U.S. GOVERNMENT PRINTING OFFICE

82–984 WASHINGTON : 

" ! COMMITTEE PRINT 107TH CONGRESS

2d Session

2002

COMPILATION OF SELECTED FEDERAL ACTS

RELATING TO MUNICIPAL AFFAIRS OF

THE DISTRICT OF COLUMBIA

As Amended Through November 7, 2002

INCLUDING

DISTRICT OF COLUMBIA HOME RULE ACT

DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND

MANAGEMENT ASSISTANCE ACT OF 1995

DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

NATIONAL CAPITAL REVITALIZATION AND SELF-GOVERNMENT IMPROVEMENT ACT OF 1997

PREPARED FOR THE USE OF THE

COMMITTEE ON GOVERNMENT REFORM

HOUSE OF REPRESENTATIVES

NOVEMBER 2002

Printed for the use of the

Committee on Government Reform

Available via the World Wide Web: http://www.gpo.gov/congress/house

http://www.house.gov/reform

For sale by the Superintendent of Documents, U.S. Government Printing Office

Internet: http://bookstore.gpo.gov Phone: (202) 512–1800 Fax: (202) 512–2250

Mail: Stop SSOP, Washington, DC 20402–0001
COMMITTEE ON GOVERNMENT REFORM

DAN BURTON, Indiana, Chairman

BENJAMIN A. GILMAN, New York

CONSTANCE A. MORELLA, Maryland

CHRISTOPHER SHAYS, Connecticut

ILEANA ROS-LEHTINEN, Florida

JOHN M. MCHUGH, New York

STEPHEN HORN, California

JOHN L. MICA, Florida

THOMAS M. DAVIS, Virginia

MARK E. SOUDER, Indiana

STEVEN C. LATOURETTE, Ohio

BOB BARR, Georgia

DAN MILLER, Florida

DOUG OSE, California

RON LEWIS, Kentucky

JO ANN DAVIS, Virginia

TODD RUSSELL PLATTS, Pennsylvania

DAVE WELDON, Florida

CHRIS CANNON, Utah

ADAM H. PUTNAM, Florida

C.L. ‘‘BUTCH’’ OTTER, Idaho

EDWARD L. SCHROCK, Virginia

JOHN J. DUNCAN, JR., Tennessee

JOHN SULLIVAN, Oklahoma

HENRY A. WAXMAN, California

TOM LANTOS, California

MAJOR R. OWENS, New York

EDOLPHUS TOWNS, New York

PAUL E. KANJORSKI, Pennsylvania

CAROLYN B. MALONEY, New York

ELEANOR HOLMES NORTON, Washington,

DC

ELIJAH E. CUMMINGS, Maryland

DENNIS J. KUCINICH, Ohio

ROD R. BLAGOJEVICH, Illinois

DANNY K. DAVIS, Illinois

JOHN F. TIERNEY, Massachusetts

JIM TURNER, Texas

THOMAS H. ALLEN, Maine

JANICE D. SCHAKOWSKY, Illinois

WM. LACY CLAY, Missouri

DIANE E. WATSON, California

STEPHEN F. LYNCH, Massachusetts

(VACANCY)

———

BERNARD SANDERS, Vermont

(Independent)

KEVIN BINGER, Staff Director

DANIEL R. MOLL, Deputy Staff Director

JAMES C. WILSON, Chief Counsel

ROBERT A. BRIGGS, Chief Clerk

PHIL SCHILIRO, Minority Staff Director

SUBCOMMITTEE ON THE DISTRICT OF COLUMBIA

CONSTANCE A. MORELLA, Maryland, Chairwoman

TODD RUSSELL PLATTS, Pennsylvania

THOMAS M. DAVIS, Virginia

CHRISTOPHER SHAYS, Connecticut

ELEANOR HOLMES NORTON, Washington,

DC

DIANE E. WATSON, California

STEPHEN F. LYNCH, Massachusetts

RUSSELL A. SMITH, Staff Director

HEEA VAZIRANI-FALES, Deputy Staff Director and Counsel

ROBERT J. WHITE, Communications Director

SHALLEY KIM, Clerk

JON BOUKER, Minority Counsel

(II)
C O N T E N T S

Page

District of Columbia Home Rule Act ...................................................................... 1

District of Columbia Financial Responsibility and Management Assistance

Act of 1995 ............................................................................................................ 99

District of Columbia School Reform Act of 1995 ................................................... 163

National Capital Revitalization and Self-Government Improvement Act of

1997 ....................................................................................................................... 221

(III)

COMPILATION OF SELECTED ACTS — DISTRICT OF COLUMBIA
To use this index, bend the

publication over and locate the

desired section by following the

black markers.

District of Columbia Home Rule

Act

District of Columbia Financial

Responsibility and Management

Assistance Act of 1995

District of Columbia School Reform Act of 1995

National Capital Revitalization

and Self-Government Improvement Act of 1997
1

THE DISTRICT OF COLUMBIA HOME RULE ACT

3

THE DISTRICT OF COLUMBIA HOME RULE ACT

Public Law 93–198; 93rd Congress, S. 1435; December 24, 1973

AN ACT To reorganize the governmental structure of the District of Columbia, to

provide a charter for local government in the District of Columbia subject to acceptance by a majority of the registered qualified electors in the District of Columbia, to delegate certain legislative powers to the local government, to implement

certain recommendations of the Commission on the Organization of the Government of the District of Columbia, and for other purposes.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

TABLE OF CONTENTS

TITLE I—SHORT TITLE, PURPOSES, AND DEFINITIONS

Sec. 101. Short title.

Sec. 102. Statement of purposes.

Sec. 103. Definitions.

TITLE II—GOVERNMENTAL REORGANIZATION

Sec. 201. Redevelopment Land Agency.

Sec. 202. National Capital Housing Authority.

Sec. 203. National Capital Planning Commission and municipal planning.

Sec. 204. District of Columbia Manpower Administration.

TITLE III—DISTRICT CHARTER PREAMBLE, LEGISLATIVE POWER, AND

CHARTER AMENDING PROCEDURE

Sec. 301. District Charter preamble.

Sec. 302. Legislative power.

Sec. 303. Charter amending procedure.

TITLE IV—THE DISTRICT CHARTER

PART A—THE COUNCIL

Subpart 1—Creation of the Council

Sec. 401. Creation and membership.

Sec. 402. Qualifications for holding office.

Sec. 403. Compensation.

Sec. 404. Powers of the Council.

Subpart 2—Organization and Procedure of the Council

Sec. 411. The Chairman.

Sec. 412. Acts, resolutions, and requirements for quorum.

Sec. 413. Investigations by the Council.

PART B—THE MAYOR

Sec. 421. Election, qualifications, vacancy and compensation.

Sec. 422. Powers and duties.

Sec. 423. Municipal planning.

Sec. 424. Chief Financial Officer of the District of Columbia.

PART C—THE JUDICIARY

Sec. 431. Judicial powers.

Sec. 432. Removal, suspension, and involuntary retirement.
D.C. HOME RULE ACT 4

1Section 2(a) of Public Law 102–106 added a new sec. 453 without adding a corresponding

item to the table of contents.

Sec. 433. Nomination and appointment of judges.

Sec. 434. District of Columbia Judicial Nomination Commission.

PART D—DISTRICT BUDGET AND FINANCIAL MANAGEMENT

Subpart 1—Budget and Financial Management

Sec. 441. Fiscal year.

Sec. 442. Submission of annual budget.

Sec. 443. Multiyear plan.

Sec. 444. Multiyear capital improvements plan.

Sec. 445. District of Columbia courts’ budget.

Sec. 445A. Water and Sewer Authority budget.

Sec. 446. Enactment of appropriations by Congress.

Sec. 447. Consistency of budget, accounting, and personnel systems.

Sec. 448. Financial duties of the Mayor.

Sec. 449. Accounting supervision and control.

Sec. 450. General and special funds.

Sec. 450A. Reserve funds.

Sec. 450B. Comprehensive financial management policy.

Sec. 451. Special rules regarding certain contracts.

Sec. 452. Annual budget for the Board of Education.

Sec. 453. Reductions in budgets of independent agencies.1

Subpart 2—Audits and Accountability Requirements

Sec. 455. District of Columbia Auditor.

Sec. 456. Performance and financial accountability.

PART E—BORROWING

Subpart 1—Borrowing

Sec. 461. District’s authority to issue and redeem general obligation bonds for

capital projects.

Sec. 462. Contents of borrowing legislation and elections on issuing general

obligation bonds.

Sec. 463. Publication of borrowing legislation.

Sec. 464. Short period of limitation.

Sec. 465. Issuance of general obligation bonds.

Sec. 466. Public or private sale.

Sec. 467. Authority to create security interests in District revenues.

Subpart 2—Short-Term Borrowing

Sec. 471. Borrowing to meet appropriations.

Sec. 472. Borrowing in anticipation of revenues.

Sec. 473. Notes redeemable prior to maturity.

Sec. 474. Sales of notes.

Sec. 475. Bond anticipation notes.

Subpart 3—Payments of Bonds and Notes

Sec. 481. Speical tax.

Sec. 482. Full faith and credit of the District.

Sec. 483. Payment of general obligation bonds and notes.

Subpart 4—Full Faith and Credit of the United States

Sec. 484. Full faith and credit of the United States not pledged.

Subpart 5—Tax Exemption: Legal Investment; Water Pollution; Reservoirs; Metro

Contributions; and Revenue Bonds

Sec. 485. Tax exemption.

Sec. 486. Legal investment.

Sec. 487. Water pollution.

Sec. 488. Cost of reservoirs on Potomac River.

Sec. 489. District’s contributions to the Washington Metropolitan Area Transit

Authority.

Sec. 490. Revenue bonds and other obligations.
5 D.C. HOME RULE ACT

2 Section 4(c) of Public Law 93–268 struck section 741 without striking the corresponding item

in the table of contents.

PART F—INDEPENDENT AGENCIES

Sec. 491. Board of Elections.

Sec. 492. Zoning Commission.

Sec. 493. Public Service Commission.

Sec. 494. Armory Board.

Sec. 495. Board of Education.

øTITLE V—REPEALED¿

TITLE VI—RESERVATION OF CONGRESSIONAL AUTHORITY

Sec. 601. Retention of constitutional authority.

Sec. 602. Limitations on the Council.

Sec. 603. Budget process; limitations on borrowing and spending.

Sec. 604. Congressional action on certain District matters.

TITLE VII—REFERENDUM; SUCCESSION IN GOVERNMENT; TEMPORARY

PROVISIONS; MISCELLANEOUS; AMENDMENTS TO DISTRICT OF COLUMBIA ELECTION ACT; RULES OF CONSTRUCTION; AND EFFECTIVE DATES

PART A—CHARTER REFERENDUM

Sec. 701. Referendum.

Sec. 702. Board of Elections authority.

Sec. 703. Referendum ballot and notice of voting.

Sec. 704. Acceptance or nonacceptance of Charter.

PART B—SUCCESSION IN GOVERNMENT

Sec. 711. Abolishment of existing government and transfer of functions.

Sec. 712. Certain delegated functions and functions of certain agencies.

Sec. 713. Transfer of personnel, property, and funds.

Sec. 714. Existing statutes, regulations, and other actions.

Sec. 715. Pending actions and proceedings.

Sec. 716. Vacancies resulting from abolishment of offices of Commissioner and

Assistant to the Commissioner.

Sec. 717. Status of the District.

Sec. 718. Continuation of District of Columbia court system.

Sec. 719. Continuation of the Board of Education.

PART C—TEMPORARY PROVISIONS

Sec. 721. Powers of the President during transitional period.

Sec. 722. Reimbursable appropriations for the District.

Sec. 723. Interim loan authority.

Sec. 724. Political participation in certain elections first held under this Act.

PART D—MISCELLANEOUS

Sec. 731. Agreements with United States.

Sec. 732. Personal interest in contracts or transactions.

Sec. 733. Compensation from more than one source.

Sec. 734. Assistance of the United States Civil Service Commission in development

of District merit system.

Sec. 735. Revenue sharing restrictions.

Sec. 736. Independent audit.

Sec. 737. Adjustments.

Sec. 738. Advisory neighborhood councils.

Sec. 739. National Capital Service Area.

Sec. 740. Emergency control of police.

Sec. 741. Holding office in the District.2

Sec. 742. Open meetings.

Sec. 743. Termination of the District’s authority to borrow from the Treasury.

PART E—AMENDMENTS TO THE DISTRICT OF COLUMBIA ELECTION ACT

Sec. 751. Amendments.

Sec. 752. District Council authority over elections.

PART F—RULES OF CONSTRUCTION

Sec. 761. Construction.
Sec. 101 D.C. HOME RULE ACT 6

PART G—EFFECTIVE DATES

Sec. 771. Effective dates.

TITLE I—SHORT TITLE, PURPOSES, AND DEFINITIONS

SHORT TITLE

SEC. 101. This Act may be cited as the ‘‘District of Columbia

Home Rule Act’’.

STATEMENT OF PURPOSES

SEC. 102. (a) Subject to the retention by Congress of the ultimate legislative authority over the Nation’s Capital granted by article I, section 8, of the Constitution, the intent of Congress is to

delegate certain legislative powers to the government of the District of Columbia; authorize the election of certain local officials by

the registered qualified electors in the District of Columbia; grant

to the inhabitants of the District of Columbia powers of local selfgovernment; to modernize, reorganize, and otherwise improve the

governmental structure of the District of Columbia; and, to the

greatest extent possible, consistent with the constitutional mandate, relieve Congress of the burden of legislating upon essentially

local District matters.

(b) Congress further intends to implement certain recommendations of the Commission on the Organization of the Government of the District of Columbia and take certain other actions

irrespective of whether the charter for greater self-government provided for in title IV of this Act is accepted or rejected by the registered qualified electors of the District of Columbia.

DEFINITIONS

SEC. 103. For the purposes of this Act—

(1) The term ‘‘District’’ means the District of Columbia.

(2) The term ‘‘Council’’ means the Council of the District

of Columbia provided for by part A of title IV.

(3) The term ‘‘Commissioner’’ means the Commissioner of

the District of Columbia established under Reorganization

Plan Numbered 3 of 1967.

(4) The term ‘‘District of Columbia Council’’ means the

Council of the District of Columbia established under Reorganization Plan Numbered 3 of 1967.

(5) The term ‘‘Chairman’’ means, unless otherwise provided in this Act, the Chairman of the Council provided for by

part A of title IV.

(6) The term ‘‘Mayor’’ means the Mayor provided for by

part B of title IV.

(7) The term ‘‘act’’ includes any legislation passed by the

Council, except where the term ‘‘Act’’ is used to refer to this

Act or other Acts of Congress herein specified.

(8) The term ‘‘capital project’’ means any physical public

betterment or improvement, the acquisition of property of a

permanent nature, or the purchase of equipment or furnishings, and includes (A) costs of any preliminary plans, studies, and surveys in connection with such betterment, improvement, acquisition, or purchase, (B) costs incidental to such bet-
7 Sec. 201 D.C. HOME RULE ACT

terment, improvement, acquisition, or purchase, and the financing thereof, including the cost of any election, professional

fees, printing or engraving, production and reproduction of documents, publication of notices, taking of title, bond insurance,

and interest during construction, and (C) the reimbursement of

any fund or account for amounts expended for the payment of

any such costs.

(9) The term ‘‘pending’’, when applied to any capital

project, means authorized but not yet completed.

(10) The term ‘‘District revenues’’ means all funds derived

from taxes, fees, charges, miscellaneous receipts, grants and

other forms of financial assistance, or the sale of bonds, notes,

or other obligations, and any funds administered by the District government under cost sharing arrangements.

(11) The term ‘‘election’’, unless the context otherwise provides, means an election held pursuant to the provisions of this

Act.

(12) The terms ‘‘publish’’ and ‘‘publication’’, unless otherwise specifically provided herein, mean publication in a newspaper of general circulation in the District.

(13) The term ‘‘District of Columbia courts’’ means the Superior Court of the District of Columbia and the District of Columbia Court of Appeals.

(14) The term ‘‘resources’’ means revenues, balances, enterprise or other revolving funds, and funds realized from borrowing.

(15) The term ‘‘budget’’ means the entire request for appropriations or loan or spending authority for all activities of all

departments or agencies of the District of Columbia financed

from all existing, proposed or anticipated resources, and shall

include both operating and capital expenditures.

TITLE II—GOVERNMENTAL REORGANIZATION

REDEVELOPMENT LAND AGENCY

SEC. 201. The District of Columbia Redevelopment Act of 1945

(D.C. Code, secs. 5–701—5–719) is amended as follows:

(a) Subsection (a) of section 4 of such Act (D.C. Code, sec. 5–

703(a)) is amended to read as follows:

‘‘(a) The District of Columbia Redevelopment Land Agency is

hereby established as an instrumentality of the District of Columbia government, and shall be composed of five members appointed

by the Commissioner of the District of Columbia (hereinafter referred to as the ‘Commissioner’), with the advice and consent of the

Council of the District of Columbia (hereinafter referred to as the

‘Council’). The Commissioner shall name one member as chairman.

No more than two members may be officers of the District of Columbia government. Each member shall serve for a term of five

years except that of the members first appointed under this section, one shall serve for a term of one year, one shall serve for a

term of two years, one shall serve for a term of three years, one

shall serve for a term of four years, and one shall serve for a term

of five years, designated by the Commissioner. The terms of the

members first appointed under this section shall begin on or after

January 2, 1975. Should any member who is an officer of the Dis-
Sec. 201 D.C. HOME RULE ACT 8

trict of Columbia government cease to be such an officer, then his

term as a member shall end on the day he ceases to be such an

officer. Any person appointed to fill a vacancy in the Agency shall

be appointed to serve for the remainder of the term during which

such vacancy arose. Any member who holds no other salaried public position shall receive compensation at the rate of $100 for each

day such member is engaged in the actual performance of duties

vested in the agency.’’

(b) Subsection (b) of section 4 of such Act (D.C. Code, sec. 5–

703(b)) is amended—

(1) by inserting after ‘‘forth’’ at the end of the first sentence of such section ‘‘, except that nothing in this section shall

prohibit the District of Columbia government from dissolving

the corporation, eliminating the board of directors, or taking

such other action with respect to the powers and duties of such

Agency, including those actions specified in subsection (c), as

is deemed necessary and appropriate’’, and

(2) by striking out in the second sentence ‘‘including the

selection of its chairman and other officers,’’ and inserting in

lieu thereof ‘‘including the selection of officers other than its

chairman,’’.

(c) Section 4 of such Act is amended by adding at the end

thereof the following new subsection:

‘‘(c) The Council is authorized, by act, to adopt legislation—

‘‘(1) establishing, for the purpose of assuring uniform procedures relating to the disposition of complaints and other

claims involving the Redevelopment Land Agency (or its successor) and other administrative units of the District of Columbia government, a fact finding board to receive, hear, and act

on such complaints and claims arising out of or in connection

with administrative and other actions of such Agency or units

in carrying out their powers and functions;

‘‘(2) providing that all planning, designing, construction,

and supervision of public facilities which are to be contributed

to any redevelopment area as the local non-cash grant-in-aid to

the project under title I of the Housing Act of 1949, shall, to

the extent practicable, be carried out by an appropriate District of Columbia department or agency on the basis of a contractual or other arrangement with the Redevelopment Land

Agency or its successor;

‘‘(3) providing that any occupied rental property owned by

the Agency shall be maintained by such Agency (or its successor) in a safe and sanitary condition; or

‘‘(4) providing that the Commissioner shall have authority

to waive all or any part of any special assessments levied

against abutting property owners for the cost of sewers,

streets, curbs, gutters, sidewalks, utilities, and other supporting facilities or project improvements where the costs

therefore to the District of Columbia can be applied as a noncash local grant-in-aid, as defined by the Secretary of the Department of Housing and Urban Development.’’.

(d) The first sentence of subsection (b) of section 5 of such Act

(D.C. Code, sec. 5–704(b)) is amended to read as follows ‘‘Condemnation proceedings for the acquisition of real property for said
9 Sec. 203 D.C. HOME RULE ACT

purposes shall be conducted in accordance with subchapter II of

chapter 13 of title 16 of the District of Columbia Code.’’.

(e) None of the amendments contained in this section shall be

construed to affect the eligibility of the District of Columbia Redevelopment Land Agency to continue participation in the small business procurement programs under section 8(a) of the Small Business Act (67 Stat. 547).

(f) For the purposes of subsection 713(d), employees in the District of Columbia Redevelopment Land Agency shall be deemed to

be transferred to the District of Columbia as of the effective date

of this title without a break in service.

NATIONAL CAPITAL HOUSING AUTHORITY

SEC. 202. (a) The National Capital Housing Authority (hereinafter referred to as the ‘‘Authority’’) established under the District

of Columbia Alley Dwelling Act (D.C. Code, secs. 5–103—5–116)

shall be an agency of the District of Columbia government subject

to the organizational and reorganizational powers specified in sections 404(b) and 422(12) of this Act.

(b) All functions, powers, and duties of the President under the

District of Columbia Alley Dwelling Act shall be vested in and exercised by the Commissioner. All employees, property (real and personal), and unexpended balances (available or to be made available) of appropriations, allocations, and all other funds, and assets

and liabilities of the Authority are authorized to be transferred to

the District of Columbia government.

NATIONAL CAPITAL PLANNING COMMISSION AND MUNICIPAL PLANNING

SEC. 203. (a) Subsections (a) and (b) of section 2 of the Act entitled ‘‘An Act providing for a comprehensive development of the

park and playground system of the National Capital’’, approved

June 6, 1924 (D.C. Code, sec. 1–1002), are amended to read as follows:

‘‘(a)(1) The National Capital Planning Commission (hereinafter

referred to as the ‘Commission’) is created as the central Federal

planning agency for the Federal Government in the National Capital, and to preserve the important historical and natural features

thereof, except with respect to the United States Capitol buildings

and grounds as defined in sections 1 and 16 of the Act of July 31,

1946 (40 U.S.C. 193a, 193m), and to any extension thereof or additions thereto, or to buildings and grounds under the care of the Architect of the Capitol.

‘‘(2) The Commissioner of the District of Columbia (hereinafter

referred to as the ‘Commissioner’) shall be the central planning

agency for the government of the District of Columbia (hereinafter

referred to as the ‘District’) in the National Capital. The Commissioner shall be responsible for coordinating the planning activities

of the District government and for preparing and implementing the

District elements of the comprehensive plan for the National Capital, which may include land use elements, urban renewal and redevelopment elements, a multi-year program of public works for

the District, and physical, social, economic, transportation, and

population elements. The Commissioner’s planning responsibility

shall not extend to Federal or international projects and develop-
Sec. 203 D.C. HOME RULE ACT 10

ments in the District, as determined by the Commission, or to the

United States Capitol buildings and grounds as defined in sections

1 and 16 of the Act of July 31, 1946 (40 U.S.C. 193a, 193m), or to

any extension thereof or additions thereto, or to buildings and

grounds under the care of the Architect of the Capitol. In carrying

out his responsibility under this section, the Commissioner shall

establish procedures for citizen participation in the planning process, and for appropriate meaningful consultation with any State or

local government or planning agency in the National Capital region

affected by any aspect of a comprehensive plan (including amendments thereto) affecting or relating to the District.

‘‘(3) The Commissioner shall submit each District element of

the comprehensive plan and any amendment thereto, to the Council for revision or modification, and adoption, by act, following public hearings. Following adoption and prior to implementation, the

Council shall submit each such element or amendment to the Commission for review and comment with regard to the impact of such

element or amendment on the interests or functions of the Federal

Establishment in the National Capital.

‘‘(4)(A) The Commission shall, within sixty days after receipt of

such a District element of the comprehensive plan, or amendment

thereto, from the Council, certify to the Council whether such element or amendment has a negative impact on the interests or functions of the Federal Establishment in the National Capital. If within such sixty days the Commission takes no action with respect to

such element or amendment, such element or amendment shall be

deemed to have no such negative impact, and such element or

amendment shall be incorporated into the comprehensive plan for

the National Capital and shall be implemented.

‘‘(B) If the Commission finds, within such sixty days, such negative impact, it shall certify its findings and recommendations with

respect to such negative impact to the Council. Upon receipt of the

Commission’s findings and recommendations, the Council may—

‘‘(i) reject such findings and recommendations and resubmit such element or amendment, in a modified form, to the

Commission for reconsideration; or

‘‘(ii) accept such findings and recommendations and modify

such element or amendment accordingly.

If the Council accepts such findings and recommendations and

modifies such element or amendment under clause (ii), the Council

shall submit such element or amendment to the Commission for it

to determine whether such modification has been made in accordance with the Commission’s findings and recommendations. If,

within thirty days after receipt of the modified element or amendment, the Commission takes no action with respect to such element

or amendment, it shall be deemed to have been modified in accordance with such findings or recommendations, and shall be incorporated into the comprehensive plan for the National Capital and

shall be implemented. If within such thirty days, the Commission

again determines such element or amendment to have a negative

impact on the functions or interests of the Federal Establishment

in the National Capital such element or amendment shall not be

implemented.

‘‘(C) If the Council rejects the findings and recommendations of

the Commission and resubmits a modified element or amendment
11 Sec. 203 D.C. HOME RULE ACT

to it under clause (i), the Commission shall, within sixty days after

receipt of such modified element or amendment from the Council,

determine whether such modified element or amendment has a

negative impact on the interests or functions of the Federal Establishment within the National Capital. If the Commission finds such

negative impact it shall certify its findings (in sufficient detail that

the Council can understand the basis of the objection of the Commission) and recommendations to the Council, and such element or

amendment shall not be implemented. If the Commission takes no

action with respect to such modified element or amendment within

such sixty days, such modified element or amendment shall be

deemed to have no such negative impact and shall be incorporated

into the comprehensive plan and it shall be implemented. Any element or amendment which the Commission has determined to have

a negative impact on the Federal Establishment in the National

Capital, and which is submitted again in a modified form not less

than one year from the day it was last rejected by the Commission

shall be deemed to be a new element or amendment for purposes

of the review procedure specified in this section.

‘‘(D) The Commission and the Commissioner shall jointly publish, from time to time as appropriate, a comprehensive plan for

the National Capital, consisting of the elements of the comprehensive plan for the Federal activities in the National Capital developed by the Commission, and the District elements developed by

the Commissioner and the Council in accordance with the provisions of this section.

‘‘(E) The Council may grant, upon request made to it by the

Commission, an extension of any time limitation contained in this

section.

‘‘(F) The Commission and the Commissioner shall jointly establish procedures for appropriate meaningful continuing consultation

throughout the planning process for the National Capital.

‘‘(b) The National Capital Planning Commission shall be composed of—

‘‘(1) ex officio, the Secretary of the Interior, the Secretary

of Defense, the Administrator of the General Services Administration, the Commissioner, the Chairman of the District of Columbia Council, and the chairmen of the Committees on the

District of Columbia of the Senate and the House of Representatives, or such alternates as each such person may from time

to time designate to serve in his stead, and in addition,

‘‘(2) five citizens with experience in city or regional planning, three of whom shall be appointed by the President and

two of whom shall be appointed by the Commissioner. The citizen members appointed by the Commissioner shall be bona

fide residents of the District of Columbia and of the three appointed by the President at least one shall be a bona fide resident of Virginia and at least one shall be a bona fide resident

of Maryland. The terms of office of members appointed by the

President shall be for six years, except that of the members

first appointed, the President shall designate one to serve two

years and one to serve four years. Members appointed by the

Commissioner shall serve for four years. The members first appointed under this section shall assume their office on January

2, 1975. Any person appointed to fill a vacancy shall be ap-
Sec. 203 D.C. HOME RULE ACT 12

3Margin as in original law.

pointed only for the unexpired term of the member whom he

shall succeed. The citizen members shall each receive compensation at the rate of $100 for each day such member is engaged in the actual performance of duties vested in the Commission in addition to reimbursement for necessary expenses

incurred by them in the performance of such duties.’’.

(b) Subsection (e) of section 2 of such Act of June 6, 1924 (D.C.

Code, sec. 1–1002(e), is amended by (1) inserting ‘‘Federal activities

in the’’ immediately before ‘‘National Capital’’ in clause (1); and (2)

striking out ‘‘and District Governments,’’ and inserting in lieu

thereof ‘‘government’’ in clause (2).

(c) Section 4 of such Act of June 6, 1924 (D.C. Code, sec. 1–

1004), is amended as follows:

(1) 3 The first sentence of subsection (a) of such section is

amended to read as follows: ‘‘The Commission is hereby charged

with the duty of preparing and adopting a comprehensive, consistent, and coordinated plan for the National Capital, which plan

shall include the Commission’s recommendations or proposals for

Federal developments or projects in the environs, and those District elements, or amendments thereto, of the comprehensive plan

adopted by the Council and with respect to which the Commission

has not determined a negative impact to exist, which elements or

amendments shall be incorporated into such comprehensive plan

without change.’’.

(2) 3 The third sentence of subsection (a) of such section is

amended by striking out ‘‘within the District of Columbia’’ and ‘‘or

District’’.

(3) Subsections (b) and (c) of such section are repealed.

(d) Section 5 of such Act of June 6, 1924 (D.C. Code, sec. 1–

1005), is amended as follows:

(1) 3 Subsection (c) of such section is amended to read as follows:

‘‘(c) The provisions of section 16 of the Act approved June 20,

1938 (D.C. Code, sec. 5–428), are extended to include public buildings erected by any agency of the Government of the District of Columbia within the boundaries of the central area of the District, as

such central area may be defined and from time to time redefined

by concurrent action of the Commission and the Council, except

that the Commission shall transmit its approval or disapproval respecting any such building within thirty days after the day it was

submitted to the Commission.’’.

(2) 3 The first and second sentences of subsection (e) of such

section are amended to read as follows: ‘‘It is the intent of this section to obtain cooperation and correlation of effort between the various agencies of the Federal Government which are responsible for

public developments and projects, including the acquisition of land.

These agencies, therefore, shall look to the Commission and utilize

it as the central planning agency for the Federal activities in the

National Capital region.’’.

(e) Section 6 of such Act (D.C. Code, sec. 1–1006) is repealed.

(f) Section 7 of such Act (D.C. Code, sec. 1–1007) is amended

to read as follows:
13 Sec. 204 D.C. HOME RULE ACT

‘‘SEC. 7. (a) The Commission shall recommend a six-year program of public works projects for the Federal Government which it

shall review annually with the agencies concerned. To this end,

each Federal agency shall submit to the Commission in the first

quarter of each fiscal year a copy of its advance program of capital

improvements within the National Capital and its environs.

‘‘(b) The Commissioner shall submit to the Commission, by

February 1 of each year, a copy of the multiyear capital improvements plan for the District developed by him under section 444 of

the District of Columbia Self-Government and Governmental Reorganization Act. The Commission shall have thirty days within

which to comment upon such plan but shall have no authority to

change or disapprove of such plan.’’

(g) The first sentence of subsection (a) of section 8 of such Act

of June 6, 1924 (D.C. Code, sec. 1–1008(a)), is amended to read as

follows: ‘‘The Commission may make a report and recommendation

to the Zoning Commission of the District of Columbia, as provided

in section 5 of the Act of March 1, 1920 (D.C. Code, sec. 5–417),

on proposed amendments of the zoning regulations and maps as to

the relation, conformity, or consistency of such amendments with

the comprehensive plan for the National Capital.’’

DISTRICT OF COLUMBIA MANPOWER ADMINISTRATION

SEC. 204. (a) All functions of the Secretary of Labor (hereafter

in this section referred to as the ‘‘Secretary’’) under section 3 of the

Act entitled ‘‘An Act to provide for the establishment of a national

employment system and for cooperation with the States in the promotion of such system, and for other purposes’’, approved June 6,

1933 (29 U.S.C. 49–49k), with respect to the maintenance of a public employment service for the District, are transferred to the Commissioner. After the effective date of this transfer, the Secretary

shall maintain with the District the same relationship with respect

to a public employment service in the District, including the financing of such service, as he has with the States (with respect to a

public employment service in the States) generally.

(b) The Commissioner is authorized and directed to establish

and administer a public employment service in the District and to

that end he shall have all necessary powers to cooperate with the

Secretary in the same manner as a State under the Act of June 6,

1933, specified in subsection (a).

(c)(1) Section 3(a) of the Act entitled ‘‘An Act to provide for the

establishment of a national employment system and for cooperation

with the States in the promotion of such system, and for other purposes’’, approved June 6, 1933 (29 U.S.C. 49b(a)), is amended by

striking out ‘‘to maintain a public employment service for the District of Columbia’’.

(2) Section 3(b) of such Act (29 U.S.C. 49b(b)) is amended by

inserting ‘‘the District of Columbia,’’ immediately after ‘‘Guam,’’.

(d) All functions of the Secretary and of the Director of Apprenticeship under the Act entitled ‘‘An Act to provide for voluntary apprenticeship in the District of Columbia’’, approved May 20, 1946

(D.C. Code, secs. 36–121—36–133), are transferred to and shall be

exercised by the Commissioner. The office of Director of Apprenticeship provided for in section 3 of such Act (D.C. Code, sec. 36–

123) is abolished.
Sec. 301 D.C. HOME RULE ACT 14

(e) All functions of the Secretary under chapter 81 of title 5 of

the United States Code, with respect to the processing of claims

filed by employees of the government of the District for compensation for work injuries, are transferred to and shall be exercised by

the Commissioner, effective the day after the day on which the District establishes an independent personnel system or systems.

(f) So much of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, held, used, available, or to be made available in connection

with functions transferred to the Commissioner by the provisions

of this section, as the Director of the Federal Office of Management

and Budget shall determine, are authorized to be transferred from

the Secretary to the Commissioner.

(g) Any employee in the competitive service of the United

States transferred to the government of the District under the provisions of this section shall retain all the rights, benefits, and privileges pertaining thereto held prior to such transfer.

(h) The first section of the Act of August 16, 1937 (29 U.S.C.

50 et seq.) (relating to the welfare of apprentices), is amended by

inserting at the end thereof ‘‘For the purposes of this Act the term

‘State’ shall include the District of Columbia.’’.

TITLE III—DISTRICT CHARTER PREAMBLE, LEGISLATIVE

POWER, AND CHARTER AMENDING PROCEDURE

DISTRICT CHARTER PREAMBLE

SEC. 301. The charter for the District of Columbia set forth in

title IV shall establish the means of governance of the District following its acceptance by a majority of the registered qualified electors of the District voting thereon in the charter referendum held

with respect thereto.

LEGISLATIVE POWER

SEC. 302. Except as provided in sections 601, 602, and 603, the

legislative power of the District shall extend to all rightful subjects

of legislation within the District consistent with the Constitution of

the United States and the provisions of this Act subject to all the

restrictions and limitations imposed upon the States by the tenth

section of the first article of the Constitution of the United States.

CHARTER AMENDING PROCEDURE

SEC. 303. (a) The charter set forth in title IV (including any

provision of law amended by such title), except sections 401(a) and

421(a), and part C of such title, may be amended by an act passed

by the Council and ratified by a majority of the registered qualified

electors of the District voting in the referendum held for such ratification. The Chairman of the Council shall submit all such acts to

the Speaker of the House of Representatives and the President of

the Senate on the day the Board of Elections certifies that such act

was ratified by a majority of the registered qualified electors voting

thereon in such referendum.

(b) An amendment to the charter ratified by the registered

electors shall take effect upon the expiration of the 35-calendar-day

period (excluding Saturday, Sundays, holidays, and days on which
15 Sec. 401 D.C. HOME RULE ACT

either House of Congress is not in session) following the date such

amendment was submitted to the Congress, or upon the date prescribed by such amendment, whichever is later, unless during such

35-day period, there has been enacted into law a joint resolution,

in accordance with the procedures specified in section 604 of this

Act, disapproving such amendment. In any case in which any such

joint resolution disapproving such an amendment has, within such

35-day period, passed both Houses of Congress and has been transmitted to the President, such resolution, upon becoming law subsequent to the expiration of such 35-day period, shall be deemed to

have repealed such amendment, as of the date such resolution becomes law.

(c) The Board of Elections shall prescribe such rules as are necessary with respect to the distribution and signing of petitions and

the holding of elections for ratifying amendments to title IV of this

Act according to the procedures specified in subsection (a).

(d) The amending procedure provided in this section may not

be used to enact any law or affect any law with respect to which

the Council may not enact any act, resolution, or rule under the

limitations specified in sections 601, 602, and 603.

TITLE IV—THE DISTRICT CHARTER

PART A—THE COUNCIL

Subpart 1—Creation of the Council

CREATION AND MEMBERSHIP

SEC. 401. (a) There is established a Council of the District of

Columbia; and the members of the Council shall be elected by the

registered qualified electors of the District.

(b)(1) The Council established under subsection (a) shall consist of thirteen members elected on a partisan basis. The Chairman

and four members shall be elected at large in the District, and

eight members shall be elected one each from the eight election

wards established, from time to time, under the District of Columbia Election Act. The term of office of the members of the Council

shall be four years except as provided in paragraph (3), and shall

begin at noon on January 2 of the year following their election.

(2) In the case of the first election held for the office of members of the Council after the effective date of this title, not more

than two of the at-large members (excluding the Chairman) shall

be nominated by the same political party. Thereafter, a political

party may nominate a number of candidates for the office of atlarge member of the Council equal to one less than the total number of at-large members (excluding the Chairman) to be elected in

such election.

(3) To fill a vacancy in the Office of Chairman, the Board of

Elections shall hold a special election in the District on the first

Tuesday occurring more than one hundred and fourteen days after

the date on which such vacancy occurs, unless the Board of Elections determines that such vacancy could be more practicably filled

in a special election held on the same day as the next general election to be held in the District occurring within sixty days of the

date on which a special election would otherwise have been held
Sec. 401 D.C. HOME RULE ACT 16

under the provisions of this paragraph. The person elected Chairman to fill a vacancy in the Office of Chairman shall take office on

the day in which the Board of Elections certifies his election, and

shall serve as Chairman only for the remainder of the term during

which such vacancy occurred. When the Office of Chairman becomes vacant, the Council shall select one of the elected at-large

members of the Council to serve as Chairman and one to serve as

Chairman pro tempore until the election of a new Chairman.

(4) Of the members first elected after the effective date of this

title, the Chairman and two members elected at-large and four of

the members elected from election wards shall serve for four-year

terms; and two of the at-large members and four of the members

elected from election wards shall serve for two-year terms. The

members to serve the four-year terms and the members to serve

the two-year terms shall be determined by the Board of Elections

by lot, except that not more than one of the at-large members nominated by any political party shall serve for any such four-year

term.

(c) The Council may establish and select such other officers

and employees as it deems necessary and appropriate to carry out

the functions of the Council.

(d)(1) In the event of a vacancy in the Council of a member

elected from a ward, the Board of Elections shall hold a special

election in such ward to fill such vacancy on the first Tuesday occurring more than one hundred and fourteen days after the date

on which such vacancy occurs, unless the Board of Elections determines that such vacancy could be more practicably filled in a special election held on the same day as the next general election to

be held in the District occurring within sixty days of the date on

which a special election would otherwise have been held under the

provisions of this subsection. The person elected as a member to fill

a vacancy on the Council shall take office on the day on which the

Board of Elections certifies his election, and shall serve as a member of the Council only for the remainder of the term during which

such vacancy occurred.

(2) In the event of a vacancy in the office of Mayor, and if the

Chairman becomes a candidate for the office of Mayor to fill such

vacancy, the office of Chairman shall be deemed vacant as of the

date of the filing of his candidacy. In the event of a vacancy in the

Council of a member elected at large, other than a vacancy in the

office of Chairman, who is affiliated with a political party, the central committee of such political party shall appoint a person to fill

such vacancy, until the Board of Elections can hold a special election to fill such vacancy, and such special election shall be held on

the first Tuesday occurring more than one hundred and fourteen

days after the date on which such vacancy occurs unless the Board

of Elections determines that such vacancy could be more practicably filled in a special election held on the same day as the next

general election to be held in the District occurring within sixty

days of the date on which a special election would otherwise be

held under the provision of this subsection. The person appointed

to fill such vacancy shall take office on the date of his appointment

and shall serve as a member of the Council until the day on which

the Board certifies the election of the member elected to fill such

vacancy in either a special election or a general election. The per-
17 Sec. 403 D.C. HOME RULE ACT

son elected as a member to fill such a vacancy on the Council shall

take office on the day on which the Board of Elections certifies his

election, and shall serve as a member of the Council only for the

remainder of the term during which such vacancy occurred. With

respect to a vacancy on the Council of a member elected at large

who is not affiliated with any political party, the Council shall appoint a similarly nonaffiliated person to fill such vacancy until such

vacancy can be filled in a special election in the manner prescribed

in this paragraph. Such person appointed by the Council shall take

office and serve as a member at the same time and for the same

term as a member appointed by a central committee of a political

party.

(3) Notwithstanding any other provision of this section, at no

time shall there be more than three members (including the Chairman) serving at large on the Council who are affiliated with the

same political party.

QUALIFICATIONS FOR HOLDING OFFICE

SEC. 402. No person shall hold the office of member of the

Council, including the office of Chairman, unless he (a) is a qualified elector, (b) is domiciled in the District and if he is nominated

for election from a particular ward, resides in the ward from which

he is nominated, (c) has resided and been domiciled in the District

for one year immediately preceding the day on which the general

or special election for such office is to be held, and (d) holds no public office (other than his employment in and position as a member

of the Council), for which he is compensated in an amount in excess of his actual expenses in connection therewith, except that

nothing in this clause shall prohibit any such person, while a member of the Council, from serving as a delegate or alternate delegate

to a convention of a political party nominating candidates for President and Vice President of the United States, or from holding an

appointment in a Reserve component of an armed force of the

United States other than a member serving on active duty under

a call for more than thirty days. A member of the Council shall forfeit his office upon failure to maintain the qualifications required

by this section, and, in the case of the Chairman, section 403(e).

COMPENSATION

SEC. 403. (a) Each member of the Council shall receive compensation, payable in periodic installments, at a rate equal to the

maximum rate as may be established from time to time for grade

12 of the General Schedule under section 5332 of title 5 of the

Unite States Code. On and after the end of the two-year period beginning on the day the members of the Council first elected under

this Act take office, the Council may, by act, increase or decrease

such rate of compensation. Such change in compensation, upon enactment by the Council in accordance with the provisions of this

Act, shall apply with respect to the term of members of the Council

beginning after the date of enactment of such change.

(b) All members of the Council shall receive additional allowances for actual and necessary expenses incurred in the performance of their duties of office as may be approved by the Council.
Sec. 404 D.C. HOME RULE ACT 18

(c) The Chairman shall not engage in any employment (whether as an employee or as a self-employed individual) or hold any position (other than his position as Chairman), for which he is compensated in an amount in excess of his actual expenses in connection therewith.

(d) Notwithstanding subsection (a), as of the effective date of

the District of Columbia Appropriations Act, 2001, the Chairman

shall receive compensation, payable in equal installments, at a rate

equal to $10,000 less than the annual compensation of the Mayor.

POWERS OF THE COUNCIL

SEC. 404. (a) Subject to to the limitations specified in title VI

of this Act, the legislative power granted to the District by this Act

is vested in and shall be exercised by the Council in accordance

with this Act. In addition, except as otherwise provided in this Act,

all functions granted to or imposed upon, or vested in or transferred to the District of Columbia Council, as established by Reorganization Plan Numbered 3 of 1967, shall be carried out by the

Council in accordance with the provisions of this Act.

(b) The Council shall have authority to create, abolish, or organize any office, agency, department, or instrumentality of the government of the District and to define the powers, duties, and responsibilities of any such office, agency, department, or instrumentality.

(c) The Council shall adopt and publish rules of procedure

which shall include provisions for adequate public notification of intended actions of the Council.

(d) Every act shall be published and codified upon becoming

law as the Council may direct.

(e) An act passed by the Council shall be presented by the

Chairman of the Council to the Mayor, who shall, within ten calendar days (excluding Saturdays, Sundays, and holidays) after the

act is presented to him, either approve or disapprove such act. If

the Mayor shall approve such act, he shall indicate the same by

affixing his signature thereto, and such act shall become law subject to the provisions of section 602(c). If the Mayor shall disapprove such act, he shall, within ten calendar days (excluding Saturdays, Sundays, and holidays) after it is presented to him, return

such act to the Council setting forth in writing his reasons for such

disapproval. If any act so passed shall not be returned to the Council by the Mayor within ten calendar days after it shall have been

presented to him, the Mayor shall be deemed to have approved it,

and such act shall become law subject to the provisions of section

602(c) unless the Council by a recess of 10 days or more prevents

its return, in which case it shall not become law. If, within thirty

calendar days after an act has been timely returned by the Mayor

to the Council with his disapproval, two-thirds of the members of

the Council present and voting vote to reenact such act, the act so

reenacted shall become law subject to the provisions of section

602(c).

(f) In the case of any budget act adopted by the Council pursuant to section 446 of this Act and submitted to the Mayor in accordance with subsection (e) of this section, the Mayor shall have

power to disapprove any items or provisions, or both, of such act

and approve the remainder. In any case in which the Mayor so dis-
19 Sec. 412 D.C. HOME RULE ACT

approves of any item or provision, he shall append to the act when

he signs it a statement of the item or provision which he disapproves, and shall, within such ten-day period, return a copy of

the act and statement with his objections to the Council. If, within

thirty calendar days after any such item or provision so disapproved has been timely returned by the Mayor to the Council,

two-thirds of the members of the Council present and voting vote

to reenact any such item or provision, such item or provision so reenacted shall be transmitted by the Chairman to the President of

the United States. In any case in which the Mayor fails to timely

return any such item or provision so disapproved to the Council,

the Mayor shall be deemed to have approved such item or provision

not returned, and such item or provision not returned shall be

transmitted by the Council to the President of the United States.

In the case of any budget act for a fiscal year which is a control

year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995), this

subsection shall apply as if the reference in the second sentence to

‘‘ten-day period’’ were a reference to ‘‘five-day period’’ and the reference in the third sentence to ‘‘thirty calendar days’’ were a reference to ‘‘5 calendar days’’.

Subpart 2—Organization and Procedure of the Council

THE CHAIRMAN

SEC. 411. (a) The Chairman shall be the presiding officer of the

Council.

(b) When the Office of Mayor is vacant, the Chairman shall act

in his stead. While the Chairman is Acting Mayor he shall not exercise any of his authority as Chairman or member of the Council.

ACTS, RESOLUTIONS, AND REQUIREMENTS FOR QUORUM

SEC. 412. (a) The Council, to discharge the powers and duties

imposed herein, shall pass acts and adopt resolutions, upon a vote

of a majority of the members of the Council present and voting, unless otherwise provided in this Act or by the Council. Except as

provided in the last sentence of this subsection, the Council shall

use acts for all legislative purposes. Each proposed act (other than

an act to which section 446 applies) shall be read twice in substantially the same form, with at least thirteen days intervening between each reading. Upon final adoption by the Council each act

shall be made immediately available to the public in a manner

which the Council shall determine. If the Council determines, by a

vote of two-thirds of the members, that emergency circumstances

make it necessary that an act be passed after a single reading, or

that it takes effect immediately upon enactment, such act shall be

effective for a period of not to exceed ninety days. Resolutions shall

be used (1) to express simple determinations, decisions, or directions of the Council of a special or temporary character; and (2) to

approve or disapprove proposed actions of a kind historically or traditionally transmitted by the Mayor, the Board of Elections, Public

Service Commission, Armory Board, Board of Education, the Board

of Trustees of the University of the District of Columbia, or the

Convention Center Board of Directors to the Council pursuant to
Sec. 413 D.C. HOME RULE ACT 20

an act. Such resolutions must be specifically authorized by that act

and must be designed to implement that act.

(b) A special election may be called by resolution of the Council

to present for an advisory referendum vote of the people any proposition upon which the Council desires to take action.

(c) A majority of the Council shall constitute a quorum for the

lawful convening of any meeting and for the transaction of business

of the Council, except a lesser number may hold hearings.

INVESTIGATIONS BY THE COUNCIL

SEC. 413. (a) The Council, or any committee or person authorized by it, shall have power to investigate any matter relating to

the affairs of the District, and for that purpose may require the attendance and testimony of witnesses and the production of books,

papers, and other evidence. For such purpose any member of the

Council (if the Council is conducting the inquiry) or any member

of the committee may issue subpenas and administer oaths upon

resolution adopted by the Council or committee, as appropriate.

(b) In case of contumacy by, or refusal to obey a subpena

issued to, any person, the Council by resolution may refer the matter to the Superior Court of the District of Columbia, which may

by order require such persons to appear and give or produce testimony or books, papers, or other evidence, bearing upon the matter

under investigation. Any failure to obey such order may be punished by such Court as a contempt thereof as in the case of failure

to obey a subpena issued, or to testify, in a case pending before

such Court.

PART B—THE MAYOR

ELECTION, QUALIFICATIONS, VACANCY, AND COMPENSATION

SEC. 421. (a) There is established the Office of Mayor of the

District of Columbia; and the Mayor shall be elected by the registered qualified electors of the District.

(b) The Mayor established by subsection (a) shall be elected, on

a partisan basis, for a term of four years beginning at noon on January 2 of the year following his election.

(c)(1) No person shall hold the Office of Mayor unless he (A)

is a qualified elector, (B) has resided and been domiciled in the District for one year immediately preceding the day on which the general or special election for Mayor is to be held, and (C) is not engaged in any employment (whether as an employee or as a self-employed individual) and holds no public office or position (other than

his employment in and position as Mayor), for which he is compensated in an amount in excess of his actual expenses in connection therewith, except that nothing in this clause shall be construed as prohibiting such person, while holding the Office of

Mayor, from serving as a delegate or alternate delegate to a convention of a political party nominating candidates for President

and Vice President of the United States, or from holding an appointment in a reserve component of an armed force of the United

States other than a member serving on active duty under a call for

more than thirty days. The Mayor shall forfeit his office upon failure to maintain the qualifications required by this paragraph.
21 Sec. 422 D.C. HOME RULE ACT

4The margins of paragraphs (1) through (12) as in original.

(2) To fill a vacancy in the Office of Mayor, the Board of Elections shall hold a special election in the District on the first Tuesday occurring more than one hundred and fourteen days after the

date on which such vacancy occurs, unless the Board of Elections

determines that such vacancy could be more practicably filled in a

special election held on the same day as the next general election

to be held in the District occurring within sixty days of the date

on which a special election would otherwise have been held under

the provisions of this paragraph. The person elected Mayor to fill

a vacancy in the Office of Mayor shall take office on the day on

which the Board of Elections certifies his election, and shall serve

as Mayor only for the remainder of the term during which such vacancy occurred. When the Office of Mayor becomes vacant the

Chairman shall become Acting Mayor and shall serve from the date

such vacancy occurs until the date on which the board of Elections

certifies the election of the new Mayor at which time he shall again

become Chairman. While the Chairman is Acting Mayor, the Chairman shall receive the compensation regularly paid the Mayor, and

shall receive no compensation as Chairman or member of the

Council. While the Chairman is Acting Mayor, the Council shall select one of the elected at-large members of the Council to serve as

Chairman and one to serve as chairman pro tempore, until the return of the regularly elected Chairman.

(d) The Mayor shall receive compensation, payable in equal installments, at a rate equal to the maximum rate, as may be established from time to time, for level III of the Executive Schedule in

section 5314 of title 5 of the United States Code. Such rate of compensation may be increased or decreased by act of the Council.

Such change in such compensation, upon enactment by the Council

in accordance with the provisions of this Act, shall apply with respect to the term of Mayor next beginning after the date of such

change. In addition, the Mayor may receive an allowance, in such

amount as the Council may from time to time establish, for official,

reception, and representation expenses, which he shall certify in

reasonable detail to the Council.

POWERS AND DUTIES

SEC. 422. The executive power of the District shall be vested

in the Mayor who shall be the chief executive officer of the District

government. In addition, except as otherwise provided in this Act,

all functions granted to or vested in the Commissioner of the District of Columbia, as established under reorganization Plan Numbered 3 of 1967, shall be carried out by the Mayor in accordance

with this Act. The Mayor shall be responsible for the proper execution of all laws relating to the District, and for the proper administration of the affairs of the District coming under his jurisdiction

or control, including but not limited to the following powers, duties,

and functions:

(1) 4 The Mayor may designate the officer or officers of the executive department of the District who may, during periods of disability or absence from the District of the Mayor execute and perform the powers and duties of the Mayor.
Sec. 422 D.C. HOME RULE ACT 22

(2) The Mayor shall administer all laws relating to the appointment, promotion, discipline, separation, and other conditions of employment of personnel in the office of the Mayor, personnel in executive departments of the District, and members of boards, commissions, and other agencies, who, under laws in effect on the date immediately preceding the effective date of section 711(a) of this Act,

were subject to appointment and removal by the Commissioner of

the District of Columbia. All actions affecting such personnel and

such members shall, until such time as legislation is enacted by the

Council superseding such laws and establishing a permanent District government merit system, pursuant to paragraph (3), continue

to be subject to the provisions of Acts of Congress relating to the

appointment, promotion, discipline, separation, and other conditions of employment applicable to officers and employees of the District government, to section 713(d) of this Act, and where applicable, to the provisions of the joint agreement between the Commissioners and the Civil Service Commission authorized by Executive

Order Numbered 5491 of November 18, 1930, relating to the appointment of District personnel. He shall appoint or assign persons

to positions formerly occupied, ex-officio, by the Commissioner of

the District of Columbia or by the Assistant to the Commissioner

and shall have power to remove such persons from such positions.

The officers and employees of each agency with respect to which

legislative power is delegated by this Act and which immediately

prior to the effective date of section 711(a) of this Act, was not subject to the administrative control of the Commissioner of the District, shall continue to be appointed and removed in accordance

with applicable laws until such time as such laws may be superseded by legislation passed by the Council establishing a permanent District government merit system pursuant to paragraph (3).

(3) The Mayor shall administer the personnel functions of the

District covering employees of all District departments, boards,

commissions, offices and agencies, except as otherwise provided by

this Act. Personnel legislation enacted by Congress prior to or after

the effective date of this section, including, without limitation, legislation relating to appointments, promotions, discipline, separations, pay, unemployment compensation, health, disability and

death benefits, leave, retirement, insurance, and veterans’ preference applicable to employees of the District government as set

forth in section 714(c), shall continue to be applicable until such

time as the Council shall, pursuant to this section, provide for coverage under a District government merit system. The District government merit system shall be established by act of the Council.

The system may provide for continued participation in all or part

of the Federal Civil Service System and shall provide for persons

employed by the District government immediately preceding the effective date of such system personnel benefits, including but not

limited to pay, tenure, leave, residence, retirement, health and life

insurance, and employee disability and death benefits, all at least

equal to those provided by legislation enacted by Congress, or regulation adopted pursuant thereto, and applicable to such officers and

employees immediately prior to the effective date of the system established pursuant to this Act, except that nothing in this Act shall

prohibit the District from separating an officer or employee subject

to such system in the implementation of a financial plan and budg-
23 Sec. 423 D.C. HOME RULE ACT

et for the District government approved under subtitle A of title II

of the District of Columbia Financial Responsibility and Management Assistance Act of 1995. The District government merit system

shall take effect not earlier than one year nor later than five years

after the effective date of this section.

(4) The Mayor shall, through the heads of administrative

boards, offices, and agencies, supervise and direct the activities of

such boards, offices, and agencies.

(5) The Mayor may submit drafts of acts to the Council.

(6) The Mayor may delegate any of his functions (other than

the function of approving or disapproving acts passed by the Council or the function of approving contracts between the District and

the Federal Government under section 731) to any officer, employee, or agency of the executive office of the Mayor, or to any director of an executive department who may, with the approval of

the Mayor, make a further delegation of all or a part of such functions to subordinates under his jurisdiction. Nothing in the previous sentence may be construed to permit the Mayor to delegate

any functions assigned to the Chief Financial Officer of the District

of Columbia under section 424, without regard to whether such

functions are assigned to the Chief Financial Officer under such

section during a control year (as defined in section 305(4) of the

District of Columbia Financial Responsibility and Management Assistance Act of 1995) or during any other year.

(7) The Mayor shall appoint a City Administrator, who shall

serve at the pleasure of the Mayor. The City Administrator shall

be the chief administrative officer of the Mayor, and he shall assist

the Mayor in carrying out his functions under this Act, and shall

perform such other duties as may be assigned to him by the Mayor.

The City Administrator shall be paid at a rate established by the

Mayor.

(8) The Mayor may propose to the executive or legislative

branch of the United States Government legislation or other action

dealing with any subject whether or not falling within the authority of the District government, as defined in this Act.

(9) The Mayor, as custodian thereof, shall use and authenticate

the corporate seal of the District in accordance with law.

(10) The Mayor shall have the right, under rules to be adopted

by the Council, to be heard by the Council or any of its committees.

(11) The Mayor is authorized to issue and enforce administrative orders, not inconsistent with this or any other Act of the Congress or any act of the Council, as are necessary to carry out his

functions and duties.

(12) The Mayor may reorganize the offices, agencies, and other

entities within the executive branch of the government of the District by submitting to the Council a detailed plan of such reorganization. Such a reorganization plan shall be valid only if the

Council does not adopt, within sixty days (excluding Saturdays,

Sundays, and holidays) after such reorganization plan is submitted

to it by the Mayor, a resolution disapproving such reorganization.

MUNICIPAL PLANNING

SEC. 423. (a) The Mayor shall be the central planning agency

for the District. He shall be responsible for the coordination of

planning activities of the municipal government and the prepara-
Sec. 424 D.C. HOME RULE ACT 24

tion and implementation of the District’s elements of the comprehensive plan for the National Capital which may include land

use elements, urban renewal and redevelopment elements, a multiyear program of municipal public works for the District, and physical, social, economic, transportation, and population elements. The

Mayor’s planning responsibility shall not extend to Federal and

international projects and developments in the District, as determined by the National Capital Planning Commission, or to the

United States Capitol buildings and grounds as defined in sections

1 and 16 of the Act of July 31, 1946 (40 U.S.C. 193a, 193m), or to

any extension thereof or addition thereto, or to buildings and

grounds under the care of the Architect of the Capitol. In carrying

out his responsibilities under this section, the Mayor shall establish procedures for citizen involvement in the planning process and

for appropriate meaningful consultation with any State or local

government or planning agency in the National Capital region affected by any aspect of a proposed District element of the comprehensive plan (including amendments thereto) affecting or relating to the District.

(b) The Mayor shall submit the District’s elements and amendments thereto, to the Council for revision or modification, and

adoption by act, following public hearings. Following adoption and

prior to implementation, the Council shall submit such elements

and amendments thereto, to the National Capital Planning Commission for review and comment with regard to the impact of such

elements or amendments on the interests and functions of the Federal Establishment, as determined by the Commission.

(c) Such elements and amendments thereto shall be subject to

and limited by determinations with respect to the interests and

functions of the Federal Establishment as determined in the manner provided by Act of Congress.

CHIEF FINANCIAL OFFICER OF THE DISTRICT OF COLUMBIA

SEC. 424. (a) ESTABLISHMENT OF OFFICE.—

(1) IN GENERAL.—There is hereby established within the

executive branch of the government of the District of Columbia

an Office of the Chief Financial Officer of the District of Columbia (hereafter referred to as the ‘‘Office’’), which shall be

headed by the Chief Financial Officer of the District of Columbia (hereafter referred to as the ‘‘Chief Financial Officer’’).

(2) OFFICE OF THE TREASURER.—The Office shall include

the Office of the Treasurer, which shall be headed by the

Treasurer of the District of Columbia, who shall be appointed

by the Chief Financial Officer and subject to the Chief Financial Officer’s direction and control.

(3) TRANSFER OF OTHER OFFICES.—Effective with the appointment of the first Chief Financial Officer under subsection

(b), the functions and personnel of the following offices are

transferred to the Office:

(A) The Controller of the District of Columbia.

(B) The Office of the Budget.

(C) The Office of Financial Information Services.

(D) The Department of Finance and Revenue.

(4) SERVICE OF HEADS OF OTHER OFFICES.—
25 Sec. 424 D.C. HOME RULE ACT

5Public Law 104–134, § 152(a), provides as follows for fiscal years 1996 and 1997:

(a) the heads and all personnel of the following offices, together with all other District of

Columbia executive branch accounting, budget, and financial management personnel, shall

be appointed by, shall serve at the pleasure of, and shall act under the direction and control

of the Chief Financial Officer:

The Office of the Treasurer.

The Controller of the District of Columbia.

The Office of the Budget.

The Office of Financial Information Services.

The Department of Finance and Revenue.

The District of Columbia Financial Responsibility and Management Assistance Authority established pursuant to Public Law 104–8, approved April 17, 1995, may remove such individuals

from office for cause, after consultation with the Mayor and the Chief Financial Officer.

(A) OFFICE HEADS APPOINTED BY MAYOR.—With respect

to the head of the Office of the Budget and the head of the

Department of Finance and Revenue—

(i) the Mayor shall appoint such individuals with

the advice and consent of the Council, subject to the

approval of the Authority during a control year; and

(ii) during a control year, the Authority may remove such individuals from office for cause, after consultation with the Mayor.

(B) OFFICE HEADS APPOINTED BY CHIEF FINANCIAL OF- FICER.—With respect to the Controller of the District of

Columbia and the head of the Office of Financial Information Services—

(i) the Chief Financial Officer shall appoint such

individuals subject to the approval of the Mayor; and

(ii) the Chief Financial Officer may remove such

individuals from office for cause, after consultation

with the Mayor.5

(b) APPOINTMENT.— (1) IN GENERAL.— (A) CONTROL YEAR.—During a control year, the Chief

Financial Officer shall be appointed by the Mayor as follows:

(i) Prior to the appointment of the Chief Financial

Officer, the Authority may submit recommendations

for the appointment to the Mayor.

(ii) In consultation with the Authority and the

Council, the Mayor shall nominate an individual for

appointment and notify the Council of the nomination.

(iii) After the expiration of the 7-day period which

begins on the date the Mayor notifies the Council of

the nomination under clause (ii), the Mayor shall notify the Authority of the nomination.

(iv) The nomination shall be effective subject to

approval by a majority vote of the Authority.

(B) OTHER YEARS.—During a year other than a control

year, the Chief Financial Officer shall be appointed by the

Mayor with the advice and consent of the Council. Prior to

appointment, the Authority may submit recommendations

for the appointment. Upon confirmation by the Council,

the name of the Chief Financial Officer shall be submitted

to the Committees on Appropriations of the Senate and

House of Representatives, the Committee on Governmental

Affairs of the Senate, and the Committee on Government

Reform of the House of Representatives for a 30-day period
Sec. 424 D.C. HOME RULE ACT 26

of review and comment before the appointment takes effect.

(2) REMOVAL.— (A) CONTROL YEAR.—During a control year, the Chief

Financial Officer may be removed for cause by the Authority or by the Mayor with the approval of the Authority.

(B) OTHER YEARS.—During a year other than a control

year, the Chief Financial Officer shall serve at the pleasure of the Mayor, except that the Chief Financial Officer

may only be removed for cause upon dismissal by the

Mayor and approval of that dismissal by a 2⁄3 vote of the

Council. Upon approval of the dismissal by the Council,

notice of the dismissal shall be submitted to the Committees on Appropriations of the Senate and House of Representatives, the Committee on Governmental Affairs of

the Senate, and the Committee on Government Reform of

the House of Representatives for a 30-day period of review

and comment before the dismissal takes effect.

(3) SALARY.—The Chief Financial Officer shall be paid at

an annual rate equal to the rate of basic pay payable for level

I of the Executive Schedule.

(c) FUNCTIONS.—The Chief Financial Officer shall have the following duties:

(1) During a control year, preparing the financial plan and

budget for the use of the Mayor for purposes of subtitle A of

title II of the District of Columbia Financial Responsibility and

Management Assistance Act of 1995.

(2) Preparing the budgets of the District of Columbia for

the year for the use of the Mayor for purposes of part D.

(3) During a control year, assuring that all financial information presented by the Mayor is presented in a manner, and

is otherwise consistent with, the requirements of the District

of Columbia Financial Responsibility and Management Assistance Act of 1995.

(4) Implementing appropriate procedures and instituting

such programs, systems, and personnel policies within the Officer’s authority, to ensure that budget, accounting and personnel control systems and structures are synchronized for

budgeting and control purposes on a continuing basis.

(5) Preparing and submitting to the Mayor and the Council, with the approval of the Authority during a control year—

(A) annual estimates of all revenues of the District of

Columbia (without regard to the source of such revenues),

including proposed revenues, which shall be binding on the

Mayor and the Council for purposes of preparing and submitting the budget of the District government for the year

under part D, except that the Mayor and the Council may

prepare the budget based on estimates of revenues which

are lower than those prepared by the Chief Financial Officer; and

(B) quarterly re-estimates of the revenues of the District of Columbia during the year.

(6) Supervising and assuming responsibility for financial

transactions to ensure adequate control of revenues and resources, and to ensure that appropriations are not exceeded.
27 Sec. 424 D.C. HOME RULE ACT

(7) Maintaining systems of accounting and internal control

designed to provide—

(A) full disclosure of the financial impact of the activities of the District government;

(B) adequate financial information needed by the District government for management purposes;

(C) effective control over, and accountability for, all

funds, property, and other assets of the District of Columbia; and

(D) reliable accounting results to serve as the basis for

preparing and supporting agency budget requests and controlling the execution of the budget.

(8) Submitting to the Council a financial statement of the

District government, containing such details and at such times

as the Council may specify.

(9) Supervising and assuming responsibility for the assessment of all property subject to assessment and special assessments within the corporate limits of the District of Columbia

for taxation, preparing tax maps, and providing such notice of

taxes and special assessments (as may be required by law).

(10) Supervising and assuming responsibility for the levying and collection of all taxes, special assessments, licensing

fees, and other revenues of the District of Columbia (as may

be required by law), and receiving all amounts paid to the District of Columbia from any source (including the Authority).

(11) Maintaining custody of all public funds belonging to

or under the control of the District government (or any department or agency of the District government), and depositing all

amounts paid in such depositories and under such terms and

conditions as may be designated by the Council (or by the Authority during a control year).

(12) Maintaining custody of all investment and invested

funds of the District government or in possession of the District government in a fiduciary capacity, and maintaining the

safekeeping of all bonds and notes of the District government

and the receipt and delivery of District government bonds and

notes for transfer, registration, or exchange.

(13) Apportioning the total of all appropriations and funds

made available during the year for obligation so as to prevent

obligation or expenditure in a manner which would result in

a deficiency or a need for supplemental appropriations during

the year, and (with respect to appropriations and funds available for an indefinite period and all authorizations to create

obligations by contract in advance of appropriations) apportioning the total of such appropriations, funds, or authorizations in the most effective and economical manner.

(14) Certifying all contracts (whether directly or through

delegation) prior to execution as to the availability of funds to

meet the obligations expected to be incurred by the District

government under such contracts during the year.

(15) Prescribing the forms of receipts, vouchers, bills, and

claims to be used by all agencies, offices, and instrumentalities

of the District government.

(16) Certifying and approving prior to payment all bills, invoices, payrolls, and other evidences of claims, demands, or
Sec. 424 D.C. HOME RULE ACT 28

charges against the District government, and determining the

regularity, legality, and correctness of such bills, invoices, payrolls, claims, demands, or charges.

(17) In coordination with the Inspector General of the District of Columbia, performing internal audits of accounts and

operations and records of the District government, including

the examination of any accounts or records of financial transactions, giving due consideration to the effectiveness of accounting systems, internal control, and related administrative

practices of the departments and agencies of the District government.

(18) Exercising responsibility for the administration and

supervision of the District of Columbia Treasurer (except that

the Chief Financial Officer may delegate any portion of such

responsibility as the Chief Financial Officer considers appropriate and consistent with efficiency).

(19) Administering all borrowing programs of the District

government for the issuance of long-term and short-term indebtedness.

(20) Administering the cash management program of the

District government, including the investment of surplus funds

in governmental and non-governmental interest-bearing securities and accounts.

(21) Administering the centralized District government

payroll and retirement systems.

(22) Governing the accounting policies and systems applicable to the District government.

(23) Preparing appropriate annual, quarterly, and monthly

financial reports of the accounting and financial operations of

the District government.

(24) Not later than 120 days after the end of each fiscal

year, preparing the complete financial statement and report on

the activities of the District government for such fiscal year,

for the use of the Mayor under section 448(a)(4).

(d) FUNCTIONS OF TREASURER.—At all times, the Treasurer

shall have the following duties:

(1) Assisting the Chief Financial Officer in reporting revenues received by the District government, including submitting

annual and quarterly reports concerning the cash position of

the District government not later than 60 days after the last

day of the quarter (or year) involved. Such reports shall include:

(A) Comparative reports of revenue and other receipts

by source, including tax, nontax, and Federal revenues,

grants and reimbursements, capital program loans, and

advances. Each source shall be broken down into specific

components.

(B) Statements of the cash flow of the District government for the preceding quarter or year, including receipts,

disbursements, net changes in cash inclusive of the beginning balance, cash and investment, and the ending balance, inclusive of cash and investment. Such statements

shall reflect the actual, planned, better or worse dollar

amounts and the percentage change with respect to the

current quarter, year-to-date, and fiscal year.
29 Sec. 424 D.C. HOME RULE ACT

(C) Quarterly cash flow forecast for the quarter or

year involved, reflecting receipts, disbursements, net

change in cash inclusive of the beginning balance, cash

and investment, and the ending balance, inclusive of cash

and investment with respect to the actual dollar amounts

for the quarter or year, and projected dollar amounts for

each of the 3 succeeding quarters.

(D) Monthly reports reflecting a detailed summary

analysis of all District of Columbia government investments, including, but not limited to—

(i) the total of long-term and short-term investments;

(ii) a detailed summary analysis of investments by

type and amount, including purchases, sales (maturities), and interest;

(iii) an analysis of investment portfolio mix by

type and amount, including liquidity, quality/risk of

each security, and similar information;

(iv) an analysis of investment strategy, including

near-term strategic plans and projects of investment

activity, as well as forecasts of future investment

strategies based on anticipated market conditions, and

similar information;

(v) an analysis of cash utilization, including—

(I) comparisons of budgeted percentages of

total cash to be invested with actual percentages

of cash invested and the dollar amounts;

(II) comparisons of the next return on invested cash expressed in percentages (yield) with

comparable market indicators and established

District of Columbia government yield objectives;

and

(III) comparisons of estimated dollar return

against actual dollar yield.

(E) Monthly reports reflecting a detailed summary

analysis of long-term and short-term borrowings inclusive

of debt as authorized by section 603, in the current fiscal

year and the amount of debt for each succeeding fiscal

year not to exceed 5 years. All such reports shall reflect—

(i) the amount of debt outstanding by type of instrument;

(ii) the amount of authorized and unissued debt,

including availability of short-term lines of credit,

United States Treasury borrowings, and similar information;

(iii) a maturity schedule of the debt;

(iv) the rate of interest payable upon the debt; and

(v) the amount of debt service requirements and

related debt service reserves.

(2) Such other functions assigned to the Chief Financial

Officer under subsection (c) as the Chief Financial Officer may

delegate.

(e) DEFINITIONS.—In this section—

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

Financial Responsibility and Management Assistance Author-
Sec. 431 D.C. HOME RULE ACT 30

ity established under section 101(a) of the District of Columbia

Financial Responsibility and Management Assistance Act of

1995;

(2) the term ‘‘control year’’ has the meaning given such

term under section 305(4) of such Act; and

(3) the term ‘‘District government’’ has the meaning given

such term under section 305(5) of such Act.

PART C—THE JUDICIARY

JUDICIAL POWERS

SEC. 431. (a) The judicial power of the District is vested in the

District of Columbia Court of Appeals and the Superior Court of

the District of Columbia. The Superior Court has jurisdiction of

any civil action or other matter (at law or in equity) brought in the

District and of any criminal case under any law applicable exclusively to the District. The Superior Court has no jurisdiction over

any civil or criminal matter over which a United States court has

exclusive jurisdiction pursuant to an Act of Congress. The Court of

Appeals has jurisdiction of appeals from the Superior Court and, to

the extent provided by law to review orders and decisions of the

Mayor, the Council, or any agency of the District. The District of

Columbia courts shall also have jurisdiction over any other matters

granted to the District of Columbia courts by other provisions of

law.

(b) The chief judge of a District of Columbia court shall be designated by the District of Columbia Judicial Nominating Commission established by section 434 from among the judges of the court

in regular active service, and shall serve as chief judge for a term

of four years or until his successor is designated, except that his

term as chief judge shall not extend beyond the chief judge’s term

as a judge of a District of Columbia court. He shall be eligible for

redesignation as chief judge.

(c) A judge of a District of Columbia court appointed on or after

the date of enactment of the District of Columbia Court Reorganization Act of 1970 shall be appointed for a term of fifteen years

subject to mandatory retirement at age seventy-four or removal,

suspension, or involuntary retirement pursuant to section 432 and

upon completion of such term, such judge shall continue to serve

until reappointed or his successor is appointed and qualifies. A

judge may be reappointed as provided in subsection (c) of section

433.

(d)(1) There is established a District of Columbia Commission

on Judicial Disabilities and Tenure (hereinafter referred to as the

‘‘Tenure Commission’’. The Tenure Commission shall consist of

seven members selected in accordance with the provisions of subsection (e). Such members shall serve for terms of six years, except

that the member selected in accordance with subsection (e)(3)(A)

shall serve for five years; of the members first selected in accordance with subsection (e)(3)(B), one member shall serve for three

years and one member shall serve six years; of the members first

selected in accordance with subsection (e)(3)(C), one member shall

serve for a term of three years and one member shall serve for five

years; the member first selected in accordance with subsection

(e)(3)(D) shall serve for six years; and the member first appointed
31 Sec. 431 D.C. HOME RULE ACT

6So in original. Probably should be ‘‘manner in’’.

in accordance with subsection (e)(3)(E) shall serve for six years. In

making the respective first appointments according to subsections

(e)(3)(B) and (e)(3)(C), the Mayor and Board of Governors of the

unified District of Columbia Bar shall designate, at the time of

such appointments, which member shall serve for the shorter term

and which member shall serve for the longer term.

(2) The Tenure Commission shall act only at meetings called

by the Chairman or a majority of the Tenure Commission held

after notice has been given of such meeting to all Tenure Commission members.

(3) The Tenure Commission shall choose annually, from among

its members, a Chairman and such other officers as it may deem

necessary. The Tenure Commission may adopt such rules of procedures not inconsistent with this Act as may be necessary to govern

the business of the Tenure Commission.

(4) The District government shall furnish to the Tenure Commission, upon the request of the Tenure Commission, such records,

information, services, and such other assistance and facilities as

may be necessary to enable the Tenure Commission properly to

perform its functions. Information so furnished shall be treated by

the Tenure Commission as privileged and confidential.

(e)(1) No person may be appointed to the Tenure Commission

unless he—

(A) is a citizen of the United States;

(B) is a bona fide resident of the District and has maintained an actual place of abode in the District for at least ninety days immediately prior to his appointment; and

(C) is not an officer or employee of the legislative branch

or of an executive or military department or agency of the

United States (listed in sections 101 and 102 of title 5 of the

United States Code); and (except with respect to the person appointed or designated according to paragraph (3)(E) is not an

officer or employee of the judicial branch of the United States,

or an officer or employee of the District government (including

its judicial branch).

(2) Any vacancy on the Tenure Commission shall be filed in the

same manner is 6 which the original appointment was made. Any

person so appointed to fill a vacancy occurring other than upon the

expiration of a prior term shall serve only for the remainder of the

unexpired term of his predecessor.

(3) In addition to all other qualifications listed in this section,

lawyer members of the Tenure Commission shall have the qualifications prescribed for persons appointed as judges of the District

of Columbia courts. Members of the Tenure Commission shall be

appointed as follows:

(A) One member shall be appointed by the President of the

United States.

(B) Two members shall be appointed by the Board of Governors of the unified District of Columbia Bar, both or whom

shall have been engaged in the practice of law in the District

for at least five successive years preceding their appointment.

(C) Two members shall be appointed by the Mayor, one of

whom shall not be a lawyer.
Sec. 432 D.C. HOME RULE ACT 32

(D) One member shall be appointed by the Council, and

shall not be a lawyer.

(E) One member shall be appointed by the chief judge of

the United States District Court for the District of Columbia,

and such member shall be an active or retired Federal judge

serving in the District.

No person may serve at the same time on both the District of Columbia Judicial Nomination Commission and on the District of Columbia Commission on Judicial Disabilities and Tenure.

(f) Members of the Tenure Commission shall serve without

compensation for services rendered in connection with their official

duties on the Commission.

(g) The Tenure Commission shall have the power to suspend,

retire, or remove a judge of a District of Columbia court as provided in section 432 and to make recommendations regarding the

appointment of senior judges of the District of Columbia courts as

provided in section 11–1504 of the District of Columbia Code.

REMOVAL, SUSPENSION, AND INVOLUNTARY RETIREMENT

SEC. 432. (a)(1) A judge of a District of Columbia court shall

be removed from office upon the filing in the District of Columbia

Court of Appeals by the Tenure Commission of an order of removal

certifying the entry, in any court within the United States, of a

final judgment of conviction of a crime which is punishable as a felony under Federal law or which would be a felony in the District.

(2) A judge of a District of Columbia court shall also be removed from office upon affirmance of an appeal from an order of

removal filed in the District of Columbia Court of Appeals by the

Tenure Commission (or upon expiration of the time within which

such an appeal may be taken) after a determination by the Tenure

Commission of—

(A) willful misconduct in office,

(B) willful and persistent failure to perform judicial duties,

or

(C) any other conduct which is prejudicial to the administration of justice or which brings the judicial office into disrepute.

(b) A judge of a District of Columbia court shall be involuntarily retired from office when (1) The Tenure Commission determines that the judge suffers from a mental or physical disability

(including habitual intemperance) which is or is likely to become

permanent and which prevents, or seriously interferes with, the

proper performance of his judicial duties, and (2) the Tenure Commission files in the District of Columbia Court of Appeals an order

of involuntary retirement and the order is affirmed on appeal or

the time within which an appeal may be taken from the order has

expired.

(c)(1) A judge of a District of Columbia court shall be suspended, without salary—

(A) upon—

(i) proof of his conviction of a crime referred to in subsection (a)(1) which has not become final, or

(ii) the filing of an order of removal under subsection

(a)(2) which has not become final; and
33 Sec. 433 D.C. HOME RULE ACT

(B) upon the filing by the Tenure Commission of an order

of suspension in the District of Columbia Court of Appeals.

Suspension under this paragraph shall continue until termination

of all appeals. If the conviction is reversed or the order of removal

is set aside, the judge shall be reinstated and shall recover his salary and all rights and privileges of his office.

(2) A judge of a District of Columbia court shall be suspended

from all judicial duties, with such retirement salary as he may be

entitled, upon the filing by the Tenure Commission of an order of

involuntary retirement under subsection (b) in the District of Columbia Court of Appeals. Suspension shall continue until termination of all appeals. If the order of involuntary retirement is set

aside, the judge shall be reinstated and shall recover his judicial

salary less any retirement salary received and shall be entitled to

all the rights and privileges of his office.

(3) A judge of a District of Columbia court shall be suspended

from all or part of his judicial duties, with salary, if the Tenure

Commission, upon concurrence of five members, (A) orders a hearing for the removal or retirement of the judge pursuant to this subchapter and determines that his suspension is in the interest of the

administration of justice, and (B) files an order of suspension in the

District of Columbia Court of Appeals. The suspension shall terminate as specified in the order (which may be modified, as appropriate, by the Tenure Commission) but in no event later than the

termination of all appeals.

NOMINATION AND APPOINTMENT OF JUDGES

SEC. 433. (a) Except as provided in section 434(d)(1), the President shall nominate, from the list of persons recommended to him

by the District of Columbia Judicial Nomination Commission established under section 434, and, by and with the advice and consent

of the Senate, appoint all judges of the District of Columbia courts.

(b) No person may be nominated or appointed a judge of a District of Columbia court unless he—

(1) is a citizen of the United States;

(2) is an active member of the unified District of Columbia

Bar and has been engaged in the active practice of law in the

District for the five years immediately preceding his nomination or for such five years has been on the faculty of a law

school in the District, or has been employed as a lawyer by the

United States or the District of Columbia government;

(3) is a bona fide resident of the District of Columbia and

has maintained an actual place of abode in the District for at

least ninety days immediately prior to his nomination, and

shall retain such residency as long as he serves as such judge,

accept judges appointed prior to the effective date of this part

who retain residency as required by section 1501(a) of title II

of the District of Columbia Code shall not be required to be

residents of the District to be eligible for reappointment or to

serve any term to which reappointed;

(4) is recommended to the President, for such nomination

and appointment, by the District of Columbia Judicial Nomination Commission; and
Sec. 434 D.C. HOME RULE ACT 34

7Public Law 99–573, § 12(2), amended the second sentence of this subsection by striking ‘‘thirty’’ and inserting ‘‘sixty’’. Impossible to execute; intent was probably to amend the third sentence

of this subsection. 8Public Law 99–573, § 13, amended the third sentence of this subsection by striking ‘‘exceptionally well-qualified or’’. Impossible to execute; intent was probably to amend the fourth sentence of this subsection.

(5) has not served, within a period of two years prior to his

nomination, as a member of the Tenure Commission or of the

District of Columbia Judicial Nomination Commission.

(c) Not less than six months prior to the expiration of his term

of office, any judge of the District of Columbia courts may file with

the Tenure Commission a declaration of candidacy for reappointment. If a declaration is not so filed by any judge, a vacancy shall

result from the expiration of his term of office and shall be filled

by appointment as provided in subsections (a) and (b). If a declaration is so filed, the Tenure Commission shall, not less than thirty 7

days prior to the expiration of the declaring candidate’s term of office, prepare and submit to the President a written evaluation of

the declaring candidate’s performance during his present term of

office and his fitness for reappointment to another term. If the Tenure Commission determines the declaring candidate to be exceptionally well-qualified or 8 well qualified for reappointment to another term, then the term of such declaring candidate shall be

automatically extended for another full term, subject to mandatory

retirement, suspension, or removal. If the Tenure Commission determines the declaring candidate to be qualified for reappointment

to another term, then the President may nominate such candidate,

in which case the President shall submit to the Senate for advice

and consent the renomination of the declaring candidate as judge.

If the President determines not to so nominate such declaring candidate, he shall nominate another candidate for such position only

in accordance with the provisions of subsections (a) and (b). If the

Tenure Commission determines the declaring candidate to be unqualified for reappointment to another term, then the President

shall not submit to the Senate for advice and consent the renomination of the declaring candidate as judge and such judge shall not

be eligible for reappointment or appointment as a judge of a District of Columbia court.

DISTRICT OF COLUMBIA JUDICIAL NOMINATION COMMISSION

SEC. 434. (a) There is established for the District of Columbia

the District of Columbia Judicial Nomination Commission (hereafter in this section referred to as the ‘‘Commission’’). The Commission shall consist of seven members selected in accordance with the

provisions of subsection (b). Such members shall serve for terms of

six years, except that the member selected in accordance with subsection (b)(4)(A) shall serve for five years; of the members first selected in accordance with subsection (b)(4)(B), one member shall

serve for three years and one member shall serve for six years; of

the members first selected in accordance with subsection (b)(4)(C),

one member shall serve for a term of three years and one member

shall serve for five years; the member first selected in accordance

with subsection (b)(4)(D) shall serve for six years; and the member

first appointed in accordance with subsection (b)(4)(E) shall serve

for six years. In making the respective first appointments according
35 Sec. 434 D.C. HOME RULE ACT

to subsections (b)(4)(B) and (b)(4)(C), the Mayor and the Board of

Governors of the unified District of Columbia Bar shall designate,

at the time of such appointments, which member shall serve for the

shorter term and which member shall serve for the longer term.

(b)(1) No person may be appointed to the Commission unless

he—

(A) is a citizen of the United States;

(B) is a bona fide resident of the District and has maintained an actual place of abode in the District for at least 90

days immediately prior to his appointment; and

(C) is not a member, officer, or employee of the legislative

branch or of an executive or military department or agency of

the United States (listed in sections 101 and 102 of title 5 of

the United States Code); and (except with respect to the person

appointed or designated according to paragraph (4)(E)) is not

an officer or employee of the judicial branch of the United

States, or an officer or employee of the District government (including its judicial branch).

(2) Any vacancy on the Commission shall be filed in the same

manner in which the original appointment was made. Any person

so appointed to fill a vacancy occurring other than upon the expiration of a prior term shall serve only for the remainder of the unexpired term of his predecessor.

(3) It shall be the function of the Commission to submit nominees for appointment to positions as judges of the District of Columbia courts in accordance with section 433 of this Act.

(4) In addition to all other qualifications listed in this section,

lawyer members of the Commission shall have the qualifications

prescribed for persons appointed as judges for the District of Columbia courts. Members of the Commission shall be appointed as

follows:

(A) One member shall be appointed by the President of the

United States.

(B) Two members shall be appointed by the Board of Governors of the unified District or Columbia Bar, both of whom

shall have been engaged in the practice of law in the District

for at least five successive years preceding their appointment.

(C) Two members shall be appointed by the Mayor, one of

whom shall not be a lawyer.

(D) One member shall be appointed by the Council, and

shall not be a lawyer.

(E) One member shall be appointed by the chief judge of

the United States District Court for the District of Columbia,

and such member shall be an active or retired Federal judge

serving in the District.

(5) Members of the Commission shall serve without compensation for services rendered in connection with their official duties on

the Commission.

(c)(1) The Commission shall act only at meetings called by the

Chairman or a majority of the Commission held after notice has

been given of such meeting to all Commission members. Meetings

of the Commission may be closed to the public. Section 742 of this

Act shall not apply to meetings of the Commission.

(2) The Commission shall choose annually, from among its

members, a Chairman, and such other officers as it may deem nec-
Sec. 441 D.C. HOME RULE ACT 36

essary. The Commission may adopt such rules of procedures not inconsistent with this Act as may be necessary to govern the business of the Commission.

(3) The District government shall furnish to the Commission,

upon the request of the Commission, such records, information,

services, and such other assistance and facilities as may be necessary to enable the Commission properly to perform its function.

Information, records, and other materials furnished to or developed

by the Commission in the performance of its duties under this section shall be privileged and confidential. Section 552 of title 5,

United States Code (known as the Freedom of Information Act),

shall not apply to any such materials.

(d)(1) In the event of a vacancy in any position of the judge of

a District of Columbia court, the Commission shall, within sixty

days following the occurrence of such vacancy, submit to the President, for possible nomination and appointment, a list of three persons for each vacancy. If more than one vacancy exists at one given

time, the Commission must submit lists in which no person is

named more than once and the President may select more than one

nominee from one list. Whenever a vacancy will occur by reason of

the expiration of such a judge’s term of office, the Commission’s list

of nominees shall be submitted to the President not less than sixty

days prior to the occurrence of such vacancy. In the event the

President fails to nominate, for Senate confirmation, one of the persons on the list submitted to him under this section within sixty

days after receiving such list, the Commission shall nominate, and

with the advice and consent of the Senate, appoint one of those

persons to fill the vacancy for which such list was originally submitted to the President.

(2) In the event any person recommended by the Commission

to the President requests that his recommendation be withdrawn,

dies, or in any other way becomes disqualified to serve as a judge

of the District of Columbia courts, the Commission shall promptly

recommend to the President one person to replace the person originally recommended.

(3) In no instance shall the Commission recommend any person, who in the event of timely nomination following a recommendation by the Commission, does not meet, upon such nomination, the qualifications specified in section 433.

(4) Upon submission to the President, the name of any individual recommended under this subsection shall be made public by

the Judicial Nomination Commission.

PART D—DISTRICT BUDGET AND FINANCIAL MANAGEMENT

Subpart 1—Budget and Financial Management

FISCAL YEAR

SEC. 441. The fiscal year of the District shall, beginning on October 1, 1976, commence on the first day of October of each year

and shall end on the thirtieth day of September of the succeeding

calendar year. Such fiscal year shall also constitute the budget and

accounting year. However, the fiscal year for the Armory Board

shall begin on the first day of January and shall end on the thirtyfirst day of December of each calendar year.
37 Sec. 442 D.C. HOME RULE ACT

SUBMISSION OF ANNUAL BUDGET

SEC. 442. (a) At such time as the Council may direct, the

Mayor shall prepare and submit to the Council each year, and

make available to the public, an annual budget for the District of

Columbia government which shall include—

(1) the budget for the forthcoming fiscal year in such detail

as the Mayor determines necessary to reflect the actual financial condition of the District government for such fiscal year,

and specify the agencies and purposes for which funds are

being requested; and which shall be prepared on the assumption that proposed expenditures resulting from financial transactions undertaken on either an obligation or cash-outlay

basis, for such fiscal year shall not exceed estimated resources

from existing sources and proposed resources;

(2) an annual budget message which shall include supporting financial and statistical information on the budget for

the forthcoming fiscal year and information on the approved

budgets and expenditures for the immediately preceding three

fiscal years;

(3) a multiyear plan for all agencies of the District government as required under section 444;

(4) a multiyear capital improvements plan for all agencies

of the District government as required under section 443;

(5) a program performance report comparing actual performance of as many programs as is practicable for the last

completed fiscal year against proposed goals for such programs

for such year, and, in addition, presenting as many qualitative

or quantitative measures of program effectiveness as possible

(including results of statistical sampling or other special analyses), and indicating the status of efforts to comply with the

reports of the District of Columbia Auditor and the Comptroller General of the United States;

(6) an issue analysis statement consisting of a reasonable

number of issues, identified by the Council in its action on the

budget in the preceding fiscal year, having significant revenue

or budgetary implications, and other similar issues selected by

the mayor, which shall consider the cost and benefits of alternatives and the rationale behind action recommended or adopted; and

(7) a summary of the budget for the forthcoming fiscal year

designed for distribution to the general public.

(b) The budget prepared and submitted by the Mayor shall include, but not be limited to, recommended expenditures at a reasonable level for the forthcoming fiscal year for the Council, the

District of Columbia Auditor, the District of Columbia Board of

Elections, the District of Columbia Judicial Nomination Commission, the Zoning Commission of the District of Columbia, the Public

Service Commission, the Armory Board, the Commission on Judicial Disabilities and Tenure, and the District of Columbia Water

and Sewer Authority.

(c) The Mayor from time to time may prepare and submit to

the Council such proposed supplemental or deficiency budget recommendations as in his judgment are necessary on account of laws

enacted after transmission of the budget or are otherwise in the
Sec. 443 D.C. HOME RULE ACT 38

public interest. The Mayor shall submit with such proposals a

statement of justifications, including reasons for their omission

from the annual budget. Whenever such proposed supplemental or

deficiency budget recommendations are in an amount which would

result in expenditures in excess of estimated resources, the Mayor

shall make such recommendations as are necessary to increase resources to meet such increased expenditures.

(d) The Mayor shall prepare and submit to the Council a proposed supplemental or deficiency budget recommendation under

subsection (c) if the Council by resolution requests the Mayor to

submit such a recommendation.

MULTIYEAR PLAN

SEC. 443. The Mayor shall prepare and include in the annual

budget a multiyear plan for all agencies included in the District

budget, for all sources of funding, and for such program categories

as the Mayor identifies. Such plan shall be based on the actual experience of the immediately preceding three fiscal years, on the approved current fiscal year budget, and on estimates for at least the

four succeeding fiscal years. The plan shall include, but not be limited to, provisions identifying—

(1) future cost implications of maintaining programs at

currently authorized levels, including anticipated changes in

wage, salary, and benefit levels;

(2) future cost implications of all capital projects for which

funds have already been authorized, including identification of

the amount of already appropriated but unexpended capital

project funds;

(3) future cost implications of new, improved, or expanded

programs and capital project commitments proposed for each of

the succeeding four fiscal years;

(4) the effects of current and proposed capital projects on

future operating budget requirements;

(5) revenues and funds likely to be available from existing

revenue sources at current rates or levels;

(6) the specific revenue and tax measures recommended for

the forthcoming fiscal year and for the next following fiscal

year necessary to balance revenues and expenditures;

(7) the actuarial status and anticipated costs and revenues

of retirement systems covering District employees; and

(8) total debt service payments in each fiscal year in which

debt service payments must be made for all bonds which have

been or will be issued, and all loans from the United States

Treasury which have been or will be received, to finance the

total cost on a full funding basis of all projects listed in the

capital improvements plan prepared under section 444; and for

each such fiscal year, the percentage relationship of the total

debt service payment (with payments for issued and proposed

bonds and loans from the United States Treasury, received or

proposed, separately identified) to the bonding limitation for

the current and forthcoming fiscal year as specified in section

603(b).
39 Sec. 445A D.C. HOME RULE ACT

MULTIYEAR CAPITAL IMPROVEMENTS PLAN

SEC. 444. The Mayor shall prepare and include in the annual

budget a multiyear capital improvements plan for all agencies of

the District which shall be based upon the approved current fiscal

year budget and shall include—

(1) the status, estimated period of usefulness, and total

cost of each capital project on a full funding basis for which

any appropriation is requested or any expenditure will be

made in the forthcoming fiscal year and at least four fiscal

years thereafter, including an explanation of change in total

cost in excess of 5 per centum for any capital project included

in the plan of the previous fiscal year;

(2) an analysis of the plan, including its relationship to

other programs, proposals, or elements developed by the Mayor

as the central planning agency for the District pursuant to section 423 of this Act;

(3) identification of the years and amounts in which bonds

would have to be issued, loans made, and costs actually incurred on each capital project identified; and

(4) appropriate maps or other graphics.

DISTRICT OF COLUMBIA COURTS’ BUDGET

SEC. 445. The District of Columbia courts shall prepare and

annually submit to the Director of the Office of Management and

Budget, for inclusion in the annual budget, annual estimates of the

expenditures and appropriations necessary for the maintenance

and operation of the District of Columbia court system. The courts

shall submit as part of their budgets both a multiyear plan and a

multiyear capital improvements plan and shall submit a statement

presenting qualitative and quantitative descriptions of court activities and the status of efforts to comply with reports of the Comptroller General of the United States.

WATER AND SEWER AUTHORITY BUDGET

SEC. 445A. (a) IN GENERAL.—The District of Columbia Water

and Sewer Authority established pursuant to the Water and Sewer

Authority Establishment and Department of Public Works Reorganization Act of 1996 shall prepare and annually submit to the

Mayor, for inclusion in the annual budget, annual estimates of the

expenditures and appropriations necessary for the operation of the

Authority for the year. All such estimates shall be forwarded by the

Mayor to the Council for its action pursuant to sections 446 and

603(c), without revision but subject to his recommendations. Notwithstanding any other provision of this Act, the Council may comment or make recommendations concerning such annual estimates,

but shall have no authority under this Act to revise such estimates.

(b) PERMITTING EXPENDITURE OF EXCESS REVENUES FOR CAPITAL PROJECTS IN EXCESS OF BUDGET.—Notwithstanding the

amount appropriated for the District of Columbia Water and Sewer

Authority for capital projects for a fiscal year, if the revenues of the

Authority for the year exceed the estimated revenues of the Authority provided in the annual budget of the District of Columbia

for the fiscal year, the Authority may obligate or expend an addi-
Sec. 446 D.C. HOME RULE ACT 40

tional amount for capital projects during the year equal to the

amount of such excess revenues.

ENACTMENT OF APPROPRIATIONS BY CONGRESS

SEC. 446. The Council, within fifty calendar days after receipt

of the budget proposal from the Mayor, and after public hearing,

shall by act adopt the annual budget for the District of Columbia

government. Any supplements thereto shall also be adopted by act

by the Council after public hearing. Such budget so adopted shall

be submitted by the Mayor to the President for transmission by

him to the Congress. Except as provided in section 445A(b), section

467(d), section 471(c), section 472(d)(2), section 475(e)(2), section

483(d), and section 490(f), (g), (h)(3), and (i)(3), no amount may be

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

Columbia government unless such amount has been approved by

Act of Congress, and then only according to such Act. Notwithstanding any other provision of this Act, the Mayor shall not transmit any annual budget or amendments or supplements thereto, to

the President of the United States until the completion of the budget procedures contained in this Act. After the adoption of the annual budget for a fiscal year (beginning with the annual budget for

fiscal year 1995), no reprogramming of amounts in the budget may

occur unless the Mayor submits to the Council a request for such

reprogramming and the Council approves the request, but only if

any additional expenditures provided under such request for an activity are offset by reductions in expenditures for another activity.

CONSISTENCY OF BUDGET, ACCOUNTING, AND PERSONNEL SYSTEMS

SEC. 447. The Mayor shall implement appropriate procedures

to insure that budget, accounting, and personnel control systems

and structures are synchronized for budgeting and control purposes

on a continuing basis. No employee shall be hired on a full-time or

part-time basis unless such position is authorized by Act of Congress. Employees shall be assigned in accordance with the program,

organization, and fund categories specified in the Act of Congress

authorizing such position. Hiring of temporary employees and temporary employee transfers among programs shall be consistent with

applicable Acts of Congress and reprogramming procedures to insure that costs are accurately associated with programs and

sources of funding.

FINANCIAL DUTIES OF THE MAYOR

SEC. 448. (a) Subject to the limitations in section 603, the

Mayor shall have charge of the administration of the financial affairs of the District and to that end he shall—

(1) supervise and be responsible for all financial transactions to insure adequate control of revenues and resources

and to insure that appropriations are not exceeded;

(2) maintain systems of accounting and internal control designed to provide—

(A) full disclosure of the financial results of the District government’s activities,

(B) adequate financial information needed by the District government for management purposes,
41 Sec. 449 D.C. HOME RULE ACT

9So in law. The period probably should be a semicolon.

(C) effective control over and accountability for all

funds, property, and other assets,

(D) reliable accounting results to serve as the basis for

preparing and supporting agency budget requests and controlling the execution of the budget;

(3) submit to the Council a financial statement in any detail and at such times as the Council may specify;

(4) submit to the Council, by February 1 of each fiscal

year, a complete financial statement and report for the preceding fiscal year;

(5) supervise and be responsible for the assessment of all

property subject to assessment and special assessments within

the corporate limits of the District for taxation, prepare tax

maps, and give such notice of taxes and special assessments,

as may be required by law;

(6) supervise and be responsible for the levying and collection of all taxes, special assessments, license fees, and other

revenues of the District, as required by law, and receive all

moneys receivable by the District from the Federal Government or from any agency or instrumentality of the District, except that this paragraph shall not apply to moneys from the

District of Columbia Courts.9

(7) have custody of all public funds belonging to or under

the control of the District, or any agency of the District government, and deposit all funds coming into his hands, in such depositories as may be designated and under such terms and conditions as may be prescribed by act of the Council;

(8) have custody of all investments and invested funds of

the District government, or in possession of such government

in a fiduciary capacity, and have the safekeeping of all bonds

and notes of the District and the receipt and delivery of District bonds and notes for transfer, registration or exchange;

and

(9) apportion the total of all appropriations and funds

made available during the fiscal year for obligation so as to

prevent obligation or expenditure thereof in a manner which

would indicate a necessity for deficiency or supplemental appropriations for such fiscal year, and with respect to all appropriations or funds not limited to a definite period, and all authorizations to create obligations by contract in advance of appropriations, apportion the total of such appropriations or

funds or authorizations so as to achieve the most effective and

economical use thereof.

(b) Notwithstanding subsection (a), the Mayor may make any

payments required by subsection (b) or subsection (c) of section 483

and take any actions authorized by an act of the Council under section 467(b) or under subsection (a)(4)(A), or subsection (e), of section 490.

ACCOUNTING SUPERVISION AND CONTROL

SEC. 449. The Mayor shall—
Sec. 450 D.C. HOME RULE ACT 42

10The margins of subsections (a) through (d) as in original.

(a) 10 prescribe the forms of receipts, vouchers, bills and

claims to be used by all the agencies, offices, and instrumentalities of the District government;

(b) examine and approve all contracts, orders, and other

documents by which the District government incurs financial

obligations, having previously ascertained that money has been

appropriated and allotted and will be available when the obligations shall become due and payable;

(c) audit and approve before payment all bills, invoices,

payrolls, and other evidences of claims, demands, or charges

against the District government and with the advice of the

legal officials of the District determine the regularity, legality,

and correctness of such claims, demands, or charges; and

(d) perform internal audits of accounts and operations and

agency records of the District government, including the examination of any accounts or records of financial transactions, giving due consideration to the effectiveness of accounting systems, internal control, and related administrative practices of

the respective agencies.

GENERAL AND SPECIAL FUNDS

SEC. 450. The General Fund of the District shall be composed

of those District revenues which on the effective date of this title

are paid into the Treasury of the United States and credited either

to the General Fund of the District or its miscellaneous receipts,

but shall not include any revenues which are applied by law to any

special fund existing on the date of enactment of this title. The

Council may from time to time establish such additional special

funds as may be necessary for the efficient operation of the government of the District. All money received by any agency, officer, or

employee of the District in its or his official capacity shall belong

to the District government and shall be paid promptly to the Mayor

for deposit in the appropriate fund, except that all money received

by the District of Columbia Courts shall be deposited in the Treasury of the United States or the Crime Victims Fund.

RESERVE FUNDS

SEC. 450A. (a) EMERGENCY RESERVE FUND.—

(1) IN GENERAL.—There is established an emergency cash

reserve fund (in this subsection referred to as the ‘‘emergency

reserve fund’’) as an interest-bearing account (separate from

other accounts in the General Fund) into which the Mayor

shall deposit in cash not later than February 15 of each fiscal

year (or not later than October 1, 2000, in the case of fiscal

year 2001) such amount as may be required to maintain a balance in the fund of at least 4 percent of the total budget appropriated for operating expenditures for such fiscal year which is

derived from local funds (or, in the case of fiscal years prior to

fiscal year 2004, such amount as may be required to maintain

a balance in the fund of at least the minimum emergency reserve balance for such fiscal year, as determined under paragraph (2)).
43 Sec. 450A D.C. HOME RULE ACT

(2) DETERMINATION OF MINIMUM EMERGENCY RESERVE BALANCE.—

(A) IN GENERAL.—The ‘‘minimum emergency reserve

balance’’ with respect to a fiscal year is the amount equal

to the applicable percentage of the total budget appropriated for operating expenditures for such fiscal year

which is derived from local funds.

(B) APPLICABLE PERCENTAGE DEFINED.—In subparagraph (A), the ‘‘applicable percentage’’ with respect to a fiscal year means the following:

(i) For fiscal year 2001, 1 percent.

(ii) For fiscal year 2002, 2 percent.

(iii) For fiscal year 2003, 3 percent.

(3) INTEREST.—Interest earned on the emergency reserve

fund shall remain in the account and shall only be withdrawn

in accordance with paragraph (4).

(4) CRITERIA FOR USE OF AMOUNTS IN EMERGENCY RESERVE

FUND.—The Chief Financial Officer, in consultation with the

Mayor, shall develop a policy to govern the emergency reserve

fund which shall include (but which may not be limited to) the

following requirements:

(A) The emergency reserve fund may be used to provide for unanticipated and nonrecurring extraordinary

needs of an emergency nature, including a natural disaster

or calamity as defined by section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Public

Law 100–707) or unexpected obligations by Federal law.

(B) The emergency reserve fund may also be used in

the event of a State of Emergency as declared by the

Mayor pursuant to section 5 of the District of Columbia

Public Emergency Act of 1980 (sec. 6–1504, D.C. Code).

(C) The emergency reserve fund may not be used to

fund—

(i) any department, agency, or office of the Government of the District of Columbia which is administered by a receiver or other official appointed by a

court;

(ii) shortfalls in any projected reductions which

are included in the budget proposed by the District of

Columbia for the fiscal year; or

(iii) settlements and judgments made by or

against the Government of the District of Columbia.

(5) ALLOCATION OF EMERGENCY CASH RESERVE FUNDS.—

Funds may be allocated from the emergency reserve fund only

after—

(A) an analysis has been prepared by the Chief Financial Officer of the availability of other sources of funding

to carry out the purposes of the allocation and the impact

of such allocation on the balance and integrity of the emergency reserve fund; and

(B) with respect to fiscal years beginning with fiscal

year 2005, the contingency reserve fund established by

subsection (b) has been projected by the Chief Financial

Officer to be exhausted at the time of the allocation.
Sec. 450A D.C. HOME RULE ACT 44

(6) NOTICE.—The Mayor, the Council, and (in the case of

a fiscal year which is a control year, as defined in section

305(4) of the District of Columbia Financial Responsibility and

Management Assistance Act of 1995) the District of Columbia

Financial Responsibility and Management Assistance Authority shall notify the Committees on Appropriations of the Senate and House of Representatives in writing not more than 30

days after the expenditure of funds from the emergency reserve fund.

(7) REPLENISHMENT.—The District of Columbia shall appropriate sufficient funds each fiscal year in the budget process

to replenish any amounts allocated from the emergency reserve

fund during the preceding fiscal year by the following fiscal

year. Once the emergency reserve equals 4 percent of total

budget appropriated from local funds for operating expenditures for the fiscal year, the District of Columbia shall appropriate sufficient funds each fiscal year in the budget process to

replenish any amounts allocated from the emergency reserve

fund during the preceding year to maintain a balance of at

least 4 percent of total funds appropriated from local funds for

operating expenditures by the following fiscal year.

(b) CONTINGENCY RESERVE FUND.— (1) IN GENERAL.—There is established a contingency cash

reserve fund (in this subsection referred to as the ‘‘contingency

reserve fund’’) as an interest-bearing account (separate from

other accounts in the General Fund) into which the Mayor

shall deposit in cash not later than October 1 of each fiscal

year (beginning with fiscal year 2002) such amount as may be

required to maintain a balance in the fund of at least 3 percent

of the total budget appropriated for operating expenditures for

such fiscal year which is derived from local funds (or, in the

case of fiscal years prior to fiscal year 2007, such amount as

may be required to maintain a balance in the fund of at least

the minimum contingency reserve balance for such fiscal year,

as determined under paragraph (2)).

(2) DETERMINATION OF MINIMUM CONTINGENCY RESERVE

BALANCE.—

(A) IN GENERAL.—The ‘‘minimum contingency reserve

balance’’ with respect to a fiscal year is the amount equal

to the applicable percentage of the total budget appropriated from local funds for operating expenditures for

such fiscal year which is derived from local funds.

(B) APPLICABLE PERCENTAGE DEFINED.—In subparagraph (A), the ‘‘applicable percentage’’ with respect to a fiscal year means the following:

(i) For fiscal year 2002, 0 percent.

(ii) For fiscal year 2003, 0 percent.

(iii) For fiscal year 2004, 0 percent.

(iv) For fiscal year 2005, 1 percent.

(v) For fiscal year 2006, 2 percent.

(3) INTEREST.—Interest earned on the contingency reserve

fund shall remain in the account and may only be withdrawn

in accordance with paragraph (4).

(4) CRITERIA FOR USE OF AMOUNTS IN CONTINGENCY RESERVE FUND.—The Chief Financial Officer, in consultation with
45 Sec. 450B D.C. HOME RULE ACT

the Mayor, shall develop a policy governing the use of the contingency reserve fund which shall include (but which may not

be limited to) the following requirements:

(A) The contingency reserve fund may only be used to

provide for nonrecurring or unforeseen needs that arise

during the fiscal year, including expenses associated with

unforeseen weather or other natural disasters, unexpected

obligations created by Federal law or new public safety or

health needs or requirements that have been identified

after the budget process has occurred, or opportunities to

achieve cost savings.

(B) The contingency reserve fund may be used, if needed, to cover revenue shortfalls experienced by the District

government for 3 consecutive months (based on a 2 month

rolling average) that are 5 percent or more below the budget forecast.

(C) The contingency reserve fund may not be used to

fund any shortfalls in any projected reductions which are

included in the budget proposed by the District of Columbia for the fiscal year.

(5) ALLOCATION OF CONTINGENCY CASH RESERVE.—Funds

may be allocated from the contingency reserve fund only after

an analysis has been prepared by the Chief Financial Officer

of the availability of other sources of funding to carry out the

purposes of the allocation and the impact of such allocation on

the balance and integrity of the contingency reserve fund.

(6) REPLENISHMENT.—The District of Columbia shall appropriate sufficient funds each fiscal year in the budget process

to replenish any amounts allocated from the contingency reserve fund during the preceding fiscal year by the following fiscal year. Once the contingency reserve equals 3 percent of total

funds appropriated from local funds for operating expenditures,

the District of Columbia shall appropriate sufficient funds each

fiscal year in the budget process to replenish any amounts allocated from the contingency reserve fund during the preceding

year to maintain a balance of at least 3 percent of total funds

appropriated from local funds for operating expenditures by

the following fiscal year.

(c) QUARTERLY REPORTS.—The Chief Financial Officer shall

submit a quarterly report to the Mayor, the Council, the District

of Columbia Financial Responsibility and Management Assistance

Authority (in the case of a fiscal year which is a control year, as

defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995), and the

Committees on Appropriations of the Senate and House of Representatives that includes a monthly statement on the balance and

activities of the contingency and emergency reserve funds.

COMPREHENSIVE FINANCIAL MANAGEMENT POLICY

SEC. 450B. (a) COMPREHENSIVE FINANCIAL MANAGEMENT POLICY.—The District of Columbia shall conduct its financial management in accordance with a comprehensive financial management

policy.

(b) CONTENTS OF POLICY.—The comprehensive financial management policy shall include, but not be limited to, the following:
Sec. 451 D.C. HOME RULE ACT 46

(1) A cash management policy.

(2) A debt management policy.

(3) A financial asset management policy.

(4) An emergency reserve management policy in accordance with section 450A(a).

(5) A contingency reserve management policy in accordance with section 450A(b).

(6) A policy for determining real property tax exemptions

for the District of Columbia.

(c) ANNUAL REVIEW.—The comprehensive financial management policy shall be reviewed at the end of each fiscal year by the

Chief Financial Officer who shall—

(1) not later than July 1 of each year, submit any proposed

changes in the policy to the Mayor and (in the case of a fiscal

year which is a control year, as defined in section 305(4) of the

District of Columbia Financial Responsibility and Management

Assistance Act of 1995) the District of Columbia Financial Responsibility and Management Assistance Authority (Authority)

for review;

(2) not later than August 1 of each year, after consideration of any comments received under paragraph (1), submit

the changes to the Council of the District of Columbia (Council)

for approval; and

(3) not later than September 1 of each year, notify the

Committees on Appropriations of the Senate and House of Representatives, the Committee on Government Reform of the

House of Representatives, and the Committee on Governmental Affairs of the Senate of any changes enacted by the

Council.

(d) PROCEDURE FOR DEVELOPMENT OF FIRST COMPREHENSIVE

FINANCIAL MANAGEMENT POLICY.— (1) CHIEF FINANCIAL OFFICER.—Not later than April 1,

2001, the Chief Financial Officer shall submit to the Mayor an

initial proposed comprehensive financial management policy

for the District of Columbia pursuant to this section.

(2) COUNCIL.—Following review and comment by the

Mayor, not later than May 1, 2001, the Chief Financial Officer

shall submit the proposed financial management policy to the

Council for its prompt review and adoption.

(3) AUTHORITY.—Upon adoption of the financial management policy under paragraph (2), the Council shall immediately submit the policy to the Authority for a review of not

to exceed 30 days.

(4) CONGRESS.—Following review of the financial management policy by the Authority under paragraph (3), the Authority shall submit the policy to the Committees on Appropriations of the Senate and House of Representatives, the Committee on Government Reform of the House of Representatives,

and the Committee on Governmental Affairs of the Senate for

review, and the policy shall take effect 30 days after the date

the policy is submitted under this paragraph.

SPECIAL RULES REGARDING CERTAIN CONTRACTS

SEC. 451. (a) CONTRACTS EXTENDING BEYOND ONE YEAR.—No

contract involving expenditures out of an appropriation which is
47 Sec. 451 D.C. HOME RULE ACT

11Public Law 104–134, § 134, added this subsection to section 451 of the ‘‘District of Columbia

Self-Government and Governmental Reorganization Act of 1973’’. Intent was probably to add

this subsection to section 451 of this Act.

available for more than one year shall be made for a period of more

than five years unless, with respect to a particular contract, the

Council, by a two-thirds vote of its members present and voting,

authorizes the extension of such period for such contract. Such contracts shall be made pursuant to criteria established by act of the

Council.

(b) CONTRACTS EXCEEDING CERTAIN AMOUNT.— (1) IN GENERAL.—No contract involving expenditures in ex- cess of $1,000,000 during a 12-month period may be made unless the Mayor submits the contract to the Council for its approval and the Council approves the contract (in accordance

with criteria established by act of the Council).

(2) DEEMED APPROVAL.—For purposes of paragraph (1), the

Council shall be deemed to approve a contract if—

(A) during the 10-day period beginning on the date the

Mayor submits the contract to the Council, no member of

the Council introduces a resolution approving or disapproving the contract; or

(B) during the 45-calendar day period beginning on

the date the Mayor submits the contract to the Council,

the Council does not disapprove the contract.

(c)(1) The District may enter into multiyear contracts to obtain

goods and services for which funds would otherwise be available for

obligation only within the fiscal year for which appropriated.

(2) If the funds are not made available for the continuation of

such a contract into a subsequent fiscal year, the contract shall be

cancelled or terminated, and the cost of cancellation or termination

may be paid from—

(A) appropriations originally available for the performance

of the contract concerned;

(B) appropriations currently available for procurement of

the type of acquisition covered by the contract, and not otherwise obligated; or

(C) funds appropriated for those payments.

(3) No contract entered into under this subsection shall be

valid unless the Mayor submits the contract to the Council for its

approval and the Council approves the contract (in accordance with

criteria established by act of the Council). The Council shall be required to take affirmative action to approve the contract within 45

days. If no action is taken to approve the contract within 45 calendar days, the contract shall be deemed disapproved.11

(d) EXEMPTION FOR CERTAIN CONTRACTS.—The requirements of

this section shall not apply with respect to any of the following contracts:

(1) Any contract entered into by the Washington Convention Center Authority for preconstruction activities, project

management, design, or construction.

(2) Any contract entered into by the District of Columbia

Water and Sewer Authority established pursuant to the Water

and Sewer Authority Establishment and Department of Public

Works Reorganization Act of 1996, other than contracts for the

sale or lease of the Blue Plains Wastewater Treatment Plant.
Sec. 452 D.C. HOME RULE ACT 48

(3) At the option of the Council, any contract for a highway

improvement project carried out under title 23, United States

Code.

ANNUAL BUDGET FOR THE BOARD OF EDUCATION

SEC. 452. With respect to the annual budget for the Board of

Education in the District of Columbia, the Mayor and the Council

may establish the maximum amount of funds which will be allocated to the Board, but may not specify the purposes for which

such funds may be expended or the amount of such funds which

may be expended for the various programs under the jurisdiction

of the Board of Education. This section shall not apply with respect

to the annual budget for any fiscal year which is a control year (as

defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995).

REDUCTIONS IN BUDGETS OF INDEPENDENT AGENCIES

SEC. 453. (a) In accordance with subsection (b) and except as

provided in subsection (c), the Mayor may reduce amounts appropriated or otherwise made available to independent agencies of the

District of Columbia (including the Board of Education) for a fiscal

year if the Mayor determines that it is necessary to reduce such

amounts to balance the District’s budget for the fiscal year.

(b)(1) The Mayor may not make any reduction pursuant to subsection (a) unless the Mayor submits a proposal to make such a reduction to the Council and the Council approves the proposal.

(2) A proposal submitted by the Mayor under paragraph (1)

shall be deemed to be approved by the Council—

(A) if no member of the Council files a written objection to

the proposal with the Secretary of the Council before the expiration of the 10-day period that begins on the date the Mayor

submits the proposal; or

(B) if a member of the Council files such a written objection during the period described in subparagraph (A), if the

Council does not disapprove the proposal prior to the expiration of the 45-day period that begins on the date the member

files the written objection.

(3) The periods described in subparagraphs (A) and (B) of paragraph (2) shall not include any days which are days of recess for

the Council (according to the Council’s rules).

(c) Subsection (a) shall not apply to amounts appropriated or

otherwise made available to the Council, the District of Columbia

Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia Financial

Responsibility and Management Assistance Act of 1995, or the District of Columbia Water and Sewer Authority established pursuant

to the Water and Sewer Authority Establishment and Department

of Public Works Reorganization Act of 1996.

Subpart 2—Audits and Accountability Requirements

DISTRICT OF COLUMBIA AUDITOR

SEC. 455. (a) There is established for the District of Columbia

the Office of District of Columbia Auditor who shall be appointed
49 Sec. 456 D.C. HOME RULE ACT

by the Chairman, subject to the approval of a majority of the Council. The District of Columbia Auditor shall serve for a term of six

years and shall be paid at a rate of compensation as may be established from time to time by the Council.

(b) The District of Columbia Auditor shall each year conduct

a thorough audit of the accounts and operations of the government

of the District in accordance with such principles and procedures

and under such rules and regulations as he may prescribe. In the

determination of the auditing procedures to be followed and the extent of the examination of vouchers and other documents and

records, the District of Columbia Auditor shall give due regard to

generally accepted principles of auditing including the effectiveness

of the accounting organizations and systems, internal audit and

control, and related administrative practices.

(c) The District of Columbia Auditor shall have access to all

books, accounts, records, reports, findings and all other papers,

things, or property belonging to or in use by any department, agency, or other instrumentality of the District government and necessary to facilitate the audit.

(d) The District of Columbia Auditor shall submit his audit reports to the Congress, the Mayor, and the Council. Such reports

shall set forth the scope of the audits conducted by him and shall

include such comments and information as the District of Columbia

Auditor may deem necessary to keep the Congress, the Mayor, and

the Council informed of the operations to which the reports relate,

together with such recommendations with respect thereto as he

may deem advisable.

(e) The Council shall make such report, together with such

other material as it deems pertinent thereto, available for public

inspection.

(f) The Mayor shall state in writing to the Council, within an

appropriate time, what action he has taken to effectuate the recommendations made by the District of Columbia Auditor in his reports.

(g) This section shall not apply to the District of Columbia

Courts or the accounts and operations thereof.

PERFORMANCE AND FINANCIAL ACCOUNTABILITY

SEC. 456. (a) PERFORMANCE ACCOUNTABILITY PLAN.— (1) SUBMISSION OF ANNUAL PLAN.—Concurrent with the

submission of the District of Columbia budget to Congress each

year (beginning with 2001), the Mayor shall develop and submit to the Committee on Government Reform and Oversight of

the House of Representatives, the Committee on Governmental

Affairs of the Senate, the Committees on Appropriations of the

House of Representatives and the Senate, and the Comptroller

General a performance accountability plan for all departments,

agencies, and programs of the government of the District of Columbia for the subsequent fiscal year.

(2) CONTENTS OF PLAN.—The performance accountability

plan for a fiscal year shall contain the following:

(A) A statement of measurable, objective performance

goals established for all significant activities of the government of the District of Columbia during the fiscal year (including activities funded in whole or in part by the District
Sec. 456 D.C. HOME RULE ACT 50

but performed in whole or in part by some other public or

private entity).

(B) A description of the measures of performance to be

used in determining whether the government has met the

goals established under subparagraph (A) with respect to

an activity for a fiscal year. Such measures shall analyze

the quantity and quality of the activities involved, and

shall include measures of program outcomes and results.

(C) The title of the District of Columbia management

employee most directly responsible for the achievement of

each goal and the title of such employee’s immediate supervisor or superior.

(3) DESCRIPTION OF ACTIVITIES SUBJECT TO COURT

ORDER.—In addition to the material included in the performance accountability plan for a fiscal year under paragraph (2),

the plan shall include a description of the activities of the government of the District of Columbia that are subject to a court

order during the fiscal year and the requirements placed on

such activities by the court order.

(b) PERFORMANCE ACCOUNTABILITY REPORT.— (1) SUBMISSION OF REPORT.—Not later than March 1 of

each year (beginning with 2001), the Mayor shall develop and

submit to the Committee on Government Reform and Oversight of the House of Representatives, the Committee on Governmental Affairs of the Senate, the Committees on Appropriations of the House of Representatives and the Senate, and the

Comptroller General a performance accountability report on activities of the government of the District of Columbia during

the fiscal year ending on the previous September 30.

(2) CONTENTS OF REPORT.—The performance accountability

report for a fiscal year shall contain the following:

(A) For each goal of the performance accountability

plan submitted under subsection (a) for the year, a statement of the actual level of performance achieved compared

to the stated goal.

(B) The title of the District of Columbia management

employee most directly responsible for the achievement of

each goal and the title of such employee’s immediate supervisor or superior.

(C) A statement of the status of any court orders applicable to the government of the District of Columbia during the year and the steps taken by the government to

comply with such orders.

(3) EVALUATION OF REPORT.—The Comptroller General, in

consultation with the Director of the Office of Management and

Budget, shall review and evaluate each performance accountability report submitted under this subsection and not later

than April 15 of each year shall submit comments on such report to the Committee on Government Reform and Oversight

of the House of Representatives, the Committee on Governmental Affairs of the Senate, and the Committees on Appropriations of the House of Representatives and the Senate.

(c) FINANCIAL ACCOUNTABILITY PLAN AND REPORT.—

(1) DEVELOPMENT AND SUBMISSION.—Not later than March

1 of each year (beginning with 1997), the Chief Financial Offi-
51 Sec. 456 D.C. HOME RULE ACT

cer shall develop and submit to the Committee on Government

Reform and Oversight of the House of Representatives, the

Committee on Governmental Affairs of the Senate, the Committees on Appropriations of the House of Representatives and

the Senate, and the Comptroller General a 5-year financial

plan for the government of the District of Columbia that contains a description of the steps the government will take to

eliminate any differences between expenditures from, and revenues attributable to, each fund of the District of Columbia during the first 5 fiscal years beginning after the submission of

the plan.

(2) REPORT ON COMPLIANCE.—

(A) SUBMISSION OF REPORT.—Not later than March 1

of every year (beginning with 1999), the Chief Financial

Officer shall submit a report to the Committee on Government Reform and Oversight of the House of Representatives, the Committee on Governmental Affairs of the Senate, the Committees on Appropriations of the House of

Representatives and the Senate, the Comptroller General,

and the Director of the Congressional Budget Office on the

extent to which the government of the District of Columbia

was in compliance during the preceding fiscal year with

the applicable requirements of the financial accountability

plan submitted for such fiscal year under this subsection.

(B) EVALUATION OF REPORT.—The Comptroller General, in consultation with the Director of the Congressional

Budget Office, shall review and evaluate the financial accountability compliance report submitted under subparagraph (A) and not later than April 15 of each year shall

submit comments on such report to the Committee on Government Reform and Oversight of the House of Representatives, the Committee on Governmental Affairs of the Senate, and the Committees on Appropriations of the House of

Representatives and the Senate.

(d) QUARTERLY FINANCIAL REPORTS.—

(1) SUBMISSION OF QUARTERLY FINANCIAL REPORTS.—Not

later than fifteen days after the end of every calendar quarter

(beginning with a report for the quarter beginning October 1,

1997), the Chief Financial Officer shall submit to the Committee on Government Reform and Oversight of the House of

Representatives, the Committee on Governmental Affairs of

the Senate, and the Subcommittees on the District of Columbia

of the Committees on Appropriations of the House of Representatives and the Senate, a report on the financial and

budgetary status of the government of the District of Columbia

for the previous quarter.

(2) CONTENTS OF REPORT.—Each quarterly financial report

submitted under paragraph (1) shall include the following information:

(A) A comparison of actual to forecasted cash receipts

and disbursements for each month of the quarter, as presented in the District’s fiscal year consolidated cash forecast which shall be supported and accompanied by cash

forecasts for the general fund and each of the District gov-
Sec. 461 D.C. HOME RULE ACT 52

ernment’s other funds other than the capital projects fund

and trust and agency funds.

(B) A projection of the remaining months cash forecast

for that fiscal year.

(C) Explanations of (i) the differences between actual

and forecasted cash amounts for each of the months in the

quarter, and (ii) any changes in the remaining months

forecast as compared to the original forecast for such

months of that fiscal year.

(D) The effect of such changes, actual and projected,

on the total cash balance of the remaining months and for

the fiscal year.

(E) Explanations of the impact on meeting the budget,

how the results may be reflected in a supplemental budget

request, or how other policy decisions may be necessary

which may require the agencies to reduce expenditures in

other areas.

(F) An aging of the outstanding receivables and

payables, with an explanation of how they are reflected in

the forecast of cash receipts and disbursements.

(G) For each department or agency, the actual number

of full-time equivalent positions, the actual number of fulltime employees, the actual number of part-time employees,

and the actual number of temporary employees, together

with the source of funding for each such category of positions and employees.

(H) A statement of the balance of each account held by

the District of Columbia Financial Responsibility and Management Assistance Authority as of the end of the quarter,

together with a description of the activities within each

such account during the quarter based on information supplied by the Authority.

(e) SUBMISSION OF REPORTS TO DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY.—

In the case of any report submitted by the Mayor under this section for a fiscal year (or any quarter of a fiscal year) which is a control year under the District of Columbia Financial Responsibility

and Management Assistance Act of 1995, the Mayor shall submit

the report to the District of Columbia Financial Responsibility and

Management Assistance Authority established under section 101(a)

of such Act in addition to any other individual to whom the Mayor

is required to submit the report under this section.

PART E—BORROWING

Subpart 1—Borrowing

DISTRICT’S AUTHORITY TO ISSUE AND REDEEM GENERAL OBLIGATION

BONDS FOR CAPITAL PROJECTS

SEC. 461. (a)(1) Subject to the limitations in section 603(b), the

District may incur indebtedness by issuing general obligation

bonds to refund indebtedness of the District at any time outstanding, to finance the outstanding accumulated operating deficit

of the general fund of the District of $331,589,000, existing as of

September 30, 1990, to finance or refund the outstanding accumu-
53 Sec. 463 D.C. HOME RULE ACT

lated operating deficit of the general fund of the District of

$500,000,000, existing as of September 30, 1997, and to provide for

the payment of the cost of acquiring or undertaking its various capital projects. Such bonds shall bear interest, payable on such dates,

at such date or dates and at such maturities as the Mayor, subject

to the provisions of section 462 of this Act, may from time to time

determine to be necessary to make such bonds marketable.

(2) The District may not issue any general obligation bonds to

finance the operating deficit existing as of September 30, 1990 described in paragraph (1) after September 30, 1992.

(b) The District may reserve the right to redeem any or all of

its obligations before maturity in such manner and at such price

as may be fixed by the Mayor prior to the issuance of such obligations.

CONTENTS OF BORROWING LEGISLATION AND ELECTIONS ON ISSUING

GENERAL OBLIGATION BONDS

SEC. 462. (a) The Council may by act authorize the issuance of

general obligation bonds for the purposes specified in section 461.

Such an Act shall contain, at least, provisions—

(1) briefly describing the projects or categories of projects

to be financed by the Act;

(2) identifying the act authorizing each such project or category of projects;

(3) setting forth the maximum amount of the principal of

the indebtedness which may be incurred for the projects to be

financed;

(4) setting forth the maximum rate of interest to be paid

on such indebtedness;

(5) setting forth the maximum allowable maturity for the

issue and the maximum debt service payable in any year; and

(6) setting forth, in the event that the Council determines

in its discretion to submit the question of issuing such bonds

to a vote of the qualified voters of the District, the manner of

holding such election, the date of such election, the manner of

voting for or against the incurring of such indebtedness, and

the form of ballot to be used at such election.

(b) Any election held on the question of issuing general obligation bonds must be held before the act authorizing the issuance of

such bonds is transmitted to the Speaker of the House of Representatives and the President of the Senate pursuant to section

602(c).

(c) Notwithstanding section 602(c)(1), the provisions required

by paragraph (6) of subsection (a) to be included in any act authorizing the issuance of general obligation bonds shall take effect on

the date of the enactment of such act.

PUBLICATION OF BORROWING LEGISLATION

SEC. 463. (a) After each act of the Council of the District under

section 462(a) authorizing the issuance of general obligation bonds

has taken effect, the Mayor shall publish such act at least once in

at least one newspaper of general circulation within the District together with a notice that such act has taken effect. Each such notice shall be in substantially the following form:
Sec. 464 D.C. HOME RULE ACT 54

NOTICE

The following act of the Council of the District of Columbia

(published with this notice) authorizing the issuance of general

obligation bonds has taken effect. As provided in the District

of Columbia Self-Government and Governmental Reorganization Act, the time within which a suit, action, or proceeding

questioning the validity of such bonds may be commenced expires at the end of the twenty-day period beginning on the date

of the first publication of this notice.

,

Mayor.

(b) Neither the failure to publish the notice provided for in subsection (a) nor any error in any publication of such notice shall impair the effectiveness of the act of the Council authorizing the

issuance of such bonds or the validity of any bond issued pursuant

to such act.

SHORT PERIOD OF LIMITATION

SEC. 464. (a) At the end of the twenty-day period beginning on

the date of the first publication pursuant to section 463(a) of the

notice that an act authorizing the issuance of general obligation

bonds has taken effect—

(1) any recital or statement of fact contained in such act

or in the preamble or title of such act shall be deemed to be

true for the purpose of determining the validity of the bonds

authorized by such act, and the District and all others interested shall be estopped from denying any such recital or statement of fact; and

(2) such act, and all proceedings in connection with the authorization of the issuance of such bonds including any election

held on the question of issuing such bonds, shall be deemed to

have been duly and regularly taken, passed, and done by the

District, in compliance with this Act and all other applicable

laws, for the purpose of determining the validity of such act

and proceedings; and no court shall have jurisdiction in any

suit, action, or proceeding questioning the validity of such act

or proceedings except in a suit, action, or proceeding commenced before the end of such twenty-day period.

(b) At the end of the twenty-day period beginning on the date

of the first publication pursuant to section 463(a) of the notice that

an act authorizing the issuance of general obligation bonds has

taken effect, no court shall have jurisdiction in any suit, action, or

proceeding questioning the validity of any general obligation bond

issued pursuant to such act if—

(1) such general obligation bond was purchased in good

faith and for fair value; and

(2) such general obligation bond contains substantially the

following statement which shall bind the District of Columbia:

It is hereby certified and recited that all conditions, acts, and

things required by the District of Columbia Self-Government and

Governmental Reorganization Act and other applicable laws to

exist, to have happened, and to have been performed precedent to

and in the issuance of this bond exist, have happened, and have

been performed and that the issue bonds, of which this is one, to-
55 Sec. 467 D.C. HOME RULE ACT

12So in original. Probably should read ‘‘IN GENERAL’’.

gether with all other indebtedness of the District of Columbia, is

within every debt and other limit prescribed by law.

ISSUANCE OF GENERAL OBLIGATION BONDS

SEC. 465. (a) After an act of the Council authorizing the

issuance of general obligation bonds under section 461(a) takes effect, the Mayor may issue such general obligation bonds such act

of the Council. An issue of general obligation bonds may be all or

any part of the aggregate principal amount of bonds authorized by

such act.

(b) The principal amount of the general obligation bonds of

each issue shall be payable in annual installments beginning not

more than three years after the date of such bonds and ending not

more than thirty years after such date.

(c) The general obligation bonds of each issue shall be executed

by the manual or facsimile signature of such officials as may be

designated to sign such bonds by the act of the Council authorizing

the issuance of the bonds, except that at least one such signature

shall be manual. Coupons attached to the bonds shall be authenticated by the facsimile signature of the Mayor unless the Council

provides otherwise.

PUBLIC OR PRIVATE SALE

SEC. 466. General obligation bonds issued under this part may

be sold at a private sale on a negotiated basis (in such manner as

the Mayor may determine to be in the public interest), or may be

sold at public sale upon sealed proposals after publication of a notice of such public sale at least once not less than 10 days prior

to the date fixed for sale in a daily newspaper carrying municipal

bond notices and devoted primarily to financial news or to the subject of State and municipal bonds published in the city of New

York, New York, and in 1 or more newspapers of general circulation published in the District. Such notice of public sale shall state,

among other things, that no proposal shall be considered unless

there is deposited with the District as a down payment a certified

check, cashier’s check, or surety for an amount equal to at least 2

percent of the par amount of general obligation bonds bid for, and

the Mayor shall reserve the right to reject any and all bids.

AUTHORITY TO CREATE SECURITY INTERESTS IN DISTRICT REVENUES

SEC. 467. (a) IN GENERAL 12.—An act of the Council authorizing

the issuance of general obligation bonds or notes under section

461(a), section 471(a), section 472(a), or section 475(a) may create

a security interest in any District revenues as additional security

for the payment of the bonds or notes authorized by such act.

(b) CONTENTS OF ACTS.—Any such act creating a security interest in District revenues may contain provisions (which may be part

of the contract with the holders of such bonds or notes)—

(1) describing the particular District revenues which are

subject to such security interest;

(2) creating a reasonably required debt service reserve

fund or any other special fund;
Sec. 471 D.C. HOME RULE ACT 56

(3) authorizing the Mayor of the District to execute a trust

indenture securing the bonds or notes;

(4) vesting in the trustee under such a trust indenture

such properties, rights, powers, and duties in trust as may be

necessary, convenient, or desirable;

(5) authorizing the Mayor of the District to enter into and

amend agreements concerning—

(A) the custody, collection, use, disposition, security,

investment, and payment of the proceeds of the bonds or

notes and the District revenues which are subject to such

security interest; and

(B) the doing of any act (or the refraining from doing

any act) that the District would have the right to do in the

absence of such an agreement;

(6) prescribing the remedies of the holders of the bonds or

notes in the event of a default; and

(7) authorizing the Mayor to take any other actions in connection with the issuance, sale, delivery, security, and payment

of the bonds or notes.

(c) TIMING AND PERFECTION OF SECURITY INTERESTS.—Notwithstanding article 9 of title 28 of the District of Columbia Code,

any security interest in District revenues created under subsection

(a) shall be valid, binding, and perfected from the time such security interest is created, with or without the physical delivery of any

funds or any other property and with or without any further action.

Such security interest shall be valid, binding, and perfected whether or not any statement, document, or instrument relating to such

security interest is recorded or filed. The lien created by such security interest is valid, binding, and perfected with respect to any individual or legal entity having claims against the District, whether

or not such individual or legal entity has notice of such lien.

(d) OBLIGATIONS AND EXPENDITURES NOT SUBJECT TO APPRO- PRIATION.—The fourth sentence of section 446 shall not apply to

any obligation or expenditure of any District revenues to secure

any general obligation bond or note under subsection (a).

Subpart 2—Short-Term Borrowing

BORROWING TO MEET APPROPRIATIONS

SEC. 471. (a) In the absence of unappropriated revenues available to meet appropriations made pursuant to section 446, the

Council may by act authorize the issuance of general obligation

notes. The total amount of all such general obligation notes originally issued during a fiscal year shall not exceed 2 per centum of

the total appropriations for the District for such fiscal year.

(b) Any general obligation note issued under subsection (a), as

authorized by an act of the Council, may be renewed. Any such

note, including any renewal of such note, shall be due and payable

not later than the last day of the fiscal year occurring immediately

after the fiscal year during which the act authorizing the original

issuance of such note takes effect.

(c) The fourth sentence of section 446 shall not apply to any

amount obligated or expended by the District for the payment of

the principal of, interest on, or redemption premium for any general obligation note issued under subsection (a).
57 Sec. 475 D.C. HOME RULE ACT

BORROWING IN ANTICIPATION OF REVENUES

SEC. 472. (a) IN GENERAL.—In anticipation of the collection or

receipt of revenues for a fiscal year, the Council may by act authorize the issuance of general obligation notes for such fiscal year, to

be known as revenue anticipation notes.

(b) LIMIT ON AGGREGATE NOTES OUTSTANDING.—The total

amount of all revenue anticipation notes issued under subsection

(a) outstanding at any time during a fiscal year shall not exceed

20 percent of the total anticipated revenue of the District for such

fiscal year, as certified by the Mayor under this subsection. The

Mayor shall certify, as of a date which occurs not more than 15

days before each original issuance of such revenue anticipation

notes, the total anticipated revenue of the District for such fiscal

year.

(c) PERMITTED OUTSTANDING DURATION.—Any revenue anticipation note issued under subsection (a) may be renewed. Any such

note, including any renewal note, shall be due and payable not

later than the last day of the fiscal year during which the note was

originally issued.

(d) EFFECTIVE DATE OF AUTHORIZATION ACTS; PAYMENTS NOT

SUBJECT TO APPROPRIATION.—

(1) EFFECTIVE DATE.—Notwithstanding section 602(c)(1),

any act of the Council authorizing the issuance of revenue anticipation notes under subsection (a) shall take effect—

(A) if such act is enacted during a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of

1995), on the date of approval by the District of Columbia

Financial Responsibility and Management Assistance Authority; or

(B) if such act is enacted during any other year, on the

date of enactment of such act.

(2) PAYMENTS NOT SUBJECT TO APPROPRIATION.—The

fourth sentence of section 446 shall not apply to any amount

obligated or expended by the District for the payment of the

principal of, interest on, or redemption premium for any revenue anticipation note issued under subsection (a).

NOTES REDEEMABLE PRIOR TO MATURITY

SEC. 473. No notes issued pursuant to this part shall be made

payable on demand, but any note may be made subject to redemption prior to maturity on such notice and at such time as may be

stated in the note.

SALES OF NOTES

SEC. 474. All notes issued pursuant to this part may be sold

at not less than par and accrued interest at private sale without

previous advertising.

BOND ANTICIPATION NOTES

SEC. 475. (a) AUTHORIZING ISSUANCE.—

(1) IN GENERAL.—In anticipation of the issuance of general

obligation bonds, the Council may by act authorize the
Sec. 475 D.C. HOME RULE ACT 58

issuance of general obligation notes to be known as bond anticipation notes in accordance with this section.

(2) PURPOSES; PERMITTING ISSUANCE OF GENERAL OBLIGATION BONDS TO COVER INDEBTEDNESS.—The proceeds of bond

anticipation notes issued under this section shall be used for

the purposes for which general obligation bonds may be issued

under section 461, and such notes shall constitute indebtedness which may be refunded through the issuance of general

obligation bonds under such section.

(b) MAXIMUM ANNUAL DEBT SERVICE AMOUNT.—The Act of the

Council authorizing the issuance of bond anticipation notes shall

set forth for the bonds anticipated by such notes an estimated maximum annual debt service amount based on an estimated schedule

of annual principal payments and an estimated schedule of annual

interest payments (based on an estimated maximum average annual interest rate for such bonds over a period of 30 years from the

earlier of the date of issuance of the notes or the date of original

issuance of prior notes in anticipation of those bonds). Such estimated maximum annual debt service amount as estimated at the

time of issuance of the original bond anticipation notes shall be included in the calculation required by section 603(b) while such

notes or renewal notes are outstanding.

(c) PERMITTED OUTSTANDING DURATION.—Any bond anticipation note, including any renewal note, shall be due and payable not

later than the last day of the third fiscal year following the fiscal

year during which the note was originally issued.

(d) GENERAL AUTHORITY OF COUNCIL.—If provided for in Act of

the Council authorizing such an issue of bond anticipation notes,

bond anticipation notes may be issued in succession, in such

amounts, at such times, and bearing interest rates within the permitted maximum authorized by such Act.

(e) EFFECTIVE DATE OF AUTHORIZATION ACTS; PAYMENTS NOT

SUBJECT TO APPROPRIATION.—

(1) EFFECTIVE DATE.—Notwithstanding section 602(c)(1),

any act of the Council authorizing the renewal of bond anticipation notes under subsection (c) or the issuance of general obligation bonds under section 461(a) to refund any bond anticipation notes shall take effect—

(A) if such act is enacted during a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of

1995), on the date of approval by the District of Columbia

Financial Responsibility and Management Assistance Authority; or

(B) if such act is enacted during any other year, on the

date of enactment of such act.

(2) PAYMENT NOT SUBJECT TO APPROPRIATION.—The fourth

sentence of 446 shall not apply to any amount obligated or expended by the District for the payment of the principal of, interest on, or redemption premium for any bond anticipation

note issued under this section.
59 Sec. 483 D.C. HOME RULE ACT

Subpart 3—Payment of Bonds and Notes

SPECIAL TAX

SEC. 481. (a) Any Act of the Council authorizing the issuance

of general obligation bonds under section 461(a) shall provide for

the annual levy of a special tax or charge, if the Council determines that such tax or charge is necessary. Such tax or charge

shall be levied, without limitation as to rate or amount, in amounts

which together with other District revenues available and applicable will be sufficient to pay the principal of and interest on such

general obligation bonds as they become due and payable. Such tax

or charge shall be levied and collected at the same time and in the

same manner as other District taxes are levied and collected, and

when collected shall be set aside in a separate debt service fund

and irrevocably dedicated to the payment of such principal and interest.

(b) The Comptroller General of the United States shall make

annual audits of the amounts set aside and deposited in each debt

service fund pursuant to subsection (a).

FULL FAITH AND CREDIT OF THE DISTRICT

SEC. 482. The full faith and credit of the District is pledged for

the payment of the principal of and interest on any general obligation bond or note issued under section 461(a), section 471(a), or section 472(a), whether or not such pledge is stated in such bond or

note or in the act authorizing the issuance of such bond or note.

PAYMENT OF THE GENERAL OBLIGATION BONDS AND NOTES

SEC. 483. (a) The Council shall provide in each annual budget

for the District of Columbia government for a fiscal year adopted

by the Council pursuant to section 446 sufficient funds to pay the

principal of and interest on all general obligation bonds or notes

issued under section 461(a), section 471(a), or section 472(a) becoming due and payable during such fiscal year.

(b) The Mayor shall insure that the principal of and interest

on all general obligation bonds and notes issued under section

461(a), section 471(a), or section 472(a) are paid when due, including by paying such principal and interest from funds not otherwise

legally committed.

ø(c) Repealed¿

(d) The fourth sentence of section 446 shall not apply to—

(1) any amount set aside in a debt service fund under section 481(a);

(2) any amount obligated or expended for the payment of

the principal of, interest on, or redemption premium for any

general obligation bond or note issued under section 461(a),

section 471(a), or section 472(a);

(3) any amount obligated or expended as provided by the

Council in any annual budget for the District of Columbia government pursuant to subsection (a) or as provided by any

amendment or supplement to such budget; or

(4) any amount obligated or expended by the Mayor pursuant to subsection (b) or (c).
Sec. 484 D.C. HOME RULE ACT 60

Subpart 4—Full Faith and Credit of the United States

FULL FAITH AND CREDIT OF THE UNITED STATES NOT PLEDGED

SEC. 484. The full faith and credit of the United States is not

pledged for the payment of any principal of or interest on any bond,

note, or other obligation issued by the District under this part. The

United States is not responsible or liable for the payment of any

principal of or interest on any bond, note, or other obligation issued

by the District under this part.

Subpart 5—Tax Exemption; Legal Investment; Water Pollution;

Reservoirs; Metro Contributions; and Revenue Bonds

TAX EXEMPTION

SEC. 485. Bonds and notes issued by the Council pursuant to

this title and the interest thereon shall be exempt from all Federal

and District taxation except estate, inheritance, and gift taxes.

LEGAL INVESTMENT

SEC. 486. Notwithstanding any restriction on the investment of

funds by fiduciaries contained in any other law, all domestic insurance companies, domestic insurance associations, executors, administrators, guardians, trustees, and other fiduciaries within the District may legally invest any sinking funds, moneys, trust funds, or

other funds belonging to them or under or within their control in

any bonds issued pursuant to this title, it being the purpose of this

section to authorize the investment in such bonds or notes of all

sinking, insurance, retirement, compensation, pension, and trust

funds. National banking associations are authorized to deal in, underwrite, purchase and sell, for their own accounts or for the accounts of customers, bonds and notes issued by the Council to the

same extent as national banking associations are authorized by

paragraph seven of section 5136 of the Revised Statutes (12 U.S.C.

24), to deal in, underwrite, purchase and sell obligations of the

United States, States or political subdivision thereof. All Federal

building and loan associations and Federal savings and loan associations; and banks, trust companies, building and loan associations, and savings and loan associations, domiciled in the District,

may purchase, sell, underwrite, and deal in, for their own account

or for the account of others, all bonds or notes issued pursuant to

this title. Nothing contained in this section shall be construed as

relieving any person, firm, association, or corporation from any

duty of exercising due and reasonable care in selecting securities

for purchase or investment.

WATER POLLUTION

SEC. 487. (a) The Mayor shall annually estimate the amount

of the District’s principal and interest expense which is required to

service District obligations attributable to the Maryland and Virginia pro rata share of District sanitary sewage water works and

other water pollution projects which provide service to the local jurisdictions in those States. Such amounts as determined by the

Mayor pursuant to the agreements described in subsection (b) shall

be used to exclude the Maryland and Virginia share of pollution
61 Sec. 490 D.C. HOME RULE ACT

projects cost from the limitation on the District’s capital project obligations as provided in section 603(b).

(b) The Mayor shall enter into agreements with the States and

local jurisdictions concerned for annual payments to the District of

rates and charges for waste treatment services in accordance with

the use and benefits made and derived from the operation of the

said waste treatment facilities. Each such agreement shall require

that the estimated amount of such rates and charges will be paid

in advance, subject to adjustment after each year. Such rates and

charges shall be sufficient to cover the cost of construction, interest

on capital, operation and maintenance, and the necessary replacement of equipment during the useful life of the facility.

COST OF RESERVOIRS ON POTOMAC RIVER

SEC. 488. (a) The Mayor is authorized to contract with the

United States, and State in the Potomac River Basin, any agency

or political subdivision thereof, and any other competent State or

local authority, with respect to the payment by the District to the

United States, either directly or indirectly, of the District’s equitable share of any part or parts of the non-Federal portion of the

costs of any reservoirs authorized by the Congress for construction

on the Potomac River or any of its tributaries. Every such contract

may contain such provisions as the Mayor may deem necessary or

appropriate.

(b) Unless hereafter otherwise provided by legislation enacted

by the Council, all payments made by the District and all moneys

received by the District pursuant to any contract made under the

authority of this Act shall be paid from, or be deposited in, a fund

designated by the Mayor. Charges for water delivered from the District water system for use outside the District may be adjusted to

reflect the portions of any payments made by the District under

contracts authorized by this Act which are equitably attributable to

such use outside the District.

DISTRICT’S CONTRIBUTIONS TO THE WASHINGTON METROPOLITAN

AREA TRANSIT AUTHORITY

SEC. 489. Notwithstanding any provision of law to the contrary, beginning with fiscal year 1976 the District share of the cost

of the Adopted Regional System described in the National Capital

Transportation Act of 1969 (83 Stat. 320), may be payable from the

proceeds of the sale of District general obligation bonds issued pursuant to this title.

REVENUE BONDS AND OTHER OBLIGATIONS

SEC. 490. (a)(1) Subject to paragraph (2), the Council may by

act or by resolution authorize the issuance of taxable and tax-exempt revenue bonds, notes, or other obligations to borrow money

to finance, refinance, or reimburse and to assist in the financing,

refinancing, or reimbursing of or for capital projects and other undertakings by the District or by any District instrumentality, or on

behalf of any qualified applicant, including capital projects or undertakings in the areas of housing; health facilities; transit and

utility facilities; manufacturing; sports, convention, and entertainment facilities; recreation, tourism and hospitality facilities; facili-
Sec. 490 D.C. HOME RULE ACT 62

13The margin of paragraph (4)(A) as in orignal, as amended by section 11508(1)(B) of Public

Law 105–33.

ties to house and equip operations of the District government or its

instrumentalities; public infrastructure development and redevelopment; elementary, secondary and college and university facilities;

educational programs which provide loans for the payment of educational expenses for or on behalf of students; facilities used to

house and equip operations related to the study, development, application, or production of innovative commercial or industrial technologies and social services; water and sewer facilities (as defined

in paragraph (5)); pollution control facilities; solid and hazardous

waste disposal facilities; parking facilities, industrial and commercial development; authorized capital expenditures of the District;

and any other property or project that will, as determined by the

Council, contribute to the health, education, safety, or welfare, of,

or the creation or preservation of jobs for, residents of the District,

or to economic development of the District, and any facilities or

property, real or personal, used in connection with or

supplementing any of the foregoing; lease-purchase financing of

any of the foregoing facilities or property; and any costs related to

the issuance, carrying, security, liquidity or credit enhancement of

or for revenue bonds, notes, or other obligations, including, capitalized interest and reserves, and the costs of bond insurance, letters

of credit, and guaranteed investment, forward purchase, remarketing, auction, and swap agreements. Any such financing, refinancing, or reimbursement may be effected by loans made directly

or indirectly to any individual or legal entity, by the purchase of

any mortgage, note, or other security, or by the purchase, lease, or

sale of any property.

(2) Any revenue bond, note, or other obligation issued under

paragraph (1) shall be a special obligation of the District and shall

be a negotiable instrument, whether or not such revenue bond,

note, or other obligation is a security as defined in section 28:8-

102(1)(a) of title 28 of the District of Columbia Code.

(3) Any revenue bond, note, or other obligation issued under

paragraph (1) shall be paid and secured (as to principal, interest,

and any premium) as provided by the act or resolution of the Council authorizing the issuance of such revenue bond, note, or other obligation. Any act or resolution of the Council, or any delegation of

Council authority under subsection (a)(6), authorizing the issuance

of revenue bonds, notes, or other obligations may provide for (A)

the payment of such revenue bonds, notes, or other obligations

from any available revenues, assets, property (including water and

sewer enterprise fund revenues, assets, or other property in the

case of bonds, notes, or obligations issued with respect to water and

sewer facilities), and (B) the securing of such revenue bond, note,

or other obligation by the mortgage of real property or the creation

of a security interest in available revenues, assets, or other property (including water and sewer enterprise fund revenues, assets,

or other property in the case of bonds, notes, or obligations issued

with respect to water and sewer facilities).

(4)(A) 13 In authorizing the issuance of any revenue bond,

note, or other obligation under paragraph (1), the Council may

enter into, or authorize the Mayor to enter into, any agreement
63 Sec. 490 D.C. HOME RULE ACT

14The margin of paragraph (6) as in original, as amended by section 11508(1)(C) of Public

Law 105–33

concerning the acquisition, use, or disposition of any available

revenues, assets, or property. Any such agreement may create

a security interest in any available revenues, assets, or property, may provide for the custody, collection, security, investment, and payment of any available revenues (including any

funds held in trust) for the payment of such revenue bond,

note, or other obligation, may mortgage any property, may provide for the acquisition, construction, maintenance, and disposition of the undertaking financed or refinanced using the

proceeds of such revenue bond, note, or other obligation, and

may provide for the doing of any act (or the refraining from

doing of any act) which the District has the right to do in the

absence of such agreement. Any such agreement may be assigned for the benefit of, or made a part of any contract with,

any holder of such revenue bond, note, or other obligation

issued under paragraph (1).

(B) Notwithstanding article 9 of title 28 of the District of Columbia Code, any security interest created under subparagraph (A)

shall be valid, binding, and perfected from the time such security

interest is created, with or without the physical delivery of any

funds or any other property and with or without any further action.

Such security interest shall be valid, binding, and perfected whether or not any statement, document, or instrument relating to such

security interest is recorded or filed. The lien created by such security interest is valid, binding, and perfected with respect to any individual or legal entity having claims against the District, whether

or not such individual or legal entity has notice of such item.

(C) Any funds of the District held for the payment or security

of any revenue bond, note, or other obligation issued under paragraph (1), whether or not such funds are held in trust, may be secured in the manner agreed to by the District and any depository

of such funds. Any depository of such funds may give security for

the deposit of such funds.

(5) In paragraph (1), the term ‘‘water and sewer facilities’’

means facilities for the obtaining, treatment, storage, and distribution of water, the collection, storage, treatment, and transportation

of wastewater, storm drainage, and the disposal of liquids and solids resulting from treatment.

(6) 14 (A) The Council may by act delegate to any District

instrumentality the authority of the Council under subsection

(a)(1) to issue taxable or tax-exempt revenue bonds, notes, or

other obligations to borrow money for the purposes specified in

this subsection. For purposes of this paragraph, the Council

shall specify for what undertakings revenue bonds, notes, or

other obligations may be issued under each delegation made

pursuant to this paragraph. Any District instrumentality may

exercise the authority and the powers incident thereto delegated to it by the Council as described in the first sentence of

this paragraph only in accordance with this paragraph and

shall be consistent with this paragraph and the terms of the

delegation.
Sec. 490 D.C. HOME RULE ACT 64

(B) Revenue bonds, notes, or other obligations issued by a

District instrumentality under a delegation of authority described in subparagraph (A) shall be issued by resolution of

that instrumentality, and any such resolution shall not be considered to be an act of the Council.

(C) Nothing in this paragraph shall be construed as restricting, impairing, or superseding the authority otherwise

vested by law in any District instrumentality.

(b) No property owned by the United States may be mortgaged

or made subject to any security interest to secure any revenue

bond, note, or other obligation issued under subsection (a)(1).

(c) Any and all such revenue bonds, notes, or other obligations

issued under subsection (a)(1) shall not be general obligations of

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

or taxing power of the District (other than with respect to any dedicated taxes) and shall not constitute a debt of the District, and

shall not constitute lending of the public credit for private undertakings for purposes of section 602(a)(2).

(d) Any and all such bonds, notes, or other obligations shall be

issued pursuant to an act of the Council without the necessity of

submitting the question of such issuance to the registered qualified

electors of the District for approval or disapproval.

(e) Any act of the Council authorizing the issuance of revenue

bonds, notes, or other obligations under subsection (a)(1) may—

(1) briefly describe the purpose for which such bonds,

notes, or other obligations are to be issued;

(2) identify the Act authorizing such purpose;

(3) prescribe the form, terms, provisions, manner, and

method of issuing and selling (including sale by negotiation or

by competitive bid) such bonds, notes, or other obligations;

(4) provide for the rights and remedies of the holders of

such bonds, notes, or other obligations upon default;

(5) prescribe any other details with respect to the issuance,

sale, or securing of such bonds, notes, or other obligations; and

(6) authorize the Mayor to take any actions in connection

with the issuance, sale, delivery, security, and payment of such

bonds, notes, or other obligations, including the prescribing of

any terms or conditions not contained in such act of the Council.

(f) The fourth sentence of section 446 shall not apply to—

(1) any amount (including the amount of any accrued interest or premium) obligated or expended from the proceeds of

the sale of any revenue bond, note, or other obligations issued

under subsection (a)(1);

(2) any amount obligated or expended for the payment of

the principal of, interest on, or any premium for any revenue

bond, note, or other obligation issued under subsection (a)(1);

(3) any amount obligated or expended pursuant to provisions made to secure any revenue bond, note, or other obligations issued under subsection (a)(1); and

(4) any amount obligated or expended pursuant to commitments made in connection with the issuance of revenue bonds,

notes, or other obligations for repair, maintenance, and capital

improvements relating to undertakings financed through any
65 Sec. 490 D.C. HOME RULE ACT

revenue bond, note, or other obligation issued under subsection

(a)(1).

(g)(1) The Council may delegate to any housing finance agency

established by it (whether established before or after the date of

the enactment of this subsection) the authority of the Council

under subsection (a) to issue revenue bonds, notes, and other obligations to borrow money to finance or assist in the financing of undertakings in the area of primarily low- and moderate-income housing. The Council shall define for the purposes of the preceding sentence what undertakings shall constitute undertakings in the area

of primarily low- and moderate-income housing. Any such housing

finance agency may exercise authority delegated to it by the Council as described in the first sentence of this paragraph (whether

such delegation is made before or after the date of the enactment

of this subsection) only in accordance with this subsection.

(2) Revenue bonds, notes, and other obligations issued by a

housing finance agency of the District under a delegation of authority described in paragraph (1) shall be issued by resolution of the

agency, and any such resolution shall not be considered to be an

act of the Council.

(3) The fourth sentence of section 446 shall not apply to—

(A) any amount (including the amount of any accrued interest or premium) obligated or expended from the proceeds of

the sale of any revenue bond, note, or other obligation issued

under subsection (g)(1);

(B) any amount obligated or expended for the payment of

the principal of, interest on, or any premium for any revenue

bond, note, or other obligation issued under subsection (g)(1);

and

(C) any amount obligated or expended to secure any revenue bond, note, or other obligation issued under subsection

(g)(1).

(h)(1) The Council may delegate to the District of Columbia

Water and Sewer Authority established pursuant to the Water and

Sewer Authority Establishment and Department of Public Works

Reorganization Act of 1996 the authority of the Council under subsection (a) to issue revenue bonds, notes, and other obligations to

borrow money to finance or assist in the financing or refinancing

of undertakings in the area of utilities facilities, pollution control

facilities, and water and sewer facilities (as defined in subsection

(a)(5)). The Authority may exercise authority delegated to it by the

Council as described in the first sentence of this paragraph (whether such delegation is made before or after the date of the enactment of this subsection) only in accordance with this subsection.

(2) Revenue bonds, notes, and other obligations issued by the

District of Columbia Water and Sewer Authority under a delegation of authority described in paragraph (1) shall be issued by resolution of the Authority, and any such resolution shall not be considered to be an act of the Council.

(3) The fourth sentence of section 446 shall not apply to—

(A) any amount (including the amount of any accrued interest or premium) obligated or expended from the proceeds of

the sale of any revenue bond, note, or other obligation issued

pursuant to this subsection;
Sec. 490 D.C. HOME RULE ACT 66

(B) any amount obligated or expended for the payment of

the principal of, interest on, or any premium for any revenue

bond, note, or other obligation issued pursuant to this subsection;

(C) any amount obligated or expended to secure any revenue bond, note, or other obligation issued pursuant to this

subsection; or

(D) any amount obligated or expended for repair, maintenance, and capital improvements to facilities financed pursuant to this subsection.

(i)(1) The Council may delegate to the District of Columbia Tobacco Settlement Financing Corporation (hereafter in this subsection referred to as the ‘‘Corporation’’) established pursuant to

the Tobacco Settlement Financing Act of 2000 the authority of the

Council under subsection (a) to issue revenue bonds, notes, and

other obligations which are used to borrow money to finance or assist in the financing or refinancing of capital projects and other undertakings of the District of Columbia and which are payable solely

from and secured by payments under the Master Tobacco Settlement Agreement. The Corporation may exercise authority delegated to it by the Council as described in the first sentence of this

paragraph (whether such delegation is made before or after the

date of the enactment of this subsection) only in accordance with

this subsection and the provisions of the Tobacco Settlement Financing Act of 2000.

(2) Revenue bonds, notes, and other obligations issued by the

Corporation under a delegation of authority described in paragraph

(1) shall be issued by resolution of the Corporation, and any such

resolution shall not be considered to be an act of the Council.

(3) The fourth sentence of section 446 shall not apply to—

(A) any amount (including the amount of any accrued interest or premium) obligated or expended from the proceeds of

the sale of any revenue bond, note, or other obligation issued

pursuant to this subsection;

(B) any amount obligated or expended for the payment of

the principal of, interest on, or any premium for any revenue

bond, note, or other obligation issued pursuant to this subsection;

(C) any amount obligated or expended to secure any revenue bond, note, or other obligation issued pursuant to this

subsection; or

(D) any amount obligated or expended for repair, maintenance, and capital improvements to facilities financed pursuant to this subsection.

(4) In this subsection, the term ‘‘Master Tobacco Settlement

Agreement’’ means the settlement agreement (and related documents), as may be amended from time to time, entered into on November 23, 1998, by the District of Columbia and leading United

States tobacco product manufacturers.

(j) The revenue bonds, notes, or other obligations issued under

subsection (a)(1) are not general obligation bonds of the District

government and shall not be included in determining the aggregate

amount of all outstanding obligations subject to the limitation specified in section 603(b).
67 Sec. 490 D.C. HOME RULE ACT

(k) The issuance of revenue bonds, notes, or other obligations

by the District where the ultimate obligation to repay such revenue

bonds, notes, or other obligations is that of one or more non-governmental persons or entities may be authorized by resolution of the

Council. The issuance of all other revenue bonds, notes, or other

obligations by the District shall be authorized by act of the Council.

(l) During any control period (as defined in section 209 of the

District of Columbia Financial Responsibility and Management Assistance Act of 1995), any act or resolution of the Council authorizing the issuance of revenue bonds, notes, or other obligations

under subsection (a)(1) shall be submitted to the District of Columbia Financial Responsibility and Management Assistance Authority

for certification in accordance with section 204 of that Act. Any certification issued by the Authority during a control period shall be

effective for purposes of this subsection for revenue bonds, notes,

or other obligations issued pursuant to such act or resolution of the

Council whether the revenue bonds, notes, or other obligations are

issued during or subsequent to that control period.

(m) The following provisions of law shall not apply with respect

to property acquired, held, and disposed of by the District in accordance with the terms of any lease-purchase financing authorized

pursuant to subsection (a)(1):

(1) The Act entitled ‘‘An Act authorizing the sale of certain

real estate in the District of Columbia no longer required for

public purposes’’, approved August 5, 1939 (53 Stat. 1211; DC

Code sec. 9–401 et seq.).

(2) Subchapter III of chapter 13 of title 16, District of Columbia Code.

(3) Any other provision of District of Columbia law that

prohibits or restricts lease-purchase financing.

(n) For purposes of this section, the following definitions shall

apply:

(1) The term ‘‘revenue bonds, notes, or other obligations’’

means special fund bonds, notes, or other obligations (including

refunding bonds, notes, or other obligations) used to borrow

money to finance, assist in financing, refinance, or repay, restore or reimburse moneys used for purposes referred to in

subsection (a)(1) the principal of and interest, if any, on which

are to be paid and secured in the manner described in this section and which are special obligations and to which the full

faith and credit of the District of Columbia is not pledged.

(2) The term ‘‘District instrumentality’’ means any agency

or instrumentality (including an independent agency or instrumentality), authority, commission, board, department, division,

office, body, or officer of the District of Columbia government

duly established by an act of the Council or by the laws of the

United States, whether established before or after the date of

enactment of the District of Columbia Bond Financing Improvements Act of 1997.

(3) The term ‘‘available revenues’’ means gross revenues

and receipts, other than general fund tax receipts, lawfully

available for the purpose and not otherwise exclusively committed to another purpose, including enterprise funds, grants,

subsidies, contributions, fees, dedicated taxes and fees, invest-
Sec. 491 D.C. HOME RULE ACT 68

ment income and proceeds of revenue bonds, notes, or other obligations issued under this section.

(4) The term ‘‘enterprise fund’’ means a fund or account for

operations that are financed or operated in a manner similar

to private business enterprises, or established so that separate

determinations may more readily be made periodically of revenues earned, expenses incurred, or net income for management

control, accountability, capital maintenance, public policy, or

other purposes.

(5) The term ‘‘dedicated taxes and fees’’ means taxes and

surtaxes, portions thereof, tax increments, or payments in lieu

of taxes, and fees that are dedicated pursuant to law to the

payment of the debt service on revenue bonds, notes, or other

obligations authorized under this section, the provision and

maintenance of reserves for that purpose, or the provision of

working capital for or the maintenance, repair, reconstruction

or improvement of the undertaking to which the revenue

bonds, notes, or other obligations relate.

(6) The term ‘‘tax increments’’ means taxes, other than the

special tax provided for in section 481 and pledged to the payment of general obligation indebtedness of the District, allocable to the increase in taxable value of real property or the

increase in sales tax receipts, each from a certain date or

dates, in prescribed areas, to the extent that such increases are

not otherwise exclusively committed to another purpose and as

further provided for pursuant to an act of the Council.

PART F—INDEPENDENT AGENCIES

BOARD OF ELECTIONS

SEC. 491. Section 3 of the District of Columbia Elections Act

(D.C. Code, sec. 1–1103) is amended to read as follows:

‘‘SEC. 3. (a) There is created a District of Columbia Board of

Elections (hereafter in this section referred to as the ‘Board’), to be

composed of three members, no more than two of whom shall be

of the same political party, appointed by the Mayor, with the advice and consent of the Council. Members shall be appointed to

serve for terms of three years, except of the members first appointed under this Act. One member shall be appointed to serve for

a one-year term, one member shall be appointed to serve for a twoyear term, and one member shall be appointed to serve for a threeyear term, as designated by the Mayor.

‘‘(b) Any person appointed to fill a vacancy on the Board shall

be appointed only for the unexpired term of the member whose vacancy he is filling.

‘‘(c) A member may be reappointed, and, if not reappointed, the

member shall serve until his successor has been appointed and

qualifies.

‘‘(d) The Mayor shall, from time to time, designate the Chairman of the Board.’’

ZONING COMMISSION

SEC. 492. (a) The first section of the Act of March 1, 1920 (D.C.

Code, sec. 5–412) is amended to read as follows: ‘‘That (a) to protect

the public health, secure the public safety, and to protect property
69 Sec. 492 D.C. HOME RULE ACT

in the District of Columbia there is created a Zoning Commission

for the District of Columbia, which shall consist of the Architect of

the Capitol, the Director of the National Park Service, and three

members appointed by the Mayor, by and with the advice and consent of the Council. Each member appointed by the Mayor shall

serve for a term of four years, except of the members first appointed under this section—

‘‘(1) one member shall serve for a term of two years, as determined by the Mayor;

‘‘(2) one member shall serve for a term of three years, as

determined by the Mayor; and

‘‘(3) one member shall serve for a term of four years, as determined by the Mayor.

‘‘(b) Members of the Zoning Commission appointed by the

Mayor shall be entitled to receive compensation as determined by

the Mayor, with the approval of a majority of the Council. The remaining members shall serve without additional compensation.

‘‘(c) Members of the Zoning Commission appointed by the

Mayor may be reappointed. Each member shall serve until his successor has been appointed and qualifies.

‘‘(d) The Chairman of the Zoning Commission shall be selected

by the members.

‘‘(e) The Zoning Commission shall exercise all the powers and

perform all the duties with respect to zoning in the District as provided by law.’’.

(b) The Act of June 20, 1938 (D.C. Code, sec. 5–413, et seq.)

is amended as follows:

(1) The first sentence of section 2 of such Act (D.C. Code, sec.

5–414) is amended by striking out ‘‘Such regulations shall be made

in accordance with a comprehensive plan and’’ and inserting in lieu

thereof ‘‘Zoning maps and regulations, and amendments thereto,

shall not be inconsistent with the comprehensive plan for the National Capital, and zoning regulations shall be’’.

(2) Section 5 of such Act (D.C. Code, sec. 5–417) is amended

to read as follows:

‘‘SEC. 5 (a) No zoning regulation or map, or any amendment

thereto, may be adopted by the Zoning Commission until the Zoning Commission—

‘‘(1) has held a public hearing, after notice, on such proposed regulation, map, or amendment; and

‘‘(2) after such public hearing, submitted such proposed

regulation, map, or amendment to the National Capital Planning Commission for comment and review.

If the National Capital Planning Commission fails to submit its

comments regarding any such regulation, map, or amendment

within thirty days after submission of such regulation, map, or

amendment to it, then the Zoning Commission may proceed to act

upon the proposed regulation, map, or amendment without further

comment from the National Capital Planning Commission.

‘‘(b) The notice required by clause (1) of subsection (a) shall be

published at least thirty days prior to such public hearing and

shall include a statement as to the time and place of the hearing

and a summary of all changes in existing zoning regulations which

would be made by adoption of the proposed regulation, map, or

amendment. The Zoning Commission shall give such additional no-
Sec. 493 D.C. HOME RULE ACT 70

tice as it deems expedient and practicable. All interested persons

shall be given a reasonable opportunity to be heard at such public

hearing. If the hearing is adjourned from time to time, the time

and place of reconvening shall be publicly announced prior to adjournment.

‘‘(c) The Zoning Commission shall deposit with the National

Capital Planning Commission all zoning regulations, maps, or

amendments thereto, adopted by it.’’

PUBLIC SERVICE COMMISSION

SEC. 493. (a) There shall be a Public Service Commission

whose function shall be to insure that every public utility doing

business within the District of Columbia is required to furnish

service and facilities reasonably safe and adequate and in all respects just and reasonable. The charge made by any such public

utility for any facility or services furnished, or rendered, or to be

furnished or rendered, shall be reasonable, just, and nondiscriminatory. Every unjust or unreasonable or discriminating charge for

such facility or service is prohibited and is hereby declared unlawful.

(b) The first sentence of paragraph 97(a) of section 8 of the Act

of March 4, 1914 (making appropriations for the government of the

District of Columbia) (D.C. Code, sec. 43–201), is amended to read

as follows: ‘‘The Public Service Commission of the District of Columbia shall be composed of three Commissioners appointed by the

Mayor by and with the advice and consent of the Council.’’.

ARMORY BOARD

SEC. 494. The first sentence of section 2 of the Act of June 4,

1948 (D.C. Code, sec. 2–1702), is amended to read as follows:

‘‘There is established in Armory Board, to be composed of the commanding general of the District of Columbia Militia, and two other

members appointed by the Mayor of the District of Columbia by

and with the advice and consent of the Council of the District of

Columbia. The members appointed by the Mayor shall each serve

for a term of four years beginning on the date such member qualifies.’’.

BOARD OF EDUCATION

SEC. 495. The control of the public schools in the District of Columbia is vested in a Board of Education to consist of eleven elected members, three of whom are to be elected at large, and one to

be elected from each of the eight school election wards established

under the District of Columbia Election Act. The election of the

members of the Board of Education shall be conducted on a nonpartisan basis and in accordance with such Act.
71 Sec. 602 D.C. HOME RULE ACT

15Section 11601(a)(1) of Public Law 105–33 repealed title V (relating to the annual Federal

payment to the District of Columbia), effective October 1, 1997.

[TITLE V—REPEALED 15]

TITLE VI—RESERVATION OF CONGRESSIONAL AUTHORITY

RETENTION OF CONSTITUTIONAL AUTHORITY

SEC. 601. Notwithstanding any other provision of this Act, the

Congress of the United States reserves the right, at any time, to

exercise its constitutional authority as legislature for the District,

by enacting legislation for the District on any subject, whether

within or without the scope of legislative power granted to the

Council by this Act, including legislation to amend or repeal any

law in force in the District prior to or after enactment of this Act

and any act passed by the Council.

LIMITATIONS ON THE COUNCIL

SEC. 602. (a) The Council shall have no authority to pass any

act contrary to the provisions of this Act except as specifically provided in this Act, or to—

(1) impose any tax on property of the United States or any

of the several States;

(2) lend the public credit for support of any private undertaking;

(3) enact any act, or enact any act to amend or repeal any

Act of Congress, which concerns the functions or property of

the United States or which is not restricted in its application

exclusively in or to the District;

(4) enact any act, resolution, or rule with respect to any

provision of title 11 of the District of Columbia Code (relating

to organization and jurisdiction of the District of Columbia

courts);

(5) impose any tax on the whole or any portion of the personal income, either directly or at the source thereof, of any individual not a resident of the District (the terms ‘‘individual’’

and ‘‘resident’’ to be understood for the purposes of this paragraph as they are defined in section 4 of title I of the District

of Columbia Income and Franchise Tax Act of 1947);

(6) enact any act, resolution, or rule which permits the

building of any structure within the District of Columbia in excess of the height limitations contained in section 5 of the Act

of June 1, 1910 (D.C. Code, sec. 5–405), and in effect on the

date of enactment of this Act;

(7) enact any act, resolution, or regulation with respect to

the Commission of Mental Health;

(8) enact any act or regulation relating to the United

States District Court for the District of Columbia or any other

court of the United States in the District other than the District courts, or relating to the duties or powers of the United

States attorney or the United States Marshal for the District

of Columbia;

(9) enact any act, resolution, or rule with respect to any

provision of title 23 of the District of Columbia Code (relating

to criminal procedure), or with respect to any provision of any
Sec. 602 D.C. HOME RULE ACT 72

law codified in title 22 or 24 of the District of Columbia Code

(relating to crimes and treatment of prisoners), or with respect

to any criminal offense pertaining to articles subject to regulation under chapter 32 of title 22 of the District of Columbia

Code, during the forty-eight full calendar months immediately

following the day on which the members of the Council first

elected pursuant to this Act take office; or

(10) enact any act, resolution, or rule with respect to the

District of Columbia Financial Responsibility and Management

Assistance Authority established under section 101(a) of the

District of Columbia Financial Responsibility and Management

Assistance Act of 1995.

(b) Nothing in this Act shall be construed as vesting in the District government any greater authority over the National Zoological

Park, the National Guard of the District of Columbia, the Washington Aqueduct, the National Capital Planning Commission, or,

except as otherwise specifically provided in this Act, over any Federal agency, than was vested in the Commissioner prior to the effective date of title IV of this Act.

(c)(1) Except acts of the Council which are submitted to the

President in accordance with the Budget and Accounting Act, 1921,

any act which the Council determines according to section 412(a),

should take effect immediately because of emergency circumstances, and acts proposing amendments to title IV of this Act

and except as provided in section 462(c) and section 472(d)(1), the

Chairman of the Council shall transmit to the Speaker of the

House of Representatives, and the President of the Senate a copy

of each act passed by the Council and signed by the Mayor, or vetoed by the Mayor and repassed by two-thirds of the Council

present and voting, each act passed by the Council and allowed to

become effective by the Mayor without his signature, and each initiated act and act subject to referendum which has been ratified by

a majority of the registered qualified electors voting on the initiative or referendum. Except as provided in paragraph (2), such act

shall take effect upon the expiration of the 30-calendar-day period

(excluding Saturdays, Sundays, and holidays, and any day on

which neither House is in session because of an adjournment sine

die, a recess of more than three days, or an adjournment of more

than three days) beginning on the day such act is transmitted by

the Chairman to the Speaker of the House of Representatives and

the President of the Senate, or upon the date prescribed by such

act, whichever is later, unless during such 30-day period, there has

been enacted into law a joint resolution disapproving such act. In

any case in which any such joint resolution disapproving such an

act has, within such 30-day period, passed both Houses of Congress

and has been transmitted to the President, such resolution, upon

becoming law, subsequent to the expiration of such 30-day period,

shall be deemed to have repealed such act, as of the date such resolution becomes law. The provisions of section 604, except subsections (d), (e), and (f) of such section, shall apply with respect to

any joint resolution disapproving any act pursuant to this paragraph.

(2) In the case of any such Act transmitted by the Chairman

with respect to any Act codified in title 22, 23, or 24 of the District

of Columbia Code, such act shall take effect at the end of the 60-
73 Sec. 603 D.C. HOME RULE ACT

day period beginning on the day such act is transmitted by the

Chairman to the Speaker of the House of Representatives and the

President of the Senate unless, during such 60-day period, there

has been enacted into law a joint resolution disapproving such act.

In any case in which any such joint resolution disapproving such

an act has, within such 60-day period, passed both Houses of Congress and has been transmitted to the President, such resolution,

upon becoming law subsequent to the expiration of such 60-day period shall be deemed to have repealed such act, as of the date such

resolution becomes law. The provisions of section 604, relating to

an expedited procedure for consideration of joint resolutions, shall

apply to a joint resolution disapproving such Act as specified in

this paragraph.

(3) The Council shall submit with each Act transmitted under

this subsection an estimate of the costs which will be incurred by

the District of Columbia as a result of the enactment of the Act in

each of the first 4 fiscal years for which the Act is in effect, together with a statement of the basis for such estimate.

BUDGET PROCESS; LIMITATIONS ON BORROWING AND SPENDING

SEC. 603. (a) Nothing in this Act shall be construed as making

any change in existing law, regulation, or basic procedure and practice relating to the respective roles of the Congress, the President,

the Federal Office of Management and Budget, and the Comptroller General of the United States in the preparation, review,

submission, examination, authorization, and appropriation of the

total budget of the District of Columbia government.

(b)(1) No general obligation bonds (other than bonds to refund

outstanding indebtedness) or Treasury capital project loans shall

be issued during any fiscal year in an amount which would cause

the amount of principal and interest required to be paid both serially and into a sinking fund in any fiscal year on the aggregate

amounts of all outstanding general obligation bonds and such

Treasury loans, to exceed 17 percent of the District revenues (less

any fees or revenues directed to servicing revenue bonds, any revenues, charges, or fees dedicated for the purposes of water and

sewer facilities described in section 490(a) (including fees or revenues directed to servicing or securing revenue bonds issued for

such purposes), retirement contributions, revenues from retirement

systems, and revenues derived from such Treasury loans and the

sale or general obligation or revenue bonds) which the Mayor estimates, and the District of Columbia Auditor certifies, will be credited to the District during the fiscal year in which the bonds will

be issued. Treasury capital project loans include all borrowing from

the United States Treasury, except those funds advanced to the

District by the Secretary of the Treasury under the provisions of

title VI of the District of Columbia Revenue Act of 1939.

(2) Obligations incurred pursuant to the authority contained in

the District of Columbia Stadium Act of 1957 (71 Stat. 619; D.C.

Code title 2, chapter 17, subchapter II), obligations incurred by the

agencies transferred or established by sections 201 and 202, whether incurred before or after such transfer or establishment, and obligations incurred pursuant to general obligation bonds of the District of Columbia issued prior to October 1, 1996, for the financing

of Department of Public Works, Water and Sewer Utility Adminis-
Sec. 603 D.C. HOME RULE ACT 74

tration capital projects, shall not be included in determining the

aggregate amount of all outstanding obligations subject to the limitation specified in the preceding subsection.

(3) The 17 percent limitation specified in paragraph (1) shall

be calculated in the following manner:

(A) Determine the dollar amount equivalent to 14 percent

of the District revenues (less any fees or revenues directed to

servicing revenue bonds, any revenues, charges, or fees dedicated for the purposes of water and sewer facilities described

in section 490(a) (including fees or revenues directed to servicing or securing revenue bonds issued for such purposes), retirement, contributions, revenues from retirement systems, and

revenues derived from such Treasury loans and the sale of general obligation or revenue bonds) which the Mayor estimates,

and the District of Columbia Auditor certifies, will be credited

to the District during the fiscal year for which the bonds will

be issued.

(B) Determine the actual total amount of principal and interest to be paid in each fiscal year for all outstanding general

obligation bonds (less the allocable portion of principal and interest to be paid during the year on general obligation bonds

of the District of Columbia issued prior to October 1, 1996, for

the financing of Department of Public Works, Water and Sewer

Utility Administration capital projects) and such Treasury

loans.

(C) Determine the amount of principal and interest to be

paid during each fiscal year over the term of the proposed general obligation bond or such Treasury loan to be issued.

(D) If in any one fiscal year the sum arrived at by adding

subparagraphs (B) and (C) exceeds the amount determined

under subparagraph (A), then the proposed general obligation

bond or such Treasury loan in subparagraph (C) cannot be

issued.

(c) Except as provided in subsection (f), the Council shall not

approve any budget which would result in expenditures being made

by the District Government, during any fiscal year, in excess of all

resources which the Mayor estimates will be available from all

funds available to the District for such fiscal year. The budget shall

identify any tax increases which shall be required in order to balance the budget as submitted. The Council shall be required to

adopt such tax increases to the extent its budget is approved.

(d) Except as provided in subsection (f), the Mayor shall not

forward to the President for submission to Congress a budget

which is not balanced according to the provision of subsection

603(c).

(e) Nothing in this Act shall be construed as affecting the applicability to the District government of the provisions of section

3679 of the Revised Statutes of the United States (31 U.S.C. 665),

the so-called Anti-Deficiency Act.

(f) In the case of a fiscal year which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995), the Council

may not approve, and the Mayor may not forward to the President,

any budget which is not consistent with the financial plan and
75 Sec. 603 D.C. HOME RULE ACT

budget established for the fiscal year under subtitle A of title II of

such Act.

CONGRESSIONAL ACTION ON CERTAIN DISTRICT MATTERS

SEC. 604. (a) This section is enacted by Congress—

(1) as an exercise of the rulemaking power of the Senate

and the House of Representatives, respectively, and as such

these provisions are deemed a part of the rule of each House

respectively, but applicable only with respect to the procedure

to be followed in that House in the case of resolutions described by this section; and they supersede other rules only to

the extent that they are inconsistent therewith; and

(2) with full recognition of the constitutional right of either

House to change the rule (so far as relating to the procedure

of that House) at any time, in the same manner and to the

same extent as in the case of any other rule of that House.

(b) For the purpose of this section, ‘‘resolution’’ means only a

joint resolution, the matter after the resolving clause of which is

as follows: ‘‘That the approves/disapproves of the action of the District of Columbia Council described as follows:

.’’, the blank spaces therein being appropriately filled,

and either approval or disapproval being appropriately indicated;

but does not include a resolution which specifies more than one action.

(c) A resolution with respect to Council action shall be referred

to the Committee on the District of Columbia of the House of Representatives, or the Committee on the District of Columbia of the

Senate, by the President of the Senate or the Speaker of the House

of Representatives, as the case may be.

(d) If the committee to which a resolution has been referred

has not reported it at the end of twenty calendar days after its introduction, it is in order to move to discharge the committee from

further consideration of any other resolution with respect to the

same Council action which has been referred to the committee.

(e) A motion to discharge may be made only by an individual

favoring the resolution, is highly privileged (except that it may not

be made after the committee has reported a resolution with respect

to the same action), and debate thereon shall be limited to not

more than one hour, to be divided equally between those favoring

and those opposing the resolution. An amendment to the motion is

not in order, and it is not in order to move to reconsider the vote

by which the motion is agreed to or disagreed to.

(f) If the motion to discharge is agreed to or disagreed to, the

motion may not be renewed, nor may another motion to discharge

the committee be made with respect to any other resolution with

respect to the same action.

(g) When the committee has reported, or has been discharged

from further consideration of, a resolution, it is at any time thereafter in order (even though a previous motion to the same effect

has been disagreed to) to move to proceed to the consideration of

the resolution. The motion is highly privileged and is not debatable. An amendment to the motion is not in order, and it is not in

order to move to reconsider the vote by which the motion is agreed

to or disagreed to.
Sec. 701 D.C. HOME RULE ACT 76

(h) Debate on the resolution shall be limited to not more than

ten hours, which shall be divided equally between those favoring

and those opposing the resolution. A motion further to limit debate

is not debatable. An amendment to, or motion to recommit, the resolution is not in order, and it is not in order to move to reconsider

the vote by which the resolution is agreed to or disagreed to.

(i) Motions to postpone made with respect to the discharge

from committee or the consideration of a resolution, and motions

to proceed to the consideration of other business, shall be decided

without debate.

(j) Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives,

as the case may be, to the procedure relating to a resolution shall

be decided without debate.

TITLE VII—REFERENDUM; SUCCESSION IN GOVERNMENT;

TEMPORARY PROVISIONS; MISCELLANEOUS; AMENDMENTS TO DISTRICT OF COLUMBIA ELECTION ACT;

RULES OF CONSTRUCTION; AND EFFECTIVE DATES

PART A—CHARTER REFERENDUM

REFERENDUM

SEC. 701. On a date to be fixed by the Board of Elections, not

more than five months after the date of enactment of this Act, a

referendum (in this part referred to as the ‘‘charter referendum’’)

shall be conducted to determine whether the registered qualified

electors of the District accept the charter set forth as title IV of this

Act.

BOARD OF ELECTIONS AUTHORITY

SEC. 702. (a) The Board of Elections shall conduct the charter

referendum and certify the results thereof as provided in this part.

(b) Notwithstanding the fact that such section does not otherwise take effect unless the charter is accepted under this title, the

applicable provisions of part E of title VII of this Act shall govern

the Board of Elections in the performance of its duties under this

Act.

REFERENDUM BALLOT AND NOTICE OF VOTING

SEC. 703. (a) The charter referendum ballot shall contain the

following, with a blank space appropriately filled:

‘‘The District of Columbia Self-Government and Governmental

Reorganization Act, enacted , proposes to establish a

charter for the governance of the District of Columbia, but provides

that the charter shall take effect only if it is accepted by a majority

of the registered qualified voters of the District voting on this

issue.

‘‘Indicate in one of the squares provided below whether you are

for or against the charter.

‘‘For the charter

‘‘Against the charter.

‘‘In addition, the Act referred to above authorizes the establishment of advisory neighborhood councils if a majority of the reg-
77 Sec. 712 D.C. HOME RULE ACT

istered qualified voters of the District voting on this issue in this

referendum vote for the establishment of such councils.

‘‘Indicate in one of the squares provided below whether you

are for or against the establishment of Advisory Neighborhood

Councils.

‘‘For Advisory Neighborhood Councils

‘‘Against Advisory Neighborhood Councils.’’.

(b) Voting may be by paper ballot or by voting machine. The

Board of Elections may make such changes in the second and

fourth paragraphs of the charter referendum ballot as it determines to be necessary to permit the use of voting machines if such

machines are used.

(c) Not less than five days before the date of the charter referendum, the Board of Elections shall mail to each registered qualified elector (1) a sample of the charter referendum ballot, and (2)

information showing the polling place of such elector and the date

and hours of voting.

(d) Not less than one day before the charter referendum, the

Board of Elections shall publish, in one or more newspapers of general circulation published in the District, a list of the polling places

and the date and hours of voting.

ACCEPTANCE OR NONACCEPTANCE OF CHARTER

SEC. 704. (a) If a majority of the registered qualified electors

voting in the charter referendum vote for the charter, the charter

shall be considered accepted as of the time the Board of Elections

certifies the result of the charter referendum to the President of

the United States, as provided in subsection (b).

(b) The Board of Elections shall, within a reasonable time, but

in no event more than thirty days after the date of the charter referendum, certify the results of the charter referendum to the President of the United States and to the Secretary of the Senate and

the Clerk of the House of Representatives.

PART B—SUCCESSION IN GOVERNMENT

ABOLISHMENT OF EXISTING GOVERNMENT AND TRANSFER OF

FUNCTIONS

SEC. 711. The District of Columbia Council, the offices of

Chairman of the District of Columbia Council, Vice Chairman of

the District of Columbia Council, and the seven other members of

the District of Columbia Council, and the offices of the Commissioner of the District of Columbia and Assistant to the Commissioner of the District of Columbia, as established by Reorganization

Plan Numbered 3 of 1967, are abolished as of noon January 2,

1975. This subsection shall not be construed to reinstate any governmental body or office in the District abolished in said plan or

otherwise heretofore.

CERTAIN DELEGATED FUNCTIONS AND FUNCTIONS OF CERTAIN

AGENCIES

SEC. 712. No function of the District of Columbia Council (established under Reorganization Plan Numbered 3 of 1967) or of the

Commissioner of the District of Columbia which such District of
Sec. 713 D.C. HOME RULE ACT 78

Columbia Council or Commissioner has delegated to an officer, employee, or agency (including any body of or under such agency) of

the District, nor any function now vested pursuant to section 501

of Reorganization Plan Numbered 3 of 1967 in the District Public

Service Commission, Zoning Advisory Council, Board of Zoning Adjustment, Office of the Recorder of Deeds, or Armory Board, or in

any officer, employee, or body of or under such agency, shall be

considered as a function transferred to the Council pursuant to section 404(a) of this Act. Each such function is hereby transferred to

the officer, employee, or agency (including any body of or under

such agency), to whom or to which it was delegated, or in whom

or in which it has remained vested, until the Mayor or Council established under this Act, or both, pursuant to the powers herein

granted, shall revoke, modify, or transfer such delegation or vesting.

TRANSFER OF PERSONNEL, PROPERTY, AND FUNDS

SEC. 713. (a) In each of the transfer, by any provision of this

Act, of functions to the Council, to the Mayor, or to any agency or

officer, there are hereby authorized to be transferred (as of the

time of such transfer of functions) to the Council, to the Mayor, to

such agency, or to the agency of which such officer is the head, for

use in the administration of the functions of the Council or such

agency or officer, the personnel (except the Commissioner of the

District of Columbia, the Assistant to the Commissioner, the Chairman of the District of Columbia Council, the Vice Chairman of the

District of Columbia Council, the other members thereof, all of

whose offices are abolished by this Act), property, records, and unexpended balances of appropriations and other funds which relate

primarily to the functions so transferred.

(b) If any question arises in connection with the carrying out

of subsection (a), such questions shall be decided—

(1) in the case functions transferred from a Federal officer

or agency, by the Director of the Office of Management and

Budget; and

(2) in the case of other functions (A) by the Council, or in

such manner as the Council shall provide, if such functions are

transferred to the Council, and (B) by the Mayor if such functions are transferred to him or to any other officer or agency.

(c) Any of the personnel authorized to be transferred to the

Council, the Mayor, or any agency by this section which the Council or the head of such agency shall find to be in excess of the personnel necessary for the administration of its or his function shall,

in accordance with law, be transferred to other positions in the District or Federal Government or be separated from the service.

(d) No officer or employee shall, by reason of his transfer to the

District government under this Act or his separation from service

under this Act, be deprived of any civil service rights, benefits, and

privileges held by him prior to such transfer or any right of appeal

or review he may have by reason of his separation from service.

EXISTING STATUTES, REGULATIONS, AND OTHER ACTIONS

SEC. 714. (a) Any statute, regulation, or other action in respect

of (and any regulation or other action issued, made, taken, or
79 Sec. 717 D.C. HOME RULE ACT

granted by) any officer or agency from which any function is transferred by this Act shall, except to the extent modified or made inapplicable by or under authority of law, continue in effect as if such

transfer had not been made; but after such transfer, references in

such statue, regulation, or other action to an officer or agency from

which a transfer is made by this Act shall be held and considered

to refer to the officer or agency to which the transfer is made.

(b) As used in subsection (a), the term ‘‘other action’’ includes

without limitation, any rule, order, contract, compact, policy, determination, directive, grant, authorization, permit, requirement, or

designation.

(c) Unless otherwise specifically provided in this Act, nothing

contained in this Act shall be construed as affecting the applicability to the District government of personnel legislation relating to

the District government until such time as the Council may otherwise elect to provide equal or equivalent coverage.

PENDING ACTIONS AND PROCEEDINGS

SEC. 715. (a) No suit, action, or other judicial proceeding lawfully commenced by or against any officer or agency in his or its

official capacity or in relation to the exercise of his or its official

functions, shall abate by reason of the taking effect of any provision

of this Act; but the court, unless it determines that the survival of

such suit, action, or other proceedings is not necessary for purposes

of settlement of the questions involved, shall allow the same to be

maintained, with such substitutions as to parties as are appropriate.

(b) No administrative action or proceeding lawfully commenced

shall abate solely by reason of the taking effect of any provision of

this Act, but such action or proceeding shall be continued with such

substitutions as to parties and officers or agencies as are appropriate.

VACANCIES RESULTING FROM ABOLISHMENT OF OFFICES OF

COMMISSIONER AND ASSISTANT TO THE COMMISSIONER

SEC. 716. Until the 1st day of July next after the first Mayor

takes office under this Act no vacancy occurring in any District

agency by reason of section 711, abolishing the offices of Commissioner of the District of Columbia and Assistant to the Commissioner, shall affect the power of the remaining members of such

agency to exercise its functions; but such agency may take action

only if a majority of the members holding office vote in favor of it.

STATUS OF THE DISTRICT

SEC. 717. (a) All of the territory constituting the permanent

seat of the Government of the United States shall continue to be

designated as the District of Columbia. The District of Columbia

shall remain and continue a body corporate, as provided in section

2 of the Revised Statutes relating to the District (D.C. Code, sec.

1–102). Said Corporation shall continue to be charged with all the

duties, obligations, responsibilities, and liabilities, and to be vested

with all the powers, rights, privileges, immunities, and assets, respectively, imposed upon and vested in said Corporation or the

Commissioner.
Sec. 718 D.C. HOME RULE ACT 80

(b) No law or regulation which is in force on the effective date

of title IV of this Act shall be deemed amended or repealed by this

Act except to the extent specifically provided herein or to the extent that such law or regulation is consistent with this Act, but any

such law or regulation may be amended or repealed by act or resolution as authorized in this Act, or by Act of Congress, except that,

notwithstanding the provisions of section 752 of this Act, such authority to repeal shall not be construed as authorizing the Council

to repeal or otherwise alter, by amendment or otherwise, any provision of subchapter III of chapter 73 of title 5, United States Code,

in whole or in part.

(c) Nothing contained in this section shall affect the boundary

line between the District of Columbia and the Commonwealth of

Virginia as the same was established or may be subsequently established under the provisions of title I of the Act of October 31,

1945 (59 Stat. 552).

CONTINUATION OF THE DISTRICT OF COLUMBIA COURT SYSTEM

SEC. 718. (a) The District of Columbia Court of Appeals, the

Superior Court of the District of Columbia, and the District of Columbia Commission on Judicial Disabilities and Tenure shall continue as provided under the District of Columbia Court Reorganization Act of 1970 subject to the provisions of part C of title IV of

this Act and section 602(a)(4).

(b) The term and qualifications of any judge of any District of

Columbia court, and the term and qualifications of any member of

the District of Columbia Commission on Judicial Disabilities and

Tenure appointed prior to the effective date of title IV of this Act

shall not be affected by the provisions of part C of title IV of this

Act. No provision of this Act shall be construed to extend the term

of any such judge or member of such Commission. Judges of the

District of Columbia courts and members of the District of Columbia Commission on Judicial Disabilities and Tenure appointed after

the effective date of title IV of this Act shall be appointed according

to part C of such title IV.

(c) Nothing in this Act shall be construed to amend, repeal, or

diminish the duties, rights, privileges, or benefits accruing under

sections 1561 through 1571 of title 11 of the District of Columbia

Code, and sections 703 and 904 of such title, dealing with the retirement and compensation of the judges of the District of Columbia courts.

CONTINUATION OF THE BOARD OF EDUCATION

SEC. 719. The term of any member elected to the District of

Columbia Board of Education, and the powers and duties of the

Board of Education, shall not be affected by the provisions of section 495. No provision of such section shall be construed to extend

the term of any such member or to terminate the term of any such

member.
81 Sec. 723 D.C. HOME RULE ACT

PART C—TEMPORARY PROVISIONS

POWERS OF THE PRESIDENT DURING TRANSITIONAL PERIOD

SEC. 721. The President of the United States is hereby authorized and requested to take such action during the period following

the date of the enactment of this Act and ending on the date of the

first meeting of the Council, by Executive order or otherwise, with

respect to the administration of the functions of the District government, as he deems necessary to enable the Board of Elections

properly to perform its functions under this Act.

REIMBURSABLE APPROPRIATIONS FOR THE DISTRICT

SEC. 722. (a) The Secretary of the Treasury is authorized to advance to the District of Columbia the sum of $750,000, out of any

money in the Treasury not otherwise appropriated, for use (1) in

paying the expenses of the Board of Elections (including compensation of the members thereof), and (2) in otherwise carrying into effect the provisions of this Act.

(b) The full amount expended out of the money advanced pursuant to this section shall be reimbursed to the United States,

without interest, during the second fiscal year which begins after

the effective date of title IV, from the general fund of the District.

INTERIM LOAN AUTHORITY

SEC. 723. (a) The Mayor is authorized to accept loans for the

District from the Treasury of the United States, and the Secretary

is authorized to lend to the Mayor, such sums as the Mayor may

determine are required to complete capital projects for which construction and construction services funds have been authorized or

appropriated, as the case be, by Congress prior to October 1, 1983,

or the date of enactment of the appropriation Act for the fiscal year

ending September 30, 1984, for the government of the District of

Columbia, whichever is later. In addition, such loans may include

funds to pay the District’s share of the cost of the adopted regional

system specified in the National Capital Transportation Act of

1969.

(b) Loans advanced pursuant to this section during any sixmonth period shall be at a rate of interest determined by the Secretary as of the beginning of such period, which, in his judgment,

would reflect the cost of money to the Treasury for borrowing at

a maturity approximately equal to the period of time the loan is

outstanding.

(c) Subject to the limitations contained in section 603(b), there

is authorized to be appropriated to make loans under this section

the sum of $155,000,000 for the fiscal year ending on September

30, 1982, the sum of $155,000,000 for the fiscal year ending on September 30, 1983, and the sum of $155,000,000 for the fiscal year

ending on September 30, 1984.

(d) The authority contained in this section to make loans shall

be effective for any fiscal year only to such extent or in such

amounts as are provided in appropriation Acts.
Sec. 724 D.C. HOME RULE ACT 82

POLITICAL PARTICIPATION IN CERTAIN ELECTIONS FIRST HELD UNDER

THIS ACT

SEC. 724. (a) In order to provide continuity in the government

of the District of Columbia during the transition from the appointed government to the elected government provided for under

this Act, no person employed by the United States or by the government of the District of Columbia shall be prohibited by reason

of such employment—

(1) from being a candidate in the first primary election and

general election held under this Act for the office of Mayor or

Chairman or member of the Council of the District of Columbia

provided for under title IV of this Act, and

(2) if such a candidate, from taking an active part in political management or political campaigns in any election referred to in paragraph (1) of this subsection.

(b) Such candidacy shall be deemed to have commenced on the

day such person obtains from the Board of Elections an official

nominating petition with his name stamped thereon, and shall

terminate—

(1) in the case of such candidate who ceases to be eligible

as a nominee for the office with respect to which such petition

was obtained by reason of his inability or failure to qualify as

a bona fide nominee prior to the expiration of the final date for

fling such petition under the election laws of the District of Columbia, on the day following such expiration date;

(2) in the case of such candidate who is elected to any such

office with respect to which such nominating petition was obtained, on the day such candidate takes office following the

election held with respect thereto;

(3) in the case of such candidate who is defeated in a primary election held to nominate candidates for the office with

respect to which such nominating petition was obtained, on the

expiration of the thirty day period following the date of such

primary election; and

(4) in the case of such candidate who fails to be elected in

a general election to any such office with respect to which such

nominating petition was obtained, on the expiration of the thirty day period following the date of such election.

(c) The provisions of this section shall terminate as of January

2, 1975.

PART D—MISCELLANEOUS

øSEC. 731 Repealed¿

PERSONAL INTEREST IN CONTRACTS OR TRANSACTIONS

SEC. 732. Any officer or employee of the District who is convicted of a violation of section 208 of title 18, United States Code,

shall forfeit his office or position.

COMPENSATION FROM MORE THAN ONE SOURCE

SEC. 733. (a) Except as provided in this Act, no person shall

be ineligible to serve or to receive compensation as a member of the

Board of Elections because he occupies another office or position or
83 Sec. 738 D.C. HOME RULE ACT

because he receives compensation (including retirement compensation) from another source.

(b) The right to another office or position or to compensation

from another source otherwise secured to such a person under the

laws of the United States shall not be abridged by the fact of his

service or receipt of compensation as a member of such Board, if

such service does not interfere with the discharge of his duties in

such other office or position.

ASSISTANCE OF THE UNITED STATES CIVIL SERVICE COMMISSION IN

DEVELOPMENT OF DISTRICT MERIT SYSTEM

SEC. 734. The United States Civil Service Commission is hereby authorized to advise and assist the Mayor and the Council in

the further development of the merit system or systems required

by section 422(3) and the said Commission is authorized to enter

into agreements with the District government to make available its

registers of eligibles as a recruiting source to fill District positions

as needed. The costs of any specific services furnished by the Civil

Service Commission may be compensated for under the provisions

of section 731 of this Act.

øSEC. 735 Repealed¿

øSEC. 736 Repealed¿

ADJUSTMENTS

SEC. 737. (a) Subject to section 731, the Mayor, with the approval of the Council, and the Director of the Office of Management

and Budget, is authorized and empowered to enter into an agreement or agreements concerning the manner and method by which

amounts owed by the District to the United States, or by the

United States to the District, shall be ascertained and paid.

(b) The United States shall reimburse the District for necessary expenses incurred by the District in connection with assemblages, marches, and other demonstrations in the District which relate primarily to the Federal Government. The manner and method

of ascertaining and paying the amounts needed to so reimburse the

District shall be determined by agreement entered into in accordance with subsection (a) of this section.

(c) Each officer and employee of the District required to do so

by the Council shall provide a bond with such surety and in such

amount as the Council may require. The premiums for all such

bonds shall be paid out of appropriations for the District.

ADVISORY NEIGHBORHOOD COUNCILS

SEC. 738. (a) The Council shall by act divide the District into

neighborhood council areas and, upon receiving a petition signed by

at least 5 per centum of the registered qualified electors of a neighborhood council area, shall establish for that neighborhood an elected advisory neighborhood council. In designating such neighborhoods, the Council shall consider natural geographic boundaries,

election districts, and divisions of the District made for the purpose

of administration of services.

(b) Elections for members of each advisory neighborhood council shall be nonpartisan, shall be scheduled to coincide with the

elections of members of the Board of Education held in the District,
Sec. 739 D.C. HOME RULE ACT 84

and shall be administered by the Board of Elections. Advisory

neighborhood council members shall be elected from single member

districts within each neighborhood council area by the registered

qualified electors thereof.

(c) Each advisory neighborhood council—

(1) may advise the District government on matters of public policy including decisions regarding planning, streets, recreation, social services programs, health, safety, and sanitation

in that neighborhood council area;

(2) may employ staff and expend, for public purposes within its neighborhood council area, public funds and other funds

donated to it; and

(3) shall have such other powers and duties as may be provided by act of the Council.

(d) In the manner provided by act of the Council, in addition

to any other notice required by law, timely notice shall be given to

each advisory neighborhood council of requested or proposed zoning

changes, variances, public improvements, licenses or permits of significance to neighborhood planning and development within its

neighborhood council area for its review, comment, and recommendation.

(e) In order to pay the expenses of the advisory neighborhood

councils, enable them to employ such staff as may be necessary,

and to conduct programs for the welfare of the people in a neighborhood council area, the District government shall apportion to

each advisory neighborhood council, out of the revenue of the District received from the tax on real property in the District including

improvements thereon, a sum not less than that part of such revenue raised by levying 1 cent per $100 of assessed valuation which

bears the same ratio to the full sum raised thereby as the population of the neighborhood bears to the population of the District.

The Council may authorize additional methods of financing advisory neighborhood councils.

(f) The Council shall by act make provisions for the handling

of funds and accounts by each advisory neighborhood council and

shall establish guidelines with respect to the employment of persons by each advisory neighborhood council which shall include fixing the status of such employees with respect to the District government, but all such provisions and guidelines shall be uniform

for all advisory neighborhood councils and shall provide that decisions to employ and discharge employees shall be made by the advisory neighborhood council. These provisions shall conform to the

extent practicable to the regular budgetary, expenditure and auditing procedures and the personnel merit system of the District.

(g) The Council shall have authority in accordance with the

provisions of this Act, to legislate with respect to the advisory

neighborhood councils established in this section.

(h) The foregoing provisions of this section shall take effect

only if agreed to in accordance with the provisions of section 703(a)

of this Act.

NATIONAL CAPITAL SERVICE AREA

SEC. 739. (a) There is established within the District of Columbia the National Capital Service Area which shall include, subject

to the following provisions of this section, the principal Federal
85 Sec. 739 D.C. HOME RULE ACT

monuments, the White House, the Capitol Building, the United

States Supreme Court Building, and the Federal executive, legislative, and judicial office buildings located adjacent to the Mall and

the Capitol Building, and is more particularly described in subsection (f).

(b) There is established in the Executive Office of the President

the National Capital Service Director who shall be appointed by

the President. The President, through the National Capital Service

Director, shall assure that there is provided, utilizing District of

Columbia governmental services to the extent practicable, within

the area specified in subsection (a) and particularly described in

subsection (f), adequate fire protection and sanitation services. Except with respect to that portion of the National Capital Service

Area comprising the United States Capitol Buildings and Grounds

as defined in sections 1 and 16 of the Act of July 31, 1946, as

amended (40 U.S.C. 193a and 193m), the United States Supreme

Court Building and Grounds as defined in section 11 of the Act of

August 18, 1949, as amended (40 U.S.C. 13p), and the Library of

Congress Buildings and Grounds as defined in section 11 of the Act

of August 4, 1950, as amended (2 U.S.C. 167j), the National Capital

Service Director shall assure that there is provided within the remainder of such area specified in subsection (a) and subsection (f),

adequate police protection and maintenance of streets and highways.

(c) The National Capital Service Director shall be entitled to

receive compensation at the maximum rate as may be established

from time to time for level IV of the Executive Schedule of section

5314 of title 5 of the United States Code. The Director may appoint, subject to the provisions of title 5 of the United States Code

governing appointments in the competitive service, and fix the pay

of, in accordance with the provisions of chapter 51 and subchapter

3 of chapter 53 of such title relating to classification and General

Schedule pay rates, such personnel as may be necessary.

(d) Section 45 of the Act entitled ‘‘An Act to provide for the organization of the militia of the District of Columbia’’, approved

March 1, 1889 (D.C. Code, sec. 39–603), is amended by inserting

after ‘‘United States Marshal for the District of Columbia,’’ the following: ‘‘or for the National Capital Service Director,’’.

(e)(1) Within one year after the effective date of this section,

the President is authorized and directed to submit to the Congress

a report on the feasibility and advisability of combining the Executive Protective Service and the United States Park Police within

the National Capital Service Area, and placing them under the National Capital Service Director.

(2) Such report shall include such recommendations, including

recommendations for legislative and executive action, as the President deems necessary in carrying out the provisions of paragraph

(1) of this subsection.

(f)(1)(A) The National Capital Service Area referred to in subsection (a) is more particularly described as follows:

Beginning at the point on the present Virginia-District of

Columbia boundary due west of the northernmost point of

Theodore Roosevelt Island and running due east of the eastern

shore of the Potomac River;
Sec. 739 D.C. HOME RULE ACT 86

thence generally south along the shore at the mean high

water mark to the northwest corner of the Kennedy Center;

thence east along the north side of the Kennedy Center to

a point where it reaches the E Street Expressway;

thence east on the expressway to E Street Northwest and

thence east on E Street Northwest to Eighteenth Street Northwest;

thence south on Eighteenth Street Northwest to Constitution Avenue Northwest;

thence east on Constitution Avenue to Seventeenth Street

Northwest;

thence north on Seventeenth Street Northwest to Pennsylvania Avenue Northwest;

thence east on Pennsylvania Avenue to Jackson Place

Northwest;

thence north on Jackson Place to H Street Northwest;

thence east on H Street Northwest to Madison Place

Northwest;

thence south on Madison Place Northwest to Pennsylvania

Avenue Northwest;

thence east on Pennsylvania Avenue Northwest to Fifteenth Street Northwest;

thence south on Fifteenth Street Northwest to Pennsylvania Avenue Northwest;

thence southeast on Pennsylvania Avenue Northwest to

John Marshall Place Northwest;

thence north on John Marshall Place Northwest to C

Street Northwest;

thence east on C Street Northwest to Third Street Northwest;

thence north on Third Street Northwest to D Street Northwest;

thence east on D Street Northwest to Second Street Northwest;

thence south on Second Street Northwest to the intersection of Constitution Avenue Northwest and Louisiana Avenue

Northwest;

thence northeast on Louisiana Avenue Northwest to North

Capitol Street;

thence north on North Capitol Street to Massachusetts Avenue Northwest;

thence southeast on Massachusetts Avenue Northwest so

as to encompass Union Square;

thence following Union Square to F Street Northeast;

thence east on F Street Northeast to Second Street Northeast;

thence south on Second Street Northeast to D Street

Northeast;

thence west on D Street Northeast to First Street Northeast;

thence south on First Street Northeast to Maryland Avenue Northeast;

thence generally north and east on Maryland Avenue to

Second Street Northeast;
87 Sec. 739 D.C. HOME RULE ACT

thence south on Second Street Northeast to C Street

Southeast;

thence west on C Street Southeast to New Jersey Avenue

Southeast;

thence south on New Jersey Avenue Southeast to D Street

Southeast;

thence west on D Street Southeast to Canal Street Parkway;

thence southeast on Canal Street Parkway to E Street

Southeast;

thence west on E Street Southeast to the intersection of

Canal Street Southwest and South Capitol Street;

thence northwest on Canal Street Southwest to Second

Street Southwest;

thence south on Second Street Southwest to Virginia Avenue Southwest;

thence generally west on Virginia Avenue to Third Street

Southwest;

thence north on Third Street Southwest to C Street Southwest;

thence west on C Street Southwest to Sixth Street Southwest;

thence north on Sixth Street Southwest to Independence

Avenue;

thence west on Independence Avenue to Twelfth Street

Southwest;

thence south on Twelfth Street Southwest to D Street

Southwest;

thence west on D Street Southwest to Fourteenth Street

Southwest;

thence south on Fourteenth Street Southwest to the middle of the Washington Channel;

thence generally south and east along the midchannel of

the Washington Channel to a point due west of the northern

boundary line of Fort Lesley McNair;

thence due east to the side of the Washington Channel;

thence following generally south and east along the side of

the Washington Channel at the mean high water mark, to the

point of confluence with the Anacostia River, and along the

northern shore at the mean high water mark to the northernmost point of the Eleventh Street Bridge;

thence generally south and east along the northern side of

the Eleventh Street Bridge to the eastern shore of the Anacostia River;

thence generally south and west along such shore at the

mean high water mark to the point of confluence of the Anacostia and Potomac Rivers;

thence generally south along the eastern shore at the

mean high water mark of the Potomac River to the point

where it meets the present southeastern boundary line of the

District of Columbia;

thence south and west along such southeastern boundary

line to the point where it meets the present Virginia-District

of Columbia boundary;
Sec. 739 D.C. HOME RULE ACT 88

thence generally north and west up the Potomac River

along the Virginia-District of Columbia boundary to the point

of beginning.

(B) Where the area in paragraph (1) is bounded by any street,

such street, and any sidewalk thereof, shall be included within

such area.

(2) Any Federal real property affronting or abutting, as of the

date of the enactment of this Act, the area described in paragraph

(1) shall be deemed to be within such area.

(3) For the purposes of paragraph (2), Federal real property affronting or abutting such area described in paragraph (1) shall—

(A) be deemed to include, but not limited to, Fort Lesley

McNair, the Washington Navy Yard, the Anacostia Naval

Annex, the United States Naval Station, Bolling Air Force

Base, and the Naval Research Laboratory; and

(B) not be construed to include any area situated outside

of the District of Columbia boundary as it existed immediately

prior to the date of the enactment of this Act, nor be construed

to include any portion of the Anacostia Park situated east of

the northern side of the Eleventh Street Bridge, or any portion

of the Rock Creek Park.

(g)(1) Subject to the provisions of paragraph (2) of this subsection, the President is authorized and directed to conduct a survey of the area described in this section in order to establish the

proper metes and bounds of such area, and to file, in such manner

and at such place as he may designate, a map and a legal description of such area, and such description and map shall have the

same force and effect as if included in this Act, except that corrections of clerical, typographical and other errors in any such legal

descriptions and map may be made. In conducting such survey, the

President shall make such adjustments as may be necessary in

order to exclude from the National Capital Service Area any privately owned properties, and buildings and adjacent parking facilities owned by the District of Columbia government.

(2) In carrying out the provisions of paragraph (1) of this subsection, the President shall, to the extent that such survey, legal

description, and map involves areas comprising the United States

Capitol Buildings and Grounds as defined in sections 1 and 16 of

the Act of July 31, 1946, as amended (40 U.S.C. 193a and 193m),

and other buildings and grounds under the care of the Architect of

the Capitol, consult with the Architect of the Capitol.

(3) Section 1 of the Act of July 31, 1946, as amended by the

Act of October 20, 1967 (60 Stat. 718; 81 Stat. 275; 40 U.S.C. 193a),

is hereby amended to include within the definition of the United

States Capitol Grounds, the following streets: ‘‘Independence Avenue from the west curb of First Street S.E., to the east curb of First

Street S.W., New Jersey Avenue S.E. from the south curb of Independence Avenue to the north curb of D Street S.E., South Capitol

Street from the south curb of Independence Avenue to the north

curb of D Street; Delaware Avenue S.W. from the south curb of C

Street S.W. to the north curb of D Street S.W., C Street from the

west curb of First Street S.E. to the intersection of First and Canal

Streets S.W., D Street from the west curb of First Street S.E. to

the intersection of Canal Street and Delaware Avenue S.W., that

part of First Street lying west of the outer face of the curb of the
89 Sec. 739 D.C. HOME RULE ACT

sidewalk on the east side thereof from D Street N.E. to D Street

S.E., that part of First Street within the east and west curblines

thereof extending from the north side of Pennsylvania Avenue

N.W. to the intersection of C Street and Canal Street S.W., including the two circles within such area. Nothing in the section shall

be construed as repealing, or otherwise altering, modifying, affecting, or superseding those provisions of law in effect on the date immediately preceding the effective date of title IV of this Act vesting

authority in the United States Supreme Court police and Library

of Congress police to make arrests in adjacent streets, including

First Street N.E. and First Street S.E.’’.

(4) Section 9 of the Act of July 31, 1946, as amended (40 U.S.C.

212a), is amended by deleting ‘‘or of any State,’’ and inserting in

lieu thereof a comma and the following: ‘‘of the District of Columbia, or of any State,’’.

(5) Section 9 of such Act is further amended by deleting the following: ‘‘, with the exception of the streets and roadways shown on

the map referred to in section 1 of this Act as being under the jurisdiction and control of the Commissioners of the District of Columbia.’’.

(6) Section 14(a) of the Act of July 31, 1946, as amended (40

U.S.C. 212b), is amended by deleting: ‘‘, except on those streets and

roadways shown on the map referred to in section 1 of this Act as

being under the jurisdiction and control of the Commissioners of

the District of Columbia’’.

(7) Section 1 of the Act of July 31, 1946, as amended (40 U.S.C.

193a), is amended by deleting ‘‘: Provided, That those streets and

roadways in said United States Capitol Grounds shown on said

map as being under the jurisdiction and control of the Commissioners of the District of Columbia shall continue under such jurisdiction and control, and said Commissioners shall be responsible

for the maintenance and improvement thereof: Provided further,’’

and inserting in lieu thereof a comma and the following: ‘‘including

those streets and roadways in said United States Capitol Grounds

as shown on said map as being under the jurisdiction and control

of the Commissioners of the District of Columbia, except that the

Commissioner of the District of Columbia shall be responsible for

the maintenance and improvement of those portions of the following streets which are situated between the curblines thereof:

Constitution Avenue from First Street N.E. to Second Street N.W.,

First Street from D Street N.E. to D Street S.E., D Street from

First Street S.E. to Canal Street S.W., and First Street from the

north side of Louisiana Avenue to the intersection of C Street and

Canal Street S.W.: Provided,’’.

(8) Section 9 of the Act of August 18, 1949, as amended (40

U.S.C. 13n), is amended by deleting ‘‘or of any State’’ and inserting

in lieu thereof a comma and the following: ‘‘any law of the District

of Columbia, or of any State,’’.

(9) Section 9 of the Act of August 4, 1950, as amended (2

U.S.C. 167h), is amended by deleting ‘‘or of any State’’ and inserting in lieu thereof a comma and the following: ‘‘any law of the District of Columbia, or of any State,’’.

(h)(1) Except to the extent specifically provided by the provisions of this section, and amendments made by this section, nothing in this section shall be applicable to the United States Capitol
Sec. 739 D.C. HOME RULE ACT 90

Buildings and Grounds as defined in sections 1 and 16 of the Act

of July 31, 1946, as amended (40 U.S.C. 193a, 193m), or to any

other buildings and grounds under the care of the Architect of the

Capitol, the United States Supreme Court Building and Grounds as

defined in section 11 of the Act of August 18, 1949, as amended (40

U.S.C. 13p), and the Library of Congress Buildings and Grounds as

defined in section 11 of the Act of August 4, 1950, as amended (2

U.S.C. 167j), and except to the extent herein specifically provided,

including amendments made by this section, nothing in this section

shall be construed to repeal, amend, alter, modify, or supersede any

provision of the Act of July 31, 1946, as amended (40 U.S.C. 193a

et seq.), or any other of the general laws of the United States or

any of the laws enacted by the Congress and applicable exclusively

to the District of Columbia, or any rule or regulation promulgated

pursuant thereto, in effect on the date immediately preceding the

effective date of title IV of this Act pertaining to said buildings and

grounds, or an existing authority, with respect to such buildings

and grounds, vested by law, or otherwise, on such date immediately

preceding such effective date, in the Senate, the House of Representatives, the Congress, or any committee or commission or

board thereof, the Architect of the Capitol, or any other officer of

the legislative branch, the Chief Justice of the United States, the

Marshal of the Supreme Court of the United States, or the Librarian of Congress.

(2) Notwithstanding the foregoing provision of this section, any

of the services and facilities authorized by this Act to be rendered

or furnished (including maintenance of streets and highways, and

services under section 731 of this Act) shall, as far as practicable,

be made available to the Senate, the House of Representatives, the

Congress, or any committee or commission or board thereof, the Architect of the Capitol, or any other officer of the legislative branch

vested by law or otherwise on such date immediately preceding the

effective date of title IV of this Act with authority over such buildings and grounds, the Chief Justice of the United States, the Marshal of the Supreme Court of the United States, and the Librarian

of Congress, upon their request, and, if payment would be required

for the rendition or furnishing of a similar service or facility to any

other Federal agency, payment therefor shall be made by the recipient thereof, upon presentation of proper vouchers, in advance or

by reimbursement (as may be agreed upon by the parties rendering

and receiving such services).

(i) Except to the extent otherwise specifically provided in the

provisions of this section, and amendments made by this section,

all general laws of the United States and all laws enacted by the

Congress and applicable exclusively to the District of Columbia, including regulations and rules promulgated pursuant thereto, in effect on the date immediately preceding the effective date of title IV

of this Act and which, on such date immediately preceding the effective date of such title, are applicable to and within the areas included within the National Capitol Service Area pursuant to this

section shall, on and after such effective date, continue to be applicable to and within such National Capital Service Area in the same

manner and to the same extent as if this section had not been enacted, and shall remain so applicable until such time as they are

repealed, amended, altered, modified, or superseded, and such
91 Sec. 742 D.C. HOME RULE ACT

laws, regulations and rules shall thereafter be applicable to and

within such area in the manner and to the extent so provided by

any such amendment, alteration, or modification.

(j) In no case shall any person be denied the right to vote or

otherwise participate in any manner in any election in the District

of Columbia solely because such person resides within the National

Capital Service Area.

EMERGENCY CONTROL OF POLICE

SEC. 740. (a) Notwithstanding any other provision of law,

whenever the President of the United States determines that special conditions of an emergency nature exist which require the use

of the Metropolitan Police force for Federal purposes, he may direct

the Mayor to provide him, and the Mayor shall provide, such services of the Metropolitan Police force as the President may deem

necessary and appropriate. In no case, however, shall such services

made available pursuant to any such direction under this subsection extend for a period in excess of forty-eight hours unless the

President has, prior to the expiration of such period, notified the

Chairman and ranking minority Members of the Committee on the

District of Columbia of the Senate and the House of Representatives, in writing, as to the reason for such direction and the period

of time during which the need for such services is likely to continue.

(b) Subject to the provisions of subsection (c) of this section,

such services made available in accordance with subsection (a) of

this section shall terminate upon the end of such emergency, the

expiration of a period of thirty days following the date on which

such services are first made available, or the enactment into law

of a joint resolution by the Congress providing for such termination, whichever first occurs.

(c) Notwithstanding the foregoing provisions of this section, in

any case in which such services are made available in accordance

with the provisions of subsection (a) of this section during any period of an adjournment of the Congress sine die, such services shall

terminate upon the end of the emergency, the expiration of the

thirty-day period following the date on which Congress first convenes following such adjournment, or the enactment into law of a

joint resolution by the Congress providing for such termination,

whichever first occurs.

(d) Except to the extent provided for in subsection (c) of this

section, no such services made available pursuant to the direction

of the President pursuant to subsection (a) of this section shall extend for any period in excess of thirty days, unless the Senate and

the House of Representatives enact into law a joint resolution authorizing such an extension.

OPEN MEETINGS

SEC. 742. (a) All meetings (including hearings) of any department, agency, board, or commission of the District government, including meetings of the District Council, at which official action of

any kind is taken shall be open to the public. No resolution, rule,

act, regulation or other official action shall be effective unless

taken, made, or enacted at such meeting.
Sec. 743 D.C. HOME RULE ACT 92

(b) A written transcript or a transcription shall be kept for all

such meetings and shall be made available to the public during

normal business hours of the District government. Copies of such

written transcripts or copies of such transcriptions shall be available upon request to the public at reasonable cost.

TERMINATION OF THE DISTRICT’S AUTHORITY TO BORROW FROM THE

TREASURY

SEC. 743. (a) The first section of the Act entitled ‘‘An Act to authorize the Commissioners of the District of Columbia to borrow

funds for capital improvement programs and to amend provisions

of law relating to Federal Government participation in meeting

costs of maintaining the Nation’s Capital City’’, approved June 6,

1958 (72 Stat. 183; D.C. Code, sec. 9–220), is amended by striking

out subsections (b), (c), (d), and (e).

(b) The Act entitled ‘‘An Act authorizing loans from the United

States Treasury for the expansion of the District of Columbia water

system’’, approved June 2, 1950 (64 Stat. 195; D.C. Code, sec. 43–

1540), is repealed.

(c) Title II of the Act entitled ‘‘An Act to authorize the financing of a program of public works construction for the District of Columbia, and for other purposes’’, approved May 18, 1954 (68 Stat.

108), is amended by striking out sections 213, 214, 216, 217, and

218 (D.C. Code, sections 43–1612, 43–1615, 43–1616, and 43–1617),

authorizing loans from the United States Treasury for sanitary and

combined sewer systems of the District.

(d) Section 402 of title IV of such Act approved May 18, 1954

(68 Stat. 110; D.C. Code, sec. 7–133), authorizing loans from the

United States Treasury for the District of Columbia highway construction program, is repealed.

(e) Section 4 of the Act entitled ‘‘An Act to authorize the Commissioners of the District of Columbia to plan, construct, operate,

and maintain a sanitary sewer to connect the Dulles International

Airport with the District of Columbia system,’’ approved June 12,

1960 (74 Stat. 211; D.C. Code, sec. 43–1623), is repealed.

(f) Nothing contained in this section shall be deemed to relieve

the District of its obligation to repay any loan made to it under the

authority of the Acts specified in the preceding subsections, nor to

preclude the District from using the unexpended balance of any

such loan appropriated to the District prior to the effective date of

this provision, nor to prevent the District from fulfilling the provisions of section 722.

PART E—AMENDMENTS TO THE DISTRICT OF COLUMBIA ELECTION

ACT

AMENDMENTS

SEC. 751. The District of Columbia Election Act (D.C. Code,

secs. 1–1101—1–1115) is amended as follows:

(1) The first section of such Act (D.C. Code sec. 1–1101) is

amended by inserting immediately after ‘‘Board of Education,’’, the

following: ‘‘the members of the Council of the District of Columbia,

the Mayor’’.

(2) Section 2 of such Act (D.C. Code, sec. 1–1102) is amended

by adding at the end thereof the following new paragraphs:
93 Sec. 751 D.C. HOME RULE ACT

‘‘(8) The term ‘Council’ or ‘Council of the District of Columbia’

means the Council of the District of Columbia established pursuant

to the District of Columbia Self-Government and Governmental Reorganization Act.

‘‘(9) The term ‘Mayor’ means the office of Mayor of the District

of Columbia established pursuant to the District of Columbia SelfGovernment and Governmental Reorganization Act.’’

(3) Subsections (h), (i), (j), and (k) of section 8 of such Act (D.C.

Code, sec. 1–1108) are amended to read as follows:

‘‘(h)(1)(A) The Delegate, Mayor, Chairman of the District Council and the four at-large members of the Council shall be elected

by the registered qualified electors of the District of Columbia in

a general election. Each candidate for the office of Delegate, Mayor,

Chairman of the District Council, and at-large members of the

Council in any general election shall, except as otherwise provided

in subsection (j) of this section and section 10(d), have been elected

by the registered qualified electors of the District as such candidate

by the next preceding primary election.

‘‘(B)(i) A member of the office of Council (other than the Chairman and any member elected at large) shall be elected in a general

election by the registered qualified electors of the respective ward

of the District from which the individual seeking such office was

elected as a candidate for such office as provided in clause (ii) of

this paragraph.

‘‘(ii) Each candidate for the office of member of the Council

(other than Chairman and at-large members) shall, except as otherwise provided in subsection (j) of this section and section 10(d),

have been elected as such a candidate, by the registered qualified

electors of the ward of the District from which such individual was

nominated, at the next preceding primary election to fill such office

within that ward.

‘‘(2) The nomination and election of any individual to the office

of Delegate, Mayor, Chairman of the Council and member of the

Council shall be governed by the provisions of this Act. No political

party shall be qualified to hold a primary election to select candidates for election to any such office in a general election unless,

in the next preceding election year, at least seven thousand five

hundred votes were cast in the general election for a candidate of

such party for any such office or for its candidates for electors of

President and Vice President.

‘‘(i)(1) Each individual in a primary election for candidate for

the office of Delegate, Mayor, Chairman of the Council or at-large

member of the Council shall be nominated for any such office by

a petition (A) filed with the Board not later than sixty days before

the date of such primary election, and (B) signed by at least two

thousand registered qualified electors of the same political party as

the nominee, or by 1 per centum of the duly registered members

of such political party, whichever is less as shown by the records

of the Board of Elections as of the one hundred fourteenth day before the date of such election.

‘‘(2) Each individual in a primary election for candidate for the

office of member of the Council (other than the Chairman and atlarge members) shall be nominated for such office by a petition (A)

filed with the Board not later than sixty days before the date of

such primary election, and (B) signed by at least two hundred and
Sec. 751 D.C. HOME RULE ACT 94

fifty persons in the ward from which such individual seeks election

who are duly registered in such ward and under section 7 of this

Act, and who are of the same political party as the nominee.

‘‘(3) A nominating petition for a candidate in a primary election

for any such office may not be circulated for signature before the

one hundred fourteenth day preceding the date of such election and

may not be filed with the Board before the eighty-fifth day preceding such date. The Board may prescribe rules with respect to

the preparation and presentation of nominating petitions. The

Board shall arrange the ballot of each political party in each such

primary election as to enable a voter of such party to vote for nominated candidates of that party.

‘‘(j)(1) A duly qualified candidate for the office of Delegate,

Mayor, Chairman of the Council, or member of the Council may,

subject to the provisions of this subsection, be nominated directly

as such a candidate for election for such office (including any such

election to be held to fill a vacancy). Such person shall be nominated by petition (A) filed with the Board not less than sixty days

before the date of such general election, and (B) in the case of a

person who is a candidate for the office of member of the Council

(other than Chairman or an at-large member), signed by five hundred voters who are duly registered under section 7 in the ward

from which the candidate seeks election; and in the case of a person who is a candidate for the office of Delegate, Mayor, Chairman

of the Council, or at-large member of the Council, signed by duly

registered voters equal in number to 11⁄2 per centum of the total

number of registered voters in the District, as shown by the records

of the Board as of one hundred fourteen days before the date of

such election, or by three thousand persons duly registered under

section 7, whichever is less. No signatures on such a petition may

be counted which have been made on such petition more than one

hundred fourteen days before the date of such election.

‘‘(2) Nominations under this subsection for candidates for election in a general election to any office referred to in paragraph (1)

shall be of no force and effect with respect to any person whose

name has appeared on the ballot of a primary election for that office held within eight months before the date of such general election.

‘‘(k)(1) In each general election for the office of member of the

Council (other than the office of Chairman or an at-large member)

the Board shall arrange the ballots in each ward to enable a voter

registered in that ward to vote for any one candidate who (A) has

been duly elected by any political party in the next preceding primary election for such office from such ward, (B) has been duly

nominated to fill a vacancy in such office in such ward pursuant

to section 10(d), or (C) has been nominated directly as a candidate

for such office in such ward under subsection (j) of this section.

‘‘(2) In each general election for the office of Chairman and

member of the Council at large, the Board shall arrange the ballots

to enable a registered qualified elector to vote for as many candidates for election as members at large as there are members at

large to be elected in such election, including the Chairman. Such

candidates shall be only those persons who (A) have been duly

elected by any political party in the next preceding primary election for such office, (B) have been duly nominated to fill vacancies
95 Sec. 751 D.C. HOME RULE ACT

in such office pursuant to section 10(d), or (C) have been nominated

directly as a candidate under subsection (j) of this section.

‘‘(3) In each general election for the office of Delegate and

Mayor, the Board shall arrange the ballots to enable a registered

qualified elector to vote for any one of the candidates for any such

office who (A) has been duly elected by any political party in the

next preceding primary election for such office, (B) has been duly

nominated to fill a vacancy in such office pursuant to section 10(d),

or (C) has been nominated directly as a candidate under subsection

(j) of this section.’’.

(4) Paragraph (3) of section 10(a) of such Act (D.C. Code, sec.

1–1100) is amended (1) by inserting ‘‘(A)’’ immediately before the

word ‘‘Except’’, and (2) by adding at the end thereof the following:

‘‘(B) Except as otherwise provided in the case of special elections under this Act primary elections of each political party for the

office of member of the Council shall be held on the first Tuesday

after the second Monday in September 1974, and every second year

thereafter, and general election for such offices shall be held on the

first Tuesday after the first Monday in November in 1974 and

every second year thereafter.

‘‘(C) Except as otherwise provided in the case of a special election under this Act, primary elections of each political party for the

office of Mayor and Chairman shall be held on the first Tuesday

after the second Monday in September of every fourth year, commencing with calendar year 1974, and the general election for such

office shall be held on the first Tuesday after the first Monday in

November 1974 and every fourth year thereafter.’’.

(5) Paragraphs (6), (7), (8), and (9) of section 10(a) of such Act

(D.C. Code, sec. 1–1110) are repealed, and paragraphs (4) and (5)

of such section 10(a) are amended to read as follows:

‘‘(4) With respect to special elections required or authorized by

this Act, the Board may establish the dates on which such special

elections are to be held and prescribe such other terms and conditions as may, in the Board’s opinion, be necessary or appropriate

for the conduct of such elections in a manner comparable to that

prescribed for other elections held pursuant to this Act.

‘‘(5) General elections for members of the Board of Education

shall be held on the first Tuesday after the first Monday in November of each odd-numbered calendar year.’’

(6) Section 10(b) of such Act (D.C. Code, sec. 1–1110) is amended by striking out ‘‘other than general elections for the Office of

Delegate and for members of the Board of Education.’’.

(7) Section 10(c) of such Act (D.C. Code, sec. 1–1110) is amended by striking out the words ‘‘other than an election for members

of the Board of Education’’.

(8) Section 10(d) of such Act (D.C. Code, sec. 1–1110) is amended to read as follows:

‘‘(d) In the event that any official, other than the Delegate,

Mayor, member of the Council, member of the Board of Education,

or a winner of a primary election for the office of Delegate, Mayor,

or member of the Council, elected pursuant to this Act dies, resigns, or becomes unable to serve during his or her term of office

leaving no person elected pursuant to this Act to serve the remainder of the unexpired term of office, the successor or successors to

serve the remainder of such term shall be chosen pursuant to the
Sec. 752 D.C. HOME RULE ACT 96

rules of the duly authorized party committee, except that such successor shall have the qualifications required by this Act for such office. In the event that such a vacancy occurs in the office of a candidate for the office of Delegate, Mayor, or member of the Council

who has been declared the winner in the preceding primary election of such office, the vacancy may be filled not later than fifteen

days prior to the next general election for such office, by nomination by the party committee of the party which nominated his predecessor. In the event that such a vacancy occurs in the office of Delegate more than eight months before the expiration of its term of

office, the Board shall call special elections to fill such vacancy for

the remainder of its term of office.’’

(9) The first sentence of section 15 of such Act (D.C. Code, sec.

1–1115) is amended to read as follows: ‘‘No person shall be a candidate for more than one office on the Board of Education or the

Council in any election for members of the Board of Education or

Council, and no person shall be a candidate for more than one office on the Council in any primary election.’’

(10) Section 15 of such Act (D.C. Code, sec. 1–1115) is further

amended (1) by designating the existing text of such section as subsection (a), and (2) by adding at the end thereof the following new

subsection:

‘‘(b) No person who is holding the office of Mayor, Delegate,

Chairman or member of the Council, or member of the School

Board shall, while holding such office, be eligible as a candidate for

any other of such offices in any primary or general election, unless

the term of the office which he so holds expires on or prior to the

date on which he would be eligible, if elected in such primary or

general election, to take the office with respect to which such election is held.’’

DISTRICT COUNCIL AUTHORITY OVER ELECTIONS

SEC. 752. Notwithstanding any other provision of this Act or

of any other law, the Council shall have authority to enact any act

or resolution with respect to matters involving or relating to elections in the District.

PART F—RULES OF CONSTRUCTION

CONSTRUCTION

SEC. 761. To the extent that any provisions of this Act are inconsistent with the provisions of any other laws, the provisions of

this Act shall prevail and shall be deemed to supersede the provisions of such laws.

SEVERABILITY

SEC. 762. If any particular provision of this Act, or the application thereof to any person or circumstance, is held invalid, the remainder of this Act and the application of such provision to other

persons or circumstances shall not be affected thereby.
97 Sec. 771 D.C. HOME RULE ACT

16These effective dates are changed by Public Law 93–395. In the original Act, Section 771

read:

SEC. 771. (a) Title I and V, and parts A and G, and Section 722, of title VII shall take effect

on the date of the enactment of this Act.

(b) Title II shall take effect on July 1, 1974, except that any provision thereof which in effect

transfers authority to appoint any citizen member of the National Capital Planning Commission

or the District of Columbia Redevelopment Land Agency shall take effect on January 2, 1975.

(c) Titles III and IV shall take effect January 2, 1975, if title IV is accepted by a majority

of the registered qualified electors in the District of Columbia voting on the charter issue in

the charter referendum.

(d) Title VI and parts B, D and F, and Sections 721 and 723, of title VII shall take effect

only if and upon the date that title IV becomes effective.

(e) Part E of title VII shall take effect on the date on which title IV is accepted by a majority

of the registered qualified electors in the District voting on the charter issue in the charter referendum.

Public Law 93–268 amended subsection (e) hereof in the original Act, by deleting ‘‘Part E’’

and inserting in lieu thereof ‘‘Section 724 and part E’’. Sec. 724 provided for political participation in the first elections held under the Home Rule Act, and terminated on January 2, 1975.

PART G—EFFECTIVE DATE

EFFECTIVE DATES 16

SEC. 771. (a) Titles I and V, and parts A and G, and section

722 of title VII shall take effect on the date of enactment of this

Act.

(b) Sections 712, 713, 714, and 715 of title VII, and section

401(b) of title IV, and title II shall take effect July 1, 1974, except

that any provision thereof which in effect transfers authority to appoint any citizen member of the National Capital Planning Commission or the District of Columbia Redevelopment Land Agency

shall take effect January 2, 1975.

(c) Titles II and IV, except section 401(b) of title IV, shall take

effect January 2, 1975, if title IV is accepted by a majority of the

registered qualified electors in the District of Columbia voting on

the charter issue in the charter referendum.

(d) Title VI and parts D and F and sections 711, 716, 717, 718,

719, 721, and 723 of title VII shall take effect only if and upon the

date that title IV becomes effective.

(e) Section 724 and part E of title VII shall take effect on the

date on which title IV is accepted by a majority of the registered

qualified electors in the District of Columbia voting on the charter

issue in the charter referendum.

Approved December 24, 1973.

99

DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY

AND MANAGEMENT ASSISTANCE ACT OF 1995

101

1Section 159 of Public Law 105–277 added section 109 (‘‘Chief Management Officer’’) without

adding a corresponding item to the table of contents.

DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY

AND MANAGEMENT ASSISTANCE ACT OF 1995

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘District of Columbia Financial Responsibility and Management Assistance Act of

1995’’.

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

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. Repealed.]

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

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

Sec. 208. Special rules for fiscal year 1996.

Sec. 209. Control periods described.

Subtitle B—Issuance of Bonds

Sec. 211. Authority to issue bonds.

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

Sec. 213. Establishment of debt service reserve fund.

Sec. 214. Other requirements for issuance of bonds.

Sec. 215. No full faith and credit of the United States.
Sec. 2 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 102

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.

Sec. 225. Disposition of certain school property.

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.

SEC. 2. FINDINGS; PURPOSE.

(a) FINDINGS.—Congress finds the following:

(1) A combination of accumulated operating deficits, cash

shortages, management inefficiencies, and deficit spending in

the current fiscal year have created a fiscal emergency in the

District of Columbia.

(2) As a result of its current financial problems and management inefficiencies, the District of Columbia government

fails to provide its citizens with effective and efficient services

in areas such as education, health care, crime prevention,

trash collection, drug abuse treatment and prevention, human

services delivery, and the supervision and training of government personnel.

(3) The current financial and management problems of the

District government have already adversely affected the longterm economic health of the District of Columbia by causing

the migration of residents and businesses out of the District of

Columbia and the failure of new residents and businesses to

move to the District of Columbia.

(4) The fiscal and management problems in the District of

Columbia government are pervasive across all segments of the

government.

(5) A comprehensive approach to fiscal, management, and

structural problems must be undertaken which exempts no

part of the District government and which preserves home rule

for the citizens of the District of Columbia.

(6) The current deficit of the District of Columbia must be

resolved over a multi-year period, since it cannot be effectively

addressed in a single year.

(7) The ability of the District government to obtain funds

from capital markets in the future will be severely diminished

without Congressional action to restore its financial stability.

(8) The failure to improve the financial situation of the

District government will adversely affect the long-term economic health of the entire National Capital region.

(9) The efficient operation of the Federal Government may

be adversely affected by the current problems of the District of

Columbia not only through the services the District government provides directly to the Federal Government but through

services provided indirectly such as street and traffic flow

maintenance, public safety, and services affecting tourism.

(b) PURPOSE.—The purposes of this Act are as follows:
103 Sec. 2 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

(1) To eliminate budget deficits and cash shortages of the

District of Columbia through visionary financial planning,

sound budgeting, accurate revenue forecasts, and careful

spending.

(2) To ensure the most efficient and effective delivery of

services, including public safety services, by the District government during a period of fiscal emergency.

(3) To conduct necessary investigations and studies to determine the fiscal status and operational efficiency of the District government.

(4) To assist the District government in—

(A) restructuring its organization and workforce to ensure that the residents of the District of Columbia are

served by a local government that is efficient and effective;

(B) achieving an appropriate relationship with the

Federal Government;

(C) ensuring the appropriate and efficient delivery of

services; and

(D) modernizing its budget, accounting, personnel, procurement, information technology, and management systems to ensure the maximum financial and performance

accountability of the District government and its officers

and employees.

(5) To enhance the District government’s access to the capital markets and to ensure the continued orderly payment of

its debt service obligations.

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

vitality and operational efficiency of the District of Columbia.

(7) To examine the programmatic and structural relationship between the District government and the Federal Government.

(8) To provide for the review of the financial impact of activities of the District government before such activities are implemented or submitted for Congressional review.

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

construed—

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

enactment of this Act of the District government to repay any

individual or entity from whom the District has borrowed

funds, whether through the issuance of bonds or otherwise;

(2) to limit the authority of Congress to exercise ultimate

legislative authority over the District of Columbia pursuant to

Article I, section 8, clause 17 of the Constitution of the United

States;

(3) to amend, supersede, or alter the provisions of title 11

of the District of Columbia Code, or sections 431 through 434,

445, and 602(a)(4) of the District of Columbia Self-Government

and Governmental Reorganization Act (pertaining to the organization, powers, and jurisdiction of the District of Columbia

courts); or

(4) to authorize the application of section 103(e) or

303(b)(3) of this Act (relating to issuance of subpoenas) to judicial officers or employees of the District of Columbia courts.
Sec. 101 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 104

TITLE I—ESTABLISHMENT AND

ORGANIZATION OF AUTHORITY

SEC. 101. DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND

MANAGEMENT ASSISTANCE AUTHORITY.

(a) ESTABLISHMENT.—Pursuant to Article I, section 8, clause 17

of the Constitution of the United States, there is hereby established

the District of Columbia Financial Responsibility and Management

Assistance Authority, consisting of members appointed by the

President in accordance with subsection (b). Subject to the conditions described in section 108 and except as otherwise provided in

this Act, the Authority is established as an entity within the government of the District of Columbia, and is not established as a department, agency, establishment, or instrumentality of the United

States Government.

(b) MEMBERSHIP.— (1) IN GENERAL.—The Authority shall consist of 5 members

appointed by the President who meet the qualifications described in subsection (c), except that the Authority may take

any action under this Act (or any amendments made by this

Act) at any time after the President has appointed 3 of its

members.

(2) CONSULTATION WITH CONGRESS.—The President shall

appoint the members of the Authority after consulting with the

Chair of the Committee on Appropriations and the Chair of the

Committee on Government Reform and Oversight of the House

of Representatives, the Chair of the Committee on Appropriations and the Chair of the Committee on Governmental Affairs

of the Senate, and the Delegate to the House of Representatives from the District of Columbia.

(3) CHAIR.—The President shall designate one of the members of the Authority as the Chair of the Authority.

(4) SENSE OF CONGRESS REGARDING DEADLINE FOR APPOINTMENT.—It is the sense of Congress that the President should

appoint the members of the Authority as soon as practicable

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

later than 25 days after the date of the enactment of this Act.

(5) TERM OF SERVICE.—

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

(B), each member of the Authority shall be appointed for

a term of 3 years.

(B) APPOINTMENT FOR TERM FOLLOWING INITIAL

TERM.—As designated by the President at the time of appointment for the term immediately following the initial

term, of the members appointed for the term immediately

following the initial term—

(i) 1 member shall be appointed for a term of 1

year;

(ii) 2 members shall be appointed for a term of 2

years; and

(iii) 2 members shall be appointed for a term of 3

years.

(C) REMOVAL.—The President may remove any member of the Authority only for cause.
105 Sec. 101 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

(D) CONTINUATION OF SERVICE UNTIL SUCCESSOR APPOINTED.—Upon the expiration of a term of office, a member of the Authority may continue to serve until a successor has been appointed.

(c) QUALIFICATIONS FOR MEMBERSHIP.—An individual meets

the qualifications for membership on the Authority if the

individual—

(1) has knowledge and expertise in finance, management,

and the organization or operation of business or government;

(2) does not provide goods or services to the District government (and is not the spouse, parent, child, or sibling of an

individual who provides goods and services to the District government);

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

and

(4) maintains a primary residence in the District of Columbia or has a primary place of business in the District of Columbia.

(d) NO COMPENSATION FOR SERVICE.—Members of the Authority shall serve without pay, but may receive reimbursement for any

reasonable and necessary expenses incurred by reason of service on

the Authority.

(e) ADOPTION OF BY-LAWS FOR CONDUCTING BUSINESS OF AUTHORITY.—

(1) IN GENERAL.—As soon as practicable after the appointment of its members, the Authority shall adopt by-laws, rules,

and procedures governing its activities under this Act, including procedures for hiring experts and consultants. Such bylaws, rules, and procedures shall be public documents, and

shall be submitted by the Authority upon adoption to the

Mayor, the Council, the President, and Congress.

(2) CERTAIN ACTIVITIES REQUIRING APPROVAL OF MAJORITY

OF MEMBERS.—Under the by-laws adopted pursuant to paragraph (1), the Authority may conduct its operations under such

procedures as it considers appropriate, except that an affirmative vote of a majority of the members of the Authority shall

be required in order for the Authority to—

(A) approve or disapprove a financial plan and budget

under subtitle A of title II;

(B) implement recommendations on financial stability

and management responsibility under section 207;

(C) give consent to the appointment of the Chief Financial Officer of the District of Columbia under section

424 of the District of Columbia Self-Government and Governmental Reorganization Act (as added by section 302);

and

(D) give consent to the appointment of the Inspector

General of the District of Columbia under section 208(a) of

the District of Columbia Procurement Practices Act of

1985 (as amended by section 303(a)).

(3) ADOPTION OF RULES AND REGULATIONS OF DISTRICT OF

COLUMBIA.—The Authority may incorporate in its by-laws,

rules, and procedures under this subsection such rules and regulations of the District government as it considers appropriate
Sec. 102 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 106

to enable it to carry out its activities under this Act with the

greatest degree of independence practicable.

SEC. 102. EXECUTIVE DIRECTOR AND STAFF OF AUTHORITY.

(a) EXECUTIVE DIRECTOR.—The Authority shall have an Executive Director who shall be appointed by the Chair with the consent

of the Authority. The Executive Director shall be paid at a rate determined by the Authority, except that such rate may not exceed

the rate of basic pay payable for level IV of the Executive Schedule.

(b) STAFF.—With the approval of the Chair, the Executive Director may appoint and fix the pay of additional personnel as the

Executive Director considers appropriate, except that no individual

appointed by the Executive Director may be paid at a rate greater

than the rate of pay for the Executive Director.

(c) INAPPLICABILITY OF CERTAIN EMPLOYMENT AND PROCUREMENT LAWS.—

(1) CIVIL SERVICE LAWS.— The Executive Director and staff

of the Authority may be appointed without regard to the provisions of title 5, United States Code, governing appointments in

the competitive service, and paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of that

title relating to classification and General Schedule pay rates.

(2) DISTRICT EMPLOYMENT AND PROCUREMENT LAWS.—The

Executive Director and staff of the Authority may be appointed

and paid without regard to the provisions of the District of Columbia Code governing appointments and salaries. The provisions of the District of Columbia Code governing procurement

shall not apply to the Authority.

(d) STAFF OF FEDERAL AGENCIES.—Upon request of the Chair,

the head of any Federal department or agency may detail, on a reimbursable or non-reimbursable basis, any of the personnel of that

department or agency to the Authority to assist it in carrying out

its duties under this Act.

(e) PRESERVATION OF RETIREMENT AND CERTAIN OTHER RIGHTS

OF FEDERAL EMPLOYEES WHO BECOME EMPLOYED BY THE AUTHORITY.—

(1) IN GENERAL.—Any Federal employee who becomes employed by the Authority—

(A) may elect, for the purposes set forth in paragraph

(2)(A), to be treated, for so long as that individual remains

continuously employed by the Authority, as if such individual had not separated from service with the Federal

Government, subject to paragraph (3); and

(B) shall, if such employee subsequently becomes reemployed by the Federal Government, be entitled to have

such individual’s service with the Authority treated, for

purposes of determining the appropriate leave accrual

rate, as if it had been service with the Federal Government.

(2) EFFECT OF AN ELECTION.—An election made by an individual under the provisions of paragraph (1)(A)—

(A) shall qualify such individual for the treatment described in such provisions for purposes of—
107 Sec. 102 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

(i) chapter 83 or 84 of title 5, United States Code,

as appropriate (relating to retirement), including the

Thrift Savings Plan;

(ii) chapter 87 of such title (relating to life insurance); and

(iii) chapter 89 of such title (relating to health insurance); and

(B) shall disqualify such individual, while such election remains in effect, from participating in the programs

offered by the government of the District of Columbia (if

any) corresponding to the respective programs referred to

in subparagraph (A).

(3) CONDITIONS FOR AN ELECTION TO BE EFFECTIVE.—An

election made by an individual under paragraph (1)(A) shall be

ineffective unless—

(A) it is made before such individual separates from

service with the Federal Government; and

(B) such individual’s service with the Authority commences within 3 days after so separating (not counting any

holiday observed by the government of the District of Columbia).

(4) CONTRIBUTIONS.—If an individual makes an election

under paragraph (1)(A), the Authority shall, in accordance with

applicable provisions of law referred to in paragraph (2)(A), be

responsible for making the same deductions from pay and the

same agency contributions as would be required if it were a

Federal agency.

(5) REGULATIONS.—Any regulations necessary to carry out

this subsection shall be prescribed in consultation with the Authority by—

(A) the Office of Personnel Management, to the extent

that any program administered by the office is involved;

(B) the appropriate office or agency of the government

of the District of Columbia, to the extent that any program

administered by such office or agency is involved; and

(C) the Executive Director referred to in section 8474

of title 5, United States Code, to the extent that the Thrift

Savings Plan is involved.

(f) FEDERAL BENEFITS FOR OTHERS.—

(1) IN GENERAL.—The Office of Personnel Management, in

conjunction with each corresponding office or agency of the

government of the District of Columbia and in consultation

with the Authority, shall prescribe regulations under which

any individual who becomes employed by the Authority (under

circumstances other than as described in subsection (e)) may

elect either—

(A) to be deemed a Federal employee for purposes of

the programs referred to in subsection (e)(2)(A) (i)–(iii); or

(B) to participate in 1 or more of the corresponding

programs offered by the government of the District of Columbia.

(2) EFFECT OF AN ELECTION.—An individual who elects the

option under subparagraph (A) or (B) of paragraph (1) shall be

disqualified, while such election remains in effect, from partici-
Sec. 103 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 108

pating in any of the programs referred to in the other such

subparagraph.

(3) DEFINITION OF ‘‘CORRESPONDING OFFICE OR AGENCY’’.—

For purposes of paragraph (1), the term ‘‘corresponding office

or agency of the government of the District of Columbia’’

means, with respect to any program administered by the Office

of Personnel Management, the office or agency responsible for

administering the corresponding program (if any) offered by

the government of the District of Columbia.

(4) THRIFT SAVINGS PLAN.—To the extent that the Thrift

Savings Plan is involved, the preceding provisions of this subsection shall be applied by substituting ‘‘the Executive Director

referred to in section 8474 of title 5, United States Code’’ for

‘‘the Office of Personnel Management’’.

SEC. 103. POWERS OF AUTHORITY.

(a) HEARINGS AND SESSIONS.—The Authority may, for the purpose of carrying out this Act, hold hearings, sit and act at times

and places, take testimony, and receive evidence as the Authority

considers appropriate. The Authority may administer oaths or affirmations to witnesses appearing before it.

(b) POWERS OF MEMBERS AND AGENTS.—Any member or agent

of the Authority may, if authorized by the Authority, take any action which the Authority is authorized to take by this section.

(c) OBTAINING OFFICIAL DATA.—

(1) FROM FEDERAL GOVERNMENT.—Notwithstanding sections 552 (commonly known as the Freedom of Information

Act), 552a (the Privacy Act of 1974), and 552b (the Government

in the Sunshine Act) of title 5, United States Code, the Authority may secure directly from any department or agency of the

United States information necessary to enable it to carry out

this Act, with the approval of the head of that department or

agency.

(2) FROM DISTRICT GOVERNMENT.—Notwithstanding any

other provision of law, the Authority shall have the right to secure copies of such records, documents, information, or data

from any entity of the District government necessary to enable

the Authority to carry out its responsibilities under this Act.

At the request of the Authority, the Authority shall be granted

direct access to such information systems, records, documents

or information or data as will enable the Authority to carry out

its responsibilities under this Act. The head of the entity of the

District government responsible shall provide the Authority

with such information and assistance (including granting the

Authority direct access to automated or other information systems) as the Authority requires under this paragraph.

(d) GIFTS, BEQUESTS, AND DEVISES.—The Authority may accept, use, and dispose of gifts, bequests, or devises of services or

property, both real and personal, for the purpose of aiding or facilitating the work of the Authority. Gifts, bequests, or devises of

money and proceeds from sales of other property received as gifts,

bequests, or devises shall be deposited in such account as the Authority may establish and shall be available for disbursement upon

order of the Chair.

(e) SUBPOENA POWER.—
109 Sec. 103 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

(1) IN GENERAL.—The Authority may issue subpoenas requiring the attendance and testimony of witnesses and the production of any evidence relating to any matter under investigation by the Authority. The attendance of witnesses and the

production of evidence may be required from any place within

the United States at any designated place of hearing within

the United States.

(2) FAILURE TO OBEY A SUBPOENA.—If a person refuses to

obey a subpoena issued under paragraph (1), the Authority

may apply to a United States district court for an order requiring that person to appear before the Authority to give testimony, produce evidence, or both, relating to the matter under

investigation. The application may be made within the judicial

district where the hearing is conducted or where that person

is found, resides, or transacts business. Any failure to obey the

order of the court may be punished by the court as civil contempt.

(3) SERVICE OF SUBPOENAS.—The subpoenas of the Authority shall be served in the manner provided for subpoenas

issued by United States district court under the Federal Rules

of Civil Procedure for the United States district courts.

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

application is made under paragraph (2) may be served in the

judicial district in which the person required to be served resides or may be found.

(f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the request of

the Authority, the Administrator of General Services shall promptly provide to the Authority, on a reimbursable basis, the administrative support services necessary for the Authority to carry out its

responsibilities under this Act.

(g) AUTHORITY TO ENTER INTO CONTRACTS.—The Executive Director may enter into such contracts as the Executive Director considers appropriate (subject to the approval of the Chair) to carry

out the Authority’s responsibilities under this Act.

(h) CIVIL ACTIONS TO ENFORCE POWERS.—The Authority may

seek judicial enforcement of its authority to carry out its responsibilities under this Act.

(i) PENALTIES.—

(1) ACTS PROHIBITED.—Any officer or employee of the District government who—

(A) takes any action in violation of any valid order of

the Authority or fails or refuses to take any action required by any such order; or

(B) prepares, presents, or certifies any information (including any projections or estimates) or report for the

Board or any of its agents that is false or misleading, or,

upon learning that any such information is false or misleading, fails to immediately advise the Board or its agents

thereof in writing,

shall be guilty of a misdemeanor, and shall be fined not more

than $1,000, imprisoned for not more than 1 year, or both.

(2) ADMINISTRATIVE DISCIPLINE.—In addition to any other

applicable penalty, any officer or employee of the District government who knowingly and willfully violates paragraph (1)

shall be subject to appropriate administrative discipline, in-
Sec. 104 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 110

2The amendment made by section 153(c)(1) of Public Law 104–134 (110 Stat. 1322–110) striking ‘‘the Authority and its members’’ and inserting ‘‘the Authority, its members, and its employees’’ was executed to reflect the probable intent of Congress. The initial letter of the first word

probably should have been capitalized.

cluding (when appropriate) suspension from duty without pay

or removal from office by order of either the Mayor or Authority.

(3) REPORT BY MAYOR ON DISCIPLINARY ACTIONS TAKEN.— In the case of a violation of paragraph (1) by an officer or employee of the District government, the Mayor shall immediately

report to the Board all pertinent facts together with a statement of the action taken thereon.

SEC. 104. EXEMPTION FROM LIABILITY FOR CLAIMS.

The Authority, its members, and its employees 2 may not be

liable for any obligation of or claim against the Authority or its

members or employees or the District of Columbia resulting from

actions taken to carry out this Act.

SEC. 105. TREATMENT OF ACTIONS ARISING FROM ACT.

(a) JURISDICTION ESTABLISHED IN DISTRICT COURT FOR DIS- TRICT OF COLUMBIA.—Except as provided in section 103(e)(2) (relating to the issuance of an order enforcing a subpoena), any action

against the Authority or any action otherwise arising out of this

Act, in whole or in part, shall be brought in the United States District Court for the District of Columbia.

(b) PROMPT APPEAL.— (1) COURT OF APPEALS.—Notwithstanding any other provision of law, any order of the United States District Court for

the District of Columbia which is issued pursuant to an action

brought under subsection (a) shall be reviewable only pursuant

to a notice of appeal to the United States Court of Appeals for

the District of Columbia Circuit.

(2) SUPREME COURT.—Notwithstanding any other provision

of law, review by the Supreme Court of the United States of

a decision of the Court of Appeals which is issued pursuant to

paragraph (1) may be had only if the petition for such review

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

(c) TIMING OF RELIEF.—No order of any court granting declaratory or injunctive relief against the Authority, including relief permitting or requiring the obligation, borrowing, or expenditure of

funds, shall take effect during the pendency of the action before

such court, during the time appeal may be taken, or (if appeal is

taken) during the period before the court has entered its final order

disposing of such action.

(d) EXPEDITED CONSIDERATION.—It shall be the duty of the

United States District Court for the District of Columbia, the

United States Court of Appeals for the District of Columbia Circuit,

and the Supreme Court of the United States to advance on the

docket and to expedite to the greatest possible extent the disposition of any matter brought under subsection (a).

SEC. 106. FUNDING FOR OPERATION OF AUTHORITY.

(a) ANNUAL BUDGETING PROCESS.—

(1) SUBMISSION OF BUDGET.—The Authority shall submit a

proposed budget for each fiscal year to the President for inclusion in the annual budget for the District of Columbia under
111 Sec. 106 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

part D of title IV of the District of Columbia Self-Government

and Governmental Reorganization Act not later than the May

1 prior to the first day of the fiscal year. In the case of the

budget for fiscal year 1996, the Authority shall submit its proposed budget not later than July 15, 1995.

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

(A) expenditures of the Authority by each object class,

including expenditures for staff of the Authority;

(B) services of personnel and other services provided

by or on behalf of the Authority for which the Authority

made no reimbursement; and

(C) any gifts or bequests made to the authority during

the previous fiscal year.

(3) APPROPRIATIONS REQUIRED.—No amount may be obligated or expended by the Authority for a fiscal year (beginning

with fiscal year 1996) unless such amount has been approved

by Act of Congress, and then only according to such Act.

(4) CONFORMING AMENDMENT.—Section 453(c) of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 47–304.1(c), D.C. Code) is amended by striking the period at the end and inserting the following: ‘‘, or to

the District of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a) of

the District of Columbia Financial Responsibility and Management Assistance Act of 1995.’’.

(b) SPECIAL RULE FOR FUNDING OF OPERATIONS DURING FISCAL

YEAR 1995.—As soon as practicable after the appointment of its

members, the Authority shall submit to the Mayor and the

President—

(1) a request for reprogramming of funds under subsection

(c)(1); and

(2) a description of anticipated expenditures of the Authority for fiscal year 1995 (which shall be transmitted to Congress).

(c) SOURCES OF FUNDS.—

(1) USE OF PREVIOUSLY APPROPRIATED FUNDS IN DISTRICT

BUDGET.—The Mayor shall transfer funds previously appropriated to the District government for a fiscal year for auditing

and consulting services to the Authority (in such amounts as

are provided in the budget request of the Authority under subsection (a) or, with respect to fiscal year 1995, the request submitted under subsection (b)(1)) for the purpose of carrying out

the Authority’s activities during the fiscal year.

(2) OTHER SOURCES OF FUNDS.—For provisions describing

the sources of funds available for the operations of the Authority during a fiscal year (in addition to any interest earned on

accounts of the Authority during the year), see section

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

from the Treasury by the Mayor) and section 213(b)(3) (relating to the use of interest accrued from amounts in a debt service reserve fund of the Authority).

(d) USE OF INTEREST ON ACCOUNTS FOR DISTRICT.—

(1) IN GENERAL.—Notwithstanding any other provision of

this Act, the Authority may transfer or otherwise expend any

amounts derived from interest earned on accounts held by the
Sec. 107 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 112

Authority on behalf of the District of Columbia for such purposes as it considers appropriate to promote the economic stability and management efficiency of the District government.

(2) SPENDING NOT SUBJECT TO APPROPRIATION BY CONGRESS.—Notwithstanding subsection (a)(3), any amounts transferred or otherwise expended pursuant to paragraph (1) may

be obligated or expended without approval by Act of Congress.

SEC. 107. SUSPENSION OF ACTIVITIES.

(a) SUSPENSION UPON PAYMENT OF AUTHORITY OBLIGATIONS.—

(1) IN GENERAL.—Upon the expiration of the 12-month period which begins on the date that the Authority certifies that

all obligations arising from the issuance by the Authority of

bonds, notes, or other obligations pursuant to subtitle B of title

II have been discharged, and that all borrowings by or on behalf of the District of Columbia pursuant to title VI of the District of Columbia Revenue Act of 1939 (sec. 47–3401, D.C.

Code) have been repaid, the Authority shall suspend any activities carried out under this Act and the terms of the members of the Authority shall expire.

(2) NO SUSPENSION DURING CONTROL YEAR.—The Authority

may not suspend its activities pursuant to paragraph (1) at

any time during a control year.

(b) REACTIVATION UPON INITIATION OF CONTROL PERIOD.— Upon receiving notice from the Chairs of the Appropriations Committees of the House of Representatives and the Senate that a control period has been initiated (as described in section 209) at any

time after the Authority suspends its activities under subsection

(a), the President shall appoint members of the Authority, and the

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

manner as the President appointed members and the Authority

carried out activities prior to such suspension.

SEC. 108. APPLICATION OF LAWS OF DISTRICT OF COLUMBIA TO AUTHORITY.

(a) IN GENERAL.—The following laws of the District of Columbia (as in effect on the date of the enactment of this Act) shall

apply to the members and activities of the Authority:

(1) Section 742 of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 1–1504, D.C.

Code).

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

Freedom of Information Act (secs. 1–1521 through 1–1526,

D.C. Code).

(3) Section 601 of the District of Columbia Campaign Finance Reform and Conflict of Interest Act (sec. 1–1461, D.C.

Code).

(b) NO CONTROL, SUPERVISION, OVERSIGHT, OR REVIEW BY

MAYOR OR COUNCIL.—

(1) IN GENERAL.—Neither the Mayor nor the Council may

exercise any control, supervision, oversight, or review over the

Authority or its activities.

(2) PROHIBITION AGAINST LEGISLATION AFFECTING AUTHOR- ITY.—Section 602(a) of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 1–233(a),

D.C. Code) is amended—
113 Sec. 109 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

3Section 159 of Public Law 105–277 added section 109 (‘‘Chief Management Officer’’) without

adding a corresponding item to the table of contents.

(A) by striking ‘‘or’’ at the end of paragraph (8);

(B) by striking the period at the end of paragraph (9)

and inserting ‘‘; or’’; and

(C) by adding at the end the following new paragraph:

‘‘(10) enact any act, resolution, or rule with respect to the

District of Columbia Financial Responsibility and Management

Assistance Authority established under section 101(a) of the

District of Columbia Financial Responsibility and Management

Assistance Act of 1995.’’.

(c) AUTHORITY NOT SUBJECT TO REPRESENTATION BY CORPORATION COUNSEL.—In any action brought by or on behalf of the Authority, and in any action brought against the Authority, the Authority shall be represented by such counsel as it may select, but

in no instance may the Authority be represented by the Corporation Counsel of the District of Columbia.

SEC. 109. CHIEF MANAGEMENT OFFICER. 3

(a) The Authority may employ a Chief Management Officer of

the District of Columbia, who shall be appointed by the Chair with

the consent of the Authority. The Chief Management Officer shall

assist the Authority in the fulfillment of its responsibilities under

the District of Columbia Management Reform Act of 1997, subtitle

B of the National Capital Revitalization and Self-Government Improvement Act of 1997, title XI of Public Law 105–33, to improve

the effectiveness and efficiency of the District of Columbia Government. The Authority may delegate to the Chief Management Officer responsibility for oversight and supervision of departments and

functions of the District of Columbia Government, or successor departments and functions, consistent with the District of Columbia

Management Reform Act of 1997, subtitle B of the National Capital

Revitalization and Self-Government Improvement Act of 1997, title

XI of Public Law 105–33. The Chief Management Officer shall report directly to the Authority, through the Chair of the Authority,

and shall be directed in his or her performance by a majority of the

Authority. The Chief Management Officer shall be paid at an annual rate determined by the Authority sufficient in the judgment

of the Authority to obtain the services of an individual with the

skills and experience required to discharge the duties of the office.

(b) EMPLOYMENT CONTRACT.—Notwithstanding any other provision of law, the employment agreement entered into as of January 15, 1998, between the Chief Management Officer and the District of Columbia Financial Responsibility and Management Assistance Authority shall be valid in all respects.
Sec. 201 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 114

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.

(a) DEVELOPMENT OF FINANCIAL PLAN AND BUDGET.—For each

fiscal year for which the District government is in a control period,

the Mayor shall develop and submit to the Authority a financial

plan and budget for the District of Columbia in accordance with

this section.

(b) CONTENTS OF FINANCIAL PLAN AND BUDGET.—A financial

plan and budget for the District of Columbia for a fiscal year shall

specify the budgets for the District government under part D of

title IV of the District of Columbia Self-Government and Governmental Reorganization Act for the applicable fiscal year and the

next 3 fiscal years (including the projected revenues and expenditures of each fund of the District government for such years), in accordance with the following requirements:

(1) The financial plan and budget shall meet the standards

described in subsection (c) to promote the financial stability of

the District government.

(2) The financial plan and budget shall provide for estimates of revenues and expenditures on a modified accrual

basis.

(3) The financial plan and budget shall—

(A) describe lump sum expenditures by department by

object class;

(B) describe capital expenditures (together with a

schedule of projected capital commitments of the District

government and proposed sources of funding);

(C) contain estimates of short-term and long-term debt

(both outstanding and anticipated to be issued); and

(D) contain cash flow forecasts for each fund of the

District government at such intervals as the Authority

may require.

(4) The financial plan and budget shall include a statement describing methods of estimations and significant assumptions.

(5) The financial plan and budget shall include any other

provisions and shall meet such other criteria as the Authority

considers appropriate to meet the purposes of this Act, including provisions for changes in personnel policies and levels for

each department or agency of the District government, changes

in the structure and organization of the District government,

and management initiatives to promote productivity, improvement in the delivery of services, or cost savings.

(c) STANDARDS TO PROMOTE FINANCIAL STABILITY DESCRIBED.—
115 Sec. 202 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

(1) IN GENERAL.—The standards to promote the financial

stability of the District government applicable to the financial

plan and budget for a fiscal year are as follows:

(A) In the case of the financial plan and budget for fiscal year 1996, the expenditures of the District government

for each fiscal year (beginning with fiscal year 1998) may

not exceed the revenues of the District government for

each such fiscal year.

(B) During fiscal years 1996 and 1997, the District

government shall make continuous, substantial progress

towards equalizing the expenditures and revenues of the

District government for such fiscal years (in equal annual

installments to the greatest extent possible).

(C) The District government shall provide for the orderly liquidation of the cumulative fund balance deficit of

the District government, as evidenced by financial statements prepared in accordance with generally accepted accounting principles.

(D) If funds in accounts of the District government

which are dedicated for specific purposes have been withdrawn from such accounts for other purposes, the District

government shall fully restore the funds to such accounts.

(E) The financial plan and budget shall assure the

continuing long-term financial stability of the District government, as indicated by factors including access to shortterm and long-term capital markets, the efficient management of the District government’s workforce, and the effective provision of services by the District government.

(2) APPLICATION OF SOUND BUDGETARY PRACTICES.—In

meeting the standards described in paragraph (1) with respect

to a financial plan and budget for a fiscal year, the District

government shall apply sound budgetary practices, including

reducing costs and other expenditures, improving productivity,

increasing revenues, or combinations of such practices.

(3) ASSUMPTIONS BASED ON CURRENT LAW.—In meeting the

standards described in paragraph (1) with respect to a financial plan and budget for a fiscal year, the District government

shall base estimates of revenues and expenditures on Federal

law as in effect at the time of the preparation of the financial

plan and budget.

(d) REPEAL OF OFFSETS AGAINST FEDERAL PAYMENT AND

OTHER DISTRICT REVENUES.—Section 138 of the District of Columbia Appropriations Act, 1995, is amended—

(1) by striking subsection (c); and

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

(c) and (d).

SEC. 202. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL

PLAN AND ANNUAL DISTRICT BUDGET.

(a) SUBMISSION OF PRELIMINARY FINANCIAL PLAN AND BUDGET

BY MAYOR.—Not later than the February 1 preceding a fiscal year

for which the District government is in a control period, the Mayor

shall submit to the Authority and the Council a financial plan and

budget for the fiscal year which meets the requirements of section

201.
Sec. 202 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 116

(b) REVIEW BY AUTHORITY.—Upon receipt of the financial plan

and budget for a fiscal year from the Mayor under subsection (a),

the Authority shall promptly review the financial plan and budget.

In conducting the review, the Authority may request any additional

information it considers necessary and appropriate to carry out its

duties under this subtitle.

(c) ACTION UPON APPROVAL OF MAYOR’S PRELIMINARY FINAN- CIAL PLAN AND BUDGET.— (1) CERTIFICATION TO MAYOR.— (A) IN GENERAL.—If the Authority determines that the

financial plan and budget for the fiscal year submitted by

the Mayor under subsection (a) meets the requirements

applicable under section 201—

(i) the Authority shall approve the financial plan

and budget and shall provide the Mayor, the Council,

the President, and Congress with a notice certifying

its approval; and

(ii) the Mayor shall promptly submit the financial

plan and budget to the Council pursuant to section

442 of the District of Columbia Self-Government and

Governmental Reorganization Act.

(B) DEEMED APPROVAL AFTER 30 DAYS.— (i) IN GENERAL.—If the Authority has not provided

the Mayor, the Council, and Congress with a notice

certifying approval under subparagraph (A)(i) or a

statement of disapproval under subsection (d)(1) upon

the expiration of the 30-day period which begins on

the date the Authority receives the financial plan and

budget from the Mayor under subsection (a), the Authority shall be deemed to have approved the financial

plan and budget and to have provided the Mayor, the

Council, the President, and Congress with the notice

certifying approval described in subparagraph (A)(i).

(ii) EXPLANATION OF FAILURE TO RESPOND.—If

clause (i) applies with respect to a financial plan and

budget, the Authority shall provide the Mayor, the

Council, the President and Congress with an explanation for its failure to provide the notice certifying

approval or the statement of disapproval during the

30-day period described in such clause.

(2) ADOPTION OF FINANCIAL PLAN AND BUDGET BY COUNCIL

AFTER RECEIPT OF APPROVED FINANCIAL PLAN AND BUDGET.—

Notwithstanding the first sentence of section 446 of the District of Columbia Self-Government and Governmental Reorganization Act, not later than 30 days after receiving the financial plan and budget for the fiscal year from the Mayor under

paragraph (1)(A)(ii), the Council shall by Act adopt a financial

plan and budget for the fiscal year which shall serve as the

adoption of the budgets of the District government for the fiscal year under such section, and shall submit such financial

plan and budget to the Mayor and the Authority.

(3) REVIEW OF COUNCIL FINANCIAL PLAN AND BUDGET BY

AUTHORITY.—Upon receipt of the financial plan and budget for

a fiscal year from the Council under paragraph (2) (taking into

account any items or provisions disapproved by the Mayor or
117 Sec. 202 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

disapproved by the Mayor and reenacted by the Council under

section 404(f) of the District of Columbia Self-Government and

Governmental Reorganization Act, as amended by subsection

(f)(2)), the Authority shall promptly review the financial plan

and budget. In conducting the review, the Authority may request any additional information it considers necessary and appropriate to carry out its duties under this subtitle.

(4) RESULTS OF AUTHORITY REVIEW OF COUNCIL’S INITIAL FI- NANCIAL PLAN AND BUDGET.— (A) APPROVAL OF COUNCIL’S INITIAL FINANCIAL PLAN

AND BUDGET.—If the Authority determines that the financial plan and budget for the fiscal year submitted by the

Council under paragraph (2) meets the requirements applicable under section 201—

(i) the Authority shall approve the financial plan

and budget and shall provide the Mayor, the Council,

the President, and Congress with a notice certifying

its approval; and

(ii) the Council shall promptly submit the financial plan and budget to the Mayor for transmission to

the President and Congress under section 446 of the

District of Columbia Self-Government and Governmental Reorganization Act.

(B) DISAPPROVAL OF COUNCIL’S INITIAL BUDGET.—If the

Authority determines that the financial plan and budget

for the fiscal year submitted by the Council under paragraph (2) does not meet the requirements applicable under

section 201, the Authority shall disapprove the financial

plan and budget, and shall provide the Mayor, the Council,

the President, and Congress with a statement containing—

(i) the reasons for such disapproval;

(ii) the amount of any shortfall in the budget or financial plan; and

(iii) any recommendations for revisions to the

budget the Authority considers appropriate to ensure

that the budget is consistent with the financial plan

and budget.

(C) DEEMED APPROVAL AFTER 15 DAYS.—

(i) IN GENERAL.—If the Authority has not provided

the Mayor, the Council, the President, and Congress

with a notice certifying approval under subparagraph

(A)(i) or a statement of disapproval under subparagraph (B) upon the expiration of the 15-day period

which begins on the date the Authority receives the financial plan and budget from the Council under paragraph (2), the Authority shall be deemed to have approved the financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in

subparagraph (A)(i).

(ii) EXPLANATION OF FAILURE TO RESPOND.—If

clause (i) applies with respect to a financial plan and

budget, the Authority shall provide the Mayor, the

Council, the President and Congress with an explanation for its failure to provide the notice certifying
Sec. 202 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 118

approval or the statement of disapproval during the

15-day period described in such clause.

(5) AUTHORITY REVIEW OF COUNCIL’S REVISED FINANCIAL

PLAN AND BUDGET.—

(A) SUBMISSION OF COUNCIL’S REVISED FINANCIAL PLAN

AND BUDGET.—Not later than 15 days after receiving the

statement from the Authority under paragraph (4)(B), the

Council shall promptly by Act adopt a revised financial

plan and budget for the fiscal year which addresses the

reasons for the Authority’s disapproval cited in the statement, and shall submit such financial plan and budget to

the Mayor and the Authority.

(B) APPROVAL OF COUNCIL’S REVISED FINANCIAL PLAN

AND BUDGET.—If, after reviewing the revised financial plan

and budget for a fiscal year submitted by the Council

under subparagraph (A) in accordance with the procedures

described in this subsection, the Authority determines that

the revised financial plan and budget meets the requirements applicable under section 201—

(i) the Authority shall approve the financial plan

and budget and shall provide the Mayor, the Council,

the President, and Congress with a notice certifying

its approval; and

(ii) the Council shall promptly submit the financial plan and budget to the Mayor for transmission to

the President and Congress under section 446 of the

District of Columbia Self-Government and Governmental Reorganization Act.

(C) DISAPPROVAL OF COUNCIL’S REVISED FINANCIAL

PLAN AND BUDGET.—

(i) IN GENERAL.—If, after reviewing the revised financial plan and budget for a fiscal year submitted by

the Council under subparagraph (A) in accordance

with the procedures described in this subsection, the

Authority determines that the revised financial plan

and budget does not meet the applicable requirements

under section 201, the Authority shall—

(I) disapprove the financial plan and budget;

(II) provide the Mayor, the Council, the President, and Congress with a statement containing

the reasons for such disapproval and describing

the amount of any shortfall in the financial plan

and budget; and

(III) approve and recommend a financial plan

and budget for the District government which

meets the applicable requirements under section

201, and submit such financial plan and budget to

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

(ii) TRANSMISSION OF REJECTED FINANCIAL PLAN

AND BUDGET.—The Council shall promptly submit the

revised financial plan and budget disapproved by the

Authority under this subparagraph to the Mayor for

transmission to the President and Congress under sec-
119 Sec. 202 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

tion 446 of the District of Columbia Self-Government

and Governmental Reorganization Act.

(D) DEEMED APPROVAL AFTER 15 DAYS.— (i) IN GENERAL.—If the Authority has not provided

the Mayor, the Council, the President, and Congress

with a notice certifying approval under subparagraph

(B)(i) or a statement of disapproval under subparagraph (C) upon the expiration of the 15-day period

which begins on the date the Authority receives the

revised financial plan and budget submitted by the

Council under subparagraph (A), the Authority shall

be deemed to have approved the revised financial plan

and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (B)(i).

(ii) EXPLANATION OF FAILURE TO RESPOND.—If

clause (i) applies with respect to a financial plan and

budget, the Authority shall provide the Mayor, the

Council, the President and Congress with an explanation for its failure to provide the notice certifying

approval or the statement of disapproval during the

15-day period described in such clause.

(6) DEADLINE FOR TRANSMISSION OF FINANCIAL PLAN AND

BUDGET BY AUTHORITY.—Notwithstanding any other provision

of this section, not later than the June 15 preceding each fiscal

year which is a control year, the Authority shall—

(A) provide Congress with a notice certifying its approval of the Council’s initial financial plan and budget for

the fiscal year under paragraph (4)(A);

(B) provide Congress with a notice certifying its approval of the Council’s revised financial plan and budget

for the fiscal year under paragraph (5)(B); or

(C) submit to Congress an approved and recommended

financial plan and budget of the Authority for the District

government for the fiscal year under paragraph (5)(C).

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

(1) STATEMENT OF DISAPPROVAL.—If the Authority determines that the financial plan and budget for the fiscal year

submitted by the Mayor under subsection (a) does not meet the

requirements applicable under section 201, the Authority shall

disapprove the financial plan and budget, and shall provide the

Mayor and the Council with a statement containing—

(A) the reasons for such disapproval;

(B) the amount of any shortfall in the financial plan

and budget; and

(C) any recommendations for revisions to the financial

plan and budget the Authority considers appropriate to ensure that the financial plan and budget meets the requirements applicable under section 201.

(2) AUTHORITY REVIEW OF MAYOR’S REVISED FINANCIAL

PLAN AND BUDGET.—

(A) SUBMISSION OF MAYOR’S REVISED FINANCIAL PLAN

AND BUDGET.—Not later than 15 days after receiving the

statement from the Authority under paragraph (1), the
Sec. 202 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 120

Mayor shall promptly submit to the Authority and the

Council a revised financial plan and budget for the fiscal

year which addresses the reasons for the Authority’s disapproval cited in the statement.

(B) APPROVAL OF MAYOR’S REVISED FINANCIAL PLAN

AND BUDGET.—If the Authority determines that the revised

financial plan and budget for the fiscal year submitted by

the Mayor under subparagraph (A) meets the requirements applicable under section 201—

(i) the Authority shall approve the financial plan

and budget and shall provide the Mayor, the Council,

the President, and Congress with a notice certifying

its approval; and

(ii) the Mayor shall promptly submit the financial

plan and budget to the Council pursuant to section

442 of the District of Columbia Self-Government and

Governmental Reorganization Act.

(C) DISAPPROVAL OF MAYOR’S REVISED FINANCIAL PLAN

AND BUDGET.— (i) IN GENERAL.—If the Authority determines that

the revised financial plan and budget for the fiscal

year submitted by the Mayor under subparagraph (A)

does not meet the requirements applicable under section 201, the Authority shall—

(I) disapprove the financial plan and budget;

(II) shall provide the Mayor, the Council, the

President, and Congress with a statement containing the reasons for such disapproval; and

(III) recommend a financial plan and budget

for the District government which meets the requirements applicable under section 201 and submit such financial plan and budget to the Mayor

and the Council.

(ii) SUBMISSION OF REJECTED FINANCIAL PLAN AND

BUDGET.—The Mayor shall promptly submit the revised financial plan and budget disapproved by the

Authority under this subparagraph to the Council pursuant to section 442 of the District of Columbia SelfGovernment and Governmental Reorganization Act.

(D) DEEMED APPROVAL AFTER 15 DAYS.—

(i) IN GENERAL.—If the Authority has not provided

the Mayor, the Council, the President, and Congress

with a notice certifying approval under subparagraph

(B)(i) or a statement of disapproval under subparagraph (C) upon the expiration of the 15-day period

which begins on the date the Authority receives the

revised financial plan and budget submitted by the

Mayor under subparagraph (A), the Authority shall be

deemed to have approved the revised financial plan

and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (B)(i).

(ii) EXPLANATION OF FAILURE TO RESPOND.—If

clause (i) applies with respect to a financial plan and

budget, the Authority shall provide the Mayor, the
121 Sec. 202 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

Council, the President and Congress with an explanation for its failure to provide the notice certifying

approval or the statement of disapproval during the

15-day period described in such clause.

(3) ACTION BY COUNCIL.— (A) ADOPTION OF FINANCIAL PLAN AND BUDGET.—Notwithstanding the first sentence of section 446 of the District of Columbia Self-Government and Governmental Reorganization Act, not later than 30 days after receiving the

Mayor’s approved revised financial plan and budget for the

fiscal year under paragraph (2)(B) or (in the case of a financial plan and budget disapproved by the Authority) the

financial plan and budget recommended by the Authority

under paragraph (2)(C)(i)(III), the Council shall by Act

adopt a financial plan and budget for the fiscal year which

shall serve as the adoption of the budgets of the District

government for the fiscal year under such section, and

shall submit the financial plan and budget to the Mayor

and the Authority.

(B) REVIEW BY AUTHORITY.—The financial plan and

budget submitted by the Council under subparagraph (A)

shall be subject to review by the Authority and revision by

the Council in the same manner as the financial plan and

budget submitted by the Council after an approved preliminary financial plan and budget of the Mayor under

paragraphs (3), (4), (5), and (6) of subsection (c).

(e) REVISIONS TO FINANCIAL PLAN AND BUDGET.— (1) PERMITTING MAYOR TO SUBMIT REVISIONS.—The Mayor

may submit proposed revisions to the financial plan and budget for a control year to the Authority at any time during the

year.

(2) PROCESS FOR REVIEW, APPROVAL, DISAPPROVAL, AND

COUNCIL ACTION.—Except as provided in paragraph (3), the

procedures described in subsections (b), (c), and (d) shall apply

with respect to a proposed revision to a financial plan and

budget in the same manner as such procedures apply with respect to the original financial plan and budget, except that subparagraph (B) of subsection (c)(1) (relating to deemed approval

by the Authority of a preliminary financial plan and budget of

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

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

(3) EXCEPTION FOR REVISIONS NOT AFFECTING APPROPRIATIONS.—To the extent that a proposed revision to a financial

plan and budget adopted by the Council pursuant to this subsection does not increase the amount of spending with respect

to any account of the District government, the revision shall

become effective upon the Authority’s approval of such revision

(subject to review by Congress under section 602(c) of the District of Columbia Self-Government and Governmental Reorganization Act).

(f) CONFORMING AMENDMENT TO BUDGET PROCESS REQUIREMENTS UNDER HOME RULE ACT.—

(1) SUBMISSION OF UNBALANCED BUDGETS.—Section 603 of

the District of Columbia Self-Government and Governmental

Reorganization Act (sec. 47–313, D.C. Code) is amended—
Sec. 202 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 122

(A) in subsection (c), by striking ‘‘The Council’’ the

first place it appears and inserting ‘‘Except as provided in

subsection (f), the Council’’;

(B) in subsection (d), by striking ‘‘The Mayor’’ and inserting ‘‘Except as provided in subsection (f), the Mayor’’;

and

(C) by adding at the end the following new subsection:

‘‘(f) In the case of a fiscal year which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995)—

‘‘(1) subsection (c) (other than the fourth sentence) and

subsection (d) shall not apply; and

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

forward to the President, any budget which is not consistent

with the financial plan and budget established for the fiscal

year under subtitle A of title II of such Act.’’.

(2) EXPEDITED PROCEDURES FOR DISAPPROVAL OF ITEMS

AND PROVISIONS OF COUNCIL BUDGET BY MAYOR.—Section 404(f)

of the District of Columbia Self-Government and Governmental

Reorganization Act (sec. 1–227(f), D.C. Code) is amended by

adding at the end the following new sentence: ‘‘In the case of

any budget act for a fiscal year which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995), this subsection shall apply as if the reference in the second sentence

to ‘ten-day period’ were a reference to ‘five-day period’ and the

reference in the third sentence to ‘thirty calendar days’ were

a reference to ‘5 calendar days’.’’.

(g) PERMITTING MAYOR AND COUNCIL TO SPECIFY EXPENDI- TURES UNDER SCHOOL BOARD BUDGET DURING CONTROL YEAR.— (1) MAYOR’S ESTIMATE INCLUDED IN ANNUAL FINANCIAL

PLAN AND BUDGET.—Section 2(h) of the Act entitled ‘‘An Act to

fix and regulate the salaries of teachers, school officers, and

other employees of the board of education of the District of Columbia’’, approved June 20, 1906 (sec. 31–103, D.C. Code) is

amended by striking the period at the end and inserting the

following: ‘‘, except that in the case of a year which is a control

year (as defined in section 305(4) of the District of Columbia

Financial Responsibility and Management Assistance Act of

1995), the Mayor shall transmit the same together with the

Mayor’s own request for the amount of money required for the

public schools for the year.’’.

(2) SPECIFICATION OF EXPENDITURES.—Section 452 of the

District of Columbia Self-Government and Governmental Reorganization Act (sec. 31–104, D.C. Code) is amended by adding

at the end the following new sentence: ‘‘This section shall not

apply with respect to the annual budget for any fiscal year

which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management

Assistance Act of 1995).’’.

(h) PERMITTING SEPARATION OF EMPLOYEES IN ACCORDANCE

WITH FINANCIAL PLAN AND BUDGET.—The fourth sentence of section 422(3) of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 1–242(3), D.C. Code) is amended by striking ‘‘pursuant to procedures’’ and all that follows
123 Sec. 202 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

through ‘‘Act of 1991’’ and inserting the following: ‘‘in the implementation of a financial plan and budget for the District government approved under subtitle A of title II of the District of Columbia Financial Responsibility and Management Assistance Act of

1995’’.

(i) EXPEDITED SUBMISSION AND APPROVAL OF CONSENSUS

BUDGET AND FINANCIAL PLAN.—Notwithstanding any other provision of this section, if the Mayor, the Council, and the Authority

jointly develop a financial plan and budget for the fiscal year which

meets the requirements applicable under section 201 and which the

Mayor, Council, and Authority certify reflects a consensus among

them—

(1) such financial plan and budget shall serve as the budget of the District government for the fiscal year adopted by the

Council under section 446 of the District of Columbia Self-Government and Governmental Reorganization Act; and

(2) the Mayor shall transmit the financial plan and budget

to the President and Congress under such section.

(j) RESERVE FUNDS.— (1) BUDGET RESERVE.— (A) IN GENERAL.—For each of the fiscal years 2002 and

2003, the budget of the District government for the fiscal

year shall contain a budget reserve in the following

amounts:

(i) $120,000,000, in the case of fiscal year 2002.

(ii) $70,000,000, in the case of fiscal year 2003.

(B) AVAILABILITY OF FUNDS.—Any amount made available from the budget reserve described in subparagraph

(A) shall remain available until expended.

(C) AVAILABILITY OF FISCAL YEAR 2001 BUDGET RESERVE

FUNDS.—For fiscal year 2001, any amount in the budget

reserve shall remain available until expended.

(2) CUMULATIVE CASH RESERVE.—In addition to any other

cash reserves required under section 450A of the District of Columbia Home Rule Act, for each of the fiscal years 2004 and

2005, the budget of the District government for the fiscal year

shall contain a cumulative cash reserve of $50,000,000.

(3) CONDITIONS ON USE.—The District of Columbia may obligate or expend amounts in the budget reserve under paragraph (1) or the cumulative cash reserve under paragraph (2)

only in accordance with the following conditions:

(A) The Chief Financial Officer of the District of Columbia shall certify that the amounts are available.

(B) The amounts shall be obligated or expended in accordance with laws enacted by the Council in support of

each such obligation or expenditure.

(C) The amounts may not be used to fund the agencies

of the District of Columbia government under court ordered receivership.

(D) The amounts may be obligated or expended only if

the Mayor notifies the Committees on Appropriations of

the House of Representatives and Senate in writing 30

days in advance of any obligation or expenditure.

(4) REPLENISHMENT.—Any amount of the budget reserve

under paragraph (1) or the cumulative cash reserve under
Sec. 203 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 124

paragraph (2) which is expended in 1 fiscal year shall be replenished in the following fiscal year appropriations to maintain the required balance.

SEC. 203. REVIEW OF ACTIVITIES OF DISTRICT GOVERNMENT TO ENSURE COMPLIANCE WITH APPROVED FINANCIAL PLAN

AND BUDGET.

(a) REVIEW OF COUNCIL ACTS.— (1) SUBMISSION OF ACTS TO AUTHORITY.—The Council shall

submit to the Authority each Act passed by the Council and

signed by the Mayor during a control year or vetoed by the

Mayor and repassed by two-thirds of the Council present and

voting during a control year, and each Act passed by the Council and allowed to become effective without the Mayor’s signature during a control year, together with the estimate of costs

accompanying such Act required under section 602(c)(3) of the

District of Columbia Self-Government and Governmental Reorganization Act (as added by section 301(d)).

(2) PROMPT REVIEW BY AUTHORITY.—Upon receipt of an Act

from the Council under paragraph (1), the Authority shall

promptly review the Act to determine whether it is consistent

with the applicable financial plan and budget approved under

this subtitle and with the estimate of costs accompanying the

Act (described in paragraph (1)).

(3) ACTIONS BY AUTHORITY.— (A) APPROVAL.—Except as provided in subparagraph

(C), if the Authority determines that an Act is consistent

with the applicable financial plan and budget, the Authority shall notify the Council that it approves the Act, and

the Council shall submit the Act to Congress for review in

accordance with section 602(c) of the District of Columbia

Self-Government and Governmental Reorganization Act.

(B) FINDING OF INCONSISTENCY.—Except as provided

in subparagraph (C), if the Authority determines that an

Act is significantly inconsistent with the applicable financial plan and budget, the Authority shall—

(i) notify the Council of its finding;

(ii) provide the Council with an explanation of the

reasons for its finding; and

(iii) to the extent the Authority considers appropriate, provide the Council with recommendations for

modifications to the Act.

(4) EFFECT OF FINDING.—If the Authority makes a finding

with respect to an Act under paragraph (3)(B), the Council may

not submit the Act to Congress for review in accordance with

section 602(c) of the District of Columbia Self-Government and

Governmental Reorganization Act.

(5) DEEMED APPROVAL.—If the Authority does not notify

the Council that it approves or disapproves an Act submitted

under this subsection during the 7-day period (excluding Saturdays, Sundays, and legal holidays) which begins on the first

day (excluding Saturdays, Sundays, and legal holidays) after

the Authority receives the Act from the Council, the Authority

shall be deemed to have approved the Act in accordance with

paragraph (3)(A). At the option of the Authority, the previous

sentence shall be applied as if the reference to ‘‘7-day period’’
125 Sec. 203 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

were a reference to ‘‘14-day period’’ if during such 7-day period

the Authority so notifies the Council and the Mayor.

(6) PRELIMINARY REVIEW OF PROPOSED ACTS.—At the request of the Council, the Authority may conduct a preliminary

review of proposed legislation before the Council to determine

whether the legislation as proposed would be consistent with

the applicable financial plan and budget approved under this

subtitle, except that any such preliminary review shall not be

binding on the Authority in reviewing any Act subsequently

submitted under this subsection.

(b) EFFECT OF APPROVED FINANCIAL PLAN AND BUDGET ON

CONTRACTS AND LEASES.— (1) MANDATORY PRIOR APPROVAL FOR CERTAIN CONTRACTS

AND LEASES.— (A) IN GENERAL.—In the case of a contract or lease described in subparagraph (B) which is proposed to be entered into by the District government during a control

year, the Mayor (or the appropriate officer or agent of the

District government) shall submit the proposed contract or

lease to the Authority. The Authority shall review each

contract or lease submitted under this subparagraph, and

the Mayor (or the appropriate officer or agent of the District government) may not enter into the contract or lease

unless the Authority determines that the proposed contract or lease is consistent with the financial plan and

budget for the fiscal year.

(B) CONTRACTS AND LEASES DESCRIBED.—A contract or

lease described in this subparagraph is—

(i) a labor contract entered into through collective

bargaining; or

(ii) such other type of contract or lease as the Authority may specify for purposes of this subparagraph.

(2) AUTHORITY TO REVIEW OTHER CONTRACTS AND LEASES

AFTER EXECUTION.—

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

certain contracts and leases under paragraph (1), the Authority may require the Mayor (or the appropriate officer

or agent of the District government) to submit to the Authority any other contract (including a contract to carry

out a grant) or lease entered into by the District government during a control year which is executed after the Authority has approved the financial plan and budget for the

year under section 202(c) or 202(d), or any proposal of the

District government to renew, extend, or modify a contract

or lease during a control year which is made after the Authority has approved such financial plan and budget.

(B) REVIEW BY AUTHORITY.—The Authority shall review each contract or lease submitted under subparagraph

(A) to determine if the contract or lease is consistent with

the financial plan and budget for the fiscal year. If the Authority determines that the contract or lease is not consistent with the financial plan and budget, the Mayor shall

take such actions as are within the Mayor’s powers to revise the contract or lease, or shall submit a proposed revision to the financial plan and budget in accordance with
Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 126

section 202(e), so that the contract or lease will be consistent with the financial plan and budget.

(3) SPECIAL RULE FOR FISCAL YEAR 1995.—The Authority

may require the Mayor to submit to the Authority any proposal

to renew, extend, or modify a contract or lease in effect during

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

modification is consistent with the budget for the District of

Columbia under the District of Columbia Appropriations Act,

1995.

(4) SPECIAL RULE FOR CONTRACTS SUBJECT TO COUNCIL AP- PROVAL.—In the case of a contract or lease which is required

to be submitted to the Authority under this subsection and

which is subject to approval by the Council under the laws of

the District of Columbia, the Mayor shall submit such contract

or lease to the Authority only after the Council has approved

the contract or lease.

(5) APPLICATION TO RULES AND REGULATIONS.—The provisions of this subsection shall apply with respect to a rule or

regulation issued or proposed to be issued by the Mayor (or the

head of any department or agency of the District government)

in the same manner as such provisions apply to a contract or

lease.

(c) RESTRICTIONS ON REPROGRAMMING OF AMOUNTS IN BUDGET

DURING CONTROL YEARS.— (1) SUBMISSIONS OF REQUESTS TO AUTHORITY.—If the

Mayor submits a request to the Council for the reprogramming

of any amounts provided in a budget for a fiscal year which is

a control year after the budget is adopted by the Council, the

Mayor shall submit such request to the Authority, which shall

analyze the effect of the proposed reprogramming on the financial plan and budget for the fiscal year and submit its analysis

to the Council not later than 15 days after receiving the request.

(2) NO ACTION PERMITTED UNTIL ANALYSIS RECEIVED.—The

Council may not adopt a reprogramming during a fiscal year

which is a control year, and no officer or employee of the District government may carry out any reprogramming during

such a year, until the Authority has provided the Council with

an analysis of a request for the reprogramming in accordance

with paragraph (1).

SEC. 204. RESTRICTIONS ON BORROWING BY DISTRICT DURING CONTROL YEAR.

(a) PRIOR APPROVAL REQUIRED.—

(1) IN GENERAL.—The District government may not borrow

money during a control year unless the Authority provides

prior certification that both the receipt of funds through such

borrowing and the repayment of obligations incurred through

such borrowing are consistent with the financial plan and

budget for the year.

(2) REVISIONS TO FINANCIAL PLAN AND BUDGET PERMITTED.—If the Authority determines that the borrowing proposed to be undertaken by the District government is not consistent with the financial plan and budget, the Mayor may submit to the Authority a proposed revision to the financial plan

and budget in accordance with section 202(e) so that the bor-
127 Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

rowing will be consistent with the financial plan and budget as

so revised.

(3) BORROWING DESCRIBED.—This subsection shall apply

with respect to any borrowing undertaken by the District government, including borrowing through the issuance of bonds

under part E of title IV of the District of Columbia Self-Government and Governmental Reorganization Act, the exercise of

authority to obtain funds from the United States Treasury

under title VI of the District of Columbia Revenue Act of 1939

(sec. 47–3401, D.C. Code), or any other means.

(4) SPECIAL RULES FOR TREASURY BORROWING DURING FISCAL YEAR 1995.—

(A) NO PRIOR APPROVAL REQUIRED DURING INITIAL PERIOD FOLLOWING APPOINTMENT.—The District government

may requisition advances from the United States Treasury

under title VI of the District of Columbia Revenue Act of

1939 (sec. 47–3401, D.C. Code) without the prior approval

of the Authority during the 45-day period which begins on

the date of the appointment of the members of the Authority (subject to the restrictions described in such title, as

amended by subsection (c)).

(B) CRITERIA FOR APPROVAL DURING REMAINDER OF FISCAL YEAR.—The District government may requisition advances described in subparagraph (A) during the portion of

fiscal year 1995 occurring after the expiration of the 45-

day period described in such subparagraph if the Authority

finds that—

(i) such borrowing is appropriate to meet the

needs of the District government to reduce deficits and

discharge payment obligations; and

(ii) the District government is making appropriate

progress toward meeting its responsibilities under this

Act (and the amendments made by this Act).

(b) DEPOSIT OF FUNDS OBTAINED THROUGH TREASURY WITH

AUTHORITY.—

(1) AUTOMATIC DEPOSIT DURING CONTROL YEAR.—If the

Mayor requisitions funds from the Secretary of the Treasury

pursuant to title VI of the District of Columbia Revenue Act

of 1939 (sec. 47–3401, D.C. Code) during a control year (beginning with fiscal year 1996), such funds shall be deposited by

the Secretary into an escrow account held by the Authority, to

be used as follows:

(A) The Authority shall expend a portion of the funds

for its operations during the fiscal year in which the funds

are requisitioned, in such amount and under such conditions as are established under the budget of the Authority

for the fiscal year under section 106(a).

(B) The Authority shall allocate the remainder of such

funds to the Mayor at such intervals and in accordance

with such terms and conditions as it considers appropriate,

consistent with the financial plan and budget for the year

and with any other withholding of funds by the Authority

pursuant to this Act.

(2) OPTIONAL DEPOSIT DURING FISCAL YEAR 1995.—
Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 128

(A) DURING INITIAL PERIOD FOLLOWING APPOINTMENT.—If the Mayor requisitions funds described in paragraph (1) during the 45-day period which begins on the

date of the appointment of the members of the Authority,

the Secretary of the Treasury shall notify the Authority,

and at the request of the Authority shall deposit such

funds into an escrow account held by the Authority in accordance with paragraph (1).

(B) DURING REMAINDER OF FISCAL YEAR.—If the Mayor

requisitions funds described in paragraph (1) during the

portion of fiscal year 1995 occurring after the expiration of

the 45-day period described in subparagraph (A), the Secretary of the Treasury shall deposit such funds into an escrow account held by the Authority in accordance with

paragraph (1) at the request of the Authority.

(c) CONDITIONS ON REQUISITIONS FROM TREASURY.—Title VI of

the District of Columbia Revenue Act of 1939 (sec. 47–3401, D.C.

Code) is amended by striking all after the heading and inserting

the following:

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

‘‘(a) TRANSITIONAL SHORT-TERM ADVANCES MADE BEFORE OCTOBER 1, 1995.—

‘‘(1) IN GENERAL.—If the conditions in paragraph (2) are

satisfied, the Secretary shall make an advance of funds from

time to time, out of any money in the Treasury not otherwise

appropriated, for the purpose of assisting the District government in meeting its general expenditures, as authorized by

Congress.

‘‘(2) CONDITIONS TO MAKING ANY TRANSITIONAL SHORT-TERM

ADVANCE BEFORE OCTOBER 1, 1995.—The Secretary shall make

an advance under this subsection if the following conditions

are satisfied:

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

for an advance under this section;

‘‘(B) as of the date on which the requisitioned advance

is to be made, the Authority has not approved a financial

plan and budget for the District government as meeting

the requirements of the District of Columbia Financial Responsibility and Management Assistance Act of 1995;

‘‘(C) the date on which the requisitioned advance is to

be made is not later than September 30, 1995;

‘‘(D) the District government has delivered to the

Secretary—

‘‘(i) a schedule setting forth the anticipated timing

and amounts of requisitions for advances under this

subsection; and

‘‘(ii) evidence demonstrating to the satisfaction of

the Secretary that the District government is effectively unable to obtain credit in the public credit markets or elsewhere in sufficient amounts and on sufficiently reasonable terms to meet the District government’s financing needs;

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

assurance of reimbursement for the advance from the
129 Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

amount authorized to be appropriated as the annual Federal payment to the District of Columbia under title V of

the District of Columbia Self-Government and Governmental Reorganization Act for the fiscal year ending September 30, 1996; and

‘‘(F) except during the 45-day period beginning on the

date of the appointment of the members of the Authority,

the Authority makes the findings described in section

204(a)(4)(B) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995.

‘‘(3) AMOUNT OF ANY TRANSITIONAL SHORT-TERM ADVANCE

MADE BEFORE OCTOBER 1, 1995.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (C), if the conditions described in subparagraph (B)

are satisfied, each advance made under this subsection

shall be in the amount designated by the Mayor in the

Mayor’s requisition for such advance, except that—

‘‘(i) the total amount requisitioned under this subsection during the 30-day period which begins on the

date of the first requisition made under this subsection may not exceed 331⁄3 percent of the fiscal year

1995 limit;

‘‘(ii) the total amount requisitioned under this subsection during the 60-day period which begins on the

date of the first requisition made under this subsection may not exceed 662⁄3 percent of the fiscal year

1995 limit; and

‘‘(iii) the total amount requisitioned under this

subsection after the expiration of the 60-day period

which begins on the date of the first requisition made

under this subsection may not exceed 100 percent of

the fiscal year 1995 limit.

‘‘(B) CONDITIONS APPLICABLE TO DESIGNATED

AMOUNT.—Subparagraph (A) applies if the Mayor determines that the amount designated in the Mayor’s requisition for such advance is needed to accomplish the purpose

described in paragraph (1), and (except during the 45-day

period beginning on the date of the appointment of the

members of the Authority) the Authority approves such

amount.

‘‘(C) AGGREGATE MAXIMUM AMOUNT OUTSTANDING.—

The sum of the anticipated principal and interest requirements of all advances made under this subsection may not

be greater than the fiscal year 1995 limit.

‘‘(D) FISCAL YEAR 1995 LIMIT DESCRIBED.—In this paragraph, the ‘fiscal year 1995 limit’ means the amount authorized to be appropriated to the District of Columbia as

the annual Federal payment to the District of Columbia

under title V of the District of Columbia Self-Government

and Governmental Reorganization Act for the fiscal year

ending September 30, 1995.

‘‘(4) MATURITY OF ANY TRANSITIONAL SHORT-TERM ADVANCE

MADE BEFORE OCTOBER 1, 1995.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), each advance made under this subsection shall
Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 130

mature on the date designated by the Mayor in the Mayor’s requisition for such advance.

‘‘(B) LATEST PERMISSIBLE MATURITY DATE.—Notwithstanding subparagraph (A), the maturity date for any advance made under this subsection shall not be later than

October 1, 1995.

‘‘(5) INTEREST RATE.—Each advance made under this subsection shall bear interest at an annual rate equal to the rate

determined by the Secretary at the time that the Secretary

makes such advance taking into consideration the prevailing

yield on outstanding marketable obligations of the United

States with remaining periods to maturity comparable to the

maturity of such advance, plus 1⁄8 of 1 percent.

‘‘(6) DEPOSIT OF ADVANCES.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), each advance made under this subsection for

the account of the District government shall be deposited

by the Secretary into such account as is designated by the

Mayor in the Mayor’s requisition for such advance.

‘‘(B) EXCEPTION.—Notwithstanding subparagraph (A),

if (in accordance with section 204(b)(2) of the District of

Columbia Financial Responsibility and Management Assistance Act of 1995) the Authority delivers a letter requesting the Secretary to deposit all advances made under

this subsection for the account of the District government

in an escrow account held by the Authority, each advance

made under this subsection for the account of the District

government after the date of such letter shall be deposited

by the Secretary into the escrow account specified by the

Authority in such letter.

‘‘(b) TRANSITIONAL SHORT-TERM ADVANCES MADE ON OR AFTER

OCTOBER 1, 1995 AND BEFORE FEBRUARY 1, 1996.—

‘‘(1) IN GENERAL.—If the conditions in paragraph (2) are

satisfied, the Secretary shall make an advance of funds from

time to time, out of any money in the Treasury not otherwise

appropriated, for the same purpose as advances are made

under subsection (a).

‘‘(2) TERMS AND CONDITIONS.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), paragraphs (2), (4), and (5) of subsection (a)

(other than subparagraph (F) of paragraph (2)) shall apply

to any advance made under this subsection.

‘‘(B) EXCEPTIONS.—

‘‘(i) NEW CONDITIONS PRECEDENT TO MAKING ADVANCES.—The conditions described in subsection (a)(2)

shall apply with respect to making advances on or

after October 1, 1995, in the same manner as such

conditions apply with respect to making advances before October 1, 1995, except that—

‘‘(I) subparagraph (C) (relating to the last day

on which advances may be made) shall be applied

as if the reference to ‘September 30, 1995’ were a

reference to ‘January 31, 1996’;

‘‘(II) subparagraph (E) (relating to the Secretary’s determination of reasonable assurance of
131 Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

reimbursement from the annual Federal payment

appropriated to the District of Columbia) shall be

applied as if the reference to ‘September 30, 1996’

were a reference to ‘September 30, 1997’;

‘‘(III) the Secretary may not make an advance

under this subsection unless all advances made

under subsection (a) are fully reimbursed by withholding from the annual Federal payment appropriated to the District of Columbia for the fiscal

year ending September 30, 1996, under title V of

the District of Columbia Self-Government and

Governmental Reorganization Act, and applying

toward reimbursement for such advances an

amount equal to the amount needed to fully reimburse the Treasury for such advances; and

‘‘(IV) the Secretary may not make an advance

under this subsection unless the Authority has

provided the Secretary with the prior certification

described in section 204(a)(1) of the District of Columbia Financial Responsibility and Management

Assistance Act of 1995.

‘‘(ii) NEW LATEST PERMISSIBLE MATURITY DATE.— The provisions of subsection (a)(4) shall apply with respect to the maturity of advances made after October

1, 1995, in the same manner as such provisions apply

with respect to the maturity of advances made before

October 1, 1995, except that subparagraph (B) of such

subsection (relating to the latest permissible maturity

date) shall apply as if the reference to ‘October 1,

1995’ were a reference to ‘October 1, 1996’.

‘‘(C) NEW MAXIMUM AMOUNT OUTSTANDING.— ‘‘(i) IN GENERAL.—Except as provided in clause

(iii), if the conditions described in clause (ii) are satisfied, each advance made under this subsection shall be

in the amount designated by the Mayor in the Mayor’s

requisition for such advance.

‘‘(ii) CONDITIONS APPLICABLE TO DESIGNATED

AMOUNT.—Clause (i) applies if the Mayor determines

that the amount designated in the Mayor’s requisition

for such advance is needed to accomplish the purpose

described in paragraph (1), and the Authority approves such amount.

‘‘(iii) AGGREGATE MAXIMUM AMOUNT OUTSTANDING.—The sum of the anticipated principal and

interest requirements of all advances made under this

paragraph may not be greater than 60 percent of the

fiscal year 1996 limit.

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

204(b) of the District of Columbia Financial Responsibility

and Management Assistance Act of 1995, each advance

made under this subsection for the account of the District

shall be deposited by the Secretary into an escrow account

held by the Authority.

‘‘(E) FISCAL YEAR 1996 LIMIT DESCRIBED.—In this paragraph, the ‘fiscal year 1996 limit’ means the amount au-
Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 132

thorized to be appropriated to the District of Columbia as

the annual Federal payment to the District of Columbia

under title V of the District of Columbia Self-Government

and Governmental Reorganization Act for the fiscal year

ending September 30, 1996.

‘‘(c) TRANSITIONAL SHORT-TERM ADVANCES MADE ON OR AFTER

FEBRUARY 1, 1996, AND BEFORE OCTOBER 1, 1996.—

‘‘(1) IN GENERAL.—If the conditions in paragraph (2) are

satisfied, the Secretary shall make an advance of funds from

time to time, out of any money in the Treasury not otherwise

appropriated, for the same purpose as advances are made

under subsection (a).

‘‘(2) TERMS AND CONDITIONS.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), subsection (b)(2) shall apply to any advance

made under this subsection.

‘‘(B) EXCEPTIONS.—The conditions applicable under

subsection (b)(2) (other than paragraph (2)(B) of subsection

(a)) shall apply with respect to making advances on or

after February 1, 1996, and before October 1, 1996, in the

same manner as such conditions apply to making advances

under such subsection, except that—

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

(a)(2) (as described in subsection (b)(2)(B)(i)(I)), the

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

reference to ‘September 30, 1996’;

‘‘(ii) subparagraph (C)(iii) of subsection (b)(2) shall

apply as if the reference to ‘60 percent’ were a reference to ‘40 percent’; and

‘‘(iii) no advance may be made unless the Secretary has been provided the certifications and information described in paragraphs (3) through (6) of section 602(b).

‘‘(d) TRANSITIONAL SHORT-TERM ADVANCES MADE ON OR AFTER

OCTOBER 1, 1996, AND BEFORE OCTOBER 1, 1997.—

‘‘(1) IN GENERAL.—If the conditions in paragraph (2) are

satisfied, the Secretary shall make an advance of funds from

time to time, out of any money in the Treasury not otherwise

appropriated, for the same purpose as advances are made

under subsection (a).

‘‘(2) TERMS AND CONDITIONS.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), paragraphs (2), (4), and (5) of subsection (a)

(other than subparagraphs (B) and (F) of paragraph (2))

shall apply to any advance made under this subsection.

‘‘(B) EXCEPTIONS.—

‘‘(i) NEW CONDITIONS PRECEDENT TO MAKING ADVANCES.—The conditions described in subsection (a)(2)

shall apply with respect to making advances on or

after October 1, 1996, and before October 1, 1997, in

the same manner as such conditions apply with respect to making advances before October 1, 1995, except that—

‘‘(I) subparagraph (C) (relating to the last day

on which advances may be made) shall be applied
133 Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

as if the reference to ‘September 30, 1995’ were a

reference to ‘September 30, 1997’;

‘‘(II) subparagraph (E) (relating to the Secretary’s determination of reasonable assurance of

reimbursement from the annual Federal payment

appropriated to the District of Columbia) shall be

applied as if the reference to ‘September 30, 1996’

were a reference to ‘September 30, 1997’;

‘‘(III) the Secretary may not make an advance

under this subsection unless all advances made

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

by withholding from the annual Federal payment

appropriated to the District of Columbia for the

fiscal year ending September 30, 1997, under title

V of the District of Columbia Self-Government

and Governmental Reorganization Act, and applying toward reimbursement for such advances an

amount equal to the amount needed to fully reimburse the Treasury for such advances; and

‘‘(IV) the Secretary may not make an advance

under this subsection unless the Secretary has

been provided the certifications and information

described in paragraphs (3) through (6) of section

602(b).

‘‘(ii) NEW LATEST PERMISSIBLE MATURITY DATE.— The provisions of subsection (a)(4) shall apply with respect to the maturity of advances made under this

subsection, in the same manner as such provisions

apply with respect to the maturity of advances made

before October 1, 1995, except that subparagraph (B)

of such subsection (relating to the latest permissible

maturity date) shall apply as if the reference to ‘September 30, 1995’ were a reference to ‘September 30,

1997’.

‘‘(C) NEW MAXIMUM AMOUNT OUTSTANDING.—

‘‘(i) IN GENERAL.—Except as provided in clause

(iii), if the conditions described in clause (ii) are satisfied, each advance made under this subsection shall be

in the amount designated by the Mayor in the Mayor’s

requisition for such advance.

‘‘(ii) CONDITIONS APPLICABLE TO DESIGNATED

AMOUNT.— Clause (i) applies if the Mayor determines

that the amount designated in the Mayor’s requisition

for such advance is needed to accomplish the purpose

described in paragraph (1), and the Authority approves such amount.

‘‘(iii) AGGREGATE MAXIMUM AMOUNT OUTSTANDING.—The sum of the anticipated principal and

interest requirements of all advances made under this

paragraph may not be greater than 100 percent of the

fiscal year 1997 limit.

‘‘(iv) FISCAL YEAR 1997 LIMIT DESCRIBED.—In this

subparagraph, the ‘fiscal year 1997 limit’ means the

amount authorized to be appropriated to the District

of Columbia as the annual Federal payment to the
Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 134

District of Columbia under title V of the District of Columbia Self-Government and Governmental Reorganization Act for the fiscal year ending September 30,

1997.

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

204(b) of the District of Columbia Financial Responsibility

and Management Assistance Act of 1995, each advance

made under this subsection for the account of the District

shall be deposited by the Secretary into an escrow account

held by the Authority.

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

‘‘(a) IN GENERAL.—If the conditions in subsection (b) are satisfied, the Secretary shall make an advance of funds from time to

time, out of any money in the Treasury not otherwise appropriated,

for the purpose of assisting the District government in meeting its

general expenditures, as authorized by Congress, at times of seasonal cash-flow deficiencies.

‘‘(b) CONDITIONS TO MAKING ANY SHORT-TERM ADVANCE.—The

Secretary shall make an advance under this section if—

‘‘(1) the Mayor delivers to the Secretary a requisition for

an advance under this section;

‘‘(2) the date on which the requisitioned advance is to be

made is in a control period;

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

‘‘(A) the District government has prepared and submitted a financial plan and budget for the District government;

‘‘(B) there is an approved financial plan and budget in

effect under the District of Columbia Financial Responsibility and Management Assistance Act of 1995 for the fiscal year for which the requisition is to be made;

‘‘(C) at the time of the Mayor’s requisition for an advance, the District government is in compliance with the

financial plan and budget;

‘‘(D) both the receipt of funds from such advance and

the reimbursement of the Treasury for such advance are

consistent with the financial plan and budget for the year;

and

‘‘(E) such advance will not adversely affect the financial stability of the District government;

‘‘(4) the Authority certifies to the Secretary, at the time of

the Mayor’s requisition for an advance, that the District government is effectively unable to obtain credit in the public

credit markets or elsewhere in sufficient amounts and on sufficiently reasonable terms to meet the District government’s financing needs;

‘‘(5) the Inspector General of the District of Columbia certifies to the Secretary the information described in paragraph

(3) by providing the Secretary with a certification conducted by

an outside auditor under a contract entered into pursuant to

section 208(a)(4) of the District of Columbia Procurement Practices Act of 1985;

‘‘(6) the Secretary receives such additional certifications

and opinions relating to the financial position of the District
135 Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

government as the Secretary determines to be appropriate

from such other Federal agencies and instrumentalities as the

Secretary determines to be appropriate; and

‘‘(7) the Secretary determines that there is reasonable assurance of reimbursement for the advance from the amount

authorized to be appropriated as the annual Federal payment

to the District of Columbia under title V of the District of Columbia Self-Government and Governmental Reorganization Act

for the fiscal year following the fiscal year in which such advance is made.

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

‘‘(1) IN GENERAL.—Except as provided in paragraph (3), if

the conditions in paragraph (2) are satisfied, each advance

made under this section shall be in the amount designated by

the Mayor in the Mayor’s requisition for such advance.

‘‘(2) CONDITIONS APPLICABLE TO DESIGNATED AMOUNT.—

Paragraph (1) applies if—

‘‘(A) the Mayor determines that the amount designated

in the Mayor’s requisition for such advance is needed to

accomplish the purpose described in subsection (a); and

‘‘(B) the Authority—

‘‘(i) concurs in the Mayor’s determination under

subparagraph (A); and

‘‘(ii) determines that the reimbursement obligation

of the District government for an advance made under

this section in the amount designated in the Mayor’s

requisition is consistent with the financial plan for the

year.

‘‘(3) MAXIMUM AMOUNT OUTSTANDING.—

‘‘(A) IN GENERAL.—Notwithstanding paragraph (1), the

unpaid principal balance of all advances made under this

section in any fiscal year of the District government shall

not at any time be greater than 100 percent of applicable

limit.

‘‘(B) SPECIAL RULE FOR FISCAL YEAR 1997.—The unpaid

principal balance of all advances made under this section

in fiscal year 1997 of the District government shall not at

any time be greater than the difference between—

‘‘(i) 150 percent of the applicable limit for such fiscal year; and

‘‘(ii) the unpaid principal balance of any advances

made under section 601(d).

‘‘(C) APPLICABLE LIMIT DEFINED.—In this paragraph,

the ‘applicable limit’ for a fiscal year is the amount authorized under title V of the District of Columbia Self-Government and Governmental Reorganization Act for appropriation as the Federal payment to the District of Columbia for

the fiscal year following the fiscal year in which the advance is made.

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

‘‘(1) IN GENERAL.—Except as provided in paragraph (3), if

the condition in paragraph (2) is satisfied, each advance made

under this section shall mature on the date designated by the

Mayor in the Mayor’s requisition for such advance.
Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 136

‘‘(2) CONDITION APPLICABLE TO DESIGNATED MATURITY.—

Paragraph (1) applies if the Authority determines that the reimbursement obligation of the District government for an advance made under this section having the maturity date designated in the Mayor’s requisition is consistent with the financial plan for the year.

‘‘(3) LATEST PERMISSIBLE MATURITY DATE.—Notwithstanding paragraph (1), the maturity date for any advance

made under this section shall not be later than 11 months

after the date on which such advance is made.

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

shall bear interest at an annual rate equal to a rate determined by

the Secretary at the time that the Secretary makes such advance

taking into consideration the prevailing yield on outstanding marketable obligations of the United States with remaining periods to

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

percent.

‘‘(f) 10-BUSINESS-DAY ZERO BALANCE REQUIREMENT.—After the

expiration of the 12-month period beginning on the date on which

the first advance is made under this section, the Secretary shall

not make any new advance under this section unless the District

government has—

‘‘(1) reduced to zero at the same time the principal balance

of all advances made under this section at least once during

the previous 12-month period; and

‘‘(2) not requisitioned any advance to be made under this

section in any of the 10 business days following such reduction.

‘‘(g) DEPOSIT OF ADVANCES.—As provided in section 204(b) of

the District of Columbia Financial Responsibility and Management

Assistance Act of 1995, advances made under this section for the

account of the District government shall be deposited by the Secretary into an escrow account held by the Authority.

‘‘SEC. 603. SECURITY FOR ADVANCES.

‘‘(a) IN GENERAL.—The Secretary shall require the District government to provide such security for any advance made under this

title as the Secretary determines to be appropriate.

‘‘(b) AUTHORITY TO REQUIRE SPECIFIC SECURITY.—As security

for any advance made under this title, the Secretary may require

the District government to—

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

the District government, if such pledging does not cause the

District government to violate existing laws or contracts; and

‘‘(2) establish a debt service reserve fund pledged to the

Secretary.

‘‘SEC. 604. REIMBURSEMENT TO THE TREASURY.

‘‘(a) REIMBURSEMENT AMOUNT.—

‘‘(1) IN GENERAL.—Except as provided in paragraph (2), on

any date on which a reimbursement payment is due to the

Treasury under the terms of any advance made under this

title, the District shall pay to the Treasury the amount of such

reimbursement payment out of taxes and revenue collected for

the support of the District government.

‘‘(2) EXCEPTIONS FOR TRANSITIONAL ADVANCES.—

‘‘(A) ADVANCES MADE BEFORE OCTOBER 1, 1995.—
137 Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

‘‘(i) FINANCIAL PLAN AND BUDGET APPROVED.—If

the Authority approves a financial plan for the District

government before October 1, 1995, the District government may use the proceeds of any advance made

under section 602 to discharge its obligation to reimburse the Treasury for any advance made under section 601(a).

‘‘(ii) FINANCIAL PLAN AND BUDGET NOT AP- PROVED.—If the Authority has not approved a financial plan and budget for the District government by

October 1, 1995, the annual Federal payment appropriated to the District government for the fiscal year

ending September 30, 1996, shall be withheld and applied to discharge the District government’s obligation

to reimburse the Treasury for any advance made

under section 601(a).

‘‘(B) ADVANCES MADE ON OR AFTER OCTOBER 1, 1995.— ‘‘(i) FINANCIAL PLAN AND BUDGET APPROVED.—If

the Authority approves a financial plan and budget for

the District government during fiscal year 1996, the

District may use the proceeds of any advance made

under section 602 to discharge its obligation to reimburse the Treasury for any advance made under section 601(b).

‘‘(ii) FINANCIAL PLAN AND BUDGET NOT AP- PROVED.—If the Authority has not approved a financial plan and budget for the District government by

October 1, 1996, the annual Federal payment appropriated to the District government for the fiscal year

ending September 30, 1997, shall be withheld and applied to discharge the District government’s obligation

to reimburse the Treasury for any advance made

under section 601(b).

‘‘(b) REMEDIES FOR FAILURE TO REIMBURSE.—If, on any date on

which a reimbursement payment is due to the Treasury under the

terms of any advance made under this title, the District government does not make such reimbursement payment, the Secretary

shall take the actions listed in this subsection.

‘‘(1) WITHHOLD ANNUAL FEDERAL PAYMENT.—Notwithstanding any other law, before turning over to the Authority

(on behalf of the District government under section 205 of the

District of Columbia Financial Responsibility and Management

Assistance Act of 1995) any annual Federal payment appropriated to the District government for any fiscal year under

title V of the District of Columbia Self-Government and Governmental Reorganization Act (if any), the Secretary shall

withhold from such annual Federal payment, and apply toward

reimbursement for the payment not made, an amount equal to

the amount needed to fully reimburse the Treasury for the

payment not made.

‘‘(2) WITHHOLD OTHER FEDERAL PAYMENTS.—If, after the

Secretary takes the action described in paragraph (1), the

Treasury is not fully reimbursed, the Secretary shall withhold

from each grant, entitlement, loan, or other payment to the

District government by the Federal Government not dedicated
Sec. 204 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 138

to making entitlement or benefit payments to individuals, and

apply toward reimbursement for the payment not made, an

amount that, when added to the amount withheld from each

other such grant, entitlement, loan, or other payment, will be

equal to the amount needed to fully reimburse the Treasury for

the payment not made.

‘‘(3) ATTACH AVAILABLE DISTRICT REVENUES.—If, after the

Secretary takes the actions described in paragraphs (1) and (2),

the Treasury is not fully reimbursed, the Secretary shall attach any and all revenues of the District government which the

Secretary may lawfully attach, and apply toward reimbursement for the payment not made, an amount equal to the

amount needed to fully reimburse the Treasury for the payment not made.

‘‘(4) TAKE OTHER ACTIONS.—If, after the Secretary takes

the actions described in paragraphs (1) through (3), the Treasury is not fully reimbursed, the Secretary shall take any and

all other actions permitted by law to recover from the District

government the amount needed to fully reimburse the Treasury for the payment not made.

‘‘SEC. 605. DEFINITIONS.

‘‘For purposes of this title—

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

Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia

Financial Responsibility and Management Assistance Act of

1995;

‘‘(2) the term ‘control period’ has the meaning given such

term under section 305(4) of such Act;

‘‘(3) the term ‘District government’ has the meaning given

such term under section 305(5) of such Act;

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

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

‘‘(5) the term ‘Secretary’ means the Secretary of the Treasury.’’.

(d) DEPOSIT OF BORROWED FUNDS WITH AUTHORITY.—If the

District government borrows funds during a control year, the funds

shall be deposited into an escrow account held by the Authority, to

be allocated by the Authority to the Mayor at such intervals and

in accordance with such terms and conditions as it considers appropriate, consistent with the financial plan and budget for the year

and with any other withholding of funds by the Authority pursuant

to this Act.

(e) EXPENDITURE OF FUNDS FROM ACCOUNT IN ACCORDANCE

WITH AUTHORITY INSTRUCTIONS.—Any funds allocated by the Authority to the Mayor from the escrow account described in subsection (b)(1) or the escrow account described in subsection (d) may

be expended by the Mayor only in accordance with the terms and

conditions established by the Authority at the time the funds are

allocated.

(f) PROHIBITION AGAINST BORROWING WHILE SUIT PENDING.—

The Mayor may not requisition advances from the Treasury pursuant to title VI of the District of Columbia Revenue Act of 1939 if

there is an action filed by the Mayor or the Council which is pend-
139 Sec. 206 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

4Section 11601(b)(2)(A) of Public Law 105–33 repealed section 205 (relating to the deposit of

the annual Federal contribution with the Authority), effective October 1, 1997.

ing against the Authority challenging the establishment of or any

action taken by the Authority.

øSEC. 205. REPEALED.4¿

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

PLAN AND BUDGET.

(a) SUBMISSION OF REPORTS.—Not later than 30 days after the

expiration of each quarter of each fiscal year (beginning with fiscal

year 1996), the Mayor shall submit reports to the Authority describing the actual revenues obtained and expenditures made by

the District government during the quarter with its cash flows during the quarter, and comparing such actual revenues, expenditures,

and cash flows with the most recent projections for these items.

(b) DEMAND FOR ADDITIONAL INFORMATION.—If the Authority

determines, based on reports submitted by the Mayor under subsection (a), independent audits, or such other information as the

Authority may obtain, that the revenues or expenditures of the District government during a control year are not consistent with the

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

the Mayor to provide such additional information as the Authority

determines to be necessary to explain the inconsistency.

(c) CERTIFICATION OF VARIANCE.— (1) IN GENERAL.—After requiring the Mayor to provide additional information under subsection (b), the Authority shall

certify to the Council, the President, the Secretary of the

Treasury, and Congress that the District government is at

variance with the financial plan and budget unless—

(A)(i) the additional information provides an explanation for the inconsistency which the Authority finds reasonable and appropriate, or

(ii) the District government adopts or implements remedial action (including revising the financial plan and

budget pursuant to section 202(e)) to correct the inconsistency which the Authority finds reasonable and appropriate, taking into account the terms of the financial plan

and budget; and

(B) the Mayor agrees to submit the reports described

in subsection (a) on a monthly basis for such period as the

Authority may require.

(2) SPECIAL RULE FOR INCONSISTENCIES ATTRIBUTABLE TO

ACTS OF CONGRESS.—

(A) DETERMINATION BY AUTHORITY.—If the Authority

determines that the revenues or expenditures of the District government during a control year are not consistent

with the financial plan and budget for the year as approved by the Authority under section 202 as a result of

the terms and conditions of the budget of the District government for the year as enacted by Congress or as a result

of any other law enacted by Congress which affects the

District of Columbia, the Authority shall so notify the

Mayor.

(B) CERTIFICATION.—In the case of an inconsistency

described in subparagraph (A), the Authority shall certify
Sec. 207 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 140

to the Council, the President, the Secretary of the Treasury, and Congress that the District government is at variance with the financial plan and budget unless the District

government adopts or implements remedial action (including revising the financial plan and budget pursuant to section 202(e)) to correct the inconsistency which the Authority finds reasonable and appropriate, taking into account

the terms of the financial plan and budget.

(d) EFFECT OF CERTIFICATION.—If the Authority certifies to the

Secretary of the Treasury that a variance exists—

(1) the Authority may withhold any funds deposited with

the Authority under section 204(b), section 204(d), or section

205(a) which would otherwise be expended on behalf of the

District government; and

(2) the Secretary shall withhold funds otherwise payable to

the District of Columbia under such Federal programs as the

Authority may specify (other than funds dedicated to making

entitlement or benefit payments to individuals), in such

amounts and under such other conditions as the Authority may

specify.

SEC. 207. RECOMMENDATIONS ON FINANCIAL STABILITY AND MANAGEMENT RESPONSIBILITY.

(a) IN GENERAL.—The Authority may at any time submit recommendations to the Mayor, the Council, the President, and Congress on actions the District government or the Federal Government may take to ensure compliance by the District government

with a financial plan and budget or to otherwise promote the financial stability, management responsibility, and service delivery efficiency of the District government, including recommendations relating to—

(1) the management of the District government’s financial

affairs, including cash forecasting, information technology,

placing controls on expenditures for personnel, reducing benefit

costs, reforming procurement practices, and placing other controls on expenditures;

(2) the relationship between the District government and

the Federal Government;

(3) the structural relationship of departments, agencies,

and independent agencies within the District government;

(4) the modification of existing revenue structures, or the

establishment of additional revenue structures;

(5) the establishment of alternatives for meeting obligations to pay for the pensions of former District government employees;

(6) modifications or transfers of the types of services which

are the responsibility of and are delivered by the District government;

(7) modifications of the types of services which are delivered by entities other than the District government under alternative service delivery mechanisms (including privatization

and commercialization);

(8) the effects of District of Columbia laws and court orders on the operations of the District government;
141 Sec. 207 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

(9) the establishment of a personnel system for employees

of the District government which is based upon employee performance standards; and

(10) the improvement of personnel training and proficiency, the adjustment of staffing levels, and the improvement of training and performance of management and supervisory personnel.

(b) RESPONSE TO RECOMMENDATIONS FOR ACTIONS WITHIN AUTHORITY OF DISTRICT GOVERNMENT.—

(1) IN GENERAL.—In the case of any recommendations submitted under subsection (a) during a control year which are

within the authority of the District government to adopt, not

later than 90 days after receiving the recommendations, the

Mayor or the Council (whichever has the authority to adopt the

recommendation) shall submit a statement to the Authority,

the President, and Congress which provides notice as to whether the District government will adopt the recommendations.

(2) IMPLEMENTATION PLAN REQUIRED FOR ADOPTED RECOMMENDATIONS.—If the Mayor or the Council (whichever is applicable) notifies the Authority and Congress under paragraph

(1) that the District government will adopt any of the recommendations submitted under subsection (a), the Mayor or

the Council (whichever is applicable) shall include in the statement a written plan to implement the recommendation which

includes—

(A) specific performance measures to determine the extent to which the District government has adopted the recommendation; and

(B) a schedule for auditing the District government’s

compliance with the plan.

(3) EXPLANATIONS REQUIRED FOR RECOMMENDATIONS NOT

ADOPTED.—If the Mayor or the Council (whichever is applicable) notifies the Authority, the President, and Congress under

paragraph (1) that the District government will not adopt any

recommendation submitted under subsection (a) which the District government has authority to adopt, the Mayor or the

Council shall include in the statement explanations for the rejection of the recommendations.

(c) IMPLEMENTATION OF REJECTED RECOMMENDATIONS BY AUTHORITY.—

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

is applicable) notifies the Authority, the President, and Congress under subsection (b)(1) that the District government will

not adopt any recommendation submitted under subsection (a)

which the District government has authority to adopt, the Authority may by a majority vote of its members take such action

concerning the recommendation as it deems appropriate, after

consulting with the Committee on Government Reform and

Oversight of the House of Representatives and the Committee

on Governmental Affairs of the Senate.

(2) EFFECTIVE DATE.—This subsection shall apply with respect to recommendations of the Authority made after the expiration of the 6-month period which begins on the date of the

enactment of this Act.
Sec. 208 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 142

(d) ADDITIONAL POWER TO ISSUE ORDERS, RULES, AND REGULATIONS.—

(1) IN GENERAL.—In addition to the authority described in

subsection (c), the Authority may at any time issue such orders, rules, or regulations as it considers appropriate to carry

out the purposes of this Act and the amendments made by this

Act, to the extent that the issuance of such an order, rule, or

regulation is within the authority of the Mayor or the head of

any department or agency of the District government, and any

such order, rule, or regulation shall be legally binding to the

same extent as if issued by the Mayor or the head of any such

department or agency.

(2) NOTIFICATION.—Upon issuing an order, rule, or regulation pursuant to this subsection, the Authority shall notify the

Mayor, the Council, the President, and Congress.

(3) NO JUDICIAL REVIEW OF DECISION TO ISSUE ORDER.—

The decision by the Authority to issue an order, rule, or regulation pursuant to this subsection shall be final and shall not be

subject to judicial review.

SEC. 208. SPECIAL RULES FOR FISCAL YEAR 1996.

(a) ADOPTION OF TRANSITION BUDGET.—Notwithstanding any

provision of section 202 to the contrary, in the case of fiscal year

1996, the following rules shall apply:

(1) Not later than 45 days after the appointment of its

members, the Authority shall review the proposed budget for

the District of Columbia for such fiscal year submitted to Congress under section 446 of the District of Columbia Self-Government and Governmental Reorganization Act (taking into account any items or provisions disapproved by the Mayor or disapproved by the Mayor and reenacted by the Council under

section 404(f) of the District of Columbia Self-Government and

Governmental Reorganization Act, as amended by section

202(f)(2)) and the multiyear plan for the District of Columbia

prepared pursuant to section 443 of the District of Columbia

Self-Government and Governmental Reorganization Act, and

shall submit any recommendations for modifications to such financial plan and budget to promote the financial stability of

the District government to the Mayor, the Council, the President, and Congress.

(2) Not later than 15 days after receiving the recommendations of the Authority submitted under paragraph (1), the

Council (in consultation with the Mayor) shall promptly adopt

a revised budget for the fiscal year (in this section referred to

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

budget to the Authority, the President, and Congress.

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

budget from the Council under paragraph (2), the Authority

shall submit a report to the Mayor, the Council, the President,

and Congress analyzing the budget (taking into account any

items or provisions disapproved by the Mayor or disapproved

by the Mayor and reenacted by the Council under section

404(f) of the District of Columbia Self-Government and Governmental Reorganization Act, as amended by section 202(f)(2)),

and shall include in the report such recommendations for revi-
143 Sec. 208 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

sions to the transition budget as the Authority considers appropriate to promote the financial stability of the District government during the fiscal year.

(b) FINANCIAL PLAN AND BUDGET.— (1) DEADLINE FOR SUBMISSION.—For purposes of section

202, the Mayor shall submit the financial plan and budget for

fiscal year 1996 as soon as practicable after the date of the enactment of this Act (in accordance with guidelines established

by the Authority).

(2) ADOPTION BY COUNCIL.—In accordance with the procedures applicable under section 202 (including procedures providing for review by the Authority)—

(A) the Council shall adopt the financial plan and

budget for the fiscal year (including the supplemental

budget incorporated in the financial plan and budget) prior

to the submission by the Mayor of the financial plan and

budget for fiscal year 1997 under section 202(a); and

(B) the financial plan and budget adopted by the

Council (and, in the case of a financial plan and budget

disapproved by the Authority, together with the financial

plan and budget approved and recommended by the Authority) shall be submitted to Congress (in accordance with

the procedures applicable under such section) as a supplemental budget request for fiscal year 1996 (in accordance

with section 446 of the District of Columbia Self-Government and Governmental Reorganization Act).

(3) TRANSITION BUDGET AS TEMPORARY FINANCIAL PLAN

AND BUDGET.—Until the approval of the financial plan and

budget for fiscal year 1996 by the Authority under this subsection, the transition budget established under subsection (a)

(as enacted by Congress) shall serve as the financial plan and

budget adopted under this subtitle for purposes of this Act

(and any provision of law amended by this Act) for fiscal year

1996.

(c) RESTRICTIONS ON ADVANCES FROM TREASURY.—

(1) MONTHLY DETERMINATION OF PROGRESS TOWARD FINANCIAL PLAN AND BUDGET.—During each month of fiscal year

1996 prior to the adoption of the financial plan and budget, the

Authority shall determine whether the District government is

making appropriate progress in preparing and adopting a financial plan and budget for the fiscal year under this subtitle.

(2) CERTIFICATION.—The Authority shall provide the President and Congress with a certification if the Authority finds

that the District government is not making appropriate

progress in developing the financial plan and budget for a

month, and shall notify the President and Congress that the

certification is no longer in effect if the Authority finds that

the District government is making such progress after the certification is provided.

(3) PROHIBITION AGAINST ALLOCATION OF ADVANCES IF CERTIFICATION IN EFFECT.—At any time during which a certification under paragraph (2) is in effect, the Authority may not

allocate any funds obtained through advances to the Mayor

under title VI of the District of Columbia Revenue Act of 1939

from the escrow account in which the funds are held.
Sec. 209 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 144

SEC. 209. CONTROL PERIODS DESCRIBED.

(a) INITIATION.—For purposes of this Act, a ‘‘control period’’ is

initiated upon the occurrence of any of the following events (as determined by the Authority based upon information obtained

through the Mayor, the Inspector General of the District of Columbia, or such other sources as the Authority considers appropriate):

(1) The requisitioning by the Mayor of advances from the

Treasury of the United States under title VI of the District of

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

the existence of any unreimbursed amounts obtained pursuant

to such authority.

(2) The failure of the District government to provide sufficient revenue to a debt service reserve fund of the Authority

under subtitle B.

(3) The default by the District government with respect to

any loans, bonds, notes, or other form of borrowing.

(4) The failure of the District government to meet its payroll for any pay period.

(5) The existence of a cash deficit of the District government at the end of any quarter of the fiscal year in excess of

the difference between the estimated revenues of the District

government and the estimated expenditures of the District government (including repayments of temporary borrowings) during the remainder of the fiscal year or the remainder of the fiscal year together with the first 6 months of the succeeding fiscal year (as determined by the Authority in consultation with

the Chief Financial Officer of the District of Columbia).

(6) The failure of the District government to make required

payments relating to pensions and benefits for current and

former employees of the District government.

(7) The failure of the District government to make required

payments to any entity established under an interstate compact to which the District of Columbia is a signatory.

(b) TERMINATION.—

(1) IN GENERAL.—A control period terminates upon the certification by the Authority that—

(A) the District government has adequate access to

both short-term and long-term credit markets at reasonable interest rates to meet its borrowing needs; and

(B) for 4 consecutive fiscal years (occurring after the

date of the enactment of this Act) the expenditures made

by the District government during each of the years did

not exceed the revenues of the District government during

such years (as determined in accordance with generally accepted accounting principles, as contained in the comprehensive annual financial report for the District of Columbia under section 448(a)(4) of the District of Columbia

Self-Government and Governmental Reorganization Act).

(2) CONSULTATION WITH INSPECTOR GENERAL.—In making

the determination under this subsection, the Authority shall

consult with the Inspector General of the District of Columbia.

(c) CONTROL PERIOD DEEMED TO EXIST UPON ENACTMENT.—

For purposes of this subtitle, a control period is deemed to exist

upon the enactment of this Act.
145 Sec. 212 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

Subtitle B—Issuance of Bonds

SEC. 211. AUTHORITY TO ISSUE BONDS.

(a) IN GENERAL.— (1) REQUEST OF MAYOR.—Subject to the requirements of

this subtitle, the Authority may at the request of the Mayor

pursuant to an Act of the Council issue bonds, notes, or other

obligations to borrow funds to obtain funds for the use of the

District government, in such amounts and in such manner as

the Authority considers appropriate.

(2) SPECIAL RULE FOR INSTRUMENTALITIES WITH INDE- PENDENT BORROWING AUTHORITY.—In the case of an agency or

instrumentality of the District government which under law

has the authority to issue bonds, notes, or obligations to borrow funds without the enactment of an Act of the Council, the

Authority may issue bonds, notes, or other obligations to borrow funds for the use or functions of such agency or instrumentality at the request of the head of the agency or instrumentality.

(b) DEPOSIT OF FUNDS OBTAINED THROUGH BORROWING WITH

AUTHORITY.—Any funds obtained by the District government

through borrowing by the Authority pursuant to this subtitle shall

be deposited into an escrow account held by the Authority, which

shall allocate such funds to the District government in such

amounts and at such times as the Authority considers appropriate,

consistent with the specified purposes of such funds and the applicable financial plan and budget under subtitle A.

(c) USES OF FUNDS OBTAINED THROUGH BONDS.—Any funds obtained through the issuance of bonds, notes, or other obligations

pursuant to this subtitle may be used for any purpose (consistent

with the applicable financial plan and budget) under subtitle A for

which the District government may use borrowed funds under the

District of Columbia Self-Government and Governmental Reorganization Act and for any other purpose which the Authority considers appropriate.

SEC. 212. PLEDGE OF SECURITY INTEREST IN REVENUES OF DISTRICT

GOVERNMENT.

(a) IN GENERAL.—The Authority may pledge or grant a security interest in revenues to individuals or entities purchasing

bonds, notes, or other obligations issued pursuant to this subtitle.

(b) DEDICATION OF REVENUE STREAM FROM DISTRICT GOVERN- MENT.—The Authority shall require the Mayor—

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

payable to the District government (which are not otherwise

pledged or committed), including payments from the Federal

Government, to the Authority for purposes of securing repayment of bonds, notes, or other obligations issued pursuant to

this subtitle; and

(2) to transfer the proceeds of any tax levied for purposes

of securing such bonds, notes, or other obligations to the Authority immediately upon collection.

SEC. 213. ESTABLISHMENT OF DEBT SERVICE RESERVE FUND.

(a) IN GENERAL.—As a condition for the issuance of bonds,

notes, or other obligations pursuant to this subtitle, the Authority
Sec. 213 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 146

shall establish a debt service reserve fund in accordance with this

section.

(b) REQUIREMENTS FOR FUND.—

(1) FUND DESCRIBED.—A debt service reserve fund established by the Authority pursuant to this subsection shall consist of such funds as the Authority may make available, and

shall be a trust fund held for the benefit and security of the

obligees of the Authority whose bonds, notes, or other obligations are secured by such fund.

(2) USES OF FUNDS.—Amounts in a debt service reserve

fund may be used solely for the payment of the principal of

bonds secured in whole or in part by such fund, the purchase

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

bonds, or the payment of any redemption premium required to

be paid when such bonds and notes are redeemed prior to maturity.

(3) RESTRICTIONS ON WITHDRAWALS.—

(A) IN GENERAL.—Amounts in a debt service reserve

fund may not be withdrawn from the fund at any time in

an amount that would reduce the amount of the fund to

less than the minimum reserve fund requirement established for such fund in the resolution of the Authority creating such fund, except for withdrawals for the purpose of

making payments when due of principal, interest, redemption premiums and sinking fund payments, if any, with respect to such bonds for the payment of which other moneys

of the Authority are not available, and for the purpose of

funding the operations of the Authority for a fiscal year (in

such amounts and under such conditions as are established under the budget of the Authority for the fiscal year

under section 106(a)).

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

(A) may be construed to prohibit the Authority from transferring any income or interest earned by, or increments to,

any debt service reserve fund due to the investment thereof to other funds or accounts of the Authority (to the extent such transfer does not reduce the amount of the debt

service reserve fund below the minimum reserve fund requirement established for such fund) for such purposes as

the Authority considers appropriate to promote the financial stability and management efficiency of the District

government.

SEC. 214. OTHER REQUIREMENTS FOR ISSUANCE OF BONDS.

(a) MINIMUM DEBT SERVICE RESERVE FUND REQUIREMENT.—

The Authority may not at any time issue bonds, notes, or other obligations pursuant to this subtitle which are secured in whole or in

part by a debt service reserve fund under section 213 if issuance

of such bonds would cause the amount in the debt reserve fund to

fall below the minimum reserve requirement for such fund, unless

the Authority at the time of issuance of such bonds shall deposit

in the fund an amount (from the proceeds of the bonds to be issued

or from other sources) which when added to the amount already in

such fund will cause the total amount on deposit in such fund to
147 Sec. 221 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

equal or exceed the minimum reserve fund requirement established

by the Authority at the time of the establishment of the fund.

(b) AMOUNTS INCLUDED IN AGGREGATE LIMIT ON DISTRICT BOR- ROWING.—Any amounts provided to the District government

through the issuance of bonds, notes, or other obligations to borrow

funds pursuant to this subtitle shall be taken into account in determining whether the amount of funds borrowed by the District of

Columbia during a fiscal year exceeds the limitation on such

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

Self-Government and Governmental Reorganization Act.

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

The full faith and credit of the United States is not pledged for

the payment of any principal of or interest on any bond, note, or

other obligation issued by the Authority pursuant to this subtitle.

The United States is not responsible or liable for the payment of

any principal of or interest on any bond, note, or other obligation

issued by the Authority pursuant to this subtitle.

Subtitle C—Other Duties of Authority

SEC. 221. DUTIES OF AUTHORITY DURING YEAR OTHER THAN CONTROL YEAR.

(a) IN GENERAL.—During the period beginning upon the termination of a control period pursuant to section 209(b) and ending

with the suspension of its activities pursuant to section 107(a), the

Authority shall conduct the following activities:

(1) The Authority shall review the budgets of the District

government adopted by the Council under section 446 of the

District of Columbia Self-Government and Governmental Reorganization Act for each fiscal year occurring during such period.

(2) At such time prior to the enactment of such budget by

Congress as the Authority considers appropriate, the Authority

shall prepare a report analyzing the budget and submit the report to the Mayor, the Council, the President, and Congress.

(3) The Authority shall monitor the financial status of the

District government and shall submit reports to the Mayor, the

Council, the President, and Congress if the Authority determines that a risk exists that a control period may be initiated

pursuant to section 209(a).

(4) The Authority shall carry out activities under subtitle

B with respect to bonds, notes, or other obligations of the Authority outstanding during such period.

(b) REQUIRING MAYOR TO SUBMIT BUDGETS TO AUTHORITY.— With respect to the budget for each fiscal year occurring during the

period described in subsection (a), at the time the Mayor submits

the budget of the District government adopted by the Council to

the President under section 446 of the District of Columbia SelfGovernment and Governmental Reorganization Act, the Mayor

shall submit such budget to the Authority.

SEC. 222. GENERAL ASSISTANCE IN ACHIEVING FINANCIAL STABILITY

AND MANAGEMENT EFFICIENCY.

In addition to any other actions described in this title, the Authority may undertake cooperative efforts to assist the District gov-
Sec. 222 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 148

ernment in achieving financial stability and management efficiency, including—

(1) assisting the District government in avoiding defaults,

eliminating and liquidating deficits, maintaining sound budgetary practices, and avoiding interruptions in the delivery of

services;

(2) assisting the District government in improving the delivery of municipal services, the training and effectiveness of

personnel of the District government, and the efficiency of

management and supervision; and

(3) making recommendations to the President for transmission to Congress on changes to this Act or other Federal

laws, or other actions of the Federal Government, which would

assist the District government in complying with an approved

financial plan and budget under subtitle A.

SEC. 223. OBTAINING REPORTS.

The Authority may require the Mayor, the Chair of the Council, the Chief Financial Officer of the District of Columbia, and the

Inspector General of the District of Columbia, to prepare and submit such reports as the Authority considers appropriate to assist it

in carrying out its responsibilities under this Act, including submitting copies of any reports regarding revenues, expenditures, budgets, costs, plans, operations, estimates, and other financial or budgetary matters of the District government.

SEC. 224. REPORTS AND COMMENTS.

(a) ANNUAL REPORTS TO CONGRESS.—Not later than 30 days

after the last day of each fiscal year which is a control year, the

Authority shall submit a report to Congress describing—

(1) the progress made by the District government in meeting the objectives of this Act during the fiscal year;

(2) the assistance provided by the Authority to the District

government in meeting the purposes of this Act for the fiscal

year; and

(3) any other activities of the Authority during the fiscal

year.

(b) REVIEW AND ANALYSIS OF PERFORMANCE AND FINANCIAL

ACCOUNTABILITY REPORTS.— (1) IN GENERAL.—The Authority shall review each report

prepared and submitted by the Mayor under section 456 of the

District of Columbia Self-Government and Governmental Reorganization Act (as added by section 3(a) of the Federal Payment Reauthorization Act of 1994), and shall submit a report

to Congress analyzing the completeness and accuracy of such

reports.

(2) SUBMISSION OF REPORTS BY MAYOR.—Section 456 of the

District of Columbia Self-Government and Governmental Reorganization Act, as added by section 3(a) of the Federal Payment Reauthorization Act of 1994, is amended by adding at the

end the following new subsection:

‘‘(e) SUBMISSION OF REPORTS TO DISTRICT OF COLUMBIA FINAN- CIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY.— In the case of any report submitted by the Mayor under this section for a fiscal year (or any quarter of a fiscal year) which is a control year under the District of Columbia Financial Responsibility
149 Sec. 224 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

and Management Assistance Act of 1995, the Mayor shall submit

the report to the District of Columbia Financial Responsibility and

Management Assistance Authority established under section 101(a)

of such Act in addition to any other individual to whom the Mayor

is required to submit the report under this section.’’.

(c) COMMENTS REGARDING ACTIVITIES OF DISTRICT GOVERNMENT.—At any time during a control year, the Authority may submit a report to Congress describing any action taken by the District government (or any failure to act by the District government)

which the Authority determines will adversely affect the District

government’s ability to comply with an approved financial plan and

budget under subtitle A or will otherwise have a significant adverse impact on the best interests of the District of Columbia.

(d) REPORTS ON EFFECT OF FEDERAL LAWS ON DISTRICT GOVERNMENT.—At any time during any year, the Authority may submit a report to the Mayor, the Council, the President, and Congress

on the effect of laws enacted by Congress on the financial plan and

budget for the year and on the financial stability and management

efficiency of the District government in general.

(e) MAKING REPORTS PUBLICLY AVAILABLE.—The Authority

shall make any report submitted under this section available to the

public, except to the extent that the Authority determines that the

report contains confidential material.

SEC. 225. DISPOSITION OF CERTAIN SCHOOL PROPERTY.

(a) POWER TO DISPOSE.—Notwithstanding any other provision

of law relating to the disposition of a facility or property described

in subsection (d), the Authority may dispose (by sale, lease, or otherwise) of any facility or property described in subsection (d).

(b) PREFERENCE FOR PUBLIC CHARTER SCHOOL.—In disposing

of a facility or property under this section, the Authority shall give

preference to an eligible applicant (as defined in section 2002 of the

District of Columbia School Reform Act of 1995) whose petition to

establish a public charter school has been conditionally approved

under section 2203(d)(2) of such Act, or a Board of Trustees (as defined in section 2002 of such Act) of such a public charter school,

if doing so will not result in a significant loss of revenue that might

be obtained from other dispositions or uses of the facility or property.

(c) USE OF PROCEEDS FROM DISPOSITION FOR SCHOOL REPAIR

AND MAINTENANCE.—

(1) IN GENERAL.—The Authority shall deposit any proceeds

of the disposition of a facility or property under this section in

the Board of Education Real Property Maintenance and Improvement Fund (as established by the Real Property Disposal

Act of 1990), to be used for the construction, maintenance, improvement, rehabilitation, or repair of buildings and grounds

which are used for educational purposes for public and public

charter school students in the District of Columbia.

(2) CONSULTATION.—In disposing of a facility or property

under this section, the Authority shall consult with the Superintendent of Schools of the District of Columbia, the Mayor, the

Council, the Administrator of General Services, and education

and community leaders involved in planning for an agency or

authority that will design and administer a comprehensive
Sec. 301 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 150

long-term program for repair and improvement of District of

Columbia public school facilities (as described in section

2552(a) of the District of Columbia School Reform Act of 1995).

(3) LEGAL EFFECT OF SALE.—The Authority may dispose of

a facility or property under this section by executing a proper

deed and any other legal instrument for conveyance of title to

the facility or property, and such deed shall convey good and

valid title to the purchaser of the facility or property.

(d) FACILITY OR PROPERTY DESCRIBED.—A facility or property

described in this subsection is a facility or property which is described in section 2209(b)(1)(B) of the District of Columbia School

Reform Act of 1995 and with respect to which the Authority has

made the following determinations:

(1) The property is no longer needed for purposes of operating a District of Columbia public school (as defined in section

2002 of the District of Columbia School Reform Act of 1995).

(2) The disposition of the property is in the best interests

of education in the District of Columbia.

(3) The Mayor (or any other department or agency of the

District government) has failed to make substantial progress

toward disposing the property during the 90-day period which

begins on the date the Board of Education transfers jurisdiction over the property to the Mayor (or, in the case of property

which is described in section 2209(b)(1)(B) of such Act as of the

date of the enactment of this section, during the 90-day period

which begins on the date of the enactment of this section).

TITLE III—MISCELLANEOUS

PROVISIONS

SEC. 301. OTHER DISTRICT BUDGET REFORMS.

(a) INCLUSION OF ALL FUNDS OF DISTRICT IN BUDGET OF DISTRICT GOVERNMENT.—

(1) IN GENERAL.—Section 103 of the District of Columbia

Self-Government and Governmental Reorganization Act (sec.

1–202, D.C. Code) is amended—

(A) by amending paragraph (10) to read as follows:

‘‘(10) The term ‘District revenues’ means all funds derived

from taxes, fees, charges, miscellaneous receipts, the annual

Federal payment to the District authorized under title V,

grants and other forms of financial assistance, or the sale of

bonds, notes, or other obligations, and any funds administered

by the District government under cost sharing arrangements.’’;

(B) by amending paragraph (14) to read as follows:

‘‘(14) The term ‘resources’ means revenues, balances, enterprise or other revolving funds, and funds realized from borrowing.’’; and

(C) by amending paragraph (15) to read as follows:

‘‘(15) The term ‘budget’ means the entire request for appropriations or loan or spending authority for all activities of all

departments or agencies of the District of Columbia financed

from all existing, proposed or anticipated resources, and shall

include both operating and capital expenditures.’’.
151 Sec. 302 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

(2) EFFECTIVE DATE.—The amendments made by paragraph (1) shall apply with respect to revenues, resources, and

budgets of the District of Columbia for fiscal years beginning

with fiscal year 1996.

(b) RESTRICTIONS ON REPROGRAMMING OF FUNDS.—

(1) IN GENERAL.—Section 446 of such Act (sec. 47–304,

D.C. Code) is amended by adding at the end the following:

‘‘After the adoption of the annual budget for a fiscal year (beginning with the annual budget for fiscal year 1995), no reprogramming of amounts in the budget may occur unless the

Mayor submits to the Council a request for such reprogramming and the Council approves the request, but only if any additional expenditures provided under such request for an activity are offset by reductions in expenditures for another activity.’’.

(2) CONFORMING AMENDMENT.—Section 5 of D.C. Law 3–

100 (sec. 47–364, D.C. Code) is hereby repealed.

(c) PERMITTING COUNCIL TO REQUEST BUDGET ADJUSTMENTS

FROM MAYOR.—Section 442 of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 47–301, D.C.

Code) is amended by adding at the end the following new subsection:

‘‘(d) The Mayor shall prepare and submit to the Council a proposed supplemental or deficiency budget recommendation under

subsection (c) if the Council by resolution requests the Mayor to

submit such a recommendation.’’.

(d) REQUIRING BUDGETARY IMPACT STATEMENTS TO ACCOMPANY ACTS OF COUNCIL.—

(1) IN GENERAL.—Section 602(c) of the District of Columbia

Self-Government and Governmental Reorganization Act (sec.

1–233(c), D.C. Code) is amended by adding at the end the following new paragraph:

‘‘(3) The Council shall submit with each Act transmitted under

this subsection an estimate of the costs which will be incurred by

the District of Columbia as a result of the enactment of the Act in

each of the first 4 fiscal years for which the Act is in effect, together with a statement of the basis for such estimate.’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall apply to Acts of the Council transmitted on or after

October 1, 1995.

(e) EXTENSION OF AUTHORIZATION OF ANNUAL FEDERAL PAY- MENT.—Section 503(c) of the District of Columbia Self-Government

and Governmental Reorganization Act (sec. 47–3406.1(c), D.C.

Code), as added by section 2 of the Federal Payment Reauthorization Act of 1994, is amended by striking ‘‘fiscal year 1996’’ and inserting ‘‘each of the fiscal years 1996, 1997, 1998, and 1999’’.

SEC. 302. ESTABLISHMENT OF CHIEF FINANCIAL OFFICER OF DISTRICT OF COLUMBIA.

(a) IN GENERAL.—Part B of title IV of the District of Columbia

Self-Government and Governmental Reorganization Act is amended

by adding at the end the following new section:

‘‘CHIEF FINANCIAL OFFICER OF THE DISTRICT OF COLUMBIA

‘‘SEC. 424. (a) ESTABLISHMENT OF OFFICE.—
Sec. 302 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 152

‘‘(1) IN GENERAL.—There is hereby established within the

executive branch of the government of the District of Columbia

an Office of the Chief Financial Officer of the District of Columbia (hereafter referred to as the ‘Office’), which shall be

headed by the Chief Financial Officer of the District of Columbia (hereafter referred to as the ‘Chief Financial Officer’).

‘‘(2) OFFICE OF THE TREASURER.—The Office shall include

the Office of the Treasurer, which shall be headed by the

Treasurer of the District of Columbia, who shall be appointed

by the Chief Financial Officer and subject to the Chief Financial Officer’s direction and control.

‘‘(3) TRANSFER OF OTHER OFFICES.—Effective with the appointment of the first Chief Financial Officer under subsection

(b), the functions and personnel of the following offices are

transferred to the Office:

‘‘(A) The Controller of the District of Columbia.

‘‘(B) The Office of the Budget.

‘‘(C) The Office of Financial Information Services.

‘‘(D) The Department of Finance and Revenue.

‘‘(4) SERVICE OF HEADS OF OTHER OFFICES.— ‘‘(A) OFFICE HEADS APPOINTED BY MAYOR.—With respect to the head of the Office of the Budget and the head

of the Department of Finance and Revenue—

‘‘(i) the Mayor shall appoint such individuals with

the advice and consent of the Council, subject to the

approval of the Authority during a control year; and

‘‘(ii) during a control year, the Authority may remove such individuals from office for cause, after consultation with the Mayor.

‘‘(B) OFFICE HEADS APPOINTED BY CHIEF FINANCIAL OF- FICER.—With respect to the Controller of the District of

Columbia and the head of the Office of Financial Information Services—

‘‘(i) the Chief Financial Officer shall appoint such

individuals subject to the approval of the Mayor; and

‘‘(ii) the Chief Financial Officer may remove such

individuals from office for cause, after consultation

with the Mayor.

‘‘(b) APPOINTMENT.—

‘‘(1) IN GENERAL.—

‘‘(A) CONTROL YEAR.—During a control year, the Chief

Financial Officer shall be appointed by the Mayor as follows:

‘‘(i) Prior to the appointment of the Chief Financial Officer, the Authority may submit recommendations for the appointment to the Mayor.

‘‘(ii) In consultation with the Authority and the

Council, the Mayor shall nominate an individual for

appointment and notify the Council of the nomination.

‘‘(iii) After the expiration of the 7-day period

which begins on the date the Mayor notifies the Council of the nomination under clause (ii), the Mayor shall

notify the Authority of the nomination.

‘‘(iv) The nomination shall be effective subject to

approval by a majority vote of the Authority.
153 Sec. 302 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

‘‘(B) OTHER YEARS.—During a year other than a control year, the Chief Financial Officer shall be appointed by

the Mayor with the advice and consent of the Council.

Prior to appointment, the Authority may submit recommendations for the appointment.

‘‘(2) REMOVAL.— ‘‘(A) CONTROL YEAR.—During a control year, the Chief

Financial Officer may be removed for cause by the Authority or by the Mayor with the approval of the Authority.

‘‘(B) OTHER YEARS.—During a year other than a control year, the Chief Financial Officer shall serve at the

pleasure of the Mayor, except that the Chief Financial Officer may only be removed for cause.

‘‘(3) SALARY.—The Chief Financial Officer shall be paid at

an annual rate determined by the Mayor, except that such rate

may not exceed the rate of basic pay payable for level IV of the

Executive Schedule.

‘‘(c) FUNCTIONS DURING CONTROL YEAR.—During a control

year, the Chief Financial Officer shall have the following duties:

‘‘(1) Preparing the financial plan and budget for the use of

the Mayor for purposes of subtitle A of title II of the District

of Columbia Financial Responsibility and Management Assistance Act of 1995.

‘‘(2) Preparing the budgets of the District of Columbia for

the year for the use of the Mayor for purposes of part D.

‘‘(3) Assuring that all financial information presented by

the Mayor is presented in a manner, and is otherwise consistent with, the requirements of the District of Columbia Financial Responsibility and Management Assistance Act of

1995.

‘‘(4) Implementing appropriate procedures and instituting

such programs, systems, and personnel policies within the Officer’s authority, to ensure that budget, accounting and personnel control systems and structures are synchronized for

budgeting and control purposes on a continuing basis.

‘‘(5) With the approval of the Authority, preparing and

submitting to the Mayor and the Council—

‘‘(A) annual estimates of all revenues of the District of

Columbia (without regard to the source of such revenues),

including proposed revenues, which shall be binding on the

Mayor and the Council for purposes of preparing and submitting the budget of the District government for the year

under part D, except that the Mayor and the Council may

prepare the budget based on estimates of revenues which

are lower than those prepared by the Chief Financial Officer; and

‘‘(B) quarterly re-estimates of the revenues of the District of Columbia during the year.

‘‘(6) Supervising and assuming responsibility for financial

transactions to ensure adequate control of revenues and resources, and to ensure that appropriations are not exceeded.

‘‘(7) Maintaining systems of accounting and internal control designed to provide—

‘‘(A) full disclosure of the financial impact of the activities of the District government;
Sec. 302 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 154

‘‘(B) adequate financial information needed by the District government for management purposes;

‘‘(C) effective control over, and accountability for, all

funds, property, and other assets of the District of Columbia; and

‘‘(D) reliable accounting results to serve as the basis

for preparing and supporting agency budget requests and

controlling the execution of the budget.

‘‘(8) Submitting to the Council a financial statement of the

District government, containing such details and at such times

as the Council may specify.

‘‘(9) Supervising and assuming responsibility for the assessment of all property subject to assessment and special assessments within the corporate limits of the District of Columbia for taxation, preparing tax maps, and providing such notice

of taxes and special assessments (as may be required by law).

‘‘(10) Supervising and assuming responsibility for the levying and collection of all taxes, special assessments, licensing

fees, and other revenues of the District of Columbia (as may

be required by law), and receiving all amounts paid to the District of Columbia from any source (including the Authority).

‘‘(11) Maintaining custody of all public funds belonging to

or under the control of the District government (or any department or agency of the District government), and depositing all

amounts paid in such depositories and under such terms and

conditions as may be designated by the Council or the Authority.

‘‘(12) Maintaining custody of all investment and invested

funds of the District government or in possession of the District government in a fiduciary capacity, and maintaining the

safekeeping of all bonds and notes of the District government

and the receipt and delivery of District government bonds and

notes for transfer, registration, or exchange.

‘‘(13) Apportioning the total of all appropriations and funds

made available during the year for obligation so as to prevent

obligation or expenditure in a manner which would result in

a deficiency or a need for supplemental appropriations during

the year, and (with respect to appropriations and funds available for an indefinite period and all authorizations to create

obligations by contract in advance of appropriations) apportioning the total of such appropriations, funds, or authorizations in the most effective and economical manner.

‘‘(14) Certifying all contracts (whether directly or through

delegation) prior to execution as to the availability of funds to

meet the obligations expected to be incurred by the District

government under such contracts during the year.

‘‘(15) Prescribing the forms of receipts, vouchers, bills, and

claims to be used by all agencies, offices, and instrumentalities

of the District government.

‘‘(16) Certifying and approving prior to payment all bills,

invoices, payrolls, and other evidences of claims, demands, or

charges against the District government, and determining the

regularity, legality, and correctness of such bills, invoices, payrolls, claims, demands, or charges.
155 Sec. 302 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

‘‘(17) In coordination with the Inspector General of the District of Columbia, performing internal audits of accounts and

operations and records of the District government, including

the examination of any accounts or records of financial transactions, giving due consideration to the effectiveness of accounting systems, internal control, and related administrative

practices of the departments and agencies of the District government.

‘‘(d) FUNCTIONS DURING ALL YEARS.—At all times, the Chief

Financial Officer shall have the following duties:

‘‘(1) Exercising responsibility for the administration and

supervision of the District of Columbia Treasurer (except that

the Chief Financial Officer may delegate any portion of such

responsibility as the Chief Financial Officer considers appropriate and consistent with efficiency).

‘‘(2) Administering all borrowing programs of the District

government for the issuance of long-term and short-term indebtedness.

‘‘(3) Administering the cash management program of the

District government, including the investment of surplus funds

in governmental and non-governmental interest-bearing securities and accounts.

‘‘(4) Administering the centralized District government

payroll and retirement systems.

‘‘(5) Governing the accounting policies and systems applicable to the District government.

‘‘(6) Preparing appropriate annual, quarterly, and monthly

financial reports of the accounting and financial operations of

the District government.

‘‘(7) Not later than 120 days after the end of each fiscal

year (beginning with fiscal year 1995), preparing the complete

financial statement and report on the activities of the District

government for such fiscal year, for the use of the Mayor under

section 448(a)(4) of the District of Columbia Self-Government

and Governmental Reorganization Act.

‘‘(e) FUNCTIONS OF TREASURER.—At all times, the Treasurer

shall have the following duties:

‘‘(1) Assisting the Chief Financial Officer in reporting revenues received by the District government, including submitting

annual and quarterly reports concerning the cash position of

the District government not later than 60 days after the last

day of the quarter (or year) involved. Such reports shall include:

‘‘(A) Comparative reports of revenue and other receipts

by source, including tax, nontax, and Federal revenues,

grants and reimbursements, capital program loans, and

advances. Each source shall be broken down into specific

components.

‘‘(B) Statements of the cash flow of the District government for the preceding quarter or year, including receipts,

disbursements, net changes in cash inclusive of the beginning balance, cash and investment, and the ending balance, inclusive of cash and investment. Such statements

shall reflect the actual, planned, better or worse dollar
Sec. 302 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 156

amounts and the percentage change with respect to the

current quarter, year-to-date, and fiscal year.

‘‘(C) Quarterly cash flow forecast for the quarter or

year involved, reflecting receipts, disbursements, net

change in cash inclusive of the beginning balance, cash

and investment, and the ending balance, inclusive of cash

and investment with respect to the actual dollar amounts

for the quarter or year, and projected dollar amounts for

each of the 3 succeeding quarters.

‘‘(D) Monthly reports reflecting a detailed summary

analysis of all District of Columbia government investments, including, but not limited to—

‘‘(i) the total of long-term and short-term investments;

‘‘(ii) a detailed summary analysis of investments

by type and amount, including purchases, sales (maturities), and interest;

‘‘(iii) an analysis of investment portfolio mix by

type and amount, including liquidity, quality/risk of

each security, and similar information;

‘‘(iv) an analysis of investment strategy, including

near-term strategic plans and projects of investment

activity, as well as forecasts of future investment

strategies based on anticipated market conditions, and

similar information;

‘‘(v) an analysis of cash utilization, including—

‘‘(I) comparisons of budgeted percentages of

total cash to be invested with actual percentages

of cash invested and the dollar amounts;

‘‘(II) comparisons of the next return on invested cash expressed in percentages (yield) with

comparable market indicators and established

District of Columbia government yield objectives;

and

‘‘(III) comparisons of estimated dollar return

against actual dollar yield.

‘‘(E) Monthly reports reflecting a detailed summary

analysis of long-term and short-term borrowings inclusive

of debt as authorized by section 603, in the current fiscal

year and the amount of debt for each succeeding fiscal

year not to exceed 5 years. All such reports shall reflect—

‘‘(i) the amount of debt outstanding by type of instrument;

‘‘(ii) the amount of authorized and unissued debt,

including availability of short-term lines of credit,

United States Treasury borrowings, and similar information;

‘‘(iii) a maturity schedule of the debt;

‘‘(iv) the rate of interest payable upon the debt;

and

‘‘(v) the amount of debt service requirements and

related debt service reserves.

‘‘(2) Such other functions assigned to the Chief Financial

Officer under subsection (c) or subsection (d) as the Chief Financial Officer may delegate.
157 Sec. 303 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

‘‘(f) DEFINITIONS.—In this section—

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

Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia

Financial Responsibility and Management Assistance Act of

1995;

‘‘(2) the term ‘control year’ has the meaning given such

term under section 305(4) of such Act; and

‘‘(3) the term ‘District government’ has the meaning given

such term under section 305(5) of such Act.’’.

(b) PROHIBITING DELEGATION OF CHIEF FINANCIAL OFFICER’S

AUTHORITY.—Section 422(6) of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 1–242(6), D.C.

Code) is amended by adding at the end the following: ‘‘Nothing in

the previous sentence may be construed to permit the Mayor to delegate any functions assigned to the Chief Financial Officer of the

District of Columbia under section 424, without regard to whether

such functions are assigned to the Chief Financial Officer under

such section during a control year (as defined in section 305(4) of

the District of Columbia Financial Responsibility and Management

Assistance Act of 1995) or during any other year.’’.

(c) CONFORMING AMENDMENT.—Effective upon the appointment

of the Chief Financial Officer of the District of Columbia under section 424(b) of the District of Columbia Self-Government and Governmental Reorganization Act (as added by subsection (a)), D.C.

Law 3–138 (sec. 47–314 et seq., D.C. Code) is repealed.

(d) CLERICAL AMENDMENT.—The table of contents of part B of

title IV of the District of Columbia Self-Government and Governmental Reorganization Act is amended by adding at the end the

following new item:

‘‘Sec. 424. Chief Financial Officer of the District of Columbia.’’.

SEC. 303. REVISIONS TO POWERS AND DUTIES OF INSPECTOR GENERAL OF DISTRICT OF COLUMBIA.

(a) APPOINTMENT AND TERM OF SERVICE; INDEPENDENCE OF

BUDGET.—Section 208(a) of the District of Columbia Procurement

Practices Act of 1985 (sec. 1–1182.8(a), D.C. Code) is amended by

striking paragraphs (1) and (2) and inserting the following:

‘‘(1)(A) There is created within the executive branch of the government of the District of Columbia the Office of the Inspector

General. The Office shall be headed by an Inspector General appointed pursuant to subparagraph (B), who shall serve for a term

of 6 years and shall be subject to removal only for cause by the

Mayor (with the approval of the District of Columbia Financial Responsibility and Management Assistance Authority in a control

year) or (in the case of a control year) by the Authority. The Inspector General may be reappointed for additional terms.

‘‘(B) During a control year, the Inspector General shall be appointed by the Mayor as follows:

‘‘(i) Prior to the appointment of the Inspector General, the

Authority may submit recommendations for the appointment to

the Mayor.

‘‘(ii) In consultation with the Authority and the Council,

the Mayor shall nominate an individual for appointment and

notify the Council of the nomination.
Sec. 303 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 158

‘‘(iii) After the expiration of the 7-day period which begins

on the date the Mayor notifies the Council of the nomination

under clause (ii), the Mayor shall notify the Authority of the

nomination.

‘‘(iv) The nomination shall be effective subject to approval

by a majority vote of the Authority.

‘‘(C) During a year which is not a control year, the Inspector

General shall be appointed by the Mayor with the advice and consent of the Council. Prior to appointment, the Authority may submit recommendations for the appointment.

‘‘(D) The Inspector General shall be appointed without regard

to party affiliation and solely on the basis of integrity and demonstrated ability in accounting, auditing, financial management

analysis, public administration, or investigations.

‘‘(E) The Inspector General shall be paid at an annual rate determined by the Mayor, except that such rate may not exceed the

rate of basic pay payable for level IV of the Executive Schedule.

‘‘(2) The annual budget for the Office shall be adopted as follows:

‘‘(A) The Inspector General shall prepare and submit to the

Mayor, for inclusion in the annual budget of the District of Columbia under part D of title IV of the District of Columbia

Self-Government and Governmental Reorganization Act for the

year, annual estimates of the expenditures and appropriations

necessary for the operation of the Office for the year. All such

estimates shall be forwarded by the Mayor to the Council of

the District of Columbia for its action pursuant to sections 446

and 603(c) of such Act, without revision but subject to recommendations. Notwithstanding any other provision of such

Act, the Council may comment or make recommendations concerning such estimates, but shall have no authority to revise

such estimates.

‘‘(B) Upon receipt of the annual Federal payment for the

District of Columbia authorized under title V of the District of

Columbia Self-Government and Governmental Reorganization

Act, the Mayor shall deposit a portion of the payment (equal

to the estimate of necessary appropriations described in subparagraph (A)) into a dedicated fund within the government of

the District of Columbia.

‘‘(C) Amounts deposited in the dedicated fund described in

subparagraph (B) shall be available solely for the operation of

the Office, and shall be paid to the Inspector General by the

Mayor (acting through the Chief Financial Officer of the District of Columbia) in such installments and at such times as

the Inspector General requires.’’.

(b) ADDITIONAL POWERS AND DUTIES.—

(1) IN GENERAL.—Section 208(a)(3) of the District of Columbia Procurement Practices Act of 1985 (sec. 1–1182.8(a)(3),

D.C. Code) is amended—

(A) by striking ‘‘and’’ at the end of subparagraph (E);

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

(F) and inserting a semicolon; and

(C) by adding at the end the following new subparagraphs:
159 Sec. 303 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

‘‘(G) Pursuant to a contract described in paragraph (4),

provide certifications under section 602(b)(5) of title VI of the

District of Columbia Revenue Act of 1939;

‘‘(H) Pursuant to a contract described in paragraph (4),

audit the complete financial statement and report on the activities of the District government for such fiscal year, for the

use of the Mayor under section 448(a)(4) of the District of Columbia Self-Government and Governmental Reorganization

Act; and

‘‘(I) Not later than 30 days before the beginning of each fiscal year (beginning with fiscal year 1996) and in consultation

with the Mayor, the Council, and the Authority, establish an

annual plan for audits to be conducted under this paragraph

during the fiscal year under which the Inspector General shall

report only those variances which are in an amount equal to

or greater than $1,000,000 or 1 percent of the applicable annual budget for the program in which the variance is found

(whichever is lesser).’’.

(2) LIMITATION ON CONTRACT WITH OUTSIDE AUDITOR.—Section 208(a) of such Act (sec. 1–1182.8(a), D.C. Code) is amended by adding at the end the following new paragraph:

‘‘(4) The Inspector General shall enter into a contract with an

auditor who is not an officer or employee of the Office to—

‘‘(A) audit the financial statement and report described in

paragraph (3)(H) for a fiscal year, except that the financial

statement and report may not be audited by the same auditor

(or an auditor employed by or affiliated with the same auditor)

for more than 3 consecutive fiscal years; and

‘‘(B) audit the certification described in paragraph (3)(G).’’.

(3) SUBPOENA POWER.—Section 208(c) of such Act (sec. 1–

1182.8(c), D.C. Code) is amended—

(A) by striking ‘‘(c)’’ and inserting ‘‘(c)(1)’’; and

(B) by adding at the end the following new paragraph:

‘‘(2)(A) The Inspector General may issue subpoenas requiring

the attendance and testimony of witnesses and the production of

any evidence relating to any matter under investigation by the Inspector General.

‘‘(B) If a person refuses to obey a subpoena issued under subparagraph (A), the Inspector General may apply to the Superior

Court of the District of Columbia for an order requiring that person

to appear before the Inspector General to give testimony, produce

evidence, or both, relating to the matter under investigation. Any

failure to obey the order of the court may be punished by the Superior Court as civil contempt.’’.

(4) REFERRAL OF FINDINGS OF CRIMINAL ACTIVITY TO ATTORNEY GENERAL.—Section 208 of such Act (sec. 1–1182.8, D.C.

Code) is amended by adding at the end the following new subsection:

‘‘(f) In carrying out the duties and responsibilities established

under this section, the Inspector General shall report expeditiously

to the Attorney General whenever the Inspector General has reasonable grounds to believe there has been a violation of Federal or

District criminal law.’’.

(c) REVISION OF CURRENT POWERS AND DUTIES.—
Sec. 303 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 160

(1) LIAISON REPRESENTATIVE FOR ALL EXTERNAL AUDITS OF

DISTRICT GOVERNMENT.—Section 208(a)(3)(B) of such Act (sec.

1–1182.8(a)(3)(B), D.C. Code) is amended by striking ‘‘executive

branch’’.

(2) APPLICATION OF GENERALLY ACCEPTED ACCOUNTING

PRINCIPLES.—Section 208(b) of such Act (sec. 1–1182.8(b), D.C.

Code) is amended by inserting ‘‘accounting and’’ after ‘‘accepted’’.

(3) ACCESS TO ALL NECESSARY RECORDS.—Section 208(c)(1)

of such Act (sec. 1–1182.8(c), D.C. Code), as amended by subsection (b)(3), is amended by striking ‘‘relating to contracts and

procurement’’.

(4) SUBMISSION OF REPORTS TO AUTHORITY DURING CON- TROL YEAR.—Section 208(d) of such Act (sec. 1–1182.8(d), D.C.

Code) is amended—

(A) in paragraph (1), by striking ‘‘the Mayor and the

Council’’ and inserting ‘‘the Authority (or, with respect to

a fiscal year which is not a control year, the Mayor and

the Council)’’; and

(B) in paragraph (2), by striking ‘‘the Mayor’’ and inserting ‘‘the Authority, the Mayor,’’.

(5) MAKING REPORTS PUBLICLY AVAILABLE.—Section 208(d)

of such Act (sec. 1–1182.8(d), D.C. Code) is amended by adding

at the end the following new paragraph:

‘‘(4) The Inspector General shall make each report submitted

under this subsection available to the public, except to the extent

that the report contains information determined by the Inspector

General to be privileged.’’.

(6) RESPONDING TO REQUESTS OF AUTHORITY.—Section

208(e) of such Act (sec. 1–1182.8(e), D.C. Code) is amended by

striking ‘‘the Director’’ and inserting ‘‘the Authority’’.

(d) DEFINITIONS.—Section 208 of such Act (sec. 1–1182.8, D.C.

Code), as amended by subsection (b)(4), is amended by adding at

the end the following new subsection:

‘‘(g) In this section—

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

Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia

Financial Responsibility and Management Assistance Act of

1995;

‘‘(2) the term ‘control year’ has the meaning given such

term under section 305(4) of such Act; and

‘‘(3) the term ‘District government’ has the meaning given

such term under section 305(5) of such Act.’’.

(e) DEADLINE FOR APPOINTMENT.—

(1) IN GENERAL.—Not later than 30 days after its members

are appointed, the Mayor shall appoint the Inspector General

of the District of Columbia pursuant to section 208(a)(1) of the

District of Columbia Procurement Practices Act of 1985 (as

amended by subsection (a)).

(2) TRANSITION RULE.—The term of service of the individual serving as the Inspector General under section 208(a) of

the District of Columbia Procurement Practices Act of 1985

prior to the appointment of the Inspector General by the Authority under section 208(a)(1) of such Act (as amended by sub-
161 Sec. 305 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT

section (a)) shall expire upon the appointment of the Inspector

General by the Authority.

SEC. 304. COUNCIL APPROVAL OF CERTAIN CONTRACTS.

(a) IN GENERAL.—Section 451 of the District of Columbia SelfGovernment and Governmental Reorganization Act (sec. 1–1130,

D.C. Code) is amended—

(1) by amending the heading to read as follows: ‘‘SPECIAL

RULES REGARDING CERTAIN CONTRACTS’’;

(2) by striking ‘‘No contract’’ and inserting ‘‘(a) CONTRACTS

EXTENDING BEYOND ONE YEAR.—No contract’’; and

(3) by adding at the end the following new subsection:

‘‘(b) CONTRACTS EXCEEDING CERTAIN AMOUNT.—

‘‘(1) IN GENERAL.—No contract involving expenditures in

excess of $1,000,000 during a 12-month period may be made

unless the Mayor submits the contract to the Council for its

approval and the Council approves the contract (in accordance

with criteria established by act of the Council).

‘‘(2) DEEMED APPROVAL.—For purposes of paragraph (1),

the Council shall be deemed to approve a contract if—

‘‘(A) during the 10-day period beginning on the date

the Mayor submits the contract to the Council, no member

of the Council introduces a resolution approving or disapproving the contract; or

‘‘(B) during the 45-calendar day period beginning on

the date the Mayor submits the contract to the Council,

the Council does not disapprove the contract.’’.

(b) CLERICAL AMENDMENT.—The table of contents of the District of Columbia Self-Government and Governmental Reorganization Act is amended by amending the item relating to section 451

to read as follows:

‘‘Sec. 451. Special rules regarding certain contracts.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to contracts made on or after the date of the enactment

of this Act.

SEC. 305. DEFINITIONS.

In this Act, the following definitions apply:

(1) The term ‘‘Authority’’ means the District of Columbia

Financial Responsibility and Management Assistance Authority established under section 101(a).

(2) The term ‘‘Council’’ means the Council of the District

of Columbia.

(3) The term ‘‘control period’’ has the meaning given such

term in section 209.

(4) The term ‘‘control year’’ means any fiscal year for which

a financial plan and budget approved by the Authority under

section 202(b) is in effect, and includes fiscal year 1996.

(5) The term ‘‘District government’’ means the government

of the District of Columbia, including any department, agency

or instrumentality of the government of the District of Columbia; any independent agency of the District of Columbia established under part F of title IV of the District of Columbia SelfGovernment and Governmental Reorganization Act or any

other agency, board, or commission established by the Mayor
Sec. 305 D.C. FINANCIAL RESPONSIBILITY & MANAGEMENT ASSISTANCE ACT 162

or the Council; the Council of the District of Columbia; and any

other agency, public authority, or public benefit corporation

which has the authority to receive monies directly or indirectly

from the District of Columbia (other than monies received from

the sale of goods, the provision of services, or the loaning of

funds to the District of Columbia), except that such term does

not include the Authority.

(6) The term ‘‘financial plan and budget’’ means a financial

plan and budget described in subtitle A of title II, and includes

the budgets of the District government for the fiscal years

which are subject to the financial plan and budget (as described in section 201(b)).

(7) The term ‘‘Mayor’’ means the Mayor of the District of

Columbia.
163

DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

165

DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

Title II of the Act making appropriations for the government of the District

of Columbia and other activities chargeable in whole or in part against

the revenues of said District for the fiscal year ending September 30,

1996, and for other purposes (104–134; 110 Stat. 1321–107)

TITLE II—DISTRICT OF COLUMBIA SCHOOL

REFORM

SEC. 2001. SHORT TITLE.

This title may be cited as the ‘‘District of Columbia School Reform Act of 1995’’.

SEC. 2002. DEFINITIONS.

Except as otherwise provided, for purposes of this title:

(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term

‘‘appropriate congressional committees’’ means—

(A) the Committee on Appropriations of the House of

Representatives and the Committee on Appropriations of

the Senate;

(B) the Committee on Economic and Educational Opportunities of the House of Representatives and the Committee on Labor and Human Resources of the Senate; and

(C) the Committee on Government Reform and Oversight of the House of Representatives and the Committee

on Governmental Affairs of the Senate.

(2) AUTHORITY.—The term ‘‘Authority’’ means the District

of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a) of the District

of Columbia Financial Responsibility and Management Assistance Act of 1995 (Public Law 104–8).

(3) AVERAGE DAILY ATTENDANCE.—The term ‘‘average daily

attendance’’ means the aggregate attendance of students of the

school during the period divided by the number of days during

the period in which—

(A) the school is in session; and

(B) the students of the school are under the guidance

and direction of teachers.

(4) AVERAGE DAILY MEMBERSHIP.—The term ‘‘average daily

membership’’ means the aggregate enrollment of students of

the school during the period divided by the number of days

during the period in which—

(A) the school is in session; and

(B) the students of the school are under the guidance

and direction of teachers.

(5) BOARD OF EDUCATION.—The term ‘‘Board of Education’’

means the Board of Education of the District of Columbia.
Sec. 2002 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 166

(6) BOARD OF TRUSTEES.—The term ‘‘Board of Trustees’’

means the governing board of a public charter school, the

members of which are selected pursuant to the charter granted

to the school and in a manner consistent with this title.

(7) CONSENSUS COMMISSION.—The term ‘‘Consensus Commission’’ means the Commission on Consensus Reform in the

District of Columbia public schools established under subtitle

H.

(8) CORE CURRICULUM.—The term ‘‘core curriculum’’ means

the concepts, factual knowledge, and skills that students in the

District of Columbia should learn in kindergarten through

grade 12 in academic content areas, including, at a minimum,

English, mathematics, science, and history.

(9) DISTRICT OF COLUMBIA COUNCIL.—The term ‘‘District of

Columbia Council’’ means the Council of the District of Columbia established pursuant to section 401 of the District of Columbia Self-Government and Governmental Reorganization Act

(D.C. Code, sec. 1–221).

(10) DISTRICT OF COLUMBIA GOVERNMENT.— (A) IN GENERAL.—The term ‘‘District of Columbia Government’’ means the government of the District of Columbia, including—

(i) any department, agency, or instrumentality of

the government of the District of Columbia;

(ii) any independent agency of the District of Columbia established under part F of title IV of the District of Columbia Self-Government and Governmental

Reorganization Act;

(iii) any other agency, board, or commission established by the Mayor or the District of Columbia Council;

(iv) the courts of the District of Columbia;

(v) the District of Columbia Council; and

(vi) any other agency, public authority, or public

nonprofit corporation that has the authority to receive

moneys directly or indirectly from the District of Columbia (other than moneys received from the sale of

goods, the provision of services, or the loaning of funds

to the District of Columbia).

(B) EXCEPTION.—The term ‘‘District of Columbia Government’’ neither includes the Authority nor a public charter school.

(11) DISTRICT OF COLUMBIA GOVERNMENT RETIREMENT SYSTEM.—The term ‘‘District of Columbia Government retirement

system’’ means the retirement programs authorized by the District of Columbia Council or the Congress for employees of the

District of Columbia Government.

(12) DISTRICT OF COLUMBIA PUBLIC SCHOOL.—

(A) IN GENERAL.—The term ‘‘District of Columbia public school’’ means a public school in the District of Columbia that offers classes—

(i) at any of the grade levels from prekindergarten

through grade 12; or

(ii) leading to a secondary school diploma, or its

recognized equivalent.
167 Sec. 2002 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

(B) EXCEPTION.—The term ‘‘District of Columbia public school’’ does not include a public charter school.

(13) DISTRICTWIDE ASSESSMENTS.—The term ‘‘districtwide

assessments’’ means a variety of assessment tools and strategies (including individual student assessments under subparagraph (E)(ii)) administered by the Superintendent to students

enrolled in District of Columbia public schools and public charter schools that—

(A) are aligned with the District of Columbia’s content

standards and core curriculum;

(B) provide coherent information about student attainment of such standards;

(C) are used for purposes for which such assessments

are valid, reliable, and unbiased, and are consistent with

relevant nationally recognized professional and technical

standards for such assessments;

(D) involve multiple up-to-date measures of student

performance, including measures that assess higher order

thinking skills and understanding; and

(E) provide for—

(i) the participation in such assessments of all students;

(ii) individual student assessments for students

that fail to reach minimum acceptable levels of performance;

(iii) the reasonable adaptations and accommodations for students with special needs (as defined in

paragraph (32)) necessary to measure the achievement

of such students relative to the District of Columbia’s

content standards; and

(iv) the inclusion of limited-English proficient students, who shall be assessed, to the extent practicable,

in the language and form most likely to yield accurate

and reliable information regarding such students’

knowledge and abilities.

(14) ELECTRONIC DATA TRANSFER SYSTEM.—The term ‘‘electronic data transfer system’’ means a computer-based process

for the maintenance and transfer of student records designed

to permit the transfer of individual student records among District of Columbia public schools and public charter schools.

(15) ELEMENTARY SCHOOL.—The term ‘‘elementary school’’

means an institutional day or residential school that provides

elementary education, as determined under District of Columbia law.

(16) ELIGIBLE APPLICANT.—The term ‘‘eligible applicant’’

means a person, including a private, public, or quasi-public entity, or an institution of higher education (as defined in section

1201(a) of the Higher Education Act of 1965 (20 U.S.C.

1141(a))), that seeks to establish a public charter school in the

District of Columbia.

(17) ELIGIBLE CHARTERING AUTHORITY.—The term ‘‘eligible

chartering authority’’ means any of the following:

(A) The Board of Education.

(B) The Public Charter School Board.
Sec. 2002 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 168

(C) Any one entity designated as an eligible chartering

authority by enactment of a bill by the District of Columbia Council after the date of the enactment of this Act.

(18) FAMILY RESOURCE CENTER.—The term ‘‘family resource center’’ means an information desk—

(A) located in a District of Columbia public school or

a public charter school serving a majority of students

whose family income is not greater than 185 percent of the

income official poverty line (as defined by the Office of

Management and Budget, and revised annually in accordance with section 673(2) of the Community Services Block

Grant Act applicable to a family of the size involved (42

U.S.C. 9902(3))); and

(B) which links students and families to local resources and public and private entities involved in child

care, adult education, health and social services, tutoring,

mentoring, and job training.

(19) INDIVIDUAL CAREER PATH.—The term ‘‘individual career path’’ means a program of study that provides a secondary

school student the skills necessary to compete in the 21st century workforce.

(20) LITERACY.—The term ‘‘literacy’’ means—

(A) in the case of a minor student, such student’s ability to read, write, and speak in English, and compute and

solve problems at levels of proficiency necessary to function in society, to achieve such student’s goals, and develop

such student’s knowledge and potential; and

(B) in the case of an adult, such adult’s ability to read,

write, and speak in English, and compute and solve problems at levels of proficiency necessary to function on the

job and in society, to achieve such adult’s goals, and develop such adult’s knowledge and potential.

(21) LONG-TERM REFORM PLAN.—The term ‘‘long-term reform plan’’ means the plan submitted by the Superintendent

under section 2101.

(22) MAYOR.—The term ‘‘Mayor’’ means the Mayor of the

District of Columbia.

(23) METROBUS AND METRORAIL TRANSIT SYSTEM.—The

term ‘‘Metrobus and Metrorail Transit System’’ means the bus

and rail systems administered by the Washington Metropolitan

Area Transit Authority.

(24) MINOR STUDENT.—The term ‘‘minor student’’ means

an individual who—

(A) is enrolled in a District of Columbia public school

or a public charter school; and

(B) is not beyond the age of compulsory school attendance, as prescribed in section 1 of article I, and section 1

of article II, of the Act of February 4, 1925 (sections 31–

401 and 31–402, D.C. Code).

(25) NONRESIDENT STUDENT.—The term ‘‘nonresident student’’ means—

(A) an individual under the age of 18 who is enrolled

in a District of Columbia public school or a public charter

school, and does not have a parent residing in the District

of Columbia; or
169 Sec. 2003 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

1The amendment made by section 155 of Public Law 106–113 (113 Stat. 1526) struck ‘‘and

ending 5 years after such date.’’. The amendment did not put back the final period.

(B) an individual who is age 18 or older and is enrolled in a District of Columbia public school or public

charter school, and does not reside in the District of Columbia.

(26) PARENT.—The term ‘‘parent’’ means a person who has

custody of a child, and who—

(A) is a natural parent of the child;

(B) is a stepparent of the child;

(C) has adopted the child; or

(D) is appointed as a guardian for the child by a court

of competent jurisdiction.

(27) PETITION.—The term ‘‘petition’’ means a written application.

(28) PROMOTION GATE.—The term ‘‘promotion gate’’ means

the criteria, developed by the Superintendent and approved by

the Board of Education, that are used to determine student

promotion at different grade levels. Such criteria shall include

student achievement on districtwide assessments established

under subtitle C.

(29) PUBLIC CHARTER SCHOOL.—The term ‘‘public charter

school’’ means a publicly funded school in the District of Columbia that—

(A) is established pursuant to subtitle B; and

(B) except as provided under sections 2212(d)(5) and

2213(c)(5) is not a part of the District of Columbia public

schools.

(30) PUBLIC CHARTER SCHOOL BOARD.—The term ‘‘Public

Charter School Board’’ means the Public Charter School Board

established under section 2214.

(31) SECONDARY SCHOOL.—The term ‘‘secondary school’’

means an institutional day or residential school that provides

secondary education, as determined by District of Columbia

law, except that such term does not include any education beyond grade 12.

(32) STUDENT WITH SPECIAL NEEDS.—The term ‘‘student

with special needs’’ means a student who is a child with a disability as provided in section 602(a)(1) of the Individuals with

Disabilities Education Act (20 U.S.C. 1401(a)(1)) or a student

who is an individual with a disability as provided in section

7(8) of the Rehabilitation Act of 1973 (29 U.S.C. 706(8)).

(33) SUPERINTENDENT.—The term ‘‘Superintendent’’ means

the Superintendent of the District of Columbia public schools.

(34) TEACHER.—The term ‘‘teacher’’ means any person employed as a teacher by the Board of Education or by a public

charter school.

SEC. 2003. GENERAL EFFECTIVE DATE.

Except as otherwise provided in this title, this title shall be effective beginning on the date of enactment of this Act 1
Sec. 2101 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 170

Subtitle A—District of Columbia Reform Plan

SEC. 2101. LONG-TERM REFORM PLAN.

(a) IN GENERAL.— (1) PLAN.—The Superintendent, with the approval of the

Board of Education, shall submit to the Mayor, the District of

Columbia Council, the Authority, the Consensus Commission,

and the appropriate congressional committees, a long-term reform plan, not later than 90 days after the date of enactment

of this Act, and each February 15 thereafter. The long-term reform plan shall be consistent with the financial plan and budget for the District of Columbia for fiscal year 1996, and each

financial plan and budget for a subsequent fiscal year, as the

case may be, required under section 201 of the District of Columbia Financial Responsibility and Management Assistance

Act of 1995.

(2) CONSULTATION.— (A) IN GENERAL.—In developing the long-term reform

plan, the Superintendent—

(i) shall consult with the Board of Education, the

Mayor, the District of Columbia Council, the Authority, and the Consensus Commission; and

(ii) shall afford the public, interested organizations, and groups an opportunity to present their

views and make recommendations regarding the longterm reform plan.

(B) SUMMARY OF RECOMMENDATIONS.—The Superintendent shall include in the long-term plan a summary

of the recommendations made under subparagraph (A)(ii)

and the response of the Superintendent to the recommendations.

(b) CONTENTS.— (1) AREAS TO BE ADDRESSED.—The long-term reform plan

shall describe how the District of Columbia public schools will

become a world-class education system that prepares students

for lifetime learning in the 21st century and which is on a par

with the best education systems of other cities, States, and nations. The long-term reform plan shall include a description of

how the District of Columbia public schools will accomplish the

following:

(A) Achievement at nationally and internationally

competitive levels by students attending District of Columbia public schools.

(B) The preparation of students for the workforce,

including—

(i) providing special emphasis for students planning to obtain a postsecondary education; and

(ii) the development of individual career paths.

(C) The improvement of the health and safety of students in District of Columbia public schools.

(D) Local school governance, decentralization, autonomy, and parental choice among District of Columbia public schools.

(E) The implementation of a comprehensive and effective adult education and literacy program.
171 Sec. 2101 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

(F) The identification, beginning in grade 3, of each

student who does not meet minimum standards of academic achievement in reading, writing, and mathematics

in order to ensure that such student meets such standards

prior to grade promotion.

(G) The achievement of literacy, and the possession of

the knowledge and skills necessary to think critically, communicate effectively, and perform competently on districtwide assessments, by students attending District of Columbia public schools prior to such student’s completion of

grade 8.

(H) The establishment of after-school programs that

promote self-confidence, self-discipline, self-respect, good

citizenship, and respect for leaders, through such activities

as arts classes, physical fitness programs, and community

service.

(I) Steps necessary to establish an electronic data

transfer system.

(J) Encourage parental involvement in all school activities, particularly parent teacher conferences.

(K) Development and implementation, through the

Board of Education and the Superintendent, of a uniform

dress code for the District of Columbia public schools,

that—

(i) shall include a prohibition of gang membership

symbols;

(ii) shall take into account the relative costs of any

such code for each student; and

(iii) may include a requirement that students

wear uniforms.

(L) The establishment of classes, beginning not later

than grade 3, to teach students how to use computers effectively.

(M) The development of community schools that enable District of Columbia public schools to collaborate with

other public and nonprofit agencies and organizations,

local businesses, recreational, cultural, and other community and human service entities, for the purpose of meeting the needs and expanding the opportunities available to

residents of the communities served by such schools.

(N) The establishment of programs which provide

counseling, mentoring (especially peer mentoring), academic support, outreach, and supportive services to elementary, middle, and secondary school students who are

at risk of dropping out of school.

(O) The establishment of a comprehensive remedial

education program to assist students who do not meet

basic literacy standards, or the criteria of promotion gates

established in section 2321.

(P) The establishment of leadership development projects for middle school principals, which projects shall increase student learning and achievement and strengthen

such principals as instructional school leaders.

(Q) The implementation of a policy for performancebased evaluation of principals and teachers, after consulta-
Sec. 2102 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 172

tion with the Superintendent and unions (including unions

that represent teachers and unions that represent principals).

(R) The implementation of policies that require competitive appointments for all District of Columbia public

school positions.

(S) The implementation of policies regarding alternative teacher certification requirements.

(T) The implementation of testing requirements for

teacher licensing renewal.

(U) A review of the District of Columbia public school

central office budget and staffing reductions for each fiscal

year compared to the level of such budget and reductions

at the end of fiscal year 1995.

(V) The implementation of the discipline policy for the

District of Columbia public schools in order to ensure a

safe, disciplined environment conducive to learning.

(2) OTHER INFORMATION.—For each of the items described

in subparagraphs (A) through (V) of paragraph (1), the longterm reform plan shall include—

(A) a statement of measurable, objective performance

goals;

(B) a description of the measures of performance to be

used in determining whether the Superintendent and

Board of Education have met the goals;

(C) dates by which the goals shall be met;

(D) plans for monitoring and reporting progress to District of Columbia residents, the Mayor, the District of Columbia Council, the Authority, the Consensus Commission,

and the appropriate congressional committees regarding

the carrying out of the long-term reform plan; and

(E) the title of the management employee of the District of Columbia public schools most directly responsible

for the achievement of each goal and, with respect to each

such employee, the title of the employee’s immediate supervisor or superior.

(c) AMENDMENTS.—The Superintendent, with the approval of

the Board of Education, shall submit any amendment to the longterm reform plan to the Mayor, the District of Columbia Council,

the Authority, the Consensus Commission, and the appropriate

congressional committees. Any amendment to the long-term reform

plan shall be consistent with the financial plan and budget for fiscal year 1996, and each financial plan and budget for a subsequent

fiscal year, as the case may be, for the District of Columbia required under section 201 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995.

SEC. 2102. SUPERINTENDENT’S REPORT ON REFORMS.

Not later than December 1, 1996, the Superintendent shall

submit to the appropriate congressional committees, the Board of

Education, the Mayor, the Consensus Commission, and the District

of Columbia Council a report regarding the progress of the District

of Columbia public schools toward achieving the goals of the longterm reform plan.
173 Sec. 2201 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

SEC. 2103. DISTRICT OF COLUMBIA COUNCIL REPORT.

Not later than April 1, 1997, the Chairperson of the District

of Columbia Council shall submit to the appropriate congressional

committees a report describing legislative and other actions the

District of Columbia Council has taken or will take to facilitate the

implementation of the goals of the long-term reform plan.

Subtitle B—Public Charter Schools

SEC. 2201. PROCESS FOR FILING CHARTER PETITIONS.

(a) EXISTING PUBLIC SCHOOL.—An eligible applicant seeking to

convert a District of Columbia public school into a public charter

school—

(1) shall prepare a petition to establish a public charter

school that meets the requirements of section 2202;

(2) shall provide a copy of the petition to—

(A) the parents of minor students attending the existing school;

(B) adult students attending the existing school; and

(C) employees of the existing school; and

(3) shall file the petition with an eligible chartering authority for approval after the petition—

(A) is signed by two-thirds of the sum of—

(i) the total number of parents of minor students

attending the school; and

(ii) the total number of adult students attending

the school; and

(B) is endorsed by at least two-thirds of full-time

teachers employed in the school.

(b) PRIVATE OR INDEPENDENT SCHOOL.—An eligible applicant

seeking to convert an existing private or independent school in the

District of Columbia into a public charter school—

(1) shall prepare a petition to establish a public charter

school that is approved by the Board of Trustees or authority

responsible for the school and that meets the requirements of

section 2202;

(2) shall provide a copy of the petition to—

(A) the parents of minor students attending the existing school;

(B) adult students attending the existing school; and

(C) employees of the existing school; and

(3) shall file the petition with an eligible chartering authority for approval after the petition—

(A) is signed by two-thirds of the sum of—

(i) the total number of parents of minor students

attending the school; and

(ii) the total number of adult students attending

the school; and

(B) is endorsed by at least two-thirds of full-time

teachers employed in the school.

(c) NEW SCHOOL.—An eligible applicant seeking to establish in

the District of Columbia a public charter school, but not seeking to

convert a District of Columbia public school or a private or independent school into a public charter school, shall file with an eligi-
Sec. 2202 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 174

ble chartering authority for approval a petition to establish a public

charter school that meets the requirements of section 2202.

(d) LIMITATIONS ON FILING.—

(1) MULTIPLE CHARTERING AUTHORITIES.—An eligible applicant may not file the same petition to establish a public charter school with more than 1 eligible chartering authority during a calendar year.

(2) MULTIPLE PETITIONS.—An eligible applicant may not

file more than 1 petition to establish a public charter school

during a calendar year.

SEC. 2202. CONTENTS OF PETITION.

A petition under section 2201 to establish a public charter

school shall include the following:

(1) A statement defining the mission and goals of the proposed school and the manner in which the school will conduct

any districtwide assessments.

(2) A statement of the need for the proposed school in the

geographic area of the school site.

(3) A description of the proposed instructional goals and

methods for the proposed school, which shall include, at a

minimum—

(A) the area of focus of the proposed school, such as

mathematics, science, or the arts, if the school will have

such a focus;

(B) the methods that will be used, including classroom

technology, to provide students with the knowledge, proficiency, and skills needed—

(i) to become nationally and internationally competitive students and educated individuals in the 21st

century; and

(ii) to perform competitively on any districtwide

assessments; and

(C) the methods that will be used to improve student

self-motivation, classroom instruction, and learning for all

students.

(4) A description of the scope and size of the proposed

school’s program that will enable students to successfully

achieve the goals established by the school, including the grade

levels to be served by the school and the projected and maximum enrollment of each grade level.

(5) A description of the plan for evaluating student academic achievement at the proposed school and the procedures

for remedial action that will be used by the school when the

academic achievement of a student falls below the expectations

of the school.

(6) An operating budget for the first 2 years of the proposed school that is based on anticipated enrollment and

contains—

(A) a description of the method for conducting annual

audits of the financial, administrative, and programmatic

operations of the school;

(B) either—

(i)(I) an identification of a facility for the school,

including a description of the site where the school
175 Sec. 2202 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

will be located, any buildings on the site, and any

buildings proposed to be constructed on the site, and

(II) information demonstrating that the eligible applicant has acquired title to, or otherwise secured the use

of, the facility; or

(ii) a timetable by which an identification described in clause (i)(I) will be made, and the information described in clause (i)(II) will be submitted, to the

eligible chartering authority;

(C) a description of any major contracts planned, with

a value equal to or exceeding $10,000, for equipment and

services, leases, improvements, purchases of real property,

or insurance; and

(D) a timetable for commencing operations as a public

charter school.

(7) A description of the proposed rules and policies for governance and operation of the proposed school.

(8) Copies of the proposed articles of incorporation and bylaws of the proposed school.

(9) The names and addresses of the members of the proposed Board of Trustees and the procedures for selecting

trustees.

(10) A description of the student enrollment, admission,

suspension, expulsion, and other disciplinary policies and procedures of the proposed school, and the criteria for making decisions in such areas.

(11) A description of the procedures the proposed school

plans to follow to ensure the health and safety of students, employees, and guests of the school and to comply with applicable

health and safety laws, and all applicable civil rights statutes

and regulations of the Federal Government and the District of

Columbia.

(12) An explanation of the qualifications that will be required of employees of the proposed school.

(13) An identification, and a description, of the individuals

and entities submitting the petition, including their names and

addresses, and the names of the organizations or corporations

of which such individuals are directors or officers.

(14) A description of how parents, teachers, and other

members of the community have been involved in the design

and will continue to be involved in the implementation of the

proposed school.

(15) A description of how parents and teachers will be provided an orientation and other training to ensure their effective participation in the operation of the public charter school.

(16) An assurance the proposed school will seek, obtain,

and maintain accreditation from at least one of the following:

(A) The Middle States Association of Colleges and

Schools.

(B) The Association of Independent Maryland Schools.

(C) The Southern Association of Colleges and Schools.

(D) The Virginia Association of Independent Schools.

(E) American Montessori Internationale.

(F) The American Montessori Society.
Sec. 2203 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 176

(G) The National Academy of Early Childhood Programs.

(H) Any other accrediting body deemed appropriate by

the eligible chartering authority that granted the charter

to the school.

ø(17) Repealed.¿

(18) An explanation of the relationship that will exist between the public charter school and the school’s employees.

(19) A statement of whether the proposed school elects to

be treated as a local educational agency or a District of Columbia public school for purposes of part B of the Individuals With

Disabilities Education Act (20 U.S.C. 1411 et seq.) and section

504 of the Rehabilitation Act of 1973 (20 U.S.C. 794), and notwithstanding any other provision of law the eligible chartering

authority shall not have the authority to approve or disapprove

such election.

SEC. 2203. PROCESS FOR APPROVING OR DENYING PUBLIC CHARTER

SCHOOL PETITIONS.

(a) SCHEDULE.—An eligible chartering authority shall establish

a schedule for receiving petitions to establish a public charter

school and shall publish any such schedule in the District of Columbia Register and newspapers of general circulation.

(b) PUBLIC HEARING.—Not later than 45 days after a petition

to establish a public charter school is filed with an eligible chartering authority, the eligible chartering authority shall hold a public hearing on the petition to gather the information that is necessary for the eligible chartering authority to make the decision to

approve or deny the petition.

(c) NOTICE.—Not later than 10 days prior to the scheduled date

of a public hearing on a petition to establish a public charter

school, an eligible chartering authority—

(1) shall publish a notice of the hearing in the District of

Columbia Register and newspapers of general circulation; and

(2) shall send a written notification of the hearing date to

the eligible applicant who filed the petition.

(d) APPROVAL.— (1) IN GENERAL.—Subject to subsection (i) and paragraph

(2), an eligible chartering authority shall approve a petition to

establish a public charter school, if—

(A) the eligible chartering authority determines that

the petition satisfies the requirements of this subtitle;

(B) the eligible applicant who filed the petition agrees

to satisfy any condition or requirement, consistent with

this subtitle and other applicable law, that is set forth in

writing by the eligible chartering authority as an amendment to the petition;

(C) the eligible chartering authority determines that

the public charter school has the ability to meet the educational objectives out-lined in the petition; and

(D) the approval will not cause the eligible chartering

authority to exceed a limit under subsection (i).

(2) CONDITIONAL APPROVAL.—

(A) IN GENERAL.—In the case of a petition that does

not contain the identification and information required

under section 2202(6)(B)(i), but does contain the timetable
177 Sec. 2203 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

required under section 2202(6)(B)(ii), an eligible chartering

authority may only approve the petition on a conditional

basis, subject to the eligible applicant’s submitting the

identification and information described in section

2202(6)(B)(i) in accordance with such timetable, or any

other timetable specified in writing by the eligible chartering authority in an amendment to the petition.

(B) EFFECT OF CONDITIONAL APPROVAL.—For purposes

of subsections (e), (h), (i), and (j), a petition conditionally

approved under this paragraph shall be treated the same

as a petition approved under paragraph (1), except that on

the date that such a conditionally approved petition ceases

to be conditionally approved because the eligible applicant

has not timely submitted the identification and information described in section 2202(6)(B)(i), the approval of the

petition shall cease to be counted for purposes of subsection (i).

(e) TIMETABLE.—An eligible chartering authority shall approve

or deny a petition to establish a public charter school not later than

45 days after the conclusion of the public hearing on the petition.

(f) EXTENSION.—An eligible chartering authority and an eligible applicant may agree to extend the 45-day time period referred

to in subsection (e) by a period that shall not exceed 30 days.

(g) DENIAL EXPLANATION.—If an eligible chartering authority

denies a petition or finds the petition to be incomplete, the eligible

chartering authority shall specify in writing the reasons for its decision and indicate, when the eligible chartering authority determines appropriate, how the eligible applicant who filed the petition

may revise the petition to satisfy the requirements for approval.

(h) APPROVED PETITION.—

(1) NOTICE.—Not later than 10 days after an eligible chartering authority approves a petition to establish a public charter school, the eligible chartering authority shall provide a

written notice of the approval, including a copy of the approved

petition and any conditions or requirements agreed to under

subsection (d), to the eligible applicant and to the Chief Financial Officer of the District of Columbia. The eligible chartering

authority shall publish a notice of the approval of the petition

in the District of Columbia Register and newspapers of general

circulation.

(2) CHARTER.—The provisions described in paragraphs (1),

(7), (8), (11), (16), and (18) of section 2202 of a petition to establish a public charter school that are approved by an eligible

chartering authority, together with any amendments to such

provisions in the petition containing conditions or requirements agreed to by the eligible applicant under subsection (d),

shall be considered a charter granted to the school by the eligible chartering authority.

(i) NUMBER OF PETITIONS.—

(1) FIRST YEAR.—During calendar year 1996, not more

than 10 petitions to establish public charter schools may be approved under this subtitle.

(2) SUBSEQUENT YEARS.—
Sec. 2204 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 178

2The margins so in law. Probably should be moved two ems to the right.

(A) 2 IN GENERAL.—

(i) ANNUAL LIMIT.—Subject to subparagraph (B) and

clause (ii), during calendar year 1997, and during each

subsequent calendar year, each eligible chartering authority shall not approve more than 10 petitions to establish

a public charter school under this subtitle.

(ii) TIMETABLE.—Any petition approved under clause

(i) shall be approved during an application approval period

that terminates on April 1 of each year. Such an approval

period may commence before or after January 1 of the calendar year in which it terminates, except that any petition

approved at any time during such an approval period shall

count, for purposes of clause (i), against the total number

of petitions approved during the calendar year in which

the approval period terminates.

(B) EXCEPTION.—If, by April 1 of any calendar year

after 1996, an eligible chartering authority has approved

fewer than 10 petitions during such calendar year, any

other eligible chartering authority may approve more than

10 petitions during such calendar year, but only if—

(i) the eligible chartering authority completes the

approval of any such additional petition before June 1

of the year; and

(ii) the approval of any such additional petition

will not cause the total number of petitions approved

by all eligible chartering authorities during the calendar year to exceed 20.

(j) AUTHORITY OF ELIGIBLE CHARTERING AUTHORITY.—

(1) IN GENERAL.—Except as provided in paragraph (2), and

except for officers or employees of the eligible chartering authority with which a petition to establish a public charter

school is filed, no governmental entity, elected official, or employee of the District of Columbia shall make, participate in

making, or intervene in the making of, the decision to approve

or deny such a petition.

(2) AVAILABILITY OF REVIEW.—A decision by an eligible

chartering authority to deny a petition to establish a public

charter school shall be subject to judicial review by an appropriate court of the District of Columbia.

SEC. 2204. DUTIES, POWERS, AND OTHER REQUIREMENTS, OF PUBLIC

CHARTER SCHOOLS.

(a) DUTIES.—A public charter school shall comply with all of

the terms and provisions of its charter.

(b) POWERS.—A public charter school shall have the following

powers:

(1) To adopt a name and corporate seal, but only if the

name selected includes the words ‘‘public charter school’’.

(2) To acquire real property for use as the public charter

school’s facilities, from public or private sources.

(3) To receive and disburse funds for public charter school

purposes.
179 Sec. 2204 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

(4) Subject to subsection (c)(1), to secure appropriate insurance and to make contracts and leases, including agreements

to procure or purchase services, equipment, and supplies.

(5) To incur debt in reasonable anticipation of the receipt

of funds from the general fund of the District of Columbia or

the receipt of Federal or private funds.

(6) To solicit and accept any grants or gifts for public charter school purposes, if the public charter school—

(A) does not accept any grants or gifts subject to any

condition contrary to law or contrary to its charter; and

(B) maintains for financial reporting purposes separate accounts for grants or gifts.

(7) To be responsible for the public charter school’s operation, including preparation of a budget and personnel matters.

(8) To sue and be sued in the public charter school’s own

name.

(c) PROHIBITIONS AND OTHER REQUIREMENTS.— (1) CONTRACTING AUTHORITY.— (A) NOTICE REQUIREMENT FOR PROCUREMENT CON- TRACTS.—

(i) IN GENERAL.—Except in the case of an emergency (as determined by the eligible chartering authority of a public charter school), with respect to any

procurement contract proposed to be awarded by the

public charter school and having a value equal to or

exceeding $25,000, the school shall publish a notice of

a request for proposals in the District of Columbia

Register and newspapers of general circulation not

less than 7 days prior to the award of the contract.

(ii) EXCEPTION FOR CERTAIN CONTRACTS.—The notice requirement of clause (i) shall not apply with respect to any contract for the lease or purchase of real

property by a public charter school, any employment

contract for a staff member of a public charter school,

or any management contract entered into by a public

charter school and the management company designated in its charter or its petition for a revised charter.

(B) SUBMISSION TO THE ELIGIBLE CHARTERING AUTHORITY.—

(i) DEADLINE FOR SUBMISSION.—With respect to

any contract described in subparagraph (A) that is

awarded by a public charter school, the school shall

submit to the eligible chartering authority, not later

than 3 days after the date on which the award is

made, all bids for the contract received by the school,

the name of the contractor who is awarded the contract, and the rationale for the award of the contract.

(ii) EFFECTIVE DATE OF CONTRACT.—A contract described in subparagraph (A) shall become effective on

the date that is 10 days after the date the school

makes the submission under clause (i) with respect to

the contract, or the effective date specified in the contract, whichever is later.
Sec. 2204 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 180

(2) TUITION, FEES, AND PAYMENTS.— (A) PROHIBITION.—A public charter school may not,

with respect to any student other than a nonresident student, charge tuition, impose fees, or otherwise require payment for participation in any program, educational offering, or activity that—

(i) enrolls students in any grade from kindergarten through grade 12; or

(ii) is funded in whole or part through an annual

local appropriation.

(B) EXCEPTION.—A public charter school may impose

fees or otherwise require payment, at rates established by

the Board of Trustees of the school, for any program, educational offering, or activity not described in clause (i) or

(ii) of subparagraph (A), including adult education programs, or for field trips or similar activities.

(3) CONTROL.—A public charter school—

(A) shall exercise exclusive control over its expenditures, administration, personnel, and instructional methods, within the limitations imposed in this subtitle; and

(B) shall be exempt from District of Columbia statutes,

policies, rules, and regulations established for the District

of Columbia public schools by the Superintendent, Board

of Education, Mayor, District of Columbia Council, or Authority, except as otherwise provided in the school’s charter or this subtitle.

(4) HEALTH AND SAFETY.—A public charter school shall

maintain the health and safety of all students attending such

school.

(5) CIVIL RIGHTS AND IDEA.—The Age Discrimination Act of

1975 (42 U.S.C. 6101 et seq.), title VI of the Civil Rights Act

of 1964 (42 U.S.C. 2000d et seq.), title IX of the Education

Amendments of 1972 (20 U.S.C. 1681 et seq.), section 504 of

the Rehabilitation Act of 1973 (29 U.S.C. 794), part B of the

Individuals with Disabilities Education Act (20 U.S.C. 1411 et

seq.), and the Americans with Disabilities Act of 1990 (42

U.S.C. 12101 et seq.), shall apply to a public charter school.

(6) GOVERNANCE.—A public charter school shall be governed by a Board of Trustees in a manner consistent with the

charter granted to the school and the provisions of this subtitle.

(7) OTHER STAFF.—No employee of the District of Columbia

public schools may be required to accept employment with, or

be assigned to, a public charter school.

(8) OTHER STUDENTS.—No student enrolled in a District of

Columbia public school may be required to attend a public

charter school.

(9) TAXES OR BONDS.—A public charter school shall not

levy taxes or issue bonds.

(10) CHARTER REVISION.—A public charter school seeking

to revise its charter shall prepare a petition for approval of the

revision and file the petition with the eligible chartering authority that granted the charter. The provisions of section 2203

shall apply to such a petition in the same manner as such provisions apply to a petition to establish a public charter school.
181 Sec. 2204 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

(11) ANNUAL REPORT.— (A) IN GENERAL.—A public charter school shall submit

an annual report to the eligible chartering authority that

approved its charter. The school shall permit a member of

the public to review any such report upon request.

(B) CONTENTS.—A report submitted under subparagraph (A) shall include the following data:

(i) A report on the extent to which the school is

meeting its mission and goals as stated in the petition

for the charter school.

(ii) Student performance on any districtwide assessments.

(iii) Grade advancement for students enrolled in

the public charter school.

(iv) Graduation rates, college admission test

scores, and college admission rates, if applicable.

(v) Types and amounts of parental involvement.

(vi) Official student enrollment.

(vii) Average daily attendance.

(viii) Average daily membership.

(ix) A financial statement audited by an independent certified public accountant in accordance with

Government auditing standards for financial audits

issued by the Comptroller General of the United

States.

(x) A report on school staff indicating the qualifications and responsibilities of such staff.

(xi) A list of all donors and grantors that have

contributed monetary or in-kind donations having a

value equal to or exceeding $500 during the year that

is the subject of the report.

(C) NONIDENTIFYING DATA.—Data described in clauses

(i) through (ix) of subparagraph (B) that are included in an

annual report shall not identify the individuals to whom

the data pertain.

(12) CENSUS.—A public charter school shall provide to the

Board of Education student enrollment data necessary for the

Board of Education to comply with section 3 of article II of the

Act of February 4, 1925 (D.C. Code, sec. 31–404) (relating to

census of minors).

(13) COMPLAINT RESOLUTION PROCESS.—A public charter

school shall establish an informal complaint resolution process.

(14) PROGRAM OF EDUCATION.—A public charter school

shall provide a program of education which shall include one

or more of the following:

(A) Preschool.

(B) Prekindergarten.

(C) Any grade or grades from kindergarten through

grade 12.

(D) Residential education.

(E) Adult, community, continuing, and vocational education programs.

(15) NONSECTARIAN NATURE OF SCHOOLS.—A public charter

school shall be nonsectarian and shall not be affiliated with a

sectarian school or religious institution.
Sec. 2205 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 182

(16) NONPROFIT STATUS OF SCHOOL.—A public charter

school shall be organized under the District of Columbia Nonprofit Corporation Act (D.C. Code, sec. 29–501 et seq.).

(17) IMMUNITY FROM CIVIL LIABILITY.—

(A) IN GENERAL.—A public charter school, and its

incorporators, Board of Trustees, officers, employees, and

volunteers, shall be immune from civil liability, both personally and professionally, for any act or omission within

the scope of their official duties unless the act or

omission—

(i) constitutes gross negligence;

(ii) constitutes an intentional tort; or

(iii) is criminal in nature.

(B) COMMON LAW IMMUNITY PRESERVED.—Subparagraph (A) shall not be construed to abrogate any immunity

under common law of a person described in such subparagraph.

(18) LICENSING AS CHILD DEVELOPMENT CENTER.—A public

charter school which offers a preschool or prekindergarten program shall be subject to the same child care licensing requirements (if any) which apply to a District of Columbia public

school which offers such a program.

SEC. 2205. BOARD OF TRUSTEES OF A PUBLIC CHARTER SCHOOL.

(a) BOARD OF TRUSTEES.—The members of a Board of Trustees

of a public charter school shall be elected or selected pursuant to

the charter granted to the school. Such Board of Trustees shall

have an odd number of members that does not exceed 15, of

which—

(1) a majority shall be residents of the District of Columbia; and

at least 2 shall be parents of a student attending the

school.

(b) ELIGIBILITY.—An individual is eligible for election or selection to the Board of Trustees of a public charter school if the

person—

(1) is a teacher or staff member who is employed at the

school;

(2) is a parent of a student attending the school; or

(3) meets the election or selection criteria set forth in the

charter granted to the school.

(c) ELECTION OR SELECTION OF PARENTS.—In the case of the

first Board of Trustees of a public charter school to be elected or

selected after the date on which the school is granted a charter, the

election or selection of the members under subsection (a)(2) shall

occur on the earliest practicable date after classes at the school

have commenced. Until such date, any other members who have

been elected or selected shall serve as an interim Board of Trustees. Such an interim Board of Trustees may exercise all of the powers, and shall be subject to all of the duties, of a Board of Trustees.

(d) FIDUCIARIES.—The Board of Trustees of a public charter

school shall be fiduciaries of the school and shall set overall policy

for the school. The Board of Trustees may make final decisions on

matters related to the operation of the school, consistent with the
183 Sec. 2207 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

3The amendment made by section 156 of Public Law 106–113 (113 Stat. 1526) added an extra

period.

charter granted to the school, this subtitle, and other applicable

law.

SEC. 2206. STUDENT ADMISSION, ENROLLMENT, AND WITHDRAWAL.

(a) OPEN ENROLLMENT.—Enrollment in a public charter school

shall be open to all students who are residents of the District of

Columbia and, if space is available, to nonresident students who

meet the tuition requirement in subsection (e).

(b) CRITERIA FOR ADMISSION.—A public charter school may not

limit enrollment on the basis of a student’s race, color, religion, national origin, language spoken, intellectual or athletic ability, measures of achievement or aptitude, or status as a student with special

needs. A public charter school may limit enrollment to specific

grade levels.

(c) RANDOM SELECTION.—If there are more applications to enroll in a public charter school from students who are residents of

the District of Columbia than there are spaces available, students

shall be admitted using a random selection process, except that a

preference in admission may be given to an applicant who is a sibling of a student already attending or selected for admission to the

public charter school in which the applicant is seeking enrollment..3

(d) ADMISSION TO AN EXISTING SCHOOL.—During the 5-year period beginning on the date that a petition, filed by an eligible applicant seeking to convert a District of Columbia public school or a

private or independent school into a public charter school, is approved, the school may give priority in enrollment to—

(1) students enrolled in the school at the time the petition

is granted;

(2) the siblings of students described in paragraph (1); and

(3) in the case of the conversion of a District of Columbia

public school, students who reside within the attendance

boundaries, if any, in which the school is located.

(e) NONRESIDENT STUDENTS.—Nonresident students shall pay

tuition to attend a public charter school at the applicable rate established for District of Columbia public schools administered by

the Board of Education for the type of program in which the student is enrolled.

(f) STUDENT WITHDRAWAL.—A student may withdraw from a

public charter school at any time and, if otherwise eligible, enroll

in a District of Columbia public school administered by the Board

of Education.

(g) EXPULSION AND SUSPENSION.—The principal of a public

charter school may expel or suspend a student from the school

based on criteria set forth in the charter granted to the school.

SEC. 2207. EMPLOYEES.

(a) EXTENDED LEAVE OF ABSENCE WITHOUT PAY.—

(1) LEAVE OF ABSENCE FROM DISTRICT OF COLUMBIA PUBLIC

SCHOOLS.—The Superintendent shall grant, upon request, an

extended leave of absence, without pay, to an employee of the

District of Columbia public schools for the purpose of permit-
Sec. 2207 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 184

ting the employee to accept a position at a public charter

school for a 2-year term.

(2) REQUEST FOR EXTENSION.—At the end of a 2-year term

referred to in paragraph (1), an employee granted an extended

leave of absence without pay under such paragraph may submit a request to the Superintendent for an extension of the

leave of absence for an unlimited number of 2-year terms. The

Superintendent may not unreasonably (as determined by the

eligible chartering authority) withhold approval of the request.

(3) RIGHTS UPON TERMINATION OF LEAVE.—An employee

granted an extended leave of absence without pay for the purpose described in paragraph (1) or (2) shall have the same

rights and benefits under law upon termination of such leave

of absence as an employee of the District of Columbia public

schools who is granted an extended leave of absence without

pay for any other purpose.

(b) RETIREMENT SYSTEM.— (1) CREDITABLE SERVICE.—An employee of a public charter

school who has received a leave of absence under subsection (a)

shall receive creditable service, as defined in section 2604 of

D.C. Law 2–139, effective March 3, 1979 (D.C. Code, sec. 1–

627.4) and the rules established under such section, for the period of the employee’s employment at the public charter school.

(2) AUTHORITY TO ESTABLISH SEPARATE SYSTEM.—A public

charter school may establish a retirement system for employees under its authority.

(3) ELECTION OF RETIREMENT SYSTEM.—A former employee

of the District of Columbia public schools who becomes an employee of a public charter school within 60 days after the date

the employee’s employment with the District of Columbia public schools is terminated may, at the time the employee commences employment with the public charter school, elect—

(A) to remain in a District of Columbia Government

retirement system and continue to receive creditable service for the period of their employment at a public charter

school; or

(B) to transfer into a retirement system established by

the public charter school pursuant to paragraph (2).

(4) PROHIBITED EMPLOYMENT CONDITIONS.—No public charter school may require a former employee of the District of Columbia public schools to transfer to the public charter school’s

retirement system as a condition of employment.

(5) CONTRIBUTIONS.—

(A) EMPLOYEES ELECTING NOT TO TRANSFER.—In the

case of a former employee of the District of Columbia public schools who elects to remain in a District of Columbia

Government retirement system pursuant to paragraph

(3)(A), the public charter school that employs the person

shall make the same contribution to such system on behalf

of the person as the District of Columbia would have been

required to make if the person had continued to be an employee of the District of Columbia public schools.

(B) EMPLOYEES ELECTING TO TRANSFER.—In the case of

a former employee of the District of Columbia public

schools who elects to transfer into a retirement system of
185 Sec. 2209 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

a public charter school pursuant to paragraph (3)(B), the

applicable District of Columbia Government retirement

system from which the former employee is transferring

shall compute the employee’s contribution to that system

and transfer this amount, to the retirement system of the

public charter school.

(c) EMPLOYMENT STATUS.—Notwithstanding any other provision of law and except as provided in this section, an employee of

a public charter school shall not be considered to be an employee

of the District of Columbia Government for any purpose.

SEC. 2208. REDUCED FARES FOR PUBLIC TRANSPORTATION.

A student attending a public charter school shall be eligible for

reduced fares on the Metrobus and Metrorail Transit System on

the same terms and conditions as are applicable under section 2 of

D.C. Law 2–152, effective March 9, 1979 (D.C. Code, sec. 44–216

et seq.), to a student attending a District of Columbia public school.

SEC. 2209. DISTRICT OF COLUMBIA PUBLIC SCHOOL SERVICES TO

PUBLIC CHARTER SCHOOLS.

(a) IN GENERAL.—The Superintendent may provide services,

such as facilities maintenance, to public charter schools. All compensation for costs of such services shall be subject to negotiation

and mutual agreement between a public charter school and the Superintendent.

(b) PREFERENCE IN LEASING OR PURCHASING PUBLIC SCHOOL

FACILITIES.—

(1) FORMER PUBLIC SCHOOL PROPERTY.—

(A) IN GENERAL.—Notwithstanding any other provision

of law relating to the disposition of a facility or property

described in subparagraph (B), the Mayor and the District

of Columbia Government shall give preference to an eligible applicant whose petition to establish a public charter

school has been conditionally approved under section

2203(d)(2), or a Board of Trustees, with respect to the purchase or lease of a facility or property described in subparagraph (B), provided that doing so will not result in a

significant loss of revenue that might be obtained from

other dispositions or uses of the facility or property.

(B) PROPERTY DESCRIBED.—A facility or property referred to in subparagraph (A) is a facility, or real

property—

(i) that formerly was under the jurisdiction of the

Board of Education;

(ii) that the Board of Education has determined is

no longer needed for purposes of operating a District

of Columbia public school; and

(iii) with respect to which the Board of Education

has transferred jurisdiction to the Mayor.

(2) CURRENT PUBLIC SCHOOL PROPERTY.— (A) IN GENERAL.—Notwithstanding any other provision

of law relating to the disposition of a facility or property

described in subparagraph (B), the Mayor and the District

of Columbia Government shall give preference to an eligible applicant whose petition to establish a public charter

school has been conditionally approved under section
Sec. 2210 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 186

2203(d)(2), or a Board of Trustees, in leasing, or otherwise

contracting for the use of, a facility or property described

in subparagraph (B).

(B) PROPERTY DESCRIBED.—A facility or property referred to in subparagraph (A) is a facility, real property, or

a designated area of a facility or real property, that—

(i) is under the jurisdiction of the Board of Education; and

(ii) is available for use because the Board of Education is not using, for educational, administrative, or

other purposes, the facility, real property, or designated area.

SEC. 2210. APPLICATION OF LAW.

(a) ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.—

(1) TREATMENT AS LOCAL EDUCATIONAL AGENCY.—

(A) IN GENERAL.—For any fiscal year, a public charter

school shall be considered to be a local educational agency

for purposes of part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.), and

shall be eligible for assistance under such part, if the fraction the numerator of which is the number of low-income

students enrolled in the public charter school during the

fiscal year preceding the fiscal year for which the determination is made and the denominator of which is the

total number of students enrolled in such public charter

school for such preceding year, is equal to or greater than

the lowest fraction determined for any District of Columbia

public school receiving assistance under such part A where

the numerator is the number of low-income students enrolled in such public school for such preceding year and

the denominator is the total number of students enrolled

in such public school for such preceding year.

(B) DEFINITION.—For the purposes of this subsection,

the term ‘‘low-income student’’ means a student from a

low-income family determined according to the measure

adopted by the District of Columbia to carry out the provisions of part A of title I of the Elementary and Secondary

Education Act of 1965 that is consistent with the measures

described in section 1113(a)(5) of such Act (20 U.S.C.

6313(a)(5)) for the fiscal year for which the determination

is made.

(2) ALLOCATION FOR FISCAL YEARS 1996 THROUGH 1998.—

(A) PUBLIC CHARTER SCHOOLS.—For fiscal years 1996

through 1998, each public charter school that is eligible to

receive assistance under part A of title I of the Elementary

and Secondary Education Act of 1965 shall receive a portion of the District of Columbia’s total allocation under

such part which bears the same ratio to such total allocation as the number described in subparagraph (C) bears to

the number described in subparagraph (D).

(B) DISTRICT OF COLUMBIA PUBLIC SCHOOLS.—For fiscal years 1996 through 1998, the District of Columbia public schools shall receive a portion of the District of Columbia’s total allocation under part A of title I of the Elemen-
187 Sec. 2210 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

tary and Secondary Education Act of 1965 which bears the

same ratio to such total allocation as the total of the numbers described in clauses (ii) and (iii) of subparagraph (D)

bears to the aggregate total described in subparagraph (D).

(C) NUMBER OF ELIGIBLE STUDENTS ENROLLED IN THE

PUBLIC CHARTER SCHOOL.—The number described in this

subparagraph is the number of low-income students enrolled in the public charter school during the fiscal year

preceding the fiscal year for which the determination is

made.

(D) AGGREGATE NUMBER OF ELIGIBLE STUDENTS.—The

number described in this subparagraph is the aggregate

total of the following numbers:

(i) The number of low-income students who, during the fiscal year preceding the fiscal year for which

the determination is made, were enrolled in a public

charter school.

(ii) The number of low-income students who, during the fiscal year preceding the fiscal year for which

the determination is made, were enrolled in a District

of Columbia public school selected to provide services

under part A of title I of the Elementary and Secondary Education Act of 1965.

(iii) The number of low-income students who, during the fiscal year preceding the fiscal year for which

the determination is made—

(I) were enrolled in a private or independent

school; and

(II) resided in an attendance area of a District

of Columbia public school selected to provide services under part A of title I of the Elementary and

Secondary Education Act of 1965.

(3) ALLOCATION FOR FISCAL YEAR 1999 AND THEREAFTER.—

(A) CALCULATION BY SECRETARY.—Notwithstanding

sections 1124(a)(2), 1124A(a)(4), and 1125(d) of the Elementary and Secondary Education Act of 1965 (20 U.S.C.

6333(a)(2), 6334(a)(4), and 6335(d)), for fiscal year 1999

and each fiscal year thereafter, the total allocation under

part A of title I of such Act for all local educational agencies in the District of Columbia, including public charter

schools that are eligible to receive assistance under such

part, shall be calculated by the Secretary of Education. In

making such calculation, such Secretary shall treat all

such local educational agencies as if such agencies were a

single local educational agency for the District of Columbia.

(B) ALLOCATION.—

(i) PUBLIC CHARTER SCHOOLS.—For fiscal year

1999 and each fiscal year thereafter, each public charter school that is eligible to receive assistance under

part A of title I of the Elementary and Secondary Education Act of 1965 shall receive a portion of the total

allocation calculated under subparagraph (A) which

bears the same ratio to such total allocation as the
Sec. 2210 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 188

number described in paragraph (2)(C) bears to the aggregate total described in paragraph (2)(D).

(ii) DISTRICT OF COLUMBIA PUBLIC SCHOOL.—For

fiscal year 1999 and each fiscal year thereafter, the

District of Columbia public schools shall receive a portion of the total allocation calculated under subparagraph (A) which bears the same ratio to such total allocation as the total of the numbers described in

clauses (ii) and (iii) of paragraph (2)(D) bears to the

aggregate total described in paragraph (2)(D).

(4) USE OF ESEA FUNDS.—The Board of Education may not

direct a public charter school in the school’s use of funds under

part A of title I of the Elementary and Secondary Education

Act of 1965.

(5) ESEA REQUIREMENTS.—Except as provided in paragraph (6), a public charter school receiving funds under part A

of title I of the Elementary and Secondary Education Act of

1965 (20 U.S.C. 6301 et seq.) shall comply with all requirements applicable to schools receiving such funds.

(6) INAPPLICABILITY OF CERTAIN ESEA PROVISIONS.—The following provisions of the Elementary and Secondary Education

Act of 1965 shall not apply to a public charter school:

(A) Paragraphs (5) and (8) of section 1112(b) (20

U.S.C. 6312(b)).

(B) Paragraphs (1)(A), (1)(B), (1)(C), (1)(D), (1)(F),

(1)(H), and (3) of section 1112(c) (20 U.S.C. 6312(c)).

(C) Section 1113 (20 U.S.C. 6313).

(D) Section 1115A (20 U.S.C. 6316).

(E) Subsections (a), (b), and (c) of section 1116 (20

U.S.C. 6317).

(F) Subsections (d) and (e) of section 1118 (20 U.S.C.

6319).

(G) Section 1120 (20 U.S.C. 6321).

(H) Subsections (a) and (c) of section 1120A (20 U.S.C.

6322).

(I) Section 1126 (20 U.S.C. 6337).

(b) PROPERTY AND SALES TAXES.—A public charter school shall

be exempt from District of Columbia property and sales taxes.

(c) EDUCATION OF CHILDREN WITH DISABILITIES.—Notwithstanding any other provision of this title, each public charter school

shall elect to be treated as a local educational agency or a District

of Columbia public school for the purpose of part B of the Individuals With Disabilities Education Act (20 U.S.C. 1411 et seq.) and

section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794).

(d) WAIVER OF APPLICATION OF DUPLICATE AND CONFLICTING

PROVISIONS.—Notwithstanding any other provision of law, and except as otherwise provided in this title, no provision of any law regarding the establishment, administration, or operation of public

charter schools in the District of Columbia shall apply with respect

to a public charter school or an eligible chartering authority to the

extent that the provision duplicates or is inconsistent with any provision of this title.

(e) PARTICIPATION IN GSA PROGRAMS.—

(1) IN GENERAL.—Notwithstanding any provision of this

Act or any other provision of law, a public charter school may
189 Sec. 2211 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

acquire goods and services through the General Services Administration and may participate in programs of the Administration in the same manner and to the same extent as any entity of the District of Columbia government.

(2) PARTICIPATION BY CERTAIN ORGANIZATIONS.—A public

charter school may delegate to a nonprofit, tax-exempt organization in the District of Columbia the public charter school’s

authority under paragraph (1).

SEC. 2211. POWERS AND DUTIES OF ELIGIBLE CHARTERING AUTHORITIES.

(a) OVERSIGHT.—

(1) IN GENERAL.—An eligible chartering authority—

(A) shall monitor the operations of each public charter

school to which the eligible chartering authority has granted a charter;

(B) shall ensure that each such school complies with

applicable laws and the provisions of the charter granted

to such school; and

(C) shall monitor the progress of each such school in

meeting student academic achievement expectations specified in the charter granted to such school.

(2) PRODUCTION OF BOOKS AND RECORDS.—An eligible chartering authority may require a public charter school to which

the eligible chartering authority has granted a charter to

produce any book, record, paper, or document, if the eligible

chartering authority determines that such production is necessary for the eligible chartering authority to carry out its

functions under this subtitle.

(b) FEES.—

(1) APPLICATION FEE.—An eligible chartering authority

may charge an eligible applicant a fee, not to exceed $150, for

processing a petition to establish a public charter school.

(2) ADMINISTRATION FEE.—In the case of an eligible chartering authority that has granted a charter to a public charter

school, the eligible chartering authority may charge the school

a fee, not to exceed one-half of one percent of the annual budget of the school, to cover the cost of undertaking the ongoing

administrative responsibilities of the eligible chartering authority with respect to the school that are described in this

subtitle. The school shall pay the fee to the eligible chartering

authority not later than November 15 of each year.

(c) IMMUNITY FROM CIVIL LIABILITY.—

(1) IN GENERAL.—An eligible chartering authority, the

Board of Trustees of such an eligible chartering authority, and

a director, officer, employee, or volunteer of such an eligible

chartering authority, shall be immune from civil liability, both

personally and professionally, for any act or omission within

the scope of their official duties unless the act or omission—

(A) constitutes gross negligence;

(B) constitutes an intentional tort; or

(C) is criminal in nature.

(2) COMMON LAW IMMUNITY PRESERVED.—Paragraph (1)

shall not be construed to abrogate any immunity under common law of a person described in such paragraph.
Sec. 2212 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 190

(d) ANNUAL REPORT.—On or before July 30 of each year, each

eligible chartering authority that issues a charter under this subtitle shall submit a report to the Mayor, the District of Columbia

Council, the Board of Education, the Secretary of Education, the

appropriate congressional committees, and the Consensus Commission that includes the following information:

(1) A list of the members of the eligible chartering authority and the addresses of such members.

(2) A list of the dates and places of each meeting of the eligible chartering authority during the year preceding the report.

(3) The number of petitions received by the eligible chartering authority for the conversion of a District of Columbia

public school or a private or independent school to a public

charter school, and for the creation of a new school as a public

charter school.

(4) The number of petitions described in paragraph (3) that

were approved and the number that were denied, as well as a

summary of the reasons for which such petitions were denied.

(5) A description of any new charters issued by the eligible

chartering authority during the year preceding the report.

(6) A description of any charters renewed by the eligible

chartering authority during the year preceding the report.

(7) A description of any charters revoked by the eligible

chartering authority during the year preceding the report.

(8) A description of any charters refused renewal by the eligible chartering authority during the year preceding the report.

(9) Any recommendations the eligible chartering authority

has concerning ways to improve the administration of public

charter schools.

SEC. 2212. CHARTER RENEWAL.

(a) TERMS.—

(1) INITIAL TERM.—A charter granted to a public charter

school shall remain in force for a 15-year period.

(2) RENEWALS.—A charter may be renewed for an unlimited number of times, each time for a 15-year period.

(3) REVIEW.—An eligible chartering authority that grants

or renews a charter pursuant to paragraph (1) or (2) shall review the charter—

(A) at least once every 5 years to determine whether

the charter should be revoked for the reasons described in

subsection (a)(1)(A) or (b) of section 2213 in accordance

with the procedures for such revocation established under

section 2213(c); and

(B) once every 5 years, beginning on the date that is

5 years after the date on which the charter is granted or

renewed, to determine whether the charter should be revoked for the reasons described in section 2213(a)(1)(B) in

accordance with the procedures for such revocation established under section 2213(c).

(b) APPLICATION FOR CHARTER RENEWAL.—In the case of a public charter school that desires to renew its charter, the Board of

Trustees of the school shall file an application to renew the charter
191 Sec. 2212 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

with the eligible chartering authority that granted the charter not

later than 120 days nor earlier than 365 days before the expiration

of the charter. The application shall contain the following:

(1) A report on the progress of the public charter school in

achieving the goals, student academic achievement expectations, and other terms of the approved charter.

(2) All audited financial statements for the public charter

school for the preceding 4 years.

(c) APPROVAL OF CHARTER RENEWAL APPLICATION.—The eligible chartering authority that granted a charter shall approve an

application to renew the charter that is filed in accordance with

subsection (b), except that the eligible chartering authority shall

not approve such application if the eligible chartering authority determines that—

(1) the school committed a material violation of applicable

laws or a material violation of the conditions, terms, standards,

or procedures set forth in its charter, including violations relating to the education of children with disabilities; or

(2) the school failed to meet the goals and student academic achievement expectations set forth in its charter.

(d) PROCEDURES FOR CONSIDERATION OF CHARTER RENEWAL.—

(1) NOTICE OF RIGHT TO HEARING.—An eligible chartering

authority that has received an application to renew a charter

that is filed by a Board of Trustees in accordance with subsection (b) shall provide to the Board of Trustees written notice

of the right to an informal hearing on the application. The eligible chartering authority shall provide the notice not later

than 15 days after the date on which the eligible chartering

authority received the application.

(2) REQUEST FOR HEARING.—Not later than 15 days after

the date on which a Board of Trustees receives a notice under

paragraph (1), the Board of Trustees may request, in writing,

an informal hearing on the application before the eligible chartering authority.

(3) DATE AND TIME OF HEARING.—

(A) NOTICE.—Upon receiving a timely written request

for a hearing under paragraph (2), an eligible chartering

authority shall set a date and time for the hearing and

shall provide reasonable notice of the date and time, as

well as the procedures to be followed at the hearing, to the

Board of Trustees.

(B) DEADLINE.—An informal hearing under this subsection shall take place not later than 30 days after an eligible chartering authority receives a timely written request for the hearing under paragraph (2).

(4) FINAL DECISION.—

(A) DEADLINE.—An eligible chartering authority shall

render a final decision, in writing, on an application to

renew a charter—

(i) not later than 30 days after the date on which

the eligible chartering authority provided the written

notice of the right to a hearing, in the case of an application with respect to which such a hearing is not

held; and
Sec. 2213 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 192

(ii) not later than 30 days after the date on which

the hearing is concluded, in the case of an application

with respect to which a hearing is held.

(B) REASONS FOR NONRENEWAL.—An eligible chartering authority that denies an application to renew a

charter shall state in its decision the reasons for denial.

(5) ALTERNATIVES UPON NONRENEWAL.—If an eligible chartering authority denies an application to renew a charter

granted to a public charter school, the Board of Education

may—

(A) manage the school directly until alternative arrangements can be made for students at the school; or

(B) place the school in a probationary status that requires the school to take remedial actions, to be determined by the Board of Education, that directly relate to

the grounds for the denial.

(6) JUDICIAL REVIEW.—A decision by an eligible chartering

authority to deny an application to renew a charter shall be

subject to judicial review by an appropriate court of the District of Columbia.

SEC. 2213. CHARTER REVOCATION.

(a) CHARTER OR LAW VIOLATIONS; FAILURE TO MEET GOALS.—

(1) IN GENERAL.—Subject to paragraph (2), an eligible

chartering authority that has granted a charter to a public

charter school may revoke the charter if the eligible chartering

authority determines that the school—

(A) committed a violation of applicable laws or a material violation of the conditions, terms, standards, or procedures set forth in the charter, including violations relating

to the education of children with disabilities; or

(B) failed to meet the goals and student academic

achievement expectations set forth in the charter.

(2) SPECIAL RULE.—An eligible chartering authority may

not revoke a charter under paragraph (1)(B), except pursuant

to a determination made through a review conducted under

section 2212(a)(3)(B).

(b) FISCAL MISMANAGEMENT.—An eligible chartering authority

that has granted a charter to a public charter school shall revoke

the charter if the eligible chartering authority determines that the

school—

(1) has engaged in a pattern of nonadherence to generally

accepted accounting principles;

(2) has engaged in a pattern of fiscal mismanagement; or

(3) is no longer economically viable.

(c) PROCEDURES FOR CONSIDERATION OF REVOCATION.—

(1) NOTICE OF RIGHT TO HEARING.—An eligible chartering

authority that is proposing to revoke a charter granted to a

public charter school shall provide to the Board of Trustees of

the school a written notice stating the reasons for the proposed

revocation. The notice shall inform the Board of Trustees of the

right of the Board of Trustees to an informal hearing on the

proposed revocation.

(2) REQUEST FOR HEARING.—Not later than 15 days after

the date on which a Board of Trustees receives a notice under
193 Sec. 2214 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

paragraph (1), the Board of Trustees may request, in writing,

an informal hearing on the proposed revocation before the eligible chartering authority.

(3) DATE AND TIME OF HEARING.—

(A) NOTICE.—Upon receiving a timely written request

for a hearing under paragraph (2), an eligible chartering

authority shall set a date and time for the hearing and

shall provide reasonable notice of the date and time, as

well as the procedures to be followed at the hearing, to the

Board of Trustees.

(B) DEADLINE.—An informal hearing under this subsection shall take place not later than 30 days after an eligible chartering authority receives a timely written request for the hearing under paragraph (2).

(4) FINAL DECISION.—

(A) DEADLINE.—An eligible chartering authority shall

render a final decision, in writing, on the revocation of a

charter—

(i) not later than 30 days after the date on which

the eligible chartering authority provided the written

notice of the right to a hearing, in the case of a proposed revocation with respect to which such a hearing

is not held; and

(ii) not later than 30 days after the date on which

the hearing is concluded, in the case of a proposed revocation with respect to which a hearing is held.

(B) REASONS FOR REVOCATION.—An eligible chartering

authority that revokes a charter shall state in its decision

the reasons for the revocation.

(5) ALTERNATIVES UPON REVOCATION.—If an eligible chartering authority revokes a charter granted to a public charter

school, the Board of Education may manage the school directly

until alternative arrangements can be made for students at the

school.

(6) JUDICIAL REVIEW.—

(A) AVAILABILITY OF REVIEW.—A decision by an eligible

chartering authority to revoke a charter shall be subject to

judicial review by an appropriate court of the District of

Columbia.

(B) STANDARD OF REVIEW.—A decision by an eligible

chartering authority to revoke a charter shall be upheld

unless the decision is arbitrary and capricious or clearly

erroneous.

SEC. 2214. PUBLIC CHARTER SCHOOL BOARD.

(a) ESTABLISHMENT.—

(1) IN GENERAL.—There is established within the District

of Columbia Government a Public Charter School Board (in

this section referred to as the ‘‘Board’’).

(2) MEMBERSHIP.—The Secretary of Education shall

present the Mayor a list of 15 individuals the Secretary determines are qualified to serve on the Board. The Mayor, in consultation with the District of Columbia Council, shall appoint

7 individuals from the list to serve on the Board. The Secretary

of Education shall recommend, and the Mayor shall appoint,
Sec. 2214 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 194

members to serve on the Board so that a knowledge of each of

the following areas is represented on the Board:

(A) Research about and experience in student learning, quality teaching, and evaluation of and accountability

in successful schools.

(B) The operation of a financially sound enterprise, including leadership and management techniques, as well as

the budgeting and accounting skills critical to the startup

of a successful enterprise.

(C) The educational, social, and economic development

needs of the District of Columbia.

(D) The needs and interests of students and parents in

the District of Columbia, as well as methods of involving

parents and other members of the community in individual

schools.

(3) VACANCIES.— (A) OTHER THAN FROM EXPIRATION OF TERM.—Where a

vacancy occurs in the membership of the Board for reasons

other than the expiration of the term of a member of the

Board, the Secretary of Education, not later than 30 days

after the vacancy occurs, shall present to the Mayor a list

of 3 people the Secretary determines are qualified to serve

on the Board. The Mayor, in consultation with the District

of Columbia Council, shall appoint 1 person from the list

to serve on the Board. The Secretary shall recommend,

and the Mayor shall appoint, such member of the Board

taking into consideration the criteria described in paragraph (2). Any member appointed to fill a vacancy occurring prior to the expiration of the term of a predecessor

shall be appointed only for the remainder of the term.

(B) EXPIRATION OF TERM.—Not later than the date

that is 60 days before the expiration of the term of a member of the Board, the Secretary of Education shall present

to the Mayor, with respect to each such impending vacancy, a list of 3 people the Secretary determines are

qualified to serve on the Board. The Mayor, in consultation

with the District of Columbia Council, shall appoint 1 person from each such list to serve on the Board. The Secretary shall recommend, and the Mayor shall appoint, any

member of the Board taking into consideration the criteria

described in paragraph (2).

(4) TIME LIMIT FOR APPOINTMENTS.—If, at any time, the

Mayor does not appoint members to the Board sufficient to

bring the Board’s membership to 7 within 30 days after receiving a recommendation from the Secretary of Education under

paragraph (2) or (3), the Secretary, not later than 10 days after

the final date for such mayoral appointment, shall make such

appointments as are necessary to bring the membership of the

Board to 7.

(5) TERMS OF MEMBERS.—

(A) IN GENERAL.—Members of the Board shall serve

for terms of 4 years, except that, of the initial appointments made under paragraph (2), the Mayor shall

designate—

(i) 2 members to serve terms of 3 years;
195 Sec. 2215 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

(ii) 2 members to serve terms of 2 years; and

(iii) 1 member to serve a term of 1 year.

(B) REAPPOINTMENT.—Members of the Board shall be

eligible to be reappointed for one 4-year term beyond their

initial term of appointment.

(6) INDEPENDENCE.—No person employed by the District of

Columbia public schools or a public charter school shall be eligible to be a member of the Board or to be employed by the

Board.

(b) OPERATIONS OF THE BOARD.—

(1) CHAIR.—The members of the Board shall elect from

among their membership 1 individual to serve as Chair. Such

election shall be held each year after members of the Board

have been appointed to fill any vacancies caused by the regular

expiration of previous members’ terms, or when requested by

a majority vote of the members of the Board.

(2) QUORUM.—A majority of the members of the Board, not

including any positions that may be vacant, shall constitute a

quorum sufficient for conducting the business of the Board.

(3) MEETINGS.—The Board shall meet at the call of the

Chair, subject to the hearing requirements of sections 2203,

2212(d)(3), and 2213(c)(3).

(c) NO COMPENSATION FOR SERVICE.—Members of the Board

shall serve without pay, but may receive reimbursement for any

reasonable and necessary expenses incurred by reason of service on

the Board.

(d) PERSONNEL AND RESOURCES.—

(1) IN GENERAL.—Subject to such rules as may be made by

the Board, the Chair shall have the power to appoint, terminate, and fix the pay of an Executive Director and such other

personnel of the Board as the Chair considers necessary, but

no individual so appointed shall be paid in excess of the rate

payable for level EG–16 of the Educational Service of the District of Columbia.

(2) SPECIAL RULE.—The Board is authorized to use the

services, personnel, and facilities of the District of Columbia.

(e) EXPENSES OF BOARD.—Any expenses of the Board shall be

paid from such funds as may be available to the Mayor: Provided,

That within 45 days of the enactment of this Act the Mayor shall

make available not less than $130,000 to the Board.

(f) AUDIT.—The Board shall provide for an audit of the financial statements of the Board by an independent certified public accountant in accordance with Government auditing standards for financial audits issued by the Comptroller General of the United

States.

(g) AUTHORIZATION OF APPROPRIATIONS.—For the purpose of

carrying out the provisions of this section and conducting the

Board’s functions required by this subtitle, there are authorized to

be appropriated to the Board $300,000 for fiscal year 1997 and

such sums as may be necessary for each of the 3 succeeding fiscal

years.

SEC. 2215. FEDERAL ENTITIES.

(a) IN GENERAL.—The following Federal agencies and federally

established entities are encouraged to explore whether it is feasible
Sec. 2311 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 196

for the agency or entity to establish one or more public charter

schools:

(1) The Library of Congress.

(2) The National Aeronautics and Space Administration.

(3) The Drug Enforcement Administration.

(4) The National Science Foundation.

(5) The Department of Justice.

(6) The Department of Defense.

(7) The Department of Education.

(8) The Smithsonian Institution, including the National

Zoological Park, the National Museum of American History,

the John F. Kennedy Center for the Performing Arts, and the

National Gallery of Art.

(b) REPORT.—Not later than 120 days after date of enactment

of this Act, any agency or institution described in subsection (a)

that has explored the feasibility of establishing a public charter

school shall report its determination on the feasibility to the appropriate congressional committees.

Subtitle C—World Class Schools Task Force, Core

Curriculum, Content Standards, Assessments,

and Promotion Gates

PART 1—WORLD CLASS SCHOOLS TASK FORCE, CORE

CURRICULUM, CONTENT STANDARDS, AND ASSESSMENTS

SEC. 2311. GRANT AUTHORIZED AND RECOMMENDATION REQUIRED.

(a) GRANT AUTHORIZED.— (1) IN GENERAL.—The Superintendent is authorized to

award a grant to a World Class Schools Task Force to enable

such task force to make the recommendation described in subsection (b).

(2) DEFINITION.—For the purpose of this subtitle, the term

‘‘World Class Schools Task Force’’ means 1 nonprofit organization located in the District of Columbia that—

(A) has a national reputation for advocating content

standards;

(B) has a national reputation for advocating a strong

liberal arts curriculum;

(C) has experience with at least 4 urban school districts for the purpose of establishing content standards;

(D) has developed and managed professional development programs in science, mathematics, the humanities

and the arts; and

(E) is governed by an independent board of directors

composed of citizens with a variety of experiences in education and public policy.

(b) RECOMMENDATION REQUIRED.— (1) IN GENERAL.—The World Class Schools Task Force

shall recommend to the Superintendent, the Board of Education, and the District of Columbia Goals Panel the following:

(A) Content standards in the core academic subjects

that are developed by working with the District of Columbia community, which standards shall be developed not
197 Sec. 2312 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

later than 12 months after the date of enactment of this

Act.

(B) A core curriculum developed by working with the

District of Columbia community, which curriculum shall

include the teaching of computer skills.

(C) Districtwide assessments for measuring student

achievement in accordance with content standards developed under subparagraph (A). Such assessments shall be

developed at several grade levels, including at a minimum,

the grade levels with respect to which the Superintendent

establishes promotion gates under section 2321. To the extent feasible, such assessments shall, at a minimum, be

designed to provide information that permits comparisons

between—

(i) individual District of Columbia public schools

and public charter schools; and

(ii) individual students attending such schools.

(D) Model professional development programs for

teachers using the standards and curriculum developed

under subparagraphs (A) and (B).

(2) SPECIAL RULE.—The World Class Schools Task Force is

encouraged, to the extent practicable, to develop districtwide

assessments described in paragraph (1)(C) that permit comparisons among—

(A) individual District of Columbia public schools and

public charter schools, and individual students attending

such schools; and

(B) students of other nations.

(c) CONTENT.—The content standards and assessments recommended under subsection (b) shall be judged by the World Class

Schools Task Force to be world class, including having a level of

quality and rigor, or being analogous to content standards and assessments of other States or nations (including nations whose students historically score high on international studies of student

achievement).

(d) SUBMISSION TO BOARD OF EDUCATION FOR ADOPTION.—If

the content standards, curriculum, assessments, and programs recommended under subsection (b) are approved by the Superintendent, the Superintendent may submit such content standards,

curriculum, assessments, and programs to the Board of Education

for adoption.

SEC. 2312. CONSULTATION.

The World Class Schools Task Force shall conduct its duties

under this part in consultation with—

(1) the District of Columbia Goals Panel;

(2) officials of the District of Columbia public schools who

have been identified by the Superintendent as having responsibilities relevant to this part, including the Deputy Superintendent for Curriculum;

(3) the District of Columbia community, with particular attention given to educators, and parent and business organizations; and

(4) any other persons or groups that the task force deems

appropriate.
Sec. 2313 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 198

SEC. 2313. ADMINISTRATIVE PROVISIONS.

The World Class Schools Task Force shall ensure public access

to its proceedings (other than proceedings, or portions of proceedings, relating to internal personnel and management matters)

that are relevant to its duties under this part and shall make available to the public, at reasonable cost, transcripts of such proceedings.

SEC. 2314. CONSULTANTS.

Upon the request of the World Class Schools Task Force, the

head of any department or agency of the Federal Government may

detail any of the personnel of such agency to such task force to assist such task force in carrying out such task force’s duties under

this part.

SEC. 2315. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated $2,000,000 for fiscal

year 1997 to carry out this part. Such funds shall remain available

until expended.

PART 2—PROMOTION GATES

SEC. 2321. PROMOTION GATES.

(a) KINDERGARTEN THROUGH 4TH GRADE.—Not later than one

year after the date of adoption in accordance with section 2311(d)

of the assessments described in section 2311(b)(1)(C), the Superintendent shall establish and implement promotion gates for mathematics, reading, and writing, for not less than one grade level

from kindergarten through grade 4, including at least grade 4, and

shall establish dates for establishing such other promotion gates for

other subject areas.

(b) 5TH THROUGH 8TH GRADES.—Not later than one year after

the adoption in accordance with section 2311(d) of the assessments

described in section 2311(b)(1)(C), the Superintendent shall establish and implement promotion gates with respect to not less than

one grade level from grade 5 through grade 8, including at least

grade 8.

(c) 9TH THROUGH 12TH GRADES.—Not later than one year after

the adoption in accordance with section 2311(d) of the assessments

described in section 2311(b)(1)(C), the Superintendent shall establish and implement promotion gates with respect to not less than

one grade level from grade 9 through grade 12, including at least

grade 12.

Subtitle D—Per Capita District of Columbia

Public School and Public Charter School Funding

SEC. 2401. ANNUAL BUDGETS FOR SCHOOLS.

(a) IN GENERAL.—For fiscal year 1997 and for each subsequent

fiscal year, the Mayor shall make annual payments from the general fund of the District of Columbia in accordance with the formula established under subsection (b).

(b) FORMULA.—

(1) IN GENERAL.—The Mayor and the District of Columbia

Council, in consultation with the Board of Education and the
199 Sec. 2401 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

Superintendent, shall establish not later than 90 days after enactment of this Act, a formula to determine the amount of—

(A) the annual payment to the Board of Education for

the operating expenses of the District of Columbia public

schools, which for purposes of this paragraph includes the

operating expenses of the Board of Education and the Office of the Superintendent; and

(B) the annual payment to each public charter school

for the operating expenses of each public charter school.

(2) FORMULA CALCULATION.—Except as provided in paragraph (3), the amount of the annual payment under paragraph

(1) shall be calculated by multiplying a uniform dollar amount

used in the formula established under such paragraph by—

(A) the number of students calculated under section

2402 that are enrolled at District of Columbia public

schools, in the case of the payment under paragraph (1)(A);

or

(B) the number of students calculated under section

2402 that are enrolled at each public charter school, in the

case of a payment under paragraph (1)(B).

(3) EXCEPTIONS.—

(A) FORMULA.—Notwithstanding paragraph (2), the

Mayor and the District of Columbia Council, in consultation with the Board of Education and the Superintendent,

may adjust the formula to increase or decrease the amount

of the annual payment to the District of Columbia public

schools or each public charter school based on a calculation

of—

(i) the number of students served by such schools

in certain grade levels; and

(ii) the cost of educating students at such certain

grade levels.

(B) PAYMENT.—Notwithstanding paragraph (2), the

Mayor and the District of Columbia Council, in consultation with the Board of Education and the Superintendent,

may adjust the amount of the annual payment under paragraph (1) to increase the amount of such payment if a District of Columbia public school or a public charter school

serves a high number of students—

(i) with special needs;

(ii) who do not meet minimum literacy standards;

or

(iii) to whom the school provides room and board

in a residential setting.

(C) ADJUSTMENT FOR FACILITIES COSTS.—Notwithstanding paragraph (2), the Mayor and the District of Columbia Council, in consultation with the Board of Education and the Superintendent, shall adjust the amount of

the annual payment under paragraph (1) to increase the

amount of such payment for a public charter school to take

into account leases or purchases of, or improvements to,

real property, if the school, not later than April 1 of the

fiscal year preceding the payment, requests such an adjustment.
Sec. 2402 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 200

SEC. 2402. CALCULATION OF NUMBER OF STUDENTS.

(a) SCHOOL REPORTING REQUIREMENT.—

(1) IN GENERAL.—Not later than September 15, 1996, and

not later than September 15 of each year thereafter, each District of Columbia public school and public charter school shall

submit a report to the Mayor and the Board of Education containing the information described in subsection (b) that is applicable to such school.

(2) SPECIAL RULE.—Not later than April 1, 1997, and not

later than April 1 of each year thereafter, each public charter

school shall submit a report in the same form and manner as

described in paragraph (1) to ensure accurate payment under

section 2403(a)(2)(B)(ii).

(b) CALCULATION OF NUMBER OF STUDENTS.—Not later than 30

days after the date of the enactment of this Act, and not later than

October 15 of each year thereafter, the Board of Education shall

calculate the following:

(1) The number of students, including nonresident students and students with special needs, enrolled in each grade

from kindergarten through grade 12 of the District of Columbia

public schools and in public charter schools, and the number

of students whose tuition for enrollment in other schools is

paid for with funds available to the District of Columbia public

schools.

(2) The amount of fees and tuition assessed and collected

from the nonresident students described in paragraph (1).

(3) The number of students, including nonresident students, enrolled in preschool and prekindergarten in the District

of Columbia public schools and in public charter schools.

(4) The amount of fees and tuition assessed and collected

from the nonresident students described in paragraph (3).

(5) The number of full time equivalent adult students enrolled in adult, community, continuing, and vocational education programs in the District of Columbia public schools and

in public charter schools.

(6) The amount of fees and tuition assessed and collected

from resident and nonresident adult students described in

paragraph (5).

(7) The number of students, including nonresident students, enrolled in nongrade level programs in District of Columbia public schools and in public charter schools.

(8) The amount of fees and tuition assessed and collected

from nonresident students described in paragraph (7).

(c) ANNUAL REPORTS.—Not later than 30 days after the date of

the enactment of this Act, and not later than October 15 of each

year thereafter, the Board of Education shall prepare and submit

to the Authority, the Mayor, the District of Columbia Council, the

Consensus Commission, the Comptroller General of the United

States, and the appropriate congressional committees a report containing a summary of the most recent calculations made under subsection (b).

(d) AUDIT OF INITIAL CALCULATIONS.—

(1) IN GENERAL.—The Board of Education shall arrange

with the Authority to provide for the conduct of an inde-
201 Sec. 2403 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

pendent audit of the initial calculations described in subsection

(b).

(2) CONDUCT OF AUDIT.—In conducting the audit, the independent auditor—

(A) shall provide an opinion as to the accuracy of the

information contained in the report described in subsection

(c); and

(B) shall identify any material weaknesses in the systems, procedures, or methodology used by the Board of

Education—

(i) in determining the number of students, including nonresident students, enrolled in the District of

Columbia public schools and in public charter schools,

and the number of students whose tuition for enrollment in other school systems is paid for by funds

available to the District of Columbia public schools;

and

(ii) in assessing and collecting fees and tuition

from nonresident students.

(3) SUBMISSION OF AUDIT.—Not later than 45 days, or as

soon thereafter as is practicable, after the date on which the

Authority receives the initial annual report from the Board of

Education under subsection (c), the Authority shall submit to

the Board of Education, the Mayor, the District of Columbia

Council, and the appropriate congressional committees, the

audit conducted under this subsection.

(4) COST OF THE AUDIT.—The Board of Education shall reimburse the Authority for the cost of the independent audit,

solely from amounts appropriated to the Board of Education for

staff, stipends, and other-than-personal-services of the Board of

Education by an Act making appropriations for the District of

Columbia.

SEC. 2403. PAYMENTS.

(a) IN GENERAL.—

(1) ESCROW FOR PUBLIC CHARTER SCHOOLS.—Except as provided in subsection (b), for any fiscal year, not later than 10

days after the date of enactment of an Act making appropriations for the District of Columbia for such fiscal year, the

Mayor shall place in escrow an amount equal to the aggregate

of the amounts determined under section 2401(b)(1)(B) for use

only by District of Columbia public charter schools.

(2) TRANSFER OF ESCROW FUNDS.—

(A) INITIAL PAYMENT.— (i) IN GENERAL.—Except as provided in clause (ii),

not later than October 15, 1996, and not later than

October 15 of each year thereafter, the Mayor shall

transfer, by electronic funds transfer, an amount equal

to 75 percent of the amount of the annual payment for

each public charter school determined by using the

formula established pursuant to section 2401(b) to a

bank designated by such school.

(ii) REDUCTION IN CASE OF NEW SCHOOL.—In the

case of a public charter school that has received a payment under subsection (b) in the fiscal year imme-
Sec. 2403 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 202

diately preceding the fiscal year in which a transfer

under clause (i) is made, the amount transferred to

the school under clause (i) shall be reduced by an

amount equal to 75 percent of the amount of the

payment under subsection (b).

(B) FINAL PAYMENT.—

(i) IN GENERAL.—Except as provided in clauses (ii)

and (iii), not later than May 1, 1997, and not later

than May 1 of each year thereafter, the Mayor shall

transfer the remainder of the annual payment for a

public charter school in the same manner as the initial

payment was made under subparagraph (A).

(ii) ADJUSTMENT FOR ENROLLMENT.—Not later

than March 15, 1997, and not later than March 15 of

each year thereafter, if the enrollment number of a

public charter school has changed from the number reported to the Mayor and the Board of Education, as

required under section 2402(a), the Mayor shall increase the payment in an amount equal to 50 percent

of the amount provided for each student who has enrolled in such school in excess of such enrollment

number, or shall reduce the payment in an amount

equal to 50 percent of the amount provided for each

student who has withdrawn or dropped out of such

school below such enrollment number.

(iii) REDUCTION IN CASE OF NEW SCHOOL.—In the

case of a public charter school that has received a payment under subsection (b) in the fiscal year immediately preceding the fiscal year in which a transfer

under clause (i) is made, the amount transferred to

the school under clause (i) shall be reduced by an

amount equal to 25 percent of the amount of the

payment under subsection (b).

(C) PRO RATA REDUCTION OR INCREASE IN PAYMENTS.—

(i) PRO RATA REDUCTION.—If the funds made

available to the District of Columbia Government for

the District of Columbia public school system and each

public charter school for any fiscal year are insufficient to pay the full amount that such system and

each public charter school is eligible to receive under

this subtitle for such year, the Mayor shall ratably reduce such amounts for such year on the basis of the

formula described in section 2401(b).

(ii) INCREASE.—If additional funds become available for making payments under this subtitle for such

fiscal year, amounts that were reduced under subparagraph (A) shall be increased on the same basis as such

amounts were reduced.

(D) UNEXPENDED FUNDS.—Any funds that remain in

the escrow account for public charter schools on September

30 of a fiscal year shall revert to the general fund of the

District of Columbia.

(b) PAYMENTS TO NEW SCHOOLS.—
203 Sec. 2403 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

(1) ESTABLISHMENT OF FUND.—There is established in the

general fund of the District of Columbia a fund to be known

as the ‘‘New Charter School Fund’’.

(2) CONTENTS OF FUND.—The New Charter School Fund

shall consist of—

(A) unexpended and unobligated amounts appropriated from local funds for public charter schools for fiscal

year 1997 and subsequent fiscal years that reverted to the

general fund of the District of Columbia;

(B) amounts credited to the fund in accordance with

this subsection upon the receipt by a public charter school

described in paragraph (5) of its first initial payment

under subsection (a)(2)(A) or its first final payment under

subsection (a)(2)(B); and

(C) any interest earned on such amounts.

(3) EXPENDITURES FROM FUND.— (A) IN GENERAL.—Not later than June 1, 1998, and not

later than June 1 of each year thereafter, the Chief Financial Officer of the District of Columbia shall pay, from the

New Charter School Fund, to each public charter school

described in paragraph (5), an amount equal to 25 percent

of the amount yielded by multiplying the uniform dollar

amount used in the formula established under section

2401(b) by the total anticipated enrollment as set forth in

the petition to establish the public charter school.

(B) PRO RATA REDUCTION.—If the amounts in the New

Charter School Fund for any year are insufficient to pay

the full amount that each public charter school described

in paragraph (5) is eligible to receive under this subsection

for such year, the Chief Financial Officer of the District of

Columbia shall ratably reduce such amounts for such year

on the basis of the formula described in section 2401(b).

(C) FORM OF PAYMENT.—Payments under this

subsection shall be made by electronic funds transfer from

the New Charter School Fund to a bank designated by a

public charter school.

(4) CREDITS TO FUND.—Upon the receipt by a public

charter school described in paragraph (5) of—

(A) its first initial payment under subsection (a)(2)(A),

the Chief Financial Officer of the District of Columbia

shall credit the New Charter School Fund with 75 percent

of the amount paid to the school under paragraph (3); and

(B) its first final payment under subsection (a)(2)(B),

the Chief Financial Officer of the District of Columbia

shall credit the New Charter School Fund with 25 percent

of the amount paid to the school under paragraph (3).

(5) SCHOOLS DESCRIBED.—A public charter school described

in this paragraph is a public charter school that—

(A) did not enroll any students during any portion of

the fiscal year preceding the most recent fiscal year for

which funds are appropriated to carry out this subsection;

and

(B) operated as a public charter school during the

most recent fiscal year for which funds are appropriated to

carry out this subsection.
Sec. 2550 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 204

(6) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Chief Financial Officer of the

District of Columbia such sums as may be necessary to carry

out this subsection for each fiscal year.

(c) ASSIGNMENT OF PAYMENTS.—A public charter school may

assign any payments made to the school under this section to a financial institution for use as collateral to secure a loan or for the

repayment of a loan.

Subtitle E—School Facilities Repair and

Improvement

SEC. 2550. DEFINITIONS.

For purposes of this subtitle—

(1) the term ‘‘facilities’’ means buildings, structures, and

real property of the District of Columbia public schools, except

that such term does not include any administrative office

building that is not located in a building containing classrooms; and

(2) the term ‘‘repair and improvement’’ includes administration, construction, and renovation.

PART 1—SCHOOL FACILITIES

SEC. 2551. TECHNICAL ASSISTANCE.

(a) IN GENERAL.—Not later than 90 days after the date of enactment of this Act the Administrator of the General Services Administration shall enter into a Memorandum of Agreement or Understanding (referred to in this subtitle as the ‘‘Agreement’’) with

the Superintendent regarding the terms under which the Administrator will provide technical assistance and related services with

respect to District of Columbia public schools facilities management

in accordance with this section.

(b) TECHNICAL ASSISTANCE AND RELATED SERVICES.—The technical assistance and related services described in subsection (a)

shall include—

(1) the Administrator consulting with and advising District

of Columbia public school personnel responsible for public

schools facilities management, including repair and improvement with respect to facilities management of such schools;

(2) the Administrator assisting the Superintendent in developing a systemic and comprehensive facilities revitalization

program, for the repair and improvement of District of Columbia public school facilities, which program shall—

(A) include a list of facilities to be repaired and improved in a recommended order of priority;

(B) provide the repair and improvement required to

support modern technology; and

(C) take into account the Preliminary Facilities Master

Plan 2005 (prepared by the Superintendent’s Task Force

on Education Infrastructure for the 21st Century);

(3) the method by which the Superintendent will accept donations of private goods and services for use by the District of

Columbia public schools without regard to any law or regulation of the District of Columbia;
205 Sec. 2551 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

(4) the Administrator recommending specific repair and

improvement projects in District of Columbia public school facilities to the Superintendent that are appropriate for completion by members and units of the National Guard and the Reserves in accordance with the program developed under paragraph (2);

(5) upon the request of the Superintendent, the Administrator assisting the appropriate District of Columbia public

school officials in the preparation of an action plan for the performance of any repair and improvement recommended in the

program developed under paragraph (2), which action plan

shall detail the technical assistance and related services the

Administrator proposes to provide in the accomplishment of

the repair and improvement;

(6) upon the request of the Superintendent, and if consistent with the efficient use of resources as determined by the

Administrator, the coordination of the accomplishment of any

repair and improvement in accordance with the action plan

prepared under paragraph (5), except that in carrying out this

paragraph, the Administrator shall not be subject to the requirements of title III of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq., and 41 U.S.C.

251 et seq.), the Office of Federal Procurement Policy Act (41

U.S.C. 401 et seq.), nor shall such action plan be subject to review under the bid protest procedures described in sections

3551 through 3556 of title 31, United States Code, or the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.);

(7) providing access for the Administrator to all District of

Columbia public school facilities as well as permitting the Administrator to request and obtain any record or document regarding such facilities as the Administrator determines necessary, except that any such record or document shall not become a record (as defined in section 552a of title 5, United

States Code) of the General Services Administration; and

(8) the Administrator making recommendations regarding

how District of Columbia public school facilities may be used

by the District of Columbia community for multiple purposes.

(c) AGREEMENT PROVISIONS.—The Agreement shall include—

(1) the procedures by which the Superintendent and Administrator will consult with respect to carrying out this section, including reasonable time frames for such consultation;

(2) the scope of the technical assistance and related services to be provided by the General Services Administration in

accordance with this section;

(3) assurances by the Administrator and the Superintendent to cooperate with each other in any way necessary

to ensure implementation of the Agreement, including assurances that funds available to the District of Columbia shall be

used to pay the obligations of the District of Columbia public

school system that are incurred as a result of actions taken

under, or in furtherance of, the Agreement, in addition to

funds available to the Administrator for purposes of this section; and

(4) the duration of the Agreement, except that in no event

shall the Agreement remain in effect later than the day that
Sec. 2552 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 206

is 24 months after the date that the Agreement is signed, or

the day that the agency designated pursuant to section

2552(a)(2) assumes responsibility for the District of Columbia

public school facilities, whichever day is earlier.

(d) LIMITATION ON ADMINISTRATOR’S LIABILITY.—No claim, suit,

or action may be brought against the Administrator in connection

with the discharge of the Administrator’s responsibilities under

this subtitle.

(e) SPECIAL RULE.—Notwithstanding any other provision of

law, the Administrator is authorized to accept and use a conditioned gift made for the express purpose of repairing or improving

a District of Columbia public school, except that the Administrator

shall not be required to carry out any repair or improvement under

this section unless the Administrator accepts a donation of private

goods or services sufficient to cover the costs of such repair or improvement.

(f) EFFECTIVE DATE.—This subtitle shall cease to be effective

on the earlier day specified in subsection (c)(4).

SEC. 2552. FACILITIES REVITALIZATION PROGRAM.

(a) PROGRAM.—Not later than 12 months after the date of enactment of this Act, the Mayor and the District of Columbia Council in consultation with the Administrator, the Authority, the Board

of Education, and the Superintendent, shall—

(1) design and implement a comprehensive long-term program for the repair and improvement, and maintenance and

management, of the District of Columbia public school facilities, which program shall incorporate the work completed in

accordance with the program described in section 2551(b)(2);

and

(2) designate a new or existing agency or authority within

the District of Columbia Government to administer such program.

(b) PROCEEDS.—Such program shall include—

(1) identifying short-term funding for capital and maintenance of facilities, which may include retaining proceeds from

the sale or lease of a District of Columbia public school facility;

and

(2) identifying and designating long-term funding for capital and maintenance of facilities.

(c) IMPLEMENTATION.—Upon implementation of such program,

the agency or authority created or designated pursuant to subsection (a)(2) shall assume authority and responsibility for the repair and improvement, and maintenance and management, of District of Columbia public schools.

PART 2—WAIVERS

SEC. 2561. WAIVERS.

(a) IN GENERAL.—

(1) REQUIREMENTS WAIVED.—Subject to subsection (b), all

District of Columbia fees and all requirements contained in the

document entitled ‘‘District of Columbia Public Schools Standard Contract Provisions’’ (as such document was in effect on

November 2, 1995 and including any revisions or modifications

to such document) published by the District of Columbia public
207 Sec. 2602 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

schools for use with construction or maintenance projects, are

waived, for purposes of repair and improvement of District of

Columbia public schools facilities for a period beginning on the

date of enactment of this Act and ending 24 months after such

date.

(2) DONATIONS.—Any individual may volunteer his or her

services or may donate materials to a District of Columbia public school facility for the repair and improvement of such facility provided that the provision of voluntary services meets the

requirements of 29 U.S.C. 203(e)(4).

(b) LIMITATION.—A waiver under subsection (a) shall not apply

to the Davis-Bacon Act (40 U.S.C. 276a et seq.) or Executive Order

11246 or other civil rights standards.

PART 3—GIFTS, DONATIONS, BEQUESTS, AND DEVISES

SEC. 2571. GIFTS, DONATIONS, BEQUESTS, AND DEVISES.

(a) IN GENERAL.—A District of Columbia public school or a

public charter school may accept directly from any person a gift,

donation, bequest, or devise of any property, real or personal, without regard to any law or regulation of the District of Columbia.

(b) TAX LAWS.—For the purposes of the income tax, gift tax,

and estate tax laws of the Federal Government, any money or

other property given, donated, bequeathed, or devised to a District

of Columbia public school or a public charter school, shall be

deemed to have been given, donated, bequeathed, or devised to or

for the use of the District of Columbia.

Subtitle F—Partnerships With Business

SEC. 2601. PURPOSE.

The purpose of this subtitle is—

(1) to leverage private sector funds utilizing initial Federal

investments in order to provide students and teachers within

the District of Columbia public schools and public charter

schools with access to state-of-the-art educational technology;

(2) to establish a regional job training and employment

center;

(3) to strengthen workforce preparation initiatives for students within the District of Columbia public schools and public

charter schools;

(4) to coordinate private sector investments in carrying out

this title; and

(5) to assist the Superintendent with the development of

individual career paths in accordance with the long-term reform plan.

SEC. 2602. DUTIES OF THE SUPERINTENDENT OF THE DISTRICT OF

COLUMBIA PUBLIC SCHOOLS.

The Superintendent is authorized to provide a grant to a private, nonprofit corporation that meets the eligibility criteria under

section 2603 for the purposes of carrying out the duties under sections 2604 and 2607.
Sec. 2603 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 208

SEC. 2603. ELIGIBILITY CRITERIA FOR PRIVATE, NONPROFIT CORPORATION.

A private, nonprofit corporation shall be eligible to receive a

grant under section 2602 if the corporation is a national business

organization incorporated in the District of Columbia, that—

(1) has a board of directors which includes members who

are also chief executive officers of technology-related corporations involved in education and workforce development issues;

(2) has extensive practical experience with initiatives that

link business resources and expertise with education and training systems;

(3) has experience in working with State and local educational agencies throughout the United States with respect to

the integration of academic studies with workforce preparation

programs; and

(4) has a nationwide structure through which additional

resources can be leveraged and innovative practices disseminated.

SEC. 2604. DUTIES OF THE PRIVATE, NONPROFIT CORPORATION.

(a) DISTRICT EDUCATION AND LEARNING TECHNOLOGIES AD- VANCEMENT COUNCIL.— (1) ESTABLISHMENT—The private, nonprofit corporation

shall establish a council to be known as the ‘‘District Education

and Learning Technologies Advancement Council’’ (in this subtitle referred to as the ‘‘council’’).

(2) MEMBERSHIP.— (A) IN GENERAL.—The private, nonprofit corporation

shall appoint members to the council. An individual shall

be appointed as a member to the council on the basis of

the commitment of the individual, or the entity which the

individual is representing, to providing time, energy, and

resources to the council.

(B) COMPENSATION.—Members of the council shall

serve without compensation.

(3) DUTIES.—The council—

(A) shall advise the private, nonprofit corporation with

respect to the duties of the corporation under subsections

(b) through (d) of this section; and

(B) shall assist the corporation in leveraging private

sector resources for the purpose of carrying out such duties.

(b) ACCESS TO STATE-OF-THE-ART EDUCATIONAL TECHNOLOGY.—

(1) IN GENERAL—The private, nonprofit corporation, in conjunction with the Superintendent, students, parents, and

teachers, shall establish and implement strategies to ensure

access to state-of-the-art educational technology within the

District of Columbia public schools and public charter schools.

(2) ELECTRONIC DATA TRANSFER SYSTEM.—The private,

nonprofit corporation shall assist the Superintendent in acquiring the necessary equipment, including computer hardware

and software, to establish an electronic data transfer system.

The private, nonprofit corporation shall also assist in arranging for training of District of Columbia public school employees

in using such equipment.
209 Sec. 2604 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

(3) TECHNOLOGY ASSESSMENT.— (A) IN GENERAL.—In establishing and implementing

the strategies under paragraph (1), the private, nonprofit

corporation, not later than September 1, 1996, shall provide for an assessment of the availability, on the date of

enactment of this Act, of state-of-the-art educational technology within the District of Columbia public schools and

public charter schools.

(B) CONDUCT OF ASSESSMENT.—In providing for the assessment under subparagraph (A), the private, nonprofit

corporation—

(i) shall provide for onsite inspections of the stateof-the-art educational technology within a minimum

sampling of District of Columbia public schools and

public charter schools; and

(ii) shall ensure proper input from students, parents, teachers, and other school officials through the

use of focus groups and other appropriate mechanisms.

(C) RESULTS OF ASSESSMENT.—The private, nonprofit

corporation shall ensure that the assessment carried out

under this paragraph provides, at a minimum, necessary

information on state-of-the-art educational technology

within the District of Columbia public schools and public

charter schools, including—

(i) the extent to which typical District of Columbia

public schools have access to such state-of-the-art educational technology and training for such technology;

(ii) how such schools are using such technology;

(iii) the need for additional technology and the

need for infrastructure for the implementation of such

additional technology;

(iv) the need for computer hardware, software,

training, and funding for such additional technology or

infrastructure; and

(v) the potential for computer linkages among District of Columbia public schools and public charter

schools.

(4) SHORT-TERM TECHNOLOGY PLAN.—

(A) IN GENERAL.—Based upon the results of the technology assessment under paragraph (3), the private, nonprofit corporation shall develop a 3-year plan that includes

goals, priorities, and strategies for obtaining the resources

necessary to implement strategies to ensure access to

state-of-the-art educational technology within the District

of Columbia public schools and public charter schools.

(B) IMPLEMENTATION.—The private, nonprofit corporation, in conjunction with schools, students, parents, and

teachers, shall implement the plan developed under subparagraph (A).

(5) LONG-TERM TECHNOLOGY PLAN.—Prior to the completion of the implementation of the short-term technology plan

under paragraph (4), the private, nonprofit corporation shall

develop a plan under which the corporation will continue to coordinate the donation of private sector resources for maintain-
Sec. 2604 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 210

ing the continuous improvement and upgrading of state-of-theart educational technology within the District of Columbia public schools and public charter schools.

(c) DISTRICT EMPLOYMENT AND LEARNING CENTER.—

(1) ESTABLISHMENT.—The private, nonprofit corporation

shall establish a center to be known as the ‘‘District Employment and Learning Center’’ (in this subtitle referred to as the

‘‘center’’), which shall serve as a regional institute providing

job training and employment assistance.

(2) DUTIES.—

(A) JOB TRAINING AND EMPLOYMENT ASSISTANCE PROGRAM.—The center shall establish a program to provide job

training and employment assistance in the District of Columbia and shall coordinate with career preparation programs in existence on the date of enactment of this Act,

such as vocational education, school-to-work, and career

academies in the District of Columbia public schools.

(B) CONDUCT OF PROGRAM.—In carrying out the program established under subparagraph (A), the center—

(i) shall provide job training and employment assistance to youths who have attained the age of 18 but

have not attained the age of 26, who are residents of

the District of Columbia, and who are in need of such

job training and employment assistance for an appropriate period not to exceed 2 years;

(ii) shall work to establish partnerships and enter

into agreements with appropriate agencies of the District of Columbia Government to serve individuals participating in appropriate Federal programs, including

programs under title I of the Workforce Investment

Act of 1998, the Job Opportunities and Basic Skills

Training Program under part F of title IV of the Social

Security Act (42 U.S.C. 681 et seq.), the Carl D. Perkins Vocational and Applied Technology Education Act

(20 U.S.C. 2301 et seq.), and the School-to-Work Opportunities Act of 1994 (20 U.S.C. 6101 et seq.);

(iii) shall conduct such job training, as appropriate, through a consortium of colleges, universities,

community colleges, businesses, and other appropriate

providers, in the District of Columbia metropolitan

area;

(iv) shall design modular training programs that

allow students to enter and leave the training curricula depending on their opportunities for job assignments with employers; and

(v) shall utilize resources from businesses to enhance work-based learning opportunities and facilitate

access by students to work-based learning and work

experience through temporary work assignments with

employers in the District of Columbia metropolitan

area.

(C) COMPENSATION.—The center may provide compensation to youths participating in the program under

this paragraph for part-time work assigned in conjunction
211 Sec. 2606 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

with training. Such compensation may include need-based

payments and reimbursement of expenses.

(d) WORKFORCE PREPARATION INITIATIVES.—

(1) IN GENERAL.—The private, nonprofit corporation shall

establish initiatives with the District of Columbia public

schools, and public charter schools, appropriate governmental

agencies, and businesses and other private entities, to facilitate

the integration of rigorous academic studies with workforce

preparation programs in District of Columbia public schools

and public charter schools.

(2) CONDUCT OF INITIATIVES.—In carrying out the initiatives under paragraph (1), the private, nonprofit corporation

shall, at a minimum, actively develop, expand, and promote

the following programs:

(A) Career academy programs in secondary schools, as

such programs are established in certain District of Columbia public schools, which provide a school-within-aschool concept, focusing on career preparation and the integration of the academy programs with vocational and

technical curriculum.

(B) Programs carried out in the District of Columbia

that are funded under the School-to-Work Opportunities

Act of 1994 (20 U.S.C. 6101 et seq.).

SEC. 2605. MATCHING FUNDS.

The private, nonprofit corporation, to the extent practicable,

shall provide matching funds, or in-kind contributions, or a combination thereof, for the purpose of carrying out the duties of the

corporation under section 2604, as follows:

(1) For fiscal year 1997, the nonprofit corporation shall

provide matching funds or in-kind contributions of $1 for every

$1 of Federal funds provided under this subtitle for such year

for activities under section 2604.

(2) For fiscal year 1998, the nonprofit corporation shall

provide matching funds or in-kind contributions of $3 for every

$1 of Federal funds provided under this subtitle for such year

for activities under section 2604.

(3) For fiscal year 1999, the nonprofit corporation shall

provide matching funds or in-kind contributions of $5 for every

$1 of Federal funds provided under this subtitle for such year

for activities under section 2604.

SEC. 2606. REPORT.

The private, nonprofit corporation shall prepare and submit to

the appropriate congressional committees on a quarterly basis, or,

with respect to fiscal year 1997, on a semiannual basis, a report

which shall contain—

(1) the activities the corporation has carried out, including

the duties of the corporation described in section 2604, for the

3-month period ending on the date of the submission of the report, or, with respect to fiscal year 1997, the 6-month period

ending on the date of the submission of the report;

(2) an assessment of the use of funds or other resources

donated to the corporation;

(3) the results of the assessment carried out under section

2604(b)(3); and
Sec. 2607 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 212

(4) a description of the goals and priorities of the corporation for the 3-month period beginning on the date of the submission of the report, or, with respect to fiscal year 1997, the

6-month period beginning on the date of the submission of the

report.

SEC. 2607. JOBS FOR D.C. GRADUATES PROGRAM.

(a) IN GENERAL.—The nonprofit corporation shall establish a

program, to be known as the ‘‘Jobs for D.C. Graduates Program’’,

to assist District of Columbia public schools and public charter

schools in organizing and implementing a school-to-work transition

system, which system shall give priority to providing assistance to

at-risk youths and disadvantaged youths.

(b) CONDUCT OF PROGRAM.—In carrying out the program established under subsection (a), the nonprofit corporation, consistent

with the policies of the nationally recognized Jobs for America’s

Graduates, Inc., shall—

(1) establish performance standards for such program;

(2) provide ongoing enhancement and improvements in

such program;

(3) provide research and reports on the results of such program; and

(4) provide preservice and inservice training.

SEC. 2608. AUTHORIZATION OF APPROPRIATIONS.

(a) AUTHORIZATION.—

(1) DELTA COUNCIL; ACCESS TO STATE-OF-THE-ART EDUCATIONAL TECHNOLOGY; AND WORKFORCE PREPARATION INITIATIVES.—There are authorized to be appropriated to carry out

subsections (a), (b), and (d) of section 2604, $1,000,000 for each

of the fiscal years 1997, 1998, and 1999.

(2) DEAL CENTER.—There are authorized to be appropriated to carry out section 2604(c), $2,000,000 for each of the

fiscal years 1997, 1998, and 1999.

(3) JOBS FOR D.C. GRADUATES PROGRAM.—There are authorized to be appropriated to carry out section 2607— (A) $2,000,000 for fiscal year 1997; and

(B) $3,000,000 for each of the fiscal years 1998

through 2001.

(b) AVAILABILITY.—Amounts authorized to be appropriated

under subsection (a) are authorized to remain available until expended.

SEC. 2609. TERMINATION OF FEDERAL SUPPORT; SENSE OF THE CONGRESS RELATING TO CONTINUATION OF ACTIVITIES.

(a) TERMINATION OF FEDERAL SUPPORT.—The authority under

this subtitle to provide assistance to the private, nonprofit corporation or any other entity established pursuant to this subtitle shall

terminate on October 1, 1999.

(b) SENSE OF THE CONGRESS RELATING TO CONTINUATION OF

ACTIVITIES.—It is the sense of the Congress that—

(1) the activities of the private, nonprofit corporation under

section 2604 should continue to be carried out after October 1,

1999, with resources made available from the private sector;

and

(2) the corporation should provide oversight and coordination for such activities after such date.
213 Sec. 2753 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

Subtitle G—Management and Fiscal Accountability; Preservation of School-Based Resources

SEC. 2751. MANAGEMENT SUPPORT SYSTEMS.

(a) FOOD SERVICES AND SECURITY SERVICES.—Notwithstanding

any other law, rule, or regulation, the Board of Education shall

enter into a contract for academic year 1995–1996 and each succeeding academic year, for the provision of all food services operations and security services for the District of Columbia public

schools, unless the Superintendent determines that it is not feasible and provides the Superintendent’s reasons in writing to the

Board of Education and the Authority.

(b) DEVELOPMENT OF NEW MANAGEMENT AND DATA SYSTEMS.— Notwithstanding any other law, rule, or regulation, the Board of

Education shall, in academic year 1995–1996, consult with the Authority on the development of new management and data systems,

as well as training of personnel to use and manage the systems in

areas of budget, finance, personnel and human resources, management information services, procurement, supply management, and

other systems recommended by the Authority. Such plans shall be

consistent with, and contemporaneous to, the District of Columbia

Government’s development and implementation of a replacement

for the financial management system for the District of Columbia

Government in use on the date of enactment of this Act.

SEC. 2752. ACCESS TO FISCAL AND STAFFING DATA.

(a) IN GENERAL.—The budget, financial-accounting, personnel,

payroll, procurement, and management information systems of the

District of Columbia public schools shall be coordinated and interface with related systems of the District of Columbia Government.

(b) ACCESS.—The Board of Education shall provide read-only

access to its internal financial management systems and all other

data bases to designated staff of the Mayor, the Council, the Authority, and appropriate congressional committees.

SEC. 2753. DEVELOPMENT OF FISCAL YEAR 1997 BUDGET REQUEST.

(a) IN GENERAL.—The Board of Education shall develop its fiscal year 1997 gross operating budget and its fiscal year 1997 appropriated funds budget request in accordance with this section.

(b) FISCAL YEAR 1996 BUDGET REVISION.—Not later than 60

days after enactment of this Act, the Board of Education shall develop, approve, and submit to the Mayor, the District of Columbia

Council, the Authority, and appropriate congressional committees,

a revised fiscal year 1996 gross operating budget that reflects the

amount appropriated in the District of Columbia Appropriations

Act, 1996, and which—

(1) is broken out on the basis of appropriated funds and

nonappropriated funds, control center, responsibility center,

agency reporting code, object class, and object; and

(2) indicates by position title, grade, and agency reporting

code, all staff allocated to each District of Columbia public

school as of October 15, 1995, and indicates on an object class

basis all other-than-personal-services financial resources allocated to each school.

(c) ZERO-BASE BUDGET.—For fiscal year 1997, the Board of

Education shall build its gross operating budget and appropriated
Sec. 2754 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 214

funds request from a zero-base, starting from the local school level

through the central office level.

(d) SCHOOL-BY-SCHOOL BUDGETS.—The Board of Education’s

initial fiscal year 1997 gross operating budget and appropriated

funds budget request submitted to the Mayor, the District of Columbia Council, and the Authority shall contain school-by-school

budgets and shall also—

(1) be broken out on the basis of appropriated funds and

nonappropriated funds, control center, responsibility center,

agency reporting code, object class, and object;

(2) indicate by position title, grade, and agency reporting

code all staff budgeted for each District of Columbia public

school, and indicate on an object class basis all other-than-personal-services financial resources allocated to each school; and

(3) indicate the amount and reason for all changes made

to the initial fiscal year 1997 gross operating budget and appropriated funds request from the revised fiscal year 1996

gross operating budget required by subsection (b).

SEC. 2754. TECHNICAL AMENDMENTS.

Section 1120A of the Elementary and Secondary Education Act

of 1965 (20 U.S.C. 6322) is amended—

(1) in subsection (b)(1), by—

(A) striking ‘‘(A) Except as provided in subparagraph

(B), a State’’ and inserting ‘‘A State’’; and

(B) striking subparagraph (B); and

(2) by adding at the end thereof the following new subsection:

‘‘(d) EXCLUSION OF FUNDS.—For the purpose of complying with

subsections (b) and (c), a State or local educational agency may exclude supplemental State or local funds expended in any school attendance area or school for programs that meet the intent and purposes of this part.’’.

SEC. 2755. EVEN START FAMILY LITERACY PROGRAMS.

Part B of title I of the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 6361 et seq.) is amended—

(a) in section 1204(a) (20 U.S.C. 6364(a)), by inserting ‘‘intensive’’ after ‘‘cost of providing’’; and

(b) in section 1205(4) (20 U.S.C. 6365(4)), by inserting ‘‘,

intensive’’ after ‘‘high-quality’’.

SEC. 2756. PRESERVATION OF SCHOOL-BASED STAFF POSITIONS.

(a) RESTRICTIONS ON REDUCTIONS OF SCHOOL-BASED EMPLOYEES.—To the extent that a reduction in the number of full-time

equivalent positions for the District of Columbia public schools is

required to remain within the number of full-time equivalent positions established for the public schools in appropriations Acts, no

reductions shall be made from the full-time equivalent positions for

school-based teachers, principals, counselors, librarians, or other

school-based educational positions that were established as of the

end of fiscal year 1995, unless the Authority makes a determination based on student enrollment that—

(1) fewer school-based positions are needed to maintain established pupil-to-staff ratios; or

(2) reductions in positions for other than school-based employees are not practicable.
215 Sec. 2851 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

(b) DEFINITION.—The term ‘‘school-based educational position’’

means a position located at a District of Columbia public school or

other position providing direct support to students at such a school,

including a position for a clerical, stenographic, or secretarial employee, but not including any part-time educational aide position.

Subtitle H—Establishment and Organization of

the Commission on Consensus Reform in the

District of Columbia Public Schools

SEC. 2851. COMMISSION ON CONSENSUS REFORM IN THE DISTRICT OF

COLUMBIA PUBLIC SCHOOLS.

(a) ESTABLISHMENT.—

(1) IN GENERAL.—There is established within the District

of Columbia Government a Commission on Consensus Reform

in the District of Columbia Public Schools, consisting of 7

members to be appointed in accordance with paragraph (2).

(2) MEMBERSHIP.—The Consensus Commission shall consist of the following members:

(A) 1 member to be appointed by the President chosen

from a list of 3 proposed members submitted by the Majority Leader of the Senate.

(B) 1 member to be appointed by the President chosen

from a list of 3 proposed members submitted by the Speaker of the House of Representatives.

(C) 2 members to be appointed by the President, of

which 1 shall represent the local business community and

1 of which shall be a teacher in a District of Columbia

public school.

(D) The President of the District of Columbia Congress

of Parents and Teachers.

(E) The President of the Board of Education.

(F) The Superintendent.

(G) The Mayor and District of Columbia Council

Chairman shall each name 1 nonvoting ex officio member.

(H) The Chief of the National Guard Bureau who shall

be an ex officio member.

(3) TERMS OF SERVICE.—The members of the Consensus

Commission shall serve for a term of 3 years.

(4) VACANCIES.—Any vacancy in the membership of the

Consensus Commission shall be filled by the appointment of a

new member in the same manner as provided for the vacated

membership. A member appointed under this paragraph shall

serve the remaining term of the vacated membership.

(5) QUALIFICATIONS.—Members of the Consensus Commission appointed under subparagraphs (A), (B), and (C) of paragraph (2) shall be residents of the District of Columbia and

shall have a knowledge of public education in the District of

Columbia.

(6) CHAIR.—The Chair of the Consensus Commission shall

be chosen by the Consensus Commission from among its members, except that the President of the Board of Education and

the Superintendent shall not be eligible to serve as Chair.
Sec. 2852 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 216

(7) NO COMPENSATION FOR SERVICE.—Members of the Consensus Commission shall serve without pay, but may receive

reimbursement for any reasonable and necessary expenses incurred by reason of service on the Consensus Commission.

(b) EXECUTIVE DIRECTOR.—The Consensus Commission shall

have an Executive Director who shall be appointed by the Chair

with the consent of the Consensus Commission. The Executive Director shall be paid at a rate determined by the Consensus Commission, except that such rate may not exceed the highest rate of

pay payable for level EG–16 of the Educational Service of the District of Columbia.

(c) STAFF.—With the approval of the Chair and the Authority,

the Executive Director may appoint and fix the pay of additional

personnel as the Executive Director considers appropriate, except

that no individual appointed by the Executive Director may be paid

at a rate greater than the rate of pay for the Executive Director.

(d) SPECIAL RULE.—The Board of Education, or the Authority,

shall reprogram such funds, as the Chair of the Consensus Commission shall in writing request, subject to the approval of the Authority from amounts available to the Board of Education.

SEC. 2852. PRIMARY PURPOSE AND FINDINGS.

(a) PURPOSE.—The primary purpose of the Consensus Commission is to assist in developing a long-term reform plan that has the

support of the District of Columbia community through the participation of representatives of various critical segments of such community in helping to develop and approve the plan.

(b) FINDINGS.—The Congress finds that—

(1) experience has shown that the failure of the District of

Columbia educational system has been due more to the failure

to implement a plan than the failure to develop a plan;

(2) national studies indicate that 50 percent of secondary

school graduates lack basic literacy skills, and over 30 percent

of the 7th grade students in the District of Columbia public

schools drop out of school before graduating;

(3) standard student assessments indicate only average

performance for grade level and fail to identify individual students who lack basic skills, allowing too many students to

graduate lacking these basic skills and diminishing the worth

of a diploma;

(4) experience has shown that successful schools have good

community, parent, and business involvement;

(5) experience has shown that reducing dropout rates in

the critical middle and secondary school years requires individual student involvement and attention through such activities as arts or athletics; and

(6) experience has shown that close coordination between

educators and business persons is required to provide noncollege-bound students the skills necessary for employment,

and that personal attention is vitally important to assist each

student in developing an appropriate career path.

SEC. 2853. DUTIES AND POWERS OF THE CONSENSUS COMMISSION.

(a) PRIMARY RESPONSIBILITY.—The Board of Education and the

Superintendent shall have primary responsibility for developing
217 Sec. 2853 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

and implementing the long-term reform plan for education in the

District of Columbia.

(b) DUTIES.—The Consensus Commission shall—

(1) identify any obstacles to implementation of the longterm reform plan and suggest ways to remove such obstacles;

(2) assist in developing programs that—

(A) ensure every student in a District of Columbia

public school achieves basic literacy skills;

(B) ensure every such student possesses the knowledge and skills necessary to think critically and communicate effectively by the completion of grade 8; and

(C) lower the dropout rate in the District of Columbia

public schools;

(3) assist in developing districtwide assessments, including

individual assessments, that identify District of Columbia public school students who lack basic literacy skills, with particular attention being given to grade 4 and the middle school

years, and establish procedures to ensure that a teacher is

made accountable for the performance of every such student in

such teacher’s class;

(4) make recommendations to improve community, parent,

and business involvement in District of Columbia public

schools and public charter schools;

(5) assess opportunities in the District of Columbia to increase individual student involvement and attention through

such activities as arts or athletics, and make recommendations

on how to increase such involvement; and

(6) assist in the establishment of procedures that ensure

every District of Columbia public school student is provided the

skills necessary for employment, including the development of

individual career paths.

(c) POWERS.—The Consensus Commission shall have the following powers:

(1) To monitor and comment on the development and implementation of the long-term reform plan.

(2) To exercise its authority, as provided in this subtitle,

as necessary to facilitate implementation of the long-term reform plan.

(3) To review and comment on the budgets of the Board of

Education, the District of Columbia public schools and public

charter schools.

(4) To recommend rules concerning the management and

direction of the Board of Education that address obstacles to

the development or implementation of the long-term reform

plan.

(5) To review and comment on the core curriculum for kindergarten through grade 12 developed under subtitle C.

(6) To review and comment on a core curriculum for prekindergarten, vocational and technical training, and adult education.

(7) To review and comment on all other educational programs carried out by the Board of Education and public charter schools.
Sec. 2854 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995 218

(8) To review and comment on the districtwide assessments for measuring student achievement in the core curriculum developed under subtitle C.

(9) To review and comment on the model professional development programs for teachers using the core curriculum developed under subtitle C.

(d) LIMITATIONS.— (1) IN GENERAL.—Except as otherwise provided in this subtitle, the Consensus Commission shall have no powers to involve itself in the management or operation of the Board of

Education with respect to the implementation of the long-term

reform plan.

SEC. 2854. IMPROVING ORDER AND DISCIPLINE.

(a) COMMUNITY SERVICE REQUIREMENT FOR SUSPENDED STU- DENTS.—(1) IN GENERAL.—Any student suspended from classes at a

District of Columbia public school who is required to serve the

suspension outside the school shall perform community service

for the period of suspension. The community service required

by this subsection shall be subject to rules and regulations promulgated by the Mayor.

(2) EFFECTIVE DATE.—This subsection shall take effect on

the first day of the 1996–1997 academic year.

(b) EXPIRATION DATE.—This section, and sections 2101(b)(1)(K)

and 2851(a)(2)(H), shall cease to be effective on the last day of the

1997–1998 academic year.

(c) REPORT.—The Consensus Commission shall study the effectiveness of the policies implemented pursuant to this section in improving order and discipline in District of Columbia public schools

and report its findings to the appropriate congressional committees

not later than 60 days prior to the last day of the 1997–1998 academic year.

SEC. 2855. EDUCATIONAL PERFORMANCE AUDITS.

(a) IN GENERAL.—The Consensus Commission may examine

and request the Inspector General of the District of Columbia or

the Authority to audit the records of the Board of Education to ensure, monitor, and evaluate the performance of the Board of Education with respect to compliance with the long-term reform plan

and such plan’s overall educational achievement. The Consensus

Commission shall conduct an annual review of the educational performance of the Board of Education with respect to meeting the

goals of such plan for such year. The Board of Education shall cooperate and assist in the review or audit as requested by the Consensus Commission.

(b) AUDIT.—The Consensus Commission may examine and request the Inspector General of the District of Columbia or the Authority to audit the records of any public charter school to assure,

monitor, and evaluate the performance of the public charter school

with respect to the content standards and districtwide assessments

described in section 2311(b). The Consensus Commission shall receive a copy of each public charter school’s annual report.

SEC. 2856. INVESTIGATIVE POWERS.

The Consensus Commission may investigate any action or activity which may hinder the progress of any part of the long-term
219 Sec. 2901 DISTRICT OF COLUMBIA SCHOOL REFORM ACT OF 1995

reform plan. The Board of Education shall cooperate and assist the

Consensus Commission in any investigation. Reports of the findings of any such investigation shall be provided to the Board of

Education, the Superintendent, the Mayor, the District of Columbia

Council, the Authority, and the appropriate congressional committees.

SEC. 2857. RECOMMENDATIONS OF THE CONSENSUS COMMISSION.

(a) IN GENERAL.—The Consensus Commission may at any time

submit recommendations to the Board of Education, the Mayor, the

District of Columbia Council, the Authority, the Board of Trustees

of any public charter school and the Congress with respect to actions the District of Columbia Government or the Federal Government should take to ensure implementation of the long-term reform

plan.

(b) AUTHORITY ACTIONS.—Pursuant to the District of Columbia

Financial Responsibility and Management Assistance Act of 1995

or upon the recommendation of the Consensus Commission, the

Authority may take whatever actions the Authority deems necessary to ensure the implementation of the long-term reform plan.

SEC. 2858. EXPIRATION DATE.

Except as otherwise provided in this subtitle, this subtitle shall

be effective during the period beginning on the date of enactment

of this Act and ending 7 years after such date.

Subtitle I—Parent Attendance at Parent-Teacher

Conferences

SEC. 2901. POLICY.

Notwithstanding any other provision of law, the Mayor is authorized to develop and implement a policy encouraging all residents of the District of Columbia with children attending a District

of Columbia public school to attend and participate in at least one

parent-teacher conference every 90 days during the academic year.

221

NATIONAL CAPITAL REVITALIZATION AND SELFGOVERNMENT IMPROVEMENT ACT OF 1997

223

NATIONAL CAPITAL REVITALIZATION AND SELFGOVERNMENT IMPROVEMENT ACT OF 1997

Title XI of the Act to provide for reconciliation pursuant to subsections

(b)(1) and (c) of section 105 of the concurrent resolution on the budget

for fiscal year 1998 (105–33; 111 Stat. 251)

TITLE XI—DISTRICT OF COLUMBIA

REVITALIZATION

SECTION 11000. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This title may be cited as the ‘‘National

Capital Revitalization and Self-Government Improvement Act of

1997’’.

(b) TABLE OF CONTENTS.—The table of contents of this title is

as follows:

Sec. 11000. Short title; table of contents.

Subtitle A—District of Columbia Retirement Funds

CHAPTER 1—SHORT TITLE; FINDINGS; DEFINITIONS

Sec. 11001. Short title.

Sec. 11002. Findings and declaration of policy.

Sec. 11003. Definitions.

CHAPTER 2—FEDERAL BENEFIT PAYMENTS UNDER DISTRICT RETIREMENT PROGRAMS

Sec. 11011. Obligation of Federal government to make benefit payments.

Sec. 11012. Federal benefit payments described.

Sec. 11013. Establishment of single annual cost-of-living adjustment under District

Retirement Program.

CHAPTER 3—DETERMINATIONS AND REVIEW OF ELIGIBILITY AND PAYMENTS;

INFORMATION SHARING

Sec. 11021. Determination of eligibility for and amount of Federal benefit payments

made by Trustee.

Sec. 11022. Procedures for resolving claims arising from denied benefit payments.

Sec. 11023. Transfer of and access to records of District Government.

Sec. 11024. Federal information sharing for verification of benefit determinations.

CHAPTER 4—DISTRICT OF COLUMBIA FEDERAL PENSION LIABILITY TRUST FUND

Sec. 11031. Creation of Trust Fund.

Sec. 11032. Uses of amounts in Trust Fund.

Sec. 11033. Transfer of assets and obligations of District Retirement Funds.

Sec. 11034. Treatment of Trust Fund under certain laws.

Sec. 11035. Administration through Trustee.

CHAPTER 5—RESPONSIBILITIES OF DISTRICT GOVERNMENT

Sec. 11041. Interim administration.

Sec. 11042. Replacement plan.

CHAPTER 6—FINANCING OF BENEFIT PAYMENTS AFTER DEPLETION OF TRUST FUND

Sec. 11051. Creation of Federal Supplemental Fund.
Sec. 11000 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 224

1Public Law 106–1 (113 Stat. 3) repealed subtitle B without making a conforming amendment

to the table of contents.

Sec. 11052. Uses of amounts in Fund.

Sec. 11053. Determination of annual payment into Federal Supplemental Fund.

Sec. 11054. Determination of methodology for making payments.

Sec. 11055. Special requirements upon discontinuation of Trust Fund.

CHAPTER 7—REPORTS

Sec. 11061. Annual valuations and reports by enrolled actuary.

Sec. 11062. Reports by Comptroller General.

CHAPTER 8—JUDICIAL ENFORCEMENT

Sec. 11071. Judicial review.

Sec. 11072. Jurisdiction and venue.

Sec. 11073. Statute of limitations.

Sec. 11074. Treatment of misappropriation of fund amounts as Federal crime.

CHAPTER 9—MISCELLANEOUS

Sec. 11081. Coordination between Secretary, Trustee, and District Government.

Sec. 11082. Study of alternatives for financing Federal obligations.

Sec. 11083. Issuance of regulations by Secretary.

Sec. 11084. Effect on Reform Act and other laws.

Sec. 11085. Reference to new Federal program for retirement of judges of District

of Columbia courts.

Sec. 11086. Full faith and credit.

Sec. 11087. Severability of provisions.

Subtitle B—Management Reform Plans 1

Sec. 11101. Short title.

Sec. 11102. Management reform plans for District Government.

Sec. 11103. Procedures for development of plans.

Sec. 11104. Implementation of plans.

Sec. 11105. Reform of powers and duties of department heads.

Sec. 11106. No effect on powers of Financial Responsibility and Management Assistance Authority.

Subtitle C—Criminal Justice

CHAPTER 1—CORRECTIONS

Sec. 11201. Bureau of Prisons.

Sec. 11202. Corrections Trustee.

Sec. 11203. Priority consideration for employees of the District of Columbia.

Sec. 11204. Amendments related to persons with a mental disease or defect.

Sec. 11205. Liability for and litigation authority of Corrections Trustee.

Sec. 11206. Permitting expenditure of funds to carry out certain sewer agreement.

CHAPTER 2—SENTENCING

Sec. 11211. Truth-in-Sentencing Commission.

Sec. 11212. General duties, powers, and goals of Commission.

Sec. 11213. Data collection.

Sec. 11214. Enactment of amendments to District of Columbia Code.

CHAPTER 3—OFFENDER SUPERVISION AND PAROLE

Sec. 11231. Parole.

Sec. 11232. Pretrial Services, Parole, Adult Probation and Offender Supervision

Trustee.

Sec. 11233. Court Services and Offender Supervision Agency.

Sec. 11234. Authorization of appropriations.

CHAPTER 4—DISTRICT OF COLUMBIA COURTS

SUBCHAPTER A—TRANSFER OF ADMINISTRATION AND FINANCING OF COURTS TO

FEDERAL GOVERNMENT

Sec. 11241. Authorization of appropriations.

Sec. 11242. Administration of courts under District of Columbia Code.

Sec. 11243. Budgeting and financing requirements for courts under Home Rule Act.
225 Sec. 11000 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

2Section 11272 was repealed by section 7(d) of the District of Columbia Courts and Justice

Technical Corrections Act of 1998 (Public Law 105–274, 112 Stat. 2427, Oct. 21, 1998) without

making a conforming amendment to the table of sections.

Sec. 11244. Auditing of accounts of court system.

Sec. 11245. Miscellaneous budgeting and financing requirements for courts under

District law.

Sec. 11246. Other provisions relating to administration of District of Columbia

courts.

SUBCHAPTER B—JUDICIAL RETIREMENT PROGRAM

Sec. 11251. Judicial Retirement and Survivors Annuity Fund.

Sec. 11252. Termination of current fund and program.

Sec. 11253. Conforming amendments.

SUBCHAPTER C—MISCELLANEOUS CONFORMING AND ADMINISTRATIVE PROVISIONS

Sec. 11261. Treatment of courts under miscellaneous District laws.

Sec. 11262. Representation of indigents in criminal cases.

CHAPTER 5—PRETRIAL SERVICES AGENCY AND PUBLIC DEFENDER SERVICE

Sec. 11271. Amendments affecting Pretrial Services Agency.

Sec. 11272. Amendments affecting Public Defender Service.2

CHAPTER 6—MISCELLANEOUS PROVISIONS

Sec. 11281. Technical assistance and research.

Sec. 11282. Exemption from personnel and budget ceilings for Trustees and related

agencies.

Subtitle D—Privatization of Tax Collection and Administration

Sec. 11301. Findings.

Sec. 11302. Authorizing Chief Financial Officer to privatize tax administration and

collection.

Subtitle E—Financing of District of Columbia Accumulated Deficit

Sec. 11401. Findings.

Sec. 11402. Authorization for intermediate-term advances of funds by the Secretary

of the Treasury to liquidate the accumulated general fund deficit of the

District of Columbia.

Sec. 11403. Conforming amendments.

Sec. 11404. Technical corrections.

Sec. 11405. Authorization for issuance of general obligation bonds by the District

of Columbia to finance or refund its accumulated general fund deficit.

Subtitle F—District of Columbia Bond Financing Improvements

Sec. 11501. Short title.

Sec. 11502. Findings.

Sec. 11503. Amendment to Section 462 (relating to contents of borrowing legislation

and elections on issuing general obligation bonds).

Sec. 11504. Amendment to Section 466 (relating to public or negotiated sale of general obligation bonds).

Sec. 11505. Amendment to Section 467 (relating to authority to create security interests in District revenues).

Sec. 11506. Amendment to Section 472 (relating to borrowing in anticipation of revenues).

Sec. 11507. Addition of new Section 475 (relating to general obligation bond anticipation notes).

Sec. 11508. Amendment to Section 490 (relating to revenue bonds and other obligations).

Sec. 11509. Conforming amendment.

Subtitle G—District of Columbia Government Budget

Sec. 11601. Elimination of the annual Federal payment to the District of Columbia.

Sec. 11602. Requirement that the District of Columbia balance its budget in FY

1998.

Sec. 11603. Permitting expedited submission and approval of consensus budget and

financial plan.

Sec. 11604. Increase in maximum amount of permitted District borrowing.
Sec. 11001 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 226

3Section 11715 was repealed by § 157(f) of the District of Columbia Appropriations Act, 1998

(Public Law 105–100, 111 Stat. 2187, Nov. 19, 1997) without making a conforming amendment

to the table of contents.

Subtitle H—Miscellaneous Provisions

CHAPTER 1—REGULATORY REFORM IN THE DISTRICT OF COLUMBIA

Sec. 11701. Review and revision of regulations and permit and application processes.

Sec. 11702. Repeal of Clean Air Compliance Fee Act of 1994.

Sec. 11703. Repeal requirement for Congressional authorization of certain mergers

involving District of Columbia public utility corporations.

Sec. 11704. Exemption of certain contracts from Council review.

CHAPTER 2—OTHER MISCELLANEOUS PROVISIONS

Sec. 11711. Revisions to Financial Responsibility and Management Assistance Act.

Sec. 11712. Cooperative agreements between Federal agencies and Metropolitan

Police Department.

Sec. 11713. Permitting garnishment of wages of officers and employees of District

of Columbia government.

Sec. 11714. Permitting excess appropriations by Water and Sewer Authority for

capital projects.

Sec. 11715. Requiring certain Federal officials to provide notice before carrying out

activities affecting real property located in District of Columbia.3

Sec. 11716. Repeal term of deed of conveyance to certain hospital.

Sec. 11717. Short title of Home Rule Act.

CHAPTER 3—EFFECTIVE DATE; GENERAL PROVISIONS

Sec. 11721. Effective date.

Sec. 11722. Technical assistance.

Sec. 11723. Liability.

Subtitle A—District of Columbia

Retirement Funds

CHAPTER 1—SHORT TITLE; FINDINGS; DEFINITIONS

SEC. 11001. SHORT TITLE.

This subtitle may be cited as the ‘‘District of Columbia Retirement Protection Act of 1997’’.

SEC. 11002. FINDINGS AND DECLARATION OF POLICY.

(a) FINDINGS.—The Congress finds that—

(1) State and municipal retirement programs should be

funded on an actuarially sound basis;

(2) the retirement programs for the police officers and firefighters, teachers and judges of the District of Columbia had

significant unfunded liabilities totaling approximately

$1,900,000,000 when the Federal government transferred those

programs to the District of Columbia, and those liabilities have

since increased to nearly $4,800,000,000, an increase which is

almost entirely attributable to the accumulation of interest on

the value which existed at the time of transfer;

(3) the District of Columbia has fully met its financial obligations under the District of Columbia Retirement Reform Act

of 1979 (Public Law 96–122);

(4) the growth of the unfunded liabilities of the three pension funds listed above did not occur because of any action

taken or any failure to act that lay within the power of the
227 Sec. 11003 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

District of Columbia government or the District of Columbia

Retirement Board;

(5) the presence of the unfunded pension liability is having

and will continue to have a negative impact on the District of

Columbia’s credit rating as it is a legal obligation and the total

unfunded liability exceeds the total General Obligation debt of

the District, and the costs associated with this liability are a

contributing cause of the District’s ongoing financial crisis;

(6) the obligations of the District associated with these

pension programs in fiscal year 1997 represents nearly 10 percent of the District’s revenue;

(7) the annual Federal contribution toward these costs

under the District of Columbia Retirement Reform Act has remained $52,000,000;

(8) if the unfunded pension liability situation is not resolved, in 2004 the District of Columbia would be responsible

for annual costs exceeding $800,000,000, a figure which would

be impossible to meet without catastrophic impact on the District government’s resources and programs;

(9) the financial resources of the District of Columbia are

not adequate to discharge the unfunded liabilities of the retirement programs; and

(10) the level of benefits and funding of the current retirement programs were authorized by various Acts of Congress.

(b) POLICY.—It is the policy of this subtitle—

(1) to relieve the District of Columbia government of the

responsibility for the unfunded pension liabilities transferred

to it by the Federal government;

(2) for the Federal government to assume the legal responsibility for paying certain pension benefits (including certain

unfunded pension liabilities which existed as of the day prior

to introduction of this legislation) for the retirement plans of

teachers, police, and firefighters;

(3) to provide for a responsible Federal system for payment

of benefits accrued prior to the date of introduction of this legislation; and

(4) to require the establishment of replacement plans by

the District of Columbia government for the current retirement

plans for teachers, and police and firefighters.

SEC. 11003. DEFINITIONS.

For purposes of this subtitle, the following definitions shall

apply:

(1) The term ‘‘contract’’ means the contract under section

11035 between the Secretary and the Trustee, and includes

any agreement with a department, agency, or instrumentality

of the United States entered into under that section.

(2) The term ‘‘covered District employee’’ means a teacher

of the District of Columbia public schools, or a member of the

Metropolitan Police Force or the Fire Department of the District of Columbia, as defined under the District Retirement

Program.

(3) The term ‘‘District Government’’ means any entity

treated as part of the District government under section 305(5)

of the District of Columbia Financial Responsibility and Man-
Sec. 11011 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 228

agement Assistance Act of 1995, including the District of Columbia Retirement Board (as defined in section 102(5) of the

Reform Act).

(4) The term ‘‘District Retirement Fund’’ means the District of Columbia Police Officers and Fire Fighters Retirement

Fund and the District of Columbia Teachers Retirement Fund,

as defined in the Reform Act.

(5) The term ‘‘District Retirement Program’’ means any of

the retirement programs for teachers and members of the Metropolitan Police Force and Fire Department, as described in

section 102(7) of the Reform Act as in effect on the day before

the freeze date (except as provided under section 11012(e) and

as amended by section 11013).

(6) The term ‘‘enrolled actuary’’ means the enrolled actuary

engaged by the Trustee under section 11061(a).

(7) The term ‘‘Federal benefit payment’’ means a payment

described in section 11012.

(8) The term ‘‘Federal Supplemental Fund’’ means the Federal Supplemental District of Columbia Pension Fund created

under section 11051.

(9) The term ‘‘freeze date’’ means June 30, 1997.

(10) The term ‘‘person’’ means an individual; partnership;

joint venture; corporation; mutual company; joint-stock company; trust; estate; unincorporated organization; association;

employee organization; or department, agency, or instrumentality of the United States.

(11) The term ‘‘Reform Act’’ means the District of Columbia Retirement Reform Act (Public Law 96–122).

(12) The term ‘‘replacement plan’’ means the plan described in section 11042.

(13) The term ‘‘replacement plan adoption date’’ means the

date upon which the legislation establishing the replacement

plan becomes effective, or the first day after the expiration of

the 1-year period which begins on the date of the enactment

of this Act, whichever occurs first.

(14) The term ‘‘Trust Fund’’ means the District of Columbia Federal Pension Liability Trust Fund established under

section 11031.

(15) The term ‘‘Secretary’’ means the Secretary of the

Treasury or the Secretary’s designee.

(16) The term ‘‘Trustee’’ means the person or persons selected by the Secretary under section 11035.

CHAPTER 2—FEDERAL BENEFIT PAYMENTS UNDER

DISTRICT RETIREMENT PROGRAMS

SEC. 11011. OBLIGATION OF FEDERAL GOVERNMENT TO MAKE BENEFIT PAYMENTS.

(a) IN GENERAL.—In accordance with the provisions of this subtitle, the Federal Government shall make Federal benefit payments

associated with the pension plans for police officers, firefighters,

and teachers of the District of Columbia.

(b) NO REVERSION OF FEDERAL RESPONSIBILITY TO DISTRICT.—

At no point after the effective date of this subtitle may the responsibility or any part thereof assigned to the Federal Government
229 Sec. 11012 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

under subsection (a) for making Federal benefit payments revert to

the District of Columbia.

SEC. 11012. FEDERAL BENEFIT PAYMENTS DESCRIBED.

(a) IN GENERAL.—Subject to the succeeding provisions of this

subtitle, a ‘‘Federal benefit payment’’ is any benefit payment to

which an individual is entitled under a District Retirement Program, in such amount and under such terms and conditions as may

apply under such Program.

(b) TREATMENT OF SERVICE OCCURRING AFTER FREEZE DATE.—

Service after the freeze date shall not be credited for purposes of

determining the amount of any Federal benefit payment. Nothing

in this subsection shall be construed to affect the crediting of such

service for any other purpose under the District Retirement Program.

(c) SPECIAL RULE REGARDING DISABILITY BENEFITS.—To the extent that any portion of a benefit payment to which an individual

is entitled under a District Retirement Program is based on a determination of disability made by the District Government or the

Trustee after the freeze date, the Federal benefit payment determined with respect to the individual shall be an amount equal to

the deferred retirement benefit or normal retirement benefit the individual would receive if the individual left service on the day before the commencement of disability retirement benefits.

(d) SPECIAL RULE REGARDING CERTAIN DEATH BENEFITS.—

(1) IN GENERAL.—In the case of a benefit payment to which

an individual is entitled under a District Retirement Program

which is payable on the death of a covered District employee

or former covered District employee and which is not determined by the length of service of the employee or former employee, the Federal benefit payment determined with respect to

the individual shall be equal to the pre-freeze date percentage

of the amount otherwise payable.

(2) PRE-FREEZE DATE PERCENTAGE DEFINED.—In paragraph

(1), the ‘‘pre-freeze date percentage’’ with respect to a covered

District employee or former covered District employee is the

amount (expressed as a percentage) equal to the quotient of—

(A) the number of months of the covered District employee’s or former covered District employee’s service prior

to the freeze date; divided by

(B) the total number of months of the covered District

employee’s or former covered District employee’s service.

(e) TREATMENT OF INCREASES IN CERTAIN POLICE SERVICE LON- GEVITY PAYMENTS.—For purposes of subsection (a), in determining

the amount of a Federal benefit payment made to an officer or

member of the Metropolitan Police Department, the benefit payment to which the officer or member is entitled under the District

Retirement Program shall include any amounts which would have

been included in the benefit payment under such Program if the

amendments made by the Police Recruiting and Retention Enhancement Amendment Act of 1999 had taken effect prior to the

freeze date. The Secretary of the Treasury is authorized to estimate

the additional compensation for service longevity for purposes of

determining the amount of a Federal benefit payment for annuitants who retire on or after August 29, 1972, and on or before De-
Sec. 11013 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 230

cember 31, 2001, and to make Federal benefit payments based

upon such estimates.

SEC. 11013. ESTABLISHMENT OF SINGLE ANNUAL COST-OF-LIVING ADJUSTMENT UNDER DISTRICT RETIREMENT PROGRAM.

(a) PROGRAM FOR POLICE AND FIRE FIGHTERS.—Subsection (m)

of the Policemen and Firemen’s Retirement and Disability Act (DC

Code, sec. 4–624) is amended—

(1) in paragraph (2), by striking ‘‘the Mayor shall’’ and all

that follows and inserting the following: ‘‘on January 1 of each

year (or within a reasonable time thereafter), the Mayor shall

determine the per centum change in the price index for the

preceding year by determining the difference between the

index published for December of the preceding year and the

index published for December of the second preceding year.’’;

and

(2) by amending paragraph (3) to read as follows:

‘‘(3)(A) If (in accordance with paragraph (2)) the Mayor determines in a year (beginning with 1999) that the per centum change

in the price index for the preceding year indicates a rise in the

price index, each annuity having a commencing date on or before

March 1 of the year shall, effective March 1 of the year, be increased by an amount equal to—

‘‘(i) in the case of an annuity having a commencing date

on or before March 1 of such preceding year, the per centum

change computed under paragraph (2), adjusted to the nearest

1⁄10 of 1 per centum; or

‘‘(ii) in the case of an annuity having a commencing date

after March 1 of such preceding year, a pro rata increase equal

to the product of—

‘‘(I) 1⁄12 of the per centum change computed under

paragraph (2), multiplied by

‘‘(II) the number of months (not to exceed 12 months,

counting any portion of a month as an entire month) for

which the annuity was payable before the effective date of

the increase,

adjusted to the nearest 1⁄10 of 1 per centum.

‘‘(B) On January 1, 1998 (or within a reasonable time thereafter), the Mayor shall determine the per centum change in the

price index published for December 1997 over the price index published for June 1997. If such per centum change indicates a rise

in the price index, effective March 1, 1998—

‘‘(i) each annuity having a commencing date on or before

September 1, 1997, shall be increased by an amount equal to

such per centum change, adjusted to the nearest 1⁄10 of 1 per

centum; and

‘‘(ii) each annuity having a commencing date after September 1, 1997, and on or before March 1, 1998, shall be increased by a pro rata increase equal to the product of—

‘‘(I) 1⁄6 of such per centum change, multiplied by

‘‘(II) the number of months (not to exceed 6 months,

counting any portion of a month as an entire month) for

which the annuity was payable before the effective date of

the increase,

adjusted to the nearest 1⁄10 of 1 per centum.’’.
231 Sec. 11013 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

(b) PROGRAM FOR TEACHERS.—Section 21(b) of the Act entitled

‘‘An Act for the retirement of public-school teachers in the District

of Columbia’’, approved August 7, 1946 (DC Code, sec. 31–1241(b))

is amended—

(1) in paragraph (1), by striking ‘‘The Mayor shall—’’ and

all that follows and inserting the following: ‘‘On January 1 of

each year (or within a reasonable time thereafter), the Mayor

shall determine the per centum change in the price index for

the preceding year by determining the difference between the

index published for December of the preceding year and the

index published for December of the second preceding year.’’;

and

(2) by amending paragraph (2) to read as follows:

‘‘(2)(A) If (in accordance with paragraph (1)) the Mayor determines in a year (beginning with 1999) that the per centum change

in the price index for the preceding year indicates a rise in the

price index, each annuity having a commencing date on or before

March 1 of the year shall, effective March 1 of the year, be increased by an amount equal to—

‘‘(i) in the case of an annuity having a commencing date

on or before March 1 of such preceding year, the per centum

change computed under paragraph (1), adjusted to the nearest

1⁄10 of 1 per centum; or

‘‘(ii) in the case of an annuity having a commencing date

after March 1 of such preceding year, a pro rata increase equal

to the product of—

‘‘(I) 1⁄12 of the per centum change computed under

paragraph (1), multiplied by

‘‘(II) the number of months (not to exceed 12 months,

counting any portion of a month as an entire month) for

which the annuity was payable before the effective date of

the increase,

adjusted to the nearest 1⁄10 of 1 per centum.

‘‘(B) On January 1, 1998 (or within a reasonable time thereafter), the Mayor shall determine the per centum change in the

price index published for December 1997 over the price index published for June 1997. If such per centum change indicates a rise

in the price index, effective March 1, 1998—

‘‘(i) each annuity having a commencing date on or before

September 1, 1997, shall be increased by an amount equal to

such per centum change, adjusted to the nearest 1⁄10 of 1 per

centum; and

‘‘(ii) each annuity having a commencing date after September 1, 1997, and on or before March 1, 1998, shall be increased by a pro rata increase equal to the product of—

‘‘(I) 1⁄6 of such per centum change, multiplied by

‘‘(II) the number of months (not to exceed 6 months,

counting any portion of a month as an entire month) for

which the annuity was payable before the effective date of

the increase,

adjusted to the nearest 1⁄10 of 1 per centum.’’.
Sec. 11021 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 232

CHAPTER 3—DETERMINATIONS AND REVIEW OF

ELIGIBILITY AND PAYMENTS; INFORMATION SHARING

SEC. 11021. DETERMINATION OF ELIGIBILITY FOR AND AMOUNT OF

FEDERAL BENEFIT PAYMENTS MADE BY TRUSTEE.

Notwithstanding any provision of a District Retirement Program or any other law, rule, or regulation, the Trustee—

(1) shall determine whether an individual is eligible to receive a Federal benefit payment under this subtitle;

(2) shall determine the amount and form of an individual’s

Federal benefit payment under this subtitle; and

(3) may recoup or recover, or waive recoupment or recovery

of, any amounts paid under this subtitle as a result of errors

or omissions by the Trustee, the District Government, or any

other person.

SEC. 11022. PROCEDURES FOR RESOLVING CLAIMS ARISING FROM DENIED BENEFIT PAYMENTS.

(a) REQUIRING NOTICE AND OPPORTUNITY FOR REVIEW.—In accordance with procedures approved by the Secretary, the Trustee

shall provide to any individual whose claim for a Federal benefit

payment under this subtitle has been denied in whole or in part—

(1) adequate written notice of such denial, setting forth the

specific reasons for the denial in a manner calculated to be understood by the average participant in the District Retirement

Program; and

(2) a reasonable opportunity for a full and fair review of

the decision denying such claim.

(b) STANDARD FOR REVIEW.—Any factual determination made

by the Trustee shall be presumed correct unless rebutted by clear

and convincing evidence. The Trustee’s interpretation and construction of the benefit provisions of the District Retirement Program

and this subtitle shall be entitled to great deference.

SEC. 11023. TRANSFER OF AND ACCESS TO RECORDS OF DISTRICT

GOVERNMENT.

(a) IN GENERAL.—Within 30 days after the Secretary or the

Trustee requests, the District Government shall furnish copies of

all records, documents, information, or data the Secretary or the

Trustee deems necessary to carry out responsibilities under this

subtitle and the contract. Upon request, the District Government

shall grant the Secretary or the Trustee direct access to such information systems, records, documents, information or data as the

Secretary or Trustee requires to carry out responsibilities under

this subtitle or the contract.

(b) REPAYMENT BY DISTRICT GOVERNMENT.—The District Government shall reimburse the Trust Fund for all costs, including

benefit costs, that are attributable to errors or omissions in the

transferred records that are identified within 3 years after such

records are transferred.

SEC. 11024. FEDERAL INFORMATION SHARING FOR VERIFICATION OF

BENEFIT DETERMINATIONS.

(a) IN GENERAL.—Except with respect to taxpayer returns and

return information subject to section 6103 of the Internal Revenue

Code of 1986, the Secretary may—

(1) secure directly from any department or agency of the

United States information necessary to enable the Secretary to
233 Sec. 11024 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

verify or confirm benefit determinations under this subtitle;

and

(2) by regulation authorize the Trustee to review such information for purposes of administering this subtitle and the

contract.

(b) AMENDMENTS TO INTERNAL REVENUE CODE.—The Internal

Revenue Code of 1986 is amended as follows:

(1) In section 6103(l), as amended by section 1206(a) of the

Taxpayer Bill of Rights 2, by adding at the end the following

new paragraph:

‘‘(16) DISCLOSURE OF RETURN INFORMATION FOR PURPOSES

OF ADMINISTERING THE DISTRICT OF COLUMBIA RETIREMENT

PROTECTION ACT OF 1997.—

‘‘(A) IN GENERAL.—Upon written request available return information (including such information disclosed to

the Social Security Administration under paragraph (1) or

(5) of this subsection), relating to the amount of wage income (as defined in section 3121(a) or 3401(a)), the name,

address, and identifying number assigned under section

6109, of payors of wage income, taxpayer identity (as defined in subsection 6103(b)(6)), and the occupational status

reflected on any return filed by, or with respect to, any individual with respect to whom eligibility for, or the correct

amount of, benefits under the District of Columbia Retirement Protection Act of 1997, is sought to be determined,

shall be disclosed by the Commissioner of Social Security,

or to the extent not available from the Social Security Administration, by the Secretary, to any duly authorized officer or employee of the Department of the Treasury, or a

Trustee or any designated officer or employee of a Trustee

(as defined in the District of Columbia Retirement Protection Act of 1997), or any actuary engaged by a Trustee

under the terms of the District of Columbia Retirement

Protection Act of 1997, whose official duties require such

disclosure, solely for the purpose of, and to the extent necessary in, determining an individual’s eligibility for, or the

correct amount of, benefits under the District of Columbia

Retirement Protection Act of 1997.

‘‘(B) DISCLOSURE FOR USE IN JUDICIAL OR ADMINISTRATIVE PROCEEDINGS.—Return information disclosed to any

person under this paragraph may be disclosed in a judicial

or administrative proceeding relating to the determination

of an individual’s eligibility for, or the correct amount of,

benefits under the District of Columbia Retirement Protection Act of 1997.’’.

(2) In section 6103(a)(3), by striking ‘‘(6) or (12)’’ and inserting ‘‘(6), (12), or (16)’’;

(3) In section 6103(i)(7)(B)(i), by inserting after ‘‘(other

than an agency referred to in subparagraph (A))’’ and before

the word ‘‘for’’ the words ‘‘or by a Trustee as defined in the District of Columbia Retirement Protection Act of 1997,’’.

(4) In section 6103(p)(3)(A), by striking ‘‘or (15)’’ and inserting ‘‘(15), or (16)’’.
Sec. 11031 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 234

(5) In section 6103(p)(4) in the matter preceding subparagraph (A), by striking ‘‘or (12)’’ and inserting ‘‘(12), or (16), or

any other person described in subsection (l)(16)’’.

(6) In section 6103(p)(4)(F)(i), by striking ‘‘or (9),’’ and inserting ‘‘(9), or (16), or any other person described in subsection

(l)(16)’’.

(7) In section 6103(p)(4)(F) in the matter following clause

(iii)—

(A) by inserting after ‘‘any such agency, body or commission’’ and before the words ‘‘for the General Accounting

Office’’ the words ‘‘, including an agency or any other person described in subsection (l)(16),’’;

(B) by striking ‘‘to such agency, body, or commission’’

and inserting ‘‘to such agency, body, or commission, including an agency or any other person described in subsection

(l)(16),’’;

(C) by striking ‘‘or (12)(B)’’ and inserting ‘‘, (12)(B), or

(16)’’;

(D) by inserting after the words ‘‘any agent,’’ and before the words ‘‘this paragraph shall’’ the words ‘‘or any

person including an agent described in subsection (l)(16),’’;

(E) by inserting after the words ‘‘such agent’’ and before ‘‘(except that’’ the words ‘‘or other person’’; and

(F) by inserting after the words ‘‘an agent,’’ and before

the words ‘‘any report’’ the words ‘‘or any person including

an agent described in subsection (l)(16),’’.

(8) In section 7213(a)(2), by striking ‘‘or (15),’’ and inserting ‘‘(15), or (16)’’.

(c) CONFIDENTIALITY.—The Secretary may issue regulations

governing the confidentiality of the information obtained pursuant

to subsection (a) and the provisions of law amended by subsection

(b).

CHAPTER 4—DISTRICT OF COLUMBIA FEDERAL

PENSION LIABILITY TRUST FUND

SEC. 11031. CREATION OF TRUST FUND.

(a) ESTABLISHMENT.—There is established on the books of the

Treasury the District of Columbia Federal Pension Liability Trust

Fund, consisting of the assets transferred pursuant to section

11033 and any income earned on the investment of such assets

pursuant to subsection (b).

(b) INVESTMENT OF ASSETS.—The Trustee may invest the assets of the Trust Fund in private securities and any other form of

investment deemed appropriate by the Secretary.

SEC. 11032. USES OF AMOUNTS IN TRUST FUND.

(a) IN GENERAL.—Amounts in the Trust Fund shall be used—

(1) to make Federal benefit payments under this subtitle;

(2) subject to subsection (b)(1), to cover the reasonable and

necessary expenses of administering the Trust Fund under the

contract entered into pursuant to section 11035(b);

(3) to cover the reasonable and necessary administrative

expenses incurred by the Secretary in carrying out the Secretary’s responsibilities under this subtitle; and

(4) for such other purposes as are specified in this subtitle.
235 Sec. 11033 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

(b) SPECIAL RULES REGARDING ADMINISTRATIVE EXPENSES.— (1) BUDGETING; CERTIFICATION AND APPROVAL.—The administrative expenses of the Trust Fund shall be paid in accordance with an annual budget set forth by the Trustee which

shall be subject to certification and approval by the Secretary.

(2) USE OF DISTRICT RETIREMENT FUND FOR INTERIM AD- MINISTRATION.—The Secretary is authorized to requisition from

the District Retirement Fund such sums as are necessary to

administer the Trust Fund (including expenses described in

section 11041(b)) until assets are transferred to the Trust Fund

pursuant to section 11033.

SEC. 11033. TRANSFER OF ASSETS AND OBLIGATIONS OF DISTRICT RETIREMENT FUNDS.

(a) IN GENERAL.—As of the replacement plan adoption date, all

obligations to make Federal benefit payments and all assets of the

District Retirement Fund as of the replacement plan adoption date

(except as provided in subsections (b) and (c)) shall be transferred

to the Trust Fund.

(b) DESIGNATION OF ASSETS TO BE RETAINED BY DISTRICT RE- TIREMENT FUND.—The Secretary shall designate assets with a value of $1.275 billion that shall not be transferred from the District Retirement Fund under subsection (a). The Secretary’s designation and valuation of the assets shall be final and binding.

(c) EXCEPTION FOR CERTAIN EMPLOYEE CONTRIBUTIONS.— (1) IN GENERAL.—Subsection (a) shall not apply to assets

of the District Retirement Fund consisting of any employee

contributions deducted and withheld after the freeze date or

any interest thereon (computed at a rate and in a manner determined by the Secretary).

(2) EMPLOYEE CONTRIBUTIONS DEFINED.—In paragraph (1),

the term ‘‘employee contributions’’ means amounts deducted

and withheld from the salaries of covered District employees

and paid to the District Retirement Fund (and, in the case of

teachers, amounts of additional deposits paid to the District

Retirement Fund), pursuant to the District Retirement Program.

(d) RESPONSIBILITIES OF DISTRICT GOVERNMENT.— (1) IN GENERAL.—The transfer of assets from the District

Retirement Fund under this section shall be made in accordance with the direction of the Secretary. The District Government shall promptly take all steps, and execute all documents,

that the Secretary deems necessary to effect the transfer.

(2) FINAL RECONCILIATION OF ACCOUNTS.—As soon as practicable after the replacement plan adoption date, the District

Government shall furnish the Trustee a final reconciliation of

accounts in connection with the transfer of assets and obligations to the Trust Fund. The allocation of assets under this

section shall be adjusted in accordance with this reconciliation.

(e) METHODOLOGY FOR DESIGNATING ASSETS.—

(1) IN GENERAL.—In carrying out subsection (b), the Secretary may develop and implement a methodology for designating assets after the replacement plan adoption date that

takes into account the value of the District Retirement Fund

as of the replacement plan adoption date and the proportion of

such value represented by $1.275 billion, together with the in-
Sec. 11034 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 236

come (including returns on investments) earned on the assets

of and withdrawals from and deposits to the Fund during the

period between such date and the date on which the Secretary

designates assets under subsection (b). In implementing a

methodology under the previous sentence, the Secretary shall

not be required to determine the value of designated assets as

of the replacement plan adoption date. Nothing in this paragraph may be deemed to effect the entitlement of the District

Retirement Fund to income (including returns on investments)

earned after the replacement plan adoption date on assets designated for retention by the Fund.

(2) EMPLOYEE CONTRIBUTIONS; JUDICIAL RETIREMENT AND

SURVIVORS ANNUITY FUND.—The Secretary may develop and

implement a methodology comparable to the methodology described in paragraph (1) in carrying out the requirements of

subsection (c) and in designating assets to be transferred to the

District of Columbia Judicial Retirement and Survivors Annuity Fund pursuant to section 124(c)(1) of the District of Columbia Retirement Reform Act (as amended by section 11252).

(3) DISCRETION OF THE SECRETARY.—The Secretary’s development and implementation of methodologies for designating

assets under this subsection shall be final and binding.

SEC. 11034. TREATMENT OF TRUST FUND UNDER CERTAIN LAWS.

(a) INTERNAL REVENUE CODE.—For purposes of the Internal

Revenue Code of 1986—

(1) the Trust Fund shall be treated as a trust described in

section 401(a) of the Code which is exempt from taxation under

section 501(a) of the Code;

(2) any transfer to or distribution from the Trust Fund

shall be treated in the same manner as a transfer to or distribution from a trust described in section 401(a) of the Code;

and

(3) the benefits provided by the Trust Fund shall be treated as benefits provided under a governmental plan maintained

by the District of Columbia.

(b) ERISA.—For purposes of the Employee Retirement Income

Security Act of 1974, the benefits provided by the Trust Fund shall

be treated as benefits provided under a governmental plan maintained by the District of Columbia.

(c) APPLICATION OF CERTAIN FUTURE AMENDMENTS TO INTERNAL REVENUE CODE.—To the extent that any provision of subpart

A of part I of subchapter D of chapter 1 of the Internal Revenue

Code of 1986 (26 U.S.C. 401 et seq.) is amended after the date of

the enactment of this Act, such provision as amended shall apply

to the Trust Fund only to the extent the Secretary determines that

application of the provision as amended is consistent with the administration of this subtitle.

SEC. 11035. ADMINISTRATION THROUGH TRUSTEE.

(a) IN GENERAL.—As soon as practicable after the enactment of

this subtitle, the Secretary shall select a Trustee to administer the

Trust Fund and otherwise carry out the responsibilities and duties

specified in this subtitle in accordance with the contract described

in subsection (b).
237 Sec. 11041 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

(b) CONTRACT.—The Secretary shall enter into a contract with

the Trustee to provide for the management, investment, control

and auditing of Trust Fund assets, the making of Federal benefit

payments under this subtitle from the Trust Fund, and such other

matters as the Secretary deems appropriate. The Secretary shall

enforce the provisions of the contract and otherwise monitor the

administration of the Trust Fund.

(c) SUBCONTRACTS.—Notwithstanding any provision of a District Retirement Program or any other law, rule, or regulation, the

Trustee may, with the approval of the Secretary, enter into one or

more subcontracts with the District Government or any person to

provide services to the Trustee in connection with its performance

of the contract. The Trustee shall monitor the performance of any

such subcontract and enforce its provisions.

(d) DETERMINATION BY THE SECRETARY.—Notwithstanding subsection (b) or any other provision of this subtitle, the Secretary may

determine, with respect to any function otherwise to be performed

by the Trustee, that in the interest of economy and efficiency such

function shall be performed by the Secretary rather than the Trustee.

(e) REPORTS.—The Trustee shall report to the Secretary, in a

form and manner and at such intervals as the Secretary may prescribe, on any matters or transactions relating to the Trust Fund,

including financial matters, as the Secretary may require.

CHAPTER 5—RESPONSIBILITIES OF DISTRICT

GOVERNMENT

SEC. 11041. INTERIM ADMINISTRATION.

(a) ADMINISTRATION OF BENEFITS UNTIL APPOINTMENT OF

TRUSTEE.—Notwithstanding chapter 2, after the enactment of this

subtitle the District Government shall continue to discharge its duties and responsibilities under the District Retirement Program

and the District Retirement Fund (as such duties and responsibilities are modified by this subtitle), including the responsibility for

Federal benefit payments, until such time as the Secretary notifies

the District Government that the Secretary has directed the Trustee to carry out the duties and responsibilities required under the

contract.

(b) REIMBURSEMENT FROM TRUST FUND.—The Secretary or the

Trustee shall, at such times during or after the period of interim

administration described in subsection (a) as are deemed appropriate by the Secretary or the Trustee reimburse the District Government for any administrative expenses incurred by the District

Government in carrying out subsection (a)—

(1) if the Secretary or the Trustee finds such expenses to

be reasonable and necessary; and

(2) to the extent that the District Government is not reimbursed for such expenses from other sources.

(c) MAKING DISTRICT RETIREMENT FUND WHOLE.—The District

Government shall reimburse the District Retirement Fund for any

benefits paid inconsistent with this subtitle from the District Retirement Fund between the freeze date and such time as the Secretary notifies the District Government that the Secretary has di-
Sec. 11042 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 238

rected the Trustee to carry out the duties and responsibilities required under the contract.

SEC. 11042. REPLACEMENT PLAN.

(a) ADOPTION BY DISTRICT GOVERNMENT.—Not later than one

year after the date of the enactment of this subtitle, the District

Government shall adopt a replacement plan for pension benefits for

covered District employees, effective as of the freeze date.

(b) REPLACEMENT PLAN IMPOSED IF DISTRICT GOVERNMENT

FAILS TO ADOPT PLAN.—If the District Government fails to adopt

a replacement plan within the period prescribed in subsection (a),

the retirement program applicable to police, firefighters, and teachers under the laws of the District of Columbia in effect as of June

1, 1997 (except as otherwise amended by this Act), including all requirements of the program regarding benefits, contributions, and

cost-of-living adjustments, shall be treated as the replacement plan

for purposes of this subtitle.

(c) NO PAYMENT OF AMOUNTS PAID AS FEDERAL BENEFIT PAY- MENT.—Notwithstanding any provision of the Reform Act or any

other law, rule, or regulation, the District Government is not required to pay any amount under any replacement plan under this

subtitle if the amount is paid as a Federal benefit payment under

this subtitle.

CHAPTER 6—FINANCING OF BENEFIT PAYMENTS AFTER

DEPLETION OF TRUST FUND

SEC. 11051. CREATION OF FEDERAL SUPPLEMENTAL FUND.

(a) ESTABLISHMENT.—There is established on the books of the

Treasury the Federal Supplemental District of Columbia Pension

Fund, which shall be administered by the Secretary and shall consist of the following assets:

(1) Amounts deposited into such Fund under the provisions

of this subtitle.

(2) Any amount otherwise appropriated to such Fund.

(3) Any income earned on the investment of the assets of

such Fund pursuant to subsection (b).

(b) INVESTMENT OF ASSETS.—The Secretary shall invest such

portion of the Federal Supplemental Fund as is not in the judgment of the Secretary required to meet current withdrawals. Such

investments shall be in public debt securities with maturities suitable to the needs of the Federal Supplemental Fund, as determined

by the Secretary, and bearing interest at rates determined by the

Secretary, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable

maturities.

(c) RECORDKEEPING FOR ACTUARIAL STATUS.—The Secretary

shall provide for the keeping of such records as are necessary for

determining the actuarial status of the Federal Supplemental

Fund.

SEC. 11052. USES OF AMOUNTS IN FUND.

Amounts in the Federal Supplemental Fund shall be used for

the accumulation of funds in order to finance obligations of the

Federal Government for benefits and necessary administrative expenses under the provisions of this subtitle, in accordance with the

methodology selected by the Secretary under section 11054(b), ex-
239 Sec. 11054 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

cept that payments from the Fund for administrative expenses may

be made only to the extent and in such amounts as are provided

in advance in appropriations acts.

SEC. 11053. DETERMINATION OF ANNUAL PAYMENT INTO FEDERAL

SUPPLEMENTAL FUND.

(a) ANNUAL AMORTIZATION AMOUNT.—At the end of each applicable fiscal year the Secretary shall promptly pay into the Federal

Supplemental Fund from the General Fund of the Treasury an

amount equal to the annual amortization amount for the year

(which may not be less than zero).

(b) ADMINISTRATIVE EXPENSES.—During each applicable fiscal

year, the Secretary shall pay into the Federal Supplemental Fund

from the General Fund of the Treasury amounts not to exceed the

covered administrative expenses for the year.

(c) DETERMINATION OF AMOUNTS.—For purposes of this section:

(1) The ‘‘original unfunded liability’’ is the amount that is

the present value as of the effective date of this Act of future

benefits payable from the Federal Supplemental Fund.

(2) The ‘‘annual amortization amount’’ is the amount determined by the enrolled actuary to be necessary to amortize in

equal annual installments (until fully amortized)—

(A) the original unfunded liability over a 30-year period;

(B) a net experience gain or loss over a 10-year period;

and

(C) any other changes in actuarial liability over a 20-

year period.

(3) The ‘‘covered administrative expenses’’ are the expenses

determined by the Secretary (on an annual basis) to be necessary to administer the Federal Supplemental Fund.

(d) TIMING.—The first applicable fiscal year under subsection

(a) is the first fiscal year that ends more than six months after the

replacement plan adoption date.

SEC. 11054. DETERMINATION OF METHODOLOGY FOR MAKING PAYMENTS.

(a) NOTICE TO PRESIDENT AND CONGRESS.—Not later than 18

months before the time that assets remaining in the Trust Fund

are projected to be insufficient for making Federal benefit payments and covering necessary administrative expenses when due,

the Secretary shall so advise the President and the Congress.

(b) SELECTION OF METHODOLOGY.—Before all available assets

of the Trust Fund have been depleted, the Secretary shall determine whether Federal benefit payments and necessary administrative expenses under this subtitle shall be made by one of the following methods:

(1) Continuation of the Trust Fund using payments from

the Federal Supplemental Fund.

(2) Discontinuation of the Trust Fund, with payments

made—

(A) by direct payment by the Secretary from the Federal Supplemental Fund; or

(B) from the Federal Supplemental Fund through another department or agency of the United States.
Sec. 11055 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 240

(c) ARRANGEMENTS BY SECRETARY.—The Secretary shall make

appropriate arrangements to implement the determinations made

in this subsection.

SEC. 11055. SPECIAL REQUIREMENTS UPON DISCONTINUATION OF

TRUST FUND.

(a) SUCCESSOR TO TRUSTEE.—If the Secretary determines that

the Trust Fund shall be discontinued after it has been depleted of

assets, the Secretary shall appoint a successor to the Trustee to administer the requirements of this subtitle, with the same powers

and subject to the same conditions as were applicable to the Trustee.

(b) CONTINUING APPLICATION OF TERMS AND CONDITIONS.—The

methodology selected by the Secretary under section 11054(b), and

the payment of benefits pursuant to such methodology, shall be

subject to the same arrangements, terms, and conditions as were

applicable under this subtitle to the Trust Fund and the benefits

paid under the Trust Fund (including provisions relating to the

treatment of the Trust Fund under certain laws).

CHAPTER 7—REPORTS

SEC. 11061. ANNUAL VALUATIONS AND REPORTS BY ENROLLED ACTUARY.

(a) DETERMINATION OF ACTUARIAL VALUATIONS.—The Trustee

shall engage an enrolled actuary (as defined in section 7701(a)(35)

of the Internal Revenue Code of 1986) who is a member of the

American Academy of Actuaries to shall perform an annual actuarial valuation (in a manner and form determined by the Secretary) of the Trust Fund and the Federal Supplemental Fund for

obligations assumed by the Federal Government under this subtitle.

(b) ANNUAL REPORT ON STATUS OF FUNDS.—The enrolled actuary shall prepare and submit to the Secretary and the Trustee an

annual report on the actuarial status of the Trust Fund and the

Federal Supplemental Fund, and shall include in the report—

(1) a projection of when assets in the Trust Fund will be

insufficient to pay benefits and necessary administrative expenses when due; and

(2) a determination of the annual payment to the Federal

Supplemental Fund under section 11053.

SEC. 11062. REPORTS BY COMPTROLLER GENERAL.

(a) IN GENERAL.—The Comptroller General is authorized to

conduct evaluations of the administration of this subtitle to ensure

that the Trust Fund and Federal Supplemental Fund are being

properly administered and shall report the findings of such evaluations to the Secretary and the Congress.

(b) ACCESS TO INFORMATION.—For the purpose of evaluations

under subsection (a) the Comptroller General, subject to section

6103 of the Internal Revenue Code of 1986, shall have access to

and the right to copy any books, accounts, records, correspondence

or other pertinent documents that are in the possession of the Secretary or the Trustee, or any contractor or subcontractor of the Secretary or the Trustee.
241 Sec. 11073 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

CHAPTER 8—JUDICIAL ENFORCEMENT

SEC. 11071. JUDICIAL REVIEW.

(a) IN GENERAL.—A civil action may be brought—

(1) by a participant or beneficiary to enforce or clarify

rights to benefits from the Trust Fund or Federal Supplemental Fund under this subtitle;

(2) by the Trustee—

(A) to enforce any claim arising (in whole or in part)

under this subtitle or the contract; or

(B) to recover benefits improperly paid from the Trust

Fund or Federal Supplemental Fund or to clarify a participant’s or beneficiary’s rights to benefits from the Trust

Fund or Federal Supplemental Fund; and

(3) by the Secretary to enforce any provision of this subtitle or the contract.

(b) TREATMENT OF TRUST FUND.—The Trust Fund may sue and

be sued as an entity.

(c) EXCLUSIVE REMEDY.—This chapter shall be the exclusive

means for bringing actions against the Trust Fund, the Trustee or

the Secretary under this subtitle.

SEC. 11072. JURISDICTION AND VENUE.

(a) IN GENERAL.—The United States District Court for the District of Columbia shall have exclusive jurisdiction and venue, regardless of the amount in controversy, of—

(1) civil actions brought by participants or beneficiaries

pursuant to this subtitle, and

(2) any other action otherwise arising (in whole or part)

under this subtitle or the contract.

(b) REVIEW BY COURT OF APPEALS.—Notwithstanding any other

provision of law, any order of the United States District Court for

the District of Columbia issued pursuant to an action described in

subsection (a) that concerns the validity or enforceability of any

provision of this subtitle or seeks injunctive relief against the Secretary or Trustee under this subtitle shall be reviewable only pursuant to a notice of appeal to the United States Court of Appeals

for the District of Columbia Circuit.

(c) REVIEW BY SUPREME COURT.—Notwithstanding any other

provision of law, review by the Supreme Court of the United States

of a decision of the Court of Appeals that is issued pursuant to subsection (b) may be had only if the petition for relief is filed within

20 calendar days after the entry of such decision.

(d) RESTRICTIONS ON DECLARATORY OR INJUNCTIVE RELIEF.—

No order of any court granting declaratory or injunctive relief

against the Secretary or the Trustee shall take effect during the

pendency of the action before such court, during the time an appeal

may be taken, or (if an appeal is taken or petition for certiorari

filed) during the period before the court has entered its final order

disposing of the action.

SEC. 11073. STATUTE OF LIMITATIONS.

(a) ACTION FOR BENEFITS.—Any civil action by an individual

with respect to a Federal benefit payment under this subtitle shall

be commenced within 180 days of a final benefit determination.
Sec. 11074 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 242

(b) ACTION FOR BREACH OF CONTRACT OR OTHER VIOLATIONS.— Except as provided in subsection (c), any civil action for breach of

the contract or any other violation of this subtitle shall be commenced within the later of—

(1) six years after the last act that constituted the alleged

breach or violation or, in the case of an omission, six years

after the last date on which the alleged breach or violation

could have been cured; or

(2) three years after the earliest date on which the plaintiff

knew or could have reasonably been expected to have known

of the act or omission on which the action is based.

(c) SPECIAL RULE FOR ACTIONS AGAINST SECRETARY.—Notwithstanding subsection (b), any action against the Secretary arising (in

whole or part) under this subtitle or the contract shall be commenced within one year of the events giving rise to the cause of

action.

SEC. 11074. TREATMENT OF MISAPPROPRIATION OF FUND AMOUNTS

AS FEDERAL CRIME.

The provisions of section 664 of title 18, United States Code

(relating to theft or embezzlement from employee benefit plans),

shall apply to the Trust Fund and the Federal Supplemental Fund.

CHAPTER 9—MISCELLANEOUS

SEC. 11081. COORDINATION BETWEEN SECRETARY, TRUSTEE, AND

DISTRICT GOVERNMENT.

The Secretary, Trustee, and District Government shall carry

out responsibilities under this subtitle and under the contract in a

manner which promotes the cost-effective and efficient administration of benefit payments under the District Retirement Programs,

and in a manner which avoids unnecessary interruptions and

delays in paying individuals the full benefits to which they are entitled under such Programs.

SEC. 11082. STUDY OF ALTERNATIVES FOR FINANCING FEDERAL OBLIGATIONS.

(a) IN GENERAL.—As soon as practicable after the date of the

enactment of this subtitle, the Secretary shall enter into a contract

with an independent consultant to conduct a study of actuarial alternatives for financing the federal obligations assumed under this

subtitle, together with an analysis of the impact of each alternative

on the federal budget. The Secretary and the District Government

shall cooperate with the consultant and shall provide direct access

to such information systems, records, documents, information, or

data as will enable the consultant to conduct the study.

(b) DEADLINE.—The contract entered into under subsection (a)

shall require the consultant to report the results of the study not

later than 12 months after the date of enactment of this Act.

(c) NO EFFECT ON FEDERAL OBLIGATIONS.—Nothing in this section may be construed to affect any obligation of the Federal Government to make payments under this subtitle.

SEC. 11083. ISSUANCE OF REGULATIONS BY SECRETARY.

The Secretary is authorized to issue regulations to implement,

interpret, administer and carry out the purposes of this subtitle,

and, in the Secretary’s discretion, those regulations may have retroactive effect.
243 Sec. 11087 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

SEC. 11084. EFFECT ON REFORM ACT AND OTHER LAWS.

(a) REFORM ACT.—

(1) IN GENERAL.—This subtitle supersedes any provision of

the Reform Act inconsistent with this subtitle and the regulations thereunder.

(2) TERMINATION OF PAYMENTS TO DISTRICT RETIREMENT

FUNDS.—Section 144 of the Reform Act (DC Code, sec. 1–724)

is amended by adding at the end the following new subsection:

‘‘(f) Notwithstanding any other provision of this Act, no Federal

payments may be made to any Fund established by this title for

any fiscal year after fiscal year 1997.’’.

(b) NO EFFECT ON TAX TREATMENT OF BENEFITS.—Except as

otherwise specifically provided, nothing in this subtitle may be construed to affect the application of any provision of the Internal Revenue Code of 1986 to any annuity or other benefit provided to or

on behalf of any individual, including any disability benefit or any

portion of a retirement benefit attributable to an individual’s disability status.

(c) NO EFFECT ON BENEFITS FOR PARK POLICE AND SECRET

SERVICE.—Nothing in this subtitle shall be deemed to alter or

amend in any way the provisions of existing law (including the Reform Act) relating to the program of annuities, other retirement

benefits, or medical benefits for members and officers, retired members and officers, and survivors thereof, of the United States Park

Police force, the United States Secret Service, or the United States

Secret Service Uniformed Division.

SEC. 11085. REFERENCE TO NEW FEDERAL PROGRAM FOR RETIREMENT OF JUDGES OF DISTRICT OF COLUMBIA COURTS.

For provisions describing the retirement program for judges

and judicial personnel of the District of Columbia, see subchapter

B of chapter 4 of subtitle C.

SEC. 11086. FULL FAITH AND CREDIT.

Federal obligations for benefits under this subtitle are backed

by the full faith and credit of the United States.

SEC. 11087. SEVERABILITY OF PROVISIONS.

If any provision of this subtitle, or the application of such provision to any person or circumstances, shall be held invalid, the remainder of this subtitle, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.
Sec. 11201 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 244

4Section 3(a) of Public Law 106–1 (113 Stat. 3) repealed subtitle B (relating to ‘‘Management

Reform Plans’’).

[Subtitle B—Repealed 4]

Subtitle C—Criminal Justice

CHAPTER 1—CORRECTIONS

SEC. 11201. BUREAU OF PRISONS.

(a) FELONS SENTENCED PURSUANT TO THE TRUTH-IN-SENTENCING REQUIREMENTS.—Not later than October 1, 2001, any person who has been sentenced to incarceration pursuant to the District of Columbia Code or the truth-in-sentencing system as described in section 11211 shall be designated by the Bureau of Prisons to a penal or correctional facility operated or contracted for by

the Bureau of Prisons, for such term of imprisonment as the court

may direct. Such persons shall be subject to any law or regulation

applicable to persons committed for violations of laws of the United

States consistent with the sentence imposed.

(b) FELONS SENTENCED PURSUANT TO THE D.C. CODE.—Notwithstanding any other provision of law, not later than December

31, 2001, the Lorton Correctional Complex shall be closed and the

felony population sentenced pursuant to the District of Columbia

Code residing at the Lorton Correctional Complex shall be transferred to a penal or correctional facility operated or contracted for

by the Bureau of Prisons. Such persons shall be subject to any law

or regulation applicable to persons committed for violations of laws

of the United States consistent with the sentence imposed, and the

Bureau of Prisons shall be responsible for the custody, care, subsistence, education, treatment and training of such persons.

(c) PRIVATIZATION.—

(1) TRANSITION OF INMATES FROM LORTON.—The Bureau of

Prisons shall house, in private contract facilities—

(A) at least 2000 District of Columbia sentenced felons

by December 31, 1999; and

(B) at least 50 percent of the District of Columbia sentenced felony population by September 30, 2003.

(2) DUTIES OF DEPUTY ATTORNEY GENERAL.—The Deputy

Attorney General shall—

(A) be responsible for overseeing Bureau of Prisons

privatization activities; and

(B) submit a report to Congress on October 1 of each

year detailing the progress and status of compliance with

privatization requirements.

(3) DUTIES OF ATTORNEY GENERAL.—The Attorney General

shall—

(A) conduct a study of correctional privatization, including a review of relevant research and related legal

issues, and comparative analysis of the cost effectiveness

and feasibility of private sector and Federal, State, and

local governmental operation of prisons and corrections

programs at all security levels; and
245 Sec. 11201 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

(B) submit a report to Congress no later than one year

after the dater of enactment of this Act.

(d) SITE ACQUISITION AND CONSTRUCTION.—In order to house

the District of Columbia felony inmate population the Bureau of

Prisons shall acquire land, construct and build new facilities at

sites selected by the Bureau of Prisons, or contract for appropriate

bed space, but no facilities may be built on the grounds of the

Lorton Reservation.

(e) NATIONAL CAPITAL PLANNING.—Notwithstanding any other

provision of law, the requirements of the National Capital Planning

Act of 1952 (40 U.S.C. 71 et seq.) shall not apply to any actions

taken by the Bureau of Prisons or its agents or employees.

(f) DEPARTMENT OF CORRECTIONS AUTHORITY.—The District of

Columbia Department of Corrections shall remain responsible for

the custody, care, subsistence, education, treatment, and training

of any person convicted of a felony offense pursuant to the District

of Columbia Code and housed at the Lorton Correctional Complex

until December 31, 2001, or the date on which the last inmate

housed at the Lorton Correctional Complex is designated by the

Bureau of Prisons, whichever is earlier.

(g) LORTON CORRECTIONAL COMPLEX.— (1) TRANSFER OF FUNCTIONS.—(A) Notwithstanding any

other provision of law, to the extent the Bureau of Prisons assumes functions of the Department of Corrections under this

subtitle, the Department is no longer responsible for such functions and the provisions of ‘‘An Act to create a Department of

Corrections in the District of Columbia’’, approved June 27,

1946 (D.C. Code 24–441, 442), that apply with respect to such

functions are no longer applicable.

(B) Contingent on the General Services Administration

(GSA) receiving the necessary appropriations to carry out the

requirements of this paragraph and subsection (g), and notwithstanding the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), not later than 60 days

after the date of the enactment of the Lorton Technical Corrections Act of 1998, any property on which the Lorton Correctional Complex is located shall be transferred to the GSA.

(C) Not later than 1 year after the date of the enactment

of the Lorton Technical Corrections Act of 1998, Fairfax County shall submit a reuse plan that complies with all requisite

approvals to the Administrator of General Services, that aims

to maximize use of the land for open space, park land, or recreation, while delineating permissible or required uses, potential

development densities, and any time limits on such development factors of the property on which the Lorton Correctional

Complex is located.

(D) Not later than 180 days after the date of the enactment of the Lorton Technical Corrections Act of 1998, the Secretary of the Interior shall notify GSA of any property it requests to be transferred to the Department of the Interior for

the purpose of a land exchange by the United States Fish and

Wildlife Service within the Commonwealth of Virginia or such

other purposes consistent with the reuse plan developed by

Fairfax County as the Secretary may request. The Administrator of General Services shall approve the Secretary’s request
Sec. 11201 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 246

to the extent that the request is consistent with the reuse plan

developed by Fairfax County and does not result in a significant reduction in the marketability or value of any remaining

property. The Administrator of General Services shall coordinate with the Secretary of the Interior to resolve any conflicts

presented by the Department of the Interior’s request and

shall transfer the property to the Department of the Interior

at no cost.

(E) Any property not transferred to the Department of the

Interior under subparagraph (D) shall be disposed of according

to paragraphs (2) and (4).

(2) TRANSFER OF LAND.—

(A) IN GENERAL.—

(i) FAIRFAX COUNTY WATER AUTHORITY.—150 acres

of parcel 106–4–001–54 located west of Ox Road (State

Route 123) on which the Lorton Correctional Complex

is located shall be transferred, without consideration,

to the Fairfax County Water Authority of Fairfax, Virginia.

(ii) FAIRFAX COUNTY PARKS AUTHORITY.—Any acres

of parcel 106–4–001–54 located west of Ox Road (State

Route 123) on which the Lorton Correctional Complex

is located not transferred under clause (i) shall be assigned to the Department of the Interior, National

Park Service, for conveyance to the Fairfax County

Parks Authority for recreational purposes pursuant to

the section 203(k)(2) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 484(k)(2)).

(B) CONDITION OF TRANSFER.—

(i) WATER SERVICES.—The United States Government shall not transfer any parcels under this paragraph unless the Fairfax County Water Authority certifies that it will continue to provide water services to

the Lorton Correctional Complex at the rate it provided water services prior to the transfer.

(ii) RESTRICTION ON TRANSFER.—No Federal agency may transfer the property under this paragraph

until the prospective recipient of the property provides

to such agency—

(I) a land description survey suitable for

transferring property under Virginia law; and

(II) any necessary surveys to determine the

presence of any hazardous substances, contaminants or pollutants.

(iii) LORTON CORRECTIONAL COMPLEX.—The

Lorton Correctional Complex shall remain available

for the District of Columbia Department of Corrections

to house District of Columbia felony inmates until the

last inmate at the Complex has been designated by

the Bureau of Prisons or until December 31, 2003,

whichever is earlier.

(C) AUTHORIZATION.—The General Services Administration and the National Park Service is authorized to expend any funds necessary to ensure that the transfer or
247 Sec. 11201 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

conveyance under subparagraph (A) complies with all applicable environmental and historic preservation laws.

(3) WATER MAINS.—Any water mains located on or across

the Lorton Correctional Complex on the date of the transfers

under paragraph (2), that are owned by the Fairfax County

Water Authority and provide water to the public, shall be permitted to remain in place, and shall be operated, maintained,

repaired, and replaced by the Fairfax County Water Authority

or a successor agency furnishing water to the public in Fairfax

County or adjacent jurisdictions, but shall not interfere with

operations of the Lorton Correctional Complex.

(4) CONDITIONS ON TRANSFER OF LORTON PROPERTY EAST

OF OX ROAD (STATE ROUTE 123).—

(A) IN GENERAL.—With respect to property east of Ox

Road (State Route 123) on which the Lorton Correctional

Complex is located, the Administrator of General Services

shall—

(i) cooperate with the District of Columbia Corrections Trustee to determine property necessary for the

Trustee to maintain the security of the Lorton Correctional Complex until its closure;

(ii) prepare a report of title, complete a property

description, provide protection and maintenance, conduct an environmental assessment of the property to

determine the extent of contamination, complete National Environmental Policy Act of 1969 (42 U.S.C.

4331 et seq.) and National Historic Preservation Act

(16 U.S.C. 470 et seq.) processes for closure and disposal of the property, and provide an estimate of the

cost for remediation and contingent on receiving the

necessary appropriations complete the remediation in

compliance with applicable Federal and State environmental laws;

(iii) develop a disposition strategy incorporating

the Fairfax County reuse plan and the Department of

the Interior’s land transfer request, and resolve conflicts between the plan and the transfer request, or between the reuse plan, the transfer request and the results of the environmental studies;

(iv) negotiate with any entity that has a lease,

agreement, memorandum of understanding, right-ofway, or easement with the District of Columbia to occupy or utilize any parcels of such property on the

date of the enactment of this title, to perfect or extend

such lease, agreement, memorandum of understanding, right-of-way, or easement;

(v) transfer any property identified for use for

open space, park land, or recreation in the Fairfax

County reuse plan to the Northern Virginia Regional

Park Authority, the Fairfax County Park Authority, or

another public entity, subject to the condition that the

recipient use the conveyed property only for open

space, park land, or recreation and that the transfer

be at fair market value considering the highest and
Sec. 11201 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 248

best use of the property to be open space, park land,

and recreation;

(vi) immediately upon completing the remediation

required under clause (ii) (but in no event later than

June 1, 2003), transfer any property located south of

Silverbrooke Road which is identified for use for educational purposes in the Fairfax County reuse plan to

the County, without consideration, subject to the condition that the County use the property only for educational purposes;

(vii) not later than 60 days after the property is

transferred to the General Services Administration,

transfer at fair market value the six-acre parcel east

of Shirley Highway on Interstate 95 to Amtrak, subject to such terms and conditions as the Administrator

determines to be in the best interest of the United

States;

(viii) dispose of any parcels not reserved by the

Department of the Interior and not otherwise addressed under this subparagraph at fair market value,

subject to such terms and conditions as the Administrator determines to be in the best interest of the

United States;

(ix) deposit any proceeds from the sale of property

on which the Lorton Correctional Complex is located

into a special fund established in the treasury for purposes of covering real property utilization and disposal

related expenses, including environmental compliance

and remediation for the Lorton Correctional Complex

until all property has been conveyed; and

(x) deposit any remaining funds in the Policy and

Operations appropriation account of the General Services Administration to be used for real property utilization and disposal activities until expended.

(B) REPORT.—Not later than 90 days after the date of

the receipt of the Fairfax County reuse plan and the Department of the Interior property transfer request by the

Administrator of General Services, the Administrator shall

report to the Committees on Appropriations and Government Reform and Oversight of the House of Representatives, and the Committees on Appropriations and Governmental Affairs of the Senate on plans to comply with the

terms of this paragraph and any estimated costs associated with such compliance.

(C) AUTHORIZATION.—There is authorized to be appropriated such sums as are necessary from the general funds

of the Treasury, to remain available until expended, to the

Policy and Operations appropriation account of the General Services Administration for the real property utilization and disposal activities in carrying out the provisions

of this title.

(5) JURISDICTION.—Any property disposed of according to

paragraphs (2) and (4) shall be under the jurisdiction of the

Commonwealth of Virginia. Any development of such property

and any property transferred to the Department of the Interior
249 Sec. 11201 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

for exchange purposes shall comply with any applicable planning and zoning requirements of Fairfax County and the Fairfax County reuse plan.

(6) MEADOWOOD FARM LAND EXCHANGE.—

(A) IN GENERAL.—If, not later than January 15, 2001,

Fairfax County, Virginia, agrees to convey fee simple title

to the property on Mason Neck in excess of 800 acres depicted on the map dated June 2000, on file in the Office

of the Director of the Bureau of Land Management, Eastern States (hereafter in this paragraph referred to as

‘‘Meadowood Farm’’) to the Secretary of the Interior, then

the Administrator of General Services shall agree to convey to Fairfax County, Virginia, fee simple title to the

property located at the Lorton Correctional Complex north

of Silverbrook Road, and consisting of more than 200 acres

identified in the Fairfax County Reuse Plan, dated July

26, 1999, as land available for residential development in

Land Units 1 and 2 (hereafter in this paragraph referred

to as the ‘‘Laurel Hill Residential Land’’), the actual exchange to occur no later than December 31, 2001.

(B) TERMS AND CONDITIONS.—(i) When Fairfax County

transfers fee simple title to Meadowood Farm to the Secretary of the Interior, the Administrator of General Services shall simultaneously transfer to the County the Laurel

Hill Residential Land.

(ii) The transfer of property to Fairfax County, Virginia, under clause (i) shall be subject to such terms and

conditions that the Administrator of General Services considers to be appropriate to protect the interests of the

United States.

(iii) Any proceeds derived from the sale of the Laurel

Hill Residential Land by Fairfax County that exceed the

County’s cost of acquiring, financing (which shall be

deemed a County cost from the time of financing of the

Meadowood Farm acquisition to the receipt of proceeds of

the sale or sales of the Laurel Hill Residential Land until

such time as the proceeds of such sale or sales exceed the

acquisition and financing costs of Meadowood Farm to the

County), preparing, and conveying Meadowood Farm and

costs incurred for improving, preparing, and conveying the

Laurel Hill Residential Land shall be remitted to the

United States and deposited into the special fund established pursuant to paragraph (4)(A)(viii).

(C) MANAGEMENT OF PROPERTY.—The property transferred to the Secretary of the Interior under this section

shall be managed by the Bureau of Land Management for

public use and recreation purposes.

(h) DISTRICT OF COLUMBIA CORRECTIONS INFORMATION COUNCIL.—

(1) ESTABLISHMENT.—There is established a council to be

known as the District of Columbia Correction Information

Council (hereafter referred to as ‘‘Council’’.

(2) MEMBERSHIP.—The Council shall be composed of 3

members appointed as follows:
Sec. 11202 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 250

(A) 2 individuals appointed by the mayor of the District of Columbia.

(B) 1 individual appointed by the Council of the District of Columbia.

(3) COMPENSATION.—Members of the Council may not receive pay, allowances, or benefits by reason of their service on

the Council.

(4) DUTIES.—The Council shall report to the Director of the

Bureau of Prisons with advice and information regarding matters affecting the District of Columbia sentenced felon population.

(i) TIMING OF INMATE TRANSFERS.—As soon as practicable after

the date of the enactment of this Act, the Director of the Bureau

of Prisons shall begin the transferring of inmates to Bureau of Prison or private contract facilities required by this section.

SEC. 11202. CORRECTIONS TRUSTEE.

(a) APPOINTMENT AND REMOVAL OF TRUSTEE.—

(1) APPOINTMENT.—Pursuant to the Federal Government’s

assumption of responsibility for persons convicted of a felony

offense under the District of Columbia Code, the Attorney General, in consultation with the Chairman of the District of Columbia Financial Responsibility and Management Assistance

Authority (hereafter in this chapter referred to as the ‘‘D.C.

Control Board’’), the Mayor of the District of Columbia, the

District of Columbia Council, and the District of Columbia judiciary, shall select a Corrections Trustee, who shall be an independent officer of the government of the District of Columbia,

to oversee financial operations of the District of Columbia Department of Corrections until the Bureau of Prisons has designated all felony offenders sentenced under the District of Columbia Code to a penal or correctional facility operated or contracted for by the Bureau of Prisons under section 11201.

(2) REMOVAL.—The Corrections Trustee may be removed

by the Mayor with the concurrence of the Attorney General.

The Attorney General shall have the authority to remove the

Corrections Trustee for misfeasance or malfeasance in office.

At the request of the Corrections Trustee, the District of Columbia Financial Responsibility and Management Assistance

Authority may exercise any of its powers and authorities on behalf of the Corrections Trustee.

(b) DUTIES OF TRUSTEE.—Beginning on the date of appointment and continuing until the felony population sentenced pursuant to the District of Columbia Code residing at the Lorton Correctional Complex is transferred to a penal or correctional facility operated or contracted for by the Bureau of Prisons, the Corrections

Trustee shall carry out the following responsibilities (notwithstanding any law of the District of Columbia to the contrary):

(1) Exercise financial oversight over the District of Columbia Department of Corrections and allocate funds as enacted in

law or as otherwise allocated, including funds for short term

improvements which are necessary for the safety and security

of staff, inmates and the community.

(2) Purchase any necessary goods or services on behalf of

the District of Columbia Department of Corrections consistent
251 Sec. 11202 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

with Federal procurement regulations as they apply to the Bureau of Prisons.

(c) FUNDING.—

(1) IN GENERAL.—Funds available for the Corrections

Trustee, staff and all necessary and appropriate operations

shall be made available to the extent provided in appropriations acts to the Corrections Trustee. Funding requests shall

be proposed by the Corrections Trustee to the President and

Congress for each Fiscal Year.

(2) REIMBURSEMENT TO BUREAU OF PRISONS.—Upon receipt

of Federal funds, the Corrections Trustee shall immediately

provide an advance reimbursement to the Bureau of Prisons of

all funds identified by the Congress for construction of new

prisons and major renovations, which shall remain available

until expended. The Bureau of Prisons shall be responsible and

accountable for determining how these funds shall be used for

renovation and construction, including type, security level, and

location of new facilities.

(3) ACCOUNTABILITY AND REPORTS.—The District of Columbia Department of Corrections and the Bureau of Prisons shall

maintain accountability for funds reimbursed from the Corrections Trustee, and shall provide expense reports by project at

the request of the Corrections Trustee.

(d) COMPENSATION AND DETAILEES.—The Corrections Trustee

shall be compensated at a rate not to exceed the basic pay payable

for Level IV of the Executive Schedule. The Corrections Trustee

may appoint and fix the pay of additional staff without regard to

the provisions of the District of Columbia Code governing appointments and salaries, without regard to the provisions of title 5,

United States Code, governing appointments in the competitive

service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to

classification and General Schedule pay rates. Upon request of the

Corrections Trustee, the head of any Federal department or agency

may, on a reimbursable or non reimbursable basis, provide services

and detail any personnel of that department or agency to the Corrections Trustee to assist in carrying out his duties.

(e) PROCUREMENT AND JUDICIAL REVIEW.—The provisions of

the District of Columbia Code governing procurement shall not

apply to the Corrections Trustee. The Corrections Trustee may

seek judicial enforcement of his authority to carry out his duties.

(f) PRESERVATION OF RETIREMENT AND CERTAIN OTHER RIGHTS

OF FEDERAL EMPLOYEES WHO BECOME EMPLOYED BY THE CORRECTIONS TRUSTEE.—

(1) IN GENERAL.—A Federal employee who, within 3 days

after separating from the Federal Government, is appointed

Corrections Trustee or becomes employed by the Corrections

Trustee—

(A) shall be treated as an employee of the Federal

Government for purposes of chapters 83, 84, 87, and 89 of

title 5 of the United States Code; and

(B) if, after serving with the Trustee, such employee

becomes reemployed by the Federal Government, shall be

entitled to credit for the full period of such individual’s
Sec. 11203 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 252

service with the Trustee, for purposes of determining the

applicable leave accrual rate.

(2) REGULATIONS.—The Office of Personnel Management

shall prescribe such regulations as may be necessary to carry

out this subsection.

SEC. 11203. PRIORITY CONSIDERATION FOR EMPLOYEES OF THE DISTRICT OF COLUMBIA.

(a) ESTABLISHMENT.—As soon as practicable after appointment,

the Bureau of Prisons, working with the Corrections Trustee, shall

establish a priority consideration program to facilitate employment

placement for employees of the District of Columbia Department of

Corrections who are scheduled to be separated from service as a result of closing the Lorton Correctional Complex.

(b) PROVISIONS.—The priority consideration program shall include provisions under which a vacant federal correctional institution position established as a result of this Act and identified for

external hiring shall not be filled by the appointment of any individual from outside of the District of Columbia Department of Corrections if there is available any interested applicant within the

District of Columbia Department of Corrections who meets all qualification and suitability requirements for Bureau of Prisons law enforcement positions, including those related to criminal history,

educational experience and level of functions, drug use, and workrelated misconduct. The priority consideration program shall also

include provisions under which an employee described in subsection (a) who has not been appointed to a Federal Bureau of Prisons law enforcement position and who applies for another Federal

position in the competitive service shall receive priority consideration and may be given a competitive service appointment noncompetitively to such a competitive service position. The Director

of the Bureau of Prisons may provide a relocation allowance to any

individual who is hired by the Director under the program established under this section for a position outside of the Washington

Metropolitan Area. Such program shall terminate one year after

the closing of the Lorton Correctional Complex.

SEC. 11204. AMENDMENTS RELATED TO PERSONS WITH A MENTAL

DISEASE OR DEFECT.

Title 18, United States Code, is amended as follows:

(1) Section 4246 is amended—

(A) in subsection (a) by inserting ‘‘in the custody of the

Bureau of Prisons’’ after ‘‘certifies that a person’’; and

(B) by adding at the end the following new subsection:

‘‘(h) DEFINITION.—As used in this chapter the term ‘‘State’’ includes the District of Columbia.’’.

(2) Section 4247(a) is amended—

(A) in paragraph (1)(D) by striking ‘‘and’’ after the

semicolon;

(B) in paragraph (2) by striking the period and inserting ‘‘; and’’; and

(C) by adding at the end the following new paragraph:

‘‘(3) ‘State’ includes the District of Columbia.’’.

(3) Section 4247(j) of title 18, United States Code, is

amended by striking ‘‘This chapter does’’ and inserting ‘‘Sections 4241, 4242, 4243, and 4244 do’’.
253 Sec. 11205 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

SEC. 11205. LIABILITY FOR AND LITIGATION AUTHORITY OF CORRECTIONS TRUSTEE.

(a) LIABILITY.—The District of Columbia shall defend any civil

action or proceeding brought in any court or other official Federal,

state, or municipal forum against the Corrections Trustee, or

against the District of Columbia or it officers, employees, or agents,

and shall assume any liability resulting from such an action or proceeding, if the action or proceeding arises from—

(1) an inmate’s confinement with the District of Columbia

Department of Corrections;

(2) the District of Columbia’s operation or management of

the buildings, facilities, or lands comprising the Lorton property; or

(3) the District of Columbia’s operations or activities occurring on any property not specifically transferred to the administrative control of the Federal Government pursuant to this

Act.

(b) LITIGATION.—

(1) CORPORATION COUNSEL.—Subject to paragraph (2), the

Corporation Counsel of the District of Columbia shall provide

litigation services to the Corrections Trustee, except that the

Trustee may instead elect, either generally or in relation to

particular cases or classes of cases, to hire necessary staff and

personnel or enter into contracts for the provision of litigation

services at the Trustee’s expense.

(2) ATTORNEY GENERAL.—

(A) IN GENERAL.—Notwithstanding paragraph (1), with

respect to any litigation involving the Corrections Trustee,

the Attorney General may—

(i) direct the litigation of the Trustee, and of the

District of Columbia on behalf of the Trustee; and

(ii) provide on a reimbursable or non-reimbursable

basis litigation services for the Trustee at the Trustee’s request or on the Attorney General’s own initiative.

(B) APPROVAL OF SETTLEMENT.—With respect to any

litigation involving the Corrections Trustee, the Trustee

may not agree to any settlement involving any form of equitable relief without the approval of the Attorney General. The Trustee shall provide to the Attorney General

such notice and reports concerning litigation as the Attorney General may direct.

(C) DISCRETION.—Any decision to exercise any authority of the Attorney General under this subsection shall be

in the sole discretion of the Attorney General and shall not

be reviewable in any court.

(c) LIMITATIONS.—Nothing in this section shall be construed—

(1) as a waiver of sovereign immunity, or as limiting any

other defense or immunity that would otherwise be available

to the United States, the District of Columbia, their agencies,

officers, employees, or agents; or

(2) to obligate the District of Columbia to represent or indemnify the Corrections Trustee or any officer, employee, or

agent where the Trustee (or any person employed by or acting
Sec. 11206 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 254

under the authority of the Trustee) acts beyond the scope of his

authority.

SEC. 11206. PERMITTING EXPENDITURE OF FUNDS TO CARRY OUT

CERTAIN SEWER AGREEMENT.

Notwithstanding the fourth sentence of section 446 of the District of Columbia Self-Government and Governmental Reorganization Act, the District of Columbia is authorized to obligate or expend such funds as may be necessary during a fiscal year (beginning with fiscal year 1997) to carry out the Sewage Delivery System and Capacity Purchase Agreement between Fairfax County

and the District of Columbia with respect to Project Number

K00301, without regard to the amount appropriated for such purpose in the budget of the District of Columbia for the fiscal year.

CHAPTER 2—SENTENCING

SEC. 11211. TRUTH IN SENTENCING COMMISSION.

(a) ESTABLISHMENT.—There is established as an independent

agency of the District of Columbia a District of Columbia Truth in

Sentencing Commission (hereafter in this chapter referred to as

‘‘the Commission’’), which shall consist of 7 voting members. The

Attorney General, or the Attorney General’s designee, shall be the

chairperson of the Commission and shall have the duty to convene

meetings of the Commission to ensure that it fulfills its responsibilities under this Act. The members shall serve for the life of the

Commission and shall be subject to removal only for neglect of

duty, malfeasance in office, or other good cause shown.

(b) MEMBERSHIP.—The members of the Commission shall have

knowledge and responsibility with respect to criminal justice matters. Two members of the Commission shall be judges of the Superior Court of the District of Columbia, and shall be appointed by

the chief judge of that court; one member shall be a representative

of the District of Columbia Council and shall be appointed by the

chairperson or chairperson pro temp of the Council; one member

shall be a representative of the executive branch of the District of

Columbia government with official responsibilities for criminal justice matters in the District of Columbia and shall be appointed by

the Mayor of the District of Columbia; one member shall be a representative of the District of Columbia Public Defender Service and

shall be appointed by the Director of such Service; and one member

shall be a representative of the United States Attorney for the District of Columbia and shall be appointed by the United States Attorney. A representative of the Federal Bureau of Prisons and a

representative of the office of Corporation Counsel of the District

of Columbia shall each serve as a non-voting, ex officio member.

(c) VACANCY.—Any vacancy in the Commission shall be filled

in the same manner as the original appointment. Members of the

Commission shall receive no compensation for their services, but

shall be reimbursed for travel, subsistence, and other necessary expenses incurred in the performance of duties vested in the Commission, but not in excess of the maximum amounts authorized under

section 456 of title 28, United States Code.

SEC. 11212. GENERAL DUTIES, POWERS, AND GOALS OF COMMISSION.

(a) RECOMMENDATIONS.—The Commission shall, within 180

days after the enactment of this Act, make recommendations to the
255 Sec. 11212 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

District of Columbia Council for amendments to the District of Columbia Code with respect to the sentences to be imposed for all

felonies committed on or after 3 years after the date of enactment

of this Act.

(b) CONTENTS OF RECOMMENDATIONS.—Such recommendations

shall—

(1) as to all felonies described in paragraph (h), meet the

truth in sentencing standards of 20104(a)(1) of the Violent

Crime Control and Law Enforcement Act of 1994;

(2) as to all felonies ensure that—

(A) an offender will have a sentence imposed that—

(i) reflects the seriousness of the offense and the

criminal history of the offender; and

(ii) provides for just punishment, affords adequate

deterrence to potential future criminal conduct of the

offender and others, and provides the offender with

needed educational or vocational training, medical

care, and other correctional treatment;

(B) good time shall be calculated pursuant to section

3624 of title 18, United States Code; and

(C) an adequate period of supervision will be imposed

to follow release from the imprisonment.

(c) DEATH PENALTY.—The Commission shall not have the

power to recommend a sentence of death for any offense nor for any

offense a term of imprisonment less than that prescribed by the

D.C. Code as a mandatory minimum sentence.

(d) OTHER FEATURES OF RECOMMENDATIONS.—The Commission

shall ensure that its recommendations—

(1) will be neutral as to the race, sex, marital status, ethnic origin, religious affiliation, national origin, creed, socioeconomic status, and sexual orientation of offenders;

(2) will include provisions designed to maximize the effectiveness of the drug court of the Superior Court of the District

of Columbia; and

(3) will be fully consistent with all other provisions of this

Act, including provisions relating to the administration of probation, parole, and supervised release for District of Columbia

Code offenders.

(e) VOTE; TERMINATION.—The recommendations of the Commission required under subsections (a)–(d) shall be adopted by a

vote of not less than 6 of the members and when made shall be

transmitted forthwith to the District of Columbia Council The

Commission shall cease to exist 90 days after the transmittal of

recommendations to the Council or on the last date on which timely recommendations may be made if the Commission is unable to

agree on such recommendations.

(f) RECOMMENDATIONS FOR IMPLEMENTATION.—In fulfilling its

responsibilities, the Commission may adopt by a vote of not less

than 6 of the members and transmit to the Superior Court of the

District of Columbia recommended rules and principles for determining the sentence to be imposed, including—

(1) whether to impose a sentence of probation, a term of

imprisonment and/or a fine, and the amount or length thereof,

and including intermediate sanctions in appropriate cases; and
Sec. 11212 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 256

(2) whether multiple sentences of terms of imprisonment

should run concurrently or consecutively.

(g) POWERS.—The Commission is authorized—

(1) to hold hearings and call witnesses that might assist

the Commission in the exercise of its powers;

(2) to perform such other functions as may be necessary to

carry out the purposes of this section; and

(3) except as otherwise provided, to conduct business, exercise powers, and fulfill duties by the vote of a majority of the

members present at any meeting.

(h) FELONIES DESCRIBED.—The felonies described in this subsection are violations of any of the following provisions of law:

(1) The following provisions relating to arson:

(A) Section 820 of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22–401).

(B) Section 821 of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22–402).

(2) The following provisions relating to felony assault:

(A) Section 803 of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22-501).

(B) Section 804 of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22-502).

(C) Section 805 of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22-503).

(D) Section 806a of the Act entitled ‘‘An Act to establish a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22-504.1).

(E) Section 432 of the Revised Statutes, relating to the

District of Columbia (DC Code, sec. 22-505).

(F) Section 807 of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22-506).

(3) Section 502 of the District of Columbia Theft and White

Collar Crimes Act of 1982 (DC Code, sec. 22–722) (relating to

obstruction of justice).

(4) Section 3 of the Act of February 13, 1885 (chapter 58;

23 Stat. 303) (DC Code, sec. 22–901) (relating to cruelty to children).

(5) Section 823 of the Act entitled ‘‘An Act to establish a

code of law for the District of Columbia,’’ approved March 3,

1901 (DC Code, sec. 22–1801) (relating to first degree burglary).

(6) Section 812 of the Act entitled ‘‘An Act to establish a

code of law for the District of Columbia,’’ approved March 3,

1901 (DC Code, sec. 22–2101) (relating to kidnapping).

(7) The following provisions relating to murder and manslaughter:

(A) Section 798 of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22-2401).
257 Sec. 11212 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

(B) Section 799 of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22-2402).

(C) Section 800 of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22-2403).

(D) Section 801 of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22-2404).

(E) Section 802 of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22-2405).

(F) Section 802a of the Act entitled ‘‘An Act to establish a code of law for the District of Columbia,’’ approved

March 3, 1901 (DC Code, sec. 22-2406).

(8) Section 8 of the Act of July 15, 1932 (chapter 492; 47

Stat. 698) (DC Code, sec. 22–2601) (relating to prison breach).

(9) The Act entitled ‘‘An Act to prohibit the introduction of

contraband into the District of Columbia penal institutions,’’

approved December 15, 1941 (DC Code, sec. 22–2603).

(10) Section 810 of the Act entitled ‘‘An Act to establish a

code of law for the District of Columbia,’’ approved March 3,

1901 (DC Code, sec. 22–2901) (relating to robbery).

(11) Section 811a of the Act entitled ‘‘An Act to establish

a code of law for the District of Columbia,’’ approved March 3,

1901 (DC Code, sec. 22–2903) (relating to carjacking).

(12) The Dangerous Weapons Act (DC Code, sec. 22-3201

et seq.).

(13) The following provisions relating to sex offenses:

(A) Section 201 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4102).

(B) Section 202 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4103).

(C) Section 203 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4104).

(D) Section 204 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4105).

(E) Section 207 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4108).

(F) Section 208 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4109).

(G) Section 209 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4110).

(H) Section 212 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4113).

(I) Section 213 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4114).

(J) Section 214 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4115).

(K) Section 215 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4116).

(L) Section 217 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4118).

(M) Section 219 of the Anti-Sexual Abuse Act of 1994

(DC Code, sec. 22–4120).
Sec. 11213 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 258

(14) Section 401 of the District of Columbia Uniform Controlled Substances Act of 1981 (D.C. Code, sec. 33-541) (relating to recidivist drug offenders), but only in the case of a second or subsequent violation.

SEC. 11213. DATA COLLECTION.

(a) DATA FOR ATTORNEY GENERAL.—The Commission, the Superior Court of the District of Columbia, the District of Columbia

Department of Corrections, and other agencies as necessary shall

provide to the Attorney General such data as are requested in furtherance of this Act.

(b) SUPERIOR COURT.—The Superior Court of the District of Columbia, in connection with defendants sentenced in such Court,

shall provide to the Commission and the Attorney General such

data as are requested for planning, statistical analysis or projecting

future prison population levels.

SEC. 11214. ENACTMENT OF AMENDMENTS TO DISTRICT OF COLUMBIA CODE.

If, within 270 days after the date of the enactment of this Act,

the Council of the District of Columbia has failed to amend the District of Columbia Code to enact in whole the recommendations of

the Commission under this chapter, or if the Commission fails to

make such recommendations within the deadline established under

such section, the Attorney General (after consultation with the

Commission) shall promulgate within 90 days amendments to the

District of Columbia Code with respect to the sentences to be imposed for all offenses committed on or after 3 years after the date

of the enactment of this Act. Such amendments shall be consistent

with the standards of subsections (a) through (d) of section 11212.

Such amendments shall take effect 30 days after the Attorney General transmits the recommendations to Congress.

CHAPTER 3—OFFENDER SUPERVISION AND PAROLE

SEC. 11231. PAROLE.

(a) PAROLING JURISDICTION.—

(1) JURISDICTION OF PAROLE COMMISSION TO GRANT OR

DENY PAROLE AND TO IMPOSE CONDITIONS.—Not later than one

year after date of the enactment of this Act, the United States

Parole Commission shall assume the jurisdiction and authority

of the Board of Parole of the District of Columbia to grant and

deny parole, and to impose conditions upon an order of parole,

in the case of any imprisoned felon who is eligible for parole

or reparole under the District of Columbia Code. The Parole

Commission shall have exclusive authority to amend or supplement any regulation interpreting or implementing the parole

laws of the District of Columbia with respect to felons, provided that the Commission adheres to the rulemaking procedures set forth in section 4218 of title 18, United States Code.

(2) JURISDICTION OF PAROLE COMMISSION TO REVOKE PAROLE OR MODIFY CONDITIONS.—On the date in which the Court

Services and Offender Supervision Agency for the District of

Columbia is established under section 11233, the United States

Parole Commission shall assume any remaining powers, duties, and jurisdiction of the Board of Parole of the District of
259 Sec. 11232 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

Columbia, including jurisdiction to revoke parole and to modify

the conditions of parole, with respect to felons.

(3) JURISDICTION OF SUPERIOR COURT.—On the date on

which the Court Services and Offender Supervision Agency for

the District of Columbia is established under section 11233,

the Superior Court of the District of Columbia shall assume

the jurisdiction and authority of the Board of Parole of the District of Columbia to grant, deny, and revoke parole, and to impose and modify conditions of parole, with respect to

misdemeanants.

(b) ABOLITION OF THE BOARD OF PAROLE.—On the date on

which the Court Services and Offender Supervision Agency for the

District of Columbia is established under section 11233, the Board

of Parole established in the District of Columbia Board of Parole

Amendment Act of 1987 shall be abolished.

(c) RULEMAKING AND LEGISLATIVE RESPONSIBILITY FOR PAROLE

MATTERS.—The Parole Commission shall exercise the authority

vested in it by this section pursuant to the parole laws and regulations of the District of Columbia, except that the Council of the

District of Columbia and the Board of Parole of the District of Columbia may not revise any such laws or regulations (as in effect

on the date of the enactment of this Act) without the concurrence

of the Attorney General.

(d) INCREASE IN THE AUTHORIZED NUMBER OF UNITED STATES

PAROLE COMMISSIONERS.—Section 2(c) of the Parole Commission

Phaseout Act of 1996 (Public Law 104–232) is amended to read as

follows:

‘‘(c) The United States Parole Commission shall have no more

than five members.’’.

SEC. 11232. PRETRIAL SERVICES, PAROLE, ADULT PROBATION AND

OFFENDER SUPERVISION TRUSTEE.

(a) APPOINTMENT AND REMOVAL.—

(1) APPOINTMENT.—The Attorney General, in consultation

with the Chairman of the District of Columbia Financial Responsibility and Management Assistance Authority (hereafter

in this section referred to as the ‘‘D.C. Control Board’’) and the

Mayor of the District of Columbia, shall appoint a Pretrial

Services, Parole, Adult Probation and Offender Supervision

Trustee, who shall be an independent officer of the government

of the District of Columbia, to effectuate the reorganization

and transition of functions and funding relating to pretrial

services, defense services, parole, adult probation and offender

supervision.

(2) REMOVAL.—The Trustee may be removed by the Mayor

with the concurrence of the Attorney General. The Attorney

General shall have the authority to remove the Trustee for

misfeasance or malfeasance in office. At the request of the

Trustee, the District of Columbia Financial Responsibility and

Management Assistance Authority may exercise any of its powers and authorities on behalf of the Trustee.

(b) AUTHORITY.—Beginning on the date of appointment, and

continuing until the Court Services and Offender Supervision

Agency for the District of Columbia is established under section

11233, the Trustee shall—
Sec. 11232 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 260

5Section 166(b) of the District of Columbia Appropriations Act, 2000 (Public Law 106–113, 113

Stat. 1530) provides as follows:

(b) AUTHORITY DURING TRANSITION TO FULL OPERATION OF AGENCY.— (1) AUTHORITY OF PRETRIAL SERVICES, PAROLE, ADULT PROBATION AND OFFENDER SUPER- VISION TRUSTEE.—Notwithstanding section 11232(b)(1) of the National Capital Revitalization and Self-Government Improvement Act of 1997 (D.C. Code, sec. 24–1232(b)(1)), the Pretrial Services, Parole, Adult Probation and Offender Supervision Trustee appointed under

section 11232(a) of such Act (hereafter referred to as the ‘‘Trustee’’) shall, in accordance

with section 11232 of such Act, exercise the powers and functions of the Court Services and

Offender Supervision Agency for the District of Columbia (hereafter referred to as the

‘‘Agency’’) relating to sex offender registration (as granted to the Agency under any District

of Columbia law) only upon the Trustee’s certification that the Trustee is able to assume

such powers and functions.

(2) AUTHORITY OF METROPOLITAN POLICE DEPARTMENT.—During the period that begins on

the date of the enactment of the Sex Offender Registration Emergency Act of 1999 and ends

on the date the Trustee makes the certification described in paragraph (1), the Metropolitan

Police Department of the District of Columbia shall have the authority to carry out any

powers and functions relating to sex offender registration that are granted to the Agency

or to the Trustee under any District of Columbia law.

(1) 5 have the authority to exercise all powers and functions authorized for the Director of the Court Services and Offender Supervision Agency for the District of Columbia;

(2) have the authority to direct the actions of all agencies

of the District of Columbia whose functions will be assumed by

or within the Court Services and Offender Supervision Agency

for the District of Columbia, and of the Board of Parole of the

District of Columbia, including the authority to discharge or

replace any officers or employees of these agencies;

(3) exercise financial oversight over all agencies of the District of Columbia whose functions will be assumed by or within

the Court Services and Offender Supervision Agency for the

District of Columbia, and over the Board of Parole of the District of Columbia, and allocate funds to these agencies as appropriated by Congress and allocated by the President;

(4) receive and transmit to the District of Columbia Pretrial Services Agency all funds appropriated for such agency;

and

(5) receive and transmit to the District of Columbia Public

Defender Service all funds appropriated for such agency.

(c) COMPENSATION.—The Trustee shall be compensated at a

rate not to exceed the basic pay payable for Level IV of the Executive Schedule. The Trustee may appoint and fix the pay of additional staff without regard to the provisions of the District of Columbia Code governing appointments and salaries, without regard

to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of Chapter 53 of title 5,

United States Code, relating to classification and General Schedule

pay rates. Upon request of the Trustee, the head of any Federal department or agency may, on a reimbursable or non-reimbursable

basis, provide services and/or detail any personnel of that department or agency to the Trusteeship to assist in carrying out its duties.

(d) PROCUREMENT AND JUDICIAL REVIEW.—The provisions of

the District of Columbia Code governing procurement shall not

apply to the Trustee. The Trustee may enter into such contracts as

the Trustee considers appropriate to carry out the Trustee’s duties.

The Trustee may seek judicial enforcement of the Trustee’s authority to carry out the Trustee’s duties.
261 Sec. 11232 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

(e) PRESERVATION OF RETIREMENT AND CERTAIN OTHER RIGHTS

OF FEDERAL EMPLOYEE WHO BECOMES THE TRUSTEE OR FEDERAL

EMPLOYEES WHO BECOME EMPLOYED BY THE TRUSTEE.— (1) IN GENERAL.—A Federal employee who, within 3 days

after separating from the Federal Government, is appointed

Trustee or becomes employed by the Trustee—

(A) shall be treated as an employee of the Federal

Government for purposes of chapters 83, 84, 87, and 89 of

title 5 of the United States Code; and

(B) if, after serving with the Trustee, such employee

becomes reemployed by the Federal Government, shall be

entitled to credit for the full period of such individual’s

service with the Trustee, for purposes of determining the

applicable leave accrual rate.

(2) REGULATIONS.—The Office of Personnel Management

shall prescribe such regulations as may be necessary to carry

out this subsection.

(f ) TREATMENT AS FEDERAL EMPLOYEES.— (1) IN GENERAL.—The Trustee and employees of the Trustee who are not covered under subsection (e) shall be treated as

employees of the Federal Government solely for purposes of the

following provisions of title 5, United States Code:

(A) Chapter 83 (relating to retirement).

(B) Chapter 84 (relating to the Federal Employees’ Retirement System).

(C) Chapter 87 (relating to life insurance).

(D) Chapter 89 (relating to health insurance).

(2) EFFECTIVE DATES OF COVERAGE.—The effective dates of

coverage of the provisions of paragraph (1) are as follows:

(A) In the case of the Trustee and employees of the Office of the Trustee and the Office of Adult Probation, August 5, 1997, or the date of appointment, whichever is

later.

(B) In the case of employees of the Office of Parole, October 11, 1998, or the date of appointment, whichever is

later.

(C) In the case of employees of the Pretrial Services

Agency, January 3, 1999, or the date of appointment,

whichever is later.

(3) RATE OF CONTRIBUTIONS.—The Trustee shall make contributions under the provisions referred to in paragraph (1) at

the same rates applicable to agencies of the Federal Government.

(4) REGULATIONS.—The Office of Personnel Management

shall issue such regulations as are necessary to carry out this

subsection.

(g) FUNDING.—Funds available for operations of the Trustee

shall be made available to the extent provided in appropriations

acts to the Trustee, through the State Justice Institute. Funding

requests shall be proposed by the Trustee to the President and

Congress for each Fiscal Year.

(h) LIABILITY AND LITIGATION AUTHORITY.—

(1) LIABILITY.—The District of Columbia shall defend any

civil action or proceeding brought in any court or other official

Federal, state, or municipal forum against the Trustee, or
Sec. 11232 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 262

against the District of Columbia or its officers, employees, or

agents, and shall assume any liability resulting from such an

action or proceeding, if the action or proceeding arises from

the—

(A) supervision of offenders on probation, parole, or supervised release;

(B) provision of pretrial services by the District of Columbia; or

(C) activities of the District of Columbia Board of Parole.

(2) LITIGATION.—

(A) CORPORATION COUNSEL.—Subject to subparagraph

(B), the Corporation Counsel of the District of Columbia

shall provide litigation services to the Trustee, except that

the Trustee may instead elect, either generally or in relation to particular cases or classes of cases, to hire necessary staff and personnel or enter into contracts for the

provision of litigation services at the Trustee’s expense.

(B) ATTORNEY GENERAL.—

(i) IN GENERAL.—Notwithstanding subparagraph

(A), with respect to any litigation involving the Trustee, the Attorney General may—

(I) direct the litigation of the Trustee, and of

the District of Columbia on behalf of the Trustee;

and

(II) provide on a reimbursable or non-reimbursable basis litigation services for the Trustee

at the Trustee’s request or on the Attorney General’s own initiative.

(ii) APPROVAL OF SETTLEMENT.—With respect to

any litigation involving the Trustee, the Trustee may

not agree to any settlement involving any form of equitable relief without the approval of the Attorney

General. The Trustee shall provide to the Attorney

General such notice and reports concerning litigation

as the Attorney General may direct.

(iii) DISCRETION.—Any decision to exercise any authority of the Attorney General under this paragraph

shall be in the sole discretion of the Attorney General

and shall not be reviewable in any court.

(3) LIMITATIONS.—Nothing in this section shall be

construed—

(1) as a waiver of sovereign immunity, or as limiting any

other defense or immunity that would otherwise be available

to the United States, the District of Columbia, their agencies,

officers, employees, or agents; or

(2) to obligate the District of Columbia to represent or indemnify the Corrections Trustee or any officer, employee, or

agent where the Trustee (or any person employed by or acting

under the authority of the Trustee) acts beyond the scope of his

authority.
263 Sec. 11233 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

6The amendment made by section 7(c)(2)(B) of Public Law 105–274 (112 Stat. 2426) striking

‘‘the District of Columbia Offender Supervision, Defender, and Courts Services Agency’’ and inserting ‘‘the Court Services and Offender Supervision Agency for the District of Columbia’’ was

executed to reflect the probable intent of Congress. The amendment should have referred to

‘‘The’’, not ‘‘the’’.

(i) CERTIFICATION.—The Court Services and Offender Supervision Agency for the District of Columbia 6 shall assume its duties

pursuant to section 11233 when, within the period beginning one

year after the date of the enactment of this subtitle and ending

three years after the date of the enactment of this subtitle, the

Trustee certifies to the Attorney General and the Attorney General

concurs that the Agency can carry out the functions described in

section 11233 and the United States Parole Commission can carry

out the functions described in section 11231.

(j) EXERCISE OF AUTHORITY ON BEHALF OF PUBLIC DEFENDER

SERVICE.—At the request of the Director of the District of Columbia Public Defender Service, the Trustee may exercise any of the

powers and authorities of the Trustee on behalf of such Service in

the same manner and to the same extent as the Trustee may exercise such powers and authorities in relation to any agency described in subsection (b).

SEC. 11233. COURT SERVICES AND OFFENDER SUPERVISION AGENCY.

(a) ESTABLISHMENT.— There is established within the executive branch of the Federal Government the Court Services and Offender Supervision Agency for the District of Columbia (hereafter

in this section referred to as the ‘‘Agency’’) which shall assumes its

duties not less than one year or more than three years after the

enactment of this Act.

(b) DIRECTOR.—

(1) APPOINTMENT AND COMPENSATION.—The Agency shall

be headed by a Director appointed by the President, by and

with the advice and consent of the Senate, for a term of six

years. The Director shall be compensated at the rate prescribed for Level IV of the Executive Schedule, and may be removed from office prior to the expiration of term only for neglect of duty, malfeasance in office, or other good cause shown.

(2) POWERS AND DUTIES OF DIRECTOR.—The Director

shall—

(A) submit annual appropriation requests for the

Agency to the Office of Management and Budget;

(B) determine, in consultation with the Chief Judge of

the United States District Court for the District of Columbia, the Chief Judge of the Superior Court of the District

of Columbia, and the Chairman of the United States Parole Commission, uniform supervision and reporting practices for the Agency;

(C) hire and supervise supervision officers and support

staff for the Agency;

(D) direct the use of funds made available to the Agency;

(E) enter into such contracts, leases, and cooperative

agreements as may be necessary for the performance of

the Agency’s functions, including contracts for substance

abuse and other treatment and rehabilitative programs;
Sec. 11233 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 264

(F) develop and operate intermediate sanctions programs for sentenced offenders;

(G) arrange for the supervision of District of Columbia

paroled offenders in jurisdictions outside the District of Columbia; and

(H) carry out all functions which have heretofore been

carried out by the Social Services Division of the Superior

Court relating to supervision of adults subject to protection

orders or provision of services for or related to such persons.

(c) FUNCTIONS.— (1) IN GENERAL.—The Agency shall provide supervision,

through qualified supervision officers, for offenders on probation, parole, and supervised release pursuant to the District of

Columbia Code. The Agency shall carry out its responsibilities

on behalf of the court or agency having jurisdiction over the offender being supervised.

(2) SUPERVISION OF RELEASED OFFENDERS.—The Agency

shall supervise any offender who is released from imprisonment for any term of supervised release imposed by the Superior Court of the District of Columbia. Such offender shall be

subject to the authority of the United States Parole Commission until completion of the term of supervised release. The

United States Parole Commission shall have and exercise the

same authority as is vested in the United States district courts

by paragraphs (d) through (i) of section 3583 of title 18, United

States Code, except that—

(A) the procedures followed by the Commission in exercising such authority shall be those set forth in chapter

311 of title 18, United States Code; and

(B) an extension of a term of supervised release under

subsection (e)(2) of section 3583 may only be ordered by

the Superior Court upon motion from the Commission.

(3) SUPERVISION OF PROBATIONERS.—Subject to appropriations and program availability, the Agency shall supervise all

offenders placed on probation by the Superior Court of the District of Columbia. The Agency shall carry out the conditions of

release imposed by the Superior Court (including conditions

that probationers undergo training, education, therapy, counseling, drug testing, or drug treatment), and shall make such

reports to the Superior Court with respect to an individual on

probation as the Superior Court may require.

(4) SUPERVISION OF DISTRICT OF COLUMBIA PAROLEES.—The

Agency shall supervise all individuals on parole pursuant to

the District of Columbia Code. The Agency shall carry out the

conditions of release imposed by the United States Parole Commission or, with respect to a misdemeanant, by the Superior

Court of the District of Columbia, and shall make such reports

to the Commission or Court with respect to an individual on

parole supervision as the Commission or Court may require.

(5) SEX OFFENDER REGISTRATION.—The Agency shall carry

out sex offender registration functions in the District of Columbia, and shall have the authority to exercise all powers and

functions relating to sex offender registration that are granted

to the Agency under any District of Columbia law.
265 Sec. 11233 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

(d) AUTHORITY OF OFFICERS.—The supervision officers of the

Agency shall have and exercise the same powers and authority as

are granted by law to United States Probation and Pretrial Officers.

(e) PRETRIAL SERVICES AGENCY.—

(1) INDEPENDENT ENTITY.—The District of Columbia Pretrial Services Agency established by subchapter I of chapter 13

of title 23, District of Columbia Code shall function as an independent entity within the Agency.

(2) SUBMISSION ON BEHALF OF PRETRIAL SERVICES.—The

Director of the Agency shall submit, on behalf of the District

of Columbia Pretrial Services Agency and with the approval of

the Director of the Pretrial Services Agency, an annual appropriation request to the Office of Management and Budget. Such

request shall be separate from the request submitted for the

Agency.

(3) LIABILITY OF DISTRICT OF COLUMBIA.—The District of

Columbia shall defend any civil action or proceeding brought

in any court or other official Federal, state, or municipal forum

against the District of Columbia Pretrial Services Agency or

the District of Columbia or its officers, employees, or agents,

and shall assume any liability resulting from such an action or

proceeding, if the action or proceeding arises from the activities

of the District of Columbia Pretrial Services Agency prior to

the date on which the Offender Supervision, Defender and

Courts Services Agency assumes its duties.

(4) LITIGATION.—

(A) CORPORATION COUNSEL.—Subject to subparagraph

(B), the Corporation Counsel of the District of Columbia

shall provide litigation services to the District of Columbia

Pretrial Services Agency, except that the District of Columbia Pretrial Services Agency may instead elect, either

generally or in relation to particular cases or classes of

cases, to hire necessary staff and personnel or enter into

contracts for the provision of litigation services at such

agency’s expense.

(B) ATTORNEY GENERAL.—

(i) IN GENERAL.—Notwithstanding subparagraph

(A), with respect to any litigation involving the District of Columbia Pretrial Services Agency, the Attorney General may—

(I) direct the litigation of the agency, and of

the District of Columbia on behalf of the agency;

and

(II) provide on a reimbursable or non-reimbursable basis litigation services for the agency at

the agency’s request or on the Attorney General’s

own initiative.

(ii) APPROVAL OF SETTLEMENT.—With respect to

any litigation involving the District of Columbia Pretrial Services Agency, the agency may not agree to any

settlement involving any form of equitable relief without the approval of the Attorney General. The agency

shall provide to the Attorney General such notice and
Sec. 11234 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 266

reports concerning litigation as the Attorney General

may direct.

(iii) DISCRETION.—Any decision to exercise any authority of the Attorney General under this paragraph

shall be in the sole discretion of the Attorney General

and shall not be reviewable in any court.

(f ) RECEIPT AND TRANSMITTAL OF APPROPRIATIONS FOR PUBLIC

DEFENDER SERVICE.—The Director of the Agency shall receive and

transmit to the District of Columbia Public Defender Service all

funds appropriated for such agency.

SEC. 11234. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated in each fiscal year

such sums as may be necessary for the following:

(1) District of Columbia Pretrial Services Agency.

(2) Supervision of offenders on probation, parole, or supervised release for offenses under the District of Columbia Code.

(3) Operation of the parole system for offenders convicted

of offenses under the District of Columbia Code.

(4) Operation of the Trusteeship described in section

11232.

CHAPTER 4—DISTRICT OF COLUMBIA COURTS

Subchapter A—Transfer of Administration and Financing of

Courts to Federal Government

SEC. 11241. AUTHORIZATION OF APPROPRIATIONS.

(a) AUTHORIZATIONS.—There are authorized to be appropriated

for payment to the Joint Committee on Judicial Administration in

the District of Columbia in each fiscal year such sums as may be

necessary for the following:

(1) The Superior Court of the District of Columbia.

(2) The District of Columbia Court of Appeals.

(3) The District of Columbia Court System.

(b) SUBMISSION TO OMB.—The Joint Committee on Judicial

Administration in the District of Columbia shall include in its submissions to the Office of Management and Budget and the Congress, the budget and appropriations requests of the Superior

Court of the District of Columbia, the District of Columbia Court

of Appeals, and the District of Columbia Court System.

SEC. 11242. ADMINISTRATION OF COURTS UNDER DISTRICT OF COLUMBIA CODE.

(a) SUBMISSION OF ANNUAL BUDGET REQUESTS BY JOINT COMMITTEE ON JUDICIAL ADMINISTRATION.—Section 11–1701(b)(4), District of Columbia Code, is amended to read as follows:

‘‘(4) Submission of the annual budget requests of the District of Columbia Court of Appeals, the Superior Court of the

District of Columbia, and the District of Columbia Court System as the integrated budget of the District of Columbia

courts, except that such requests may be modified upon the

concurrence of four of the five members of the Joint Committee.’’.

(b) AUDIT OF ACCOUNTS OF COURTS.—Section 11–1723(a)(3),

District of Columbia Code, is amended to read as follows:
267 Sec. 11242 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

‘‘(3) The Fiscal Officer shall be responsible for the approval

of vouchers and the internal auditing of the accounts of the

courts and shall arrange for an annual independent audit of

the accounts of the courts.’’.

(c) APPOINTMENT AND REMOVAL OF COURT PERSONNEL.—Section 11–1725(b) of the District of Columbia Code is amended to

read as follows:

‘‘(b) The Executive Officer shall appoint, and may remove, the

Director of Social Services, the clerks of the courts, the AuditorMaster, and all other nonjudicial personnel for the courts (other

than the Register of Wills and personal law clerks and secretaries

of the judges) as may be necessary, subject to—

‘‘(1) regulations approved by the Joint Committee; and

‘‘(2) the approval of the chief judge of the court to which

the personnel are or will be assigned.

Appointments and removals of court personnel shall not be subject

to the laws, rules, and limitations applicable to District of Columbia employees.’’.

(d) PROCUREMENT OF EQUIPMENT AND SUPPLIES.—Section 11–

1742(b), District of Columbia Code, is amended to read as follows:

‘‘(b) The Executive Officer shall be responsible for the procurement of necessary equipment, supplies, and services for the courts

and shall have power, subject to applicable law, to reimburse the

District of Columbia government for services provided and to contract for such equipment, supplies, and services as may be necessary.’’.

(e) BUDGET AND EXPENDITURES.—

(1) IN GENERAL.—Section 11–1743, District of Columbia

Code, is amended to read as follows:

‘‘§ 11–1743. Annual Budget and Expenditures.

‘‘(a) The Joint Committee shall prepare and submit to the

Mayor and the Council of the District of Columbia annual estimates of the expenditures and appropriations necessary for the

maintenance and operations of the District of Columbia courts, and

shall submit such estimates to Congress and the Director of the Office of Management and Budget after submitting them to the

Mayor and the Council. All such estimates shall be included in the

budget without revision by the President but subject to the President’s recommendations.

‘‘(b) The District of Columbia Courts may make such expenditures as may be necessary to execute efficiently the functions vested in the Courts.

‘‘(c) All expenditures of the Courts shall be allowed and paid

upon presentation of itemized vouchers signed by the certifying officer designated by the Joint Committee. All such expenditures

shall be paid out of moneys appropriated for purposes of the

Courts.’’.

(2) CLERICAL AMENDMENT.—The item relating to section

11–1743 in the table of sections for subchapter III of chapter

17 of title 11, District of Columbia Code, is amended to read

as follows:

‘‘11–1743. Annual budget and expenditures.’’.
Sec. 11243 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 268

SEC. 11243. BUDGETING AND FINANCING REQUIREMENTS FOR

COURTS UNDER HOME RULE ACT.

(a) BUDGET OF COURTS.—Section 445 of the District of Columbia Self-Government and Governmental Reorganization Act (DC

Code, Title 11 App.) is amended to read as follows:

‘‘SEC. 445. The District of Columbia courts shall prepare and

annually submit to the Director of the Office of Management and

Budget, for inclusion in the annual budget, annual estimates of the

expenditures and appropriations necessary for the maintenance

and operation of the District of Columbia court system. The courts

shall submit as part of their budgets both a multiyear plan and a

multiyear capital improvements plan and shall submit a statement

presenting qualitative and quantitative descriptions of court activities and the status of efforts to comply with reports of the Comptroller General of the United States.’’.

(b) FINANCIAL DUTIES OF THE MAYOR.—Section 448(a)(6) of

such Act (DC Code, sec. 47–310(a)(6)) is amended to read as follows:

‘‘(6) supervise and be responsible for the levying and collection of all taxes, special assessments, license fees, and other

revenues of the District, as required by law, and receive all

moneys receivable by the District from the Federal Government or from any agency or instrumentality of the District, except that this paragraph shall not apply to moneys from the

District of Columbia Courts.’’.

(c) FUNDS OF THE DISTRICT.—Section 450 of such Act (DC

Code, sec. 47–130), is amended to read as follows:

‘‘SEC. 450. The General Fund of the District shall be composed

of those District revenues which on the effective date of this title

are paid into the Treasury of the United States and credited either

to the General Fund of the District or its miscellaneous receipts,

but shall not include any revenues which are applied by law to any

special fund existing on the date of enactment of this title. The

Council may from time to time establish such additional special

funds as may be necessary for the efficient operation of the government of the District. All money received by any agency, officer, or

employee of the District in its or his official capacity shall belong

to the District government and shall be paid promptly to the Mayor

for deposit in the appropriate fund, except that all money received

by the District of Columbia Courts shall be deposited in the Treasury of the United States or the Crime Victims Fund.’’.

(d) REDUCTIONS IN BUDGETS OF INDEPENDENT AGENCIES.—Section 453(c) of such Act (DC Code, sec. 47–304.1(c)) is amended to

read as follows:

‘‘(c) Subsection (a) shall not apply to amounts appropriated or

otherwise made available to the Council or to the District of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia

Financial Responsibility and Management Assistance Act of 1995.’’.

(e) TREATMENT OF COURT FEES IN CALCULATION OF LIMITS ON

DISTRICT BORROWING.—Section 603 of such Act (DC Code, sec. 47–

313) is amended—

(1) in subsection (b)—

(A) in paragraph (1)—
269 Sec. 11246 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

(i) in the first sentence, by striking ‘‘less court

fees, any fees’’ and inserting ‘‘less any fees’’; and

(ii) in the second sentence, by striking ‘‘section

2501 , title 47 of the District of Columbia Code, as

amended’’ and inserting ‘‘title VI of the District of Columbia Revenue Act of 1939’’;

(B) in paragraph (3)(A), by striking ‘‘less court fees,

any fees’’ and inserting ‘‘less any fees’’; and

(2) in subsection (c), by striking the last sentence (relating

to budget estimates of the District of Columbia courts).

SEC. 11244. AUDITING OF ACCOUNTS OF COURT SYSTEM.

(a) POWERS OF DISTRICT OF COLUMBIA AUDITOR.—Section 455

of the District of Columbia Self-Government and Governmental Reorganization Act (DC Code, sec. 47–117) is amended by adding at

the end the following new subsection:

‘‘(g) This section shall not apply to the District of Columbia

Courts or the accounts and operations thereof.’’.

(b) SUBMISSION OF GAO AUDIT REPORTS TO MAYOR AND COUNCIL.—Section 715(b) of title 31, United States Code (DC Code, sec.

47–118.1(b)), is amended by striking ‘‘and the Mayor’’ and inserting

‘‘and (other than the audit reports of the District of Columbia

Courts) the Mayor’’.

(c) INDEPENDENT ANNUAL AUDIT.—Section 4 of Public Law 94–

399 (DC Code, sec. 47–119) is amended by adding at the end the

following new subsection:

‘‘(d) This section shall not apply to the District of Columbia

Courts or the financial operations thereof.’’.

SEC. 11245. MISCELLANEOUS BUDGETING AND FINANCING REQUIREMENTS FOR COURTS UNDER DISTRICT LAW.

(a) DEPOSIT OF PUBLIC FUNDS.—Section 2(21) of the District of

Columbia Depository Act of 1977 (DC Code, sec. 47–341(21)) is

amended by striking ‘‘a court, agency’’ and inserting ‘‘an agency’’.

(b) REPROGRAMMING OF BUDGET AMOUNTS.—Section 4(h) of

D.C. Law 3–100 (DC Code, sec. 47–363(h)) is amended by striking

‘‘the District of Columbia courts,’’.

(c) CONTROL OF GRANT FUNDS.—(1) Section 3(1) of D.C. Law 3–

104 (DC Code, sec. 47–382(1)) is amended to read as follows:

‘‘(1) ‘Agency’ means the highest organizational structure of

the District at which budgeting data is aggregated, but shall

not include the District of Columbia Courts.’’

(2) Section 4(b) of D.C. Law 3–104 (DC Code, sec. 47–383(b))

is amended to read at follows:

‘‘(b) The Trustees of the University of the District of Columbia,

the Board of Education, and the D.C. General Hospital Commission

shall submit to the Mayor two copies of the application and completed approval form, as an advisory notice, concurrent with submitting the application and completed approval form to a grantmaking agency in accordance with rules and regulations issued

pursuant to subsection (c) of this section.’’.

SEC. 11246. OTHER PROVISIONS RELATING TO ADMINISTRATION OF

DISTRICT OF COLUMBIA COURTS.

(a) JUROR FEES.—Section 11–1912(a), District of Columbia

Code, is amended to read as follows:
Sec. 11246 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 270

‘‘(a) Notwithstanding section 602(a) of the District of Columbia

Self-Government and Governmental Reorganization Act, grand and

petit jurors serving in the Superior Court shall receive fees and expenses at rates established by the Board of Judges of the Superior

Court’’, except that such fees and expenses may not exceed the respective rates paid to such jurors in the Federal system.’’.

(b) COMPENSATION AND BENEFITS FOR COURT PERSONNEL.— (1) IN GENERAL.—Section 11–1726, District of Columbia

Code, is amended to read as follows:

‘‘§ 11–1726. Compensation and benefits for court personnel.

‘‘(a) In the case of nonjudicial employees of the District of Columbia courts whose compensation is not otherwise fixed by this

title, the Executive Officer shall fix the rates of compensation of

such employees without regard to chapter 51 and subchapter III of

chapter 53 of title 5, United States Code. Any rates so established

shall be subject to the limitation on pay fixed by administrative action in section 5373 of such title. In fixing the rates of compensation of nonjudicial employees under this section, the Executive Officer may be guided by the rates of compensation fixed for employees

in the executive and judicial branches of the Federal Government

or State or local governments occupying the same or similar positions or occupying positions of similar responsibility, duty, and difficulty.

‘‘(b)(1) Nonjudicial employees of the District of Columbia courts

shall be treated as employees of the Federal Government solely for

purposes of any of the following provisions of title 5, United States

Code:

‘‘(A) Subchapter 1 of chapter 81 (relating to compensation

for work injuries).

‘‘(B) Chapter 83 (relating to retirement).

‘‘(C) Chapter 84 (relating to the Federal Employees’ Retirement System).

‘‘(D) Chapter 87 (relating to life insurance).

‘‘(E) Chapter 89 (relating to health insurance).

‘‘(2) The employing agency shall make contributions under the

provisions referred to paragraph (1) at the same rates applicable to

agencies of the Federal Government.

‘‘(3) An individual who is a nonjudicial employee of the District

of Columbia courts on the date of the enactment of the Balanced

Budget Act of 1997 may make, within 60 days after such date, an

election under section 8351 or section 8432 of title 5, United States

Code, to participate in the Thrift Savings Plan for Federal employees.

‘‘(c)(1) Judicial employees of the District of Columbia courts

shall be treated as employees of the Federal Government for purposes of any of the following provisions of title 5, United States

Code:

‘‘(A) Subchapter 1 of chapter 81 (relating to compensation

for work injuries).

‘‘(B) Chapter 87 (relating to life insurance).

‘‘(C) Chapter 89 (relating to health insurance).

‘‘(2) The employing agency shall make contributions under the

provisions referred to paragraph (1) at the same rates applicable to

agencies of the Federal Government.
271 Sec. 11251 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

‘‘(3) For purposes of section 8706(b) and section 8901(3)(B) of

title 5, United States Code, benefits paid from the retirement system for judicial employees of the District of Columbia courts or

from the system providing benefits to survivors of such employees

shall be considered an annuity.

‘‘(4) For purposes of section 8901(3)(A) of title 5, United States

Code, the retirement system for judicial employees of the District

of Columbia courts shall be considered a retirement system for employees of the Government.’’.

(2) CONFORMING AMENDMENTS TO INTERNAL REVENUE

CODE AND SOCIAL SECURITY.—(A) Section 3121(b)(7)(C) of the

Internal Revenue Code of 1986 (relating to the definition of

employment for service performed in the employ of the District

of Columbia) is amended by inserting ‘‘(other than the Federal

Employees Retirement System provided in chapter 84 of title

5, United States Code)’’ after ‘‘law of the United States’’.

(B) Section 210(a)(7)(D) of the Social Security Act (42

U.S.C. 410(a)(7)(D)) (relating to the definition of employment

for service performed in the employ of the District of Columbia), is amended by inserting ‘‘(other than the Federal Employees Retirement System provided in chapter 84 of title 5, United

States Code)’’ after ‘‘law of the United States’’

(3) CLERICAL AMENDMENT.—The table of sections for subchapter II of chapter 15 of title 11, District of Columbia Code,

is amended by amending the item relating to section 11–1726

to read as follows:

‘‘11–1726. Compensation and benefits for court personnel.’’.

(4) EFFECTIVE DATE.—The amendments made by this subsection shall apply with respect to all months beginning after

the date on which the Director of the Office of Personnel Management issues regulations to carry out section 11–1726, District of Columbia Code (as amended by paragraph (1)).

(c) RETIREMENT PERIOD FOR EXECUTIVE OFFICER.—Section 11–

1703(d), District of Columbia Code, is amended by striking the period at the end and inserting the following: ‘‘, except that the Executive Officer (if initially hired after October 1, 1997) shall be eligible for retirement under subchapter III of chapter 15 when the Executive Officer has completed 7 years of service as Executive Officer, whether continuous or not.’’.

Subchapter B—Judicial Retirement Program

SEC. 11251. JUDICIAL RETIREMENT AND SURVIVORS ANNUITY FUND.

(a) ESTABLISHMENT OF FUND.—Section 11–1570, District of Columbia Code, is amended to read as follows:

‘‘§ 11–1570. The District of Columbia Judicial Retirement

and Survivors Annuity Fund.

‘‘(a) There is established in the Treasury a fund known as the

District of Columbia Judicial Retirement and Survivors Annuity

Fund (hereafter in this section referred to as the ‘Fund’), which

shall consist of the following assets:

‘‘(1) Amounts deposited by, or deducted and withheld from

the salary and retired pay of, a judge under section 1563 or
Sec. 11251 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 272

1567 of this title, which shall be credited to an individual account of the judge.

‘‘(2) Amounts transferred from the District of Columbia

Judges’ Retirement Fund under section 124(c)(1) of the District

of Columbia Retirement Reform Act, as amended by section

11252 of the Balanced Budget Act of 1997.

‘‘(3) Amounts deposited under subsection (d).

‘‘(4) Any return on investment of the assets of the Fund.

‘‘(b)(1) The Secretary of the Treasury (hereafter in this section

referred to as the ‘Secretary’) shall be responsible for the administration of the Fund. The Secretary may carry out such responsibilities through an agreement with a Trustee or contractor (who may

be the Trustee or contractor appointed to carry out responsibilities

relating to Federal benefit payments under subtitle A of title XI of

the Balanced Budget Act of 1997) and an enrolled actuary (as defined in section 7701(a)(35) of the Internal Revenue Code of 1986)

who is a member of the American Academy of Actuaries (who may

be the enrolled actuary engaged under such Act). Notwithstanding

any other provision of District law or any other law, rule, or regulation, any Trustee, contractor, or enrolled actuary selected by the

Secretary under this subsection may, with the approval of the Secretary, enter into one or more subcontracts with the District of Columbia government or any person to provide services to such Trustee, contractor, or enrolled actuary in connection with its performance of its agreement with the Secretary. Such Trustee, contractor,

or enrolled actuary shall monitor the performance of any subcontract to which it is a party and enforce its provisions.

‘‘(2) The Secretary shall submit to the President an annual estimate of the expenditures necessary for the maintenance and operation of the Fund, and such supplemental estimates as may be required from time to time for the same purposes, according to law.

‘‘(3) The Secretary may cause periodic examinations of the

Fund to be made by an enrolled actuary (as defined in section

7701(a)(35) of the Internal Revenue Code of 1986) who is a member

of the American Academy of Actuaries.

‘‘(c)(1) Amounts in the Fund are available—

‘‘(A) for the payment of judges retirement pay, annuities,

refunds, and allowances under this subchapter;

‘‘(B) to cover the reasonable and necessary expenses of administering the Fund under any agreement entered into with

a Trustee, contractor, or enrolled actuary under subsection

(b)(1), including any agreement with a department, agency or

instrumentality of the United States; and

‘‘(C) to cover the reasonable and necessary administrative

expenses incurred by the Secretary in carrying out the Secretary’s responsibilities under this subchapter.

‘‘(2) Notwithstanding any other provision of District law or any

other law, rule, or regulation—

‘‘(A) the Secretary may review benefit determinations

under this subchapter made prior to the date of the enactment

of the Balanced Budget Act of 1997, and shall make initial

benefit determinations after such date; and

‘‘(B) the Secretary may recoup or recover, or waive

recoupment or recovery of, any amounts paid under this subchapter as a result of errors or omissions by any person.’’.
273 Sec. 11251 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

‘‘(d)(1) The Secretary shall pay into the Fund from the General

Fund of the Treasury, not later than the close of each fiscal year,

an amount equal to the sum of—

‘‘(A) the normal cost for the year;

‘‘(B) the annual amortization amount for the year (which

may not be less than zero); and

‘‘(C) the covered administrative expenses for the year.

‘‘(2) For purposes of this subsection:

‘‘(A) The ‘original unfunded liability’ is the amount that is

the present value as of September 30, 1997, of future benefits

payable from the Fund (net of the sum of the present value of

future normal costs and plan assets as of such date).

‘‘(B) The ‘annual amortization amount’ is the amount determined by the enrolled actuary to be necessary to amortize

in equal annual installments (until fully amortized)—

‘‘(i) the original unfunded liability over a 30-year period;

‘‘(ii) a net experience gain or loss over a 10-year period; and

‘‘(iii) any other changes in actuarial liability over a 20-

year period.

‘‘(C) The ‘covered administrative expenses’ are the expenses determined by the Secretary (on an annual basis) to be

necessary to administer the Fund.

‘‘(3) Deposits made under this subsection shall not be credited

to the account of any individual.

‘‘(e) The Secretary shall invest such portion of the Fund as is

not in the judgment of the Secretary required to meet current withdrawals. Such investments shall be in public debt securities with

maturities suitable to the needs of the Fund, as determined by the

Secretary, and bearing interest at rates determined by the Secretary, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable

maturities.

‘‘(f) None of the moneys mentioned in this subchapter shall be

assignable, either in law or in equity, or be subject to execution,

levy, attachment, garnishment, or other legal process (except to the

extent permitted pursuant to the District of Columbia Spouse Equity Act of 1988).

‘‘(g) Notwithstanding any other provision of District law, rule,

or regulation, any civil action brought—

‘‘(1) by an individual to enforce or clarify rights to benefits

from the Fund; or

‘‘(2) by the Secretary—

‘‘(A) to enforce any claim arising (in whole or in part)

under this section or any contract entered into to carry out

this section,

‘‘(B) to recover benefits improperly paid from the Fund

or to clarify an individual’s rights to benefits from the

Fund, or

‘‘(C) to enforce any provision of this section or any contract entered into to carry out this section,

shall be brought in the United States District Court for the District

of Columbia.

‘‘(h) For purposes of the Internal Revenue Code of 1986—
Sec. 11252 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 274

‘‘(1) the Fund shall be treated as a trust described in section 401(a) of the Code that is exempt from taxation under section 501(a) of the Code;

‘‘(2) any transfer to or distribution from the Fund shall be

treated in the same manner as a transfer to or distribution

from a trust described in section 401(a) of the Code; and

‘‘(3) the benefits provided by the Fund shall be treated as

benefits provided under a governmental plan maintained by

the District of Columbia.

‘‘(i) For purposes of the Employee Retirement Income Security

Act of 1974, the benefits provided by the Fund shall be treated as

benefits provided under a governmental plan maintained by the

District of Columbia.

‘‘(j) To the extent that any provision of subpart A of part I of

subchapter D of the chapter 1 of the Internal Revenue Code of 1986

(26 U.S.C. 401 et seq.) is amended after the date of the enactment

of this subsection, such provision as amended shall apply to the

Fund only to the extent the Secretary determines that application

of the provision as amended is consistent with the administration

of this subchapter.

‘‘(k) Federal obligations for benefits under this subchapter are

backed by the full faith and credit of the United States.’’.

(b) REGULATIONS; EFFECT ON REFORM ACT.—Title 11, District

of Columbia Code, is amended by adding the following new section:

‘‘§ 11–1572. Regulations; effect on Reform Act.

‘‘(a) The Secretary is authorized to issue regulations to implement, interpret, administer and carry out the purposes of this subchapter, and, in the Secretary’s discretion, those regulations may

have retroactive effect, except that nothing in this subsection may

be construed to permit the Secretary to issue any regulation to

retroactively reduce or eliminate the benefits to which any individual is entitled under this subchapter.

‘‘(b) This subchapter supersedes any provision of the District of

Columbia Retirement Reform Act (Public Law 96-122) inconsistent

with this subchapter and the regulations thereunder.’’.

(c) CLERICAL AMENDMENTS.—

(1) The table of sections for subchapter III of chapter 15

of title 11, District of Columbia Code, is amended by amending

the item relating to section 11–1570 to read as follows:

‘‘11–1570. The District of Columbia Judicial Retirement and Survivors Annuity

Fund.’’.

(2) The table of sections for subchapter III of chapter 15

of title 11, District of Columbia Code, is amended by adding at

the end the following new item:

‘‘11–1572. Regulations; effect on Reform Act.’’.

SEC. 11252. TERMINATION OF CURRENT FUND AND PROGRAM.

(a) TERMINATION OF JUDGES’ RETIREMENT FUND.—Section 124

of the District of Columbia Retirement Reform Act (DC Code, sec.

1–714) is amended by striking subsection (c) and inserting the following (except as provided in section 11–1570, District of Columbia

Code):

‘‘(c)(1) Notwithstanding any other provision of this Act or the

amendments made by this Act, upon the date the assets of the Re-
275 Sec. 11252 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

tirement Fund described in subtitle A of title XI of the Balanced

Budget Act of 1997 are transferred, the assets of the District of Columbia Judges’ Retirement Fund established under subsection (a)

shall be transferred to the District of Columbia Judicial Retirement

and Survivors Annuity Fund under section 11–1570, District of Columbia Code, and no amounts shall be deposited into the District

of Columbia Judges’ Retirement Fund after the date on which the

assets are so transferred.

‘‘(2) In accordance with the direction of the Secretary, the District of Columbia Judges’ Retirement Fund established under subsection (a) shall be continued at the Board and appropriated for the

purposes provided in this Act until such time as all amounts in

such Fund have been expended or transferred to the District of Columbia Judicial Retirement and Survivors Annuity Fund pursuant

to paragraph (1). Thereafter any payments of retirement pay, annuities, refunds, and allowances for judicial personnel of the District of Columbia shall be paid from the District of Columbia Judicial Retirement and Survivors Annuity Fund in accordance with

subchapter III of chapter 15 of title 11, District of Columbia Code.’’.

(b) TRANSITION FROM DISTRICT OF COLUMBIA ADMINISTRATION.—Sections 11023, 11032(b)(2), 11033(d), and 11041 shall apply

to the administration of the District of Columbia Judges Retirement Fund established under section 124 of the District of Columbia Retirement Reform Act (DC Code, sec. 1–714), the District of

Columbia Judicial Retirement and Survivors Annuity Fund established under section 11–1570, District of Columbia Code, and the

retirement program for judges under subchapter III of chapter 15

of title 11, District of Columbia Code, except as follows:

(1) In applying each such section—

(A) any reference to this subtitle shall instead refer to

subchapter III of chapter 15 of title 11, District of Columbia Code;

(B) any reference to the District Retirement Program

shall be deemed to include the retirement program for

judges under subchapter III of chapter 15 of title 11, District of Columbia Code;

(C) any reference to the District Retirement Fund

shall be deemed to include the District of Columbia Judges

Retirement Fund established under section 124 of the District of Columbia Retirement Reform Act;

(D) any reference to Federal benefit payments shall be

deemed to include judges retirement pay, annuities, refunds and allowances under subchapter III of chapter 15

of title 11, District of Columbia Code;

(E) any reference to the Trust Fund shall instead refer

to the District of Columbia Judicial Retirement and Survivors Annuity Fund established under section 11–1570,

District of Columbia Code;

(F) any reference to section 11033 shall instead refer

to section 124 of the District of Columbia Retirement Reform Act, as amended by section 11252; and

(G) any reference to chapter 2 shall instead refer to

section 11–1570, District of Columbia Code.

(2) In applying section 11023—
Sec. 11253 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 276

(A) any reference to the contract shall instead refer to

the agreement referred to in section 11–1570(b), District of

Columbia Code; and

(B) any reference to the Trustee shall instead refer to

the Trustee or contractor referred to in section 11–1570(b),

District of Columbia Code.

(3) In applying section 11033(d)—

(A) any reference to this section shall instead refer to

section 124 of the District of Columbia Retirement Reform

Act, as amended by section 11252; and

(B) any reference to the Trustee shall instead refer to

the Secretary or the Trustee or contractor referred to in

section 11–1570(b), District of Columbia Code.

(4) In applying section 11041(b), any reference to the

Trustee shall instead refer to the Trustee or contractor referred

to in section 11–1570(b), District of Columbia Code.

(c) REMOVAL OF JUDGES FROM RETIREMENT BOARD.—Section

121(b)(1)(A) of the District of Columbia Retirement Reform Act (DC

Code, sec. 1–711(b)(1)(A)) is amended—

(1) in the matter preceding clause (i), by striking ‘‘13’’ and

inserting ‘‘12’’;

(2) by striking clause (vii); and

(3) by redesignating clauses (viii) and (ix) as clauses (vii)

and (viii).

(d) EFFECTIVE DATE.—The provisions of subsection (c) shall

take effect on the date on which the assets of the District of Columbia Judges Retirement Fund are transferred to the District of Columbia Judicial Retirement and Survivors Annuity Fund.

SEC. 11253. CONFORMING AMENDMENTS.

(a) TRANSFER OF AUTHORITY OVER FUND TO SECRETARY OF

TREASURY.—Title 11, District of Columbia Code, is amended as follows:

(1) In sections 11–1561(8)(C), 11–1562(c), 11–1563(b), 11–

1563(c), 11–1564(d)(6), 11–1564(d)(7), 11–1566(a), and 11–

1570(c), by striking ‘‘Commissioner [Mayor]’’ each place it appears and inserting ‘‘Secretary of the Treasury’’.

(2) In sections 11–1566(b)(2), 11–1567(a), 11–1567(b), by

striking ‘‘Mayor’’ each place it appears and inserting ‘‘Secretary

of the Treasury’’.

(3) In sections 11–1564(d)(2)(A) and 11–1568.1(1)(B), by

striking ‘‘Mayor of the District of Columbia’’ each place it appears and inserting ‘‘Secretary of the Treasury’’.

(4) In section 11–1563(a), by striking ‘‘paid to the Custodian of Retirement Funds (as defined in section 102(6) of the

District of Columbia Retirement Reform Act)’’ and inserting

‘‘paid to the Secretary of the Treasury’’.

(b) DEFINITION OF FUND.—Section 11–1561(4), District of Columbia Code, is amended to read as follows:

‘‘(4) The term ‘fund’ means the District of Columbia Judicial Retirement and Survivors Annuity Fund established by

section 11–1570.’’.

(c) TREATMENT OF FEDERAL SERVICE OF JUDGES.—Section 11–

1564, District of Columbia Code, is amended—
277 Sec. 11262 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

(1) in subsection (d)(2)(A), by striking ‘‘section 1–1814)’’

and inserting ‘‘section 1–714) or the District of Columbia Judicial Retirement and Survivors Annuity Fund (established by

section 11–1570)’’; and

(2) in subsection (d)(4), by striking ‘‘Judges Retirement

Fund established by section 124(a) of the District of Columbia

Retirement Reform Act’’ and inserting ‘‘Judicial Retirement

and Survivors Annuity Fund under section 11–1570.’’.

(d) REDEPOSITS TO FUND.—Section 11–1568.1(4)(A), District of

Columbia Code, is amended by striking ‘‘Judges Retirement Fund’’

and inserting ‘‘Judicial Retirement and Survivors Annuity Fund.’’.

Subchapter C—Miscellaneous Conforming and

Administrative Provisions

SEC. 11261. TREATMENT OF COURTS UNDER MISCELLANEOUS DISTRICT LAWS.

(a) FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE

ACT.—Paragraph (5) of section 305 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995

(DC Code, sec. 47–393(5)) is amended to read as follows:

‘‘(5) The term ‘District government’ means the government

of the District of Columbia, including any department, agency

or instrumentality of the government of the District of Columbia; any independent agency of the District of Columbia established under part F of title IV of the District of Columbia SelfGovernment and Governmental Reorganization Act or any

other agency, board, or commission established by the Mayor

or the Council; the Council of the District of Columbia; and any

other agency, public authority, or public benefit corporation

which has the authority to receive monies directly or indirectly

from the District of Columbia (other than monies received from

the sale of goods, the provision of services, or the loaning of

funds to the District of Columbia), except that such term does

not include the Authority.’’.

(b) MERIT PERSONNEL ACT.—(1) Section 201 of the District of

Columbia Comprehensive Merit Personnel Act of 1978 (DC Code,

sec. 1–602.1) is amended—

(A) by striking ‘‘(a) Except as provided in subsection (b) or

unless’’ and inserting ‘‘Unless’’; and

(B) by striking subsection (b).

(2) Section 301(13) of the District of Columbia Comprehensive

Merit Personnel Act of 1978 (DC Code, sec. 1–603.1(13)) is amended by striking ‘‘, the Superior Court of the District of Columbia,

and the District of Columbia Court of Appeals shall be considered

independent agencies’’ and inserting ‘‘shall be considered an independent agency’’.

SEC. 11262. REPRESENTATION OF INDIGENTS IN CRIMINAL CASES.

(a) BUDGET.—Section 11–2607, District of Columbia Code, is

amended to read as follows:

‘‘§ 11–2607. Preparation of Budget.

‘‘The joint committee shall prepare and include in its annual

budget requests for the District of Columbia court system estimates

of the expenditures and appropriations necessary for furnishing
Sec. 11271 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 278

representation by private attorneys to persons entitled to representation in accordance with section 2601 of this title.’’.

(b) AUTHORIZATION OF APPROPRIATIONS.—Section 11–2608 of

the District of Columbia Code is amended to read as follows:

‘‘§ 11–2608. Authorization of appropriations.

‘‘There are authorized to be appropriated through the State

Justice Institute such sums as may be necessary to pay for representation by private attorneys and related services under this

chapter. When so specified in appropriation Acts, such appropriations shall remain available until expended.’’.

(c) REPEAL AUTHORITY OF COUNCIL.—

(1) IN GENERAL.—Section 11–2609, District of Columbia

Code, is repealed.

(2) CLERICAL AMENDMENT.—The table of sections for chapter 26 of title 11, District of Columbia Code, is amended by

striking the item relating to section 11–2609.

CHAPTER 5—PRETRIAL SERVICES AGENCY AND PUBLIC

DEFENDER SERVICE

SEC. 11271. AMENDMENTS AFFECTING PRETRIAL SERVICES AGENCY.

(a) IN GENERAL.—Sections 23–1304 through 23–1308 of the

District of Columbia Code are amended to read as follows:

‘‘§ 23–1304. Executive committee; composition; appointment

and qualifications of Director

‘‘(a) The agency shall be advised by an executive committee of

seven members, of which four members shall constitute a quorum.

The Executive Committee shall be composed of the following persons or their designees: the Chief Judge of the United States Court

of Appeals for the District of Columbia Circuit, the Chief Judge of

the United States District Court for the District of Columbia, the

Chief Judge of the District of the Columbia Court of Appeals, the

Chief Judge of the Superior Court of the District of Columbia, the

United States Attorney for the District of Columbia, the Director

of the District of Columbia Public Defender Service, and the Director of the District of Columbia Offender Supervision, Defender and

Courts Services Agency.

‘‘(b) The Chief Judge of the United States Court of Appeals for

the District of Columbia Circuit and the Chief Judge of the United

States District Court for the District of Columbia, in consultation

with the other members of the executive committee, shall appoint

a Director of the agency who shall be a member of the bar of the

District of Columbia.

‘‘§ 23–1305. Duties of director; compensation

‘‘(a) The Director of the agency shall be responsible for the supervision and execution of the duties of the agency. The Director

shall be compensated as a member of the Senior Executive Service

pursuant to subchapter VIII of chapter 53 of title 5, United States

Code.
279 Sec. 11281 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

7Section 7(d) of the District of Columbia Courts and Justice Technical Corrections Act of 1998

(Public Law 105–274, 112 Stat. 2427, Oct. 21, 1998) repealed section 11272.

‘‘§ 23–1306. Chief assistant and other agency personnel; compensation

‘‘The Director shall employ a chief assistant who shall be compensated as a member of the Senior Executive Service pursuant to

section 5382 of title 5, United States Code. The Director shall employ such agency personnel as may be necessary properly to conduct the business of the agency. All employees other than the chief

assistant shall receive compensation that is comparable to levels of

compensation established for Federal pretrial services agencies.

‘‘§ 23–1307. Annual reports

‘‘(a) The Director shall each year submit to the executive committee and to the Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency a report as to the

Pretrial Services Agency’s administration of its responsibilities for

the previous fiscal year. The Director shall include in the report a

statement of financial condition, revenues, and expenses for the

past fiscal year.

‘‘§ 23–1308. Appropriation; budget

‘‘There are authorized to be appropriated through the State

Justice Institute in each fiscal year such sums as may be necessary

to carry out the provisions of this subchapter. Funds appropriated

by Congress for the District of Columbia Pretrial Services Agency

shall be received by the Director of the District of Columbia Offender Supervision, Defender and Courts Services Agency, and

shall be disbursed by that Director to and on behalf of the District

of Columbia Pretrial Services Agency. The District of Columbia

Pretrial Services Agency shall submit to the Director of the District

of Columbia Offender Supervision, Defender and Courts Services

Agency at the time and in the form prescribed by that Director, reports of its activities and financial position and its proposed budget.’’.

(b) CLERICAL AMENDMENT.—The table of sections for subchapter I of chapter 13 of title 23, District of Columbia Code, is

amended by striking the items relating to sections 23–1304

through 23–1308 and inserting the following:

‘‘23–1304. Executive committee; composition; appointment and qualifications of Director.

‘‘23–1305. Duties of director; compensation.

‘‘23–1306. Chief assistant and other agency personnel; compensation.

‘‘23–1307. Annual reports.

‘‘23–1308. Appropriation; budget.’’.

øSEC. 11272. REPEALED. 7¿

CHAPTER 6—MISCELLANEOUS PROVISIONS

SEC. 11281. TECHNICAL ASSISTANCE AND RESEARCH.

There are authorized to be appropriated to the National Institute of Justice in each fiscal year (beginning with fiscal year 1998)

such sums as may be necessary for the following activities:

(1) Research and demonstration projects, evaluations, and

technical assistance to assess and analyze the crime problem
Sec. 11282 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 280

in the District of Columbia, and to improve the ability of the

criminal justice and other systems and entities in the District

of Columbia to prevent, solve, and punish crimes.

(2) The establishment of a locally-based corporation or institute in the District of Columbia supporting research and

demonstration projects relating to the prevention, solution, or

punishment of crimes in the District of Columbia, including the

provision of related technical assistance.

SEC. 11282. EXEMPTION FROM PERSONNEL AND BUDGET CEILINGS

FOR TRUSTEES AND RELATED AGENCIES.

The Trustees described in sections 11202 and 11232 and the

activities and personnel of, and the funds allocated or otherwise

available to, the Trustees and the agencies over which the Trustees

exercise financial oversight pursuant to those sections, shall not be

subject to any general personnel or budget limitations which otherwise apply to the District of Columbia government or its agencies

in any appropriations act.

Subtitle D—Privatization of Tax Collection

and Administration

SEC. 11301. FINDINGS.

Congress finds as follows:

(1) The District of Columbia government has historically

had a poor record of determining and collecting all revenue it

is due under its revenue code.

(2) The impact on the District’s financial condition of poor

administration and collection is significant and has contributed

both to the size of its accumulated operating deficit and to the

difficulty in balancing the budget going forward.

(3) More complete collection of taxes would not only increase District of Columbia revenues, but would give residents

and businesses a sense of equity and that all were paying their

fair share.

(4) Once District tax processing and collection is competently managed it will be possible for the District government to accurately assess the true value of its many taxes and

determine that some may be reduced or eliminated without a

significant negative impact on revenues.

(5) Any reduction or elimination of non-productive or counterproductive taxes or taxes which cost more to administer

than they produce in revenue would significantly improve the

negative atmosphere surrounding the District of Columbia tax

system and its enforcement.

SEC. 11302. AUTHORIZING CHIEF FINANCIAL OFFICER TO PRIVATIZE

TAX ADMINISTRATION AND COLLECTION.

The Chief Financial Officer of the District of Columbia may

enter into contracts with a private entity for the administration

and collection of taxes of the District of Columbia.
281 Sec. 11402 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

Subtitle E—Financing of District of

Columbia Accumulated Deficit

SEC. 11401. FINDINGS.

Congress finds as follows:

(1) The District of Columbia government sold accumulated

deficit financing bonds in 1991.

(2) Between 1991 and the end of fiscal year 1997 the District of Columbia government is expected to accumulate an operating deficit in excess of $500,000,000.

(3) Requiring the District of Columbia budget for fiscal

year 1998 to be balanced will ensure that no further addition

is made to the accumulated operating deficit.

(4) In every other example of an American city in financial

crisis, a vital and necessary component of recovery was to finance the accumulated operating deficit.

(5) Carrying forward an accumualted operating deficit of more than $500,000,000 has a significant negative impact on

the District of Columbia’s cash flow and financial condition and

on its ability to improve its credit rating.

(6) It is not feasible to carry forward such a debt with an

expectation of paying it off gradually from future budget surpluses.

(7) Financing the accumulated deficit would improve the

District’s cash management position and allow more normal

cash management techniques.

SEC. 11402. AUTHORIZATION FOR INTERMEDIATE-TERM ADVANCES OF

FUNDS BY THE SECRETARY OF THE TREASURY TO LIQUIDATE THE ACCUMULATED GENERAL FUND DEFICIT OF

THE DISTRICT OF COLUMBIA.

Title VI of the District of Columbia Revenue Act of 1939 (DC

Code, sec. 47–3401 et seq.) is amended—

(1) by redesignating sections 602 through 605 as sections

603 through 606, respectively; and

(2) by inserting after section 601 the following:

‘‘SEC. 602. INTERMEDIATE-TERM ADVANCES FOR LIQUIDATION OF

DEFICIT.

‘‘(a) IN GENERAL.—If the conditions in subsection (b) are satisfied, the Secretary shall make an advance of funds from time to

time, out of any money in the Treasury not otherwise appropriated

and to the extent provided in advance in annual appropriations

Acts, for the purpose of assisting the District government in liquidating the outstanding accumulated operating deficit of the general

fund of the District government existing as of September 30, 1997.

‘‘(b) CONDITIONS TO MAKING ANY INTERMEDIATE-TERM ADVANCE.—The Secretary shall make an advance under this section

if—

‘‘(1) the Mayor delivers to the Secretary the following instruments, in form and substance satisfactory to the

Secretary—

‘‘(A) a financing agreement in which the Mayor agrees

to procedures for requisitioning advances;

‘‘(B) a requisition for an advance under this section;

and
Sec. 11402 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 282

‘‘(C) a promissory note evidencing the District government’s obligation to reimburse the Treasury for the requisitioned advance, which note may be a general obligation

bond issued under section 461(a) of the District of Columbia Self-Government and Governmental Reorganization

Act by the District government to the Secretary if the Secretary determines that such a bond is satisfactory;

‘‘(2) the date on which the requisitioned advance is requested to be made is not later than 3 years from the date of

enactment of the Balanced Budget Act of 1997;

‘‘(3) the District government delivers to the Secretary—

‘‘(A) evidence demonstrating to the satisfaction of the

Secretary that, at the time of the Mayor’s requisition for

an advance, the District government is effectively unable

to obtain credit in the public credit markets or elsewhere

in sufficient amounts and on sufficiently reasonable terms

to meet the District government’s need for financing to accomplish the purpose described in subsection (a); and

‘‘(B) a schedule setting out the anticipated timing and

amounts of requisitions for advances under this section;

‘‘(4) the Authority certifies to the Secretary that—

‘‘(A) there is an approved financial plan and budget in

effect under the District of Columbia Financial Responsibility and Management Assistance Act of 1995 for the fiscal year in which the requisition is to be made;

‘‘(B) at the time that the Mayor’s requisition for an advance is delivered to the Secretary, the District government is in compliance with the approved financial plan

and budget;

‘‘(C) both the receipt of funds from such advance and

the reimbursement of Treasury for such advance are consistent with the approved financial plan and budget for the

year;

‘‘(D) such advance will not adversely affect the financial stability of the District government; and

‘‘(E) at the time that the Mayor’s requisition for an advance is delivered to the Secretary, the District government is effectively unable to obtain credit in the public

credit markets or elsewhere in sufficient amounts and on

sufficiently reasonable terms to meet the District government’s need for financing to accomplish the purpose described in subsection (a);

‘‘(5) the Inspector General of the District of Columbia certifies to the Secretary the information described in subparagraphs (A) through (D) of paragraph (4), and in making this

certification, the Inspector General may rely upon an audit

conducted by an outside auditor engaged by the Inspector General under section 208(a)(4) of the District of Columbia Procurement Practices Act of 1985 if, after reasonable inquiry, the

Inspector General concurs in the findings of such audit;

‘‘(6) the Secretary determines that—

‘‘(A) there is reasonable assurance of reimbursement

for the requisitioned advance; and

‘‘(B) the debt owed by the District government to the

Treasury on account of the requisitioned advance will not
283 Sec. 11402 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

be subordinate to any other debt owed by the District or

to any other claims against the District; and

‘‘(7) the Secretary receives from such persons as the Secretary determines to be appropriate such additional certifications and opinions relating to such matters as the Secretary

determines to be appropriate.

‘‘(c) AMOUNT OF ANY INTERMEDIATE-TERM ADVANCE.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (3), if

the conditions in paragraph (2) are satisfied, each advance

made under this section shall be in the amount designated by

the Mayor in the Mayor’s requisition for such advance.

‘‘(2) CONDITIONS APPLICABLE TO DESIGNATED AMOUNT.— Paragraph (1) applies if—

‘‘(A) the Mayor certifies that the amount designated in

the Mayor’s requisition for such advance is needed to accomplish the purpose described in subsection (a) within 30

days of the time that the Mayor’s requisition is delivered

to the Secretary; and

‘‘(B) the Authority concurs in the Mayor’s certification

under subparagraph (A).

‘‘(3) MAXIMUM AMOUNT.—Notwithstanding paragraph (1),

the aggregate amount of all advances made under this section

shall not be greater than $300,000,000.

‘‘(d) MATURITY OF ANY INTERMEDIATE-TERM ADVANCE.— ‘‘(1) IN GENERAL.—Except as provided in paragraphs (2)

and (3), each advance made under this section shall mature on

the date designated by the Mayor in the Mayor’s requisition for

such advance.

‘‘(2) LATEST PERMISSIBLE MATURITY DATE.—Notwithstanding paragraph (1), the maturity date for any advance

made under this section shall not be later than 10 years from

the date on which the first advance under this section is made.

‘‘(4) SECRETARY’S RIGHT TO REQUIRE EARLY REIMBURSE- MENT.—Notwithstanding paragraph (1), if the Secretary determines, at any time while any advance made under this section

has not been fully reimbursed, that the District is able to obtain credit in the public credit markets or elsewhere in sufficient amounts and on sufficiently reasonable terms, in the

judgment of the Secretary, to refinance all or a portion of the

unpaid balance of such advance in the public credit markets or

elsewhere without adversely affecting the financial stability of

the District government, the Secretary may require reimbursement for all or a portion of the unpaid balance of such advance

at any time after the Secretary makes the determination.

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

shall bear interest at an annual rate equal to a rate determined by

the Secretary at the time that the Secretary makes such advance

taking into consideration the prevailing yield on outstanding marketable obligations of the United States with remaining periods to

maturity comparable to the repayment schedule of such advance,

plus 1⁄8 of 1 percent.

‘‘(f) OTHER TERMS AND CONDITIONS.—Each advance made

under this section shall be on such other terms and conditions, including repayment schedule, as the Secretary determines to be appropriate.
Sec. 11403 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 284

‘‘(g) DEPOSIT OF ADVANCES.—As provided in section 204(b) of

the District of Columbia Financial Responsibility and Management

Assistance Act of 1995, advances made under this section for the

account of the District government shall be deposited by the Secretary into an escrow account held by the Authority.’’.

SEC. 11403. CONFORMING AMENDMENTS.

(a) AMENDMENT TO SECTION 601.—Section 601 of the District

of Columbia Revenue Act of 1939 (DC Code, sec. 47–3401) is

amended—

(1) in subsection (c)(2)(B)(i)(IV), by striking ‘‘602(b)’’ and

inserting ‘‘603(b)’’; and

(2) in subsection (d)(2)(B)(iii), by striking ‘‘602(b)’’ and inserting ‘‘603(b)’’.

(b) AMENDMENT TO SECTION 604.—Section 604 of the District

of Columbia Revenue Act of 1939 (DC Code, sec. 47–3401.3) is

amended—

(1) in subsection (a)(2)(A)(i), by striking ‘‘602’’ and inserting ‘‘603’’; and

(2) in subsection (a)(2)(B)(i), by striking ‘‘602’’ and inserting ‘‘603’’.

SEC. 11404. TECHNICAL CORRECTIONS.

Section 601 of the District of Columbia Revenue Act of 1939

(DC Code, sec. 47–3401) is amended—

(1) in subsection (a)(3)(D), by striking ‘‘September 30,

1995’’ and inserting ‘‘September 30, 1996’’;

(2) in subsection (b)(2)(E), by striking ‘‘September 30,

1996’’ and inserting ‘‘September 30, 1997’’;

(3) in subsection (c)(2)(B)(i), by striking ‘‘October 1, 1995’’

and inserting ‘‘September 30, 1995’’;

(4) in subsection (d)(2)(B)(i)(II), by striking ‘‘September 30,

1997’’ and inserting ‘‘September 30, 1998’’;

(5) in subsection (d)(2)(B)(ii)—

(A) by striking ‘‘September 30, 1995’’ and inserting

‘‘October 1, 1995’’; and

(B) by striking ‘‘September 30, 1997’’ and inserting

‘‘October 1, 1997’’; and

(6) in subsection (d)(2)(C)(iv), by striking ‘‘September 30,

1997’’ and inserting ‘‘September 30, 1998’’.

SEC. 11405. AUTHORIZATION FOR ISSUANCE OF GENERAL OBLIGATION BONDS BY THE DISTRICT OF COLUMBIA TO FINANCE OR REFUND ITS ACCUMULATED GENERAL FUND

DEFICIT.

Section 461(a) of the District of Columbia Self-Government and

Governmental Reorganization Act (DC Code, sec. 47–321(a)) is

amended—

(1) in paragraph (1), by inserting ‘‘to finance or refund the

outstanding accumulated operating deficit of the general fund

of the District of $500,000,000, existing as of September 30,

1997,’’ after ‘‘existing as of September 30, 1990,’’; and

(2) in paragraph (2), by inserting ‘‘existing as of September

30, 1990’’ after ‘‘operating deficit’’.
285 Sec. 11503 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

Subtitle F—District of Columbia Bond

Financing Improvements

SEC. 11501. SHORT TITLE.

This subtitle may be cited as the ‘‘District of Columbia Bond

Financing Improvements Act of 1997’’.

SEC. 11502. FINDINGS.

Congress finds as follows:

(1) The bond authorization provision of the District of Columbia Self-Government and Governmental Reorganization Act

(commonly known as the ‘‘Home Rule Act’’) have not been updated to conform with changes in the municipal securities marketplace.

(2) The Home Rule Act unduly limits the ability of the District to take advantage of cost savings, investment opportunities, and other efficiencies generally available to municipal securities issuers.

(3) Section 461 of the Home Rule Act limits the ability of

the District government to implement cost-effective capital

planning to the extent that it does not permit the District access to interim capital financing in anticipation of its periodic

long-term borrowings.

(4) Section 462 of the Home Rule Act prevents the reprogramming of unused bond proceeds from dormant projects

to other pending, authorized, and viable projects.

(5) Section 466 of the Home Rule Act requires that the

District undertake competitive bond sales even under circumstances in which greater efficiencies can be achieved

through negotiated sales.

(6) Section 490 of the Home Rule Act does not permit the

issuance and sale of taxable and tax-exempt bonds for the full

range of economic development and governmental purposes

permitted the States and their political subdivisions.

SEC. 11503. AMENDMENT TO SECTION 462 (RELATING TO CONTENTS

OF BORROWING LEGISLATION AND ELECTIONS ON

ISSUING GENERAL OBLIGATION BONDS).

Section 462(a) of the District of Columbia Self-Government and

Governmental Reorganization Act (DC Code, sec. 47-322(a)) is

amended to read as follows:

‘‘(a) The Council may by act authorize the issuance of general

obligation bonds for the purposes specified in section 461. Such an

Act shall contain, at least, provisions—

‘‘(1) briefly describing the projects or categories of projects

to be financed by the Act;

‘‘(2) identifying the act authorizing each such project or

category of projects;

‘‘(3) setting forth the maximum amount of the principal of

the indebtedness which may be incurred for the projects to be

financed;

‘‘(4) setting forth the maximum rate of interest to be paid

on such indebtedness;

‘‘(5) setting forth the maximum allowable maturity for the

issue and the maximum debt service payable in any year; and
Sec. 11504 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 286

‘‘(6) setting forth, in the event that the Council determines

in its discretion to submit the question of issuing such bonds

to a vote of the qualified voters of the District, the manner of

holding such election, the date of such election, the manner of

voting for or against the incurring of such indebtedness, and

the form of ballot to be used at such election.’’.

SEC. 11504. AMENDMENT TO SECTION 466 (RELATING TO PUBLIC OR

NEGOTIATED SALE OF GENERAL OBLIGATION BONDS).

Section 466 of the District of Columbia Self-Government and

Governmental Reorganization Act (DC Code, sec. 47-326) is amended by striking all after the heading and inserting the following:

‘‘SEC. 466. General obligation bonds issued under this part may

be sold at a private sale on a negotiated basis (in such manner as

the Mayor may determine to be in the public interest), or may be

sold at public sale upon sealed proposals after publication of a notice of such public sale at least once not less than 10 days prior

to the date fixed for sale in a daily newspaper carrying municipal

bond notices and devoted primarily to financial news or to the subject of State and municipal bonds published in the city of New

York, New York, and in 1 or more newspapers of general circulation published in the District. Such notice of public sale shall state,

among other things, that no proposal shall be considered unless

there is deposited with the District as a down payment a certified

check, cashier’s check, or surety for an amount equal to at least 2

percent of the par amount of general obligation bonds bid for, and

the Mayor shall reserve the right to reject any and all bids.’’.

SEC. 11505. AMENDMENT TO SECTION 467 (RELATING TO AUTHORITY

TO CREATE SECURITY INTERESTS IN DISTRICT REVENUES).

Section 467 of the District of Columbia Self-Government and

Governmental Reorganization Act (D.C. Code Sec. 47-326.1.) is

amended by striking all after the heading and inserting the following:

‘‘SEC. 467. (a) IN GENERAL.—An act of the Council authorizing

the issuance of general obligation bonds or notes under section

461(a), section 471(a), section 472(a), or section 475(a) may create

a security interest in any District revenues as additional security

for the payment of the bonds or notes authorized by such act.

‘‘(b) CONTENTS OF ACTS.—Any such act creating a security interest in District revenues may contain provisions (which may be

part of the contract with the holders of such bonds or notes)—

‘‘(1) describing the particular District revenues which are

subject to such security interest;

‘‘(2) creating a reasonably required debt service reserve

fund or any other special fund;

‘‘(3) authorizing the Mayor of the District to execute a

trust indenture securing the bonds or notes;

‘‘(4) vesting in the trustee under such a trust indenture

such properties, rights, powers, and duties in trust as may be

necessary, convenient, or desirable;

‘‘(5) authorizing the Mayor of the District to enter into and

amend agreements concerning—

‘‘(A) the custody, collection, use, disposition, security,

investment, and payment of the proceeds of the bonds or
287 Sec. 11506 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

notes and the District revenues which are subject to such

security interest; and

‘‘(B) the doing of any act (or the refraining from doing

any act) that the District would have the right to do in the

absence of such an agreement;

‘‘(6) prescribing the remedies of the holders of the bonds or

notes in the event of a default; and

‘‘(7) authorizing the Mayor to take any other actions in

connection with the issuance, sale, delivery, security, and payment of the bonds or notes.

‘‘(c) TIMING AND PERFECTION OF SECURITY INTERESTS.—Notwithstanding article 9 of title 28 of the District of Columbia Code,

any security interest in District revenues created under subsection

(a) shall be valid, binding, and perfected from the time such security interest is created, with or without the physical delivery of any

funds or any other property and with or without any further action.

Such security interest shall be valid, binding, and perfected whether or not any statement, document, or instrument relating to such

security interest is recorded or filed. The lien created by such security interest is valid, binding, and perfected with respect to any individual or legal entity having claims against the District, whether

or not such individual or legal entity has notice of such lien.

‘‘(d) OBLIGATIONS AND EXPENDITURES NOT SUBJECT TO APPROPRIATION.—The fourth sentence of section 446 shall not apply to

any obligation or expenditure of any District revenues to secure

any general obligation bond or note under subsection (a).’’.

SEC. 11506. AMENDMENT TO SECTION 472 (RELATING TO BORROWING

IN ANTICIPATION OF REVENUES).

Section 472 of the District of Columbia Self-Government and

Governmental Reorganization Act (DC Code, sec. 47-328) is amended by striking all after the heading and inserting the following:

‘‘SEC. 472. (a) IN GENERAL.—In anticipation of the collection or

receipt of revenues for a fiscal year, the Council may by act authorize the issuance of general obligation notes for such fiscal year, to

be known as revenue anticipation notes.

‘‘(b) LIMIT ON AGGREGATE NOTES OUTSTANDING.—The total

amount of all revenue anticipation notes issued under subsection

(a) outstanding at any time during a fiscal year shall not exceed

20 percent of the total anticipated revenue of the District for such

fiscal year, as certified by the Mayor under this subsection. The

Mayor shall certify, as of a date which occurs not more than 15

days before each original issuance of such revenue anticipation

notes, the total anticipated revenue of the District for such fiscal

year.

‘‘(c) PERMITTED OUTSTANDING DURATION.—Any revenue anticipation note issued under subsection (a) may be renewed. Any such

note, including any renewal note, shall be due and payable not

later than the last day of the fiscal year during which the note was

originally issued.

‘‘(d) EFFECTIVE DATE OF AUTHORIZATION ACTS; PAYMENTS NOT

SUBJECT TO APPROPRIATION.—

‘‘(1) EFFECTIVE DATE.—Notwithstanding section 602(c)(1),

any act of the Council authorizing the issuance of revenue anticipation notes under subsection (a) shall take effect—
Sec. 11507 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 288

‘‘(A) if such act is enacted during a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of

1995), on the date of approval by the District of Columbia

Financial Responsibility and Management Assistance Authority; or

‘‘(B) if such act is enacted during any other year, on

the date of enactment of such act.

‘‘(2) PAYMENTS NOT SUBJECT TO APPROPRIATION.—The

fourth sentence of section 446 shall not apply to any amount

obligated or expended by the District for the payment of the

principal of, interest on, or redemption premium for any revenue anticipation note issued under subsection (a).’’.

SEC. 11507. ADDITION OF NEW SECTION 475 (RELATING TO GENERAL

OBLIGATION BOND ANTICIPATION NOTES).

(a) IN GENERAL.—Subpart 2 of part E of title IV of the District

of Columbia Self-Government and Governmental Reorganization

Act is amended by adding at the end the following new section:

‘‘BOND ANTICIPATION NOTES

‘‘SEC. 475. (a) AUTHORIZING ISSUANCE.—

‘‘(1) IN GENERAL.—In anticipation of the issuance of general obligation bonds, the Council may by act authorize the

issuance of general obligation notes to be known as bond anticipation notes in accordance with this section.

‘‘(2) PURPOSES; PERMITTING ISSUANCE OF GENERAL OBLIGATION BONDS TO COVER INDEBTEDNESS.—The proceeds of bond

anticipation notes issued under this section shall be used for

the purposes for which general obligation bonds may be issued

under section 461, and such notes shall constitute indebtedness which may be refunded through the issuance of general

obligation bonds under such section.

‘‘(b) MAXIMUM ANNUAL DEBT SERVICE AMOUNT.—The Act of

the Council authorizing the issuance of bond anticipation notes

shall set forth for the bonds anticipated by such notes an estimated

maximum annual debt service amount based on an estimated

schedule of annual principal payments and an estimated schedule

of annual interest payments (based on an estimated maximum average annual interest rate for such bonds over a period of 30 years

from the earlier of the date of issuance of the notes or the date of

original issuance of prior notes in anticipation of those bonds).

Such estimated maximum annual debt service amount as estimated at the time of issuance of the original bond anticipation

notes shall be included in the calculation required by section 603(b)

while such notes or renewal notes are outstanding.

‘‘(c) PERMITTED OUTSTANDING DURATION.—Any bond anticipation note, including any renewal note, shall be due and payable not

later than the last day of the third fiscal year following the fiscal

year during which the note was originally issued.

‘‘(d) GENERAL AUTHORITY OF COUNCIL.—If provided for in Act

of the Council authorizing such an issue of bond anticipation notes,

bond anticipation notes may be issued in succession, in such

amounts, at such times, and bearing interest rates within the permitted maximum authorized by such Act.
289 Sec. 11508 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

‘‘(e) EFFECTIVE DATE OF AUTHORIZATION ACTS; PAYMENTS NOT

SUBJECT TO APPROPRIATION.—

‘‘(1) EFFECTIVE DATE.—Notwithstanding section 602(c)(1),

any act of the Council authorizing the renewal of bond anticipation notes under subsection (c) or the issuance of general obligation bonds under section 461(a) to refund any bond anticipation notes shall take effect—

‘‘(A) if such act is enacted during a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of

1995), on the date of approval by the District of Columbia

Financial Responsibility and Management Assistance Authority; or

‘‘(B) if such act is enacted during any other year, on

the date of enactment of such act.

‘‘(2) PAYMENT NOT SUBJECT TO APPROPRIATION.—The fourth

sentence of 446 shall not apply to any amount obligated or expended by the District for the payment of the principal of, interest on, or redemption premium for any bond anticipation

note issued under this section.’’.

(b) CLERICAL AMENDMENT.—The table of contents for the District of Columbia Self-Government and Governmental Reorganization Act is amended by adding at the end of the items relating to

subpart 2 of part E of title IV the following new item:

‘‘Sec. 475. Bond anticipation notes.’’.

SEC. 11508. AMENDMENT TO SECTION 490 (RELATING TO REVENUE

BONDS AND OTHER OBLIGATIONS).

Section 490 of the District of Columbia Self-Government and

Governmental Reorganization Act (DC Code, sec. 47–334), as

amended by section 2 of the District of Columbia Water and Sewer

Authority Act of 1996, is amended—

(1) in subsection (a)—

(A) by amending paragraphs (1) through (3) to read as

follows:

‘‘(a)(1) Subject to paragraph (2), the Council may by act or by

resolution authorize the issuance of taxable and tax-exempt revenue bonds, notes, or other obligations to borrow money to finance,

refinance, or reimburse and to assist in the financing, refinancing,

or reimbursing of or for capital projects and other undertakings by

the District or by any District instrumentality, or on behalf of any

qualified applicant, including capital projects or undertakings in

the areas of housing; health facilities; transit and utility facilities;

manufacturing; sports, convention, and entertainment facilities;

recreation, tourism and hospitality facilities; facilities to house and

equip operations of the District government or its instrumentalities; public infrastructure development and redevelopment; elementary, secondary and college and university facilities; educational programs which provide loans for the payment of educational expenses for or on behalf of students; facilities used to

house and equip operations related to the study, development, application, or production of innovative commercial or industrial technologies and social services; water and sewer facilities (as defined

in paragraph (5)); pollution control facilities; solid and hazardous

waste disposal facilities; parking facilities, industrial and commer-
Sec. 11508 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 290

cial development; authorized capital expenditures of the District;

and any other property or project that will, as determined by the

Council, contribute to the health, education, safety, or welfare, of,

or the creation or preservation of jobs for, residents of the District,

or to economic development of the District, and any facilities or

property, real or personal, used in connection with or

supplementing any of the foregoing; lease-purchase financing of

any of the foregoing facilities or property; and any costs related to

the issuance, carrying, security, liquidity or credit enhancement of

or for revenue bonds, notes, or other obligations, including, capitalized interest and reserves, and the costs of bond insurance, letters

of credit, and guaranteed investment, forward purchase, remarketing, auction, and swap agreements. Any such financing, refinancing, or reimbursement may be effected by loans made directly

or indirectly to any individual or legal entity, by the purchase of

any mortgage, note, or other security, or by the purchase, lease, or

sale of any property.

‘‘(2) Any revenue bond, note, or other obligation issued under

paragraph (1) shall be a special obligation of the District and shall

be a negotiable instrument, whether or not such revenue bond,

note, or other obligation is a security as defined in section 28:8-

102(1)(a) of title 28 of the District of Columbia Code.

‘‘(3) Any revenue bond, note, or other obligation issued under

paragraph (1) shall be paid and secured (as to principal, interest,

and any premium) as provided by the act or resolution of the Council authorizing the issuance of such revenue bond, note, or other obligation. Any act or resolution of the Council, or any delegation of

Council authority under subsection (a)(6), authorizing the issuance

of revenue bonds, notes, or other obligations may provide for (A)

the payment of such revenue bonds, notes, or other obligations

from any available revenues, assets, property (including water and

sewer enterprise fund revenues, assets, or other property in the

case of bonds, notes, or obligations issued with respect to water and

sewer facilities), and (B) the securing of such revenue bond, note,

or other obligation by the mortgage of real property or the creation

of a security interest in available revenues, assets, or other property (including water and sewer enterprise fund revenues, assets,

or other property in the case of bonds, notes, or obligations issued

with respect to water and sewer facilities).’’,

(B) by amending paragraph (4)(A) to read as follows:

‘‘(4)(A) In authorizing the issuance of any revenue bond,

note, or other obligation under paragraph (1), the Council may

enter into, or authorize the Mayor to enter into, any agreement

concerning the acquisition, use, or disposition of any available

revenues, assets, or property. Any such agreement may create

a security interest in any available revenues, assets, or property, may provide for the custody, collection, security, investment, and payment of any available revenues (including any

funds held in trust) for the payment of such revenue bond,

note, or other obligation, may mortgage any property, may provide for the acquisition, construction, maintenance, and disposition of the undertaking financed or refinanced using the

proceeds of such revenue bond, note, or other obligation, and

may provide for the doing of any act (or the refraining from

doing of any act) which the District has the right to do in the
291 Sec. 11508 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

absence of such agreement. Any such agreement may be assigned for the benefit of, or made a part of any contract with,

any holder of such revenue bond, note, or other obligation

issued under paragraph (1).’’, and

(C) by adding at the end the following new paragraph:

‘‘(6)(A) The Council may by act delegate to any District instrumentality the authority of the Council under subsection

(a)(1) to issue taxable or tax-exempt revenue bonds, notes, or

other obligations to borrow money for the purposes specified in

this subsection. For purposes of this paragraph, the Council

shall specify for what undertakings revenue bonds, notes, or

other obligations may be issued under each delegation made

pursuant to this paragraph. Any District instrumentality may

exercise the authority and the powers incident thereto delegated to it by the Council as described in the first sentence of

this paragraph only in accordance with this paragraph and

shall be consistent with this paragraph and the terms of the

delegation.

‘‘(B) Revenue bonds, notes, or other obligations issued by

a District instrumentality under a delegation of authority described in subparagraph (A) shall be issued by resolution of

that instrumentality, and any such resolution shall not be considered to be an act of the Council.

‘‘(C) Nothing in this paragraph shall be construed as restricting, impairing, or superseding the authority otherwise

vested by law in any District instrumentality.’’;

(2) by amending subsection (b) to read as follows:

‘‘(b) No property owned by the United States may be mortgaged or made subject to any security interest to secure any revenue bond, note, or other obligation issued under subsection

(a)(1).’’;

(3) by amending subsection (c) to read as follows:

‘‘(c) Any and all such revenue bonds, notes, or other obligations

issued under subsection (a)(1) shall not be general obligations of

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

or taxing power of the District (other than with respect to any dedicated taxes) and shall not constitute a debt of the District, and

shall not constitute lending of the public credit for private undertakings for purposes of section 602(a)(2).’’;

(4) by amending subsection (f) to read as follows:

‘‘(f) The fourth sentence of section 446 shall not apply to—

‘‘(1) any amount (including the amount of any accrued interest or premium) obligated or expended from the proceeds of

the sale of any revenue bond, note, or other obligations issued

under subsection (a)(1);

‘‘(2) any amount obligated or expended for the payment of

the principal of, interest on, or any premium for any revenue

bond, note, or other obligation issued under subsection (a)(1);

‘‘(3) any amount obligated or expended pursuant to provisions made to secure any revenue bond, note, or other obligations issued under subsection (a)(1); and

‘‘(4) any amount obligated or expended pursuant to commitments made in connection with the issuance of revenue

bonds, notes, or other obligations for repair, maintenance, and

capital improvements relating to undertakings financed
Sec. 11508 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 292

through any revenue bond, note, or other obligation issued

under subsection (a)(1).’’; and

(5) by adding at the end the following new subsections:

‘‘(i) The revenue bonds, notes, or other obligations issued under

subsection (a)(1) are not general obligation bonds of the District

government and shall not be included in determining the aggregate

amount of all outstanding obligations subject to the limitation specified in section 603(b).

‘‘(j) The issuance of revenue bonds, notes, or other obligations

by the District where the ultimate obligation to repay such revenue

bonds, notes, or other obligations is that of one or more non-governmental persons or entities may be authorized by resolution of the

Council. The issuance of all other revenue bonds, notes, or other

obligations by the District shall be authorized by act of the Council.

‘‘(k) During any control period (as defined in section 209 of the

District of Columbia Financial Responsibility and Management Assistance Act of 1995), any act or resolution of the Council authorizing the issuance of revenue bonds, notes, or other obligations

under subsection (a)(1) shall be submitted to the District of Columbia Financial Responsibility and Management Assistance Authority

for certification in accordance with section 204 of that Act. Any certification issued by the Authority during a control period shall be

effective for purposes of this subsection for revenue bonds, notes,

or other obligations issued pursuant to such act or resolution of the

Council whether the revenue bonds, notes, or other obligations are

issued during or subsequent to that control period.

‘‘(l) The following provisions of law shall not apply with respect

to property acquired, held, and disposed of by the District in accordance with the terms of any lease-purchase financing authorized

pursuant to subsection (a)(1):

‘‘(1) The Act entitled ‘An Act authorizing the sale of certain

real estate in the District of Columbia no longer required for

public purposes’, approved August 5, 1939 (53 Stat. 1211; DC

Code sec. 9–401 et seq.).

‘‘(2) Subchapter III of chapter 13 of title 16, District of Columbia Code.

‘‘(3) Any other provision of District of Columbia law that

prohibits or restricts lease-purchase financing.

‘‘(m) For purposes of this section, the following definitions shall

apply:

‘‘(1) The term ‘revenue bonds, notes, or other obligations’

means special fund bonds, notes, or other obligations (including

refunding bonds, notes, or other obligations) used to borrow

money to finance, assist in financing, refinance, or repay, restore or reimburse moneys used for purposes referred to in

subsection (a)(1) the principal of and interest, if any, on which

are to be paid and secured in the manner described in this section and which are special obligations and to which the full

faith and credit of the District of Columbia is not pledged.

‘‘(2) The term ‘District instrumentality’ means any agency

or instrumentality (including an independent agency or instrumentality), authority, commission, board, department, division,

office, body, or officer of the District of Columbia government

duly established by an act of the Council or by the laws of the

United States, whether established before or after the date of
293 Sec. 11601 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

enactment of the District of Columbia Bond Financing Improvements Act of 1997.

‘‘(3) The term ‘available revenues’ means gross revenues

and receipts, other than general fund tax receipts, lawfully

available for the purpose and not otherwise exclusively committed to another purpose, including enterprise funds, grants,

subsidies, contributions, fees, dedicated taxes and fees, investment income and proceeds of revenue bonds, notes, or other obligations issued under this section.

‘‘(4) The term ‘enterprise fund’ means a fund or account for

operations that are financed or operated in a manner similar

to private business enterprises, or established so that separate

determinations may more readily be made periodically of revenues earned, expenses incurred, or net income for management

control, accountability, capital maintenance, public policy, or

other purposes.

‘‘(5) The term ‘dedicated taxes and fees’ means taxes and

surtaxes, portions thereof, tax increments, or payments in lieu

of taxes, and fees that are dedicated pursuant to law to the

payment of the debt service on revenue bonds, notes, or other

obligations authorized under this section, the provision and

maintenance of reserves for that purpose, or the provision of

working capital for or the maintenance, repair, reconstruction

or improvement of the undertaking to which the revenue

bonds, notes, or other obligations relate.

‘‘(6) The term ‘tax increments’ means taxes, other than the

special tax provided for in section 481 and pledged to the payment of general obligation indebtedness of the District, allocable to the increase in taxable value of real property or the

increase in sales tax receipts, each from a certain date or

dates, in prescribed areas, to the extent that such increases are

not otherwise exclusively committed to another purpose and as

further provided for pursuant to an act of the Council.’’.

SEC. 11509. CONFORMING AMENDMENT.

The fourth sentence of section 446 of the District of Columbia

Self-Government and Governmental Reorganization Act (DC Code,

sec. 47-304) is amended to read as follows: ‘‘Except as provided in

section 467(d), section 471(c), section 472(d)(2), section 475(e)(2),

section 483(d), and section 490(f), (g), and (h)(3), no amount may

be obligated or expended by any officer or employee of the District

of Columbia government unless such amount has been approved by

Act of Congress, and then only according to such Act.’’.

Subtitle G—District of Columbia

Government Budget

SEC. 11601. ELIMINATION OF THE ANNUAL FEDERAL PAYMENT TO

THE DISTRICT OF COLUMBIA.

(a) ELIMINATION OF PAYMENT.— (1) IN GENERAL.—Title V of the District of Columbia SelfGovernment and Governmental Reorganization Act (DC Code,

sec. 47–3406 et seq.) is hereby repealed.

(2) CLERICAL AMENDMENT.—The table of contents of such

Act is amended by striking the items relating to title V.
Sec. 11601 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 294

(b) CONFORMING AMENDMENTS.—

(1) HOME RULE ACT.—The District of Columbia Self-Government and Governmental Reorganization Act is amended as

follows:

(A) In section 103(10) (DC Code, sec. 1–202(10)), by

striking ‘‘the annual Federal payment to the District authorized under title V,’’.

(B) In section 483 (DC Code, sec. 47–331.2), by striking subsection (c).

(C) In section 603(c) (DC Code, sec. 47–313(c)), by

striking the fourth sentence.

(D) In section 603(f)(1) (DC Code, sec. 47–313(f)(1)), by

striking ‘‘(other than the fourth sentence)’’.

(2) FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE ACT.—The District of Columbia Financial Responsibility

and Management Assistance Act of 1995 is amended—

(A) by striking section 205 (DC Code, sec. 47–392.5);

and

(B) in the table of contents for such Act, by striking

the item relating to section 205.

(3) PROCUREMENT PRACTICES ACT.—Section 208(a)(2) of the

District of Columbia Procurement Practices Act of 1985 (DC

Code, sec. 1–1182.8(a)(2)) is amended—

(1) by striking subparagraph (B);

(2) by redesignating subparagraph (C) as subparagraph

(B); and

(3) in subparagraph (B), as so redesignated, by striking

‘‘Amounts deposited in the dedicated fund described in subparagraph (B)’’ and inserting ‘‘Amounts appropriated for the

Inspector General’’.

(4) DISTRICT OF COLUMBIA REVENUE ACT OF 1939.—The

District of Columbia Revenue Act of 1939 (DC Code, sec. 47–

3401 et seq.) is amended as follows:

(A) In section 603(b) (as redesignated by section

11402)—

(i) in paragraph (5), by adding ‘‘and’’ at the end;

(ii) in paragraph (6), by striking ‘‘; and’’ and inserting a period; and

(iii) by striking paragraph (7).

(B) In section 603(c) (as redesignated by section

11402), by amending subparagraph (C) to read as follows:

‘‘(C) APPLICABLE LIMIT DEFINED.—In this paragraph,

the ‘applicable limit’ for a fiscal year is equal to 15 percent

of the total anticipated revenues of the District government for such fiscal year, as certified by the Mayor at the

time of the Mayor’s requisition for an advance.’’.

(C) In section 605(b) (as redesignated by section

11402)—

(i) by striking paragraph (1) and redesignating

paragraphs (2) through (4) as paragraphs (1) through

(3);

(ii) in paragraph (1) (as so redesignated), by striking ‘‘OTHER’’ in the heading;
295 Sec. 11602 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

(iii) in paragraph (1) (as so redesignated), by striking ‘‘If, after’’ and all that follows through ‘‘the Secretary’’ and inserting ‘‘The Secretary’’;

(iv) in paragraph (1) (as so redesignated), by striking ‘‘to individuals,’’ and inserting ‘‘to individuals (including any Federal contribution authorized to be appropriated pursuant to section 11601(c)(2) of the Balanced Budget Act of 1997),’’;

(v) in paragraph (2) (as so redesignated), by striking ‘‘paragraphs (1) and (2)’’ and inserting ‘‘paragraph

(1)’’; and

(vi) in paragraph (3) (as so redesignated), by striking ‘‘(1) through (3)’’ and inserting ‘‘(1) and (2)’’.

(c) FEDERAL CONTRIBUTION TO OPERATIONS OF GOVERNMENT

OF NATION’S CAPITAL.— (1) FINDINGS.—Congress finds as follows:

(A) Congress has restricted the overall size of the District of Columbia’s economy by limiting the height of buildings in the District and imposing other limitations relating

to the Federal presence in the District.

(B) Congress has imposed limitations on the District’s

ability to tax income earned in the District of Columbia.

(C) The unique status of the District of Columbia as

the seat of the government of the United States imposes

unusual costs and requirements which are not imposed on

other jurisdictions and many of which are not directly reimbursed by the Federal government.

(D) These factors play a significant role in causing the

relative tax burden on District residents to be greater than

the burden on residents in other jurisdictions in the Washington, D.C. metropolitan area and in other cities of comparable size.

(2) FEDERAL CONTRIBUTION.—There is authorized to be appropriated a Federal contribution towards the costs of the operation of the government of the Nation’s capital— (A) for fiscal year 1998, $190,000,000; and

(B) for each subsequent fiscal year, such amount as

may be necessary for such contribution.

In determining the amount appropriated pursuant to the authorization under this paragraph, Congress shall take into account the findings described in paragraph (1).

SEC. 11602. REQUIREMENT THAT THE DISTRICT OF COLUMBIA BALANCE ITS BUDGET IN FY 1998.

(a) IN GENERAL.—Section 201(c)(1) of the District of Columbia

Financial Responsibility and Management Assistance Act of 1995 is

amended—

(1) in subparagraph (A), by striking ‘‘1999’’ and inserting

‘‘1998’’; and

(2) in subparagraph (B), by striking ‘‘1996, 1997, and

1998,’’ and inserting ‘‘1996 and 1997,’’.

(b) CONFORMING AMENDMENT.—Section 603(f) of the District of

Columbia Self-Government and Governmental Reorganization Act

(DC Code, sec. 47–313(f)) is amended by striking ‘‘Act of 1995)—’’

and all that follows through ‘‘(2) the Council’’ and inserting ‘‘Act of

1995), the Council’’.
Sec. 11603 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 296

SEC. 11603. PERMITTING EXPEDITED SUBMISSION AND APPROVAL OF

CONSENSUS BUDGET AND FINANCIAL PLAN.

(a) FINDINGS.—Congress finds the following:

(1) The District of Columbia Financial Responsibility and

Management Assistance Act (hereafter in this subsection referred to as the ‘‘Act’’) was structured as to preserve the maximum prerogatives of each branch of elected self-government

consistent with returning the District of Columbia to full financial stability and health.

(2) The Act was intended to eliminate unnecessary bureaucratic barriers and procedures throughout the District government, including the budget process.

(3) Preservation of home rule and self-government are consistent with cooperation between elected officials and the Authority in drawing the annual budget and other matters affecting the District of Columbia government, and are preferable to

achieve greater efficiency, communication among the parties,

and avoidance of conflict and delay.

(b) IN GENERAL.—Section 202 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 is

amended by adding at the end the following new subsection:

‘‘(i) EXPEDITED SUBMISSION AND APPROVAL OF CONSENSUS

BUDGET AND FINANCIAL PLAN.—Notwithstanding any other provision of this section, if the Mayor, the Council, and the Authority

jointly develop a financial plan and budget for the fiscal year which

meets the requirements applicable under section 201 and which the

Mayor, Council, and Authority certify reflects a consensus among

them—

‘‘(1) such financial plan and budget shall serve as the

budget of the District government for the fiscal year adopted

by the Council under section 446 of the District of Columbia

Self-Government and Governmental Reorganization Act; and

‘‘(2) the Mayor shall transmit the financial plan and budget to the President and Congress under such section.’’.

(c) EFFECTIVE DATE.—The amendment made by subsection (b)

shall apply with respect to fiscal years beginning with fiscal year

1998.

SEC. 11604. INCREASE IN MAXIMUM AMOUNT OF PERMITTED DISTRICT BORROWING.

Section 603(b) of the District of Columbia Self-Government and

Governmental Reorganization Act (DC Code, sec. 47–313(b)) is

amended by striking ‘‘14 per centum’’ each place it appears in paragraph (1) and paragraph (3) and inserting ‘‘17 percent’’.

Subtitle H—Miscellaneous Provisions

CHAPTER 1—REGULATORY REFORM IN THE DISTRICT

OF COLUMBIA

SEC. 11701. REVIEW AND REVISION OF REGULATIONS AND PERMIT

AND APPLICATION PROCESSES.

(a) REVIEW OF CURRENT REGULATIONS BY AUTHORITY.—

(1) IN GENERAL.—Not later than 6 months after the date

of the enactment of this title, the District of Columbia Financial Responsibility and Management Assistance Authority shall
297 Sec. 11701 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

complete a review of regulations of the District of Columbia in

effect as of the date of the enactment of this title and analyze

the extent to which such regulations unnecessarily and inappropriately impair economic development in the District of Columbia and the financial stability and management efficiency

of the District of Columbia government. In carrying out such

review, the Authority shall include an explicit reference to each

recommendation made by the Business Regulatory Reform

Commission pursuant to the Business Regulatory Reform Commission Act of 1994 (D.C. Code, sec. 2–4101 et seq.), together

with specific findings and conclusions with respect to each such

recommendation. The Authority shall transmit the findings of

its review to the Mayor, Council, and Congress.

(2) REVISION.—Based on the review conducted under paragraph (1) and taking into account actions by the Council and

the Executive Branch of the District of Columbia government,

the Authority shall take such additional actions as it considers

appropriate to repeal or revise the regulations of the District

of Columbia, in accordance with (and subject to the terms and

conditions described in) section 207 of the District of Columbia

Financial Responsibility and Management Assistance Act of

1995.

(b) SURVEY AND REVISION OF PERMIT AND APPLICATION PROC- ESSES.—(1) IN GENERAL.—Not later than 6 months after the date

of the enactment of this title, the Authority shall complete a

review of the current processes of the District of Columbia for

obtaining permits and applications of all types and analyze the

extent to which such processes and their completion times vary

from the processes applicable in other jurisdictions. To the

greatest extent possible, such review shall take into account

the work and recommendations of the Business Regulatory Reform Commission pursuant to the Business Regulatory Reform

Commission Act of 1994 (DC Code, sec. 2–4101 et seq.) and

other existing and ongoing public and private regulatory reform efforts. The Authority shall transmit the findings of its

review to the Mayor, Council, and Congress.

(2) REVISION.—Based on the review conducted under paragraph (1) and taking into account actions by the Council and

the Executive Branch of the District of Columbia government,

the Authority shall take such additional actions as it considers

appropriate to repeal or revise the permit and application processes (and their completion times) of the District of Columbia,

in accordance with (and subject to the terms and conditions described in) section 207 of the District of Columbia Financial

Responsibility and Management Assistance Act of 1995. In carrying out such repeals or revisions, the Authority shall seek to

ensure that the average time required to obtain a permit or application from the District of Columbia is consistent with the

average time for other similar jurisdictions in the United

States.

(c) REPORTS TO CONGRESS.—Upon the expiration of the 6-

month period which begins on the date of the enactment of this

title and on a quarterly basis thereafter, the Authority shall submit

a report to Congress describing the steps taken to carry out the re-
Sec. 11702 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 298

quirements of this section and the effectiveness of the regulatory,

permit, and application processes of the District of Columbia.

SEC. 11702. REPEAL OF CLEAN AIR COMPLIANCE FEE ACT OF 1994.

(a) REPEAL.—

(1) IN GENERAL.—Effective March 21, 1995, the Clean Air

Compliance Fee Act of 1994 is hereby repealed (DC Code, sec.

47–2731 et seq.), except as provided in subsection (b).

(2) CONFORMING AMENDMENT.—Section 2(b)(2) of the Stable and Reliable Source of Revenues for WMATA Act of 1982

(DC Code, sec. 1–2466(b)(2)) is amended by striking subparagraph (H).

(b) EXCEPTION FOR PROVISIONS EXEMPTING DELIVERY OF NEWSPAPERS FROM APPLICATION OF CERTAIN TAXES.—Subsection (a)

shall not apply to section 14 of the Clean Air Compliance Fee Act

of 1994.

SEC. 11703. REPEAL REQUIREMENT FOR CONGRESSIONAL AUTHORIZATION OF CERTAIN MERGERS INVOLVING DISTRICT OF

COLUMBIA PUBLIC UTILITY CORPORATIONS.

Section 11 of the Act of March 4, 1913 (37 Stat. 1006; DC

Code, sec. 43–802) is hereby repealed.

SEC. 11704. EXEMPTION OF CERTAIN CONTRACTS FROM COUNCIL REVIEW.

(a) IN GENERAL.—Section 451 of the District of Columbia SelfGovernment and Governmental Reorganization Act (sec. 1–1130,

D.C. Code) is amended by adding at the end the following new subsection:

‘‘(d) EXEMPTION FOR CERTAIN CONTRACTS.—The requirements

of this section shall not apply with respect to any of the following

contracts:

‘‘(1) Any contract entered into by the Washington Convention Center Authority for preconstruction activities, project

management, design, or construction.

‘‘(2) Any contract entered into by the District of Columbia

Water and Sewer Authority established pursuant to the Water

and Sewer Authority Establishment and Department of Public

Works Reorganization Act of 1996, other than contracts for the

sale or lease of the Blue Plains Wastewater Treatment Plant.

‘‘(3) At the option of the Council, any contract for a highway improvement project carried out under title 23, United

States Code.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply with respect to contracts entered into on or after the

date of the enactment of this title.

CHAPTER 2—OTHER MISCELLANEOUS PROVISIONS

SEC. 11711. REVISIONS TO FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE ACT.

(a) USE OF INTEREST ON ACCOUNTS OF AUTHORITY FOR BENEFIT

OF DISTRICT.—Section 106 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 (DC Code, sec.

47–391.6) is amended by adding at the end the following new subsection:

‘‘(d) USE OF INTEREST ON ACCOUNTS FOR DISTRICT.—
299 Sec. 11712 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

‘‘(1) IN GENERAL.—Notwithstanding any other provision of

this Act, the Authority may transfer or otherwise expend any

amounts derived from interest earned on accounts held by the

Authority on behalf of the District of Columbia for such purposes as it considers appropriate to promote the economic stability and management efficiency of the District government.

‘‘(2) SPENDING NOT SUBJECT TO APPROPRIATION BY CON- GRESS.—Notwithstanding subsection (a)(3), any amounts transferred or otherwise expended pursuant to paragraph (1) may

be obligated or expended without approval by Act of Congress.’’.

(b) APPOINTMENT OF INSPECTOR GENERAL.—Section 303(e)(1) of

such Act (DC Code, sec. 1–1182.8 note) is amended by striking ‘‘the

Authority’’ and inserting ‘‘the Mayor’’.

SEC. 11712. COOPERATIVE AGREEMENTS BETWEEN FEDERAL AGENCIES AND METROPOLITAN POLICE DEPARTMENT.

(a) AGREEMENTS.—Each covered Federal law enforcement

agency may enter into a cooperative agreement with the Metropolitan Police Department of the District of Columbia to assist the Department in carrying out crime prevention and law enforcement activities in the District of Columbia, including taking appropriate

action to enforce subsection (e) (except that nothing in such an

agreement may be construed to grant authority to the United

States to prosecute violations of subsection (e)).

(b) CONTENTS OF AGREEMENT.—An agreement entered into between a covered Federal law enforcement agency and the Metropolitan Police Department pursuant to this section may include

agreements relating to—

(1) sending personnel of the agency on patrol in areas of

the District of Columbia which immediately surround the area

of the agency’s jurisdiction, and granting personnel of the

agency the power to arrest in such areas;

(2) sharing and donating equipment and supplies with the

Metropolitan Police Department;

(3) operating on shared radio frequencies with the Metropolitan Police Department;

(4) permitting personnel of the agency to carry out processing and papering of suspects they arrest in the District of

Columbia; and

(5) such other items as the agency and the Metropolitan

Police Department may agree to include in the agreement.

(c) COORDINATION WITH U.S. ATTORNEY’S OFFICE.—Agreements

entered into pursuant to this section shall be coordinated in advance with the United States Attorney for the District of Columbia.

(d) COVERED FEDERAL LAW ENFORCEMENT AGENCIES DESCRIBED.—In this section, the term ‘‘covered Federal law enforcement agency’’ means any of the following:

(1) United States Capitol Police.

(2) United States Marshals Service.

(3) Library of Congress Police.

(4) Bureau of Engraving and Printing Police Force.

(5) Supreme Court Police.

(6) Amtrak Police Department.

(7) Department of Protective Services, United States Holocaust Museum.
Sec. 11713 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 300

(8) Government Printing Office Police.

(9) United States Park Police.

(10) Bureau of Alcohol, Tobacco, and Firearms.

(11) Drug Enforcement Administration.

(12) Federal Bureau of Investigation.

(13) Criminal Investigation Division, Internal Revenue

Service.

(14) Department of the Navy Police Division, Naval District Washington.

(15) Naval Criminal Investigative Service.

(16) 11th Security Police Squadron, Bolling Air Force Base.

(17) United States Army Military District of Washington.

(18) United States Customs Service.

(19) Immigration and Naturalization Service.

(20) Postal Inspection Service, United States Postal Service.

(21) Uniformed Division, United States Secret Service.

(22) United States Secret Service.

(23) National Zoological Part Police.

(24) Federal Protective Service, General Services Administration, National Capital Region.

(25) Defense Protective Service, Department of Defense

Washington Headquarters Services.

(26) Office of Protective Services, Smithsonian Institution.

(27) Office of Protective Services, National Gallery of Art.

(28) United States Army Criminal Investigation Command,

Department of the Army Washington District, 3rd Military Police Group.

(29) Marine Corps Law Enforcement.

(30) Department of State Diplomatic Security.

(31) United States Coast Guard.

(32) United States Postal Police.

(33) Any other law enforcement agency of the Federal government that the Chief of the Metropolitan Police Department

and the United States Attorney for the District of Columbia

deem appropriate to enter into an agreement pursuant to this

section.

(e) CERTAIN PROHIBITED ACTIVITY.—Effective with respect to

conduct occurring on or after the date of the enactment of this title,

whoever in the District of Columbia knowingly and willfully obstructs any bridge connecting the District of Columbia and the

Commonwealth of Virginia—

(1) shall be fined not less than $1,000 and not more than

$5,000, and in addition may be imprisoned not more than 30

days; or

(2) if applicable, shall be subject to prosecution by the District of Columbia under the provisions of District law and regulation amended by the Safe Streets Anti-Prostitution Amendment Act of 1996 (D.C. Law 11–130).

SEC. 11713. PERMITTING GARNISHMENT OF WAGES OF OFFICERS AND

EMPLOYEES OF DISTRICT OF COLUMBIA GOVERNMENT.

Section 2 of D.C. Law 2–14 (DC Code, sec. 1–516) is

amended—

(1) by striking ‘‘After July 25’’ and inserting ‘‘(a) After July

25’’; and
301 Sec. 11717 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997

8Section 157(f) of the District of Columbia Appropriations Act, 1998 (Public Law 105–100, 111

Stat. 2187, Nov. 19, 1997) repealed section 11715.

(2) by adding at the end the following new subsection:

‘‘(b) After October 1, 1997, wages salaries, annuities, retirement and disability benefits, and other remuneration based upon

employment, or other income owed by, due from, and payable by

the government of the District of Columbia to any individual shall

be subject to attachment, garnishment, assignment, or withholding

in accordance with subchapter III of chapter 5 of title 16 of the District of Columbia Code in the same manner and to the same extent

as if the government of the District of Columbia were a private person.’’.

SEC. 11714. PERMITTING EXCESS APPROPRIATIONS BY WATER AND

SEWER AUTHORITY FOR CAPITAL PROJECTS.

(a) IN GENERAL.—Section 445A of the District of Columbia

Self-Government and Governmental Reorganization Act (DC Code,

sec. 43–1691), as added by section 4(a) of the District of Columbia

Water and Sewer Authority Act of 1996, is amended—

(1) by striking ‘‘The District’’ and inserting ‘‘(a) IN GENERAL.—The District’’; and

(2) by adding at the end the following new subsection:

‘‘(b) PERMITTING EXPENDITURE OF EXCESS REVENUES FOR CAPITAL PROJECTS IN EXCESS OF BUDGET.—Notwithstanding the

amount appropriated for the District of Columbia Water and Sewer

Authority for capital projects for a fiscal year, if the revenues of the

Authority for the year exceed the estimated revenues of the Authority provided in the annual budget of the District of Columbia

for the fiscal year, the Authority may obligate or expend an additional amount for capital projects during the year equal to the

amount of such excess revenues.’’.

(b) CONFORMING AMENDMENT.—The fourth sentence of section

446 of such Act (DC Code, sec. 47–304), as amended by section

2(c)(2) of the District of Columbia Water and Sewer Authority Act

of 1996, is amended by striking ‘‘in section 467(d)’’ and inserting

‘‘in section 445A(b), section 467(d)’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply with respect to fiscal years beginning on or after October 1, 1996.

øSEC. 11715. REPEALED.8¿

SEC. 11716. REPEAL TERM OF DEED OF CONVEYANCE TO CERTAIN

HOSPITAL.

Section 2 of the Act of June 6, 1952 (chapter 486; 66 Stat. 288)

(DC Code, sec. 32–121) is hereby repealed.

SEC. 11717. SHORT TITLE OF HOME RULE ACT.

(a) IN GENERAL.—Section 101 of the District of Columbia SelfGovernment and Governmental Reorganization Act is amended by

striking ‘‘District of Columbia Self-Government and Governmental

Reorganization Act’’ and inserting ‘‘District of Columbia Home Rule

Act’’.

(b) REFERENCES IN LAW.—Any reference in law or regulation to

the District of Columbia Self-Government and Governmental Reorganization Act shall be deemed to be a reference to the District of

Columbia Home Rule Act.
Sec. 11721 NATIONAL CAPITAL REVITALIZATION & SELF-GOVT. ACT OF 1997 302

CHAPTER 3—EFFECTIVE DATE; GENERAL PROVISIONS

SEC. 11721. ø18 U.S.C. 4246 note¿ EFFECTIVE DATE.

Except as otherwise provided in this title, the provisions of this

title shall take effect on the later of October 1, 1997, or the day

the District of Columbia Financial Responsibility and Management

Assistance Authority certifies that the financial plan and budget

for the District government for fiscal year 1998 meet the requirements of section 201(c)(1) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, as amended

by this title.

SEC. 11722. TECHNICAL ASSISTANCE.

Any Federal agency (as defined in section 101 of title 31,

United States Code) may provide, at the discretion of the head of

the agency, technical assistance to, and training for, personnel of

the Government of the District of Columbia. Such assistance shall

be limited to assistance that does not interfere with the mission of

the agency. The authority provided by this section shall expire

three years from the date of enactment of this statute.

SEC. 11723. LIABILITY.

(a) DISTRICT OF COLUMBIA.—The District of Columbia shall defend any civil action or proceeding pending on the effective date of

this title in any court or other official municipal, state, or federal

forum against the District of Columbia or its officers, employees, or

agents, and shall assume any liability resulting from such an action or proceeding.

(b) STATE JUSTICE INSTITUTE.—The State Justice Institute

shall not be liable for damages or equitable relief on the basis of

the activities or operations of any federal or District of Columbia

agency which receives funds through the State Justice Institute

pursuant to this title.

(c) UNITED STATES.—The United States, its officers, employees,

and agents, and its agencies shall not—

(1) be responsible for the payment of any judgments, liabilities or costs resulting from any action or proceeding against

the District of Columbia or its agencies, officers, employees, or

agents;

(2) be subject to liability in any case on the basis of the

activities of the District of Columbia or its agencies, officers,

employees, or agents; or

(3) be subject to liability in any case under section 1979 of

the Revised Statutes (42 U.S.C. 1983).

(d) LIMITATIONS.—Nothing in this section shall be construed as

a waiver of sovereign immunity, or as limiting any other defense

or immunity that would otherwise be available to the United

States, the District of Columbia, their agencies, officers, employees,

or agents.