I

104TH CONGRESS

1ST SESSION H. R. 1345

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.

IN THE HOUSE OF REPRESENTATIVES

MARCH 29, 1995

Mr. DAVIS (for himself, Ms. NORTON, Mr. WALSH, Mr. DIXON, Mr. CLINGER,

Mrs. COLLINS of Illinois, Mr. MCHUGH, Mr. GUTKNECHT, Mr.

LATOURETTE, Mr. FLANAGAN, Mr. FATTAH, Miss COLLINS of Michigan,

Mr. WOLF, Mr. MORAN, Mrs. MORELLA, and Mr. WYNN) introduced the

following bill; which was referred to the Committee on Government Reform and Oversight

A BILL

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,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘‘District of Columbia Financial Responsibility and Man4 agement Assistance Act of 1995’’.

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

6 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.
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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.

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
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1 adversely affected the long-term economic health of

2 the District of Columbia by causing the migration of

3 residents and business out of the District of Colum4 bia and the failure of new residents and businesses

5 to move to the District of Columbia.

6 (4) The fiscal and management problems in the

7 District of Columbia government are pervasive

8 across all segments of the government.

9 (5) A comprehensive approach to fiscal, man10 agement, and structural problems must be under11 taken which exempts no part of the District govern12 ment and which preserves home rule for the citizens

13 of the District of Columbia.

14 (6) The current deficit of the District of Colum15 bia must be resolved over a multi-year period, since

16 it cannot be effectively addressed in a single year.

17 (7) The ability of the District government to

18 obtain funds from capital markets in the future will

19 be severely diminished without Congressional action

20 to restore its financial stability.

21 (8) The failure to improve the financial situa22 tion of the District government will adversely affect

23 the long-term economic health of the entire National

24 Capital region.
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1 (9) The efficient operation of the Federal Gov2 ernment may be adversely affected by the current

3 problems of the District of Columbia not only

4 through the services the District government pro5 vides directly to the Federal Government but

6 through services provided indirectly such as street

7 and traffic flow maintenance, public safety, and

8 services affecting tourism.

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

10 follows:

11 (1) To eliminate budget deficits and cash short12 ages of the District of Columbia through visionary

13 financial planning, sound budgeting, accurate reve14 nue forecasts, and careful spending.

15 (2) To ensure the most efficient and effective

16 delivery of services, including public safety services,

17 by the District government during a period of fiscal

18 emergency.

19 (3) To conduct necessary investigations and

20 studies to determine the fiscal status and oper21 ational efficiency of the District government.

22 (4) To assist the District government in—

23 (A) restructuring its organization and

24 workforce to ensure that the residents of the
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1 District of Columbia are served by a local gov2 ernment that is efficient and effective;

3 (B) achieving an appropriate relationship

4 with the Federal Government;

5 (C) ensuring the appropriate and efficient

6 delivery of services; and

7 (D) modernizing its budget, accounting,

8 personnel, procurement, information technology,

9 and management systems to ensure the maxi10 mum financial and performance accountability

11 of the District government and its officers and

12 employees.

13 (5) To enhance the District government’s ac14 cess to the capital markets and to ensure the contin15 ued orderly payment of its debt service obligations.

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

17 and economic vitality and operational efficiency of

18 the District of Columbia.

19 (7) To examine the programmatic and struc20 tural relationship between the District government

21 and the Federal Government.

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

23 impact of activities of the District government before

24 such activities are implemented or submitted for

25 Congressional review.
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1 (c) RULES OF CONSTRUCTION.—Nothing in this Act

2 may be construed—

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

4 date of the enactment of this Act of the District gov5 ernment to repay any individual or entity from

6 whom the District has borrowed funds, whether

7 through the issuance of bonds or otherwise; or

8 (2) to limit the authority of Congress to exer9 cise ultimate legislative authority over the District of

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

11 of the Constitution of the United States.

12 TITLE I—ESTABLISHMENT AND

13 ORGANIZATION OF AUTHORITY

14 SEC. 101. DISTRICT OF COLUMBIA FINANCIAL RESPON15 SIBILITY AND MANAGEMENT ASSISTANCE AU16 THORITY.

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

18 8, clause 17 of the Constitution of the United States, there

19 is hereby established the District of Columbia Financial

20 Responsibility and Management Assistance Authority,

21 consisting of members appointed by the President in ac22 cordance with subsection (b). Subject to the conditions de23 scribed in section 108 and except as otherwise provided

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

25 the government of the District of Columbia, and is not
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1 established as a department, agency, establishment, or in2 strumentality of the United States Government.

3 (b) MEMBERSHIP.—

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

5 of 5 members appointed by the President who meet

6 the qualifications described in subsection (c), except

7 that the Authority may take any action under this

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

9 time after the President has appointed 3 of its mem10 bers.

11 (2) CONSULTATION WITH CONGRESS.—The

12 President shall appoint the members of the Author13 ity after consulting with the Chair of the Committee

14 on Appropriations and the Chair of the Committee

15 on Government Reform and Oversight of the House

16 of Representatives, the Chair of the Committee on

17 Appropriations and the Chair of the Committee on

18 Governmental Affairs of the Senate, and the Dele19 gate to the House of Representatives from the Dis20 trict of Columbia.

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

22 of the members of the Authority as the Chair of the

23 Authority.

24 (4) SENSE OF CONGRESS REGARDING DEAD25 LINE FOR APPOINTMENT.—It is the sense of Con-
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1 gress that the President should appoint the members

2 of the Authority as soon as practicable after the

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

4 later than 25 days after the date of the enactment

5 of this Act.

6 (5) TERM OF SERVICE.—

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

8 subparagraph (B), each member of the Author9 ity shall be appointed for a term of 3 years.

10 (B) APPOINTMENT FOR TERM FOLLOWING

11 INITIAL TERM.—As designated by the President

12 at the time of appointment for the term imme13 diately following the initial term, of the mem14 bers appointed for the term immediately follow15 ing the initial term—

16 (i) 1 member shall be appointed for a

17 term of 1 year;

18 (ii) 2 members shall be appointed for

19 a term of 2 years; and

20 (iii) 2 members shall be appointed for

21 a term of 3 years.

22 (C) REMOVAL.—The President may re23 move any member of the Authority only for

24 cause.
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1 (c) QUALIFICATIONS FOR MEMBERSHIP.—An indi2 vidual meets the qualifications for membership on the Au3 thority if the individual—

4 (1) has knowledge and expertise in finance,

5 management, and the organization or operation of

6 business or government;

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

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

9 child, or sibling of an individual who provides goods

10 and services to the District government);

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

12 government; and

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

14 appointment, paid personal income or business taxes

15 to the District government.

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

17 the Authority shall serve without pay, but may receive re18 imbursement for any reasonable and necessary expenses

19 incurred by reason of service on the Authority.

20 (e) ADOPTION OF BY-LAWS FOR CONDUCTING BUSI21 NESS OF AUTHORITY.—

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

23 the appointment of its members, the Authority shall

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

25 activities under this Act, including procedures for
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1 hiring experts and consultants. Such by-laws, rules,

2 and procedures shall be public documents, and shall

3 be submitted by the Authority upon adoption to the

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

5 (2) CERTAIN ACTIVITIES REQUIRING APPROVAL

6 OF MAJORITY OF MEMBERS.—Under the by-laws

7 adopted pursuant to paragraph (1), the Authority

8 may conduct its operations under such procedures as

9 it considers appropriate, except that an affirmative

10 vote of a majority of the members the Authority

11 shall be required in order for the Authority to—

12 (A) approve or disapprove a financial plan

13 and budget under subtitle A of title II;

14 (B) implement recommendations on finan15 cial stability and management responsibility

16 under section 207;

17 (C) give consent to the appointment of the

18 Chief Financial Officer of the District of Co19 lumbia under section 424 of the District of Co20 lumbia Self-Government and Governmental Re21 organization Act (as added by section 302); and

22 (D) give consent to the appointment of the

23 Inspector General of the District of Columbia

24 under section 208(a) of the District of Colum-
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1 bia Procurement Practices Act of 1985 (as

2 amended by section 303(a)).

3 (3) ADOPTION OF RULES AND REGULATIONS OF

4 DISTRICT OF COLUMBIA.—The Authority may incor5 porate in its by-laws, rules, and procedures under

6 this subsection such rules and regulations of the

7 District government as it considers appropriate to

8 enable it to carry out its activities under this Act

9 with the greatest degree of independence practicable.

10 SEC. 102. EXECUTIVE DIRECTOR AND STAFF OF AUTHOR11 ITY.

12 (a) EXECUTIVE DIRECTOR.—The Authority shall

13 have an Executive Director who shall be appointed by the

14 Chair with the consent of the Authority. The Executive

15 Director shall be paid at a rate determined by the Author16 ity, except that such rate may not exceed the rate of basic

17 pay payable for level IV of the Executive Schedule.

18 (b) STAFF.—With the approval of the Chair, the Ex19 ecutive Director may appoint and fix the pay of additional

20 personnel as the Executive Director considers appropriate,

21 except that no individual appointed by the Executive Di22 rector may be paid at a rate greater than the rate of pay

23 for the Executive Director.

24 (c) INAPPLICABILITY OF CERTAIN CIVIL SERVICE

25 LAWS.—The Executive Director and staff of the Authority
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1 may be appointed without regard to the provisions of title

2 5, United States Code, governing appointments in the

3 competitive service, and may be paid without regard to

4 the provisions of chapter 51 and subchapter III of chapter

5 53 of that title relating to classification and General

6 Schedule pay rates.

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

8 of the Chair, the head of any Federal department or agen9 cy may detail, on a reimbursable or non-reimbursable

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

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

12 under this Act.

13 (e) PRESERVATION OF RETIREMENT AND CERTAIN

14 OTHER RIGHTS OF FEDERAL EMPLOYEES WHO BECOME

15 EMPLOYED BY THE AUTHORITY.—

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

17 within 2 months after separating from the Federal

18 Government, becomes employed by the Authority—

19 (A) may elect, for purposes of the retire20 ment system in which that individual last par21 ticipated before so separating, to have such in22 dividual’s period of service with the Authority

23 treated in the same way as if performed in the

24 position within the Federal Government from

25 which separated, subject to the requisite em-
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1 ployee deductions and agency contributions

2 being currently deposited in the appropriate

3 fund; and

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

5 such employee becomes reemployed by the Fed6 eral Government, shall be entitled to credit, for

7 the full period of such individual’s service with

8 the Authority, for purposes of determining the

9 applicable leave accrual rate.

10 (2) RETIREMENT.—

11 (A) CONTRIBUTIONS.—For purposes of

12 subparagraph (A) of paragraph (1)—

13 (i) the employee deductions referred

14 to in such paragraph shall be made from

15 basic pay for service with the Authority,

16 and shall be computed using the same per17 centage as would then apply if the individ18 ual were instead serving in the position

19 within the Federal Government from which

20 separated; and

21 (ii) the agency contributions referred

22 to in such paragraph shall be made by the

23 Authority.

24 (B) DOUBLE COVERAGE NOT PER25 MITTED.—An individual who makes an election
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1 under paragraph (1)(A) shall be ineligible, while

2 such election remains in effect, to participate in

3 any retirement system for employees of the gov4 ernment of the District of Columbia.

5 (3) REGULATIONS.—The Office of Personnel

6 Management shall prescribe such regulations as may

7 be necessary to carry out this subsection. Regula8 tions to carry out paragraph (1)(A) shall be pre9 scribed in consultation with the office or agency of

10 the government of the District of Columbia having

11 jurisdiction over any retirement system referred to

12 in paragraph (2)(B).

13 SEC. 103. POWERS OF AUTHORITY.

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

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

16 sit and act at times and places, take testimony, and re17 ceive evidence as the Authority considers appropriate. The

18 Authority may administer oaths or affirmations to wit19 nesses appearing before it.

20 (b) POWERS OF MEMBERS AND AGENTS.—Any mem21 ber or agent of the Authority may, if authorized by the

22 Authority, take any action which the Authority is author23 ized to take by this section.

24 (c) OBTAINING OFFICIAL DATA.—
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1 (1) FROM FEDERAL GOVERNMENT.—Notwith2 standing sections 552 (commonly known as the

3 Freedom of Information Act) and 552b (the Govern4 ment in the Sunshine Act) of title 5, United States

5 Code, the Authority may secure directly from any

6 department or agency of the United States informa7 tion necessary to enable it to carry out this Act,

8 with the approval of the head of that department or

9 agency.

10 (2) FROM DISTRICT GOVERNMENT.—Notwith11 standing any other provision of law, the Authority

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

13 documents, information, or data from any entity of

14 the District government necessary to enable the Au15 thority to carry out its responsibilities under this

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

17 shall be granted direct access to such information

18 systems, records, documents or information or data

19 as will enable the Authority to carry out its respon20 sibilities under this Act. The head of the entity of

21 the District government responsible shall provide the

22 Authority with such information and assistance (in23 cluding granting the Authority direct access to auto24 mated or other information systems) as the Author25 ity requires under this paragraph.
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1 (d) GIFTS, BEQUESTS, AND DEVISES.—The Author2 ity may accept, use, and dispose of gifts, bequests, or de3 vises of services or property, both real and personal, for

4 the purpose of aiding or facilitating the work of the Au5 thority. Gifts, bequests, or devises of money and proceeds

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

7 or devises shall be deposited in such account as the Au8 thority may establish and shall be available for disburse9 ment upon order of the Chair.

10 (e) SUBPOENA POWER.—

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

12 subpoenas requiring the attendance and testimony of

13 witnesses and the production of any evidence relat14 ing to any matter under investigation by the Author15 ity. The attendance of witnesses and the production

16 of evidence may be required from any place within

17 the United States at any designated place of hearing

18 within the United States.

19 (2) FAILURE TO OBEY A SUBPOENA.—If a per20 son refuses to obey a subpoena issued under para21 graph (1), the Authority may apply to a United

22 States district court for an order requiring that per23 son to appear before the Authority to give testimony,

24 produce evidence, or both, relating to the matter

25 under investigation. The application may be made
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1 within the judicial district where the hearing is con2 ducted or where that person is found, resides, or

3 transacts business. Any failure to obey the order of

4 the court may be punished by the court as civil

5 contempt.

6 (3) SERVICE OF SUBPOENAS.—The subpoenas

7 of the Authority shall be served in the manner pro8 vided for subpoenas issued by United States district

9 court under the Federal Rules of Civil Procedure for

10 the United States district courts.

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

12 court to which application is be made under para13 graph (2) may be served in the judicial district in

14 which the person required to be served resides or

15 may be found.

16 (f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the

17 request of the Authority, the Administrator of General

18 Services may provide to the Authority, on a reimbursable

19 basis, the administrative support services necessary for the

20 Authority to carry out its responsibilities under this Act.

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

22 Executive Director may enter into such contracts as the

23 Executive Director considers appropriate (subject to the

24 approval of the Chair) to carry out the Authority’s respon25 sibilities under this Act.
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1 (h) CIVIL ACTIONS TO ENFORCE POWERS.—The Au2 thority may seek judicial enforcement of its authority to

3 carry out its responsibilities under this Act.

4 (i) PENALTIES.—

5 (1) ACTS PROHIBITED.—Any officer or em6 ployee of the District government who—

7 (A) takes any action in violation of any

8 valid order of the Authority or fails or refuses

9 to take any action required by any such order;

10 or

11 (B) prepares, presents, or certifies any in12 formation (including any projections or esti13 mates) or report for the Board or any of its

14 agents that is false or misleading, or, upon

15 learning that any such information is false or

16 misleading, fails to immediately advise the

17 Board or its agents thereof in writing,

18 shall be guilty of a misdemeanor.

19 (2) ADMINISTRATIVE DISCIPLINE.—In addition

20 to any other applicable penalty, any officer or em21 ployee of the District government who knowingly

22 and willfully violates paragraph (1) shall be subject

23 to appropriate administrative discipline, including

24 (when appropriate) suspension from duty without
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1 pay or removal from office by order of either the

2 Mayor or Authority.

3 (3) REPORT BY MAYOR ON DISCIPLINARY AC4 TIONS TAKEN.—In the case of a violation of para5 graph (1) by an officer or employee of the District

6 government, the Mayor shall immediately report to

7 the Board all pertinent facts together with a state8 ment of the action taken thereon.

9 SEC. 104. EXEMPTION FROM LIABILITY FOR CLAIMS.

10 The Authority and its members may not be liable for

11 any obligation of or claim against the District of Columbia

12 resulting from actions taken to carry out this Act.

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

14 (a) JURISDICTION ESTABLISHED IN DISTRICT

15 COURT FOR DISTRICT OF COLUMBIA.—Except as pro16 vided in section 103(e)(2) (relating to the issuance of an

17 order enforcing a subpoena), any action against the Au18 thority or any action otherwise arising out of this Act, in

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

20 District Court for the District of Columbia.

21 (b) PROMPT APPEAL.—

22 (1) COURT OF APPEALS.—Notwithstanding any

23 other provision of law, any order of the United

24 States District Court for the District of Columbia

25 which is issued pursuant to an action brought under
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1 subsection (a) shall be reviewable only pursuant to

2 a notice of appeal to the United States Court of Ap3 peals for the District of Columbia Circuit.

4 (2) SUPREME COURT.—Notwithstanding any

5 other provision of law, review by the Supreme Court

6 of the United States of a decision of the Court of

7 Appeals which is issued pursuant to paragraph (1)

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

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

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

11 granting declaratory or injunctive relief against the Au12 thority, including relief permitting or requiring the obliga13 tion, borrowing, or expenditure of funds, shall take effect

14 during the pendency of the action before such court, dur15 ing the time appeal may be taken, or (if appeal is taken)

16 during the period before the court has entered its final

17 order disposing of such action.

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

19 duty of the United States District Court for the District

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

21 District of Columbia Circuit, and the Supreme Court of

22 the United States to advance on the docket and to expe23 dite to the greatest possible extent the disposition of any

24 matter brought under subsection (a).
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1 SEC. 106. FUNDING FOR OPERATION OF AUTHORITY.

2 (a) ANNUAL BUDGETING PROCESS.—

3 (1) SUBMISSION OF BUDGET.—The Authority

4 shall submit a proposed budget for each fiscal year

5 to the President for inclusion in the annual budget

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

7 of the District of Columbia Self-Government and

8 Governmental Reorganization Act not later than the

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

10 the case of the budget for fiscal year 1996, the Au11 thority shall submit its proposed budget not later

12 than July 15, 1995.

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

14 describe—

15 (A) expenditures of the Authority by each

16 object class, including expenditures for staff of

17 the Authority;

18 (B) services of personnel and other services

19 provided by or on behalf of the Authority for

20 which the Authority made no reimbursement;

21 and

22 (C) any gifts or bequests made to the au23 thority during the previous fiscal year.

24 (3) APPROPRIATIONS REQUIRED.—No amount

25 may be obligated or expended by the Authority for

26 a fiscal year (beginning with fiscal year 1996) unless
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1 such amount has been approved by Act of Congress,

2 and then only according to such Act.

3 (4) CONFORMING AMENDMENT.—Section

4 453(c) of the District of Columbia Self-Government

5 and Governmental Reorganization Act (sec. 47–

6 304.1(c), D.C. Code) is amended by striking the pe7 riod at the end and inserting the following: ‘‘, or to

8 the District of Columbia Financial Responsibility

9 and Management Assistance Authority established

10 under section 101(a) of the District of Columbia Fi11 nancial Responsibility and Management Assistance

12 Act of 1995.’’.

13 (b) SPECIAL RULE FOR FUNDING OF OPERATIONS

14 DURING FISCAL YEAR 1995.—As soon as practicable

15 after the appointment of its members, the Authority shall

16 submit to the Mayor and the President—

17 (1) a request for reprogramming of funds under

18 subsection (c)(1); and

19 (2) a description of anticipated expenditures of

20 the Authority for fiscal year 1995 (which shall be

21 transmitted to Congress).

22 (c) SOURCES OF FUNDS.—

23 (1) USE OF PREVIOUSLY APPROPRIATED FUNDS

24 IN DISTRICT BUDGET.—The Mayor shall transfer

25 funds previously appropriated to the District govern-
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1 ment for a fiscal year for auditing and consulting

2 services to the Authority (in such amounts as are

3 provided in the budget request of the Authority

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

5 1995, the request submitted under subsection

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

7 Authority’s activities during the fiscal year.

8 (2) OTHER SOURCES OF FUNDS.—For provi9 sions describing the sources of funds available for

10 the operations of the Authority during a fiscal year

11 (in addition to any interest earned on accounts of

12 the Authority during the year), see section

13 204(b)(1)(A) (relating to the set-aside of amounts

14 requisitioned from the Treasury by the Mayor) and

15 section 213(b)(3) (relating to the use of interest ac16 crued from amounts in a debt service reserve fund

17 of the Authority).

18 SEC. 107. SUSPENSION OF ACTIVITIES.

19 (a) SUSPENSION UPON PAYMENT OF AUTHORITY

20 OBLIGATIONS.—

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

22 12-month period which begins on the date that the

23 Authority certifies that all obligations arising from

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

25 other obligations pursuant to subtitle B of title II
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1 have been discharged, and that all borrowings by the

2 Authority pursuant to title VI of the District of Co3 lumbia Revenue Act of 1939 (sec. 47–3401, D.C.

4 Code) have been repaid, the Authority shall suspend

5 any activities carried out under this Act and the

6 terms of the members of the Authority shall expire.

7 (2) NO SUSPENSION DURING CONTROL YEAR.—

8 The Authority may not suspend its activities pursu9 ant to paragraph (1) at any time during a control

10 year.

11 (b) REACTIVATION UPON INITIATION OF CONTROL

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

13 Appropriations Committees of the House of Representa14 tives and the Senate that a control period has been initi15 ated (as described in section 209) at any time after the

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

17 President shall appoint members of the Authority, and the

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

19 same manner as the President appointed members and the

20 Authority carried out activities prior to such suspension.

21 SEC. 108. APPLICATION OF LAWS OF DISTRICT OF COLUM22 BIA TO AUTHORITY.

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

24 of Columbia (as in effect on the date of the enactment
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1 of this Act) shall apply to the members and activities of

2 the Authority:

3 (1) Section 742 of the District of Columbia

4 Self-Government and Governmental Reorganization

5 Act (sec. 1–1504, D.C. Code).

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

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

8 through 1–1526, D.C. Code).

9 (3) Section 601 of the District of Columbia

10 Campaign Finance Reform and Conflict of Interest

11 Act (sec. 1–1461, D.C. Code).

12 (b) NO CONTROL, SUPERVISION, OVERSIGHT, OR RE13 VIEW BY MAYOR OR COUNCIL.—

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

15 Council may exercise any control, supervision, over16 sight, or review over the Authority or its activities.

17 (2) PROHIBITION AGAINST LEGISLATION AF18 FECTING AUTHORITY.—Section 602(a) of the Dis19 trict of Columbia Self-Government and Govern20 mental Reorganization Act (sec. 1–233(a), D.C.

21 Code) is amended—

22 (A) by striking ‘‘or’’ at the end of para23 graph (8);

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

25 paragraph (9) and inserting ‘‘; or’’; and
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1 (C) by adding at the end the following new

2 paragraph:

3 ‘‘(10) enact any act, resolution, or rule with re4 spect to the District of Columbia Financial Respon5 sibility and Management Assistance Authority estab6 lished under section 101(a) of the District of Colum7 bia Financial Responsibility and Management As8 sistance Act of 1995.’’.

9 (c) AUTHORITY NOT SUBJECT TO REPRESENTATION

10 BY CORPORATION COUNSEL.—In any action brought by

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

12 against the Authority, the Authority shall be represented

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

14 the Authority be represented by the Corporation Counsel

15 of the District of Columbia.

16 TITLE II—RESPONSIBILITIES OF

17 AUTHORITY

18 Subtitle A—Establishment and En19 forcement of Financial Plan and

20 Budget for District Government

21 SEC. 201. DEVELOPMENT OF FINANCIAL PLAN AND BUDG22 ET FOR DISTRICT OF COLUMBIA.

23 (a) DEVELOPMENT OF FINANCIAL PLAN AND BUDG24 ET.—For each fiscal year for which the District govern25 ment is in a control period, the Mayor shall develop and
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1 submit to the Authority a financial plan and budget for

2 the District of Columbia in accordance with this section.

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

4 A financial plan and budget for the District of Columbia

5 for a fiscal year shall specify the budgets for the District

6 government under part D of title IV of the District of Co7 lumbia Self-Government and Governmental Reorganiza8 tion Act for the applicable fiscal year and the next 3 fiscal

9 years (including the projected revenues and expenditures

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

11 in accordance with the following requirements:

12 (1) The financial plan and budget shall meet

13 the standards described in subsection (c) to promote

14 the financial stability of the District government.

15 (2) The financial plan and budget shall provide

16 for estimates of revenues and expenditures on a

17 modified accrual basis.

18 (3) The financial plan and budget shall—

19 (A) describe lump sum expenditures by de20 partment by object class;

21 (B) describe capital expenditures (together

22 with a schedule of projected capital commit23 ments of the District government and proposed

24 sources of funding);
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1 (C) contain estimates of short-term and

2 long-term debt (both outstanding and antici3 pated to be issued); and

4 (D) contain cash flow forecasts for each

5 fund of the District government at such inter6 vals as the Authority may require.

7 (4) The financial plan and budget shall include

8 a statement describing methods of estimations and

9 significant assumptions.

10 (5) The financial plan and budget shall include

11 any other provisions and shall meet such other cri12 teria as the Authority considers appropriate to meet

13 the purposes of this Act, including provisions for

14 changes in personnel policies and levels for each de15 partment or agency of the District government,

16 changes in the structure and organization of the

17 District government, and management initiatives to

18 promote productivity, improvement in the delivery of

19 services, or cost savings.

20 (c) STANDARDS TO PROMOTE FINANCIAL STABILITY

21 DESCRIBED.—

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

23 the financial stability of the District government ap24 plicable to the financial plan and budget for a fiscal

25 year are as follows:
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1 (A) In the case of the financial plan and

2 budget for fiscal year 1996, the expenditures of

3 the District government for each fiscal year (be4 ginning with fiscal year 1999) may not exceed

5 the revenues of the District government for

6 each such fiscal year.

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

8 1998, the District government shall make con9 tinuous, substantial progress towards equalizing

10 the expenditures and revenues of the District

11 government for such fiscal years (in equal an12 nual installments to the greatest extent pos13 sible).

14 (C) The District government shall provide

15 for the orderly liquidation of the cumulative

16 fund balance deficit of the District government,

17 as evidenced by financial statements prepared

18 in accordance with generally accepted account19 ing principles.

20 (D) If funds in accounts of the District

21 government which are dedicated for specific

22 purposes have been withdrawn from such ac23 counts for other purposes, the District govern24 ment shall fully restore the funds to such ac25 counts.
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1 (E) The financial plan and budget shall as2 sure the continuing long-term financial stability

3 of the District government, as indicated by fac4 tors including access to short-term and long5 term capital markets, the efficient management

6 of the District government’s workforce, and the

7 effective provision of services by the District

8 government.

9 (2) APPLICATION OF SOUND BUDGETARY PRAC10 TICES.—In meeting the standards described in para11 graph (1) with respect to a financial plan and budg12 et for a fiscal year, the District government shall

13 apply sound budgetary practices, including reducing

14 costs and other expenditures, improving productivity,

15 increasing revenues, or combinations of such prac16 tices.

17 (3) ASSUMPTIONS BASED ON CURRENT LAW.—

18 In meeting the standards described in paragraph (1)

19 with respect to a financial plan and budget for a fis20 cal year, the District government shall base esti21 mates of revenues and expenditures on Federal law

22 as in effect at the time of the preparation of the fi23 nancial plan and budget.

24 (d) REPEAL OF OFFSETS AGAINST FEDERAL PAY25 MENT AND OTHER DISTRICT REVENUES.—Section 138 of
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1 the District of Columbia Appropriations Act, 1995, is

2 amended—

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

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

5 subsections (c) and (d).

6 SEC. 202. PROCESS FOR SUBMISSION AND APPROVAL OF FI7 NANCIAL PLAN AND ANNUAL DISTRICT

8 BUDGET.

9 (a) SUBMISSION OF PRELIMINARY FINANCIAL PLAN

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

11 1 preceding a fiscal year for which the District govern12 ment is in a control period, the Mayor shall submit to the

13 Authority and the Council a financial plan and budget for

14 the fiscal year which meets the requirements of section

15 201.

16 (b) REVIEW BY AUTHORITY.—Upon receipt of the fi17 nancial plan and budget for a fiscal year from the Mayor

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

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

20 the Authority may request any additional information it

21 considers necessary and appropriate to carry out its duties

22 under this subtitle.

23 (c) ACTION UPON APPROVAL OF MAYOR’S PRELIMI24 NARY FINANCIAL PLAN AND BUDGET.—

25 (1) CERTIFICATION TO MAYOR.—
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1 (A) IN GENERAL.—If the Authority deter2 mines that the financial plan and budget for the

3 fiscal year submitted by the Mayor under sub4 section (a) meets the requirements applicable

5 under section 201—

6 (i) the Authority shall approve the fi7 nancial plan and budget and shall provide

8 the Mayor, the Council, the President, and

9 Congress with a notice certifying its ap10 proval; and

11 (ii) the Mayor shall promptly submit

12 the financial plan and budget to the Coun13 cil pursuant to section 442 of the District

14 of Columbia Self-Government and Govern15 mental Reorganization Act.

16 (B) DEEMED APPROVAL AFTER 30

17 DAYS.—

18 (i) IN GENERAL.—If the Authority

19 has not provided the Mayor, the Council,

20 and Congress with a notice certifying ap21 proval under subparagraph (A)(i) or a

22 statement of disapproval under subsection

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

24 period which begins on the date the Au25 thority receives the financial plan and
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1 budget from the Mayor under subsection

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

3 approved the financial plan and budget

4 and to have provided the Mayor, the Coun5 cil, the President, and Congress with the

6 notice certifying approval described in sub7 paragraph (A)(i).

8 (ii) EXPLANATION OF FAILURE TO

9 RESPOND.—If clause (i) applies with re10 spect to a financial plan and budget, the

11 Authority shall provide the Mayor, the

12 Council, the President and Congress with

13 an explanation for its failure to provide the

14 notice certifying approval or the statement

15 of disapproval during the 30-day period de16 scribed in such clause.

17 (2) ADOPTION OF FINANCIAL PLAN AND BUDG18 ET BY COUNCIL AFTER RECEIPT OF APPROVED FI19 NANCIAL PLAN AND BUDGET.—Notwithstanding the

20 first sentence of section 446 of the District of Co21 lumbia Self-Government and Governmental Reorga22 nization Act, not later than 30 days after receiving

23 the financial plan and budget for the fiscal year

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

25 Council shall by Act adopt a financial plan and
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Title II, Subtitle A

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1 budget for the fiscal year which shall serve as the

2 adoption of the budgets of the District government

3 for the fiscal year under such section, and shall sub4 mit such financial plan and budget to the Mayor and

5 the Authority.

6 (3) REVIEW OF COUNCIL FINANCIAL PLAN AND

7 BUDGET BY AUTHORITY.—Upon receipt of the finan8 cial plan and budget for a fiscal year from the Coun9 cil under paragraph (2) (taking into account any

10 items or provisions disapproved by the Mayor or dis11 approved by the Mayor and reenacted by the Council

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

13 Self-Government and Governmental Reorganization

14 Act, as amended by subsection (f)(3)), the Authority

15 shall promptly review the financial plan and budget.

16 In conducting the review, the Authority may request

17 any additional information it considers necessary

18 and appropriate to carry out its duties under this

19 subtitle.

20 (4) RESULTS OF AUTHORITY REVIEW OF COUN21 CIL’S INITIAL FINANCIAL PLAN AND BUDGET.—

22 (A) APPROVAL OF COUNCIL’S INITIAL FI23 NANCIAL PLAN AND BUDGET.—If the Authority

24 determines that the financial plan and budget

25 for the fiscal year submitted by the Council
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1 under paragraph (2) meets the requirements

2 applicable under section 201—

3 (i) the Authority shall approve the fi4 nancial plan and budget and shall provide

5 the Mayor, the Council, the President, and

6 Congress with a notice certifying its ap7 proval; and

8 (ii) the Council shall promptly submit

9 the financial plan and budget to the Mayor

10 for transmission to the President and Con11 gress under section 446 of the District of

12 Columbia Self-Government and Govern13 mental Reorganization Act.

14 (B) DISAPPROVAL OF COUNCIL’S INITIAL

15 BUDGET.—If the Authority determines that the

16 financial plan and budget for the fiscal year

17 submitted by the Council under paragraph (2)

18 does not meet the requirements applicable

19 under section 201, the Authority shall dis20 approve the financial plan and budget, and

21 shall provide the Mayor, the Council, the Presi22 dent, and Congress with a statement contain23 ing—

24 (i) the reasons for such disapproval;
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1 (ii) the amount of any shortfall in the

2 budget or financial plan; and

3 (iii) any recommendations for revi4 sions to the budget the Authority considers

5 appropriate to ensure that the budget is

6 consistent with the financial plan and

7 budget.

8 (C) DEEMED APPROVAL AFTER 15 DAYS.—

9 (i) IN GENERAL.—If the Authority

10 has not provided the Mayor, the Council,

11 the President, and Congress with a notice

12 certifying approval under subparagraph

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

14 subparagraph (B) upon the expiration of

15 the 15-day period which begins on the date

16 the Authority receives the financial plan

17 and budget from the Council under para18 graph (2), the Authority shall be deemed

19 to have approved the financial plan and

20 budget and to have provided the Mayor,

21 the Council, the President, and Congress

22 with the notice certifying approval de23 scribed in subparagraph (A)(i).

24 (ii) EXPLANATION OF FAILURE TO

25 RESPOND.—If clause (i) applies with re-
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1 spect to a financial plan and budget, the

2 Authority shall provide the Mayor, the

3 Council, the President and Congress with

4 an explanation for its failure to provide the

5 notice certifying approval or the statement

6 of disapproval during the 15-day period de7 scribed in such clause.

8 (5) AUTHORITY REVIEW OF COUNCIL’S REVISED

9 FINANCIAL PLAN AND BUDGET.—

10 (A) SUBMISSION OF COUNCIL’S REVISED

11 FINANCIAL PLAN AND BUDGET.—Not later than

12 15 days after receiving the statement from the

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

14 shall promptly by Act adopt a revised financial

15 plan and budget for the fiscal year which ad16 dresses the reasons for the Authority’s dis17 approval cited in the statement, and shall sub18 mit such financial plan and budget to the

19 Mayor and the Authority.

20 (B) APPROVAL OF COUNCIL’S REVISED FI21 NANCIAL PLAN AND BUDGET.—If, after review22 ing the revised financial plan and budget for a

23 fiscal year submitted by the Council under sub24 paragraph (A) in accordance with the proce25 dures described in this subsection, the Author-
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Title II, Subtitle A

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1 ity determines that the revised financial plan

2 and budget meets the requirements applicable

3 under section 201—

4 (i) the Authority shall approve the fi5 nancial plan and budget and shall provide

6 the Mayor, the Council, the President, and

7 Congress with a notice certifying its ap8 proval; and

9 (ii) the Council shall promptly submit

10 the financial plan and budget to the Mayor

11 for transmission to the President and Con12 gress under section 446 of the District of

13 Columbia Self-Government and Govern14 mental Reorganization Act.

15 (C) DISAPPROVAL OF COUNCIL’S REVISED

16 FINANCIAL PLAN AND BUDGET.—

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

18 the revised financial plan and budget for a

19 fiscal year submitted by the Council under

20 subparagraph (A) in accordance with the

21 procedures described in this subsection, the

22 Authority determines that the revised fi23 nancial plan and budget does not meet the

24 applicable requirements under section 201,

25 the Authority shall—
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Title II, Subtitle A

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1 (I) disapprove the financial plan

2 and budget;

3 (II) provide the Mayor, the

4 Council, the President, and Congress

5 with a statement containing the rea6 sons for such disapproval and describ7 ing the amount of any shortfall in the

8 financial plan and budget; and

9 (III) approve and recommend a

10 financial plan and budget for the Dis11 trict government which meets the ap12 plicable requirements under section

13 201, and submit such financial plan

14 and budget to the Mayor, the Council,

15 the President, and Congress.

16 (ii) TRANSMISSION OF REJECTED FI17 NANCIAL PLAN AND BUDGET.—The Coun18 cil shall promptly submit the revised finan19 cial plan and budget disapproved by the

20 Authority under this subparagraph to the

21 Mayor for transmission to the President

22 and Congress under section 446 of the

23 District of Columbia Self-Government and

24 Governmental Reorganization Act.
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1 (D) DEEMED APPROVAL AFTER 15

2 DAYS.—

3 (i) IN GENERAL.—If the Authority

4 has not provided the Mayor, the Council,

5 the President, and Congress with a notice

6 certifying approval under subparagraph

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

8 subparagraph (C) upon the expiration of

9 the 15-day period which begins on the date

10 the Authority receives the revised financial

11 plan and budget submitted by the Council

12 under subparagraph (A), the Authority

13 shall be deemed to have approved the re14 vised financial plan and budget and to

15 have provided the Mayor, the Council, the

16 President, and Congress with the notice

17 certifying approval described in subpara18 graph (B)(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
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1 of disapproval during the 15-day period de2 scribed in such clause.

3 (6) DEADLINE FOR TRANSMISSION OF FINAN4 CIAL PLAN AND BUDGET BY AUTHORITY.—Notwith5 standing any other provision of this section, not

6 later than the June 15 preceding each fiscal year

7 which is a control year, the Authority shall—

8 (A) provide Congress with a notice certify9 ing its approval of the Council’s initial financial

10 plan and budget for the fiscal year under para11 graph (4)(A);

12 (B) provide Congress with a notice certify13 ing its approval of the Council’s revised finan14 cial plan and budget for the fiscal year under

15 paragraph (5)(B); or

16 (C) submit to Congress an approved and

17 recommended financial plan and budget of the

18 Authority for the District government for the

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

20 (d) ACTION UPON DISAPPROVAL OF MAYOR’S PRE21 LIMINARY FINANCIAL PLAN AND BUDGET.—

22 (1) STATEMENT OF DISAPPROVAL.—If the Au23 thority determines that the financial plan and budg24 et for the fiscal year submitted by the Mayor under

25 subsection (a) does not meet the requirements appli-
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1 cable under section 201, the Authority shall dis2 approve the financial plan and budget, and shall

3 provide the Mayor and the Council with a statement

4 containing—

5 (A) the reasons for such disapproval;

6 (B) the amount of any shortfall in the fi7 nancial plan and budget; and

8 (C) any recommendations for revisions to

9 the financial plan and budget the Authority

10 considers appropriate to ensure that the finan11 cial plan and budget meets the requirements

12 applicable under section 201.

13 (2) AUTHORITY REVIEW OF MAYOR’S REVISED

14 FINANCIAL PLAN AND BUDGET.—

15 (A) SUBMISSION OF MAYOR’S REVISED FI16 NANCIAL PLAN AND BUDGET.—Not later than

17 15 days after receiving the statement from the

18 Authority under paragraph (1), the Mayor shall

19 promptly submit to the Authority and the

20 Council a revised financial plan and budget for

21 the fiscal year which addresses the reasons for

22 the Authority’s disapproval cited in the state23 ment.

24 (B) APPROVAL OF MAYOR’S REVISED FI25 NANCIAL PLAN AND BUDGET.—If the Authority
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1 determines that the revised financial plan and

2 budget for the fiscal year submitted by the

3 Mayor under subparagraph (A) meets the re4 quirements applicable under section 201—

5 (i) the Authority shall approve the fi6 nancial plan and budget and shall provide

7 the Mayor, the Council, the President, and

8 Congress with a notice certifying its ap9 proval; and

10 (ii) the Mayor shall promptly submit

11 the financial plan and budget to the Coun12 cil pursuant to section 442 of the District

13 of Columbia Self-Government and Govern14 mental Reorganization Act.

15 (C) DISAPPROVAL OF MAYOR’S REVISED

16 FINANCIAL PLAN AND BUDGET.—

17 (i) IN GENERAL.—If the Authority de18 termines that the revised financial plan

19 and budget for the fiscal year submitted by

20 the Mayor under subparagraph (A) does

21 not meet the requirements applicable under

22 section 201, the Authority shall—

23 (I) disapprove the financial plan

24 and budget;
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Title II, Subtitle A

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1 (II) shall provide the Mayor, the

2 Council, the President, and Congress

3 with a statement containing the rea4 sons for such disapproval; and

5 (III) recommend a financial plan

6 and budget for the District govern7 ment which meets the requirements

8 applicable under section 201 and sub9 mit such financial plan and budget to

10 the Mayor and the Council.

11 (ii) SUBMISSION OF REJECTED FINAN12 CIAL PLAN AND BUDGET.—The Mayor

13 shall promptly submit the revised financial

14 plan and budget disapproved by the Au15 thority under this subparagraph to the

16 Council pursuant to section 442 of the

17 District of Columbia Self-Government and

18 Governmental Reorganization Act.

19 (D) DEEMED APPROVAL AFTER 15

20 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
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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 Mayor

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 (3) ACTION BY COUNCIL.—

22 (A) ADOPTION OF FINANCIAL PLAN AND

23 BUDGET.—Notwithstanding the first sentence

24 of section 446 of the District of Columbia Self25 Government and Governmental Reorganization
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1 Act, not later than 30 days after receiving the

2 Mayor’s approved revised financial plan and

3 budget for the fiscal year under paragraph

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

5 budget disapproved by the Authority) the finan6 cial plan and budget recommended by the Au7 thority under paragraph (2)(C)(i)(III), the

8 Council shall by Act adopt a financial plan and

9 budget for the fiscal year which shall serve as

10 the adoption of the budgets of the District gov11 ernment for the fiscal year under such section,

12 and shall submit the financial plan and budget

13 to the Mayor and the Authority.

14 (B) REVIEW BY AUTHORITY.—The finan15 cial plan and budget submitted by the Council

16 under subparagraph (A) shall be subject to re17 view by the Authority and revision by the Coun18 cil in the same manner as the financial plan

19 and budget submitted by the Council after an

20 approved preliminary financial plan and budget

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

22 and (6) of subsection (c).

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

24 (1) PERMITTING MAYOR TO SUBMIT REVI25 SIONS.—The Mayor may submit proposed revisions
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1 to the financial plan and budget for a control year

2 to the Authority at any time during the year.

3 (2) PROCESS FOR REVIEW, APPROVAL, DIS4 APPROVAL, AND COUNCIL ACTION.—Except as pro5 vided in paragraph (3), the procedures described in

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

7 to a proposed revision to a financial plan and budget

8 in the same manner as such procedures apply with

9 respect to the original financial plan and budget, ex10 cept that subparagraph (B) of subsection (c)(1) (re11 lating to deemed approval by the Authority of an

12 preliminary financial plan and budget of the Mayor)

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

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

15 (3) EXCEPTION FOR REVISIONS NOT AFFECT16 ING APPROPRIATIONS.—To the extent that a pro17 posed revision to a financial plan and budget adopt18 ed by the Council pursuant to this subsection does

19 not increase the amount of spending with respect to

20 any account of the District government, the revision

21 shall become effective upon the Authority’s approval

22 of such revision (subject to review by Congress

23 under section 602 of the District of Columbia Self24 Government and Governmental Reorganization Act).
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Title II, Subtitle A

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1 (f) CONFORMING AMENDMENT TO BUDGET PROCESS

2 REQUIREMENTS UNDER HOME RULE ACT.—

3 (1) SUBMISSION OF UNBALANCED BUDGETS.—

4 Section 603 of the District of Columbia Self-Govern5 ment and Governmental Reorganization Act (sec.

6 47–313, D.C. Code) is amended—

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

8 Council’’ the first place it appears and inserting

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

10 Council’’;

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

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

13 subsection (f), the Mayor’’; and

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

15 subsection:

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

17 year (as defined in section 305(4) of the District of Co18 lumbia Financial Responsibility and Management Assist19 ance Act of 1995)—

20 ‘‘(1) subsection (c) (other than the fourth sen21 tence) and subsection (d) shall not apply; and

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

23 Mayor may not forward to the President, any budget

24 which is not consistent with the financial plan and
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Title II, Subtitle A

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1 budget established for the fiscal year under subtitle

2 A of title II of such Act.’’.

3 (2) EXPEDITED PROCEDURES FOR DIS4 APPROVAL OF ITEMS AND PROVISIONS OF COUNCIL

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

6 of Columbia Self-Government and Governmental Re7 organization Act (sec. 1–227(f), D.C. Code) is

8 amended by adding at the end the following new

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

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

11 305(4) of the District of Columbia Financial Re12 sponsibility and Management Assistance Act of

13 1995), this subsection shall apply as if the reference

14 in the second sentence to ‘ten-day period’ were a ref15 erence to ‘five-day period’ and the reference in the

16 third sentence to ‘thirty calendar days’ were a ref17 erence to ‘5 calendar days’.’’.

18 (g) PERMITTING MAYOR AND COUNCIL TO SPECIFY

19 EXPENDITURES UNDER SCHOOL BOARD BUDGET DUR20 ING CONTROL YEAR.—

21 (1) MAYOR’S ESTIMATE INCLUDED IN ANNUAL

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

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

24 of teachers, school officers, and other employees of

25 the board of education of the District of Columbia’’,
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Title II, Subtitle A

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

2 is amended by striking the period at the end and in3 serting the following: ‘‘, except that in the case of

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

5 305(4) of the District of Columbia Financial Re6 sponsibility and Management Assistance Act of

7 1995), the Mayor shall transmit the same together

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

9 money required for the public schools for the year.’’.

10 (2) SPECIFICATION OF EXPENDITURES.—Sec11 tion 452 of the District of Columbia Self-Govern12 ment and Governmental Reorganization Act (sec.

13 31–104, D.C. Code) is amended by adding at the

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

15 not apply with respect to the annual budget for any

16 fiscal year which is a control year (as defined in sec17 tion 305(4) of the District of Columbia Financial

18 Responsibility and Management Assistance Act of

19 1995).’’.

20 (h) PERMITTING SEPARATION OF EMPLOYEES IN AC21 CORDANCE WITH FINANCIAL PLAN AND BUDGET.—The

22 fourth sentence of section 422(3) of the District of Colum23 bia Self-Government and Governmental Reorganization

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

25 ‘‘pursuant to procedures’’ and all that follows through
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1 ‘‘Act of 1991’’ and inserting the following: ‘‘in the imple2 mentation of a financial plan and budget for the District

3 government approved under subtitle A of title II of the

4 District of Columbia Financial Responsibility and Man5 agement Assistance Act of 1995’’.

6 SEC. 203. REVIEW OF ACTIVITIES OF DISTRICT GOVERN7 MENT TO ENSURE COMPLIANCE WITH AP8 PROVED FINANCIAL PLAN AND BUDGET.

9 (a) REVIEW OF COUNCIL ACTS.—

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

11 Council shall submit each Act passed by the Council

12 and signed by the Mayor during a control year or

13 vetoed by the Mayor and repassed by two-thirds of

14 the Council present and voting during a control

15 year, and each Act passed by the Council and al16 lowed to become effective without the Mayor’s signa17 ture during a control year, together with the esti18 mate of costs accompanying such Act required under

19 section 602(c)(3) of the District of Columbia Self20 Government and Governmental Reorganization Act

21 (as added by section 301(d)).

22 (2) PROMPT REVIEW BY AUTHORITY.—Upon re23 ceipt of an Act from the Council under paragraph

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

25 determine whether it is consistent with the applica-
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1 ble financial plan and budget approved under this

2 subtitle and with the estimate of costs accompanying

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

4 (3) ACTIONS BY AUTHORITY.—

5 (A) APPROVAL.—Except as provided in

6 subparagraph (C), if the Authority determines

7 that an Act is consistent with the applicable fi8 nancial plan and budget, the Authority shall no9 tify the Council that it approves the Act, and

10 the Council shall submit the Act to Congress

11 for review in accordance with section 602(c)(1)

12 of the District of Columbia Self-Government

13 and Governmental Reorganization Act.

14 (B) FINDING OF INCONSISTENCY.—Except

15 as provided in subparagraph (C), if the Author16 ity determines that an Act is significantly in17 consistent with the applicable financial plan and

18 budget, the Authority shall—

19 (i) notify the Council that of its find20 ing;

21 (ii) provide the Council with an expla22 nation of the reasons for its finding; and

23 (iii) to the extent the Authority con24 siders appropriate, provide the Council
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1 with recommendations for modifications to

2 the Act.

3 (C) EXCEPTION FOR EMERGENCY ACTS.—

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

5 with respect to any act which the Council deter6 mines according to section 412(a) of the Dis7 trict of Columbia Self-Government and Govern8 mental Reorganization Act should take effect

9 immediately because of emergency cir10 cumstances.

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

12 makes a finding with respect to an Act under para13 graph (3)(B), the Council may not submit the Act

14 to Congress for review in accordance with section

15 602(c)(1) of the District of Columbia Self-Govern16 ment and Governmental Reorganization Act.

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

18 not notify the Council that it approves or dis19 approves an Act submitted under this subsection

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

21 Council submits the Act to the Authority, the Au22 thority shall be deemed to have approved the Act in

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

24 the Authority, the previous sentence shall be applied

25 as if the reference to ‘‘7-day period’’ were a ref-
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1 erence to ‘‘14-day period’’ if during such 7-day pe2 riod the Authority so notifies the Council and the

3 Mayor.

4 (6) PRELIMINARY REVIEW OF PROPOSED

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

6 may conduct a preliminary review of proposed legis7 lation before the Council to determine whether the

8 legislation as proposed would be consistent with the

9 applicable financial plan and budget approved under

10 this subtitle, except that any such preliminary review

11 shall not be binding on the Authority in reviewing

12 any Act subsequently submitted under this sub13 section.

14 (b) EFFECT OF APPROVED FINANCIAL PLAN AND

15 BUDGET ON CONTRACTS AND LEASES.—

16 (1) MANDATORY PRIOR APPROVAL FOR CER17 TAIN CONTRACTS AND LEASES.—

18 (A) IN GENERAL.—In the case of a con19 tract or lease described in subparagraph (B)

20 which is proposed to be entered into by the Dis21 trict government during a control year, the

22 Mayor (or the appropriate officer or agent of

23 the District government) shall submit the pro24 posed contract or lease to the Authority for re25 view under paragraph (1) (and the Authority
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1 shall review the contract or lease pursuant to

2 paragraph (2)), and may not enter into the con3 tract or lease unless the Authority determines

4 that the proposed contract or lease is consistent

5 with the financial plan and budget for the fiscal

6 year.

7 (B) CONTRACTS AND LEASES DE8 SCRIBED.—A contract or lease described in this

9 subparagraph is—

10 (i) a labor contract entered into

11 through collective bargaining; or

12 (ii) such other type of contract or

13 lease as the Authority may specify for pur14 poses of this subparagraph.

15 (2) AUTHORITY TO REVIEW OTHER CONTRACTS

16 AND LEASES AFTER EXECUTION.—

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

18 approval of certain contracts and leases under

19 paragraph (1), the Authority may require the

20 Mayor (or the appropriate officer or agent of

21 the District government) to submit to the Au22 thority any other contract (including a contract

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

24 the District government during a control year

25 which is executed after the Authority has ap-
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1 proved the financial plan and budget for the

2 year under section 202(b)(2), or any proposal

3 of the District government to renew, extend, or

4 modify a contract or lease during a control year

5 which is made after the Authority has approved

6 such financial plan and budget.

7 (B) REVIEW BY AUTHORITY.—The Author8 ity shall review each contract or lease submitted

9 under subparagraph (A) to determine if the

10 contract or lease is consistent with the financial

11 plan and budget for the fiscal year. If the Au12 thority determines that the contract or lease is

13 not consistent with the financial plan and budg14 et, the Mayor shall take such actions as are

15 within the Mayor’s powers to revise the contract

16 or lease, or shall submit a proposed revision to

17 the financial plan and budget in accordance

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

19 lease will be consistent with the financial plan

20 and budget.

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

22 The Authority may require the Mayor to submit to

23 the Authority any proposal to renew, extend, or

24 modify a contract or lease in effect during fiscal

25 year 1995 to determine if the renewal, extension, or
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1 modification is consistent with the budget for the

2 District of Columbia under the District of Columbia

3 Appropriations Act, 1995.

4 (4) SPECIAL RULE FOR CONTRACTS SUBJECT

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

6 which is required to be submitted to the Authority

7 under this subsection and which is subject to ap8 proval by the Council under the laws of the District

9 of Columbia, the Mayor shall submit such contract

10 to the Authority only after the Council has approved

11 the contract.

12 (c) RESTRICTIONS ON REPROGRAMMING OF

13 AMOUNTS IN BUDGET DURING CONTROL YEARS.—

14 (1) SUBMISSIONS OF REQUESTS TO AUTHOR15 ITY.—If the Mayor submits a request to the Council

16 for the reprogramming of any amounts provided in

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

18 after the budget is adopted by the Council, the

19 Mayor shall submit such request to the Authority,

20 which shall analyze the affect of the proposed

21 reprogramming on the financial plan and budget for

22 the fiscal year and submit its analysis to the Council

23 not later than 15 days after receiving the request.

24 (2) NO ACTION PERMITTED UNTIL ANALYSIS

25 RECEIVED.—The Council may not adopt a
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1 reprogramming during a fiscal year which is a con2 trol year, and no officer or employee of the District

3 government may carry out any reprogramming dur4 ing such a year, until the Authority has provided the

5 Council with an analysis of a request for the

6 reprogramming in accordance with paragraph (1).

7 SEC. 204. RESTRICTIONS ON BORROWING BY DISTRICT

8 DURING CONTROL YEAR.

9 (a) PRIOR APPROVAL REQUIRED.—

10 (1) IN GENERAL.—The District government

11 may not borrow money during a control year unless

12 the Authority provides prior certification that both

13 the receipt of funds through such borrowing and the

14 repayment of obligations incurred through such bor15 rowing are consistent with the financial plan and

16 budget for the year.

17 (2) REVISIONS TO FINANCIAL PLAN AND BUDG18 ET PERMITTED.—If the Authority determines that

19 the borrowing proposed to be undertaken by the Dis20 trict government is not consistent with the financial

21 plan and budget, the Mayor may submit to the Au22 thority a proposed revision to the financial plan and

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

24 borrowing will be consistent with the financial plan

25 and budget as so revised.
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1 (3) BORROWING DESCRIBED.—This subsection

2 shall apply with respect to any borrowing under3 taken by the District government, including borrow4 ing through the issuance of bonds under part E of

5 title IV of the District of Columbia Self-Government

6 and Governmental Reorganization Act, the exercise

7 of authority to obtain funds from the United States

8 Treasury under title VI of the District of Columbia

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

10 any other means.

11 (4) SPECIAL RULES FOR TREASURY BORROWING

12 DURING FISCAL YEAR 1995.—

13 (A) NO PRIOR APPROVAL REQUIRED DUR14 ING INITIAL PERIOD FOLLOWING APPOINT15 MENT.—The District government may requisi16 tion advances from the United States Treasury

17 under title VI of the District of Columbia Reve18 nue Act of 1939 (sec. 47–3401, D.C. Code)

19 without the prior approval of the Authority dur20 ing the 45-day period which begins on the date

21 of the appointment of the members of the Au22 thority (subject to the restrictions described in

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

24 (B) CRITERIA FOR APPROVAL DURING RE25 MAINDER OF FISCAL YEAR.—The District gov-
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1 ernment may requisition advances described in

2 subparagraph (A) during the portion of fiscal

3 year 1995 occurring after the expiration of the

4 45-day period described in such subparagraph if

5 the Authority finds that—

6 (i) both the receipt of funds through

7 such borrowing and the repayment of obli8 gations incurred through such borrowing

9 are appropriate steps to meet the needs of

10 the District government to reduce deficits

11 and discharge payment obligations; and

12 (ii) the District government is making

13 appropriate progress toward meeting its

14 responsibilities under this Act (and the

15 amendments made by this Act).

16 (b) DEPOSIT OF FUNDS OBTAINED THROUGH

17 TREASURY WITH AUTHORITY.—

18 (1) AUTOMATIC DEPOSIT DURING CONTROL

19 YEAR.—If the Mayor requisitions funds from the

20 Secretary of the Treasury pursuant to title VI of the

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

22 3401, D.C. Code) during a control year (beginning

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

24 by the Secretary into an escrow account held by the

25 Authority, to be used as follows:
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1 (A) The Authority shall expend a portion

2 of the funds for its operations during the fiscal

3 year in which the funds are requisitioned, in

4 such amount and under such conditions as are

5 established under the budget of the Authority

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

7 (B) The Authority shall allocate the re8 mainder of such funds to the Mayor at such in9 tervals and in accordance with such terms and

10 conditions as it considers appropriate, consist11 ent with the financial plan and budget for the

12 year and with any other withholding of funds

13 by the Authority pursuant to this Act.

14 (2) OPTIONAL DEPOSIT DURING FISCAL YEAR

15 1995.—

16 (A) DURING INITIAL PERIOD FOLLOWING

17 APPOINTMENT.—If the Mayor requisitions

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

19 day period which begins on the date of the ap20 pointment of the members of the Authority, the

21 Secretary of the Treasury shall notify the Au22 thority, and at the request of the Authority

23 shall deposit such funds into an escrow account

24 held by the Authority in accordance with para25 graph (1).
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1 (B) DURING REMAINDER OF FISCAL

2 YEAR.—If the Mayor requisitions funds de3 scribed in paragraph (1) during the portion of

4 fiscal year 1995 occurring after the expiration

5 of the 45-day period described in subparagraph

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

7 such funds into an escrow account held by the

8 Authority in accordance with paragraph (1) at

9 the request of the Authority.

10 (c) CONDITIONS ON REQUISITIONS FROM TREAS11 URY.—Title VI of the District of Columbia Revenue Act

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

13 all after the heading and inserting the following:

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

15 ADVANCES.

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

17 BEFORE OCTOBER 1, 1995.—

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 purpose of assisting the District government

23 in meeting its general expenditures, as authorized by

24 Congress.
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1 ‘‘(2) CONDITIONS TO MAKING ANY TRANSI2 TIONAL SHORT-TERM ADVANCE BEFORE OCTOBER 1,

3 1995.—The Secretary shall make an advance under

4 this subsection if the following conditions are satis5 fied:

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

7 requisition for an advance under this section;

8 ‘‘(B) as of the date on which the

9 requisitioned advance is to be made, the Au10 thority has not approved a financial plan and

11 budget for the District government as meeting

12 the requirements of the District of Columbia

13 Financial Responsibility and Management As14 sistance Act of 1995;

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

16 advance is to be made is not later than Septem17 ber 30, 1995;

18 ‘‘(D) the District government has delivered

19 to the Secretary—

20 ‘‘(i) a schedule setting forth the an21 ticipated timing and amounts of req22 uisitions for advances under this sub23 section; and

24 ‘‘(ii) evidence demonstrating to the

25 satisfaction of the Secretary that the Dis-
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1 trict government is effectively unable to ob2 tain credit in the public credit markets or

3 elsewhere in sufficient amounts and on suf4 ficiently reasonable terms to meet the Dis5 trict government’s financing needs;

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

7 reasonable assurance of reimbursement for the

8 advance from the amount authorized to be ap9 propriated as the annual Federal payment to

10 the District of Columbia under title V of the

11 District of Columbia Self-Government and Gov12 ernmental Reorganization Act for the fiscal

13 year ending September 30, 1996; and

14 ‘‘(F) except during the 45-day period be15 ginning on the date of the appointment of the

16 members of the Authority, the Authority makes

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

18 of the District of Columbia Financial Respon19 sibility and Management Assistance Act of

20 1995.

21 ‘‘(3) AMOUNT OF ANY TRANSITIONAL SHORT22 TERM ADVANCE MADE BEFORE OCTOBER 1, 1995.—

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

24 subparagraph (C), if the conditions described in

25 subparagraph (B) are satisfied, each advance
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1 made under this subsection shall be in the

2 amount designated by the Mayor in the Mayor’s

3 requisition for such advance (subject to the ap4 proval of the Authority), except that—

5 ‘‘(i) the total amount requisitioned

6 under this subsection during the 30-day

7 period which begins on the date of the first

8 requisition made under this subsection may

not exceed 331 9 ⁄3 percent of the fiscal year

10 1995 limit;

11 ‘‘(ii) the total amount requisitioned

12 under this subsection during the 60-day

13 period which begins on the date of the first

14 requisition made under this subsection may

not exceed 662 15 ⁄3 percent of the fiscal year

16 1995 limit; and

17 ‘‘(iii) the total amount requisitioned

18 under this subsection after the expiration

19 of 90-day period which begins on the date

20 of the first requisition made under this

21 subsection may not exceed 100 percent of

22 the fiscal year 1995 limit.

23 ‘‘(B) CONDITIONS APPLICABLE TO DES24 IGNATED AMOUNT.—Subparagraph (A) applies

25 if the Mayor determines that the amount des-
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1 ignated in the Mayor’s requisition for such ad2 vance is needed to accomplish the purpose de3 scribed in paragraph (1).

4 ‘‘(C) AGGREGATE MAXIMUM AMOUNT OUT5 STANDING.—The sum of the anticipated prin6 cipal and interest requirements of all advances

7 made under this subsection may not be greater

8 than the fiscal year 1995 limit.

9 ‘‘(D) FISCAL YEAR 1995 LIMIT DE10 SCRIBED.—In this paragraph, the ‘fiscal year

11 1995 limit’ means the amount authorized to be

12 appropriated to the District of Columbia as the

13 annual Federal payment to the District of Co14 lumbia under title V of the District of Columbia

15 Self-Government and Governmental Reorga16 nization Act for the fiscal year ending Septem17 ber 30, 1995.

18 ‘‘(4) MATURITY OF ANY TRANSITIONAL SHORT19 TERM ADVANCE MADE BEFORE OCTOBER 1, 1995.—

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

21 subparagraph (B), each advance made under

22 this subsection shall mature on the date des23 ignated by the Mayor in the Mayor’s requisition

24 for such advance.
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1 ‘‘(B) LATEST PERMISSIBLE MATURITY

2 DATE.—Notwithstanding subparagraph (A), the

3 maturity date for any advance made under this

4 subsection shall not be later than October 1,

5 1995.

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

7 under this subsection shall bear interest at an an8 nual rate equal to the rate determined by the Sec9 retary at the time that the Secretary makes such ad10 vance taking into consideration the prevailing yield

11 on outstanding marketable obligations of the United

12 States with remaining periods to maturity comparable to the maturity of such advance, plus 1 13 ⁄8 of

14 1 percent.

15 ‘‘(6) DEPOSIT OF ADVANCES.—

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

17 subparagraph (B), each advance made under

18 this subsection for the account of the District

19 government shall be deposited by the Secretary

20 into such account as is designated by the Mayor

21 in the Mayor’s requisition for such advance.

22 ‘‘(B) EXCEPTION.—Notwithstanding sub23 paragraph (A), if (in accordance with section

24 204(b)(2) of the District of Columbia Financial

25 Responsibility and Management Assistance Act
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1 of 1995) the Authority delivers a letter request2 ing the Secretary to deposit all advances made

3 under this subsection for the account of the

4 District government in an escrow account held

5 by the Authority, each advance made under this

6 subsection for the account of the District gov7 ernment after the date of such letter shall be

8 deposited by the Secretary into the escrow ac9 count specified by the Authority in such letter.

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

11 ON OR AFTER OCTOBER 1, 1995 AND BEFORE FEBRUARY

12 1, 1996.—

13 ‘‘(1) IN GENERAL.—If the conditions in para14 graph (2) are satisfied, the Secretary shall make an

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

16 money in the Treasury not otherwise appropriated,

17 for the same purpose as advances are made under

18 subsection (a).

19 ‘‘(2) TERMS AND CONDITIONS.—

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

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

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

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

24 made under this subsection.

25 ‘‘(B) EXCEPTIONS.—
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1 ‘‘(i) NEW CONDITIONS PRECEDENT TO

2 MAKING ADVANCES.—The conditions de3 scribed in subsection (a)(2) shall apply

4 with respect to making advances on or

5 after October 1, 1995, in the same manner

6 as such conditions apply with respect to

7 making advances before October 1, 1995,

8 except that—

9 ‘‘(I) subparagraph (C) (relating

10 to the last day on which advances may

11 be made) shall be applied as if the

12 reference to ‘October 1, 1995’ were a

13 reference to ‘February 1, 1996’;

14 ‘‘(II) subparagraph (E) (relating

15 to the Secretary’s determination of

16 reasonable assurance of reimburse17 ment from the annual Federal pay18 ment appropriated to the District gov19 ernment) shall be applied as if the ref20 erence to ‘September 30, 1996’ were a

21 reference to ‘September 30, 1997’;

22 ‘‘(III) the Secretary may not

23 make an advance under this sub24 section unless all advances made

25 under subsection (a) are fully reim-
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1 bursed by withholding from the an2 nual Federal payment appropriated to

3 the District for the fiscal year ending

4 September 30, 1996, under title V of

5 the District of Columbia Self-Govern6 ment and Governmental Reorganiza7 tion Act, and applying toward reim8 bursement for such advances an

9 amount equal to the amount needed

10 to fully reimburse the Treasury for

11 such advances; and

12 ‘‘(IV) the Secretary may not

13 make an advance under this sub14 section unless the Authority has pro15 vided the Secretary with the prior cer16 tification described in section

17 204(a)(1) of the District of Columbia

18 Financial Responsibility and Manage19 ment Assistance Act of 1995.

20 ‘‘(ii) NEW LATEST PERMISSIBLE MA21 TURITY DATE.—The provisions of sub22 section (a)(4) shall apply with respect to

23 the maturity of advances made after Octo24 ber 1, 1995, in the same manner as such

25 provisions apply with respect to the matu-
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1 rity of advances made before October 1,

2 1995, except that subparagraph (B) of

3 such subsection (relating to the latest per4 missible maturity date) shall apply as if

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

6 reference to ‘October 1, 1996’.

7 ‘‘(iii) AGGREGATE MAXIMUM AMOUNT

8 OUTSTANDING.—The sum of the antici9 pated principal and interest requirements

10 of all advances made under this subsection

11 may not be greater than the fiscal year

12 1996 limit.

13 ‘‘(C) NEW MAXIMUM AMOUNT OUTSTAND14 ING.—

15 ‘‘(i) IN GENERAL.—Except as pro16 vided in clause (iii), if the conditions de17 scribed in clause (ii) are satisfied, each ad18 vance made under this subsection shall be

19 in the amount designated by the Mayor in

20 the Mayor’s requisition for such advance

21 (subject to the approval of the Authority).

22 ‘‘(ii) CONDITIONS APPLICABLE TO

23 DESIGNATED AMOUNT.— Clause (i) applies

24 if the Mayor determines that the amount

25 designated in the Mayor’s requisition for
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1 such advance is needed to accomplish the

2 purpose described in paragraph (1).

3 ‘‘(iii) AGGREGATE MAXIMUM AMOUNT

4 OUTSTANDING.—The sum of the antici5 pated principal and interest requirements

6 of all advances made under this paragraph

7 may not be greater than 60 percent of the

8 fiscal year 1996 limit.

9 ‘‘(D) DEPOSIT OF ADVANCES.—As pro10 vided in section 204(b) of the District of Co11 lumbia Financial Responsibility and Manage12 ment Assistance Act of 1995, each advance

13 made under this subsection for the account of

14 the District shall be deposited by the Secretary

15 into an escrow account held by the Authority.

16 ‘‘(E) FISCAL YEAR 1996 LIMIT DE17 SCRIBED.—In this paragraph, the ‘fiscal year

18 1996 limit’ means the amount authorized to be

19 appropriated to the District of Columbia as the

20 annual Federal payment to the District of Co21 lumbia under title V of the District of Columbia

22 Self-Government and Governmental Reorga23 nization Act for the fiscal year ending Septem24 ber 30, 1996.
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1 ‘‘(c) TRANSITIONAL SHORT-TERM ADVANCES MADE

2 ON OR AFTER FEBRUARY 1, 1996 AND BEFORE OCTOBER

3 1, 1996.—

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), subsection (b)(2) shall apply

13 to any advance made under this subsection.

14 ‘‘(B) EXCEPTIONS.—The conditions appli15 cable under subsection (b)(2) shall apply with

16 respect to making advances on or after Feb17 ruary 1, 1996, and before October 1, 1996, in

18 the same manner as such conditions apply to

19 making advances under such subsection, except

20 that—

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

22 subsection (a)(2) (as described in sub23 section (b)(2)(B)(i)(I)), the reference to

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

25 reference to ‘September 30, 1996’;
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1 ‘‘(ii) subparagraph (C)(iii) of sub2 section (b)(2) shall apply as if the ref3 erence to ‘60 percent’ were a reference to

4 ‘40 percent’; and

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

6 the Secretary has been provided the certifi7 cations and information described in para8 graphs (3) through (6) of section 602(b).

9 ‘‘SEC. 602. SHORT-TERM ADVANCES FOR SEASONAL CASH10 FLOW MANAGEMENT.

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

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

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

14 not otherwise appropriated, for the purpose of assisting

15 the District government in meeting its general expendi16 tures, as authorized by Congress, at times of seasonal

17 cash-flow deficiencies.

18 ‘‘(b) CONDITIONS TO MAKING ANY SHORT-TERM AD19 VANCE.—The Secretary shall make an advance under this

20 section if—

21 ‘‘(1) the Mayor delivers to the Secretary a req22 uisition for an advance under this section;

23 ‘‘(2) the date on which the requisitioned ad24 vance is to be made is in a control period;
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1 ‘‘(3) the Authority certifies to the Secretary

2 that—

3 ‘‘(A) the District government has prepared

4 and submitted a financial plan and budget for

5 the District government;

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

7 and budget in effect under the District of Co8 lumbia Financial Responsibility and Manage9 ment Assistance Act of 1995 for the fiscal year

10 for the fiscal year for which the requisition is

11 to be made;

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

13 for an advance, the District government is in

14 compliance with the financial plan and budget;

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

16 advance and the reimbursement of Treasury for

17 such advance are consistent with the financial

18 plan and budget for the year; and

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

20 the financial stability of the District govern21 ment;

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

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

24 the District government is effectively unable to ob25 tain credit in the public credit markets or elsewhere
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1 in sufficient amounts and on sufficiently reasonable

2 terms to meet the District government’s financing

3 needs;

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

5 Columbia certifies to the Secretary the information

6 described in paragraph (3) by providing the Sec7 retary with a certification conducted by an outside

8 auditor under a contract entered into pursuant to

9 section 208(a)(4) of the District of Columbia Pro10 curement Practices Act of 1985;

11 ‘‘(6) the Secretary receives such additional cer12 tifications and opinions relating to the financial posi13 tion of the District government as the Secretary de14 termines to be appropriate from such other Federal

15 agencies and instrumentalities as the Secretary de16 termines to be appropriate; and

17 ‘‘(7) the Secretary determines that there is rea18 sonable assurance of reimbursement for the advance

19 from the amount authorized to be appropriated as

20 the annual Federal payment to the District of Co21 lumbia under title V of the District of Columbia

22 Self-Government and Governmental Reorganization

23 Act for the fiscal year following the fiscal year in

24 which such advance is made.

25 ‘‘(c) AMOUNT OF ANY SHORT-TERM ADVANCE.—
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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (3), if the conditions in paragraph (2) are sat3 isfied, each advance made under this section shall be

4 in the amount designated by the Mayor in the May5 or’s requisition for such advance.

6 ‘‘(2) CONDITIONS APPLICABLE TO DESIGNATED

7 AMOUNT.—Paragraph (1) applies if—

8 ‘‘(A) the Mayor determines that the

9 amount designated in the Mayor’s requisition

10 for such advance is needed to accomplish the

11 purpose described in subsection (a); and

12 ‘‘(B) the Authority—

13 ‘‘(i) concurs in the Mayor’s deter14 mination under subparagraph (A); and

15 ‘‘(ii) determines that the reimburse16 ment obligation of the District government

17 for an advance made under this section in

18 the amount designated in the Mayor’s req19 uisition is consistent with the financial

20 plan for the year.

21 ‘‘(3) MAXIMUM AMOUNT OUTSTANDING.—Not22 withstanding paragraph (1), the unpaid principal

23 balance of all advances made under this section in

24 any fiscal year of the District government shall not

25 at any time be greater than 150 percent of the
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1 amount authorized under title V of the District of

2 Columbia Self-Government and Governmental Reor3 ganization Act for appropriation as the Federal pay4 ment to the District government for the fiscal year

5 following the fiscal year in which the advance is

6 made.

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

8 ‘‘(1) IN GENERAL.—Except as provided in para9 graph (3), if the condition in paragraph (2) is satis10 fied, each advance made under this section shall ma11 ture on the date designated by the Mayor in the

12 Mayor’s requisition for such advance.

13 ‘‘(2) CONDITION APPLICABLE TO DESIGNATED

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

15 determines that the reimbursement obligation of the

16 District government for an advance made under this

17 section having the maturity date designated in the

18 Mayor’s requisition is consistent with the financial

19 plan for the year.

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

21 Notwithstanding paragraph (1), the maturity date

22 for any advance made under this section shall not be

23 later than 11 months after the date on which such

24 advance is made.
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1 ‘‘(e) INTEREST RATE.—Each advance made under

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

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

4 Secretary makes such advance taking into consideration

5 the prevailing yield on outstanding marketable obligations

6 of the United States with remaining periods to maturity

comparable to the maturity of such advance, plus 1 7 ⁄8 of

8 1 percent.

9 ‘‘(f) 10 BUSINESS-DAY ZERO BALANCE REQUIRE10 MENT.—After the expiration of the 12-month period be11 ginning on the date on which the first advance is made

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

13 advance under this section unless the District government

14 has—

15 ‘‘(1) reduced to zero at the same time the prin16 cipal balance of all advances made under this section

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

18 and

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

20 under this section in any of the 10 business days fol21 lowing such reduction.

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

23 204(b) of the District of Columbia Financial Responsibil24 ity and Management Assistance Act of 1995, advances

25 made under this section for the account of the District
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1 government shall be deposited by the Secretary into an

2 escrow account held by the Authority.

3 ‘‘SEC. 603. SECURITY FOR ADVANCES.

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

5 District government to provide such security for any ad6 vance made under this title as the Secretary determines

7 to be appropriate.

8 ‘‘(b) AUTHORITY TO REQUIRE SPECIFIC SECU9 RITY.—As security for any advance made under this title,

10 the Secretary may require the District government to—

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

12 revenue of the District government, if such pledging

13 does not cause the District government to violate ex14 isting laws or contracts; and

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

16 pledged to the Secretary.

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

18 ‘‘(a) REIMBURSEMENT AMOUNT.—

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), on any date on which a reimbursement

21 payment is due to the Treasury under the terms of

22 any advance made under this title, the District shall

23 pay to the Treasury the amount of such reimburse24 ment payment out of taxes and revenue collected for

25 the support of the District government.
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1 ‘‘(2) EXCEPTIONS FOR TRANSITIONAL AD2 VANCES.—

3 ‘‘(A) ADVANCES MADE BEFORE OCTOBER

4 1, 1995.—

5 ‘‘(i) FINANCIAL PLAN AND BUDGET

6 APPROVED.—If the Authority approves a

7 financial plan for the District government

8 before October 1, 1995, the District gov9 ernment may use the proceeds of any ad10 vance made under section 602 to discharge

11 its obligation to reimburse the Treasury

12 for any advance made under section

13 601(a).

14 ‘‘(ii) FINANCIAL PLAN AND BUDGET

15 NOT APPROVED.—If the Authority has not

16 approved a financial plan and budget for

17 the District government by October 1,

18 1995, the annual Federal payment appro19 priated to the District government for the

20 fiscal year ending September 30, 1996,

21 shall be withheld and applied to discharge

22 the District government’s obligation to re23 imburse the Treasury for any advance

24 made under section 601(a).
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1 ‘‘(B) ADVANCES MADE ON OR AFTER OC2 TOBER 1, 1995.—

3 ‘‘(i) FINANCIAL PLAN AND BUDGET

4 APPROVED.—If the Authority approves a

5 financial plan and budget for the District

6 government during fiscal year 1996, the

7 District may use the proceeds of any ad8 vance made under section 602 to discharge

9 its obligation to reimburse the Treasury

10 for any advance made under section

11 601(b).

12 ‘‘(ii) FINANCIAL PLAN AND BUDGET

13 NOT APPROVED.—If the Authority has not

14 approved a financial plan and budget for

15 the District government by October 1,

16 1996, the annual Federal payment appro17 priated to the District government for the

18 fiscal year ending September 30, 1997,

19 shall be withheld and applied to discharge

20 the District government’s obligation to re21 imburse the Treasury for any advance

22 made under section 601(b).

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

24 on any date on which a reimbursement payment is due

25 to the Treasury under the terms of any advance made
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1 under this title, the District government does not make

2 such reimbursement payment, the Secretary shall take the

3 actions listed in this subsection.

4 ‘‘(1) WITHHOLD ANNUAL FEDERAL PAY5 MENT.—Notwithstanding any other law, before turn6 ing over to the Authority (on behalf of the District

7 government under section 205 of the District of Co8 lumbia Financial Responsibility and Management

9 Assistance Act of 1995) any annual Federal pay10 ment appropriated to the District government for

11 any fiscal year under title V of the District of Co12 lumbia Self-Government and Governmental Reorga13 nization Act, the Secretary shall withhold from such

14 annual Federal payment, and apply toward reim15 bursement for the payment not made, an amount

16 equal to the amount needed to fully reimburse the

17 Treasury for the payment not made.

18 ‘‘(2) WITHHOLD OTHER FEDERAL PAY19 MENTS.—If, after the Secretary takes the action de20 scribed in paragraph (1), the Treasury is not fully

21 reimbursed, the Secretary shall withhold from each

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

23 District government by the Federal Government not

24 dedicated to making entitlement or benefit payments

25 to individuals, and apply toward reimbursement for
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1 the payment not made, an amount that, when added

2 to the amount withheld from each other such grant,

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

4 the amount needed to fully reimburse the Treasury

5 for the payment not made.

6 ‘‘(3) ATTACH AVAILABLE DISTRICT REVE7 NUES.—If, after the Secretary takes the actions de8 scribed in paragraphs (1) and (2), the Treasury is

9 not fully reimbursed, the Secretary shall attach any

10 and all revenues of the District government which

11 the Secretary may lawfully attach, and apply toward

12 reimbursement for the payment not made, an

13 amount equal to the amount needed to fully reim14 burse the Treasury for the payment not made.

15 ‘‘(4) TAKE OTHER ACTIONS.—If, after the Sec16 retary takes the actions described in paragraphs (1)

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

18 the Secretary shall take any and all other actions

19 permitted by law to recover from the District gov20 ernment the amount needed to fully reimburse the

21 Treasury for the payment not made.

22 ‘‘SEC. 605. DEFINITIONS.

23 ‘‘For purposes of this title—

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

25 Columbia Financial Responsibility and Management
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1 Assistance Authority established under section

2 101(a) of the District of Columbia Financial Re3 sponsibility and Management Assistance Act of

4 1995;

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

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

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

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

9 such Act;

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

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

12 of such Act; and

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

14 of the Treasury.’’.

15 (d) EXPENDITURE OF FUNDS FROM ACCOUNT IN

16 ACCORDANCE WITH AUTHORITY INSTRUCTIONS.—Any

17 funds allocated by the Authority to the Mayor from the

18 escrow account described in subsection (b)(1) may be ex19 pended by the Mayor only in accordance with the terms

20 and conditions established by the Authority at the time

21 the funds are allocated.

22 (e) PROHIBITION AGAINST BORROWING WHILE SUIT

23 PENDING.—The Mayor may not requisition advances from

24 the Treasury pursuant to title VI of the District of Colum25 bia Revenue Act of 1939 if there is an action filed by the
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1 Mayor or the Council which is pending against the Author2 ity challenging the establishment of or any action taken

3 by the Authority.

4 SEC. 205. DEPOSIT OF ANNUAL FEDERAL PAYMENT WITH

5 AUTHORITY.

6 (a) IN GENERAL.—

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

8 case of a fiscal year which is a control year, the Sec9 retary of the Treasury shall deposit the annual Fed10 eral payment to the District of Columbia for the

11 year authorized under title V of the District of Co12 lumbia Self-Government and Governmental Reorga13 nization Act into an escrow account held by the Au14 thority, which shall allocate the funds to the Mayor

15 at such intervals and in accordance with such terms

16 and conditions as it considers appropriate to imple17 ment the financial plan for the year. In establishing

18 such terms and conditions, the Authority shall give

19 priority to using the Federal payment for cash flow

20 management and the payment of outstanding bills

21 owed by the District government.

22 (2) EXCEPTION FOR AMOUNTS WITHHELD FOR

23 ADVANCES.—Paragraph (1) shall not apply with re24 spect to any portion of the Federal payment which

25 is withheld by the Secretary of the Treasury in ac-
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1 cordance with section 604 of title VI of the District

2 of Columbia Revenue Act of 1939 to reimburse the

3 Secretary for advances made under title VI of such

4 Act.

5 (b) EXPENDITURE OF FUNDS FROM ACCOUNT IN AC6 CORDANCE WITH AUTHORITY INSTRUCTIONS.—Any

7 funds allocated by the Authority to the Mayor from the

8 escrow account described in paragraph (1) may be ex9 pended by the Mayor only in accordance with the terms

10 and conditions established by the Authority at the time

11 the funds are allocated.

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

13 FINANCIAL PLAN AND BUDGET.

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

15 days after the expiration of each quarter of each fiscal

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

17 submit reports to the Authority describing the actual reve18 nues obtained and expenditures made by the District gov19 ernment during the quarter with its cash flows during the

20 quarter, and comparing such actual revenues, expendi21 tures, and cash flows with the most recent projections for

22 these items.

23 (b) DEMAND FOR ADDITIONAL INFORMATION.—If

24 the Authority determines, based on reports submitted by

25 the Mayor under subsection (a), independent audits, or
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1 such other information as the Authority may obtain, that

2 the revenues or expenditures of the District government

3 during a control year are not consistent with the financial

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

5 the Mayor to provide such additional information as the

6 Authority determines to be necessary to explain the incon7 sistency.

8 (c) CERTIFICATION OF VARIANCE.—

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

10 provide additional information under subsection (b),

11 the Authority shall certify to the Council, the Presi12 dent, the Secretary of the Treasury, and Congress

13 that the District government is at variance with the

14 financial plan and budget unless—

15 (A)(i) the additional information provides

16 an explanation for the inconsistency which the

17 Authority finds reasonable and appropriate, or

18 (ii) the District government adopts or im19 plements remedial action (including revising the

20 financial plan and budget pursuant to section

21 202(e)) to correct the inconsistency which the

22 Authority finds reasonable and appropriate,

23 taking into account the terms of the financial

24 plan and budget; and
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1 (B) the Mayor agrees to submit the re2 ports described in subsection (a) on a monthly

3 basis for such period as the Authority may

4 require.

5 (2) SPECIAL RULE FOR INCONSISTENCIES AT6 TRIBUTABLE TO ACTS OF CONGRESS.—

7 (A) DETERMINATION BY AUTHORITY.—If

8 the Authority determines that the revenues or

9 expenditures of the District government during

10 a control year are not consistent with the finan11 cial plan and budget for the year as approved

12 by the Authority under section 202 as a result

13 of the terms and conditions of the budget of the

14 District government for the year as enacted by

15 Congress or as a result of any other law en16 acted by Congress which affects the District of

17 Columbia, the Authority shall so notify the

18 Mayor.

19 (B) CERTIFICATION.—In the case of an in20 consistency described in subparagraph (A), the

21 Authority shall certify to the Council, the Presi22 dent, the Secretary of the Treasury, and Con23 gress that the District government is at vari24 ance with the financial plan and budget unless

25 the District government adopts or implements
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1 remedial action (including revising the financial

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

3 correct the inconsistency which the Authority

4 finds reasonable and appropriate, taking into

5 account the terms of the financial plan and

6 budget.

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

8 certifies to the Secretary of the Treasury that a variance

9 exists—

10 (1) the Authority may withhold any funds de11 posited with the Authority under section 204(b) or

12 section 205(a) which would otherwise be expended

13 on behalf of the District government; and

14 (2) the Secretary shall withhold funds otherwise

15 payable to the District of Columbia under such Fed16 eral programs as the Authority may specify (other

17 than funds dedicated to making entitlement or bene18 fit payments to individuals), in such amounts and

19 under such other conditions as the Authority may

20 specify.

21 SEC. 207. RECOMMENDATIONS ON FINANCIAL STABILITY

22 AND MANAGEMENT RESPONSIBILITY.

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

24 submit recommendations to the Mayor, the Council, the

25 President, and Congress on actions the District govern-
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1 ment or the Federal Government may take to ensure com2 pliance with a financial plan and budget or to otherwise

3 promote the financial stability, management responsibility,

4 and service delivery efficiency of the District government,

5 including recommendations relating to—

6 (1) the management of the District govern7 ment’s financial affairs, including cash forecasting,

8 information technology, placing controls on expendi9 tures for personnel, reducing benefit costs, reforming

10 procurement practices, and placing other controls on

11 expenditures;

12 (2) the relationship between the District gov13 ernment and the Federal Government;

14 (3) the structural relationship of departments,

15 agencies, and independent agencies within the Dis16 trict government;

17 (4) the modification of existing revenue struc18 tures, or the establishment of additional revenue

19 structures;

20 (5) the establishment of alternatives for meet21 ing obligations to pay for the pensions of former

22 District government employees;

23 (6) modifications or transfers of the types of

24 services which are the responsibility of and are deliv25 ered by the District government;
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1 (7) modifications of the types of services which

2 are delivered by entities other than the District gov3 ernment under alternative service delivery mecha4 nisms (including privatization and commercializa5 tion);

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

7 court orders on the operations of the District gov8 ernment;

9 (9) the establishment of a personnel system for

10 employees of the District government which is based

11 upon employee performance standards; and

12 (10) the improvement of personnel training and

13 proficiency, the adjustment of staffing levels, and

14 the improvement of training and performance of

15 management and supervisory personnel.

16 (b) RESPONSE TO RECOMMENDATIONS FOR ACTIONS

17 WITHIN AUTHORITY OF DISTRICT GOVERNMENT.—

18 (1) IN GENERAL.—In the case of any rec19 ommendations submitted under subsection (a) dur20 ing a control year which are within the authority of

21 the District government to adopt, not later than 90

22 days after receiving the recommendations, the Mayor

23 or the Council (whichever has the authority to adopt

24 the recommendation) shall submit a statement to the

25 Authority, the President, and Congress which pro-
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1 vides notice as to whether the District government

2 will adopt the recommendations.

3 (2) IMPLEMENTATION PLAN REQUIRED FOR

4 ADOPTED RECOMMENDATIONS.—If the Mayor or the

5 Council (whichever is applicable) notifies the Author6 ity and Congress under paragraph (1) that the Dis7 trict government will adopt any of the recommenda8 tions submitted under subsection (a), the Mayor or

9 the Council (whichever is applicable) shall include in

10 the statement a written plan to implement the rec11 ommendation which includes—

12 (A) specific performance measures to de13 termine the extent to which the District govern14 ment has adopted the recommendation; and

15 (B) a schedule for auditing the District

16 government’s compliance with the plan.

17 (3) EXPLANATIONS REQUIRED FOR REC18 OMMENDATIONS NOT ADOPTED.—If the Mayor or

19 the Council (whichever is applicable) notifies the Au20 thority, the President, and Congress under para21 graph (1) that the District government will not

22 adopt any recommendation submitted under sub23 section (a) which the District government has au24 thority to adopt, the Mayor or the Council shall in-
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1 clude in the statement explanations for the rejection

2 of the recommendations.

3 (c) IMPLEMENTATION OF REJECTED RECOMMENDA4 TIONS BY AUTHORITY.—

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

6 (whichever is applicable) notifies the Authority, the

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

8 that the District government will not adopt any rec9 ommendation submitted under subsection (a) which

10 the District government has authority to adopt, the

11 Authority may by a majority vote of its members

12 take such action concerning the recommendation as

13 it deems appropriate, after consulting with the Com14 mittee on Government Reform and Oversight of the

15 House of Representatives and the Committee on

16 Governmental Affairs of the Senate.

17 (2) EFFECTIVE DATE.—This subsection shall

18 apply with respect to recommendations of the Au19 thority made after the expiration of the 6-month pe20 riod which begins on the date of the enactment of

21 this Act.

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

23 (a) ADOPTION OF TRANSITION BUDGET.—In the

24 case of fiscal year 1996, the following rules shall apply:
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1 (1) Not later than 45 days after the appoint2 ment of its members, the Authority shall review the

3 proposed budget for the District of Columbia for

4 such fiscal year submitted to Congress under section

5 446 of the District of Columbia Self-Government

6 and Governmental Reorganization Act (taking into

7 account any items or provisions disapproved by the

8 Mayor or disapproved by the Mayor and reenacted

9 by the Council under section 404(f) of the District

10 of Columbia Self-Government and Governmental Re11 organization Act, as amended by section 202(f)(3))

12 and the multiyear plan for the District of Columbia

13 prepared pursuant to section 443 of the District of

14 Columbia Self-Government and Governmental Reor15 ganization Act, and shall submit any recommenda16 tions for modifications to such financial plan and

17 budget to promote the financial stability of the Dis18 trict government to the Mayor, the Council, the

19 President, and Congress.

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

21 recommendations of the Authority submitted under

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

23 Mayor) shall promptly adopt a revised budget for

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

25 ‘‘transition budget’’), and shall submit the transition
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1 budget to the Authority, the President, and Con2 gress.

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

4 transition budget from the Council under paragraph

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

6 Mayor, the Council, the President, and Congress

7 analyzing the budget (taking into account any items

8 or provisions disapproved by the Mayor or dis9 approved by the Mayor and reenacted by the Council

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

11 Self-Government and Governmental Reorganization

12 Act, as amended by section 202(f)(3)), and shall in13 clude in the report such recommendations for revi14 sions to the transition budget as the Authority con15 siders appropriate to promote the financial stability

16 of the District government during the fiscal year.

17 (b) FINANCIAL PLAN AND BUDGET.—

18 (1) DEADLINE FOR SUBMISSION.—For purposes

19 of section 202, the Mayor shall submit the financial

20 plan and budget for fiscal year 1996 as soon as

21 practicable after the date of the enactment of this

22 Act (in accordance with guidelines established by the

23 Authority).

24 (2) ADOPTION BY COUNCIL.—In accordance

25 with the procedures applicable under section 202
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1 (including procedures providing for review by the

2 Authority)—

3 (A) the Council shall adopt the financial

4 plan and budget for the fiscal year (including

5 the supplemental budget incorporated in the fi6 nancial plan and budget) prior to the submis7 sion by the Mayor of the financial plan and

8 budget for fiscal year 1997 under section

9 202(a); and

10 (B) the financial plan and budget adopted

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

12 plan and budget disapproved by the Authority,

13 together with the financial plan and budget ap14 proved and recommended by the Authority)

15 shall be submitted to Congress (in accordance

16 with the procedures applicable under such sec17 tion) as a supplemental budget request for fis18 cal year 1996 (in accordance with section 446

19 of the District of Columbia Self-Government

20 and Governmental Reorganization Act).

21 (3) TRANSITION BUDGET AS TEMPORARY FI22 NANCIAL PLAN AND BUDGET.—Until the approval of

23 the financial plan and budget for fiscal year 1996 by

24 the Authority under this subsection, the transition

25 budget established under subsection (a) (as enacted
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1 by Congress) shall serve as the financial plan and

2 budget adopted under this subtitle for purposes of

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

4 Act) for fiscal year 1996.

5 (c) RESTRICTIONS ON ADVANCES FROM TREAS6 URY.—

7 (1) MONTHLY DETERMINATION OF PROGRESS

8 TOWARD FINANCIAL PLAN AND BUDGET.—During

9 each month of fiscal year 1996 prior to the adoption

10 of the financial plan and budget, the Authority shall

11 determine whether the District government is mak12 ing appropriate progress in preparing and adopting

13 a financial plan and budget for the fiscal year under

14 this subtitle.

15 (2) CERTIFICATION.—The Authority shall pro16 vide the President and Congress with a certification

17 if the Authority finds that the District government

18 is not making appropriate progress in developing the

19 financial plan and budget for a month, and shall no20 tify the President and Congress that the certification

21 should be canceled if the Authority finds that the

22 District government is making such progress after

23 the certification is provided.

24 (3) PROHIBITION AGAINST ALLOCATION OF AD25 VANCES IF CERTIFICATION IN EFFECT.—At any
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1 time during which a certification under paragraph

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

3 obtained through advances to the Mayor under title

4 VI of the District of Columbia Revenue Act of 1939

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

6 SEC. 209. CONTROL PERIODS DESCRIBED.

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

8 period’’ is initiated upon the occurrence of any of the fol9 lowing events (as determined by the Authority based upon

10 information obtained through the Mayor, the Inspector

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

12 as the Authority considers appropriate):

13 (1) The requisitioning by the Mayor of ad14 vances from the Treasury of the United States for

15 the support of the District government under title

16 VI of the District of Columbia Revenue Act of 1939

17 (sec. 47–3401, D.C. Code), or the existence of any

18 unreimbursed amounts obtained pursuant to such

19 authority.

20 (2) The failure of the District government to

21 provide sufficient revenue to a debt service reserve

22 fund of the Authority under subtitle B of title II.

23 (3) The default by the District government with

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

25 borrowing.
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1 (4) The failure of the District government to

2 meet its payroll for any pay period.

3 (5) The existence of a cash deficit of the Dis4 trict government at the end of any quarter of the

5 fiscal year in excess of the difference between the es6 timated revenues of the District government and the

7 estimated expenditures of the District government

8 (including repayments of temporary borrowings)

9 during the remainder of the fiscal year or the re10 mainder of the fiscal year together with the first 6

11 months of the succeeding fiscal year (as determined

12 by the Authority in consultation with the Chief Fi13 nancial Officer of the District of Columbia).

14 (6) The failure of the District government to

15 make required payments relating to pensions and

16 benefits for current and former employees of the

17 District government.

18 (7) The failure of the District government to

19 make required payments to any entity established

20 under an interstate compact to which the District of

21 Columbia is a signatory.

22 (b) TERMINATION.—

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

24 upon the certification by the Authority that—
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1 (A) the District government has adequate

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

3 markets at reasonable interest rates to meet its

4 borrowing needs; and

5 (B) for 4 consecutive fiscal years (occur6 ring after the date of the enactment of this Act)

7 the expenditures made by the District govern8 ment during each of the years did not exceed

9 the revenues of the District government during

10 such years (as determined in accordance with

11 generally accepted accounting principles, as

12 contained in the comprehensive annual financial

13 report for the District of Columbia under sec14 tion 448(a)(4) of the District of Columbia Self15 Government and Governmental Reorganization

16 Act).

17 (2) CONSULTATION WITH INSPECTOR GEN18 ERAL.—In making the determination under this sub19 section, the Authority shall consult with the Inspec20 tor General of the District of Columbia.

21 (c) CONTROL PERIOD DEEMED TO EXIST UPON EN22 ACTMENT.—For purposes of this subtitle, a control period

23 is deemed to exist upon the enactment of this Act.
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1 Subtitle B—Issuance of Bonds

2 SEC. 211. AUTHORITY TO ISSUE BONDS.

3 (a) IN GENERAL.—

4 (1) REQUEST OF MAYOR.—Subject to the re5 quirements of this subtitle, the Authority may at the

6 request of the Mayor pursuant to an act of the

7 Council issue bonds, notes, or other obligations to

8 borrow funds to obtain funds for the use of the Dis9 trict government, in such amounts and in such man10 ner as the Authority considers appropriate.

11 (2) SPECIAL RULE FOR INSTRUMENTALITIES

12 WITH INDEPENDENT BORROWING AUTHORITY.—In

13 the case of an agency or instrumentality of the Dis14 trict government which under law has the authority

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

16 without the enactment of an act of the Council, the

17 Authority may issue bonds, notes, or other obliga18 tions to borrow funds for the use or functions of

19 such agency or instrumentality at the request of the

20 head of the agency or instrumentality.

21 (b) DEPOSIT OF FUNDS OBTAINED THROUGH BOR22 ROWING WITH AUTHORITY.—Any funds obtained by the

23 District government through borrowing by the Authority

24 pursuant to this subtitle shall be deposited into an escrow

25 account held by the Authority, which shall allocate such
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1 funds to the District government in such amounts and at

2 such times as the Authority considers appropriate, consist3 ent with the specified purposes of such funds and the ap4 plicable financial plan and budget under subtitle A.

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

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

7 or other obligations pursuant to this subtitle may be used

8 for any purpose (consistent with the applicable financial

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

10 government may use borrowed funds under the District

11 of Columbia Self-Government and Governmental Reorga12 nization Act and for any other purpose which the Author13 ity considers appropriate.

14 SEC. 212. PLEDGE OF SECURITY INTEREST IN REVENUES

15 OF DISTRICT GOVERNMENT.

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

17 grant a security interest in revenues to individuals or enti18 ties purchasing bonds, notes, or other obligations issued

19 pursuant to this subtitle.

20 (b) DEDICATION OF REVENUE STREAM FROM DIS21 TRICT GOVERNMENT.—The Authority shall require the

22 Mayor—

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

24 otherwise payable to the District government (which

25 are not otherwise pledged or committed), including
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1 payments from the Federal Government, to the Au2 thority for purposes of securing repayment of bonds,

3 notes, or other obligations issued pursuant to this

4 subtitle; and

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

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

7 obligations to the Authority immediately upon collec8 tion.

9 SEC. 213. ESTABLISHMENT OF DEBT SERVICE RESERVE

10 FUND.

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

12 of bonds, notes, or other obligations pursuant to this sub13 title, the Authority shall establish a debt service reserve

14 fund in accordance with this section.

15 (b) REQUIREMENTS FOR FUND.—

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

17 fund established by the Authority pursuant to this

18 subsection shall consist of such funds as the Author19 ity may make available, and shall be a trust fund

20 held for the benefit and security of the obligees of

21 the Authority whose bonds, notes, or other obliga22 tions are secured by such fund.

23 (2) USES OF FUNDS.—Amounts in a debt serv24 ice reserve fund may be used solely for the payment

25 of the principal of bonds secured in whole or in part
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1 by such fund, the purchase or redemption of such

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

3 payment of any redemption premium required to be

4 paid when such bonds and notes are redeemed prior

5 to maturity.

6 (3) RESTRICTIONS ON WITHDRAWALS.—

7 (A) IN GENERAL.—Amounts in a debt

8 service reserve fund may not be withdrawn from

9 the fund at any time in an amount that would

10 reduce the amount of the fund to less than the

11 minimum reserve fund requirement established

12 for such fund in the resolution of the Authority

13 creating such fund, except for withdrawals for

14 the purpose of making payments when due of

15 principal, interest, redemption premiums and

16 sinking fund payments, if any, with respect to

17 such bonds for the payment of which other

18 moneys of the Authority are not available, and

19 for the purpose of funding the operations of the

20 Authority for a fiscal year (in such amounts

21 and under such conditions as are established

22 under the budget of the Authority for the fiscal

23 year under section 106(a)).

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

25 subparagraph (A) may be construed to prohibit
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1 the Authority from transferring any income or

2 interest earned by, or increments to, any debt

3 service reserve fund due to the investment

4 thereof to other funds or accounts of the Au5 thority (to the extent such transfer does not re6 duce the amount of the debt service reserve

7 fund below the minimum reserve fund require8 ment established for such fund) for such pur9 poses as the Authority considers appropriate to

10 promote the financial stability and management

11 efficiency of the District government.

12 SEC. 214. OTHER REQUIREMENTS FOR ISSUANCE OF

13 BONDS.

14 (a) MINIMUM DEBT SERVICE RESERVE FUND RE15 QUIREMENT.—The Authority may not at any time issue

16 bonds, notes, or other obligations pursuant to this subtitle

17 which are secured in whole or in part by a debt service

18 reserve fund under section 213 if issuance of such bonds

19 would cause the amount in the debt reserve fund to fall

20 below the minimum reserve requirement for such fund, un21 less the Authority at the time of issuance of such bonds

22 shall deposit in the fund an amount (from the proceeds

23 of the bonds to be issued or from other sources) which

24 when added to the amount already in such fund will cause

25 the total amount on deposit in such fund to equal or ex-
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1 ceed the minimum reserve fund requirement established

2 by the Authority at the time of the establishment of the

3 fund.

4 (b) AMOUNTS INCLUDED IN AGGREGATE LIMIT ON

5 DISTRICT BORROWING.—Any amounts provided to the

6 District government through the issuance of bonds, notes,

7 or other obligations to borrow funds pursuant to this sub8 title shall be taken into account in determining whether

9 the amount of funds borrowed by the District of Columbia

10 during a fiscal year exceeds the limitation on such amount

11 provided under section 603(b) of the District of Columbia

12 Self-Government and Governmental Reorganization Act.

13 SEC. 215. NO FULL FAITH AND CREDIT OF THE UNITED

14 STATES.

15 The full faith and credit of the United States is not

16 pledged for the payment of any principal of or interest

17 on any bond, note, or other obligation issued by the Au18 thority pursuant to this subtitle. The United States is not

19 responsible or liable for the payment of any principal of

20 or interest on any bond, note, or other obligation issued

21 by the Authority pursuant to this subtitle.
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1 Subtitle C—Other Duties of

2 Authority

3 SEC. 221. DUTIES OF AUTHORITY DURING YEAR OTHER

4 THAN CONTROL YEAR.

5 (a) IN GENERAL.—During the period beginning upon

6 the termination of a control period pursuant to section

7 209(b) and ending with the suspension of its activities

8 pursuant to section 107(a), the Authority shall conduct

9 the following activities:

10 (1) The Authority shall review the budgets of

11 the District government adopted by the Council

12 under section 446 of the District of Columbia Self13 Government and Governmental Reorganization Act

14 for each fiscal year occurring during such period.

15 (2) At such time prior to the enactment of such

16 budget by Congress as the Authority considers ap17 propriate, the Authority shall prepare a report ana18 lyzing the budget and submit the report to the

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

20 (3) The Authority shall monitor the financial

21 status of the District government and shall submit

22 reports to the Mayor, the Council, the President,

23 and Congress if the Authority determines that a risk

24 exists that a control period may be initiated pursu25 ant to section 209(a).
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1 (4) The Authority shall carry out activities

2 under subtitle B with respect to bonds, notes, or

3 other obligations of the Authority outstanding dur4 ing such period.

5 (b) REQUIRING MAYOR TO SUBMIT BUDGETS TO AU6 THORITY.—With respect to the budget for each fiscal year

7 beginning after the date of the enactment of this Act

8 which is not a control year, at the time the Mayor submits

9 the budget of the District government adopted by the

10 Council to the President under section 446 of the District

11 of Columbia Self-Government and Governmental Reorga12 nization Act, the Mayor shall submit such budget to the

13 Authority.

14 SEC. 222. GENERAL ASSISTANCE IN ACHIEVING FINANCIAL

15 STABILITY AND MANAGEMENT EFFICIENCY.

16 In addition to any other actions described in this title,

17 the Authority may undertake cooperative efforts to assist

18 the District government in achieving financial stability

19 and management efficiency, including—

20 (1) assisting the District government in avoid21 ing defaults, eliminating and liquidating deficits,

22 maintaining sound budgetary practices, and avoiding

23 interruptions in the delivery of services;

24 (2) assisting the District government in improv25 ing the delivery of municipal services, the training
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1 and effectiveness of personnel of the District govern2 ment, and the efficiency of management and super3 vision; and

4 (3) making recommendations to the President

5 for transmission to Congress on changes to this Act

6 or other Federal laws, or other actions of the Fed7 eral Government, which would assist the District

8 government in complying with an approved financial

9 plan and budget under subtitle A.

10 SEC. 223. OBTAINING REPORTS.

11 The Authority may require the Mayor, the Chair of

12 the Council, the Chief Financial Officer of the District of

13 Columbia, and the Inspector General of the District of Co14 lumbia, to prepare and submit such reports as the Author15 ity considers appropriate to assist it in carrying out its

16 responsibilities under this Act, including submitting copies

17 of any reports regarding revenues, expenditures, budgets,

18 costs, plans, operations, estimates, and other financial or

19 budgetary matters of the District government.

20 SEC. 224. REPORTS AND COMMENTS.

21 (a) ANNUAL REPORTS TO CONGRESS.—Not later

22 than 30 days after the last day of each fiscal year which

23 is a control year, the Authority shall submit a report to

24 Congress describing—
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1 (1) the progress made by the District govern2 ment in meeting the objectives of this Act during the

3 fiscal year;

4 (2) the assistance provided by the Authority to

5 the District government in meeting the purposes of

6 this Act for the fiscal year; and

7 (3) any other activities of the Authority during

8 the fiscal year.

9 (b) REVIEW AND ANALYSIS OF PERFORMANCE AND

10 FINANCIAL ACCOUNTABILITY REPORTS.—

11 (1) IN GENERAL.—The Authority shall review

12 each report prepared and submitted by the Mayor

13 under section 456 of the District of Columbia Self14 Government and Governmental Reorganization Act

15 (as added by section 3(a) of the Federal Payment

16 Reauthorization Act of 1994), and shall submit a re17 port to Congress analyzing the completeness and ac18 curacy of such reports.

19 (2) SUBMISSION OF REPORTS BY MAYOR.—Sec20 tion 456 of the District of Columbia Self-Govern21 ment and Governmental Reorganization Act, as

22 added by section 3(a) of the Federal Payment Reau23 thorization Act of 1994, is amended by adding at

24 the end the following new subsection:
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1 ‘‘(e) SUBMISSION OF REPORTS TO DISTRICT OF CO2 LUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT

3 ASSISTANCE AUTHORITY.—In the case of any report sub4 mitted by the Mayor under this section for a fiscal year

5 (or any quarter of a fiscal year) which is a control year

6 under the District of Columbia Financial Responsibility

7 and Management Assistance Act of 1995, the Mayor shall

8 submit the report to the District of Columbia Financial

9 Responsibility and Management Assistance Authority es10 tablished under section 101(a) of such Act in addition to

11 any other individual to whom the Mayor is required to

12 submit the report under this section.’’.

13 (c) COMMENTS REGARDING ACTIVITIES OF DISTRICT

14 GOVERNMENT.—At any time during a control year, the

15 Authority may submit a report to Congress describing any

16 action taken by the District government (or any failure

17 to act by the District government) which the Authority

18 determines will adversely affect the District government’s

19 ability to comply with an approved financial plan and

20 budget under subtitle A or will otherwise have a signifi21 cant adverse impact on the best interests of the District

22 of Columbia.

23 (d) REPORTS ON EFFECT OF FEDERAL LAWS ON

24 DISTRICT GOVERNMENT.—At any time during any year,

25 the Authority may submit a report to the Mayor, the
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1 Council, the President, and Congress on the effect of laws

2 enacted by Congress on the financial stability and man3 agement efficiency on the financial plan and budget for

4 the year and on the District government in general.

5 (e) MAKING REPORTS PUBLICLY AVAILABLE.—The

6 Authority shall make any report submitted under this sec7 tion available to the public, except to the extent that the

8 Authority determines that the report contains confidential

9 material.

10 TITLE III—MISCELLANEOUS

11 PROVISIONS

12 SEC. 301. OTHER DISTRICT BUDGET REFORMS.

13 (a) INCLUSION OF ALL FUNDS OF DISTRICT IN

14 BUDGET OF DISTRICT GOVERNMENT.—

15 (1) IN GENERAL.—Section 103 of such Act

16 (sec. 1–202, D.C. Code) is amended—

17 (A) by amending paragraph (10) to read

18 as follows:

19 ‘‘(10) The term ‘District revenues’ means all

20 funds derived from taxes, fees, charges, miscellane21 ous receipts, the annual Federal payment to the Dis22 trict authorized under title V, grants and other

23 forms of financial assistance, or the sale of bonds,

24 notes, or other obligations, and any funds adminis-
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1 tered by the District government under cost sharing

2 arrangements.’’;

3 (B) by amending paragraph (14) to read

4 as follows:

5 ‘‘(14) The term ‘resources’ means revenues,

6 balances, enterprise or other revolving funds, and

7 funds realized from borrowing.’’; and

8 (C) by amending paragraph (15) to read

9 as follows:

10 ‘‘(15) The term ‘budget’ means the entire re11 quest for appropriations or loan or spending author12 ity for all activities of all departments or agencies of

13 the District of Columbia financed from all existing,

14 proposed or anticipated resources, and shall include

15 both operating and capital expenditures.’’.

16 (2) EFFECTIVE DATE.—The amendments made

17 by paragraph (1) shall apply with respect to reve18 nues, resources, and budgets of the District of Co19 lumbia for fiscal years beginning with fiscal year

20 1996.

21 (b) RESTRICTIONS ON REPROGRAMMING OF

22 FUNDS.—

23 (1) IN GENERAL.—Section 446 of such Act

24 (sec. 47–304, D.C. Code) is amended by adding at

25 the end the following: ‘‘After the adoption of the an-
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1 nual budget for a fiscal year (beginning with the an2 nual budget for fiscal year 1995), no reprogramming

3 of amounts in the budget may occur unless the

4 Mayor submits to the Council a request for such

5 reprogramming and the Council approves the re6 quest, but only if any additional expenditures pro7 vided under such request for an activity are offset

8 by reductions in expenditures for another activity.’’.

9 (2) CONFORMING AMENDMENT.—Section 5 of

10 D.C. Law 3–100 (sec. 47–364, D.C. Code) is hereby

11 repealed.

12 (c) PERMITTING COUNCIL TO REQUEST BUDGET AD13 JUSTMENTS FROM MAYOR.—Section 442 of the District

14 of Columbia Self-Government and Governmental Reorga15 nization Act (sec. 47–301, D.C. Code), as amended by sec16 tion 202(f), is amended by adding at the end the following

17 new subsection:

18 ‘‘(e) The Mayor shall prepare and submit to the

19 Council a proposed supplemental or deficiency budget rec20 ommendation under subsection (c) if the Council by reso21 lution requests the Mayor to submit such a recommenda22 tion.’’.

23 (d) REQUIRING BUDGETARY IMPACT STATEMENTS

24 TO ACCOMPANY ACTS OF COUNCIL.—
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1 (1) IN GENERAL.—Section 602(c) of the Dis2 trict of Columbia Self-Government and Govern3 mental Reorganization Act (sec. 1–233(c), D.C.

4 Code) is amended by adding at the end the following

5 new paragraph:

6 ‘‘(3) The Council shall submit with each Act trans7 mitted under this subsection an estimate of the costs

8 which will be incurred by the District of Columbia as a

9 result of the enactment of the Act in each of the first 4

10 fiscal years for which the Act is in effect, together with

11 a statement of the basis for such estimate.’’.

12 (2) EFFECTIVE DATE.—The amendment made

13 by paragraph (1) shall apply to Acts of the Council

14 transmitted on or after October 1, 1995.

15 (e) EXTENSION OF AUTHORIZATION OF ANNUAL

16 FEDERAL PAYMENT.—Section 503(c) of the District of

17 Columbia Self-Government and Governmental Reorganiza18 tion Act (sec. 47–3406.1(c), D.C. Code), as added by sec19 tion 2 of the Federal Payment Reauthorization Act of

20 1994, is amended by striking ‘‘fiscal year 1996’’ and in21 serting ‘‘each of the fiscal years 1996, 1997, 1998, and

22 1999’’.
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1 SEC. 302. ESTABLISHMENT OF CHIEF FINANCIAL OFFICER

2 OF DISTRICT OF COLUMBIA.

3 (a) IN GENERAL.—Part B of title IV of the District

4 of Columbia Self-Government and Governmental Reorga5 nization Act is amended by adding at the end the following

6 new section:

7 ‘‘CHIEF FINANCIAL OFFICER OF THE DISTRICT OF

8 COLUMBIA

9 ‘‘SEC. 424. (a) ESTABLISHMENT OF OFFICE.—

10 ‘‘(1) IN GENERAL.—There is hereby established

11 within the executive branch of the government of the

12 District of Columbia an Office of the Chief Financial

13 Officer of the District of Columbia (hereafter re14 ferred to as the ‘Office’), which shall be headed by

15 the Chief Financial Officer of the District of Colum16 bia (hereafter referred to as the ‘Chief Financial

17 Officer’).

18 ‘‘(2) OFFICE OF THE TREASURER.—The Office

19 shall include the Office of the Treasurer, which shall

20 be headed by the Treasurer of the District of Colum21 bia, who shall be appointed by the Chief Financial

22 Officer and subject to the Chief Financial Officer’s

23 direction and control.

24 ‘‘(3) TRANSFER OF OTHER OFFICES.—Effective

25 with the appointment of the first Chief Financial Of26 ficer under subsection (b), the functions and person-
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1 nel of the following offices are transferred to the

2 Office:

3 ‘‘(A) The Controller of the District of

4 Columbia.

5 ‘‘(B) The Office of the Budget.

6 ‘‘(C) The Office of Financial Information

7 Services.

8 ‘‘(D) The Department of Finance and

9 Revenue.

10 ‘‘(4) SERVICE OF HEADS OF OTHER OFFICES.—

11 ‘‘(A) OFFICE HEADS APPOINTED BY

12 MAYOR.—With respect to the head of the Office

13 of the Budget and the head of the Department

14 of Finance and Revenue—

15 ‘‘(i) the Mayor shall appoint such in16 dividuals with the advice and consent of

17 the Council, subject to the approval of the

18 Authority during a control year; and

19 ‘‘(ii) during a control year, the Au20 thority may remove such individuals from

21 office for cause, after consultation with the

22 Mayor.

23 ‘‘(B) OFFICE HEADS APPOINTED BY CHIEF

24 FINANCIAL OFFICER.—With respect to the

25 Controller of the District of Columbia and the
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1 head of the Office of Financial Information

2 Services—

3 ‘‘(i) the Chief Financial Officer shall

4 appoint such individuals subject to the ap5 proval of the Mayor; and

6 ‘‘(ii) the Chief Financial Officer may

7 remove such individuals from office for

8 cause, after consultation with the Mayor.

9 ‘‘(b) APPOINTMENT.—

10 ‘‘(1) IN GENERAL.—

11 ‘‘(A) CONTROL YEAR.—During a control

12 year, the Chief Financial Officer shall be ap13 pointed by the Mayor as follows:

14 ‘‘(i) Prior to the appointment of the

15 Chief Financial Officer, the Authority may

16 submit recommendations for the appoint17 ment to the Mayor.

18 ‘‘(ii) In consultation with the Author19 ity and the Council, the Mayor shall nomi20 nate an individual for appointment and no21 tify the Council of the nomination.

22 ‘‘(iii) After the expiration of the 7-day

23 period which begins on the date the Mayor

24 notifies the Council of the nomination
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1 under clause (ii), the Mayor shall notify

2 the Authority of the nomination.

3 ‘‘(iv) The nomination shall be effective

4 subject to approval by a majority vote of

5 the Authority.

6 ‘‘(B) OTHER YEARS.—During a year other

7 than a control year, the Chief Financial Officer

8 shall be appointed by the Mayor with the advice

9 and consent of the Council. Prior to appoint10 ment, the Authority may submit recommenda11 tions for the appointment.

12 ‘‘(2) REMOVAL.—

13 ‘‘(A) CONTROL YEAR.—During a control

14 year, the Chief Financial Officer may be re15 moved for cause by the Authority or by the

16 Mayor with the approval of the Authority.

17 ‘‘(B) OTHER YEARS.—During a year other

18 than a control year, the Chief Financial Officer

19 shall serve at the pleasure of the Mayor, except

20 that the Chief Financial Officer may only be re21 moved for cause.

22 ‘‘(3) SALARY.—The Chief Financial Officer

23 shall be paid at an annual rate determined by the

24 Mayor, except that such rate may not exceed the
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1 rate of basic pay payable for level IV of the Execu2 tive Schedule.

3 ‘‘(c) FUNCTIONS DURING CONTROL YEAR.—During

4 a control year, the Chief Financial Officer shall have the

5 following duties:

6 ‘‘(1) Preparing the financial plan and budget

7 for the use of the Mayor for purposes of subtitle A

8 of title II of the District of Columbia Financial Re9 sponsibility and Management Assistance Act of

10 1995.

11 ‘‘(2) Preparing the budgets of the District of

12 Columbia for the year for the use of the Mayor for

13 purposes of part D.

14 ‘‘(3) Assuring that all financial information pre15 sented by the Mayor is presented in a manner, and

16 is otherwise consistent with, the requirements of the

17 District of Columbia Financial Responsibility and

18 Management Assistance Act of 1995.

19 ‘‘(4) Implementing appropriate procedures and

20 instituting such programs, systems, and personnel

21 policies within the Officer’s authority, to ensure that

22 budget, accounting and personnel control systems

23 and structures are synchronized for budgeting and

24 control purposes on a continuing basis.
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1 ‘‘(5) With the approval of the Authority,

2 preparing and submitting to the Mayor and the

3 Council—

4 ‘‘(A) annual estimates of all revenues of

5 the District of Columbia (without regard to the

6 source of such revenues), including proposed

7 revenues, which shall be binding on the Mayor

8 and the Council for purposes of preparing and

9 submitting the budget of the District govern10 ment for the year under part D, except that the

11 Mayor and the Council may prepare the budget

12 based on estimates of revenues which are lower

13 than those prepared by the Chief Financial

14 Officer; and

15 ‘‘(B) quarterly re-estimates of the revenues

16 of the District of Columbia during the year.

17 ‘‘(6) Supervising and assuming responsibility

18 for financial transactions to ensure adequate control

19 of revenues and resources, and to ensure that appro20 priations are not exceeded.

21 ‘‘(7) Maintaining systems of accounting and in22 ternal control designed to provide—

23 ‘‘(A) full disclosure of the financial impact

24 of the activities of the District government;
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1 ‘‘(B) adequate financial information need2 ed by the District government for management

3 purposes;

4 ‘‘(C) effective control over, and account5 ability for, all funds, property, and other assets

6 of the District of Columbia; and

7 ‘‘(D) reliable accounting results to serve as

8 the basis for preparing and supporting agency

9 budget requests and controlling the execution of

10 the budget.

11 ‘‘(8) Submitting to the Council a financial

12 statement of the District government, containing

13 such details and at such times as the Council may

14 specify.

15 ‘‘(9) Supervising and assuming responsibility

16 for the assessment of all property subject to assess17 ment and special assessments within the corporate

18 limits of the District of Columbia for taxation, pre19 paring tax maps, and providing such notice of taxes

20 and special assessments (as may be required by

21 law).

22 ‘‘(10) Supervising and assuming responsibility

23 for the levying and collection of all taxes, special as24 sessments, licensing fees, and other revenues of the

25 District of Columbia (as may be required by law),
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1 and receiving all amounts paid to the District of Co2 lumbia from any source (including the Authority).

3 ‘‘(11) Maintaining custody of all public funds

4 belonging to or under the control of the District gov5 ernment (or any department or agency of the Dis6 trict government), and depositing all amounts paid

7 in such depositories and under such terms and con8 ditions as may be designated by the Council or the

9 Authority.

10 ‘‘(12) Maintaining custody of all investment

11 and invested funds of the District government or in

12 possession of the District government in a fiduciary

13 capacity, and maintaining the safekeeping of all

14 bonds and notes of the District government and the

15 receipt and delivery of District government bonds

16 and notes for transfer, registration, or exchange.

17 ‘‘(13) Apportioning the total of all appropria18 tions and funds made available during the year for

19 obligation so as to prevent obligation or expenditure

20 in a manner which would result in a deficiency or a

21 need for supplemental appropriations during the

22 year, and (with respect to appropriations and funds

23 available for an indefinite period and all authoriza24 tions to create obligations by contract in advance of

25 appropriations) apportioning the total of such appro-
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1 priations, funds, or authorizations in the most effec2 tive and economical manner.

3 ‘‘(14) Certifying all contracts (whether directly

4 or through delegation) prior to execution as to the

5 availability of funds to meet the obligations expected

6 to be incurred by the District government under

7 such contracts during the year.

8 ‘‘(15) Prescribing the forms of receipts, vouch9 ers, bills, and claims to be used by all agencies, of10 fices, and instrumentalities of the District govern11 ment.

12 ‘‘(16) Certifying and approving prior to pay13 ment all bills, invoices, payrolls, and other evidences

14 of claims, demands, or charges against the District

15 government, and determining the regularity, legality,

16 and correctness of such bills, invoices, payrolls,

17 claims, demands, or charges.

18 ‘‘(17) In coordination with the Inspector Gen19 eral of the District of Columbia, performing internal

20 audits of accounts and operations and records of the

21 District government, including the examination of

22 any accounts or records of financial transactions,

23 giving due consideration to the effectiveness of ac24 counting systems, internal control, and related ad-
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1 ministrative practices of the departments and agen2 cies of the District government.

3 ‘‘(d) FUNCTIONS DURING ALL YEARS.—At all times,

4 the Chief Financial Officer shall have the following duties:

5 ‘‘(1) Exercising responsibility for the adminis6 tration and supervision of the District of Columbia

7 Treasurer (except that the Chief Financial Officer

8 may delegate any portion of such responsibility as

9 the Chief Financial Officer considers appropriate

10 and consistent with efficiency).

11 ‘‘(2) Administering all borrowing programs of

12 the District government for the issuance of long13 term and short-term indebtedness.

14 ‘‘(3) Administering the cash management pro15 gram of the District government, including the in16 vestment of surplus funds in governmental and non17 governmental interest-bearing securities and ac18 counts.

19 ‘‘(4) Administering the centralized District gov20 ernment payroll and retirement systems.

21 ‘‘(5) Governing the accounting policies and sys22 tems applicable to the District government.

23 ‘‘(6) Preparing appropriate annual, quarterly,

24 and monthly financial reports of the accounting and

25 financial operations of the District government.
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1 ‘‘(7) Not later than 120 days after the end of

2 each fiscal year (beginning with fiscal year 1995),

3 preparing the complete financial statement and re4 port on the activities of the District government for

5 such fiscal year, for the use of the Mayor under sec6 tion 448(a)(4) of the District of Columbia Self-Gov7 ernment and Governmental Reorganization Act.

8 ‘‘(e) FUNCTIONS OF TREASURER.—At all times, the

9 Treasurer shall have the following duties:

10 ‘‘(1) Assisting the Chief Financial Officer in re11 porting revenues received by the District govern12 ment, including submitting annual and quarterly re13 ports concerning the cash position of the District

14 government not later than 60 days after the last day

15 of the quarter (or year) involved. Such reports shall

16 include:

17 ‘‘(A) Comparative reports of revenue and

18 other receipts by source, including tax, nontax,

19 and Federal revenues, grants and reimburse20 ments, capital program loans, and advances.

21 Each source shall be broken down into specific

22 components.

23 ‘‘(B) Statements of the cash flow of the

24 District government for the preceding quarter

25 or year, including receipts, disbursements, net
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1 changes in cash inclusive of the beginning bal2 ance, cash and investment, and the ending bal3 ance, inclusive of cash and investment. Such

4 statements shall reflect the actual, planned, bet5 ter or worse dollar amounts and the percentage

6 change with respect to the current quarter,

7 year-to-date, and fiscal year.

8 ‘‘(C) Quarterly cash flow forecast for the

9 quarter or year involved, reflecting receipts, dis10 bursements, net change in cash inclusive of the

11 beginning balance, cash and investment, and

12 the ending balance, inclusive of cash and invest13 ment with respect to the actual dollar amounts

14 for the quarter or year, and projected dollar

15 amounts for each of the 3 succeeding quarters.

16 ‘‘(D) Monthly reports reflecting a detailed

17 summary analysis of all District of Columbia

18 government investments, including, but not lim19 ited to—

20 ‘‘(i) the total of long-term and short21 term investments;

22 ‘‘(ii) a detailed summary analysis of

23 investments by type and amount, including

24 purchases, sales (maturities), and interest;
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1 ‘‘(iii) an analysis of investment port2 folio mix by type and amount, including li3 quidity, quality/risk of each security, and

4 similar information;

5 ‘‘(iv) an analysis of investment strat6 egy, including near-term strategic plans

7 and projects of investment activity, as well

8 as forecasts of future investment strategies

9 based on anticipated market conditions,

10 and similar information;

11 ‘‘(v) an analysis of cash utilization, in12 cluding—

13 ‘‘(I) comparisons of budgeted

14 percentages of total cash to be in15 vested with actual percentages of cash

16 invested and the dollar amounts;

17 ‘‘(II) comparisons of the next re18 turn on invested cash expressed in

19 percentages (yield) with comparable

20 market indicators and established Dis21 trict of Columbia government yield ob22 jectives; and

23 ‘‘(III) comparisons of estimated

24 dollar return against actual dollar

25 yield.
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1 ‘‘(E) Monthly reports reflecting a detailed

2 summary analysis of long-term and short-term

3 borrowings inclusive of debt as authorized by

4 section 603, in the current fiscal year and the

5 amount of debt for each succeeding fiscal year

6 not to exceed 5 years. All such reports shall

7 reflect—

8 ‘‘(i) the amount of debt outstanding

9 by type of instrument;

10 ‘‘(ii) the amount of authorized and

11 unissued debt, including availability of

12 short-term lines of credit, United States

13 Treasury borrowings, and similar informa14 tion;

15 ‘‘(iii) a maturity schedule of the debt;

16 ‘‘(iv) the rate of interest payable upon

17 the debt; and

18 ‘‘(v) the amount of debt service re19 quirements and related debt service re20 serves.

21 ‘‘(2) Such other functions assigned to the Chief

22 Financial Officer under subsection (c) or subsection

23 (d) as the Chief Financial Officer may delegate.

24 ‘‘(f) DEFINITIONS.—In this section—
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1 ‘‘(1) the term ‘Authority’ means the District of

2 Columbia Financial Responsibility and Management

3 Assistance Authority established under section

4 101(a) of the District of Columbia Financial Re5 sponsibility and Management Assistance Act of

6 1995;

7 ‘‘(2) the term ‘control year’ has the meaning

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

9 and

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

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

12 such Act.’’.

13 (b) PROHIBITING DELEGATION OF CHIEF FINANCIAL

14 OFFICER’S AUTHORITY.—Section 422(6) of the District

15 of Columbia Self-Government and Governmental Reorga16 nization Act (sec. 1–242(6), D.C. Code) is amended by

17 adding at the end the following: ‘‘Nothing in the previous

18 sentence may be construed to permit the Mayor to dele19 gate any functions assigned to the Chief Financial Officer

20 of the District of Columbia under section 424, without re21 gard to whether such functions are assigned to the Chief

22 Financial Officer under such section during a control year

23 (as defined in section 305(4) of the District of Columbia

24 Financial Responsibility and Management Assistance Act

25 of 1995) or during any other year.’’.
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1 (c) CONFORMING AMENDMENT.—Effective upon the

2 appointment of the Chief Financial Officer of the District

3 of Columbia under section 424(b) of the District of Co4 lumbia Self-Government and Governmental Reorganiza5 tion Act (as added by subsection (a)), D.C. Law 3–138

6 (sec. 47–314 et seq., D.C. Code) is repealed.

7 (d) CLERICAL AMENDMENT.—The table of contents

8 of part B of title IV of the District of Columbia Self-Gov9 ernment and Governmental Reorganization Act is amend10 ed by adding at the end the following new item:

‘‘Sec. 424. Chief Financial Officer of the District of Columbia.’’.

11 SEC. 303. REVISIONS TO POWERS AND DUTIES OF INSPEC12 TOR GENERAL OF DISTRICT OF COLUMBIA.

13 (a) APPOINTMENT AND TERM OF SERVICE; INDE14 PENDENCE OF BUDGET.—Section 208(a) of the District

15 of Columbia Procurement Practices Act of 1985 (sec. 1–

16 1182.8(a), D.C. Code) is amended by striking paragraphs

17 (1) and (2) and inserting the following:

18 ‘‘(1)(A) There is created within the executive branch

19 of the government of the District of Columbia the Office

20 of the Inspector General. The Office shall be headed by

21 an Inspector General appointed pursuant to subparagraph

22 (B), who shall serve for a term of 6 years and shall be

23 subject to removal only for cause by the Mayor (with the

24 approval of the District of Columbia Financial Respon-
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1 sibility and Management Assistance Authority in a control

2 year) or (in the case of a control year) by the Authority.

3 The Inspector General may be reappointed for additional

4 terms.

5 ‘‘(B) During a control year, the Inspector General

6 shall be appointed by the Mayor as follows:

7 ‘‘(i) Prior to the appointment of the Inspector

8 General, the Authority may submit recommendations

9 for the appointment to the Mayor.

10 ‘‘(ii) In consultation with the Authority and the

11 Council, the Mayor shall nominate an individual for

12 appointment and notify the Council of the nomina13 tion.

14 ‘‘(iii) After the expiration of the 7-day period

15 which begins on the date the Mayor notifies the

16 Council of the nomination under clause (ii), the

17 Mayor shall notify the Authority of the nomination.

18 ‘‘(iv) The nomination shall be effective subject

19 to approval by a majority vote of the Authority.

20 ‘‘(C) During a year which is not a control year, the

21 Inspector General shall be appointed by the Mayor with

22 the advice and consent of the Council. Prior to appoint23 ment, the Authority may submit recommendations for the

24 appointment.
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1 ‘‘(D) The Inspector General shall be appointed with2 out regard to party affiliation and solely on the basis of

3 integrity and demonstrated ability in accounting, auditing,

4 financial management analysis, public administration, or

5 investigations.

6 ‘‘(E) The Inspector General shall be paid at an an7 nual rate determined by the Mayor, except that such rate

8 may not exceed the rate of basic pay payable for level IV

9 of the Executive Schedule.

10 ‘‘(2) The annual budget for the Office shall be adopt11 ed as follows:

12 ‘‘(A) The Inspector General shall prepare and

13 submit to the Mayor, for inclusion in the annual

14 budget of the District of Columbia under part D of

15 title IV of the District of Columbia Self-Government

16 and Governmental Reorganization Act for the year,

17 annual estimates of the expenditures and appropria18 tions necessary for the operation of the Office for

19 the year. All such estimates shall be forwarded by

20 the Mayor to the Council of the District of Columbia

21 for its action pursuant to sections 446 and 603(c)

22 of such Act, without revision but subject to rec23 ommendations. Notwithstanding any other provision

24 of such Act, the Council may comment or make rec-
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1 ommendations concerning such estimates, but shall

2 have no authority to revise such estimates.

3 ‘‘(B) Upon receipt of the annual Federal pay4 ment for the District of Columbia authorized under

5 title V of the District of Columbia Self-Government

6 and Governmental Reorganization Act, the Mayor

7 shall deposit a portion of the payment (equal to the

8 estimate of necessary appropriations described in

9 subparagraph (A)) into a dedicated fund within the

10 government of the District of Columbia.

11 ‘‘(C) Amounts deposited in the dedicated fund

12 described in subparagraph (B) shall be available

13 solely for the operation of the Office, and shall be

14 paid to the Inspector General by the Mayor (acting

15 through the Chief Financial Officer of the District

16 of Columbia) in such installments and at such times

17 as the Inspector General requires.’’.

18 (b) ADDITIONAL POWERS AND DUTIES.—

19 (1) IN GENERAL.—Section 208(a)(3) of the

20 District of Columbia Procurement Practices Act of

21 1985 (sec. 1–1182.8(a)(3), D.C. Code) is amend22 ed—

23 (A) by striking ‘‘and’’ at the end of sub24 paragraph (E);
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1 (B) by striking the period at the end of

2 subparagraph (F) and inserting a semicolon;

3 and

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

5 subparagraphs:

6 ‘‘(G) Pursuant to a contract described in para7 graph (4), provide certifications under section

8 602(b)(5) of title VI of the District of Columbia

9 Revenue Act of 1939;

10 ‘‘(H) Pursuant to a contract described in para11 graph (4), audit the complete financial statement

12 and report on the activities of the District govern13 ment for such fiscal year, for the use of the Mayor

14 under section 448(a)(4) of the District of Columbia

15 Self-Government and Governmental Reorganization

16 Act; and

17 ‘‘(I) Not later than 30 days before the begin18 ning of each fiscal year (beginning with fiscal year

19 1996) and in consultation with the Mayor, the

20 Council, and the Authority, establish an annual plan

21 for audits to be conducted under this paragraph dur22 ing the fiscal year under which the Inspector Gen23 eral shall report only those variances which are in an

24 amount equal to or greater than $1,000,000 or 1

25 percent of the applicable annual budget for the pro-
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1 gram in which the variance is found (whichever is

2 lesser).’’.

3 (2) LIMITATION ON CONTRACT WITH OUTSIDE

4 AUDITOR.—Section 208(a) of such Act (sec. 1–

5 1182.8(a), D.C. Code) is amended by adding at the

6 end the following new paragraph:

7 ‘‘(4) The Inspector General shall enter into a contract

8 with an auditor who is not an officer or employee of the

9 Office to—

10 ‘‘(A) audit the financial statement and report

11 described in paragraph (3)(H) for a fiscal year, ex12 cept that the financial statement and report may not

13 be audited by the same auditor (or an auditor em14 ployed by or affiliated with the same auditor) for

15 more than 3 consecutive fiscal years; and

16 ‘‘(B) audit the certification described in para17 graph (3)(G).’’.

18 (3) SUBPOENA POWER.—Section 208(c) of such

19 Act (sec. 1–1182.8(c), D.C. Code) is amended—

20 (A) by striking ‘‘(c)’’ and inserting

21 ‘‘(c)(1)’’; and

22 (B) by adding at the end the following new

23 paragraph:

24 ‘‘(2)(A) The Inspector General may issue subpoenas

25 requiring the attendance and testimony of witnesses and
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1 the production of any evidence relating to any matter

2 under investigation by the Inspector General.

3 ‘‘(B) If a person refuses to obey a subpoena issued

4 under subparagraph (A), the Inspector General may apply

5 to the Superior Court of the District of Columbia for an

6 order requiring that person to appear before the Inspector

7 General to give testimony, produce evidence, or both, re8 lating to the matter under investigation. Any failure to

9 obey the order of the court may be punished by the Supe10 rior Court as civil contempt.’’.

11 (4) REFERRAL OF FINDINGS OF CRIMINAL AC12 TIVITY TO ATTORNEY GENERAL.—Section 208 of

13 such Act (sec. 1–1182.8, D.C. Code) is amended by

14 adding at the end the following new subsection:

15 ‘‘(f) In carrying out the duties and responsibilities es16 tablished under this section, the Inspector General shall

17 report expeditiously to the Attorney General whenever the

18 Inspector General has reasonable grounds to believe there

19 has been a violation of Federal or District criminal law.’’.

20 (c) REVISION OF CURRENT POWERS AND DUTIES.—

21 (1) LIAISON REPRESENTATIVE FOR ALL EXTER22 NAL AUDITS OF DISTRICT GOVERNMENT.—Section

23 208(a)(3)(B) of such Act (sec. 1–1182.8(a)(3)(B),

24 D.C. Code) is amended by striking ‘‘executive

25 branch’’.
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1 (2) APPLICATION OF GENERALLY ACCEPTED

2 ACCOUNTING PRINCIPLES.—Section 208(b) of such

3 Act (sec. 1–1182.8(b), D.C. Code) is amended by in4 serting ‘‘accounting and’’ after ‘‘accepted’’.

5 (3) ACCESS TO ALL NECESSARY RECORDS.—

6 Section 208(c)(1) of such Act (sec. 1–1182.8(c),

7 D.C. Code), as amended by subsection (b)(3), is

8 amended by striking ‘‘relating to contracts and pro9 curement’’.

10 (4) SUBMISSION OF REPORTS TO AUTHORITY

11 DURING CONTROL YEAR.—Section 208(d) of such

12 Act (sec. 1–1182.8(d), D.C. Code) is amended—

13 (A) in paragraph (1), by striking ‘‘the

14 Mayor and the Council’’ and inserting ‘‘the Au15 thority (or, with respect to a fiscal year which

16 is not a control year, the Mayor and the Coun17 cil)’’; and

18 (B) in paragraph (2), by striking ‘‘the

19 Mayor’’ and inserting ‘‘the Authority, the

20 Mayor,’’.

21 (5) MAKING REPORTS PUBLICLY AVAILABLE.—

22 Section 208(d) of such Act (sec. 1–1182.8(d), D.C.

23 Code) is amended by adding at the end the following

24 new paragraph:
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1 ‘‘(4) The Inspector General shall make each report

2 submitted under this subsection available to the public, ex3 cept to the extent that the report contains information de4 termined by the Inspector General to be privileged.’’.

5 (6) RESPONDING TO REQUESTS OF AUTHOR6 ITY.—Section 208(e) of such Act (sec. 1–1182.8(e),

7 D.C. Code) is amended by striking ‘‘the Director’’

8 and inserting ‘‘the Authority’’.

9 (d) DEFINITIONS.—Section 208 of such Act (sec. 1–

10 1182.8, D.C. Code), as amended by subsection (b)(4), is

11 amended by adding at the end the following new sub12 section:

13 ‘‘(g) In this section—

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

15 Columbia Financial Responsibility and Management

16 Assistance Authority established under section

17 101(a) of the District of Columbia Financial Re18 sponsibility and Management Assistance Act of

19 1995;

20 ‘‘(2) the term ‘control year’ has the meaning

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

22 and

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

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

25 such Act.’’.
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1 (e) DEADLINE FOR APPOINTMENT.—

2 (1) IN GENERAL.—Not later than 30 days after

3 its members are appointed, the Authority shall ap4 point the Inspector General of the District of Colum5 bia pursuant to section 208(a)(1) of the District of

6 Columbia Procurement Practices Act of 1985 (as

7 amended by subsection (a)).

8 (2) TRANSITION RULE.—The term of service of

9 the individual serving as the Inspector General

10 under section 208(a) of the District of Columbia

11 Procurement Practices Act of 1985 prior to the ap12 pointment of the Inspector General by the Authority

13 under section 208(a)(1) of such Act (as amended by

14 subsection (a)) shall expire upon the appointment of

15 the Inspector General by the Authority.

16 SEC. 304. COUNCIL APPROVAL OF CERTAIN CONTRACTS.

17 (a) IN GENERAL.—Section 451 of the District of Co18 lumbia Self-Government and Governmental Reorganiza19 tion Act (sec. 1–1130, D.C. Code) is amended—

20 (1) by amending the heading to read as follows:

21 ‘‘SPECIAL RULES REGARDING CERTAIN CONTRACTS’’;

22 (2) by striking ‘‘No contract’’ and inserting

23 ‘‘(a) CONTRACTS EXTENDING BEYOND ONE

24 YEAR.—No contract’’; and
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1 (3) by adding at the end the following new sub2 section:

3 ‘‘(b) CONTRACTS EXCEEDING CERTAIN AMOUNT.—

4 ‘‘(1) IN GENERAL.—No contract involving ex5 penditures in excess of $1,000,000 during a 12-

6 month period may be made unless the Mayor sub7 mits the contract to the Council for its approval and

8 the Council approves the contract (in accordance

9 with criteria established by act of the Council).

10 ‘‘(2) DEEMED APPROVAL.—For purposes of

11 paragraph (1), the Council shall be deemed to ap12 prove a contract if—

13 ‘‘(A) during the 10-day period beginning

14 on the date the Mayor submits the contract to

15 the Council, no member of the Council intro16 duces a resolution approving or disapproving

17 the contract; or

18 ‘‘(B) during the 45-calendar day period be19 ginning on the date the Mayor submits the con20 tract to the Council, the Council does not dis21 approve the contract.’’.

22 (b) CLERICAL AMENDMENT.—The table of contents

23 of the District of Columbia Self-Government and Govern24 mental Reorganization Act is amended by amending the

25 item relating to section 451 to read as follows:

‘‘Sec. 451. Special rules regarding certain contracts.’’.
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to contracts made on or after the

3 date of the enactment of this Act.

4 SEC. 305. DEFINITIONS.

5 In this Act, the following definitions apply:

6 (1) The term ‘‘Authority’’ means the District of

7 Columbia Financial Responsibility and Management

8 Assistance Authority established under section

9 101(a).

10 (2) The term ‘‘Council’’ means the Council of

11 the District of Columbia.

12 (3) The term ‘‘control period’’ has the meaning

13 given such term in section 209.

14 (4) The term ‘‘control year’’ means any fiscal

15 year for which a financial plan and budget approved

16 by the Authority under section 202(b) is in effect,

17 and includes fiscal year 1996.

18 (5) The term ‘‘District government’’ means the

19 government of the District of Columbia, including

20 any department, agency or instrumentality of the

21 government of the District of Columbia; any inde22 pendent agency of the District of Columbia estab23 lished under part F of title IV of the District of Co24 lumbia Self-Government and Governmental Reorga25 nization Act or any other agency, board, or commis-
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1 sion established by the Mayor or the Council; the

2 courts of the District of Columbia; the Council of

3 the District of Columbia; and any other agency, pub4 lic authority, or public benefit corporation which has

5 the authority to receive monies directly or indirectly

6 from the District of Columbia (other than monies re7 ceived from the sale of goods, the provision of serv8 ices, or the loaning of funds to the District of Co9 lumbia), except that such term does not include the

10 Authority.

11 (6) The term ‘‘financial plan and budget’’

12 means a financial plan and budget described in sub13 title A of title II, and includes the budgets of the

14 District government for the fiscal years which are

15 subject to the financial plan and budget (as de16 scribed in section 201(b)).

17 (7) The term ‘‘Mayor’’ means the Mayor of the

18 District of Columbia.

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