I

104TH CONGRESS

1ST SESSION H. R. 1509

To amend the District of Columbia Self-Government and Governmental Reorganization Act to permit certain tax revenues of the District of Columbia

to be pledged to pay debt service on obligations issued by an agency

or instrumentality of the District government to finance certain costs

of a downtown sports arena and convention center; 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

the 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 for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 7, 1995

Ms. NORTON (by request) introduced the following bill; which was referred to

the Committee on Government Reform and Oversight

A BILL

To amend the District of Columbia Self-Government and

Governmental Reorganization Act to permit certain tax

revenues of the District of Columbia to be pledged to

pay debt service on obligations issued by an agency or

instrumentality of the District government to finance

certain costs of a downtown sports arena and convention

center; to authorize such agency or instrumentality of

the District government to expend such tax revenues

without the requirement that such tax revenues be appro-
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priated by the District of Columbia and the Congress;

to provide that the 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 for

other purposes.

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

3 SECTION 1. SHORT TITLE; REFERENCES IN ACT.

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

5 ‘‘District of Columbia Government Downtown Sports

6 Arena and Convention Center Financing Act of 1995’’.

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

10 shall be considered to be made to that section or other

11 provision of the District of Columbia Self-Government and

12 Governmental Reorganization Act.

13 SEC. 2. AUTHORITY TO ISSUE OBLIGATIONS FOR DOWN14 TOWN SPORTS ARENA AND CONVENTION

15 CENTER.

16 (a) AUTHORITY TO ISSUE OBLIGATIONS.—Section

17 490(a) (D.C. Code, sec. 47–334(a)) is amended by adding

18 at the end the following new paragraph:

19 ‘‘(5)(A) An agency or instrumentality of the District

20 with the authority to issue by resolution bonds, notes or
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1 other obligations hereby is authorized to issue such bonds,

2 notes or other obligations to borrow money to finance, to

3 refinance or to assist in the undertaking of the develop4 ment, construction, and operation of a downtown sports

5 and entertainment complex and convention center.

6 ‘‘(B) Subject to subsection (c), any resolutions au7 thorizing the issuance of any bonds, notes or other obliga8 tions issued by such agency or instrumentality may pro9 vide for (i) the payment of such bond, note, or other obli10 gation from available revenues, including assets, property

11 or designated fees and taxes, and (ii) the securing of such

12 bond, note or other obligation by the mortgage of real

13 property or the creation of any security interest in avail14 able revenues, including assets, other property or des15 ignated fees and taxes.

16 ‘‘(C) The fourth sentence of section 446 shall not

17 apply to—

18 ‘‘(i) any amount (including the amount of any

19 accrued interest or premium) obligated or expended

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

21 note, or other obligation issued under subparagraph

22 (A),

23 ‘‘(ii) any amount obligated or expended for the

24 payment of the principal of, interest on, or any pre-
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1 mium for any revenue bond, note, or other obligation

2 issued under subparagraph (A), and

3 ‘‘(iii) any amount obligated or expended to se4 cure any revenue bond, note, or other obligation is5 sued under subparagraph (A).’’.

6 SEC. 3. SECURITY INTERESTS IN CERTAIN DISTRICT REVE7 NUES.

8 (a) AUTHORIZATION TO CREATE SECURITY INTER9 EST.—Section 467(a) (D.C. Code, sec. 47–326.1(a)) is

10 amended—

11 (1) by striking ‘‘(a)’’ and inserting ‘‘(a)(1)’’;

12 and

13 (2) by adding at the end the following new

14 paragraph:

15 ‘‘(2) Revenue bonds or other obligations issued by an

16 agency or instrumentality of the District government pur17 suant to section 490(a)(5)(A) may create a security inter18 est in certain District revenues, including, but not limited

19 to, designated taxes or fees, as additional security for the

20 payment of such obligations.’’.

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

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

23 ‘‘(c) Except to the extent permitted by section

24 467(a)(2), any and all such revenue bonds, notes, or other

25 obligations shall not be general obligations of the District
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1 and shall not be a pledge of or involve the faith and credit

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

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

4 the public credit for private undertakings as contained in

5 section 602(a)(2).’’.

6 SEC. 4. NO APPROPRIATION NECESSARY.

7 (a) IN GENERAL.—The fourth sentence of section

8 446 (D.C. Code, sec. 47–304) is amended to read as fol9 lows: ‘‘Except as provided in section 467(d), section

10 471(c), section 472(d)(2), section 483(d), and section

11 490(a)(5)(C), (f), and (g)(3), no amount may be obligated

12 or expended by any officer or employee of the District of

13 Columbia government unless such amount has been ap14 proved by Act of Congress, and then only according to

15 such Act.’’.

16 (b) CONFORMING AMENDMENT.—Section 467(d)

17 (D.C. Code, sec. 47–326.1(d)) is amended to read as fol18 lows:

19 ‘‘(d) The fourth sentence of section 446 shall not

20 apply to any obligation or expenditure of any District reve21 nues to secure any general obligation bond under sub22 section (a) or any revenue bond or other obligation under

23 subsection (e).’’.
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1 SEC. 5. EXCLUSION OF PLEDGED REVENUES FROM ANNUAL

2 AGGREGATE LIMIT ON BONDS.

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

4 313(b)(3)(A)) is amended by inserting ‘‘or establishing a

5 security interest in such bonds’’ after ‘‘bonds’’.

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