Union Calendar No. 47

104TH CONGRESS

1ST SESSION H. R. 1345

[Report No. 104–96]

A BILL

To eliminate budget deficits and management inefposes. agement Assistance Authority, and for other pur- of Columbia Financial Responsibility and Man- lumbia through the establishment of the District ficiencies in the government of the District of CoMARCH 30, 1995

Committed to the Committee of the Whole House on the

State of the Union and ordered to be printed
IB

Union Calendar No. 47

104TH CONGRESS

1ST SESSION H. R. 1345

[Report No. 104–96]

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

MARCH 30, 1995

Committed to the Committee of the Whole House on the State of the Union

and ordered to be printed

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

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

8 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
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Sec. 211. Authority to issue bonds.

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

Sec. 213. Establishment of debt service reserve fund.

Sec. 214. Other requirements for issuance of bonds.

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

Subtitle C—Other Duties of Authority

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

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

efficiency.

Sec. 223. Obtaining reports.

Sec. 224. Reports and comments.

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.
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1 (3) The current financial and management

2 problems of the District government have already

3 adversely affected the long-term economic health of

4 the District of Columbia by causing the migration of

5 residents and business out of the District of Colum6 bia and the failure of new residents and businesses

7 to move to the District of Columbia.

8 (4) The fiscal and management problems in the

9 District of Columbia government are pervasive

10 across all segments of the government.

11 (5) A comprehensive approach to fiscal, man12 agement, and structural problems must be under13 taken which exempts no part of the District govern14 ment and which preserves home rule for the citizens

15 of the District of Columbia.

16 (6) The current deficit of the District of Colum17 bia must be resolved over a multi-year period, since

18 it cannot be effectively addressed in a single year.

19 (7) The ability of the District government to

20 obtain funds from capital markets in the future will

21 be severely diminished without Congressional action

22 to restore its financial stability.

23 (8) The failure to improve the financial situa24 tion of the District government will adversely affect
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1 the long-term economic health of the entire National

2 Capital region.

3 (9) The efficient operation of the Federal Gov4 ernment may be adversely affected by the current

5 problems of the District of Columbia not only

6 through the services the District government pro7 vides directly to the Federal Government but

8 through services provided indirectly such as street

9 and traffic flow maintenance, public safety, and

10 services affecting tourism.

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

12 follows:

13 (1) To eliminate budget deficits and cash short14 ages of the District of Columbia through visionary

15 financial planning, sound budgeting, accurate reve16 nue forecasts, and careful spending.

17 (2) To ensure the most efficient and effective

18 delivery of services, including public safety services,

19 by the District government during a period of fiscal

20 emergency.

21 (3) To conduct necessary investigations and

22 studies to determine the fiscal status and oper23 ational efficiency of the District government.

24 (4) To assist the District government in—
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1 (A) restructuring its organization and

2 workforce to ensure that the residents of the

3 District of Columbia are served by a local gov4 ernment that is efficient and effective;

5 (B) achieving an appropriate relationship

6 with the Federal Government;

7 (C) ensuring the appropriate and efficient

8 delivery of services; and

9 (D) modernizing its budget, accounting,

10 personnel, procurement, information technology,

11 and management systems to ensure the maxi12 mum financial and performance accountability

13 of the District government and its officers and

14 employees.

15 (5) To enhance the District government’s ac16 cess to the capital markets and to ensure the contin17 ued orderly payment of its debt service obligations.

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

19 and economic vitality and operational efficiency of

20 the District of Columbia.

21 (7) To examine the programmatic and struc22 tural relationship between the District government

23 and the Federal Government.

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

25 impact of activities of the District government before
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1 such activities are implemented or submitted for

2 Congressional review.

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

4 may be construed—

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

6 date of the enactment of this Act of the District gov7 ernment to repay any individual or entity from

8 whom the District has borrowed funds, whether

9 through the issuance of bonds or otherwise; or

10 (2) to limit the authority of Congress to exer11 cise ultimate legislative authority over the District of

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

13 of the Constitution of the United States.

14 TITLE I—ESTABLISHMENT AND

15 ORGANIZATION OF AUTHORITY

16 SEC. 101. DISTRICT OF COLUMBIA FINANCIAL RESPON17 SIBILITY AND MANAGEMENT ASSISTANCE AU18 THORITY.

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

20 8, clause 17 of the Constitution of the United States, there

21 is hereby established the District of Columbia Financial

22 Responsibility and Management Assistance Authority,

23 consisting of members appointed by the President in ac24 cordance with subsection (b). Subject to the conditions de25 scribed in section 108 and except as otherwise provided
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1 in this Act, the Authority is established as an entity within

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

3 established as a department, agency, establishment, or in4 strumentality of the United States Government.

5 (b) MEMBERSHIP.—

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

7 of 5 members appointed by the President who meet

8 the qualifications described in subsection (c), except

9 that the Authority may take any action under this

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

11 time after the President has appointed 3 of its mem12 bers.

13 (2) CONSULTATION WITH CONGRESS.—The

14 President shall appoint the members of the Author15 ity after consulting with the Chair of the Committee

16 on Appropriations and the Chair of the Committee

17 on Government Reform and Oversight of the House

18 of Representatives, the Chair of the Committee on

19 Appropriations and the Chair of the Committee on

20 Governmental Affairs of the Senate, and the Dele21 gate to the House of Representatives from the Dis22 trict of Columbia.

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

24 of the members of the Authority as the Chair of the

25 Authority.
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1 (4) SENSE OF CONGRESS REGARDING DEAD2 LINE FOR APPOINTMENT.—It is the sense of Con3 gress that the President should appoint the members

4 of the Authority as soon as practicable after the

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

6 later than 25 days after the date of the enactment

7 of this Act.

8 (5) TERM OF SERVICE.—

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

10 subparagraph (B), each member of the Author11 ity shall be appointed for a term of 3 years.

12 (B) APPOINTMENT FOR TERM FOLLOWING

13 INITIAL TERM.—As designated by the President

14 at the time of appointment for the term imme15 diately following the initial term, of the mem16 bers appointed for the term immediately follow17 ing the initial term—

18 (i) 1 member shall be appointed for a

19 term of 1 year;

20 (ii) 2 members shall be appointed for

21 a term of 2 years; and

22 (iii) 2 members shall be appointed for

23 a term of 3 years.
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1 (C) REMOVAL.—The President may re2 move any member of the Authority only for

3 cause.

4 (c) QUALIFICATIONS FOR MEMBERSHIP.—An indi5 vidual meets the qualifications for membership on the Au6 thority if the individual—

7 (1) has knowledge and expertise in finance,

8 management, and the organization or operation of

9 business or government;

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

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

12 child, or sibling of an individual who provides goods

13 and services to the District government);

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

15 government; and

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

17 appointment, paid personal income or business taxes

18 to the District government.

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

20 the Authority shall serve without pay, but may receive re21 imbursement for any reasonable and necessary expenses

22 incurred by reason of service on the Authority.

23 (e) ADOPTION OF BY-LAWS FOR CONDUCTING BUSI24 NESS OF AUTHORITY.—
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1 (1) IN GENERAL.—As soon as practicable after

2 the appointment of its members, the Authority shall

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

4 activities under this Act, including procedures for

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

6 and procedures shall be public documents, and shall

7 be submitted by the Authority upon adoption to the

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

9 (2) CERTAIN ACTIVITIES REQUIRING APPROVAL

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

11 adopted pursuant to paragraph (1), the Authority

12 may conduct its operations under such procedures as

13 it considers appropriate, except that an affirmative

14 vote of a majority of the members of the Authority

15 shall be required in order for the Authority to—

16 (A) approve or disapprove a financial plan

17 and budget under subtitle A of title II;

18 (B) implement recommendations on finan19 cial stability and management responsibility

20 under section 207;

21 (C) give consent to the appointment of the

22 Chief Financial Officer of the District of Co23 lumbia under section 424 of the District of Co24 lumbia Self-Government and Governmental Re25 organization Act (as added by section 302); and
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1 (D) give consent to the appointment of the

2 Inspector General of the District of Columbia

3 under section 208(a) of the District of Colum4 bia Procurement Practices Act of 1985 (as

5 amended by section 303(a)).

6 (3) ADOPTION OF RULES AND REGULATIONS OF

7 DISTRICT OF COLUMBIA.—The Authority may incor8 porate in its by-laws, rules, and procedures under

9 this subsection such rules and regulations of the

10 District government as it considers appropriate to

11 enable it to carry out its activities under this Act

12 with the greatest degree of independence practicable.

13 SEC. 102. EXECUTIVE DIRECTOR AND STAFF OF AUTHOR14 ITY.

15 (a) EXECUTIVE DIRECTOR.—The Authority shall

16 have an Executive Director who shall be appointed by the

17 Chair with the consent of the Authority. The Executive

18 Director shall be paid at a rate determined by the Author19 ity, except that such rate may not exceed the rate of basic

20 pay payable for level IV of the Executive Schedule.

21 (b) STAFF.—With the approval of the Chair, the Ex22 ecutive Director may appoint and fix the pay of additional

23 personnel as the Executive Director considers appropriate,

24 except that no individual appointed by the Executive Di-
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1 rector may be paid at a rate greater than the rate of pay

2 for the Executive Director.

3 (c) INAPPLICABILITY OF CERTAIN CIVIL SERVICE

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

5 may be appointed without regard to the provisions of title

6 5, United States Code, governing appointments in the

7 competitive service, and may be paid without regard to

8 the provisions of chapter 51 and subchapter III of chapter

9 53 of that title relating to classification and General

10 Schedule pay rates.

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

12 of the Chair, the head of any Federal department or agen13 cy may detail, on a reimbursable or non-reimbursable

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

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

16 under this Act.

17 (e) PRESERVATION OF RETIREMENT AND CERTAIN

18 OTHER RIGHTS OF FEDERAL EMPLOYEES WHO BECOME

19 EMPLOYED BY THE AUTHORITY.—

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

21 within 2 months after separating from the Federal

22 Government, becomes employed by the Authority—

23 (A) may elect, for purposes of the retire24 ment system in which that individual last par25 ticipated before so separating, to have such in-
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1 dividual’s period of service with the Authority

2 treated in the same way as if performed in the

3 position within the Federal Government from

4 which separated, subject to the requisite em5 ployee deductions and agency contributions

6 being currently deposited in the appropriate

7 fund; and

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

9 such employee becomes reemployed by the Fed10 eral Government, shall be entitled to credit, for

11 the full period of such individual’s service with

12 the Authority, for purposes of determining the

13 applicable leave accrual rate.

14 (2) RETIREMENT.—

15 (A) CONTRIBUTIONS.—For purposes of

16 subparagraph (A) of paragraph (1)—

17 (i) the employee deductions referred

18 to in such paragraph shall be made from

19 basic pay for service with the Authority,

20 and shall be computed using the same per21 centage as would then apply if the individ22 ual were instead serving in the position

23 within the Federal Government from which

24 separated; and
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1 (ii) the agency contributions referred

2 to in such paragraph shall be made by the

3 Authority.

4 (B) DOUBLE COVERAGE NOT PER5 MITTED.—An individual who makes an election

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

7 such election remains in effect, to participate in

8 any retirement system for employees of the gov9 ernment of the District of Columbia.

10 (3) REGULATIONS.—The Office of Personnel

11 Management shall prescribe such regulations as may

12 be necessary to carry out this subsection. Regula13 tions to carry out paragraph (1)(A) shall be pre14 scribed in consultation with the office or agency of

15 the government of the District of Columbia having

16 jurisdiction over any retirement system referred to

17 in paragraph (2)(B).

18 SEC. 103. POWERS OF AUTHORITY.

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

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

21 sit and act at times and places, take testimony, and re22 ceive evidence as the Authority considers appropriate. The

23 Authority may administer oaths or affirmations to wit24 nesses appearing before it.
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1 (b) POWERS OF MEMBERS AND AGENTS.—Any mem2 ber or agent of the Authority may, if authorized by the

3 Authority, take any action which the Authority is author4 ized to take by this section.

5 (c) OBTAINING OFFICIAL DATA.—

6 (1) FROM FEDERAL GOVERNMENT.—Notwith7 standing sections 552 (commonly known as the

8 Freedom of Information Act) and 552b (the Govern9 ment in the Sunshine Act) of title 5, United States

10 Code, the Authority may secure directly from any

11 department or agency of the United States informa12 tion necessary to enable it to carry out this Act,

13 with the approval of the head of that department or

14 agency.

15 (2) FROM DISTRICT GOVERNMENT.—Notwith16 standing any other provision of law, the Authority

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

18 documents, information, or data from any entity of

19 the District government necessary to enable the Au20 thority to carry out its responsibilities under this

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

22 shall be granted direct access to such information

23 systems, records, documents or information or data

24 as will enable the Authority to carry out its respon25 sibilities under this Act. The head of the entity of
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1 the District government responsible shall provide the

2 Authority with such information and assistance (in3 cluding granting the Authority direct access to auto4 mated or other information systems) as the Author5 ity requires under this paragraph.

6 (d) GIFTS, BEQUESTS, AND DEVISES.—The Author7 ity may accept, use, and dispose of gifts, bequests, or de8 vises of services or property, both real and personal, for

9 the purpose of aiding or facilitating the work of the Au10 thority. Gifts, bequests, or devises of money and proceeds

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

12 or devises shall be deposited in such account as the Au13 thority may establish and shall be available for disburse14 ment upon order of the Chair.

15 (e) SUBPOENA POWER.—

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

17 subpoenas requiring the attendance and testimony of

18 witnesses and the production of any evidence relat19 ing to any matter under investigation by the Author20 ity. The attendance of witnesses and the production

21 of evidence may be required from any place within

22 the United States at any designated place of hearing

23 within the United States.

24 (2) FAILURE TO OBEY A SUBPOENA.—If a per25 son refuses to obey a subpoena issued under para-
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1 graph (1), the Authority may apply to a United

2 States district court for an order requiring that per3 son to appear before the Authority to give testimony,

4 produce evidence, or both, relating to the matter

5 under investigation. The application may be made

6 within the judicial district where the hearing is con7 ducted or where that person is found, resides, or

8 transacts business. Any failure to obey the order of

9 the court may be punished by the court as civil

10 contempt.

11 (3) SERVICE OF SUBPOENAS.—The subpoenas

12 of the Authority shall be served in the manner pro13 vided for subpoenas issued by United States district

14 court under the Federal Rules of Civil Procedure for

15 the United States district courts.

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

17 court to which application is be made under para18 graph (2) may be served in the judicial district in

19 which the person required to be served resides or

20 may be found.

21 (f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the

22 request of the Authority, the Administrator of General

23 Services may provide to the Authority, on a reimbursable

24 basis, the administrative support services necessary for the

25 Authority to carry out its responsibilities under this Act.
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1 (g) AUTHORITY TO ENTER INTO CONTRACTS.—The

2 Executive Director may enter into such contracts as the

3 Executive Director considers appropriate (subject to the

4 approval of the Chair) to carry out the Authority’s respon5 sibilities under this Act.

6 (h) CIVIL ACTIONS TO ENFORCE POWERS.—The Au7 thority may seek judicial enforcement of its authority to

8 carry out its responsibilities under this Act.

9 (i) PENALTIES.—

10 (1) ACTS PROHIBITED.—Any officer or em11 ployee of the District government who—

12 (A) takes any action in violation of any

13 valid order of the Authority or fails or refuses

14 to take any action required by any such order;

15 or

16 (B) prepares, presents, or certifies any in17 formation (including any projections or esti18 mates) or report for the Board or any of its

19 agents that is false or misleading, or, upon

20 learning that any such information is false or

21 misleading, fails to immediately advise the

22 Board or its agents thereof in writing,

23 shall be guilty of a misdemeanor.

24 (2) ADMINISTRATIVE DISCIPLINE.—In addition

25 to any other applicable penalty, any officer or em-
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1 ployee of the District government who knowingly

2 and willfully violates paragraph (1) shall be subject

3 to appropriate administrative discipline, including

4 (when appropriate) suspension from duty without

5 pay or removal from office by order of either the

6 Mayor or Authority.

7 (3) REPORT BY MAYOR ON DISCIPLINARY AC8 TIONS TAKEN.—In the case of a violation of para9 graph (1) by an officer or employee of the District

10 government, the Mayor shall immediately report to

11 the Board all pertinent facts together with a state12 ment of the action taken thereon.

13 SEC. 104. EXEMPTION FROM LIABILITY FOR CLAIMS.

14 The Authority and its members may not be liable for

15 any obligation of or claim against the District of Columbia

16 resulting from actions taken to carry out this Act.

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

18 (a) JURISDICTION ESTABLISHED IN DISTRICT

19 COURT FOR DISTRICT OF COLUMBIA.—Except as pro20 vided in section 103(e)(2) (relating to the issuance of an

21 order enforcing a subpoena), any action against the Au22 thority or any action otherwise arising out of this Act, in

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

24 District Court for the District of Columbia.

25 (b) PROMPT APPEAL.—
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1 (1) COURT OF APPEALS.—Notwithstanding any

2 other provision of law, any order of the United

3 States District Court for the District of Columbia

4 which is issued pursuant to an action brought under

5 subsection (a) shall be reviewable only pursuant to

6 a notice of appeal to the United States Court of Ap7 peals for the District of Columbia Circuit.

8 (2) SUPREME COURT.—Notwithstanding any

9 other provision of law, review by the Supreme Court

10 of the United States of a decision of the Court of

11 Appeals which is issued pursuant to paragraph (1)

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

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

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

15 granting declaratory or injunctive relief against the Au16 thority, including relief permitting or requiring the obliga17 tion, borrowing, or expenditure of funds, shall take effect

18 during the pendency of the action before such court, dur19 ing the time appeal may be taken, or (if appeal is taken)

20 during the period before the court has entered its final

21 order disposing of such action.

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

23 duty of the United States District Court for the District

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

25 District of Columbia Circuit, and the Supreme Court of
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1 the United States to advance on the docket and to expe2 dite to the greatest possible extent the disposition of any

3 matter brought under subsection (a).

4 SEC. 106. FUNDING FOR OPERATION OF AUTHORITY.

5 (a) ANNUAL BUDGETING PROCESS.—

6 (1) SUBMISSION OF BUDGET.—The Authority

7 shall submit a proposed budget for each fiscal year

8 to the President for inclusion in the annual budget

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

10 of the District of Columbia Self-Government and

11 Governmental Reorganization Act not later than the

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

13 the case of the budget for fiscal year 1996, the Au14 thority shall submit its proposed budget not later

15 than July 15, 1995.

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

17 describe—

18 (A) expenditures of the Authority by each

19 object class, including expenditures for staff of

20 the Authority;

21 (B) services of personnel and other services

22 provided by or on behalf of the Authority for

23 which the Authority made no reimbursement;

24 and
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1 (C) any gifts or bequests made to the au2 thority during the previous fiscal year.

3 (3) APPROPRIATIONS REQUIRED.—No amount

4 may be obligated or expended by the Authority for

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

6 such amount has been approved by Act of Congress,

7 and then only according to such Act.

8 (4) CONFORMING AMENDMENT.—Section

9 453(c) of the District of Columbia Self-Government

10 and Governmental Reorganization Act (sec. 47–

11 304.1(c), D.C. Code) is amended by striking the pe12 riod at the end and inserting the following: ‘‘, or to

13 the District of Columbia Financial Responsibility

14 and Management Assistance Authority established

15 under section 101(a) of the District of Columbia Fi16 nancial Responsibility and Management Assistance

17 Act of 1995.’’.

18 (b) SPECIAL RULE FOR FUNDING OF OPERATIONS

19 DURING FISCAL YEAR 1995.—As soon as practicable

20 after the appointment of its members, the Authority shall

21 submit to the Mayor and the President—

22 (1) a request for reprogramming of funds under

23 subsection (c)(1); and
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1 (2) a description of anticipated expenditures of

2 the Authority for fiscal year 1995 (which shall be

3 transmitted to Congress).

4 (c) SOURCES OF FUNDS.—

5 (1) USE OF PREVIOUSLY APPROPRIATED FUNDS

6 IN DISTRICT BUDGET.—The Mayor shall transfer

7 funds previously appropriated to the District govern8 ment for a fiscal year for auditing and consulting

9 services to the Authority (in such amounts as are

10 provided in the budget request of the Authority

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

12 1995, the request submitted under subsection

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

14 Authority’s activities during the fiscal year.

15 (2) OTHER SOURCES OF FUNDS.—For provi16 sions describing the sources of funds available for

17 the operations of the Authority during a fiscal year

18 (in addition to any interest earned on accounts of

19 the Authority during the year), see section

20 204(b)(1)(A) (relating to the set-aside of amounts

21 requisitioned from the Treasury by the Mayor) and

22 section 213(b)(3) (relating to the use of interest ac23 crued from amounts in a debt service reserve fund

24 of the Authority).
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1 SEC. 107. SUSPENSION OF ACTIVITIES.

2 (a) SUSPENSION UPON PAYMENT OF AUTHORITY

3 OBLIGATIONS.—

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

5 12-month period which begins on the date that the

6 Authority certifies that all obligations arising from

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

8 other obligations pursuant to subtitle B of title II

9 have been discharged, and that all borrowings by the

10 Authority pursuant to title VI of the District of Co11 lumbia Revenue Act of 1939 (sec. 47–3401, D.C.

12 Code) have been repaid, the Authority shall suspend

13 any activities carried out under this Act and the

14 terms of the members of the Authority shall expire.

15 (2) NO SUSPENSION DURING CONTROL YEAR.—

16 The Authority may not suspend its activities pursu17 ant to paragraph (1) at any time during a control

18 year.

19 (b) REACTIVATION UPON INITIATION OF CONTROL

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

21 Appropriations Committees of the House of Representa22 tives and the Senate that a control period has been initi23 ated (as described in section 209) at any time after the

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

25 President shall appoint members of the Authority, and the

26 Authority shall carry out activities under this Act, in the
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1 same manner as the President appointed members and the

2 Authority carried out activities prior to such suspension.

3 SEC. 108. APPLICATION OF LAWS OF DISTRICT OF COLUM4 BIA TO AUTHORITY.

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

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

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

8 the Authority:

9 (1) Section 742 of the District of Columbia

10 Self-Government and Governmental Reorganization

11 Act (sec. 1–1504, D.C. Code).

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

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

14 through 1–1526, D.C. Code).

15 (3) Section 601 of the District of Columbia

16 Campaign Finance Reform and Conflict of Interest

17 Act (sec. 1–1461, D.C. Code).

18 (b) NO CONTROL, SUPERVISION, OVERSIGHT, OR RE19 VIEW BY MAYOR OR COUNCIL.—

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

21 Council may exercise any control, supervision, over22 sight, or review over the Authority or its activities.

23 (2) PROHIBITION AGAINST LEGISLATION AF24 FECTING AUTHORITY.—Section 602(a) of the Dis25 trict of Columbia Self-Government and Govern-
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1 mental Reorganization Act (sec. 1–233(a), D.C.

2 Code) is amended—

3 (A) by striking ‘‘or’’ at the end of para4 graph (8);

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

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

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

8 paragraph:

9 ‘‘(10) enact any act, resolution, or rule with re10 spect to the District of Columbia Financial Respon11 sibility and Management Assistance Authority estab12 lished under section 101(a) of the District of Colum13 bia Financial Responsibility and Management As14 sistance Act of 1995.’’.

15 (c) AUTHORITY NOT SUBJECT TO REPRESENTATION

16 BY CORPORATION COUNSEL.—In any action brought by

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

18 against the Authority, the Authority shall be represented

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

20 the Authority be represented by the Corporation Counsel

21 of the District of Columbia.
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1 TITLE II—RESPONSIBILITIES OF

2 AUTHORITY

3 Subtitle A—Establishment and En4 forcement of Financial Plan and

5 Budget for District Government

6 SEC. 201. DEVELOPMENT OF FINANCIAL PLAN AND BUDG7 ET FOR DISTRICT OF COLUMBIA.

8 (a) DEVELOPMENT OF FINANCIAL PLAN AND BUDG9 ET.—For each fiscal year for which the District govern10 ment is in a control period, the Mayor shall develop and

11 submit to the Authority a financial plan and budget for

12 the District of Columbia in accordance with this section.

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

14 A financial plan and budget for the District of Columbia

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

16 government under part D of title IV of the District of Co17 lumbia Self-Government and Governmental Reorganiza18 tion Act for the applicable fiscal year and the next 3 fiscal

19 years (including the projected revenues and expenditures

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

21 in accordance with the following requirements:

22 (1) The financial plan and budget shall meet

23 the standards described in subsection (c) to promote

24 the financial stability of the District government.
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1 (2) The financial plan and budget shall provide

2 for estimates of revenues and expenditures on a

3 modified accrual basis.

4 (3) The financial plan and budget shall—

5 (A) describe lump sum expenditures by de6 partment by object class;

7 (B) describe capital expenditures (together

8 with a schedule of projected capital commit9 ments of the District government and proposed

10 sources of funding);

11 (C) contain estimates of short-term and

12 long-term debt (both outstanding and antici13 pated to be issued); and

14 (D) contain cash flow forecasts for each

15 fund of the District government at such inter16 vals as the Authority may require.

17 (4) The financial plan and budget shall include

18 a statement describing methods of estimations and

19 significant assumptions.

20 (5) The financial plan and budget shall include

21 any other provisions and shall meet such other cri22 teria as the Authority considers appropriate to meet

23 the purposes of this Act, including provisions for

24 changes in personnel policies and levels for each de25 partment or agency of the District government,
30

Title II, Subtitle A

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1 changes in the structure and organization of the

2 District government, and management initiatives to

3 promote productivity, improvement in the delivery of

4 services, or cost savings.

5 (c) STANDARDS TO PROMOTE FINANCIAL STABILITY

6 DESCRIBED.—

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

8 the financial stability of the District government ap9 plicable to the financial plan and budget for a fiscal

10 year are as follows:

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

12 budget for fiscal year 1996, the expenditures of

13 the District government for each fiscal year (be14 ginning with fiscal year 1999) may not exceed

15 the revenues of the District government for

16 each such fiscal year.

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

18 1998, the District government shall make con19 tinuous, substantial progress towards equalizing

20 the expenditures and revenues of the District

21 government for such fiscal years (in equal an22 nual installments to the greatest extent pos23 sible).

24 (C) The District government shall provide

25 for the orderly liquidation of the cumulative
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1 fund balance deficit of the District government,

2 as evidenced by financial statements prepared

3 in accordance with generally accepted account4 ing principles.

5 (D) If funds in accounts of the District

6 government which are dedicated for specific

7 purposes have been withdrawn from such ac8 counts for other purposes, the District govern9 ment shall fully restore the funds to such ac10 counts.

11 (E) The financial plan and budget shall as12 sure the continuing long-term financial stability

13 of the District government, as indicated by fac14 tors including access to short-term and long15 term capital markets, the efficient management

16 of the District government’s workforce, and the

17 effective provision of services by the District

18 government.

19 (2) APPLICATION OF SOUND BUDGETARY PRAC20 TICES.—In meeting the standards described in para21 graph (1) with respect to a financial plan and budg22 et for a fiscal year, the District government shall

23 apply sound budgetary practices, including reducing

24 costs and other expenditures, improving productivity,
32

Title II, Subtitle A

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1 increasing revenues, or combinations of such prac2 tices.

3 (3) ASSUMPTIONS BASED ON CURRENT LAW.—

4 In meeting the standards described in paragraph (1)

5 with respect to a financial plan and budget for a fis6 cal year, the District government shall base esti7 mates of revenues and expenditures on Federal law

8 as in effect at the time of the preparation of the fi9 nancial plan and budget.

10 (d) REPEAL OF OFFSETS AGAINST FEDERAL PAY11 MENT AND OTHER DISTRICT REVENUES.—Section 138 of

12 the District of Columbia Appropriations Act, 1995, is

13 amended—

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

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

16 subsections (c) and (d).

17 SEC. 202. PROCESS FOR SUBMISSION AND APPROVAL OF

18 FINANCIAL PLAN AND ANNUAL DISTRICT

19 BUDGET.

20 (a) SUBMISSION OF PRELIMINARY FINANCIAL PLAN

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

22 1 preceding a fiscal year for which the District govern23 ment is in a control period, the Mayor shall submit to the

24 Authority and the Council a financial plan and budget for
33

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1 the fiscal year which meets the requirements of section

2 201.

3 (b) REVIEW BY AUTHORITY.—Upon receipt of the fi4 nancial plan and budget for a fiscal year from the Mayor

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

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

7 the Authority may request any additional information it

8 considers necessary and appropriate to carry out its duties

9 under this subtitle.

10 (c) ACTION UPON APPROVAL OF MAYOR’S PRELIMI11 NARY FINANCIAL PLAN AND BUDGET.—

12 (1) CERTIFICATION TO MAYOR.—

13 (A) IN GENERAL.—If the Authority deter14 mines that the financial plan and budget for the

15 fiscal year submitted by the Mayor under sub16 section (a) meets the requirements applicable

17 under section 201—

18 (i) the Authority shall approve the fi19 nancial plan and budget and shall provide

20 the Mayor, the Council, the President, and

21 Congress with a notice certifying its ap22 proval; and

23 (ii) the Mayor shall promptly submit

24 the financial plan and budget to the Coun25 cil pursuant to section 442 of the District
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1 of Columbia Self-Government and Govern2 mental Reorganization Act.

3 (B) DEEMED APPROVAL AFTER 30

4 DAYS.—

5 (i) IN GENERAL.—If the Authority

6 has not provided the Mayor, the Council,

7 and Congress with a notice certifying ap8 proval under subparagraph (A)(i) or a

9 statement of disapproval under subsection

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

11 period which begins on the date the Au12 thority receives the financial plan and

13 budget from the Mayor under subsection

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

15 approved the financial plan and budget

16 and to have provided the Mayor, the Coun17 cil, the President, and Congress with the

18 notice certifying approval described in sub19 paragraph (A)(i).

20 (ii) EXPLANATION OF FAILURE TO

21 RESPOND.—If clause (i) applies with re22 spect to a financial plan and budget, the

23 Authority shall provide the Mayor, the

24 Council, the President, and Congress with

25 an explanation for its failure to provide the
35

Title II, Subtitle A

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1 notice certifying approval or the statement

2 of disapproval during the 30-day period de3 scribed in such clause.

4 (2) ADOPTION OF FINANCIAL PLAN AND BUDG5 ET BY COUNCIL AFTER RECEIPT OF APPROVED FI6 NANCIAL PLAN AND BUDGET.—Notwithstanding the

7 first sentence of section 446 of the District of Co8 lumbia Self-Government and Governmental Reorga9 nization Act, not later than 30 days after receiving

10 the financial plan and budget for the fiscal year

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

12 Council shall by Act adopt a financial plan and

13 budget for the fiscal year which shall serve as the

14 adoption of the budgets of the District government

15 for the fiscal year under such section, and shall sub16 mit such financial plan and budget to the Mayor and

17 the Authority.

18 (3) REVIEW OF COUNCIL FINANCIAL PLAN AND

19 BUDGET BY AUTHORITY.—Upon receipt of the finan20 cial plan and budget for a fiscal year from the Coun21 cil under paragraph (2) (taking into account any

22 items or provisions disapproved by the Mayor or dis23 approved by the Mayor and reenacted by the Council

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

25 Self-Government and Governmental Reorganization
36

Title II, Subtitle A

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

2 shall promptly review the financial plan and budget.

3 In conducting the review, the Authority may request

4 any additional information it considers necessary

5 and appropriate to carry out its duties under this

6 subtitle.

7 (4) RESULTS OF AUTHORITY REVIEW OF COUN8 CIL’S INITIAL FINANCIAL PLAN AND BUDGET.—

9 (A) APPROVAL OF COUNCIL’S INITIAL FI10 NANCIAL PLAN AND BUDGET.—If the Authority

11 determines that the financial plan and budget

12 for the fiscal year submitted by the Council

13 under paragraph (2) meets the requirements

14 applicable under section 201—

15 (i) the Authority shall approve the fi16 nancial plan and budget and shall provide

17 the Mayor, the Council, the President, and

18 Congress with a notice certifying its ap19 proval; and

20 (ii) the Council shall promptly submit

21 the financial plan and budget to the Mayor

22 for transmission to the President and Con23 gress under section 446 of the District of

24 Columbia Self-Government and Govern25 mental Reorganization Act.
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Title II, Subtitle A

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1 (B) DISAPPROVAL OF COUNCIL’S INITIAL

2 BUDGET.—If the Authority determines that the

3 financial plan and budget for the fiscal year

4 submitted by the Council under paragraph (2)

5 does not meet the requirements applicable

6 under section 201, the Authority shall dis7 approve the financial plan and budget, and

8 shall provide the Mayor, the Council, the Presi9 dent, and Congress with a statement contain10 ing—

11 (i) the reasons for such disapproval;

12 (ii) the amount of any shortfall in the

13 budget or financial plan; and

14 (iii) any recommendations for revi15 sions to the budget the Authority considers

16 appropriate to ensure that the budget is

17 consistent with the financial plan and

18 budget.

19 (C) DEEMED APPROVAL AFTER 15 DAYS.—

20 (i) IN GENERAL.—If the Authority

21 has not provided the Mayor, the Council,

22 the President, and Congress with a notice

23 certifying approval under subparagraph

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

25 subparagraph (B) upon the expiration of
38

Title II, Subtitle A

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1 the 15-day period which begins on the date

2 the Authority receives the financial plan

3 and budget from the Council under para4 graph (2), the Authority shall be deemed

5 to have approved the financial plan and

6 budget and to have provided the Mayor,

7 the Council, the President, and Congress

8 with the notice certifying approval de9 scribed in subparagraph (A)(i).

10 (ii) EXPLANATION OF FAILURE TO

11 RESPOND.—If clause (i) applies with re12 spect to a financial plan and budget, the

13 Authority shall provide the Mayor, the

14 Council, the President, and Congress with

15 an explanation for its failure to provide the

16 notice certifying approval or the statement

17 of disapproval during the 15-day period de18 scribed in such clause.

19 (5) AUTHORITY REVIEW OF COUNCIL’S REVISED

20 FINANCIAL PLAN AND BUDGET.—

21 (A) SUBMISSION OF COUNCIL’S REVISED

22 FINANCIAL PLAN AND BUDGET.—Not later than

23 15 days after receiving the statement from the

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

25 shall promptly by Act adopt a revised financial
39

Title II, Subtitle A

•HR 1345 RH

1 plan and budget for the fiscal year which ad2 dresses the reasons for the Authority’s dis3 approval cited in the statement, and shall sub4 mit such financial plan and budget to the

5 Mayor and the Authority.

6 (B) APPROVAL OF COUNCIL’S REVISED FI7 NANCIAL PLAN AND BUDGET.—If, after review8 ing the revised financial plan and budget for a

9 fiscal year submitted by the Council under sub10 paragraph (A) in accordance with the proce11 dures described in this subsection, the Author12 ity determines that the revised financial plan

13 and budget meets the requirements applicable

14 under section 201—

15 (i) the Authority shall approve the fi16 nancial plan and budget and shall provide

17 the Mayor, the Council, the President, and

18 Congress with a notice certifying its ap19 proval; and

20 (ii) the Council shall promptly submit

21 the financial plan and budget to the Mayor

22 for transmission to the President and Con23 gress under section 446 of the District of

24 Columbia Self-Government and Govern25 mental Reorganization Act.
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Title II, Subtitle A

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1 (C) DISAPPROVAL OF COUNCIL’S REVISED

2 FINANCIAL PLAN AND BUDGET.—

3 (i) IN GENERAL.—If, after reviewing

4 the revised financial plan and budget for a

5 fiscal year submitted by the Council under

6 subparagraph (A) in accordance with the

7 procedures described in this subsection, the

8 Authority determines that the revised fi9 nancial plan and budget does not meet the

10 applicable requirements under section 201,

11 the Authority shall—

12 (I) disapprove the financial plan

13 and budget;

14 (II) provide the Mayor, the

15 Council, the President, and Congress

16 with a statement containing the rea17 sons for such disapproval and describ18 ing the amount of any shortfall in the

19 financial plan and budget; and

20 (III) approve and recommend a

21 financial plan and budget for the Dis22 trict government which meets the ap23 plicable requirements under section

24 201, and submit such financial plan
41

Title II, Subtitle A

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1 and budget to the Mayor, the Council,

2 the President, and Congress.

3 (ii) TRANSMISSION OF REJECTED FI4 NANCIAL PLAN AND BUDGET.—The Coun5 cil shall promptly submit the revised finan6 cial plan and budget disapproved by the

7 Authority under this subparagraph to the

8 Mayor for transmission to the President

9 and Congress under section 446 of the

10 District of Columbia Self-Government and

11 Governmental Reorganization Act.

12 (D) DEEMED APPROVAL AFTER 15 DAYS.—

13 (i) IN GENERAL.—If the Authority

14 has not provided the Mayor, the Council,

15 the President, and Congress with a notice

16 certifying approval under subparagraph

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

18 subparagraph (C) upon the expiration of

19 the 15-day period which begins on the date

20 the Authority receives the revised financial

21 plan and budget submitted by the Council

22 under subparagraph (A), the Authority

23 shall be deemed to have approved the re24 vised financial plan and budget and to

25 have provided the Mayor, the Council, the
42

Title II, Subtitle A

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1 President, and Congress with the notice

2 certifying approval described in subpara3 graph (B)(i).

4 (ii) EXPLANATION OF FAILURE TO

5 RESPOND.—If clause (i) applies with re6 spect to a financial plan and budget, the

7 Authority shall provide the Mayor, the

8 Council, the President and Congress with

9 an explanation for its failure to provide the

10 notice certifying approval or the statement

11 of disapproval during the 15-day period de12 scribed in such clause.

13 (6) DEADLINE FOR TRANSMISSION OF FINAN14 CIAL PLAN AND BUDGET BY AUTHORITY.—Notwith15 standing any other provision of this section, not

16 later than the June 15 preceding each fiscal year

17 which is a control year, the Authority shall—

18 (A) provide Congress with a notice certify19 ing its approval of the Council’s initial financial

20 plan and budget for the fiscal year under para21 graph (4)(A);

22 (B) provide Congress with a notice certify23 ing its approval of the Council’s revised finan24 cial plan and budget for the fiscal year under

25 paragraph (5)(B); or
43

Title II, Subtitle A

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1 (C) submit to Congress an approved and

2 recommended financial plan and budget of the

3 Authority for the District government for the

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

5 (d) ACTION UPON DISAPPROVAL OF MAYOR’S PRE6 LIMINARY FINANCIAL PLAN AND BUDGET.—

7 (1) STATEMENT OF DISAPPROVAL.—If the Au8 thority determines that the financial plan and budg9 et for the fiscal year submitted by the Mayor under

10 subsection (a) does not meet the requirements appli11 cable under section 201, the Authority shall dis12 approve the financial plan and budget, and shall

13 provide the Mayor and the Council with a statement

14 containing—

15 (A) the reasons for such disapproval;

16 (B) the amount of any shortfall in the fi17 nancial plan and budget; and

18 (C) any recommendations for revisions to

19 the financial plan and budget the Authority

20 considers appropriate to ensure that the finan21 cial plan and budget meets the requirements

22 applicable under section 201.

23 (2) AUTHORITY REVIEW OF MAYOR’S REVISED

24 FINANCIAL PLAN AND BUDGET.—
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Title II, Subtitle A

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1 (A) SUBMISSION OF MAYOR’S REVISED FI2 NANCIAL PLAN AND BUDGET.—Not later than

3 15 days after receiving the statement from the

4 Authority under paragraph (1), the Mayor shall

5 promptly submit to the Authority and the

6 Council a revised financial plan and budget for

7 the fiscal year which addresses the reasons for

8 the Authority’s disapproval cited in the state9 ment.

10 (B) APPROVAL OF MAYOR’S REVISED FI11 NANCIAL PLAN AND BUDGET.—If the Authority

12 determines that the revised financial plan and

13 budget for the fiscal year submitted by the

14 Mayor under subparagraph (A) meets the re15 quirements applicable under section 201—

16 (i) the Authority shall approve the fi17 nancial plan and budget and shall provide

18 the Mayor, the Council, the President, and

19 Congress with a notice certifying its ap20 proval; and

21 (ii) the Mayor shall promptly submit

22 the financial plan and budget to the Coun23 cil pursuant to section 442 of the District

24 of Columbia Self-Government and Govern25 mental Reorganization Act.
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Title II, Subtitle A

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1 (C) DISAPPROVAL OF MAYOR’S REVISED

2 FINANCIAL PLAN AND BUDGET.—

3 (i) IN GENERAL.—If the Authority de4 termines that the revised financial plan

5 and budget for the fiscal year submitted by

6 the Mayor under subparagraph (A) does

7 not meet the requirements applicable under

8 section 201, the Authority shall—

9 (I) disapprove the financial plan

10 and budget;

11 (II) shall provide the Mayor, the

12 Council, the President, and Congress

13 with a statement containing the rea14 sons for such disapproval; and

15 (III) recommend a financial plan

16 and budget for the District govern17 ment which meets the requirements

18 applicable under section 201 and sub19 mit such financial plan and budget to

20 the Mayor and the Council.

21 (ii) SUBMISSION OF REJECTED FINAN22 CIAL PLAN AND BUDGET.—The Mayor

23 shall promptly submit the revised financial

24 plan and budget disapproved by the Au25 thority under this subparagraph to the
46

Title II, Subtitle A

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1 Council pursuant to section 442 of the

2 District of Columbia Self-Government and

3 Governmental Reorganization Act.

4 (D) DEEMED APPROVAL AFTER 15 DAYS.—

5 (i) IN GENERAL.—If the Authority

6 has not provided the Mayor, the Council,

7 the President, and Congress with a notice

8 certifying approval under subparagraph

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

10 subparagraph (C) upon the expiration of

11 the 15-day period which begins on the date

12 the Authority receives the revised financial

13 plan and budget submitted by the Mayor

14 under subparagraph (A), the Authority

15 shall be deemed to have approved the re16 vised financial plan and budget and to

17 have provided the Mayor, the Council, the

18 President, and Congress with the notice

19 certifying approval described in subpara20 graph (B)(i).

21 (ii) EXPLANATION OF FAILURE TO

22 RESPOND.—If clause (i) applies with re23 spect to a financial plan and budget, the

24 Authority shall provide the Mayor, the

25 Council, the President and Congress with
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Title II, Subtitle A

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1 an explanation for its failure to provide the

2 notice certifying approval or the statement

3 of disapproval during the 15-day period de4 scribed in such clause.

5 (3) ACTION BY COUNCIL.—

6 (A) ADOPTION OF FINANCIAL PLAN AND

7 BUDGET.—Notwithstanding the first sentence

8 of section 446 of the District of Columbia Self9 Government and Governmental Reorganization

10 Act, not later than 30 days after receiving the

11 Mayor’s approved revised financial plan and

12 budget for the fiscal year under paragraph

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

14 budget disapproved by the Authority) the finan15 cial plan and budget recommended by the Au16 thority under paragraph (2)(C)(i)(III), the

17 Council shall by Act adopt a financial plan and

18 budget for the fiscal year which shall serve as

19 the adoption of the budgets of the District gov20 ernment for the fiscal year under such section,

21 and shall submit the financial plan and budget

22 to the Mayor and the Authority.

23 (B) REVIEW BY AUTHORITY.—The finan24 cial plan and budget submitted by the Council

25 under subparagraph (A) shall be subject to re-
48

Title II, Subtitle A

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1 view by the Authority and revision by the Coun2 cil in the same manner as the financial plan

3 and budget submitted by the Council after an

4 approved preliminary financial plan and budget

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

6 and (6) of subsection (c).

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

8 (1) PERMITTING MAYOR TO SUBMIT REVI9 SIONS.—The Mayor may submit proposed revisions

10 to the financial plan and budget for a control year

11 to the Authority at any time during the year.

12 (2) PROCESS FOR REVIEW, APPROVAL, DIS13 APPROVAL, AND COUNCIL ACTION.—Except as pro14 vided in paragraph (3), the procedures described in

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

16 to a proposed revision to a financial plan and budget

17 in the same manner as such procedures apply with

18 respect to the original financial plan and budget, ex19 cept that subparagraph (B) of subsection (c)(1) (re20 lating to deemed approval by the Authority of an

21 preliminary financial plan and budget of the Mayor)

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

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

24 (3) EXCEPTION FOR REVISIONS NOT AFFECT25 ING APPROPRIATIONS.—To the extent that a pro-
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Title II, Subtitle A

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1 posed revision to a financial plan and budget adopt2 ed by the Council pursuant to this subsection does

3 not increase the amount of spending with respect to

4 any account of the District government, the revision

5 shall become effective upon the Authority’s approval

6 of such revision (subject to review by Congress

7 under section 602 of the District of Columbia Self8 Government and Governmental Reorganization Act).

9 (f) CONFORMING AMENDMENT TO BUDGET PROCESS

10 REQUIREMENTS UNDER HOME RULE ACT.—

11 (1) SUBMISSION OF UNBALANCED BUDGETS.—

12 Section 603 of the District of Columbia Self-Govern13 ment and Governmental Reorganization Act (sec.

14 47–313, D.C. Code) is amended—

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

16 Council’’ the first place it appears and inserting

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

18 Council’’;

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

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

21 subsection (f), the Mayor’’; and

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

23 subsection:

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

25 year (as defined in section 305(4) of the District of Co-
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Title II, Subtitle A

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1 lumbia Financial Responsibility and Management Assist2 ance Act of 1995)—

3 ‘‘(1) subsection (c) (other than the fourth sen4 tence) and subsection (d) shall not apply; and

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

6 Mayor may not forward to the President, any budget

7 which is not consistent with the financial plan and

8 budget established for the fiscal year under subtitle

9 A of title II of such Act.’’.

10 (2) EXPEDITED PROCEDURES FOR DIS11 APPROVAL OF ITEMS AND PROVISIONS OF COUNCIL

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

13 of Columbia Self-Government and Governmental Re14 organization Act (sec. 1–227(f), D.C. Code) is

15 amended by adding at the end the following new

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

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

18 305(4) of the District of Columbia Financial Re19 sponsibility and Management Assistance Act of

20 1995), this subsection shall apply as if the reference

21 in the second sentence to ‘ten-day period’ were a ref22 erence to ‘five-day period’ and the reference in the

23 third sentence to ‘thirty calendar days’ were a ref24 erence to ‘5 calendar days’.’’.
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Title II, Subtitle A

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1 (g) PERMITTING MAYOR AND COUNCIL TO SPECIFY

2 EXPENDITURES UNDER SCHOOL BOARD BUDGET DUR3 ING CONTROL YEAR.—

4 (1) MAYOR’S ESTIMATE INCLUDED IN ANNUAL

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

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

7 of teachers, school officers, and other employees of

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

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

10 is amended by striking the period at the end and in11 serting the following: ‘‘, except that in the case of

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

13 305(4) of the District of Columbia Financial Re14 sponsibility and Management Assistance Act of

15 1995), the Mayor shall transmit the same together

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

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

18 (2) SPECIFICATION OF EXPENDITURES.—Sec19 tion 452 of the District of Columbia Self-Govern20 ment and Governmental Reorganization Act (sec.

21 31–104, D.C. Code) is amended by adding at the

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

23 not apply with respect to the annual budget for any

24 fiscal year which is a control year (as defined in sec25 tion 305(4) of the District of Columbia Financial
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1 Responsibility and Management Assistance Act of

2 1995).’’.

3 (h) PERMITTING SEPARATION OF EMPLOYEES IN AC4 CORDANCE WITH FINANCIAL PLAN AND BUDGET.—The

5 fourth sentence of section 422(3) of the District of Colum6 bia Self-Government and Governmental Reorganization

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

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

9 ‘‘Act of 1991’’ and inserting the following: ‘‘in the imple10 mentation of a financial plan and budget for the District

11 government approved under subtitle A of title II of the

12 District of Columbia Financial Responsibility and Man13 agement Assistance Act of 1995’’.

14 SEC. 203. REVIEW OF ACTIVITIES OF DISTRICT GOVERN15 MENT TO ENSURE COMPLIANCE WITH AP16 PROVED FINANCIAL PLAN AND BUDGET.

17 (a) REVIEW OF COUNCIL ACTS.—

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

19 Council shall submit each Act passed by the Council

20 and signed by the Mayor during a control year or

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

22 the Council present and voting during a control

23 year, and each Act passed by the Council and al24 lowed to become effective without the Mayor’s signa25 ture during a control year, together with the esti-
53

Title II, Subtitle A

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1 mate of costs accompanying such Act required under

2 section 602(c)(3) of the District of Columbia Self3 Government and Governmental Reorganization Act

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

5 (2) PROMPT REVIEW BY AUTHORITY.—Upon re6 ceipt of an Act from the Council under paragraph

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

8 determine whether it is consistent with the applica9 ble financial plan and budget approved under this

10 subtitle and with the estimate of costs accompanying

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

12 (3) ACTIONS BY AUTHORITY.—

13 (A) APPROVAL.—Except as provided in

14 subparagraph (C), if the Authority determines

15 that an Act is consistent with the applicable fi16 nancial plan and budget, the Authority shall no17 tify the Council that it approves the Act, and

18 the Council shall submit the Act to Congress

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

20 of the District of Columbia Self-Government

21 and Governmental Reorganization Act.

22 (B) FINDING OF INCONSISTENCY.—Except

23 as provided in subparagraph (C), if the Author24 ity determines that an Act is significantly in-
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1 consistent with the applicable financial plan and

2 budget, the Authority shall—

3 (i) notify the Council that of its find4 ing;

5 (ii) provide the Council with an expla6 nation of the reasons for its finding; and

7 (iii) to the extent the Authority con8 siders appropriate, provide the Council

9 with recommendations for modifications to

10 the Act.

11 (C) EXCEPTION FOR EMERGENCY ACTS.—

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

13 with respect to any act which the Council deter14 mines according to section 412(a) of the Dis15 trict of Columbia Self-Government and Govern16 mental Reorganization Act should take effect

17 immediately because of emergency cir18 cumstances.

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

20 makes a finding with respect to an Act under para21 graph (3)(B), the Council may not submit the Act

22 to Congress for review in accordance with section

23 602(c)(1) of the District of Columbia Self-Govern24 ment and Governmental Reorganization Act.
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1 (5) DEEMED APPROVAL.—If the Authority does

2 not notify the Council that it approves or dis3 approves an Act submitted under this subsection

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

5 Council submits the Act to the Authority, the Au6 thority shall be deemed to have approved the Act in

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

8 the Authority, the previous sentence shall be applied

9 as if the reference to ‘‘7-day period’’ were a ref10 erence to ‘‘14-day period’’ if during such 7-day pe11 riod the Authority so notifies the Council and the

12 Mayor.

13 (6) PRELIMINARY REVIEW OF PROPOSED

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

15 may conduct a preliminary review of proposed legis16 lation before the Council to determine whether the

17 legislation as proposed would be consistent with the

18 applicable financial plan and budget approved under

19 this subtitle, except that any such preliminary review

20 shall not be binding on the Authority in reviewing

21 any Act subsequently submitted under this sub22 section.

23 (b) EFFECT OF APPROVED FINANCIAL PLAN AND

24 BUDGET ON CONTRACTS AND LEASES.—
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1 (1) MANDATORY PRIOR APPROVAL FOR CER2 TAIN CONTRACTS AND LEASES.—

3 (A) IN GENERAL.—In the case of a con4 tract or lease described in subparagraph (B)

5 which is proposed to be entered into by the Dis6 trict government during a control year, the

7 Mayor (or the appropriate officer or agent of

8 the District government) shall submit the pro9 posed contract or lease to the Authority for re10 view under paragraph (1) (and the Authority

11 shall review the contract or lease pursuant to

12 paragraph (2)), and may not enter into the con13 tract or lease unless the Authority determines

14 that the proposed contract or lease is consistent

15 with the financial plan and budget for the fiscal

16 year.

17 (B) CONTRACTS AND LEASES DE18 SCRIBED.—A contract or lease described in this

19 subparagraph is—

20 (i) a labor contract entered into

21 through collective bargaining; or

22 (ii) such other type of contract or

23 lease as the Authority may specify for pur24 poses of this subparagraph.
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1 (2) AUTHORITY TO REVIEW OTHER CONTRACTS

2 AND LEASES AFTER EXECUTION.—

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

4 approval of certain contracts and leases under

5 paragraph (1), the Authority may require the

6 Mayor (or the appropriate officer or agent of

7 the District government) to submit to the Au8 thority any other contract (including a contract

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

10 the District government during a control year

11 which is executed after the Authority has ap12 proved the financial plan and budget for the

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

14 of the District government to renew, extend, or

15 modify a contract or lease during a control year

16 which is made after the Authority has approved

17 such financial plan and budget.

18 (B) REVIEW BY AUTHORITY.—The Author19 ity shall review each contract or lease submitted

20 under subparagraph (A) to determine if the

21 contract or lease is consistent with the financial

22 plan and budget for the fiscal year. If the Au23 thority determines that the contract or lease is

24 not consistent with the financial plan and budg25 et, the Mayor shall take such actions as are
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Title II, Subtitle A

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1 within the Mayor’s powers to revise the contract

2 or lease, or shall submit a proposed revision to

3 the financial plan and budget in accordance

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

5 lease will be consistent with the financial plan

6 and budget.

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

8 The Authority may require the Mayor to submit to

9 the Authority any proposal to renew, extend, or

10 modify a contract or lease in effect during fiscal

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

12 modification is consistent with the budget for the

13 District of Columbia under the District of Columbia

14 Appropriations Act, 1995.

15 (4) SPECIAL RULE FOR CONTRACTS SUBJECT

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

17 which is required to be submitted to the Authority

18 under this subsection and which is subject to ap19 proval by the Council under the laws of the District

20 of Columbia, the Mayor shall submit such contract

21 to the Authority only after the Council has approved

22 the contract.

23 (c) RESTRICTIONS ON REPROGRAMMING OF

24 AMOUNTS IN BUDGET DURING CONTROL YEARS.—
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1 (1) SUBMISSIONS OF REQUESTS TO AUTHOR2 ITY.—If the Mayor submits a request to the Council

3 for the reprogramming of any amounts provided in

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

5 after the budget is adopted by the Council, the

6 Mayor shall submit such request to the Authority,

7 which shall analyze the affect of the proposed

8 reprogramming on the financial plan and budget for

9 the fiscal year and submit its analysis to the Council

10 not later than 15 days after receiving the request.

11 (2) NO ACTION PERMITTED UNTIL ANALYSIS

12 RECEIVED.—The Council may not adopt a

13 reprogramming during a fiscal year which is a con14 trol year, and no officer or employee of the District

15 government may carry out any reprogramming dur16 ing such a year, until the Authority has provided the

17 Council with an analysis of a request for the

18 reprogramming in accordance with paragraph (1).

19 SEC. 204. RESTRICTIONS ON BORROWING BY DISTRICT

20 DURING CONTROL YEAR.

21 (a) PRIOR APPROVAL REQUIRED.—

22 (1) IN GENERAL.—The District government

23 may not borrow money during a control year unless

24 the Authority provides prior certification that both

25 the receipt of funds through such borrowing and the
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Title II, Subtitle A

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1 repayment of obligations incurred through such bor2 rowing are consistent with the financial plan and

3 budget for the year.

4 (2) REVISIONS TO FINANCIAL PLAN AND BUDG5 ET PERMITTED.—If the Authority determines that

6 the borrowing proposed to be undertaken by the Dis7 trict government is not consistent with the financial

8 plan and budget, the Mayor may submit to the Au9 thority a proposed revision to the financial plan and

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

11 borrowing will be consistent with the financial plan

12 and budget as so revised.

13 (3) BORROWING DESCRIBED.—This subsection

14 shall apply with respect to any borrowing under15 taken by the District government, including borrow16 ing through the issuance of bonds under part E of

17 title IV of the District of Columbia Self-Government

18 and Governmental Reorganization Act, the exercise

19 of authority to obtain funds from the United States

20 Treasury under title VI of the District of Columbia

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

22 any other means.

23 (4) SPECIAL RULES FOR TREASURY BORROWING

24 DURING FISCAL YEAR 1995.—
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1 (A) NO PRIOR APPROVAL REQUIRED DUR2 ING INITIAL PERIOD FOLLOWING APPOINT3 MENT.—The District government may requisi4 tion advances from the United States Treasury

5 under title VI of the District of Columbia Reve6 nue Act of 1939 (sec. 47–3401, D.C. Code)

7 without the prior approval of the Authority dur8 ing the 45-day period which begins on the date

9 of the appointment of the members of the Au10 thority (subject to the restrictions described in

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

12 (B) CRITERIA FOR APPROVAL DURING RE13 MAINDER OF FISCAL YEAR.—The District gov14 ernment may requisition advances described in

15 subparagraph (A) during the portion of fiscal

16 year 1995 occurring after the expiration of the

17 45-day period described in such subparagraph if

18 the Authority finds that—

19 (i) both the receipt of funds through

20 such borrowing and the repayment of obli21 gations incurred through such borrowing

22 are appropriate steps to meet the needs of

23 the District government to reduce deficits

24 and discharge payment obligations; and
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Title II, Subtitle A

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1 (ii) the District government is making

2 appropriate progress toward meeting its

3 responsibilities under this Act (and the

4 amendments made by this Act).

5 (b) DEPOSIT OF FUNDS OBTAINED THROUGH

6 TREASURY WITH AUTHORITY.—

7 (1) AUTOMATIC DEPOSIT DURING CONTROL

8 YEAR.—If the Mayor requisitions funds from the

9 Secretary of the Treasury pursuant to title VI of the

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

11 3401, D.C. Code) during a control year (beginning

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

13 by the Secretary into an escrow account held by the

14 Authority, to be used as follows:

15 (A) The Authority shall expend a portion

16 of the funds for its operations during the fiscal

17 year in which the funds are requisitioned, in

18 such amount and under such conditions as are

19 established under the budget of the Authority

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

21 (B) The Authority shall allocate the re22 mainder of such funds to the Mayor at such in23 tervals and in accordance with such terms and

24 conditions as it considers appropriate, consist25 ent with the financial plan and budget for the
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Title II, Subtitle A

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1 year and with any other withholding of funds

2 by the Authority pursuant to this Act.

3 (2) OPTIONAL DEPOSIT DURING FISCAL YEAR

4 1995.—

5 (A) DURING INITIAL PERIOD FOLLOWING

6 APPOINTMENT.—If the Mayor requisitions

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

8 day period which begins on the date of the ap9 pointment of the members of the Authority, the

10 Secretary of the Treasury shall notify the Au11 thority, and at the request of the Authority

12 shall deposit such funds into an escrow account

13 held by the Authority in accordance with para14 graph (1).

15 (B) DURING REMAINDER OF FISCAL

16 YEAR.—If the Mayor requisitions funds de17 scribed in paragraph (1) during the portion of

18 fiscal year 1995 occurring after the expiration

19 of the 45-day period described in subparagraph

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

21 such funds into an escrow account held by the

22 Authority in accordance with paragraph (1) at

23 the request of the Authority.

24 (c) CONDITIONS ON REQUISITIONS FROM TREAS25 URY.—Title VI of the District of Columbia Revenue Act
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1 of 1939 (sec. 47–3401, D.C. Code) is amended by striking

2 all after the heading and inserting the following:

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

4 ADVANCES.

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

6 BEFORE OCTOBER 1, 1995.—

7 ‘‘(1) IN GENERAL.—If the conditions in para8 graph (2) are satisfied, the Secretary shall make an

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

10 money in the Treasury not otherwise appropriated,

11 for the purpose of assisting the District government

12 in meeting its general expenditures, as authorized by

13 Congress.

14 ‘‘(2) CONDITIONS TO MAKING ANY TRANSI15 TIONAL SHORT-TERM ADVANCE BEFORE OCTOBER 1,

16 1995.—The Secretary shall make an advance under

17 this subsection if the following conditions are satis18 fied:

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

20 requisition for an advance under this section;

21 ‘‘(B) as of the date on which the

22 requisitioned advance is to be made, the Au23 thority has not approved a financial plan and

24 budget for the District government as meeting

25 the requirements of the District of Columbia
65

Title II, Subtitle A

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1 Financial Responsibility and Management As2 sistance Act of 1995;

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

4 advance is to be made is not later than Septem5 ber 30, 1995;

6 ‘‘(D) the District government has delivered

7 to the Secretary—

8 ‘‘(i) a schedule setting forth the an9 ticipated timing and amounts of req10 uisitions for advances under this sub11 section; and

12 ‘‘(ii) evidence demonstrating to the

13 satisfaction of the Secretary that the Dis14 trict government is effectively unable to ob15 tain credit in the public credit markets or

16 elsewhere in sufficient amounts and on suf17 ficiently reasonable terms to meet the Dis18 trict government’s financing needs;

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

20 reasonable assurance of reimbursement for the

21 advance from the amount authorized to be ap22 propriated as the annual Federal payment to

23 the District of Columbia under title V of the

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

2 year ending September 30, 1996; and

3 ‘‘(F) except during the 45-day period be4 ginning on the date of the appointment of the

5 members of the Authority, the Authority makes

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

7 of the District of Columbia Financial Respon8 sibility and Management Assistance Act of

9 1995.

10 ‘‘(3) AMOUNT OF ANY TRANSITIONAL SHORT11 TERM ADVANCE MADE BEFORE OCTOBER 1, 1995.—

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

13 subparagraph (C), if the conditions described in

14 subparagraph (B) are satisfied, each advance

15 made under this subsection shall be in the

16 amount designated by the Mayor in the Mayor’s

17 requisition for such advance (subject to the ap18 proval of the Authority), except that—

19 ‘‘(i) the total amount requisitioned

20 under this subsection during the 30-day

21 period which begins on the date of the first

22 requisition made under this subsection may

not exceed 331 23 ⁄3 percent of the fiscal year

24 1995 limit;
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Title II, Subtitle A

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1 ‘‘(ii) the total amount requisitioned

2 under this subsection during the 60-day

3 period which begins on the date of the first

4 requisition made under this subsection may

not exceed 662 5 ⁄3 percent of the fiscal year

6 1995 limit; and

7 ‘‘(iii) the total amount requisitioned

8 under this subsection after the expiration

9 of 90-day period which begins on the date

10 of the first requisition made under this

11 subsection may not exceed 100 percent of

12 the fiscal year 1995 limit.

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

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

19 ‘‘(C) AGGREGATE MAXIMUM AMOUNT OUT20 STANDING.—The sum of the anticipated prin21 cipal and interest requirements of all advances

22 made under this subsection may not be greater

23 than the fiscal year 1995 limit.

24 ‘‘(D) FISCAL YEAR 1995 LIMIT DE25 SCRIBED.—In this paragraph, the ‘fiscal year
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1 1995 limit’ means the amount authorized to be

2 appropriated to the District of Columbia as the

3 annual Federal payment to the District of Co4 lumbia under title V of the District of Columbia

5 Self-Government and Governmental Reorga6 nization Act for the fiscal year ending Septem7 ber 30, 1995.

8 ‘‘(4) MATURITY OF ANY TRANSITIONAL SHORT9 TERM ADVANCE MADE BEFORE OCTOBER 1, 1995.—

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

11 subparagraph (B), each advance made under

12 this subsection shall mature on the date des13 ignated by the Mayor in the Mayor’s requisition

14 for such advance.

15 ‘‘(B) LATEST PERMISSIBLE MATURITY

16 DATE.—Notwithstanding subparagraph (A), the

17 maturity date for any advance made under this

18 subsection shall not be later than October 1,

19 1995.

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

21 under this subsection shall bear interest at an an22 nual rate equal to the rate determined by the Sec23 retary at the time that the Secretary makes such ad24 vance taking into consideration the prevailing yield

25 on outstanding marketable obligations of the United
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Title II, Subtitle A

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1 States with remaining periods to maturity comparable to the maturity of such advance, plus 1 2 ⁄8 of

3 1 percent.

4 ‘‘(6) DEPOSIT OF ADVANCES.—

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

6 subparagraph (B), each advance made under

7 this subsection for the account of the District

8 government shall be deposited by the Secretary

9 into such account as is designated by the Mayor

10 in the Mayor’s requisition for such advance.

11 ‘‘(B) EXCEPTION.—Notwithstanding sub12 paragraph (A), if (in accordance with section

13 204(b)(2) of the District of Columbia Financial

14 Responsibility and Management Assistance Act

15 of 1995) the Authority delivers a letter request16 ing the Secretary to deposit all advances made

17 under this subsection for the account of the

18 District government in an escrow account held

19 by the Authority, each advance made under this

20 subsection for the account of the District gov21 ernment after the date of such letter shall be

22 deposited by the Secretary into the escrow ac23 count specified by the Authority in such letter.
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Title II, Subtitle A

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

2 ON OR AFTER OCTOBER 1, 1995 AND BEFORE FEBRUARY

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), paragraphs (2), (4), and (5)

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

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

15 made under this subsection.

16 ‘‘(B) EXCEPTIONS.—

17 ‘‘(i) NEW CONDITIONS PRECEDENT TO

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

20 with respect to making advances on or

21 after October 1, 1995, in the same manner

22 as such conditions apply with respect to

23 making advances before October 1, 1995,

24 except that—
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Title II, Subtitle A

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1 ‘‘(I) subparagraph (C) (relating

2 to the last day on which advances may

3 be made) shall be applied as if the

4 reference to ‘October 1, 1995’ were a

5 reference to ‘February 1, 1996’;

6 ‘‘(II) subparagraph (E) (relating

7 to the Secretary’s determination of

8 reasonable assurance of reimburse9 ment from the annual Federal pay10 ment appropriated to the District gov11 ernment) shall be applied as if the ref12 erence to ‘September 30, 1996’ were a

13 reference to ‘September 30, 1997’;

14 ‘‘(III) the Secretary may not

15 make an advance under this sub16 section unless all advances made

17 under subsection (a) are fully reim18 bursed by withholding from the an19 nual Federal payment appropriated to

20 the District for the fiscal year ending

21 September 30, 1996, under title V of

22 the District of Columbia Self-Govern23 ment and Governmental Reorganiza24 tion Act, and applying toward reim25 bursement for such advances an
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Title II, Subtitle A

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1 amount equal to the amount needed

2 to fully reimburse the Treasury for

3 such advances; and

4 ‘‘(IV) the Secretary may not

5 make an advance under this sub6 section unless the Authority has pro7 vided the Secretary with the prior cer8 tification described in section

9 204(a)(1) of the District of Columbia

10 Financial Responsibility and Manage11 ment Assistance Act of 1995.

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

15 the maturity of advances made after Octo16 ber 1, 1995, in the same manner as such

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

19 1995, except that subparagraph (B) of

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

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

23 reference to ‘October 1, 1996’.

24 ‘‘(iii) AGGREGATE MAXIMUM AMOUNT

25 OUTSTANDING.—The sum of the antici-
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1 pated principal and interest requirements

2 of all advances made under this subsection

3 may not be greater than the fiscal year

4 1996 limit.

5 ‘‘(C) NEW MAXIMUM AMOUNT OUTSTAND6 ING.—

7 ‘‘(i) IN GENERAL.—Except as pro8 vided in clause (iii), if the conditions de9 scribed in clause (ii) are satisfied, each ad10 vance made under this subsection shall be

11 in the amount designated by the Mayor in

12 the Mayor’s requisition for such advance

13 (subject to the approval of the Authority).

14 ‘‘(ii) CONDITIONS APPLICABLE TO

15 DESIGNATED AMOUNT.—Clause (i) applies

16 if the Mayor determines that the amount

17 designated in the Mayor’s requisition for

18 such advance is needed to accomplish the

19 purpose described in paragraph (1).

20 ‘‘(iii) AGGREGATE MAXIMUM AMOUNT

21 OUTSTANDING.—The sum of the antici22 pated principal and interest requirements

23 of all advances made under this paragraph

24 may not be greater than 60 percent of the

25 fiscal year 1996 limit.
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Title II, Subtitle A

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1 ‘‘(D) DEPOSIT OF ADVANCES.—As pro2 vided in section 204(b) of the District of Co3 lumbia Financial Responsibility and Manage4 ment Assistance Act of 1995, each advance

5 made under this subsection for the account of

6 the District shall be deposited by the Secretary

7 into an escrow account held by the Authority.

8 ‘‘(E) FISCAL YEAR 1996 LIMIT DE9 SCRIBED.—In this paragraph, the ‘fiscal year

10 1996 limit’ means the amount authorized to be

11 appropriated to the District of Columbia as the

12 annual Federal payment to the District of Co13 lumbia under title V of the District of Columbia

14 Self-Government and Governmental Reorga15 nization Act for the fiscal year ending Septem16 ber 30, 1996.

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

18 ON OR AFTER FEBRUARY 1, 1996 AND BEFORE OCTOBER

19 1, 1996.—

20 ‘‘(1) IN GENERAL.—If the conditions in para21 graph (2) are satisfied, the Secretary shall make an

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

23 money in the Treasury not otherwise appropriated,

24 for the same purpose as advances are made under

25 subsection (a).
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Title II, Subtitle A

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1 ‘‘(2) TERMS AND CONDITIONS.—

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

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

4 to any advance made under this subsection.

5 ‘‘(B) EXCEPTIONS.—The conditions appli6 cable under subsection (b)(2) shall apply with

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

9 the same manner as such conditions apply to

10 making advances under such subsection, except

11 that—

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

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

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

16 reference to ‘September 30, 1996’;

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

20 ‘40 percent’; and

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

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

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1 ‘‘SEC. 602. SHORT-TERM ADVANCES FOR SEASONAL CASH2 FLOW MANAGEMENT.

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

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

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

6 not otherwise appropriated, for the purpose of assisting

7 the District government in meeting its general expendi8 tures, as authorized by Congress, at times of seasonal

9 cash-flow deficiencies.

10 ‘‘(b) CONDITIONS TO MAKING ANY SHORT-TERM AD11 VANCE.—The Secretary shall make an advance under this

12 section if—

13 ‘‘(1) the Mayor delivers to the Secretary a req14 uisition for an advance under this section;

15 ‘‘(2) the date on which the requisitioned ad16 vance is to be made is in a control period;

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

18 that—

19 ‘‘(A) the District government has prepared

20 and submitted a financial plan and budget for

21 the District government;

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

23 and budget in effect under the District of Co24 lumbia Financial Responsibility and Manage25 ment Assistance Act of 1995 for the fiscal year

26 for which the requisition is to be made;
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Title II, Subtitle A

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

2 for an advance, the District government is in

3 compliance with the financial plan and budget;

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

5 advance and the reimbursement of Treasury for

6 such advance are consistent with the financial

7 plan and budget for the year; and

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

9 the financial stability of the District govern10 ment;

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

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

13 the District government is effectively unable to ob14 tain credit in the public credit markets or elsewhere

15 in sufficient amounts and on sufficiently reasonable

16 terms to meet the District government’s financing

17 needs;

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

19 Columbia certifies to the Secretary the information

20 described in paragraph (3) by providing the Sec21 retary with a certification conducted by an outside

22 auditor under a contract entered into pursuant to

23 section 208(a)(4) of the District of Columbia Pro24 curement Practices Act of 1985;
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1 ‘‘(6) the Secretary receives such additional cer2 tifications and opinions relating to the financial posi3 tion of the District government as the Secretary de4 termines to be appropriate from such other Federal

5 agencies and instrumentalities as the Secretary de6 termines to be appropriate; and

7 ‘‘(7) the Secretary determines that there is rea8 sonable assurance of reimbursement for the advance

9 from the amount authorized to be appropriated as

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

12 Self-Government and Governmental Reorganization

13 Act for the fiscal year following the fiscal year in

14 which such advance is made.

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

16 ‘‘(1) IN GENERAL.—Except as provided in para17 graph (3), if the conditions in paragraph (2) are sat18 isfied, each advance made under this section shall be

19 in the amount designated by the Mayor in the May20 or’s requisition for such advance.

21 ‘‘(2) CONDITIONS APPLICABLE TO DESIGNATED

22 AMOUNT.—Paragraph (1) applies if—

23 ‘‘(A) the Mayor determines that the

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

2 purpose described in subsection (a); and

3 ‘‘(B) the Authority—

4 ‘‘(i) concurs in the Mayor’s deter5 mination under subparagraph (A); and

6 ‘‘(ii) determines that the reimburse7 ment obligation of the District government

8 for an advance made under this section in

9 the amount designated in the Mayor’s req10 uisition is consistent with the financial

11 plan for the year.

12 ‘‘(3) MAXIMUM AMOUNT OUTSTANDING.—Not13 withstanding paragraph (1), the unpaid principal

14 balance of all advances made under this section in

15 any fiscal year of the District government shall not

16 at any time be greater than 150 percent of the

17 amount authorized under title V of the District of

18 Columbia Self-Government and Governmental Reor19 ganization Act for appropriation as the Federal pay20 ment to the District government for the fiscal year

21 following the fiscal year in which the advance is

22 made.

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

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (3), if the condition in paragraph (2) is satis-
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1 fied, each advance made under this section shall ma2 ture on the date designated by the Mayor in the

3 Mayor’s requisition for such advance.

4 ‘‘(2) CONDITION APPLICABLE TO DESIGNATED

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

6 determines that the reimbursement obligation of the

7 District government for an advance made under this

8 section having the maturity date designated in the

9 Mayor’s requisition is consistent with the financial

10 plan for the year.

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

12 Notwithstanding paragraph (1), the maturity date

13 for any advance made under this section shall not be

14 later than 11 months after the date on which such

15 advance is made.

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

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

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

19 Secretary makes such advance taking into consideration

20 the prevailing yield on outstanding marketable obligations

21 of the United States with remaining periods to maturity

comparable to the maturity of such advance, plus 1 22 ⁄8 of

23 1 percent.

24 ‘‘(f) 10 BUSINESS-DAY ZERO BALANCE REQUIRE25 MENT.—After the expiration of the 12-month period be-
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1 ginning on the date on which the first advance is made

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

3 advance under this section unless the District government

4 has—

5 ‘‘(1) reduced to zero at the same time the prin6 cipal balance of all advances made under this section

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

8 and

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

10 under this section in any of the 10 business days fol11 lowing such reduction.

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

13 204(b) of the District of Columbia Financial Responsibil14 ity and Management Assistance Act of 1995, advances

15 made under this section for the account of the District

16 government shall be deposited by the Secretary into an

17 escrow account held by the Authority.

18 ‘‘SEC. 603. SECURITY FOR ADVANCES.

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

20 District government to provide such security for any ad21 vance made under this title as the Secretary determines

22 to be appropriate.

23 ‘‘(b) AUTHORITY TO REQUIRE SPECIFIC SECU24 RITY.—As security for any advance made under this title,

25 the Secretary may require the District government to—
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1 ‘‘(1) pledge to the Secretary specific taxes and

2 revenue of the District government, if such pledging

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

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

6 pledged to the Secretary.

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

8 ‘‘(a) REIMBURSEMENT AMOUNT.—

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

11 payment is due to the Treasury under the terms of

12 any advance made under this title, the District shall

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

15 the support of the District government.

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

18 ‘‘(A) ADVANCES MADE BEFORE OCTOBER

19 1, 1995.—

20 ‘‘(i) FINANCIAL PLAN AND BUDGET

21 APPROVED.—If the Authority approves a

22 financial plan for the District government

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

2 for any advance made under section

3 601(a).

4 ‘‘(ii) FINANCIAL PLAN AND BUDGET

5 NOT APPROVED.—If the Authority has not

6 approved a financial plan and budget for

7 the District government by October 1,

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

10 fiscal year ending September 30, 1996,

11 shall be withheld and applied to discharge

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

14 made under section 601(a).

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

17 ‘‘(i) FINANCIAL PLAN AND BUDGET

18 APPROVED.—If the Authority approves a

19 financial plan and budget for the District

20 government during fiscal year 1996, the

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

23 its obligation to reimburse the Treasury

24 for any advance made under section

25 601(b).
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1 ‘‘(ii) FINANCIAL PLAN AND BUDGET

2 NOT APPROVED.—If the Authority has not

3 approved a financial plan and budget for

4 the District government by October 1,

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

7 fiscal year ending September 30, 1997,

8 shall be withheld and applied to discharge

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

11 made under section 601(b).

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

13 on any date on which a reimbursement payment is due

14 to the Treasury under the terms of any advance made

15 under this title, the District government does not make

16 such reimbursement payment, the Secretary shall take the

17 actions listed in this subsection.

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

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

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

25 any fiscal year under title V of the District of Co-
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1 lumbia Self-Government and Governmental Reorga2 nization Act, the Secretary shall withhold from such

3 annual Federal payment, and apply toward reim4 bursement for the payment not made, an amount

5 equal to the amount needed to fully reimburse the

6 Treasury for the payment not made.

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

10 reimbursed, the Secretary shall withhold from each

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

12 District government by the Federal Government not

13 dedicated to making entitlement or benefit payments

14 to individuals, and apply toward reimbursement for

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

16 to the amount withheld from each other such grant,

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

18 the amount needed to fully reimburse the Treasury

19 for the payment not made.

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

23 not fully reimbursed, the Secretary shall attach any

24 and all revenues of the District government which

25 the Secretary may lawfully attach, and apply toward
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1 reimbursement for the payment not made, an

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

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

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

7 the Secretary shall take any and all other actions

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

10 Treasury for the payment not made.

11 ‘‘SEC. 605. DEFINITIONS.

12 ‘‘For purposes of this title—

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

14 Columbia Financial Responsibility and Management

15 Assistance Authority established under section

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

18 1995;

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

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

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

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

23 such Act;
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1 ‘‘(4) the term ‘financial plan and budget’ has

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

3 of such Act; and

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

5 of the Treasury.’’.

6 (d) EXPENDITURE OF FUNDS FROM ACCOUNT IN

7 ACCORDANCE WITH AUTHORITY INSTRUCTIONS.—Any

8 funds allocated by the Authority to the Mayor from the

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

11 and conditions established by the Authority at the time

12 the funds are allocated.

13 (e) PROHIBITION AGAINST BORROWING WHILE SUIT

14 PENDING.—The Mayor may not requisition advances from

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

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

19 by the Authority.

20 SEC. 205. DEPOSIT OF ANNUAL FEDERAL PAYMENT WITH

21 AUTHORITY.

22 (a) IN GENERAL.—

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

24 case of a fiscal year which is a control year, the Sec25 retary of the Treasury shall deposit the annual Fed-
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1 eral payment to the District of Columbia for the

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

6 at such intervals and in accordance with such terms

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

9 such terms and conditions, the Authority shall give

10 priority to using the Federal payment for cash flow

11 management and the payment of outstanding bills

12 owed by the District government.

13 (2) EXCEPTION FOR AMOUNTS WITHHELD FOR

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

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

18 of Columbia Revenue Act of 1939 to reimburse the

19 Secretary for advances made under title VI of such

20 Act.

21 (b) EXPENDITURE OF FUNDS FROM ACCOUNT IN

22 ACCORDANCE WITH AUTHORITY INSTRUCTIONS.—Any

23 funds allocated by the Authority to the Mayor from the

24 escrow account described in paragraph (1) may be ex25 pended by the Mayor only in accordance with the terms
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1 and conditions established by the Authority at the time

2 the funds are allocated.

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

4 FINANCIAL PLAN AND BUDGET.

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

6 days after the expiration of each quarter of each fiscal

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

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

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

13 these items.

14 (b) DEMAND FOR ADDITIONAL INFORMATION.—If

15 the Authority determines, based on reports submitted by

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

17 such other information as the Authority may obtain, that

18 the revenues or expenditures of the District government

19 during a control year are not consistent with the financial

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

21 the Mayor to provide such additional information as the

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

24 (c) CERTIFICATION OF VARIANCE.—
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1 (1) IN GENERAL.—After requiring the Mayor to

2 provide additional information under subsection (b),

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

5 that the District government is at variance with the

6 financial plan and budget unless—

7 (A)(i) the additional information provides

8 an explanation for the inconsistency which the

9 Authority finds reasonable and appropriate, or

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

12 financial plan and budget pursuant to section

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

14 Authority finds reasonable and appropriate,

15 taking into account the terms of the financial

16 plan and budget; and

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

19 basis for such period as the Authority may

20 require.

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

23 (A) DETERMINATION BY AUTHORITY.—If

24 the Authority determines that the revenues or

25 expenditures of the District government during
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1 a control year are not consistent with the finan2 cial plan and budget for the year as approved

3 by the Authority under section 202 as a result

4 of the terms and conditions of the budget of the

5 District government for the year as enacted by

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

8 Columbia, the Authority shall so notify the

9 Mayor.

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

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

16 the District government adopts or implements

17 remedial action (including revising the financial

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

19 correct the inconsistency which the Authority

20 finds reasonable and appropriate, taking into

21 account the terms of the financial plan and

22 budget.

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

24 certifies to the Secretary of the Treasury that a variance

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

3 section 205(a) which would otherwise be expended

4 on behalf of the District government; and

5 (2) the Secretary shall withhold funds otherwise

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

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

10 under such other conditions as the Authority may

11 specify.

12 SEC. 207. RECOMMENDATIONS ON FINANCIAL STABILITY

13 AND MANAGEMENT RESPONSIBILITY.

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

15 submit recommendations to the Mayor, the Council, the

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

19 promote the financial stability, management responsibility,

20 and service delivery efficiency of the District government,

21 including recommendations relating to—

22 (1) the management of the District govern23 ment’s financial affairs, including cash forecasting,

24 information technology, placing controls on expendi25 tures for personnel, reducing benefit costs, reforming
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1 procurement practices, and placing other controls on

2 expenditures;

3 (2) the relationship between the District gov4 ernment and the Federal Government;

5 (3) the structural relationship of departments,

6 agencies, and independent agencies within the Dis7 trict government;

8 (4) the modification of existing revenue struc9 tures, or the establishment of additional revenue

10 structures;

11 (5) the establishment of alternatives for meet12 ing obligations to pay for the pensions of former

13 District government employees;

14 (6) modifications or transfers of the types of

15 services which are the responsibility of and are deliv16 ered by the District government;

17 (7) modifications of the types of services which

18 are delivered by entities other than the District gov19 ernment under alternative service delivery mecha20 nisms (including privatization and commercializa21 tion);

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

23 court orders on the operations of the District gov24 ernment;
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1 (9) the establishment of a personnel system for

2 employees of the District government which is based

3 upon employee performance standards; and

4 (10) the improvement of personnel training and

5 proficiency, the adjustment of staffing levels, and

6 the improvement of training and performance of

7 management and supervisory personnel.

8 (b) RESPONSE TO RECOMMENDATIONS FOR ACTIONS

9 WITHIN AUTHORITY OF DISTRICT GOVERNMENT.—

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

13 the District government to adopt, not later than 90

14 days after receiving the recommendations, the Mayor

15 or the Council (whichever has the authority to adopt

16 the recommendation) shall submit a statement to the

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

19 will adopt the recommendations.

20 (2) IMPLEMENTATION PLAN REQUIRED FOR

21 ADOPTED RECOMMENDATIONS.—If the Mayor or the

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

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

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

7 (B) a schedule for auditing the District

8 government’s compliance with the plan.

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

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

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

18 of the recommendations.

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

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

22 (whichever is applicable) notifies the Authority, the

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

24 that the District government will not adopt any rec25 ommendation submitted under subsection (a) which
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1 the District government has authority to adopt, the

2 Authority may by a majority vote of its members

3 take such action concerning the recommendation as

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

6 House of Representatives and the Committee on

7 Governmental Affairs of the Senate.

8 (2) EFFECTIVE DATE.—This subsection shall

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

12 this Act.

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

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

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

16 (1) Not later than 45 days after the appoint17 ment of its members, the Authority shall review the

18 proposed budget for the District of Columbia for

19 such fiscal year submitted to Congress under section

20 446 of the District of Columbia Self-Government

21 and Governmental Reorganization Act (taking into

22 account any items or provisions disapproved by the

23 Mayor or disapproved by the Mayor and reenacted

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

25 of Columbia Self-Government and Governmental Re-
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1 organization Act, as amended by section 202(f)(3))

2 and the multiyear plan for the District of Columbia

3 prepared pursuant to section 443 of the District of

4 Columbia Self-Government and Governmental Reor5 ganization Act, and shall submit any recommenda6 tions for modifications to such financial plan and

7 budget to promote the financial stability of the Dis8 trict government to the Mayor, the Council, the

9 President, and Congress.

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

11 recommendations of the Authority submitted under

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

13 Mayor) shall promptly adopt a revised budget for

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

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

16 budget to the Authority, the President, and Con17 gress.

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

19 transition budget from the Council under paragraph

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

21 Mayor, the Council, the President, and Congress

22 analyzing the budget (taking into account any items

23 or provisions disapproved by the Mayor or dis24 approved by the Mayor and reenacted by the Council

25 under section 404(f) of the District of Columbia
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1 Self-Government and Governmental Reorganization

2 Act, as amended by section 202(f)(3)), and shall in3 clude in the report such recommendations for revi4 sions to the transition budget as the Authority con5 siders appropriate to promote the financial stability

6 of the District government during the fiscal year.

7 (b) FINANCIAL PLAN AND BUDGET.—

8 (1) DEADLINE FOR SUBMISSION.—For purposes

9 of section 202, the Mayor shall submit the financial

10 plan and budget for fiscal year 1996 as soon as

11 practicable after the date of the enactment of this

12 Act (in accordance with guidelines established by the

13 Authority).

14 (2) ADOPTION BY COUNCIL.—In accordance

15 with the procedures applicable under section 202

16 (including procedures providing for review by the

17 Authority)—

18 (A) the Council shall adopt the financial

19 plan and budget for the fiscal year (including

20 the supplemental budget incorporated in the fi21 nancial plan and budget) prior to the submis22 sion by the Mayor of the financial plan and

23 budget for fiscal year 1997 under section

24 202(a); and
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1 (B) the financial plan and budget adopted

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

3 plan and budget disapproved by the Authority,

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

6 shall be submitted to Congress (in accordance

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

10 of the District of Columbia Self-Government

11 and Governmental Reorganization Act).

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

14 the financial plan and budget for fiscal year 1996 by

15 the Authority under this subsection, the transition

16 budget established under subsection (a) (as enacted

17 by Congress) shall serve as the financial plan and

18 budget adopted under this subtitle for purposes of

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

20 Act) for fiscal year 1996.

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

23 (1) MONTHLY DETERMINATION OF PROGRESS

24 TOWARD FINANCIAL PLAN AND BUDGET.—During

25 each month of fiscal year 1996 prior to the adoption
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1 of the financial plan and budget, the Authority shall

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

4 a financial plan and budget for the fiscal year under

5 this subtitle.

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

8 if the Authority finds that the District government

9 is not making appropriate progress in developing the

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

12 should be canceled if the Authority finds that the

13 District government is making such progress after

14 the certification is provided.

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

17 time during which a certification under paragraph

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

19 funds obtained through advances to the Mayor

20 under title VI of the District of Columbia Revenue

21 Act of 1939 from the escrow account in which the

22 funds are held.

23 SEC. 209. CONTROL PERIODS DESCRIBED.

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

25 period’’ is initiated upon the occurrence of any of the fol-
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1 lowing events (as determined by the Authority based upon

2 information obtained through the Mayor, the Inspector

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

4 as the Authority considers appropriate):

5 (1) The requisitioning by the Mayor of ad6 vances from the Treasury of the United States for

7 the support of the District government under title

8 VI of the District of Columbia Revenue Act of 1939

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

10 unreimbursed amounts obtained pursuant to such

11 authority.

12 (2) The failure of the District government to

13 provide sufficient revenue to a debt service reserve

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

15 (3) The default by the District government with

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

17 borrowing.

18 (4) The failure of the District government to

19 meet its payroll for any pay period.

20 (5) The existence of a cash deficit of the Dis21 trict government at the end of any quarter of the

22 fiscal year in excess of the difference between the es23 timated revenues of the District government and the

24 estimated expenditures of the District government

25 (including repayments of temporary borrowings)
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1 during the remainder of the fiscal year or the re2 mainder of the fiscal year together with the first 6

3 months of the succeeding fiscal year (as determined

4 by the Authority in consultation with the Chief Fi5 nancial Officer of the District of Columbia).

6 (6) The failure of the District government to

7 make required payments relating to pensions and

8 benefits for current and former employees of the

9 District government.

10 (7) The failure of the District government to

11 make required payments to any entity established

12 under an interstate compact to which the District of

13 Columbia is a signatory.

14 (b) TERMINATION.—

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

16 upon the certification by the Authority that—

17 (A) the District government has adequate

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

19 markets at reasonable interest rates to meet its

20 borrowing needs; and

21 (B) for 4 consecutive fiscal years (occur22 ring after the date of the enactment of this Act)

23 the expenditures made by the District govern24 ment during each of the years did not exceed

25 the revenues of the District government during
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1 such years (as determined in accordance with

2 generally accepted accounting principles, as

3 contained in the comprehensive annual financial

4 report for the District of Columbia under sec5 tion 448(a)(4) of the District of Columbia Self6 Government and Governmental Reorganization

7 Act).

8 (2) CONSULTATION WITH INSPECTOR GEN9 ERAL.—In making the determination under this sub10 section, the Authority shall consult with the Inspec11 tor General of the District of Columbia.

12 (c) CONTROL PERIOD DEEMED TO EXIST UPON EN13 ACTMENT.—For purposes of this subtitle, a control period

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

15 Subtitle B—Issuance of Bonds

16 SEC. 211. AUTHORITY TO ISSUE BONDS.

17 (a) IN GENERAL.—

18 (1) REQUEST OF MAYOR.—Subject to the re19 quirements of this subtitle, the Authority may at the

20 request of the Mayor pursuant to an act of the

21 Council issue bonds, notes, or other obligations to

22 borrow funds to obtain funds for the use of the Dis23 trict government, in such amounts and in such man24 ner as the Authority considers appropriate.
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1 (2) SPECIAL RULE FOR INSTRUMENTALITIES

2 WITH INDEPENDENT BORROWING AUTHORITY.—In

3 the case of an agency or instrumentality of the Dis4 trict government which under law has the authority

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

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

7 Authority may issue bonds, notes, or other obliga8 tions to borrow funds for the use or functions of

9 such agency or instrumentality at the request of the

10 head of the agency or instrumentality.

11 (b) DEPOSIT OF FUNDS OBTAINED THROUGH BOR12 ROWING WITH AUTHORITY.—Any funds obtained by the

13 District government through borrowing by the Authority

14 pursuant to this subtitle shall be deposited into an escrow

15 account held by the Authority, which shall allocate such

16 funds to the District government in such amounts and at

17 such times as the Authority considers appropriate, consist18 ent with the specified purposes of such funds and the ap19 plicable financial plan and budget under subtitle A.

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

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

22 or other obligations pursuant to this subtitle may be used

23 for any purpose (consistent with the applicable financial

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

25 government may use borrowed funds under the District
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1 of Columbia Self-Government and Governmental Reorga2 nization Act and for any other purpose which the Author3 ity considers appropriate.

4 SEC. 212. PLEDGE OF SECURITY INTEREST IN REVENUES

5 OF DISTRICT GOVERNMENT.

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

7 grant a security interest in revenues to individuals or enti8 ties purchasing bonds, notes, or other obligations issued

9 pursuant to this subtitle.

10 (b) DEDICATION OF REVENUE STREAM FROM DIS11 TRICT GOVERNMENT.—The Authority shall require the

12 Mayor—

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

14 otherwise payable to the District government (which

15 are not otherwise pledged or committed), including

16 payments from the Federal Government, to the Au17 thority for purposes of securing repayment of bonds,

18 notes, or other obligations issued pursuant to this

19 subtitle; and

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

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

22 obligations to the Authority immediately upon collec23 tion.
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1 SEC. 213. ESTABLISHMENT OF DEBT SERVICE RESERVE

2 FUND.

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

4 of bonds, notes, or other obligations pursuant to this sub5 title, the Authority shall establish a debt service reserve

6 fund in accordance with this section.

7 (b) REQUIREMENTS FOR FUND.—

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

9 fund established by the Authority pursuant to this

10 subsection shall consist of such funds as the Author11 ity may make available, and shall be a trust fund

12 held for the benefit and security of the obligees of

13 the Authority whose bonds, notes, or other obliga14 tions are secured by such fund.

15 (2) USES OF FUNDS.—Amounts in a debt serv16 ice reserve fund may be used solely for the payment

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

18 by such fund, the purchase or redemption of such

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

20 payment of any redemption premium required to be

21 paid when such bonds and notes are redeemed prior

22 to maturity.

23 (3) RESTRICTIONS ON WITHDRAWALS.—

24 (A) IN GENERAL.—Amounts in a debt

25 service reserve fund may not be withdrawn from

26 the fund at any time in an amount that would
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1 reduce the amount of the fund to less than the

2 minimum reserve fund requirement established

3 for such fund in the resolution of the Authority

4 creating such fund, except for withdrawals for

5 the purpose of making payments when due of

6 principal, interest, redemption premiums and

7 sinking fund payments, if any, with respect to

8 such bonds for the payment of which other

9 moneys of the Authority are not available, and

10 for the purpose of funding the operations of the

11 Authority for a fiscal year (in such amounts

12 and under such conditions as are established

13 under the budget of the Authority for the fiscal

14 year under section 106(a)).

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

16 subparagraph (A) may be construed to prohibit

17 the Authority from transferring any income or

18 interest earned by, or increments to, any debt

19 service reserve fund due to the investment

20 thereof to other funds or accounts of the Au21 thority (to the extent such transfer does not re22 duce the amount of the debt service reserve

23 fund below the minimum reserve fund require24 ment established for such fund) for such pur25 poses as the Authority considers appropriate to
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1 promote the financial stability and management

2 efficiency of the District government.

3 SEC. 214. OTHER REQUIREMENTS FOR ISSUANCE OF

4 BONDS.

5 (a) MINIMUM DEBT SERVICE RESERVE FUND RE6 QUIREMENT.—The Authority may not at any time issue

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

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

9 reserve fund under section 213 if issuance of such bonds

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

11 below the minimum reserve requirement for such fund, un12 less the Authority at the time of issuance of such bonds

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

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

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

16 the total amount on deposit in such fund to equal or ex17 ceed the minimum reserve fund requirement established

18 by the Authority at the time of the establishment of the

19 fund.

20 (b) AMOUNTS INCLUDED IN AGGREGATE LIMIT ON

21 DISTRICT BORROWING.—Any amounts provided to the

22 District government through the issuance of bonds, notes,

23 or other obligations to borrow funds pursuant to this sub24 title shall be taken into account in determining whether

25 the amount of funds borrowed by the District of Columbia
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1 during a fiscal year exceeds the limitation on such amount

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

3 Self-Government and Governmental Reorganization Act.

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

5 STATES.

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

7 pledged for the payment of any principal of or interest

8 on any bond, note, or other obligation issued by the Au9 thority pursuant to this subtitle. The United States is not

10 responsible or liable for the payment of any principal of

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

12 by the Authority pursuant to this subtitle.

13 Subtitle C—Other Duties of

14 Authority

15 SEC. 221. DUTIES OF AUTHORITY DURING YEAR OTHER

16 THAN CONTROL YEAR.

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

18 the termination of a control period pursuant to section

19 209(b) and ending with the suspension of its activities

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

21 the following activities:

22 (1) The Authority shall review the budgets of

23 the District government adopted by the Council

24 under section 446 of the District of Columbia Self-
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1 Government and Governmental Reorganization Act

2 for each fiscal year occurring during such period.

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

4 budget by Congress as the Authority considers ap5 propriate, the Authority shall prepare a report ana6 lyzing the budget and submit the report to the

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

8 (3) The Authority shall monitor the financial

9 status of the District government and shall submit

10 reports to the Mayor, the Council, the President,

11 and Congress if the Authority determines that a risk

12 exists that a control period may be initiated pursu13 ant to section 209(a).

14 (4) The Authority shall carry out activities

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

16 other obligations of the Authority outstanding dur17 ing such period.

18 (b) REQUIRING MAYOR TO SUBMIT BUDGETS TO AU19 THORITY.—With respect to the budget for each fiscal year

20 beginning after the date of the enactment of this Act

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

22 the budget of the District government adopted by the

23 Council to the President under section 446 of the District

24 of Columbia Self-Government and Governmental Reorga-
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1 nization Act, the Mayor shall submit such budget to the

2 Authority.

3 SEC. 222. GENERAL ASSISTANCE IN ACHIEVING FINANCIAL

4 STABILITY AND MANAGEMENT EFFICIENCY.

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

6 the Authority may undertake cooperative efforts to assist

7 the District government in achieving financial stability

8 and management efficiency, including—

9 (1) assisting the District government in avoid10 ing defaults, eliminating and liquidating deficits,

11 maintaining sound budgetary practices, and avoiding

12 interruptions in the delivery of services;

13 (2) assisting the District government in improv14 ing the delivery of municipal services, the training

15 and effectiveness of personnel of the District govern16 ment, and the efficiency of management and super17 vision; and

18 (3) making recommendations to the President

19 for transmission to Congress on changes to this Act

20 or other Federal laws, or other actions of the Fed21 eral Government, which would assist the District

22 government in complying with an approved financial

23 plan and budget under subtitle A.
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1 SEC. 223. OBTAINING REPORTS.

2 The Authority may require the Mayor, the Chair of

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

4 Columbia, and the Inspector General of the District of Co5 lumbia, to prepare and submit such reports as the Author6 ity considers appropriate to assist it in carrying out its

7 responsibilities under this Act, including submitting copies

8 of any reports regarding revenues, expenditures, budgets,

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

10 budgetary matters of the District government.

11 SEC. 224. REPORTS AND COMMENTS.

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

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

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

15 Congress describing—

16 (1) the progress made by the District govern17 ment in meeting the objectives of this Act during the

18 fiscal year;

19 (2) the assistance provided by the Authority to

20 the District government in meeting the purposes of

21 this Act for the fiscal year; and

22 (3) any other activities of the Authority during

23 the fiscal year.

24 (b) REVIEW AND ANALYSIS OF PERFORMANCE AND

25 FINANCIAL ACCOUNTABILITY REPORTS.—
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1 (1) IN GENERAL.—The Authority shall review

2 each report prepared and submitted by the Mayor

3 under section 456 of the District of Columbia Self4 Government and Governmental Reorganization Act

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

6 Reauthorization Act of 1994), and shall submit a re7 port to Congress analyzing the completeness and ac8 curacy of such reports.

9 (2) SUBMISSION OF REPORTS BY MAYOR.—Sec10 tion 456 of the District of Columbia Self-Govern11 ment and Governmental Reorganization Act, as

12 added by section 3(a) of the Federal Payment Reau13 thorization Act of 1994, is amended by adding at

14 the end the following new subsection:

15 ‘‘(e) SUBMISSION OF REPORTS TO DISTRICT OF CO16 LUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT

17 ASSISTANCE AUTHORITY.—In the case of any report sub18 mitted by the Mayor under this section for a fiscal year

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

20 under the District of Columbia Financial Responsibility

21 and Management Assistance Act of 1995, the Mayor shall

22 submit the report to the District of Columbia Financial

23 Responsibility and Management Assistance Authority es24 tablished under section 101(a) of such Act in addition to
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1 any other individual to whom the Mayor is required to

2 submit the report under this section.’’.

3 (c) COMMENTS REGARDING ACTIVITIES OF DISTRICT

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

5 Authority may submit a report to Congress describing any

6 action taken by the District government (or any failure

7 to act by the District government) which the Authority

8 determines will adversely affect the District government’s

9 ability to comply with an approved financial plan and

10 budget under subtitle A or will otherwise have a signifi11 cant adverse impact on the best interests of the District

12 of Columbia.

13 (d) REPORTS ON EFFECT OF FEDERAL LAWS ON

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

15 the Authority may submit a report to the Mayor, the

16 Council, the President, and Congress on the effect of laws

17 enacted by Congress on the financial stability and man18 agement efficiency on the financial plan and budget for

19 the year and on the District government in general.

20 (e) MAKING REPORTS PUBLICLY AVAILABLE.—The

21 Authority shall make any report submitted under this sec22 tion available to the public, except to the extent that the

23 Authority determines that the report contains confidential

24 material.
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1 TITLE III—MISCELLANEOUS

2 PROVISIONS

3 SEC. 301. OTHER DISTRICT BUDGET REFORMS.

4 (a) INCLUSION OF ALL FUNDS OF DISTRICT IN

5 BUDGET OF DISTRICT GOVERNMENT.—

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

7 (sec. 1–202, D.C. Code) is amended—

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

9 as follows:

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

11 funds derived from taxes, fees, charges, miscellane12 ous receipts, the annual Federal payment to the Dis13 trict authorized under title V, grants and other

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

15 notes, or other obligations, and any funds adminis16 tered by the District government under cost sharing

17 arrangements.’’;

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

19 as follows:

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

21 balances, enterprise or other revolving funds, and

22 funds realized from borrowing.’’; and

23 (C) by amending paragraph (15) to read

24 as follows:
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1 ‘‘(15) The term ‘budget’ means the entire re2 quest for appropriations or loan or spending author3 ity for all activities of all departments or agencies of

4 the District of Columbia financed from all existing,

5 proposed or anticipated resources, and shall include

6 both operating and capital expenditures.’’.

7 (2) EFFECTIVE DATE.—The amendments made

8 by paragraph (1) shall apply with respect to reve9 nues, resources, and budgets of the District of Co10 lumbia for fiscal years beginning with fiscal year

11 1996.

12 (b) RESTRICTIONS ON REPROGRAMMING OF

13 FUNDS.—

14 (1) IN GENERAL.—Section 446 of such Act

15 (sec. 47–304, D.C. Code) is amended by adding at

16 the end the following: ‘‘After the adoption of the an17 nual budget for a fiscal year (beginning with the an18 nual budget for fiscal year 1995), no reprogramming

19 of amounts in the budget may occur unless the

20 Mayor submits to the Council a request for such

21 reprogramming and the Council approves the re22 quest, but only if any additional expenditures pro23 vided under such request for an activity are offset

24 by reductions in expenditures for another activity.’’.
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1 (2) CONFORMING AMENDMENT.—Section 5 of

2 D.C. Law 3–100 (sec. 47–364, D.C. Code) is hereby

3 repealed.

4 (c) PERMITTING COUNCIL TO REQUEST BUDGET

5 ADJUSTMENTS FROM MAYOR.—Section 442 of the Dis6 trict of Columbia Self-Government and Governmental Re7 organization Act (sec. 47–301, D.C. Code), as amended

8 by section 202(f), is amended by adding at the end the

9 following new subsection:

10 ‘‘(e) The Mayor shall prepare and submit to the

11 Council a proposed supplemental or deficiency budget rec12 ommendation under subsection (c) if the Council by reso13 lution requests the Mayor to submit such a recommenda14 tion.’’.

15 (d) REQUIRING BUDGETARY IMPACT STATEMENTS

16 TO ACCOMPANY ACTS OF COUNCIL.—

17 (1) IN GENERAL.—Section 602(c) of the Dis18 trict of Columbia Self-Government and Govern19 mental Reorganization Act (sec. 1–233(c), D.C.

20 Code) is amended by adding at the end the following

21 new paragraph:

22 ‘‘(3) The Council shall submit with each Act trans23 mitted under this subsection an estimate of the costs

24 which will be incurred by the District of Columbia as a

25 result of the enactment of the Act in each of the first 4
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1 fiscal years for which the Act is in effect, together with

2 a statement of the basis for such estimate.’’.

3 (2) EFFECTIVE DATE.—The amendment made

4 by paragraph (1) shall apply to Acts of the Council

5 transmitted on or after October 1, 1995.

6 (e) EXTENSION OF AUTHORIZATION OF ANNUAL

7 FEDERAL PAYMENT.—Section 503(c) of the District of

8 Columbia Self-Government and Governmental Reorganiza9 tion Act (sec. 47–3406.1(c), D.C. Code), as added by sec10 tion 2 of the Federal Payment Reauthorization Act of

11 1994, is amended by striking ‘‘fiscal year 1996’’ and in12 serting ‘‘each of the fiscal years 1996, 1997, 1998, and

13 1999’’.

14 SEC. 302. ESTABLISHMENT OF CHIEF FINANCIAL OFFICER

15 OF DISTRICT OF COLUMBIA.

16 (a) IN GENERAL.—Part B of title IV of the District

17 of Columbia Self-Government and Governmental Reorga18 nization Act is amended by adding at the end the following

19 new section:

20 ‘‘CHIEF FINANCIAL OFFICER OF THE DISTRICT OF

21 COLUMBIA

22 ‘‘SEC. 424. (a) ESTABLISHMENT OF OFFICE.—

23 ‘‘(1) IN GENERAL.—There is hereby established

24 within the executive branch of the government of the

25 District of Columbia an Office of the Chief Financial

26 Officer of the District of Columbia (hereafter re-
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1 ferred to as the ‘Office’), which shall be headed by

2 the Chief Financial Officer of the District of Colum3 bia (hereafter referred to as the ‘Chief Financial

4 Officer’).

5 ‘‘(2) OFFICE OF THE TREASURER.—The Office

6 shall include the Office of the Treasurer, which shall

7 be headed by the Treasurer of the District of Colum8 bia, who shall be appointed by the Chief Financial

9 Officer and subject to the Chief Financial Officer’s

10 direction and control.

11 ‘‘(3) TRANSFER OF OTHER OFFICES.—Effective

12 with the appointment of the first Chief Financial Of13 ficer under subsection (b), the functions and person14 nel of the following offices are transferred to the

15 Office:

16 ‘‘(A) The Controller of the District of

17 Columbia.

18 ‘‘(B) The Office of the Budget.

19 ‘‘(C) The Office of Financial Information

20 Services.

21 ‘‘(D) The Department of Finance and

22 Revenue.

23 ‘‘(4) SERVICE OF HEADS OF OTHER OFFICES.—

24 ‘‘(A) OFFICE HEADS APPOINTED BY

25 MAYOR.—With respect to the head of the Office
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1 of the Budget and the head of the Department

2 of Finance and Revenue—

3 ‘‘(i) the Mayor shall appoint such in4 dividuals with the advice and consent of

5 the Council, subject to the approval of the

6 Authority during a control year; and

7 ‘‘(ii) during a control year, the Au8 thority may remove such individuals from

9 office for cause, after consultation with the

10 Mayor.

11 ‘‘(B) OFFICE HEADS APPOINTED BY CHIEF

12 FINANCIAL OFFICER.—With respect to the

13 Controller of the District of Columbia and the

14 head of the Office of Financial Information

15 Services—

16 ‘‘(i) the Chief Financial Officer shall

17 appoint such individuals subject to the ap18 proval of the Mayor; and

19 ‘‘(ii) the Chief Financial Officer may

20 remove such individuals from office for

21 cause, after consultation with the Mayor.

22 ‘‘(b) APPOINTMENT.—

23 ‘‘(1) IN GENERAL.—
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1 ‘‘(A) CONTROL YEAR.—During a control

2 year, the Chief Financial Officer shall be ap3 pointed by the Mayor as follows:

4 ‘‘(i) Prior to the appointment of the

5 Chief Financial Officer, the Authority may

6 submit recommendations for the appoint7 ment to the Mayor.

8 ‘‘(ii) In consultation with the Author9 ity and the Council, the Mayor shall nomi10 nate an individual for appointment and no11 tify the Council of the nomination.

12 ‘‘(iii) After the expiration of the 7-day

13 period which begins on the date the Mayor

14 notifies the Council of the nomination

15 under clause (ii), the Mayor shall notify

16 the Authority of the nomination.

17 ‘‘(iv) The nomination shall be effective

18 subject to approval by a majority vote of

19 the Authority.

20 ‘‘(B) OTHER YEARS.—During a year other

21 than a control year, the Chief Financial Officer

22 shall be appointed by the Mayor with the advice

23 and consent of the Council. Prior to appoint24 ment, the Authority may submit recommenda25 tions for the appointment.
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1 ‘‘(2) REMOVAL.—

2 ‘‘(A) CONTROL YEAR.—During a control

3 year, the Chief Financial Officer may be re4 moved for cause by the Authority or by the

5 Mayor with the approval of the Authority.

6 ‘‘(B) OTHER YEARS.—During a year other

7 than a control year, the Chief Financial Officer

8 shall serve at the pleasure of the Mayor, except

9 that the Chief Financial Officer may only be re10 moved for cause.

11 ‘‘(3) SALARY.—The Chief Financial Officer

12 shall be paid at an annual rate determined by the

13 Mayor, except that such rate may not exceed the

14 rate of basic pay payable for level IV of the Execu15 tive Schedule.

16 ‘‘(c) FUNCTIONS DURING CONTROL YEAR.—During

17 a control year, the Chief Financial Officer shall have the

18 following duties:

19 ‘‘(1) Preparing the financial plan and budget

20 for the use of the Mayor for purposes of subtitle A

21 of title II of the District of Columbia Financial Re22 sponsibility and Management Assistance Act of

23 1995.
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1 ‘‘(2) Preparing the budgets of the District of

2 Columbia for the year for the use of the Mayor for

3 purposes of part D.

4 ‘‘(3) Assuring that all financial information pre5 sented by the Mayor is presented in a manner, and

6 is otherwise consistent with, the requirements of the

7 District of Columbia Financial Responsibility and

8 Management Assistance Act of 1995.

9 ‘‘(4) Implementing appropriate procedures and

10 instituting such programs, systems, and personnel

11 policies within the Officer’s authority, to ensure that

12 budget, accounting and personnel control systems

13 and structures are synchronized for budgeting and

14 control purposes on a continuing basis.

15 ‘‘(5) With the approval of the Authority,

16 preparing and submitting to the Mayor and the

17 Council—

18 ‘‘(A) annual estimates of all revenues of

19 the District of Columbia (without regard to the

20 source of such revenues), including proposed

21 revenues, which shall be binding on the Mayor

22 and the Council for purposes of preparing and

23 submitting the budget of the District govern24 ment for the year under part D, except that the

25 Mayor and the Council may prepare the budget
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1 based on estimates of revenues which are lower

2 than those prepared by the Chief Financial

3 Officer; and

4 ‘‘(B) quarterly re-estimates of the revenues

5 of the District of Columbia during the year.

6 ‘‘(6) Supervising and assuming responsibility

7 for financial transactions to ensure adequate control

8 of revenues and resources, and to ensure that appro9 priations are not exceeded.

10 ‘‘(7) Maintaining systems of accounting and in11 ternal control designed to provide—

12 ‘‘(A) full disclosure of the financial impact

13 of the activities of the District government;

14 ‘‘(B) adequate financial information need15 ed by the District government for management

16 purposes;

17 ‘‘(C) effective control over, and account18 ability for, all funds, property, and other assets

19 of the District of Columbia; and

20 ‘‘(D) reliable accounting results to serve as

21 the basis for preparing and supporting agency

22 budget requests and controlling the execution of

23 the budget.

24 ‘‘(8) Submitting to the Council a financial

25 statement of the District government, containing
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1 such details and at such times as the Council may

2 specify.

3 ‘‘(9) Supervising and assuming responsibility

4 for the assessment of all property subject to assess5 ment and special assessments within the corporate

6 limits of the District of Columbia for taxation, pre7 paring tax maps, and providing such notice of taxes

8 and special assessments (as may be required by

9 law).

10 ‘‘(10) Supervising and assuming responsibility

11 for the levying and collection of all taxes, special as12 sessments, licensing fees, and other revenues of the

13 District of Columbia (as may be required by law),

14 and receiving all amounts paid to the District of Co15 lumbia from any source (including the Authority).

16 ‘‘(11) Maintaining custody of all public funds

17 belonging to or under the control of the District gov18 ernment (or any department or agency of the Dis19 trict government), and depositing all amounts paid

20 in such depositories and under such terms and con21 ditions as may be designated by the Council or the

22 Authority.

23 ‘‘(12) Maintaining custody of all investment

24 and invested funds of the District government or in

25 possession of the District government in a fiduciary
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1 capacity, and maintaining the safekeeping of all

2 bonds and notes of the District government and the

3 receipt and delivery of District government bonds

4 and notes for transfer, registration, or exchange.

5 ‘‘(13) Apportioning the total of all appropria6 tions and funds made available during the year for

7 obligation so as to prevent obligation or expenditure

8 in a manner which would result in a deficiency or a

9 need for supplemental appropriations during the

10 year, and (with respect to appropriations and funds

11 available for an indefinite period and all authoriza12 tions to create obligations by contract in advance of

13 appropriations) apportioning the total of such appro14 priations, funds, or authorizations in the most effec15 tive and economical manner.

16 ‘‘(14) Certifying all contracts (whether directly

17 or through delegation) prior to execution as to the

18 availability of funds to meet the obligations expected

19 to be incurred by the District government under

20 such contracts during the year.

21 ‘‘(15) Prescribing the forms of receipts, vouch22 ers, bills, and claims to be used by all agencies, of23 fices, and instrumentalities of the District govern24 ment.
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1 ‘‘(16) Certifying and approving prior to pay2 ment all bills, invoices, payrolls, and other evidences

3 of claims, demands, or charges against the District

4 government, and determining the regularity, legality,

5 and correctness of such bills, invoices, payrolls,

6 claims, demands, or charges.

7 ‘‘(17) In coordination with the Inspector Gen8 eral of the District of Columbia, performing internal

9 audits of accounts and operations and records of the

10 District government, including the examination of

11 any accounts or records of financial transactions,

12 giving due consideration to the effectiveness of ac13 counting systems, internal control, and related ad14 ministrative practices of the departments and agen15 cies of the District government.

16 ‘‘(d) FUNCTIONS DURING ALL YEARS.—At all times,

17 the Chief Financial Officer shall have the following duties:

18 ‘‘(1) Exercising responsibility for the adminis19 tration and supervision of the District of Columbia

20 Treasurer (except that the Chief Financial Officer

21 may delegate any portion of such responsibility as

22 the Chief Financial Officer considers appropriate

23 and consistent with efficiency).
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1 ‘‘(2) Administering all borrowing programs of

2 the District government for the issuance of long3 term and short-term indebtedness.

4 ‘‘(3) Administering the cash management pro5 gram of the District government, including the in6 vestment of surplus funds in governmental and non7 governmental interest-bearing securities and ac8 counts.

9 ‘‘(4) Administering the centralized District gov10 ernment payroll and retirement systems.

11 ‘‘(5) Governing the accounting policies and sys12 tems applicable to the District government.

13 ‘‘(6) Preparing appropriate annual, quarterly,

14 and monthly financial reports of the accounting and

15 financial operations of the District government.

16 ‘‘(7) Not later than 120 days after the end of

17 each fiscal year (beginning with fiscal year 1995),

18 preparing the complete financial statement and re19 port on the activities of the District government for

20 such fiscal year, for the use of the Mayor under sec21 tion 448(a)(4) of the District of Columbia Self-Gov22 ernment and Governmental Reorganization Act.

23 ‘‘(e) FUNCTIONS OF TREASURER.—At all times, the

24 Treasurer shall have the following duties:
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1 ‘‘(1) Assisting the Chief Financial Officer in re2 porting revenues received by the District govern3 ment, including submitting annual and quarterly re4 ports concerning the cash position of the District

5 government not later than 60 days after the last day

6 of the quarter (or year) involved. Such reports shall

7 include:

8 ‘‘(A) Comparative reports of revenue and

9 other receipts by source, including tax, nontax,

10 and Federal revenues, grants and reimburse11 ments, capital program loans, and advances.

12 Each source shall be broken down into specific

13 components.

14 ‘‘(B) Statements of the cash flow of the

15 District government for the preceding quarter

16 or year, including receipts, disbursements, net

17 changes in cash inclusive of the beginning bal18 ance, cash and investment, and the ending bal19 ance, inclusive of cash and investment. Such

20 statements shall reflect the actual, planned, bet21 ter or worse dollar amounts and the percentage

22 change with respect to the current quarter,

23 year-to-date, and fiscal year.

24 ‘‘(C) Quarterly cash flow forecast for the

25 quarter or year involved, reflecting receipts, dis-
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1 bursements, net change in cash inclusive of the

2 beginning balance, cash and investment, and

3 the ending balance, inclusive of cash and invest4 ment with respect to the actual dollar amounts

5 for the quarter or year, and projected dollar

6 amounts for each of the 3 succeeding quarters.

7 ‘‘(D) Monthly reports reflecting a detailed

8 summary analysis of all District of Columbia

9 government investments, including, but not lim10 ited to—

11 ‘‘(i) the total of long-term and short12 term investments;

13 ‘‘(ii) a detailed summary analysis of

14 investments by type and amount, including

15 purchases, sales (maturities), and interest;

16 ‘‘(iii) an analysis of investment port17 folio mix by type and amount, including li18 quidity, quality/risk of each security, and

19 similar information;

20 ‘‘(iv) an analysis of investment strat21 egy, including near-term strategic plans

22 and projects of investment activity, as well

23 as forecasts of future investment strategies

24 based on anticipated market conditions,

25 and similar information;
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1 ‘‘(v) an analysis of cash utilization, in2 cluding—

3 ‘‘(I) comparisons of budgeted

4 percentages of total cash to be in5 vested with actual percentages of cash

6 invested and the dollar amounts;

7 ‘‘(II) comparisons of the next re8 turn on invested cash expressed in

9 percentages (yield) with comparable

10 market indicators and established Dis11 trict of Columbia government yield ob12 jectives; and

13 ‘‘(III) comparisons of estimated

14 dollar return against actual dollar

15 yield.

16 ‘‘(E) Monthly reports reflecting a detailed

17 summary analysis of long-term and short-term

18 borrowings inclusive of debt as authorized by

19 section 603, in the current fiscal year and the

20 amount of debt for each succeeding fiscal year

21 not to exceed 5 years. All such reports shall

22 reflect—

23 ‘‘(i) the amount of debt outstanding

24 by type of instrument;
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1 ‘‘(ii) the amount of authorized and

2 unissued debt, including availability of

3 short-term lines of credit, United States

4 Treasury borrowings, and similar informa5 tion;

6 ‘‘(iii) a maturity schedule of the debt;

7 ‘‘(iv) the rate of interest payable upon

8 the debt; and

9 ‘‘(v) the amount of debt service re10 quirements and related debt service re11 serves.

12 ‘‘(2) Such other functions assigned to the Chief

13 Financial Officer under subsection (c) or subsection

14 (d) as the Chief Financial Officer may delegate.

15 ‘‘(f) DEFINITIONS.—In this section—

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

17 Columbia Financial Responsibility and Management

18 Assistance Authority established under section

19 101(a) of the District of Columbia Financial Re20 sponsibility and Management Assistance Act of

21 1995;

22 ‘‘(2) the term ‘control year’ has the meaning

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

24 and
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1 ‘‘(3) the term ‘District government’ has the

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

3 such Act.’’.

4 (b) PROHIBITING DELEGATION OF CHIEF FINANCIAL

5 OFFICER’S AUTHORITY.—Section 422(6) of the District

6 of Columbia Self-Government and Governmental Reorga7 nization Act (sec. 1–242(6), D.C. Code) is amended by

8 adding at the end the following: ‘‘Nothing in the previous

9 sentence may be construed to permit the Mayor to dele10 gate any functions assigned to the Chief Financial Officer

11 of the District of Columbia under section 424, without re12 gard to whether such functions are assigned to the Chief

13 Financial Officer under such section during a control year

14 (as defined in section 305(4) of the District of Columbia

15 Financial Responsibility and Management Assistance Act

16 of 1995) or during any other year.’’.

17 (c) CONFORMING AMENDMENT.—Effective upon the

18 appointment of the Chief Financial Officer of the District

19 of Columbia under section 424(b) of the District of Co20 lumbia Self-Government and Governmental Reorganiza21 tion Act (as added by subsection (a)), D.C. Law 3–138

22 (sec. 47–314 et seq., D.C. Code) is repealed.

23 (d) CLERICAL AMENDMENT.—The table of contents

24 of part B of title IV of the District of Columbia Self-Gov-
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1 ernment and Governmental Reorganization Act is amend2 ed by adding at the end the following new item:

‘‘Sec. 424. Chief Financial Officer of the District of Columbia.’’.

3 SEC. 303. REVISIONS TO POWERS AND DUTIES OF INSPEC4 TOR GENERAL OF DISTRICT OF COLUMBIA.

5 (a) APPOINTMENT AND TERM OF SERVICE; INDE6 PENDENCE OF BUDGET.—Section 208(a) of the District

7 of Columbia Procurement Practices Act of 1985 (sec. 1–

8 1182.8(a), D.C. Code) is amended by striking paragraphs

9 (1) and (2) and inserting the following:

10 ‘‘(1)(A) There is created within the executive branch

11 of the government of the District of Columbia the Office

12 of the Inspector General. The Office shall be headed by

13 an Inspector General appointed pursuant to subparagraph

14 (B), who shall serve for a term of 6 years and shall be

15 subject to removal only for cause by the Mayor (with the

16 approval of the District of Columbia Financial Respon17 sibility and Management Assistance Authority in a control

18 year) or (in the case of a control year) by the Authority.

19 The Inspector General may be reappointed for additional

20 terms.

21 ‘‘(B) During a control year, the Inspector General

22 shall be appointed by the Mayor as follows:

23 ‘‘(i) Prior to the appointment of the Inspector

24 General, the Authority may submit recommendations

25 for the appointment to the Mayor.
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1 ‘‘(ii) In consultation with the Authority and the

2 Council, the Mayor shall nominate an individual for

3 appointment and notify the Council of the nomina4 tion.

5 ‘‘(iii) After the expiration of the 7-day period

6 which begins on the date the Mayor notifies the

7 Council of the nomination under clause (ii), the

8 Mayor shall notify the Authority of the nomination.

9 ‘‘(iv) The nomination shall be effective subject

10 to approval by a majority vote of the Authority.

11 ‘‘(C) During a year which is not a control year, the

12 Inspector General shall be appointed by the Mayor with

13 the advice and consent of the Council. Prior to appoint14 ment, the Authority may submit recommendations for the

15 appointment.

16 ‘‘(D) The Inspector General shall be appointed with17 out regard to party affiliation and solely on the basis of

18 integrity and demonstrated ability in accounting, auditing,

19 financial management analysis, public administration, or

20 investigations.

21 ‘‘(E) The Inspector General shall be paid at an an22 nual rate determined by the Mayor, except that such rate

23 may not exceed the rate of basic pay payable for level IV

24 of the Executive Schedule.
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1 ‘‘(2) The annual budget for the Office shall be adopt2 ed as follows:

3 ‘‘(A) The Inspector General shall prepare and

4 submit to the Mayor, for inclusion in the annual

5 budget of the District of Columbia under part D of

6 title IV of the District of Columbia Self-Government

7 and Governmental Reorganization Act for the year,

8 annual estimates of the expenditures and appropria9 tions necessary for the operation of the Office for

10 the year. All such estimates shall be forwarded by

11 the Mayor to the Council of the District of Columbia

12 for its action pursuant to sections 446 and 603(c)

13 of such Act, without revision but subject to rec14 ommendations. Notwithstanding any other provision

15 of such Act, the Council may comment or make rec16 ommendations concerning such estimates, but shall

17 have no authority to revise such estimates.

18 ‘‘(B) Upon receipt of the annual Federal pay19 ment for the District of Columbia authorized under

20 title V of the District of Columbia Self-Government

21 and Governmental Reorganization Act, the Mayor

22 shall deposit a portion of the payment (equal to the

23 estimate of necessary appropriations described in

24 subparagraph (A)) into a dedicated fund within the

25 government of the District of Columbia.
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1 ‘‘(C) Amounts deposited in the dedicated fund

2 described in subparagraph (B) shall be available

3 solely for the operation of the Office, and shall be

4 paid to the Inspector General by the Mayor (acting

5 through the Chief Financial Officer of the District

6 of Columbia) in such installments and at such times

7 as the Inspector General requires.’’.

8 (b) ADDITIONAL POWERS AND DUTIES.—

9 (1) IN GENERAL.—Section 208(a)(3) of the

10 District of Columbia Procurement Practices Act of

11 1985 (sec. 1–1182.8(a)(3), D.C. Code) is amend12 ed—

13 (A) by striking ‘‘and’’ at the end of sub14 paragraph (E);

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

16 subparagraph (F) and inserting a semicolon;

17 and

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

19 subparagraphs:

20 ‘‘(G) Pursuant to a contract described in para21 graph (4), provide certifications under section

22 602(b)(5) of title VI of the District of Columbia

23 Revenue Act of 1939;

24 ‘‘(H) Pursuant to a contract described in para25 graph (4), audit the complete financial statement
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1 and report on the activities of the District govern2 ment for such fiscal year, for the use of the Mayor

3 under section 448(a)(4) of the District of Columbia

4 Self-Government and Governmental Reorganization

5 Act; and

6 ‘‘(I) Not later than 30 days before the begin7 ning of each fiscal year (beginning with fiscal year

8 1996) and in consultation with the Mayor, the

9 Council, and the Authority, establish an annual plan

10 for audits to be conducted under this paragraph dur11 ing the fiscal year under which the Inspector Gen12 eral shall report only those variances which are in an

13 amount equal to or greater than $1,000,000 or 1

14 percent of the applicable annual budget for the pro15 gram in which the variance is found (whichever is

16 lesser).’’.

17 (2) LIMITATION ON CONTRACT WITH OUTSIDE

18 AUDITOR.—Section 208(a) of such Act (sec. 1–

19 1182.8(a), D.C. Code) is amended by adding at the

20 end the following new paragraph:

21 ‘‘(4) The Inspector General shall enter into a contract

22 with an auditor who is not an officer or employee of the

23 Office to—

24 ‘‘(A) audit the financial statement and report

25 described in paragraph (3)(H) for a fiscal year, ex-
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1 cept that the financial statement and report may not

2 be audited by the same auditor (or an auditor em3 ployed by or affiliated with the same auditor) for

4 more than 3 consecutive fiscal years; and

5 ‘‘(B) audit the certification described in para6 graph (3)(G).’’.

7 (3) SUBPOENA POWER.—Section 208(c) of such

8 Act (sec. 1–1182.8(c), D.C. Code) is amended—

9 (A) by striking ‘‘(c)’’ and inserting

10 ‘‘(c)(1)’’; and

11 (B) by adding at the end the following new

12 paragraph:

13 ‘‘(2)(A) The Inspector General may issue subpoenas

14 requiring the attendance and testimony of witnesses and

15 the production of any evidence relating to any matter

16 under investigation by the Inspector General.

17 ‘‘(B) If a person refuses to obey a subpoena issued

18 under subparagraph (A), the Inspector General may apply

19 to the Superior Court of the District of Columbia for an

20 order requiring that person to appear before the Inspector

21 General to give testimony, produce evidence, or both, re22 lating to the matter under investigation. Any failure to

23 obey the order of the court may be punished by the Supe24 rior Court as civil contempt.’’.
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1 (4) REFERRAL OF FINDINGS OF CRIMINAL AC2 TIVITY TO ATTORNEY GENERAL.—Section 208 of

3 such Act (sec. 1–1182.8, D.C. Code) is amended by

4 adding at the end the following new subsection:

5 ‘‘(f) In carrying out the duties and responsibilities es6 tablished under this section, the Inspector General shall

7 report expeditiously to the Attorney General whenever the

8 Inspector General has reasonable grounds to believe there

9 has been a violation of Federal or District criminal law.’’.

10 (c) REVISION OF CURRENT POWERS AND DUTIES.—

11 (1) LIAISON REPRESENTATIVE FOR ALL EXTER12 NAL AUDITS OF DISTRICT GOVERNMENT.—Section

13 208(a)(3)(B) of such Act (sec. 1–1182.8(a)(3)(B),

14 D.C. Code) is amended by striking ‘‘executive

15 branch’’.

16 (2) APPLICATION OF GENERALLY ACCEPTED

17 ACCOUNTING PRINCIPLES.—Section 208(b) of such

18 Act (sec. 1–1182.8(b), D.C. Code) is amended by in19 serting ‘‘accounting and’’ after ‘‘accepted’’.

20 (3) ACCESS TO ALL NECESSARY RECORDS.—

21 Section 208(c)(1) of such Act (sec. 1–1182.8(c),

22 D.C. Code), as amended by subsection (b)(3), is

23 amended by striking ‘‘relating to contracts and pro24 curement’’.
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1 (4) SUBMISSION OF REPORTS TO AUTHORITY

2 DURING CONTROL YEAR.—Section 208(d) of such

3 Act (sec. 1–1182.8(d), D.C. Code) is amended—

4 (A) in paragraph (1), by striking ‘‘the

5 Mayor and the Council’’ and inserting ‘‘the Au6 thority (or, with respect to a fiscal year which

7 is not a control year, the Mayor and the Coun8 cil)’’; and

9 (B) in paragraph (2), by striking ‘‘the

10 Mayor’’ and inserting ‘‘the Authority, the

11 Mayor,’’.

12 (5) MAKING REPORTS PUBLICLY AVAILABLE.—

13 Section 208(d) of such Act (sec. 1–1182.8(d), D.C.

14 Code) is amended by adding at the end the following

15 new paragraph:

16 ‘‘(4) The Inspector General shall make each report

17 submitted under this subsection available to the public, ex18 cept to the extent that the report contains information de19 termined by the Inspector General to be privileged.’’.

20 (6) RESPONDING TO REQUESTS OF AUTHOR21 ITY.—Section 208(e) of such Act (sec. 1–1182.8(e),

22 D.C. Code) is amended by striking ‘‘the Director’’

23 and inserting ‘‘the Authority’’.

24 (d) DEFINITIONS.—Section 208 of such Act (sec. 1–

25 1182.8, D.C. Code), as amended by subsection (b)(4), is
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1 amended by adding at the end the following new sub2 section:

3 ‘‘(g) In this section—

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

5 Columbia Financial Responsibility and Management

6 Assistance Authority established under section

7 101(a) of the District of Columbia Financial Re8 sponsibility and Management Assistance Act of

9 1995;

10 ‘‘(2) the term ‘control year’ has the meaning

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

12 and

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

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

15 such Act.’’.

16 (e) DEADLINE FOR APPOINTMENT.—

17 (1) IN GENERAL.—Not later than 30 days after

18 its members are appointed, the Authority shall ap19 point the Inspector General of the District of Colum20 bia pursuant to section 208(a)(1) of the District of

21 Columbia Procurement Practices Act of 1985 (as

22 amended by subsection (a)).

23 (2) TRANSITION RULE.—The term of service of

24 the individual serving as the Inspector General

25 under section 208(a) of the District of Columbia
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1 Procurement Practices Act of 1985 prior to the ap2 pointment of the Inspector General by the Authority

3 under section 208(a)(1) of such Act (as amended by

4 subsection (a)) shall expire upon the appointment of

5 the Inspector General by the Authority.

6 SEC. 304. COUNCIL APPROVAL OF CERTAIN CONTRACTS.

7 (a) IN GENERAL.—Section 451 of the District of Co8 lumbia Self-Government and Governmental Reorganiza9 tion Act (sec. 1–1130, D.C. Code) is amended—

10 (1) by amending the heading to read as follows:

11 ‘‘SPECIAL RULES REGARDING CERTAIN CONTRACTS’’;

12 (2) by striking ‘‘No contract’’ and inserting

13 ‘‘(a) CONTRACTS EXTENDING BEYOND ONE

14 YEAR.—No contract’’; and

15 (3) by adding at the end the following new sub16 section:

17 ‘‘(b) CONTRACTS EXCEEDING CERTAIN AMOUNT.—

18 ‘‘(1) IN GENERAL.—No contract involving ex19 penditures in excess of $1,000,000 during a 12-

20 month period may be made unless the Mayor sub21 mits the contract to the Council for its approval and

22 the Council approves the contract (in accordance

23 with criteria established by act of the Council).
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1 ‘‘(2) DEEMED APPROVAL.—For purposes of

2 paragraph (1), the Council shall be deemed to ap3 prove a contract if—

4 ‘‘(A) during the 10-day period beginning

5 on the date the Mayor submits the contract to

6 the Council, no member of the Council intro7 duces a resolution approving or disapproving

8 the contract; or

9 ‘‘(B) during the 45-calendar day period be10 ginning on the date the Mayor submits the con11 tract to the Council, the Council does not dis12 approve the contract.’’.

13 (b) CLERICAL AMENDMENT.—The table of contents

14 of the District of Columbia Self-Government and Govern15 mental Reorganization Act is amended by amending the

16 item relating to section 451 to read as follows:

‘‘Sec. 451. Special rules regarding certain contracts.’’.

17 (c) EFFECTIVE DATE.—The amendments made by

18 this section shall apply to contracts made on or after the

19 date of the enactment of this Act.

20 SEC. 305. DEFINITIONS.

21 In this Act, the following definitions apply:

22 (1) The term ‘‘Authority’’ means the District of

23 Columbia Financial Responsibility and Management

24 Assistance Authority established under section

25 101(a).
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1 (2) The term ‘‘Council’’ means the Council of

2 the District of Columbia.

3 (3) The term ‘‘control period’’ has the meaning

4 given such term in section 209.

5 (4) The term ‘‘control year’’ means any fiscal

6 year for which a financial plan and budget approved

7 by the Authority under section 202(b) is in effect,

8 and includes fiscal year 1996.

9 (5) The term ‘‘District government’’ means the

10 government of the District of Columbia, including

11 any department, agency or instrumentality of the

12 government of the District of Columbia; any inde13 pendent agency of the District of Columbia estab14 lished under part F of title IV of the District of Co15 lumbia Self-Government and Governmental Reorga16 nization Act or any other agency, board, or commis17 sion established by the Mayor or the Council; the

18 courts of the District of Columbia; the Council of

19 the District of Columbia; and any other agency, pub20 lic authority, or public benefit corporation which has

21 the authority to receive monies directly or indirectly

22 from the District of Columbia (other than monies re23 ceived from the sale of goods, the provision of serv24 ices, or the loaning of funds to the District of Co-
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1 lumbia), except that such term does not include the

2 Authority.

3 (6) The term ‘‘financial plan and budget’’

4 means a financial plan and budget described in sub5 title A of title II, and includes the budgets of the

6 District government for the fiscal years which are

7 subject to the financial plan and budget (as de8 scribed in section 201(b)).

9 (7) The term ‘‘Mayor’’ means the Mayor of the

10 District of Columbia.

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