I

103D CONGRESS

2D SESSION H. R. 4888

To amend the District of Columbia Self-Government and Governmental Reorganization Act to clarify the authority of the Council of the District

of Columbia to issue revenue bonds or other obligations to finance undertakings of certain District agencies or authorities and other qualified

applicants; to authorize the Council of the District of Columbia to delegate its authority to issue taxable and tax-exempt revenue bonds or

other obligations to any agency or instrumentality of the District government; to permit certain tax revenues of the District of Columbia to

be pledged to pay debt service on revenue bonds or other obligations

issued by such agency or instrumentality of the District government;

to authorize such agency or instrumentality of the District government

to expend such tax revenues without the requirement that such tax

revenues be appropriated by the District of Columbia and the Congress;

to provide that revenue bonds or other obligations issued by any such

agency or instrumentality of the District government shall not be considered general obligations of the District of Columbia for purposes of

calculating limitations on borrowing and spending by the District of

Columbia; and to authorize that District of Columbia acts pertaining

to general obligation bonds and revenue bonds become effective upon

enactment by the Council.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 2, 1994

Ms. NORTON introduced the following bill; which was referred to the

Committee on the District of Columbia

A BILL

To amend the District of Columbia Self-Government and

Governmental Reorganization Act to clarify the authority

of the Council of the District of Columbia to issue revenue bonds or other obligations to finance undertakings
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of certain District agencies or authorities and other

qualified applicants; to authorize the Council of the District of Columbia to delegate its authority to issue taxable and tax-exempt revenue bonds or other obligations

to any agency or instrumentality of the District government; to permit certain tax revenues of the District

of Columbia to be pledged to pay debt service on revenue

bonds or other obligations issued by such agency or

instrumentality of the District government; to authorize

such agency or instrumentality of the District government to expend such tax revenues without the requirement that such tax revenues be appropriated by the

District of Columbia and the Congress; to provide that

revenue bonds or other obligations issued by any such

agency or instrumentality of the District government

shall not be considered general obligations of the District

of Columbia for purposes of calculating limitations on

borrowing and spending by the District of Columbia;

and to authorize that District of Columbia acts pertaining to general obligation bonds and revenue bonds become effective upon enactment by the Council.

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; REFERENCES IN ACT.

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

5 ‘‘District of Columbia Government Revenue Bond Delega6 tion Authority Act of 1994’’.

7 (b) REFERENCES IN ACT.—Whenever in this Act an

8 amendment is expressed in terms of an amendment to,

9 or repeal of, a section or other provision, the reference
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1 shall be considered to be made to that section or other

2 provision of the District of Columbia Self-Government and

3 Governmental Reorganization Act.

4 SEC. 2. REVENUE BONDS AND OTHER OBLIGATIONS ON BE5 HALF OF DISTRICT ENTITIES AND OTHER

6 QUALIFIED APPLICANTS.

7 (a) AUTHORITY TO ISSUE BONDS.—Section

8 490(a)(1) (D.C. Code, sec. 47–334(a)(1)) is amended by

9 striking the first sentence and inserting the following:

10 ‘‘(a)(1) The Council may by act authorize the issu11 ance of revenue bonds, notes, or other obligations (includ12 ing refunding bonds, notes, or other obligations) to borrow

13 money to finance, to refinance, or to assist in the financing

14 or refinancing of undertakings by District agencies or au15 thorities which operate pursuant to any enterprise fund

16 and other qualified applicants in the areas of housing,

17 health facilities, transit and utility facilities, sports and

18 entertainment complexes, recreational facilities, parking

19 facilities and convention facilities, elementary, secondary,

20 college and university facilities, college and university pro21 grams which provide loans for the payment of educational

22 expenses for or on behalf of students, pollution control fa23 cilities, and industrial and commercial development.’’.

24 (b) PAYMENTS ON BONDS.—Section 490(a)(3) (D.C.

25 Code, sec. 47–334)(a)(3)) is amended by striking the sec-
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1 ond sentence and inserting the following: ‘‘Subject to sub2 section (c) of this section, any act of the Council authoriz3 ing the issuance of such bond, note, or other obligation

4 may provide for (A) the payments of such bond, note, or

5 other obligation from any available revenues, including en6 terprise fund revenues, assets, property, or designated

7 taxes and (B) the securing of such bond, note, or other

8 obligation by the mortgage of real property or the creation

9 of any security interest in available revenues, including en10 terprise fund revenues, assets, other property or des11 ignated taxes.’’.

12 (c) AUTHORIZATION TO DELEGATE AUTHORITY.—

13 Section 490 (D.C. Code, sec. 47–334) is amended by add14 ing a new subsection (h) as follows:

15 ‘‘(h)(1) The Council may delegate to any agency or

16 instrumentality of the District government established by

17 it (whether established before or after the date of the en18 actment of this subsection) the authority of the Council

19 under subsection (a) of this section to issue taxable or tax20 exempt revenue bonds, notes, or other obligations to bor21 row money to finance or assist in the financing of under22 takings in the areas specified in subsection (a) of this sec23 tion. The Council shall define for the purposes of this sub24 section what undertakings constitute undertakings in the

25 areas specified in subsection (a) of this section. An agency
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1 or instrumentality of the District government may exercise

2 authority delegated to it by the Council as described in

3 the first sentence of this paragraph (whether such delega4 tion is made before or after the date of the enactment

5 of this subsection) only in accordance with this subsection.

6 ‘‘(2) Revenue bonds, notes, or other obligations is7 sued by an agency or instrumentality of the District gov8 ernment under a delegation of authority described in para9 graph (1) of this subsection shall be issued by resolution

10 of that entity and any such resolution shall not be consid11 ered to be an act of the Council.

12 ‘‘(3) The fourth sentence of section 446 shall not

13 apply to—

14 ‘‘(A) any amount (including the amount of any

15 accrued interest or premium) obligated or expended

16 from the proceeds of the sale of any revenue bond,

17 note, or other obligation issued under paragraph (1)

18 of this subsection,

19 ‘‘(B) any amount obligated or expended for the

20 payment of the principal of, interest on, or any pre21 mium for any revenue bond, note, or other obligation

22 issued under paragraph (1) of this subsection, and

23 ‘‘(C) any amount obligated or expended to se24 cure any revenue bond, note, or other obligation is25 sued under paragraph (1) of this subsection.’’.
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1 SEC. 3. SECURITY INTERESTS IN CERTAIN DISTRICT REVE2 NUES.

3 (a) AUTHORIZATION TO CREATE SECURITY INTER4 EST.—Section 467 (D.C. Code, sec. 47–326.1) is amended

5 by adding a new subsection (a-1) thereto as follows:

6 ‘‘(a-1) Revenue bonds or other obligations issued by

7 an agency or instrumentality of the District government

8 pursuant to section 490(h) consistent with authority dele9 gated by the Council, may create a security interest in cer10 tain District revenues, including but not limited to des11 ignated taxes, as additional security for the payment of

12 bonds authorized by such act.’’.

13 (b) OBLIGATION OF THE DISTRICT.—Section 490(c)

14 (D.C. Code, sec. 47–334(c)) is amended to read as follows:

15 ‘‘(c) Except to the extend permitted by section 467(a16 1), any and all such revenue bonds, notes, or other obliga17 tions shall not be general obligations of the District and

18 shall not be a pledge of or involve the faith and credit

19 or taxing power of the District, and shall not constitute

20 a debt of the District, and shall not constitute lending of

21 the public credit for private undertakings as contained in

22 section 602(a)(2).’’.

23 SEC. 4. NO APPROPRIATION NECESSARY.

24 (a) Section 467(d) (D.C. Code, sec. 47–326.1(d)) is

25 amended to read as follows:
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1 ‘‘(d) The fourth sentence of section 446 shall not

2 apply to any obligation or expenditure of any District reve3 nues to secure any general obligation bond under sub4 section (a) of this section or any revenue bond or other

5 obligation under subsection (a-1) of this section.’’.

6 (b) The fourth sentence of section 446 (D.C. Code,

7 sec. 47–304) is amended as follows: ‘‘Except as provided

8 in section 467(d), section 471(c), section 472(d)(2), sec9 tion 483(d), and section 490(f), (g)(3), and (h)(3), no

10 amount may be obligated or expended by any officer or

11 employee of the District of Columbia government unless

12 such amount has been approved by Act of Congress, and

13 then only according to such Act.’’.

14 SEC. 5. EXCLUSION OF PLEDGED REVENUES.

15 Section 603(b)(3)(A) (D.C. Code, sec. 47–

16 313(b)(3)(A)) is amended by inserting the phrase ‘‘or se17 curing’’ after the word ‘‘servicing’’.

18 SEC. 6. CONGRESSIONAL AUTHORITY AND REVIEW.

19 (a)(1) Section 461 (D.C. Code, sec. 47–321) is

20 amended by adding a new subsection (c) as follows:

21 ‘‘(c) Notwithstanding section 602(c)(1) (D.C. Code,

22 sec. 1–233(c)(1)) any act of the Council authorizing the

23 issuance of general obligation bonds under subsection (a)

24 of this section may take effect on the date of enactment

25 of such act.’’.
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1 (2) Section 471 (D.C. Code, sec. 47–327) is amended

2 by adding a new subsection (b-1) as follows:

3 ‘‘(b-1) Notwithstanding section 602(c)(1) (D.C.

4 Code, sec. 1–233(c)(1)), any act of the Council authoriz5 ing the issuance of general obligation notes under sub6 section (a) of this section may take effect on the date of

7 the enactment of such act.’’.

8 (3) Section 490 (D.C. Code, sec. 47–334) is amended

9 by adding a new subsection (i) as follows:

10 ‘‘(i) Notwithstanding section 602(c)(1) (D.C. Code,

11 sec. 1–233(c)(1)), any act of the Council authorizing the

12 issuance of revenue bonds, notes, or other obligations

13 under subsection (a) of this section may take effect on

14 the date of enactment of such act.’’.

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