H. R. 1345—2
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 effi-
ciency.
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 Colum-
bia.
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 govern-
ment fails to provide its citizens with effective and efficient
services in areas such as education, health care, crime preven-
tion, 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 caus-
ing 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 effec-
tively 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 eco-
nomic 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 govern-
ment 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:
H. R. 1345—3
(1) To eliminate budget deficits and cash shortages of the
District of Columbia through visionary financial planning,
sound budgeting, accurate revenue forecasts, and careful spend-
ing.
(2) To ensure the most efficient and effective delivery of
services, including public safety services, by the District govern-
ment 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 Fed-
eral 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 relation-
ship between the District government and the Federal Govern-
ment.
(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-Govern-
ment and Governmental Reorganization Act (pertaining to the
organization, powers, and jurisdiction of the District of Colum-
bia 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.
H. R. 1345—4
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 estab-
lished 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 Govern-
mental 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 mem-
bers of the Authority as the Chair of the Authority.
(4) SENSE OF CONGRESS REGARDING DEADLINE FOR APPOINT-
MENT.—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.
H. R. 1345—5
(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 Colum-
bia or has a primary place of business in the District of Colum-
bia.
(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 appoint-
ment 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 para-
graph (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 Finan-
cial Officer of the District of Columbia under section 424
of the District of Columbia Self-Government and Govern-
mental 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 appro-
priate 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 Execu-
tive 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.
H. R. 1345—6
(b) STAFF.—With the approval of the Chair, the Executive Direc-
tor 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 provi-
sions 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 provi-
sions 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 AUTHOR-
ITY.—
(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 separat-
ing, 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 individ-
ual who makes an election under paragraph (1)(A) shall
H. R. 1345—7
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 jurisdic-
tion over any retirement system referred to in paragraph (2)(B).
SEC. 103. POWERS OF AUTHORITY.
(a) HEARINGS AND SESSIONS.—The Authority may, for the pur-
pose 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 sec-
tions 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 Author-
ity 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 inves-
tigation 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.
H. R. 1345—8
(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 requir-
ing that person to appear before the Authority to give testi-
mony, 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 Author-
ity 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 sup-
port services necessary for the Authority to carry out its responsibil-
ities 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 responsibil-
ities under this Act.
(i) PENALTIES.—
(1) ACTS PROHIBITED.—Any officer or employee of the Dis-
trict 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 imme-
diately report to the Board all pertinent facts together with
a statement of the action taken thereon.
H. R. 1345—9
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 provi-
sion 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 declara-
tory 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 Self-
Government and Governmental Reorganization Act not later
than the May 1 prior to the first day of the fiscal year. In
the case of the budget for fiscal year 1996, the Authority
shall submit its proposed budget not later than July 15, 1995.
(2) CONTENTS
OF
BUDGET.—The budget shall describe—
(A) expenditures of the Authority by each object class,
including expenditures for staff of the Authority;
(B) services of personnel and other services provided
by or on behalf of the Authority for which the Authority
made no reimbursement; and
(C) any gifts or bequests made to the authority during
the previous fiscal year.
H. R. 1345—10
(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 Dis-
trict of Columbia Self-Government and Governmental Reorga-
nization 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 Manage-
ment 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 Presi-
dent—
(1) a request for reprogramming of funds under subsection
(c)(1); and
(2) a description of anticipated expenditures of the Author-
ity 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 appro-
priated 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
H. R. 1345—11
after the Authority suspends its activities under subsection (a),
the President shall appoint members of the Authority, and the
Authority shall carry out activities under this Act, in the same
manner as the President appointed members and the Authority
carried out activities prior to such suspension.
SEC. 108. APPLICATION OF LAWS OF DISTRICT OF COLUMBIA TO
AUTHORITY.
(a) IN GENERAL.—The following laws of the District of Columbia
(as in effect on the date of the enactment of this Act) shall apply
to the members and activities of the Authority:
(1) Section 742 of the District of Columbia Self-Government
and Governmental Reorganization Act (sec. 1–1504, D.C. Code).
(2) Sections 201 through 206 of the District of Columbia
Freedom of Information Act (secs. 1–1521 through 1–1526, D.C.
Code).
(3) Section 601 of the District of Columbia Campaign
Finance Reform and Conflict of Interest Act (sec. 1–1461, D.C.
Code).
(b) NO CONTROL, SUPERVISION, OVERSIGHT, OR REVIEW
BY
MAYOR OR COUNCIL.—
(1) IN GENERAL.—Neither the Mayor nor the Council may
exercise any control, supervision, oversight, or review over the
Authority or its activities.
(2) PROHIBITION AGAINST LEGISLATION AFFECTING AUTHOR-
ITY.—Section 602(a) of the District of Columbia Self-Govern-
ment 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 Manage-
ment 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 CORPORA-
TION 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 Corpora-
tion Counsel of the District of Columbia.
H. R. 1345—12
TITLE II—RESPONSIBILITIES OF
AUTHORITY
Subtitle A—Establishment and Enforce-
ment of Financial Plan and Budget for
District Government
SEC. 201. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR DIS-
TRICT 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 esti-
mates 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:
H. R. 1345—13
(A) In the case of the financial plan and budget for
fiscal year 1996, the expenditures of the District govern-
ment 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 Dis-
trict 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 state-
ments 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 with-
drawn 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 govern-
ment.
(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
H. R. 1345—14
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 finan-
cial 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 expla-
nation 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 Reorganiza-
tion 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-Govern-
ment and Governmental Reorganization Act, as amended by
subsection (f)(2)), the Authority shall promptly review the finan-
cial plan and budget. In conducting the review, the Authority
H. R. 1345—15
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 finan-
cial 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 Dis-
trict 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 para-
graph (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 subpara-
graph (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 para-
graph (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 expla-
nation 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
H. R. 1345—16
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 state-
ment, 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 require-
ments 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 Dis-
trict 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 Presi-
dent, 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 Con-
gress.
(ii) TRANSMISSION
OF
REJECTED
FINANCIAL
PLAN
AND BUDGET.—The Council shall promptly submit the
revised financial plan and budget disapproved by the
Authority under this subparagraph to the Mayor for
transmission to the President and Congress under sec-
tion 446 of the District of Columbia Self-Government
and Governmental Reorganization Act.
(D) DEEMED APPROVAL AFTER 15 DAYS.—
(i) IN GENERAL.—If the Authority has not provided
the Mayor, the Council, the President, and Congress
with a notice certifying approval under subparagraph
(B)(i) or a statement of disapproval under subpara-
graph (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
H. R. 1345—17
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 Coun-
cil, the President, and Congress with the notice certify-
ing 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 expla-
nation 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 deter-
mines 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 pro-
vide 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 dis-
approval 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 require-
ments applicable under section 201—
(i) the Authority shall approve the financial plan
and budget and shall provide the Mayor, the Council,
H. R. 1345—18
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 sec-
tion 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 contain-
ing 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 subpara-
graph (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 Coun-
cil, the President, and Congress with the notice certify-
ing 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 expla-
nation 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.—Not-
withstanding the first sentence of section 446 of the District
of Columbia Self-Government and Governmental Reorga-
nization 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)
H. R. 1345—19
the financial plan and budget recommended by the Author-
ity 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 APPROPRIA-
TIONS.—To the extent that a proposed revision to a financial
plan and budget adopted by the Council pursuant to this sub-
section 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 REQUIRE-
MENTS 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
H. R. 1345—20
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 Finan-
cial 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 Finan-
cial 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 Govern-
mental 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 accom-
H. R. 1345—21
panying such Act required under section 602(c)(3) of the District
of Columbia Self-Government and Governmental Reorganiza-
tion 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 Author-
ity 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 finan-
cial 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 appro-
priate, 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 Author-
ity, 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.
H. R. 1345—22
(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 subpara-
graph.
(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 govern-
ment 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.
H. R. 1345—23
(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 con-
tract 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 accord-
ance with paragraph (1).
SEC. 204. RESTRICTIONS ON BORROWING BY DISTRICT DURING CON-
TROL 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
PER-
MITTED.—If the Authority determines that the borrowing pro-
posed 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 Self-
Government and Governmental Reorganization Act, the exer-
cise of authority to obtain funds from the United States Treas-
ury 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 FIS-
CAL YEAR 1995.—
(A) NO
PRIOR
APPROVAL
REQUIRED
DURING
INITIAL
PERIOD
FOLLOWING
APPOINTMENT.—The District govern-
ment may requisition advances from the United States
Treasury under title VI of the District of Columbia Revenue
H. R. 1345—24
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 dis-
charge 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 (begin-
ning 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 condi-
tions 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 insert-
ing the following:
H. R. 1345—25
‘‘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 govern-
ment 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 Sec-
retary—
‘‘(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 effec-
tively unable to obtain credit in the public credit mar-
kets or elsewhere in sufficient amounts and on suffi-
ciently reasonable terms to meet the District govern-
ment’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 Fed-
eral payment to the District of Columbia under title V
of the District of Columbia Self-Government and Govern-
mental 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 Respon-
sibility 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 sub-
section 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;
H. R. 1345—26
‘‘(ii) the total amount requisitioned under this sub-
section 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 sub-
section 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 deter-
mines that the amount designated in the Mayor’s requisi-
tion 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 require-
ments 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 para-
graph, the ‘fiscal year 1995 limit’ means the amount author-
ized 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 requisi-
tion for such advance.
‘‘(B) LATEST
PERMISSIBLE
MATURITY
DATE.—Notwith-
standing 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 sub-
section 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 Assist-
ance Act of 1995) the Authority delivers a letter requesting
the Secretary to deposit all advances made under this
H. R. 1345—27
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 Sec-
retary’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 Manage-
ment 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
H. R. 1345—28
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 satis-
fied, 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
OUTSTAND-
ING.—The sum of the anticipated principal and interest
requirements of all advances made under this para-
graph 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 para-
graph, the ‘fiscal year 1996 limit’ means the amount author-
ized 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’;
H. R. 1345—29
‘‘(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 Sec-
retary’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
H. R. 1345—30
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 satis-
fied, 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
OUTSTAND-
ING.—The sum of the anticipated principal and interest
requirements of all advances made under this para-
graph 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 Reorga-
nization 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 satis-
fied, the Secretary shall make an advance of funds from time
to time, out of any money in the Treasury not otherwise appro-
priated, 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 submit-
ted 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-
H. R. 1345—31
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 suffi-
ciently reasonable terms to meet the District government’s
financing needs;
‘‘(5) the Inspector General of the District of Columbia cer-
tifies 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 Sec-
retary 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
H. R. 1345—32
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 author-
ized under title V of the District of Columbia Self-Govern-
ment and Governmental Reorganization Act for appropria-
tion 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.—Notwithstand-
ing 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 Sec-
retary into an escrow account held by the Authority.
H. R. 1345—33
‘‘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 col-
lected 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 govern-
ment 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).
H. R. 1345—34
‘‘(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 govern-
ment does not make such reimbursement payment, the Secretary
shall take the actions listed in this subsection.
‘‘(1) WITHHOLD ANNUAL FEDERAL PAYMENT.—Notwithstand-
ing 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 appro-
priated to the District government for any fiscal year under
title V of the District of Columbia Self-Government and Govern-
mental 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 reimburse-
ment 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 Treas-
ury 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
H. R. 1345—35
‘‘(5) the term ‘Secretary’ means the Secretary of the Treas-
ury.’’.
(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 sub-
section (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 pursu-
ant 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 Reorganiza-
tion 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 para-
graph (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, expendi-
tures, 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 sub-
section (a), independent audits, or such other information as the
Authority may obtain, that the revenues or expenditures of the
H. R. 1345—36
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 Treas-
ury, and Congress that the District government is at variance
with the financial plan and budget unless—
(A)(i) the additional information provides an expla-
nation 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 inconsist-
ency 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 Dis-
trict 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 govern-
ment 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 (includ-
ing 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 govern-
ment; 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 mak-
ing entitlement or benefit payments to individuals), in such
amounts and under such other conditions as the Authority
may specify.
H. R. 1345—37
SEC. 
207. 
RECOMMENDATIONS 
ON 
FINANCIAL 
STABILITY 
AND
MANAGEMENT RESPONSIBILITY.
(a) IN GENERAL.—The Authority may at any time submit rec-
ommendations to the Mayor, the Council, the President, and Con-
gress 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, plac-
ing controls on expenditures for personnel, reducing benefit
costs, reforming procurement practices, and placing other con-
trols 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 employ-
ees;
(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 train-
ing 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 rec-
ommendations.
(2) IMPLEMENTATION
PLAN
REQUIRED
FOR
ADOPTED
REC-
OMMENDATIONS.—If the Mayor or the Council (whichever is
applicable) notifies the Authority and Congress under para-
graph (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
H. R. 1345—38
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 para-
graph (1) that the District government will not adopt any
recommendation submitted under subsection (a) which the Dis-
trict 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 Con-
gress 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 Commit-
tee 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 Con-
gress under section 446 of the District of Columbia Self-Govern-
ment 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-Govern-
ment 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 Reorganiza-
tion Act, and shall submit any recommendations for modifica-
tions 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 recommenda-
tions of the Authority submitted under paragraph (1), the Coun-
cil (in consultation with the Mayor) shall promptly adopt a
revised budget for the fiscal year (in this section referred to
H. R. 1345—39
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 Govern-
mental Reorganization Act, as amended by section 202(f)(2)),
and shall include in the report such recommendations for revi-
sions to the transition budget as the Authority considers appro-
priate to promote the financial stability of the District govern-
ment 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 estab-
lished by the Authority).
(2) ADOPTION BY COUNCIL.—In accordance with the proce-
dures 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 Coun-
cil (and, in the case of a financial plan and budget dis-
approved 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 supple-
mental budget request for fiscal year 1996 (in accordance
with section 446 of the District of Columbia Self-Govern-
ment 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 FINAN-
CIAL
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 Presi-
dent 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
H. R. 1345—40
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 CER-
TIFICATION 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 Colum-
bia, 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 pursu-
ant to such authority.
(2) The failure of the District government to provide suffi-
cient 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 com-
prehensive annual financial report for the District of Co-
H. R. 1345—41
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 INDEPEND-
ENT
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-
H. R. 1345—42
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 Author-
ity 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 estab-
lished 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 estab-
lished 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 incre-
ments to, any debt service reserve fund due to the invest-
ment 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 pur-
poses 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
H. R. 1345—43
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 require-
ment 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 CON-
TROL YEAR.
(a) IN GENERAL.—During the period beginning upon the termi-
nation 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 Author-
ity shall prepare a report analyzing the budget and submit
the report to the Mayor, the Council, the President, and Con-
gress.
(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 deter-
mines 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-
H. R. 1345—44
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 effi-
ciency, including—
(1) assisting the District government in avoiding defaults,
eliminating and liquidating deficits, maintaining sound budg-
etary 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 submit-
ting copies of any reports regarding revenues, expenditures, budg-
ets, costs, plans, operations, estimates, and other financial or budg-
etary 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 meet-
ing 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: