II, Subtitle B

•HR 1345 PCS

1 SEC. 212. PLEDGE OF SECURITY INTEREST IN REVENUES

2 OF DISTRICT GOVERNMENT.

3 (a) IN GENERAL.—The Authority may pledge or

4 grant a security interest in revenues to individuals or enti5 ties purchasing bonds, notes, or other obligations issued

6 pursuant to this subtitle.

7 (b) DEDICATION OF REVENUE STREAM FROM DIS8 TRICT GOVERNMENT.—The Authority shall require the

9 Mayor—

10 (1) to pledge or direct taxes or other revenues

11 otherwise payable to the District government (which

12 are not otherwise pledged or committed), including

13 payments from the Federal Government, to the Au14 thority for purposes of securing repayment of bonds,

15 notes, or other obligations issued pursuant to this

16 subtitle; and

17 (2) to transfer the proceeds of any tax levied

18 for purposes of securing such bonds, notes, or other

19 obligations to the Authority immediately upon collec20 tion.

21 SEC. 213. ESTABLISHMENT OF DEBT SERVICE RESERVE

22 FUND.

23 (a) IN GENERAL.—As a condition for the issuance

24 of bonds, notes, or other obligations pursuant to this sub25 title, the Authority shall establish a debt service reserve

26 fund in accordance with this section.
110

Title II, Subtitle B

•HR 1345 PCS

1 (b) REQUIREMENTS FOR FUND.—

2 (1) FUND DESCRIBED.—A debt service reserve

3 fund established by the Authority pursuant to this

4 subsection shall consist of such funds as the Author5 ity may make available, and shall be a trust fund

6 held for the benefit and security of the obligees of

7 the Authority whose bonds, notes, or other obliga8 tions are secured by such fund.

9 (2) USES OF FUNDS.—Amounts in a debt serv10 ice reserve fund may be used solely for the payment

11 of the principal of bonds secured in whole or in part

12 by such fund, the purchase or redemption of such

13 bonds, the payment of interest on such bonds, or the

14 payment of any redemption premium required to be

15 paid when such bonds and notes are redeemed prior

16 to maturity.

17 (3) RESTRICTIONS ON WITHDRAWALS.—

18 (A) IN GENERAL.—Amounts in a debt

19 service reserve fund may not be withdrawn from

20 the fund at any time in an amount that would

21 reduce the amount of the fund to less than the

22 minimum reserve fund requirement established

23 for such fund in the resolution of the Authority

24 creating such fund, except for withdrawals for

25 the purpose of making payments when due of
111

Title II, Subtitle B

•HR 1345 PCS

1 principal, interest, redemption premiums and

2 sinking fund payments, if any, with respect to

3 such bonds for the payment of which other

4 moneys of the Authority are not available, and

5 for the purpose of funding the operations of the

6 Authority for a fiscal year (in such amounts

7 and under such conditions as are established

8 under the budget of the Authority for the fiscal

9 year under section 106(a)).

10 (B) USE OF EXCESS FUNDS.—Nothing in

11 subparagraph (A) may be construed to prohibit

12 the Authority from transferring any income or

13 interest earned by, or increments to, any debt

14 service reserve fund due to the investment

15 thereof to other funds or accounts of the Au16 thority (to the extent such transfer does not re17 duce the amount of the debt service reserve

18 fund below the minimum reserve fund require19 ment established for such fund) for such pur20 poses as the Authority considers appropriate to

21 promote the financial stability and management

22 efficiency of the District government.
112

Title II, Subtitle B

•HR 1345 PCS

1 SEC. 214. OTHER REQUIREMENTS FOR ISSUANCE OF

2 BONDS.

3 (a) MINIMUM DEBT SERVICE RESERVE FUND RE4 QUIREMENT.—The Authority may not at any time issue

5 bonds, notes, or other obligations pursuant to this subtitle

6 which are secured in whole or in part by a debt service

7 reserve fund under section 213 if issuance of such bonds

8 would cause the amount in the debt reserve fund to fall

9 below the minimum reserve requirement for such fund, un10 less the Authority at the time of issuance of such bonds

11 shall deposit in the fund an amount (from the proceeds

12 of the bonds to be issued or from other sources) which

13 when added to the amount already in such fund will cause

14 the total amount on deposit in such fund to equal or ex15 ceed the minimum reserve fund requirement established

16 by the Authority at the time of the establishment of the

17 fund.

18 (b) AMOUNTS INCLUDED IN AGGREGATE LIMIT ON

19 DISTRICT BORROWING.—Any amounts provided to the

20 District government through the issuance of bonds, notes,

21 or other obligations to borrow funds pursuant to this sub22 title shall be taken into account in determining whether

23 the amount of funds borrowed by the District of Columbia

24 during a fiscal year exceeds the limitation on such amount

25 provided under section 603(b) of the District of Columbia

26 Self-Government and Governmental Reorganization Act.
113

Title II, Subtitle C

•HR 1345 PCS

1 SEC. 215. NO FULL FAITH AND CREDIT OF THE UNITED

2 STATES.

3 The full faith and credit of the United States is not

4 pledged for the payment of any principal of or interest

5 on any bond, note, or other obligation issued by the Au6 thority pursuant to this subtitle. The United States is not

7 responsible or liable for the payment of any principal of

8 or interest on any bond, note, or other obligation issued

9 by the Authority pursuant to this subtitle.

10 Subtitle C—Other Duties of

11 Authority

12 SEC. 221. DUTIES OF AUTHORITY DURING YEAR OTHER

13 THAN CONTROL YEAR.

14 (a) IN GENERAL.—During the period beginning upon

15 the termination of a control period pursuant to section

16 209(b) and ending with the suspension of its activities

17 pursuant to section 107(a), the Authority shall conduct

18 the following activities:

19 (1) The Authority shall review the budgets of

20 the District government adopted by the Council

21 under section 446 of the District of Columbia Self22 Government and Governmental Reorganization Act

23 for each fiscal year occurring during such period.

24 (2) At such time prior to the enactment of such

25 budget by Congress as the Authority considers ap26 propriate, the Authority shall prepare a report ana-
114

Title II, Subtitle C

•HR 1345 PCS

1 lyzing the budget and submit the report to the

2 Mayor, the Council, the President, and Congress.

3 (3) The Authority shall monitor the financial

4 status of the District government and shall submit

5 reports to the Mayor, the Council, the President,

6 and Congress if the Authority determines that a risk

7 exists that a control period may be initiated pursu8 ant to section 209(a).

9 (4) The Authority shall carry out activities

10 under subtitle B with respect to bonds, notes, or

11 other obligations of the Authority outstanding dur12 ing such period.

13 (b) REQUIRING MAYOR TO SUBMIT BUDGETS TO AU14 THORITY.—With respect to the budget for each fiscal year

15 occurring during the period described in subsection (a),

16 at the time the Mayor submits the budget of the District

17 government adopted by the Council to the President under

18 section 446 of the District of Columbia Self-Government

19 and Governmental Reorganization Act, the Mayor shall

20 submit such budget to the Authority.

21 SEC. 222. GENERAL ASSISTANCE IN ACHIEVING FINANCIAL

22 STABILITY AND MANAGEMENT EFFICIENCY.

23 In addition to any other actions described in this title,

24 the Authority may undertake cooperative efforts to assist
115

Title II, Subtitle C

•HR 1345 PCS

1 the District government in achieving financial stability

2 and management efficiency, including—

3 (1) assisting the District government in avoid4 ing defaults, eliminating and liquidating deficits,

5 maintaining sound budgetary practices, and avoiding

6 interruptions in the delivery of services;

7 (2) assisting the District government in improv8 ing the delivery of municipal services, the training

9 and effectiveness of personnel of the District govern10 ment, and the efficiency of management and super11 vision; and

12 (3) making recommendations to the President

13 for transmission to Congress on changes to this Act

14 or other Federal laws, or other actions of the Fed15 eral Government, which would assist the District

16 government in complying with an approved financial

17 plan and budget under subtitle A.

18 SEC. 223. OBTAINING REPORTS.

19 The Authority may require the Mayor, the Chair of

20 the Council, the Chief Financial Officer of the District of

21 Columbia, and the Inspector General of the District of Co22 lumbia, to prepare and submit such reports as the Author23 ity considers appropriate to assist it in carrying out its

24 responsibilities under this Act, including submitting copies

25 of any reports regarding revenues, expenditures, budgets,
116

Title II, Subtitle C

•HR 1345 PCS

1 costs, plans, operations, estimates, and other financial or

2 budgetary matters of the District government.

3 SEC. 224. REPORTS AND COMMENTS.

4 (a) ANNUAL REPORTS TO CONGRESS.—Not later

5 than 30 days after the last day of each fiscal year which

6 is a control year, the Authority shall submit a report to

7 Congress describing—

8 (1) the progress made by the District govern9 ment in meeting the objectives of this Act during the

10 fiscal year;

11 (2) the assistance provided by the Authority to

12 the District government in meeting the purposes of

13 this Act for the fiscal year; and

14 (3) any other activities of the Authority during

15 the fiscal year.

16 (b) REVIEW AND ANALYSIS OF PERFORMANCE AND

17 FINANCIAL ACCOUNTABILITY REPORTS.—

18 (1) IN GENERAL.—The Authority shall review

19 each report prepared and submitted by the Mayor

20 under section 456 of the District of Columbia Self21 Government and Governmental Reorganization Act

22 (as added by section 3(a) of the Federal Payment

23 Reauthorization Act of 1994), and shall submit a re24 port to Congress analyzing the completeness and ac25 curacy of such reports.
117

Title II, Subtitle C

•HR 1345 PCS

1 (2) SUBMISSION OF REPORTS BY MAYOR.—Sec2 tion 456 of the District of Columbia Self-Govern3 ment and Governmental Reorganization Act, as

4 added by section 3(a) of the Federal Payment Reau5 thorization Act of 1994, is amended by adding at

6 the end the following new subsection:

7 ‘‘(e) SUBMISSION OF REPORTS TO DISTRICT OF CO8 LUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT

9 ASSISTANCE AUTHORITY.—In the case of any report sub10 mitted by the Mayor under this section for a fiscal year

11 (or any quarter of a fiscal year) which is a control year

12 under the District of Columbia Financial Responsibility

13 and Management Assistance Act of 1995, the Mayor shall

14 submit the report to the District of Columbia Financial

15 Responsibility and Management Assistance Authority es16 tablished under section 101(a) of such Act in addition to

17 any other individual to whom the Mayor is required to

18 submit the report under this section.’’.

19 (c) COMMENTS REGARDING ACTIVITIES OF DISTRICT

20 GOVERNMENT.—At any time during a control year, the

21 Authority may submit a report to Congress describing any

22 action taken by the District government (or any failure

23 to act by the District government) which the Authority

24 determines will adversely affect the District government’s

25 ability to comply with an approved financial plan and
118

Title III

•HR 1345 PCS

1 budget under subtitle A or will otherwise have a signifi2 cant adverse impact on the best interests of the District

3 of Columbia.

4 (d) REPORTS ON EFFECT OF FEDERAL LAWS ON

5 DISTRICT GOVERNMENT.—At any time during any year,

6 the Authority may submit a report to the Mayor, the

7 Council, the President, and Congress on the effect of laws

8 enacted by Congress on the financial plan and budget for

9 the year and on the financial stability and management

10 efficiency of the District government in general.

11 (e) MAKING REPORTS PUBLICLY AVAILABLE.—The

12 Authority shall make any report submitted under this sec13 tion available to the public, except to the extent that the

14 Authority determines that the report contains confidential

15 material.

16 TITLE III—MISCELLANEOUS

17 PROVISIONS

18 SEC. 301. OTHER DISTRICT BUDGET REFORMS.

19 (a) INCLUSION OF ALL FUNDS OF DISTRICT IN

20 BUDGET OF DISTRICT GOVERNMENT.—

21 (1) IN GENERAL.—Section 103 of the District

22 of Columbia Self-Government and Governmental

23 Reorganization Act (sec. 1–202, D.C. Code) is

24 amended—
119

Title III

•HR 1345 PCS

1 (A) by amending paragraph (10) to read

2 as follows:

3 ‘‘(10) The term ‘District revenues’ means all

4 funds derived from taxes, fees, charges, miscellane5 ous receipts, the annual Federal payment to the Dis6 trict authorized under title V, grants and other

7 forms of financial assistance, or the sale of bonds,

8 notes, or other obligations, and any funds adminis9 tered by the District government under cost sharing

10 arrangements.’’;

11 (B) by amending paragraph (14) to read

12 as follows:

13 ‘‘(14) The term ‘resources’ means revenues,

14 balances, enterprise or other revolving funds, and

15 funds realized from borrowing.’’; and

16 (C) by amending paragraph (15) to read

17 as follows:

18 ‘‘(15) The term ‘budget’ means the entire re19 quest for appropriations or loan or spending author20 ity for all activities of all departments or agencies of

21 the District of Columbia financed from all existing,

22 proposed or anticipated resources, and shall include

23 both operating and capital expenditures.’’.

24 (2) EFFECTIVE DATE.—The amendments made

25 by paragraph (1) shall apply with respect to reve-
120

Title III

•HR 1345 PCS

1 nues, resources, and budgets of the District of Co2 lumbia for fiscal years beginning with fiscal year

3 1996.

4 (b) RESTRICTIONS ON REPROGRAMMING OF

5 FUNDS.—

6 (1) IN GENERAL.—Section 446 of such Act

7 (sec. 47–304, D.C. Code) is amended by adding at

8 the end the following: ‘‘After the adoption of the an9 nual budget for a fiscal year (beginning with the an10 nual budget for fiscal year 1995), no reprogramming

11 of amounts in the budget may occur unless the

12 Mayor submits to the Council a request for such re13 programming and the Council approves the request,

14 but only if any additional expenditures provided

15 under such request for an activity are offset by re16 ductions in expenditures for another activity.’’.

17 (2) CONFORMING AMENDMENT.—Section 5 of

18 D.C. Law 3–100 (sec. 47–364, D.C. Code) is hereby

19 repealed.

20 (c) PERMITTING COUNCIL TO REQUEST BUDGET

21 ADJUSTMENTS FROM MAYOR.—Section 442 of the Dis22 trict of Columbia Self-Government and Governmental Re23 organization Act (sec. 47–301, D.C. Code) is amended by

24 adding at the end the following new subsection:
121

Title III

•HR 1345 PCS

1 ‘‘(d) The Mayor shall prepare and submit to the

2 Council a proposed supplemental or deficiency budget rec3 ommendation under subsection (c) if the Council by reso4 lution requests the Mayor to submit such a recommenda5 tion.’’.

6 (d) REQUIRING BUDGETARY IMPACT STATEMENTS

7 TO ACCOMPANY ACTS OF COUNCIL.—

8 (1) IN GENERAL.—Section 602(c) of the Dis9 trict of Columbia Self-Government and Govern10 mental Reorganization Act (sec. 1–233(c), D.C.

11 Code) is amended by adding at the end the following

12 new paragraph:

13 ‘‘(3) The Council shall submit with each Act trans14 mitted under this subsection an estimate of the costs

15 which will be incurred by the District of Columbia as a

16 result of the enactment of the Act in each of the first 4

17 fiscal years for which the Act is in effect, together with

18 a statement of the basis for such estimate.’’.

19 (2) EFFECTIVE DATE.—The amendment made

20 by paragraph (1) shall apply to Acts of the Council

21 transmitted on or after October 1, 1995.

22 (e) EXTENSION OF AUTHORIZATION OF ANNUAL

23 FEDERAL PAYMENT.—Section 503(c) of the District of

24 Columbia Self-Government and Governmental Reorganiza25 tion Act (sec. 47–3406.1(c), D.C. Code), as added by sec-
122

Title III

•HR 1345 PCS

1 tion 2 of the Federal Payment Reauthorization Act of

2 1994, is amended by striking ‘‘fiscal year 1996’’ and in3 serting ‘‘each of the fiscal years 1996, 1997, 1998, and

4 1999’’.

5 SEC. 302. ESTABLISHMENT OF CHIEF FINANCIAL OFFICER

6 OF DISTRICT OF COLUMBIA.

7 (a) IN GENERAL.—Part B of title IV of the District

8 of Columbia Self-Government and Governmental Reorga9 nization Act is amended by adding at the end the following

10 new section:

11 ‘‘CHIEF FINANCIAL OFFICER OF THE DISTRICT OF

12 COLUMBIA

13 ‘‘SEC. 424. (a) ESTABLISHMENT OF OFFICE.—

14 ‘‘(1) IN GENERAL.—There is hereby established

15 within the executive branch of the government of the

16 District of Columbia an Office of the Chief Financial

17 Officer of the District of Columbia (hereafter re18 ferred to as the ‘Office’), which shall be headed by

19 the Chief Financial Officer of the District of Colum20 bia (hereafter referred to as the ‘Chief Financial

21 Officer’).

22 ‘‘(2) OFFICE OF THE TREASURER.—The Office

23 shall include the Office of the Treasurer, which shall

24 be headed by the Treasurer of the District of Colum25 bia, who shall be appointed by the Chief Financial
123

Title III

•HR 1345 PCS

1 Officer and subject to the Chief Financial Officer’s

2 direction and control.

3 ‘‘(3) TRANSFER OF OTHER OFFICES.—Effective

4 with the appointment of the first Chief Financial Of5 ficer under subsection (b), the functions and person6 nel of the following offices are transferred to the

7 Office:

8 ‘‘(A) The Controller of the District of

9 Columbia.

10 ‘‘(B) The Office of the Budget.

11 ‘‘(C) The Office of Financial Information

12 Services.

13 ‘‘(D) The Department of Finance and

14 Revenue.

15 ‘‘(4) SERVICE OF HEADS OF OTHER OFFICES.—

16 ‘‘(A) OFFICE HEADS APPOINTED BY

17 MAYOR.—With respect to the head of the Office

18 of the Budget and the head of the Department

19 of Finance and Revenue—

20 ‘‘(i) the Mayor shall appoint such in21 dividuals with the advice and consent of

22 the Council, subject to the approval of the

23 Authority during a control year; and

24 ‘‘(ii) during a control year, the Au25 thority may remove such individuals from
124

Title III

•HR 1345 PCS

1 office for cause, after consultation with the

2 Mayor.

3 ‘‘(B) OFFICE HEADS APPOINTED BY CHIEF

4 FINANCIAL OFFICER.—With respect to the

5 Controller of the District of Columbia and the

6 head of the Office of Financial Information

7 Services—

8 ‘‘(i) the Chief Financial Officer shall

9 appoint such individuals subject to the ap10 proval of the Mayor; and

11 ‘‘(ii) the Chief Financial Officer may

12 remove such individuals from office for

13 cause, after consultation with the Mayor.

14 ‘‘(b) APPOINTMENT.—

15 ‘‘(1) IN GENERAL.—

16 ‘‘(A) CONTROL YEAR.—During a control

17 year, the Chief Financial Officer shall be ap18 pointed by the Mayor as follows:

19 ‘‘(i) Prior to the appointment of the

20 Chief Financial Officer, the Authority may

21 submit recommendations for the appoint22 ment to the Mayor.

23 ‘‘(ii) In consultation with the Author24 ity and the Council, the Mayor shall nomi-
125

Title III

•HR 1345 PCS

1 nate an individual for appointment and no2 tify the Council of the nomination.

3 ‘‘(iii) After the expiration of the 7-day

4 period which begins on the date the Mayor

5 notifies the Council of the nomination

6 under clause (ii), the Mayor shall notify

7 the Authority of the nomination.

8 ‘‘(iv) The nomination shall be effective

9 subject to approval by a majority vote of

10 the Authority.

11 ‘‘(B) OTHER YEARS.—During a year other

12 than a control year, the Chief Financial Officer

13 shall be appointed by the Mayor with the advice

14 and consent of the Council. Prior to appoint15 ment, the Authority may submit recommenda16 tions for the appointment.

17 ‘‘(2) REMOVAL.—

18 ‘‘(A) CONTROL YEAR.—During a control

19 year, the Chief Financial Officer may be re20 moved for cause by the Authority or by the

21 Mayor with the approval of the Authority.

22 ‘‘(B) OTHER YEARS.—During a year other

23 than a control year, the Chief Financial Officer

24 shall serve at the pleasure of the Mayor, except
126

Title III

•HR 1345 PCS

1 that the Chief Financial Officer may only be re2 moved for cause.

3 ‘‘(3) SALARY.—The Chief Financial Officer

4 shall be paid at an annual rate determined by the

5 Mayor, except that such rate may not exceed the

6 rate of basic pay payable for level IV of the Execu7 tive Schedule.

8 ‘‘(c) FUNCTIONS DURING CONTROL YEAR.—During

9 a control year, the Chief Financial Officer shall have the

10 following duties:

11 ‘‘(1) Preparing the financial plan and budget

12 for the use of the Mayor for purposes of subtitle A

13 of title II of the District of Columbia Financial Re14 sponsibility and Management Assistance Act of

15 1995.

16 ‘‘(2) Preparing the budgets of the District of

17 Columbia for the year for the use of the Mayor for

18 purposes of part D.

19 ‘‘(3) Assuring that all financial information pre20 sented by the Mayor is presented in a manner, and

21 is otherwise consistent with, the requirements of the

22 District of Columbia Financial Responsibility and

23 Management Assistance Act of 1995.

24 ‘‘(4) Implementing appropriate procedures and

25 instituting such programs, systems, and personnel
127

Title III

•HR 1345 PCS

1 policies within the Officer’s authority, to ensure that

2 budget, accounting and personnel control systems

3 and structures are synchronized for budgeting and

4 control purposes on a continuing basis.

5 ‘‘(5) With the approval of the Authority,

6 preparing and submitting to the Mayor and the

7 Council—

8 ‘‘(A) annual estimates of all revenues of

9 the District of Columbia (without regard to the

10 source of such revenues), including proposed

11 revenues, which shall be binding on the Mayor

12 and the Council for purposes of preparing and

13 submitting the budget of the District govern14 ment for the year under part D, except that the

15 Mayor and the Council may prepare the budget

16 based on estimates of revenues which are lower

17 than those prepared by the Chief Financial

18 Officer; and

19 ‘‘(B) quarterly re-estimates of the revenues

20 of the District of Columbia during the year.

21 ‘‘(6) Supervising and assuming responsibility

22 for financial transactions to ensure adequate control

23 of revenues and resources, and to ensure that appro24 priations are not exceeded.
128

Title III

•HR 1345 PCS

1 ‘‘(7) Maintaining systems of accounting and in2 ternal control designed to provide—

3 ‘‘(A) full disclosure of the financial impact

4 of the activities of the District government;

5 ‘‘(B) adequate financial information need6 ed by the District government for management

7 purposes;

8 ‘‘(C) effective control over, and account9 ability for, all funds, property, and other assets

10 of the District of Columbia; and

11 ‘‘(D) reliable accounting results to serve as

12 the basis for preparing and supporting agency

13 budget requests and controlling the execution of

14 the budget.

15 ‘‘(8) Submitting to the Council a financial

16 statement of the District government, containing

17 such details and at such times as the Council may

18 specify.

19 ‘‘(9) Supervising and assuming responsibility

20 for the assessment of all property subject to assess21 ment and special assessments within the corporate

22 limits of the District of Columbia for taxation, pre23 paring tax maps, and providing such notice of taxes

24 and special assessments (as may be required by

25 law).
129

Title III

•HR 1345 PCS

1 ‘‘(10) Supervising and assuming responsibility

2 for the levying and collection of all taxes, special as3 sessments, licensing fees, and other revenues of the

4 District of Columbia (as may be required by law),

5 and receiving all amounts paid to the District of Co6 lumbia from any source (including the Authority).

7 ‘‘(11) Maintaining custody of all public funds

8 belonging to or under the control of the District gov9 ernment (or any department or agency of the Dis10 trict government), and depositing all amounts paid

11 in such depositories and under such terms and con12 ditions as may be designated by the Council or the

13 Authority.

14 ‘‘(12) Maintaining custody of all investment

15 and invested funds of the District government or in

16 possession of the District government in a fiduciary

17 capacity, and maintaining the safekeeping of all

18 bonds and notes of the District government and the

19 receipt and delivery of District government bonds

20 and notes for transfer, registration, or exchange.

21 ‘‘(13) Apportioning the total of all appropria22 tions and funds made available during the year for

23 obligation so as to prevent obligation or expenditure

24 in a manner which would result in a deficiency or a

25 need for supplemental appropriations during the
130

Title III

•HR 1345 PCS

1 year, and (with respect to appropriations and funds

2 available for an indefinite period and all authoriza3 tions to create obligations by contract in advance of

4 appropriations) apportioning the total of such appro5 priations, funds, or authorizations in the most effec6 tive and economical manner.

7 ‘‘(14) Certifying all contracts (whether directly

8 or through delegation) prior to execution as to the

9 availability of funds to meet the obligations expected

10 to be incurred by the District government under

11 such contracts during the year.

12 ‘‘(15) Prescribing the forms of receipts, vouch13 ers, bills, and claims to be used by all agencies, of14 fices, and instrumentalities of the District govern15 ment.

16 ‘‘(16) Certifying and approving prior to pay17 ment all bills, invoices, payrolls, and other evidences

18 of claims, demands, or charges against the District

19 government, and determining the regularity, legality,

20 and correctness of such bills, invoices, payrolls,

21 claims, demands, or charges.

22 ‘‘(17) In coordination with the Inspector Gen23 eral of the District of Columbia, performing internal

24 audits of accounts and operations and records of the

25 District government, including the examination of
131

Title III

•HR 1345 PCS

1 any accounts or records of financial transactions,

2 giving due consideration to the effectiveness of ac3 counting systems, internal control, and related ad4 ministrative practices of the departments and agen5 cies of the District government.

6 ‘‘(d) FUNCTIONS DURING ALL YEARS.—At all times,

7 the Chief Financial Officer shall have the following duties:

8 ‘‘(1) Exercising responsibility for the adminis9 tration and supervision of the District of Columbia

10 Treasurer (except that the Chief Financial Officer

11 may delegate any portion of such responsibility as

12 the Chief Financial Officer considers appropriate

13 and consistent with efficiency).

14 ‘‘(2) Administering all borrowing programs of

15 the District government for the issuance of long16 term and short-term indebtedness.

17 ‘‘(3) Administering the cash management pro18 gram of the District government, including the in19 vestment of surplus funds in governmental and non20 governmental interest-bearing securities and ac21 counts.

22 ‘‘(4) Administering the centralized District gov23 ernment payroll and retirement systems.

24 ‘‘(5) Governing the accounting policies and sys25 tems applicable to the District government.
132

Title III

•HR 1345 PCS

1 ‘‘(6) Preparing appropriate annual, quarterly,

2 and monthly financial reports of the accounting and

3 financial operations of the District government.

4 ‘‘(7) Not later than 120 days after the end of

5 each fiscal year (beginning with fiscal year 1995),

6 preparing the complete financial statement and re7 port on the activities of the District government for

8 such fiscal year, for the use of the Mayor under sec9 tion 448(a)(4) of the District of Columbia Self-Gov10 ernment and Governmental Reorganization Act.

11 ‘‘(e) FUNCTIONS OF TREASURER.—At all times, the

12 Treasurer shall have the following duties:

13 ‘‘(1) Assisting the Chief Financial Officer in re14 porting revenues received by the District govern15 ment, including submitting annual and quarterly re16 ports concerning the cash position of the District

17 government not later than 60 days after the last day

18 of the quarter (or year) involved. Such reports shall

19 include:

20 ‘‘(A) Comparative reports of revenue and

21 other receipts by source, including tax, nontax,

22 and Federal revenues, grants and reimburse23 ments, capital program loans, and advances.

24 Each source shall be broken down into specific

25 components.
133

Title III

•HR 1345 PCS

1 ‘‘(B) Statements of the cash flow of the

2 District government for the preceding quarter

3 or year, including receipts, disbursements, net

4 changes in cash inclusive of the beginning bal5 ance, cash and investment, and the ending bal6 ance, inclusive of cash and investment. Such

7 statements shall reflect the actual, planned, bet8 ter or worse dollar amounts and the percentage

9 change with respect to the current quarter,

10 year-to-date, and fiscal year.

11 ‘‘(C) Quarterly cash flow forecast for the

12 quarter or year involved, reflecting receipts, dis13 bursements, net change in cash inclusive of the

14 beginning balance, cash and investment, and

15 the ending balance, inclusive of cash and invest16 ment with respect to the actual dollar amounts

17 for the quarter or year, and projected dollar

18 amounts for each of the 3 succeeding quarters.

19 ‘‘(D) Monthly reports reflecting a detailed

20 summary analysis of all District of Columbia

21 government investments, including, but not lim22 ited to—

23 ‘‘(i) the total of long-term and short24 term investments;
134

Title III

•HR 1345 PCS

1 ‘‘(ii) a detailed summary analysis of

2 investments by type and amount, including

3 purchases, sales (maturities), and interest;

4 ‘‘(iii) an analysis of investment port5 folio mix by type and amount, including li6 quidity, quality/risk of each security, and

7 similar information;

8 ‘‘(iv) an analysis of investment strat9 egy, including near-term strategic plans

10 and projects of investment activity, as well

11 as forecasts of future investment strategies

12 based on anticipated market conditions,

13 and similar information;

14 ‘‘(v) an analysis of cash utilization, in15 cluding—

16 ‘‘(I) comparisons of budgeted

17 percentages of total cash to be in18 vested with actual percentages of cash

19 invested and the dollar amounts;

20 ‘‘(II) comparisons of the next re21 turn on invested cash expressed in

22 percentages (yield) with comparable

23 market indicators and established Dis24 trict of Columbia government yield ob25 jectives; and
135

Title III

•HR 1345 PCS

1 ‘‘(III) comparisons of estimated

2 dollar return against actual dollar

3 yield.

4 ‘‘(E) Monthly reports reflecting a detailed

5 summary analysis of long-term and short-term

6 borrowings inclusive of debt as authorized by

7 section 603, in the current fiscal year and the

8 amount of debt for each succeeding fiscal year

9 not to exceed 5 years. All such reports shall

10 reflect—

11 ‘‘(i) the amount of debt outstanding

12 by type of instrument;

13 ‘‘(ii) the amount of authorized and

14 unissued debt, including availability of

15 short-term lines of credit, United States

16 Treasury borrowings, and similar informa17 tion;

18 ‘‘(iii) a maturity schedule of the debt;

19 ‘‘(iv) the rate of interest payable upon

20 the debt; and

21 ‘‘(v) the amount of debt service re22 quirements and related debt service re23 serves.
136

Title III

•HR 1345 PCS

1 ‘‘(2) Such other functions assigned to the Chief

2 Financial Officer under subsection (c) or subsection

3 (d) as the Chief Financial Officer may delegate.

4 ‘‘(f) DEFINITIONS.—In this section—

5 ‘‘(1) the term ‘Authority’ means the District of

6 Columbia Financial Responsibility and Management

7 Assistance Authority established under section

8 101(a) of the District of Columbia Financial Re9 sponsibility and Management Assistance Act of

10 1995;

11 ‘‘(2) the term ‘control year’ has the meaning

12 given such term under section 305(4) of such Act;

13 and

14 ‘‘(3) the term ‘District government’ has the

15 meaning given such term under section 305(5) of

16 such Act.’’.

17 (b) PROHIBITING DELEGATION OF CHIEF FINANCIAL

18 OFFICER’S AUTHORITY.—Section 422(6) of the District

19 of Columbia Self-Government and Governmental Reorga20 nization Act (sec. 1–242(6), D.C. Code) is amended by

21 adding at the end the following: ‘‘Nothing in the previous

22 sentence may be construed to permit the Mayor to dele23 gate any functions assigned to the Chief Financial Officer

24 of the District of Columbia under section 424, without re25 gard to whether such functions are assigned to the Chief
137

Title III

•HR 1345 PCS

1 Financial Officer under such section during a control year

2 (as defined in section 305(4) of the District of Columbia

3 Financial Responsibility and Management Assistance Act

4 of 1995) or during any other year.’’.

5 (c) CONFORMING AMENDMENT.—Effective upon the

6 appointment of the Chief Financial Officer of the District

7 of Columbia under section 424(b) of the District of Co8 lumbia Self-Government and Governmental Reorganiza9 tion Act (as added by subsection (a)), D.C. Law 3–138

10 (sec. 47–314 et seq., D.C. Code) is repealed.

11 (d) CLERICAL AMENDMENT.—The table of contents

12 of part B of title IV of the District of Columbia Self-Gov13 ernment and Governmental Reorganization Act is amend14 ed by adding at the end the following new item:

‘‘Sec. 424. Chief Financial Officer of the District of Columbia.’’.

15 SEC. 303. REVISIONS TO POWERS AND DUTIES OF INSPEC16 TOR GENERAL OF DISTRICT OF COLUMBIA.

17 (a) APPOINTMENT AND TERM OF SERVICE; INDE18 PENDENCE OF BUDGET.—Section 208(a) of the District

19 of Columbia Procurement Practices Act

20 of 1985 (sec. 1–1182.8(a), D.C. Code) is

21 amended by striking paragraphs (1) and (2) and inserting

22 the following:

23 ‘‘(1)(A) There is created within the executive branch

24 of the government of the District of Columbia the Office

25 of the Inspector General. The Office shall be headed by
138

Title III

•HR 1345 PCS

1 an Inspector General appointed pursuant to subparagraph

2 (B), who shall serve for a term of 6 years and shall be

3 subject to removal only for cause by the Mayor (with the

4 approval of the District of Columbia Financial Respon5 sibility and Management Assistance Authority in a control

6 year) or (in the case of a control year) by the Authority.

7 The Inspector General may be reappointed for additional

8 terms.

9 ‘‘(B) During a control year, the Inspector General

10 shall be appointed by the Mayor as follows:

11 ‘‘(i) Prior to the appointment of the Inspector

12 General, the Authority may submit recommendations

13 for the appointment to the Mayor.

14 ‘‘(ii) In consultation with the Authority and the

15 Council, the Mayor shall nominate an individual for

16 appointment and notify the Council of the nomina17 tion.

18 ‘‘(iii) After the expiration of the 7-day period

19 which begins on the date the Mayor notifies the

20 Council of the nomination under clause (ii), the

21 Mayor shall notify the Authority of the nomination.

22 ‘‘(iv) The nomination shall be effective subject

23 to approval by a majority vote of the Authority.

24 ‘‘(C) During a year which is not a control year, the

25 Inspector General shall be appointed by the Mayor with
139

Title III

•HR 1345 PCS

1 the advice and consent of the Council. Prior to appoint2 ment, the Authority may submit recommendations for the

3 appointment.

4 ‘‘(D) The Inspector General shall be appointed with5 out regard to party affiliation and solely on the basis of

6 integrity and demonstrated ability in accounting, auditing,

7 financial management analysis, public administration, or

8 investigations.

9 ‘‘(E) The Inspector General shall be paid at an an10 nual rate determined by the Mayor, except that such rate

11 may not exceed the rate of basic pay payable for level IV

12 of the Executive Schedule.

13 ‘‘(2) The annual budget for the Office shall be adopt14 ed as follows:

15 ‘‘(A) The Inspector General shall prepare and

16 submit to the Mayor, for inclusion in the annual

17 budget of the District of Columbia under part D of

18 title IV of the District of Columbia Self-Government

19 and Governmental Reorganization Act for the year,

20 annual estimates of the expenditures and appropria21 tions necessary for the operation of the Office for

22 the year. All such estimates shall be forwarded by

23 the Mayor to the Council of the District of Columbia

24 for its action pursuant to sections 446 and 603(c)

25 of such Act, without revision but subject to rec-
140

Title III

•HR 1345 PCS

1 ommendations. Notwithstanding any other provision

2 of such Act, the Council may comment or make rec3 ommendations concerning such estimates, but shall

4 have no authority to revise such estimates.

5 ‘‘(B) Upon receipt of the annual Federal pay6 ment for the District of Columbia authorized under

7 title V of the District of Columbia Self-Government

8 and Governmental Reorganization Act, the Mayor

9 shall deposit a portion of the payment (equal to the

10 estimate of necessary appropriations described in

11 subparagraph (A)) into a dedicated fund within the

12 government of the District of Columbia.

13 ‘‘(C) Amounts deposited in the dedicated fund

14 described in subparagraph (B) shall be available

15 solely for the operation of the Office, and shall be

16 paid to the Inspector General by the Mayor (acting

17 through the Chief Financial Officer of the District

18 of Columbia) in such installments and at such times

19 as the Inspector General requires.’’.

20 (b) ADDITIONAL POWERS AND DUTIES.—

21 (1) IN GENERAL.—Section 208(a)(3) of the

22 District of Columbia Procurement Practices Act of

23 1985 (sec. 1–1182.8(a)(3), D.C. Code) is amend24 ed—
141

Title III

•HR 1345 PCS

1 (A) by striking ‘‘and’’ at the end of sub2 paragraph (E);

3 (B) by striking the period at the end of

4 subparagraph (F) and inserting a semicolon;

5 and

6 (C) by adding at the end the following new

7 subparagraphs:

8 ‘‘(G) Pursuant to a contract described in para9 graph (4), provide certifications under section

10 602(b)(5) of title VI of the District of Columbia

11 Revenue Act of 1939;

12 ‘‘(H) Pursuant to a contract described in para13 graph (4), audit the complete financial statement

14 and report on the activities of the District govern15 ment for such fiscal year, for the use of the Mayor

16 under section 448(a)(4) of the District of Columbia

17 Self-Government and Governmental Reorganization

18 Act; and

19 ‘‘(I) Not later than 30 days before the begin20 ning of each fiscal year (beginning with fiscal year

21 1996) and in consultation with the Mayor, the

22 Council, and the Authority, establish an annual plan

23 for audits to be conducted under this paragraph dur24 ing the fiscal year under which the Inspector Gen25 eral shall report only those variances which are in an
142

Title III

•HR 1345 PCS

1 amount equal to or greater than $1,000,000 or 1

2 percent of the applicable annual budget for the pro3 gram in which the variance is found (whichever is

4 lesser).’’.

5 (2) LIMITATION ON CONTRACT WITH OUTSIDE

6 AUDITOR.—Section 208(a) of such Act (sec. 1–

7 1182.8(a), D.C. Code) is amended by adding at the

8 end the following new paragraph:

9 ‘‘(4) The Inspector General shall enter into a contract

10 with an auditor who is not an officer or employee of the

11 Office to—

12 ‘‘(A) audit the financial statement and report

13 described in paragraph (3)(H) for a fiscal year, ex14 cept that the financial statement and report may not

15 be audited by the same auditor (or an auditor em16 ployed by or affiliated with the same auditor) for

17 more than 3 consecutive fiscal years; and

18 ‘‘(B) audit the certification described in para19 graph (3)(G).’’.

20 (3) SUBPOENA POWER.—Section 208(c) of such

21 Act (sec. 1–1182.8(c), D.C. Code) is amended—

22 (A) by striking ‘‘(c)’’ and inserting

23 ‘‘(c)(1)’’; and

24 (B) by adding at the end the following new

25 paragraph:
143

Title III

•HR 1345 PCS

1 ‘‘(2)(A) The Inspector General may issue subpoenas

2 requiring the attendance and testimony of witnesses and

3 the production of any evidence relating to any matter

4 under investigation by the Inspector General.

5 ‘‘(B) If a person refuses to obey a subpoena issued

6 under subparagraph (A), the Inspector General may apply

7 to the Superior Court of the District of Columbia for an

8 order requiring that person to appear before the Inspector

9 General to give testimony, produce evidence, or both, re10 lating to the matter under investigation. Any failure to

11 obey the order of the court may be punished by the Supe12 rior Court as civil contempt.’’.

13 (4) REFERRAL OF FINDINGS OF CRIMINAL AC14 TIVITY TO ATTORNEY GENERAL.—Section 208 of

15 such Act (sec. 1–1182.8, D.C. Code) is amended by

16 adding at the end the following new subsection:

17 ‘‘(f) In carrying out the duties and responsibilities es18 tablished under this section, the Inspector General shall

19 report expeditiously to the Attorney General whenever the

20 Inspector General has reasonable grounds to believe there

21 has been a violation of Federal or District criminal law.’’.

22 (c) REVISION OF CURRENT POWERS AND DUTIES.—

23 (1) LIAISON REPRESENTATIVE FOR ALL EXTER24 NAL AUDITS OF DISTRICT GOVERNMENT.—Section

25 208(a)(3)(B) of such Act (sec. 1–1182.8(a)(3)(B),
144

Title III

•HR 1345 PCS

1 D.C. Code) is amended by striking ‘‘executive

2 branch’’.

3 (2) APPLICATION OF GENERALLY ACCEPTED

4 ACCOUNTING PRINCIPLES.—Section 208(b) of such

5 Act (sec. 1–1182.8(b), D.C. Code) is amended by in6 serting ‘‘accounting and’’ after ‘‘accepted’’.

7 (3) ACCESS TO ALL NECESSARY RECORDS.—

8 Section 208(c)(1) of such Act (sec. 1–1182.8(c),

9 D.C. Code), as amended by subsection (b)(3), is

10 amended by striking ‘‘relating to contracts and pro11 curement’’.

12 (4) SUBMISSION OF REPORTS TO AUTHORITY

13 DURING CONTROL YEAR.—Section 208(d) of such

14 Act (sec. 1–1182.8(d), D.C. Code) is amended—

15 (A) in paragraph (1), by striking ‘‘the

16 Mayor and the Council’’ and inserting ‘‘the Au17 thority (or, with respect to a fiscal year which

18 is not a control year, the Mayor and the Coun19 cil)’’; and

20 (B) in paragraph (2), by striking ‘‘the

21 Mayor’’ and inserting ‘‘the Authority, the

22 Mayor,’’.

23 (5) MAKING REPORTS PUBLICLY AVAILABLE.—

24 Section 208(d) of such Act (sec. 1–1182.8(d), D.C.
145

Title III

•HR 1345 PCS

1 Code) is amended by adding at the end the following

2 new paragraph:

3 ‘‘(4) The Inspector General shall make each report

4 submitted under this subsection available to the public, ex5 cept to the extent that the report contains information de6 termined by the Inspector General to be privileged.’’.

7 (6) RESPONDING TO REQUESTS OF AUTHOR8 ITY.—Section 208(e) of such Act (sec. 1–1182.8(e),

9 D.C. Code) is amended by striking ‘‘the Director’’

10 and inserting ‘‘the Authority’’.

11 (d) DEFINITIONS.—Section 208 of such Act (sec. 1–

12 1182.8, D.C. Code), as amended by subsection (b)(4), is

13 amended by adding at the end the following new sub14 section:

15 ‘‘(g) In this section—

16 ‘‘(1) the term ‘Authority’ means the District of

17 Columbia Financial Responsibility and Management

18 Assistance Authority established under section

19 101(a) of the District of Columbia Financial Re20 sponsibility and Management Assistance Act of

21 1995;

22 ‘‘(2) the term ‘control year’ has the meaning

23 given such term under section 305(4) of such Act;

24 and
146

Title III

•HR 1345 PCS

1 ‘‘(3) the term ‘District government’ has the

2 meaning given such term under section 305(5) of

3 such Act.’’.

4 (e) DEADLINE FOR APPOINTMENT.—

5 (1) IN GENERAL.—Not later than 30 days after

6 its members are appointed, the Authority shall ap7 point the Inspector General of the District of Colum8 bia pursuant to section 208(a)(1) of the District of

9 Columbia Procurement Practices Act of 1985 (as

10 amended by subsection (a)).

11 (2) TRANSITION RULE.—The term of service of

12 the individual serving as the Inspector General

13 under section 208(a) of the District of Columbia

14 Procurement Practices Act of 1985 prior to the ap15 pointment of the Inspector General by the Authority

16 under section 208(a)(1) of such Act (as amended by

17 subsection (a)) shall expire upon the appointment of

18 the Inspector General by the Authority.

19 SEC. 304. COUNCIL APPROVAL OF CERTAIN CONTRACTS.

20 (a) IN GENERAL.—Section 451 of the District of Co21 lumbia Self-Government and Governmental Reorganiza22 tion Act (sec. 1–1130, D.C. Code) is amended—

23 (1) by amending the heading to read as follows:

24 ‘‘SPECIAL RULES REGARDING CERTAIN CONTRACTS’’;
147

Title III

•HR 1345 PCS

1 (2) by striking ‘‘No contract’’ and inserting

2 ‘‘(a) CONTRACTS EXTENDING BEYOND ONE

3 YEAR.—No contract’’; and

4 (3) by adding at the end the following new sub5 section:

6 ‘‘(b) CONTRACTS EXCEEDING CERTAIN AMOUNT.—

7 ‘‘(1) IN GENERAL.—No contract involving ex8 penditures in excess of $1,000,000 during a 12-

9 month period may be made unless the Mayor sub10 mits the contract to the Council for its approval and

11 the Council approves the contract (in accordance

12 with criteria established by act of the Council).

13 ‘‘(2) DEEMED APPROVAL.—For purposes of

14 paragraph (1), the Council shall be deemed to ap15 prove a contract if—

16 ‘‘(A) during the 10-day period beginning

17 on the date the Mayor submits the contract to

18 the Council, no member of the Council intro19 duces a resolution approving or disapproving

20 the contract; or

21 ‘‘(B) during the 45-calendar day period be22 ginning on the date the Mayor submits the con23 tract to the Council, the Council does not dis24 approve the contract.’’.
148

Title III

•HR 1345 PCS

1 (b) CLERICAL AMENDMENT.—The table of contents

2 of the District of Columbia Self-Government and Govern3 mental Reorganization Act is amended by amending the

4 item relating to section 451 to read as follows:

‘‘Sec. 451. Special rules regarding certain contracts.’’.

5 (c) EFFECTIVE DATE.—The amendments made by

6 this section shall apply to contracts made on or after the

7 date of the enactment of this Act.

8 SEC. 305. DEFINITIONS.

9 In this Act, the following definitions apply:

10 (1) The term ‘‘Authority’’ means the District of

11 Columbia Financial Responsibility and Management

12 Assistance Authority established under section

13 101(a).

14 (2) The term ‘‘Council’’ means the Council of

15 the District of Columbia.

16 (3) The term ‘‘control period’’ has the meaning

17 given such term in section 209.

18 (4) The term ‘‘control year’’ means any fiscal

19 year for which a financial plan and budget approved

20 by the Authority under section 202(b) is in effect,

21 and includes fiscal year 1996.

22 (5) The term ‘‘District government’’ means the

23 government of the District of Columbia, including

24 any department, agency or instrumentality of the

25 government of the District of Columbia; any inde-
149

Title III

•HR 1345 PCS

1 pendent agency of the District of Columbia estab2 lished under part F of title IV of the District of Co3 lumbia Self-Government and Governmental Reorga4 nization Act or any other agency, board, or commis5 sion established by the Mayor or the Council; the

6 courts of the District of Columbia; the Council of

7 the District of Columbia; and any other agency, pub8 lic authority, or public benefit corporation which has

9 the authority to receive monies directly or indirectly

10 from the District of Columbia (other than monies re11 ceived from the sale of goods, the provision of serv12 ices, or the loaning of funds to the District of Co13 lumbia), except that such term does not include the

14 Authority.

15 (6) The term ‘‘financial plan and budget’’

16 means a financial plan and budget described in sub17 title A of title II, and includes the budgets of the

18 District government for the fiscal years which are

19 subject to the financial plan and budget (as de20 scribed in section 201(b)).

21 (7) The term ‘‘Mayor’’ means the Mayor of the

22 District of Columbia.

Passed the House of Representatives April 3, 1995.

Attest: ROBIN H. CARLE,

Clerk.

HR 1345 PCS——2
150

Title III

•HR 1345 PCS

HR 1345 PCS——3

HR 1345 PCS——4

HR 1345 PCS——5

HR 1345 PCS——6

HR 1345 PCS——7

HR 1345 PCS——8

HR 1345 PCS——9

HR 1345 PCS——10

HR 1345 PCS——11