PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 97

Public Law 104–8

104th Congress

An Act

To eliminate budget deficits and management inefficiencies in the government of

the District of Columbia through the establishment of the District of Columbia

Financial Responsibility and Management Assistance Authority, and for other

purposes.

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.

TITLE II—RESPONSIBILITIES OF AUTHORITY

Subtitle A—Establishment and Enforcement of Financial Plan and Budget

for District Government

Sec. 201. Development of financial plan and budget for District of Columbia.

Sec. 202. Process for submission and approval of financial plan and annual District

budget.

Sec. 203. Review of activities of District government to ensure compliance with approved financial plan and budget.

Sec. 204. Restrictions on borrowing by District during control year.

‘‘Sec. 601. Transitional provision for short-term advances.

‘‘Sec. 602. Short-term advances for seasonal cash-flow management.

‘‘Sec. 603. Security for advances.

‘‘Sec. 604. Reimbursement to the Treasury.

‘‘Sec. 605. Definitions.

Sec. 205. Deposit of annual Federal payment with Authority.

Sec. 206. Effect of finding of non-compliance with financial plan and budget.

Sec. 207. Recommendations on financial stability and management responsibility.

Sec. 208. Special rules for fiscal year 1996.

Sec. 209. Control periods described.

Subtitle B—Issuance of Bonds

Sec. 211. Authority to issue bonds.

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

District of

Columbia

Financial

Responsibility

and Management

Assistance Act of

1995.

Apr. 17, 1995

[H.R. 1345]
109 STAT. 98 PUBLIC LAW 104–8—APR. 17, 1995

Sec. 213. Establishment of debt service reserve fund.

Sec. 214. Other requirements for issuance of bonds. Sec. 215. No full faith and credit of the United States.

Subtitle C—Other Duties of Authority

Sec. 221. Duties of Authority during year other than control year. Sec. 222. General assistance in achieving financial stability and management efficiency. Sec. 223. Obtaining reports. Sec. 224. Reports and comments.

TITLE III—MISCELLANEOUS PROVISIONS

Sec. 301. Other District budget reforms. Sec. 302. Establishment of Chief Financial Officer of District of Columbia.

Sec. 303. Revisions to powers and duties of Inspector General of District of Columbia.

Sec. 304. Council approval of certain contracts. Sec. 305. Definitions.

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

long-term 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:
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 99

(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.
109 STAT. 100 PUBLIC LAW 104–8—APR. 17, 1995

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.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 101

(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 govern- ment (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 by-laws,

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 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.

Records.

Public

information.
109 STAT. 102 PUBLIC LAW 104–8—APR. 17, 1995

(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 PROCURE- MENT 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.—A Federal employee who, within 2 months

after separating from the Federal Government, becomes

employed by the Authority—

(A) may elect, for purposes of the retirement system

in which that individual last participated before so separating, to have such individual’s period of service with the

Authority treated in the same way as if performed in

the position within the Federal Government from which

separated, subject to the requisite employee deductions

and agency contributions being currently deposited in the

appropriate fund; and

(B) if, after serving with the Authority, such employee

becomes reemployed by the Federal Government, shall be

entitled to credit, for the full period of such individual’s

service with the Authority, for purposes of determining

the applicable leave accrual rate.

(2) RETIREMENT.—

(A) CONTRIBUTIONS.—For purposes of subparagraph (A)

of paragraph (1)—

(i) the employee deductions referred to in such

paragraph shall be made from basic pay for service

with the Authority, and shall be computed using the

same percentage as would then apply if the individual

were instead serving in the position within the Federal

Government from which separated; and

(ii) the agency contributions referred to in such

paragraph shall be made by the Authority.

(B) DOUBLE COVERAGE NOT PERMITTED.—An individual who makes an election under paragraph (1)(A) shall
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 103

be ineligible, while such election remains in effect, to

participate in any retirement system for employees of the

government of the District of Columbia.

(3) REGULATIONS.—The Office of Personnel Management

shall prescribe such regulations as may be necessary to carry

out this subsection. Regulations to carry out paragraph (1)(A)

shall be prescribed in consultation with the office or agency

of the government of the District of Columbia having jurisdiction over any retirement system referred to in paragraph (2)(B).

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) 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.—

(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.
109 STAT. 104 PUBLIC LAW 104–8—APR. 17, 1995

(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 may 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.

(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,

including (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.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 105

SEC. 104. EXEMPTION FROM LIABILITY FOR CLAIMS.

The Authority and its members may not be liable for any

obligation of or claim against 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 DISTRICT

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 part D of title IV of the District of Columbia SelfGovernment 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.
109 STAT. 106 PUBLIC LAW 104–8—APR. 17, 1995

(3) APPROPRIATIONS REQUIRED.—No amount may be obli- gated 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).

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

105 Stat. 539.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 107

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 AUTHORITY.—Section 602(a) of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 1–233(a), D.C.

Code) is amended—

(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.

87 Stat. 813.
109 STAT. 108 PUBLIC LAW 104–8—APR. 17, 1995

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.—

(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:
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 109

(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 1999)

may not exceed the revenues of the District government

for each such fiscal year. (B) During fiscal years 1996, 1997, and 1998, 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

short-term 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.

(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

108 Stat. 2590.
109 STAT. 110 PUBLIC LAW 104–8—APR. 17, 1995

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 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
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 111

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

FINANCIAL 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

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
109 STAT. 112 PUBLIC LAW 104–8—APR. 17, 1995

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 section 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
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 113

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

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,
109 STAT. 114 PUBLIC LAW 104–8—APR. 17, 1995

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

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

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

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)
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 115

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—

(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

87 Stat. 814.
109 STAT. 116 PUBLIC LAW 104–8—APR. 17, 1995

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 EXPENDITURES

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 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’’.

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 accom105 Stat. 540.

87 Stat. 803.

87 Stat. 788.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 117

panying 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.

(C) EXCEPTION FOR EMERGENCY ACTS.—Subparagraphs

(A) and (B) shall not apply with respect to any act which

the Council determines according to section 412(a) of the

District of Columbia Self-Government and Governmental

Reorganization Act should take effect immediately because

of emergency circumstances.

(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 which begins

on the date the Council submits the Act to the Authority,

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’’ 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.
109 STAT. 118 PUBLIC LAW 104–8—APR. 17, 1995

(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 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.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 119

(4) SPECIAL RULE FOR CONTRACTS SUBJECT TO COUNCIL

APPROVAL.—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.

(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 borrowing 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 SelfGovernment 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
109 STAT. 120 PUBLIC LAW 104–8—APR. 17, 1995

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 FIS- CAL 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.—

(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:
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 121

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

‘‘(a) TRANSITIONAL SHORT-TERM ADVANCES MADE BEFORE OCTO- BER 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

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;
109 STAT. 122 PUBLIC LAW 104–8—APR. 17, 1995

‘‘(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 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
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 123

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

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
109 STAT. 124 PUBLIC LAW 104–8—APR. 17, 1995

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 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, 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’;
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 125

‘‘(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

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
109 STAT. 126 PUBLIC LAW 104–8—APR. 17, 1995

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

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 Respon-
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 127

sibility 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

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
109 STAT. 128 PUBLIC LAW 104–8—APR. 17, 1995

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.

‘‘(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.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 129

‘‘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.—

‘‘(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 APPROVED.—

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 APPROVED.—

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).
109 STAT. 130 PUBLIC LAW 104–8—APR. 17, 1995

‘‘(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

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
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 131

‘‘(5) the term ‘Secretary’ means the Secretary of the Treasury.’’.

(d) 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) 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.

(e) 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 pending against the Authority challenging the establishment

of or any action taken by the Authority.

SEC. 205. DEPOSIT OF ANNUAL FEDERAL PAYMENT WITH AUTHORITY.

(a) IN GENERAL.— (1) DEPOSIT INTO ESCROW ACCOUNT.—In the case of a fiscal

year which is a control year, the Secretary of the Treasury

shall deposit the annual Federal payment to the District of

Columbia for the year authorized under title V of the District

of Columbia Self-Government and Governmental Reorganization Act into an escrow account held by the Authority, which

shall allocate the funds to the Mayor at such intervals and

in accordance with such terms and conditions as it considers

appropriate to implement the financial plan for the year. In

establishing such terms and conditions, the Authority shall

give priority to using the Federal payment for cash flow

management and the payment of outstanding bills owed by

the District government. (2) EXCEPTION FOR AMOUNTS WITHHELD FOR ADVANCES.— Paragraph (1) shall not apply with respect to any portion of

the Federal payment which is withheld by the Secretary of

the Treasury in accordance with section 604 of title VI of

the District of Columbia Revenue Act of 1939 (as added by

section 204(c)) to reimburse the Secretary for advances made

under title VI of such Act.

(b) 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 paragraph (1) 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.

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
109 STAT. 132 PUBLIC LAW 104–8—APR. 17, 1995

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

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) 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.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 133

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;

(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
109 STAT. 134 PUBLIC LAW 104–8—APR. 17, 1995

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. 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
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 135

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 revisions 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
109 STAT. 136 PUBLIC LAW 104–8—APR. 17, 1995

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. 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 Co-
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 137

lumbia 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.

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 INDEPENDENT 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 repay-
109 STAT. 138 PUBLIC LAW 104–8—APR. 17, 1995

ment 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

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
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 139

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 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

BORROWING.—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 Self-
109 STAT. 140 PUBLIC LAW 104–8—APR. 17, 1995

Government 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

government 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 trans- mission 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:

108 Stat. 3488.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 141

‘‘(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 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 GOVERN- MENT.—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.

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.’’.

87 Stat. 777.
109 STAT. 142 PUBLIC LAW 104–8—APR. 17, 1995

(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 PAYMENT.—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.—

‘‘(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 Colum87 Stat. 789.

108 Stat. 3488.

87 Stat. 814.

87 Stat. 798.

87 Stat. 801.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 143

bia (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

OFFICER.—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.

‘‘(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.
109 STAT. 144 PUBLIC LAW 104–8—APR. 17, 1995

‘‘(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;

‘‘(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
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 145

‘‘(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.

‘‘(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.
109 STAT. 146 PUBLIC LAW 104–8—APR. 17, 1995

‘‘(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 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—

Reports.

Reports.

Reports.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 147

‘‘(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.

‘‘(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

87 Stat. 791.

Reports.
109 STAT. 148 PUBLIC LAW 104–8—APR. 17, 1995

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.

‘‘(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.

Establishment.

Repeal.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 149

‘‘(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:

‘‘(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).’’.

Audits.
109 STAT. 150 PUBLIC LAW 104–8—APR. 17, 1995

(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.—

(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 CONTROL

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,’’.

Reports.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 151

(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 Authority 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 subsection

(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

87 Stat. 803.
109 STAT. 152 PUBLIC LAW 104–8—APR. 17, 1995

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

Self-Government and Governmental Reorganization Act or any

other agency, board, or commission established by the Mayor

or the Council; the courts of the District of Columbia; 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.

87 Stat. 775.
PUBLIC LAW 104–8—APR. 17, 1995 109 STAT. 153

LEGISLATIVE HISTORY—H.R. 1345:

HOUSE REPORTS: No. 104–96 (Comm. on Government Reform and Oversight).

CONGRESSIONAL RECORD, Vol. 141 (1995):

Apr. 3, considered and passed House.

Apr. 6, considered and passed Senate, amended.

Apr. 7, House concurred in Senate amendments.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 31 (1995):

Apr. 17, Presidential remarks.

Æ

(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.

Approved April 17, 1995.