II
Calendar No. 49
104TH CONGRESS
1ST SESSION
H. R. 1345
IN THE SENATE OF THE UNITED STATES
APRIL 4 (legislative day, MARCH 27), 1995
Received; read twice and ordered placed on the calendar
AN ACT
To eliminate budget deficits and management inefficiencies
in the government of the District of Columbia through
the establishment of the District of Columbia Financial
Responsibility and Management Assistance Authority,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘District of Columbia Financial Responsibility and Man-
agement Assistance Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings; purpose.
TITLE I—ESTABLISHMENT AND ORGANIZATION OF AUTHORITY
Sec. 101. District of Columbia Financial Responsibility and Management As-
sistance Authority.
Sec. 102. Executive director and staff of Authority.
Sec. 103. Powers of Authority.
Sec. 104. Exemption from liability for claims.
Sec. 105. Treatment of actions arising from act.
Sec. 106. Funding for operation of Authority.
Sec. 107. Suspension of activities.
Sec. 108. Application of laws of District of Columbia to Authority.
TITLE II—RESPONSIBILITIES OF AUTHORITY
Subtitle A—Establishment and Enforcement of Financial Plan
and Budget for District Government
Sec. 201. Development of financial plan and budget for District of Columbia.
Sec. 202. Process for submission and approval of financial plan and annual
District budget.
Sec. 203. Review of activities of District government to ensure compliance with
approved financial plan and budget.
Sec. 204. Restrictions on borrowing by District during control year.
‘‘Sec. 601. Transitional provision for short-term advances.
‘‘Sec. 602. Short-term advances for seasonal cash-flow management.
‘‘Sec. 603. Security for advances.
‘‘Sec. 604. Reimbursement to the Treasury.
‘‘Sec. 605. Definitions.
Sec. 205. Deposit of annual Federal payment with Authority.
Sec. 206. Effect of finding of non-compliance with financial plan and budget.
Sec. 207. Recommendations on financial stability and management responsibil-
ity.
Sec. 208. Special rules for fiscal year 1996.
Sec. 209. Control periods described.
Subtitle B—Issuance of Bonds
Sec. 211. Authority to issue bonds.
Sec. 212. Pledge of security interest in revenues of district government.
Sec. 213. Establishment of debt service reserve fund.
Sec. 214. Other requirements for issuance of bonds.
Sec. 215. No full faith and credit of the United States.
Subtitle C—Other Duties of Authority
Sec. 221. Duties of Authority during year other than control year.
Sec. 222. General assistance in achieving financial stability and management
efficiency.
Sec. 223. Obtaining reports.
Sec. 224. Reports and comments.
TITLE III—MISCELLANEOUS PROVISIONS
Sec. 301. Other District budget reforms.
Sec. 302. Establishment of Chief Financial Officer of District of Columbia.
Sec. 303. Revisions to powers and duties of Inspector General of District of Co-
lumbia.
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 Colum-
bia.
(2) As a result of its current financial problems
and management inefficiencies, the District of Co-
lumbia government fails to provide its citizens with
effective and efficient services in areas such as edu-
cation, health care, crime prevention, trash collec-
tion, drug abuse treatment and prevention, human
services delivery, and the supervision and training of
government personnel.
(3) The current financial and management
problems of the District government have already
adversely affected the long-term economic health of
the District of Columbia by causing the migration of
residents and business out of the District of Colum-
bia 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, man-
agement, and structural problems must be under-
taken which exempts no part of the District govern-
ment and which preserves home rule for the citizens
of the District of Columbia.
(6) The current deficit of the District of Colum-
bia must be resolved over a multi-year period, since
it cannot be effectively addressed in a single year.
(7) The ability of the District government to
obtain funds from capital markets in the future will
be severely diminished without Congressional action
to restore its financial stability.
(8) The failure to improve the financial situa-
tion of the District government will adversely affect
the long-term economic health of the entire National
Capital region.
(9) The efficient operation of the Federal Gov-
ernment may be adversely affected by the current
problems of the District of Columbia not only
through the services the District government pro-
vides 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:
(1) To eliminate budget deficits and cash short-
ages of the District of Columbia through visionary
financial planning, sound budgeting, accurate reve-
nue forecasts, and careful spending.
(2) To ensure the most efficient and effective
delivery of services, including public safety services,
by the District government during a period of fiscal
emergency.
(3) To conduct necessary investigations and
studies to determine the fiscal status and oper-
ational 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 gov-
ernment that is efficient and effective;
(B) achieving an appropriate relationship
with the Federal Government;
(C) ensuring the appropriate and efficient
delivery of services; and
(D) modernizing its budget, accounting,
personnel, procurement, information technology,
and management systems to ensure the maxi-
mum financial and performance accountability
of the District government and its officers and
employees.
(5) To enhance the District government’s ac-
cess to the capital markets and to ensure the contin-
ued 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 struc-
tural relationship between the District government
and the Federal Government.
(8) To provide for the review of the financial
impact of activities of the District government before
such activities are implemented or submitted for
Congressional review.
(c) RULES OF CONSTRUCTION.—Nothing in this Act
may be construed—
(1) to relieve any obligations existing as of the
date of the enactment of this Act of the District gov-
ernment to repay any individual or entity from
Title I
whom the District has borrowed funds, whether
through the issuance of bonds or otherwise; or
(2) to limit the authority of Congress to exer-
cise ultimate legislative authority over the District of
Columbia pursuant to Article I, section 8, clause 17
of the Constitution of the United States.
TITLE I—ESTABLISHMENT AND
ORGANIZATION OF AUTHORITY
SEC. 101. DISTRICT OF COLUMBIA FINANCIAL RESPON-
SIBILITY AND MANAGEMENT ASSISTANCE AU-
THORITY.
(a) ESTABLISHMENT.—Pursuant to Article I, section
8, clause 17 of the Constitution of the United States, there
is hereby established the District of Columbia Financial
Responsibility and Management Assistance Authority,
consisting of members appointed by the President in ac-
cordance with subsection (b). Subject to the conditions de-
scribed 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 in-
strumentality of the United States Government.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Authority shall consist
of 5 members appointed by the President who meet
Title I
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 mem-
bers.
(2) CONSULTATION
WITH
CONGRESS.—The
President shall appoint the members of the Author-
ity after consulting with the Chair of the Committee
on Appropriations and the Chair of the Committee
on Government Reform and Oversight of the House
of Representatives, the Chair of the Committee on
Appropriations and the Chair of the Committee on
Governmental Affairs of the Senate, and the Dele-
gate to the House of Representatives from the Dis-
trict of Columbia.
(3) CHAIR.—The President shall designate one
of the members of the Authority as the Chair of the
Authority.
(4) SENSE
OF
CONGRESS
REGARDING
DEAD-
LINE FOR APPOINTMENT.—It is the sense of Con-
gress 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.
Title I
(5) TERM OF SERVICE.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), each member of the Author-
ity 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 imme-
diately following the initial term, of the mem-
bers appointed for the term immediately follow-
ing 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 re-
move any member of the Authority only for
cause.
(c) QUALIFICATIONS FOR MEMBERSHIP.—An indi-
vidual meets the qualifications for membership on the Au-
thority if the individual—
(1) has knowledge and expertise in finance,
management, and the organization or operation of
business or government;
Title I
(2) does not provide goods or services to the
District government (and is not the spouse, parent,
child, or sibling of an individual who provides goods
and services to the District government);
(3) is not an officer or employee of the District
government; and
(4) during the most recent taxable year prior to
appointment, paid personal income or business taxes
to the District government.
(d) NO COMPENSATION FOR SERVICE.—Members of
the Authority shall serve without pay, but may receive re-
imbursement for any reasonable and necessary expenses
incurred by reason of service on the Authority.
(e) ADOPTION OF BY-LAWS FOR CONDUCTING BUSI-
NESS OF AUTHORITY.—
(1) IN GENERAL.—As soon as practicable after
the appointment of its members, the Authority shall
adopt by-laws, rules, and procedures governing its
activities under this Act, including procedures for
hiring experts and consultants. Such by-laws, rules,
and procedures shall be public documents, and shall
be submitted by the Authority upon adoption to the
Mayor, the Council, the President, and Congress.
(2) CERTAIN ACTIVITIES REQUIRING APPROVAL
OF
MAJORITY
OF
MEMBERS.—Under the by-laws
Title I
adopted pursuant to paragraph (1), the Authority
may conduct its operations under such procedures as
it considers appropriate, except that an affirmative
vote of a majority of the members of the Authority
shall be required in order for the Authority to—
(A) approve or disapprove a financial plan
and budget under subtitle A of title II;
(B) implement recommendations on finan-
cial stability and management responsibility
under section 207;
(C) give consent to the appointment of the
Chief Financial Officer of the District of Co-
lumbia under section 424 of the District of Co-
lumbia Self-Government and Governmental Re-
organization 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 Colum-
bia Procurement Practices Act of 1985 (as
amended by section 303(a)).
(3) ADOPTION OF RULES AND REGULATIONS OF
DISTRICT OF COLUMBIA.—The Authority may incor-
porate in its by-laws, rules, and procedures under
this subsection such rules and regulations of the
District government as it considers appropriate to
Title I
(d) STAFF OF FEDERAL AGENCIES.—Upon request
of the Chair, the head of any Federal department or
agency may detail, on a reimbursable or non-reimbursable
basis, any of the personnel of that department or agency
to the Authority to assist it in carrying out its duties
under this Act.
(e) PRESERVATION OF RETIREMENT AND CERTAIN
OTHER RIGHTS OF FEDERAL EMPLOYEES WHO BECOME
EMPLOYED BY THE AUTHORITY.—
(1) IN
GENERAL.—A Federal employee who,
within 2 months after separating from the Federal
Government, becomes employed by the Authority—
(A) may elect, for purposes of the retire-
ment system in which that individual last par-
ticipated before so separating, to have such in-
dividual’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 em-
ployee 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 Fed-
eral Government, shall be entitled to credit, for
Title I
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 per-
centage as would then apply if the individ-
ual 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
PER-
MITTED.—An individual who makes an election
under paragraph (1)(A) shall be ineligible, while
such election remains in effect, to participate in
any retirement system for employees of the gov-
ernment of the District of Columbia.
(3) REGULATIONS.—The Office of Personnel
Management shall prescribe such regulations as may
Title I
be necessary to carry out this subsection. Regula-
tions to carry out paragraph (1)(A) shall be pre-
scribed in consultation with the office or agency of
the government of the District of Columbia having
jurisdiction over any retirement system referred to
in paragraph (2)(B).
SEC. 103. POWERS OF AUTHORITY.
(a) HEARINGS AND SESSIONS.—The Authority may,
for the purpose of carrying out this Act, hold hearings,
sit and act at times and places, take testimony, and re-
ceive evidence as the Authority considers appropriate. The
Authority may administer oaths or affirmations to wit-
nesses appearing before it.
(b) POWERS OF MEMBERS AND AGENTS.—Any mem-
ber or agent of the Authority may, if authorized by the
Authority, take any action which the Authority is author-
ized to take by this section.
(c) OBTAINING OFFICIAL DATA.—
(1) FROM
FEDERAL
GOVERNMENT.—Notwith-
standing sections 552 (commonly known as the
Freedom of Information Act) and 552b (the Govern-
ment in the Sunshine Act) of title 5, United States
Code, the Authority may secure directly from any
department or agency of the United States informa-
tion necessary to enable it to carry out this Act, with
Title I
the approval of the head of that department or
agency.
(2) FROM
DISTRICT
GOVERNMENT.—Notwith-
standing 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 Au-
thority 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 respon-
sibilities under this Act. The head of the entity of
the District government responsible shall provide the
Authority with such information and assistance (in-
cluding granting the Authority direct access to auto-
mated or other information systems) as the Author-
ity requires under this paragraph.
(d) GIFTS, BEQUESTS, AND DEVISES.—The Author-
ity may accept, use, and dispose of gifts, bequests, or de-
vises of services or property, both real and personal, for
the purpose of aiding or facilitating the work of the Au-
thority. 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 Au-
Title I
thority may establish and shall be available for disburse-
ment 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 relat-
ing to any matter under investigation by the Author-
ity. The attendance of witnesses and the production
of evidence may be required from any place within
the United States at any designated place of hearing
within the United States.
(2) FAILURE TO OBEY A SUBPOENA.—If a per-
son refuses to obey a subpoena issued under para-
graph (1), the Authority may apply to a United
States district court for an order requiring that per-
son to appear before the Authority to give testimony,
produce evidence, or both, relating to the matter
under investigation. The application may be made
within the judicial district where the hearing is con-
ducted or where that person is found, resides, or
transacts business. Any failure to obey the order of
the court may be punished by the court as civil
contempt.
(3) SERVICE OF SUBPOENAS.—The subpoenas
of the Authority shall be served in the manner pro-
Title I
vided 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 be made under para-
graph (2) may be served in the judicial district in
which the person required to be served resides or
may be found.
(f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the
request of the Authority, the Administrator of General
Services may provide to the Authority, on a reimbursable
basis, the administrative support services necessary for the
Authority to carry out its responsibilities under this Act.
(g) AUTHORITY TO ENTER INTO CONTRACTS.—The
Executive Director may enter into such contracts as the
Executive Director considers appropriate (subject to the
approval of the Chair) to carry out the Authority’s respon-
sibilities under this Act.
(h) CIVIL ACTIONS TO ENFORCE POWERS.—The Au-
thority may seek judicial enforcement of its authority to
carry out its responsibilities under this Act.
(i) PENALTIES.—
(1) ACTS
PROHIBITED.—Any officer or em-
ployee of the District government who—
Title I
(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 in-
formation (including any projections or esti-
mates) 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 em-
ployee 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 AC-
TIONS TAKEN.—In the case of a violation of para-
graph (1) by an officer or employee of the District
government, the Mayor shall immediately report to
Title I
the Board all pertinent facts together with a state-
ment of the action taken thereon.
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 pro-
vided in section 103(e)(2) (relating to the issuance of an
order enforcing a subpoena), any action against the Au-
thority or any action otherwise arising out of this Act, in
whole or in part, shall be brought in the United States
District Court for the District of Columbia.
(b) PROMPT APPEAL.—
(1) COURT OF APPEALS.—Notwithstanding any
other provision of law, any order of the United
States District Court for the District of Columbia
which is issued pursuant to an action brought under
subsection (a) shall be reviewable only pursuant to
a notice of appeal to the United States Court of Ap-
peals 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
Title I
Appeals which is issued pursuant to paragraph (1)
may be had only if the petition for such review is
filed within 10 days after the entry of such decision.
(c) TIMING
OF RELIEF.—No order of any court
granting declaratory or injunctive relief against the Au-
thority, including relief permitting or requiring the obliga-
tion, borrowing, or expenditure of funds, shall take effect
during the pendency of the action before such court, dur-
ing 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 expe-
dite 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
Title I
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 Au-
thority 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 au-
thority during the previous fiscal year.
(3) APPROPRIATIONS REQUIRED.—No amount
may be obligated or expended by the Authority for
a fiscal year (beginning with fiscal year 1996) unless
such amount has been approved by Act of Congress,
and then only according to such Act.
(4) 
CONFORMING
AMENDMENT.—Section
453(c) of the District of Columbia Self-Government
and Governmental Reorganization Act (sec. 47–
304.1(c), D.C. Code) is amended by striking the pe-
Title I
riod at the end and inserting the following: ‘‘, or to
the District of Columbia Financial Responsibility
and Management Assistance Authority established
under section 101(a) of the District of Columbia Fi-
nancial Responsibility and Management Assistance
Act of 1995.’’.
(b) SPECIAL RULE FOR FUNDING OF OPERATIONS
DURING FISCAL YEAR 1995.—As soon as practicable
after the appointment of its members, the Authority shall
submit to the Mayor and the President—
(1) a request for reprogramming of funds under
subsection (c)(1); and
(2) a description of anticipated expenditures of
the Authority for fiscal year 1995 (which shall be
transmitted to Congress).
(c) SOURCES OF FUNDS.—
(1) USE OF PREVIOUSLY APPROPRIATED FUNDS
IN
DISTRICT
BUDGET.—The Mayor shall transfer
funds previously appropriated to the District govern-
ment 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
Title I
(b)(1)) for the purpose of carrying out the
Authority’s activities during the fiscal year.
(2) OTHER SOURCES OF FUNDS.—For provi-
sions 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 ac-
crued 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
Title I
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 pursu-
ant 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 Representa-
tives and the Senate that a control period has been initi-
ated (as described in section 209) at any time after the
Authority suspends its activities under subsection (a), the
President shall appoint members of the Authority, and the
Authority shall carry out activities under this Act, in the
same manner as the President appointed members and the
Authority carried out activities prior to such suspension.
SEC. 108. APPLICATION OF LAWS OF DISTRICT OF COLUM-
BIA 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).
Title I
(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 RE-
VIEW BY MAYOR OR COUNCIL.—
(1) IN GENERAL.—Neither the Mayor nor the
Council may exercise any control, supervision, over-
sight, or review over the Authority or its activities.
(2) PROHIBITION
AGAINST
LEGISLATION
AF-
FECTING AUTHORITY.—Section 602(a) of the Dis-
trict of Columbia Self-Government and Govern-
mental Reorganization Act (sec. 1–233(a), D.C.
Code) is amended—
(A) by striking ‘‘or’’ at the end of para-
graph (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 re-
spect to the District of Columbia Financial Respon-
sibility and Management Assistance Authority estab-
Title II, Subtitle A
lished under section 101(a) of the District of Colum-
bia Financial Responsibility and Management As-
sistance Act of 1995.’’.
(c) AUTHORITY NOT SUBJECT TO REPRESENTATION
BY CORPORATION COUNSEL.—In any action brought by
or on behalf of the Authority, and in any action brought
against the Authority, the Authority shall be represented
by such counsel as it may select, but in no instance may
the Authority be represented by the Corporation Counsel
of the District of Columbia.
TITLE II—RESPONSIBILITIES OF
AUTHORITY
Subtitle A—Establishment and En-
forcement of Financial Plan and
Budget for District Government
SEC. 201. DEVELOPMENT OF FINANCIAL PLAN AND BUDG-
ET FOR DISTRICT OF COLUMBIA.
(a) DEVELOPMENT OF FINANCIAL PLAN AND BUDG-
ET.—For each fiscal year for which the District govern-
ment 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
Title II, Subtitle A
government under part D of title IV of the District of Co-
lumbia Self-Government and Governmental Reorganiza-
tion Act for the applicable fiscal year and the next 3 fiscal
years (including the projected revenues and expenditures
of each fund of the District government for such years),
in accordance with the following requirements:
(1) The financial plan and budget shall meet
the standards described in subsection (c) to promote
the financial stability of the District government.
(2) The financial plan and budget shall provide
for estimates of revenues and expenditures on a
modified accrual basis.
(3) The financial plan and budget shall—
(A) describe lump sum expenditures by de-
partment by object class;
(B) describe capital expenditures (together
with a schedule of projected capital commit-
ments of the District government and proposed
sources of funding);
(C) contain estimates of short-term and
long-term debt (both outstanding and antici-
pated to be issued); and
(D) contain cash flow forecasts for each
fund of the District government at such inter-
vals as the Authority may require.
Title II, Subtitle A
(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 cri-
teria as the Authority considers appropriate to meet
the purposes of this Act, including provisions for
changes in personnel policies and levels for each de-
partment 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 ap-
plicable to the financial plan and budget for a fiscal
year are as follows:
(A) In the case of the financial plan and
budget for fiscal year 1996, the expenditures of
the District government for each fiscal year (be-
ginning with fiscal year 1999) may not exceed
the revenues of the District government for
each such fiscal year.
Title II, Subtitle A
(B) During fiscal years 1996, 1997, and
1998, the District government shall make con-
tinuous, substantial progress towards equalizing
the expenditures and revenues of the District
government for such fiscal years (in equal an-
nual installments to the greatest extent pos-
sible).
(C) The District government shall provide
for the orderly liquidation of the cumulative
fund balance deficit of the District government,
as evidenced by financial statements prepared
in accordance with generally accepted account-
ing principles.
(D) If funds in accounts of the District
government which are dedicated for specific
purposes have been withdrawn from such ac-
counts for other purposes, the District govern-
ment shall fully restore the funds to such ac-
counts.
(E) The financial plan and budget shall as-
sure the continuing long-term financial stability
of the District government, as indicated by fac-
tors including access to short-term and long-
term capital markets, the efficient management
of the District government’s workforce, and the
Title II, Subtitle A
effective provision of services by the District
government.
(2) APPLICATION OF SOUND BUDGETARY PRAC-
TICES.—In meeting the standards described in para-
graph (1) with respect to a financial plan and budg-
et 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 prac-
tices.
(3) ASSUMPTIONS BASED ON CURRENT LAW.—
In meeting the standards described in paragraph (1)
with respect to a financial plan and budget for a fis-
cal year, the District government shall base esti-
mates of revenues and expenditures on Federal law
as in effect at the time of the preparation of the fi-
nancial plan and budget.
(d) REPEAL OF OFFSETS AGAINST FEDERAL PAY-
MENT 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).
Title II, Subtitle A
SEC. 202. PROCESS FOR SUBMISSION AND APPROVAL OF FI-
NANCIAL 
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 govern-
ment 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 fi-
nancial plan and budget for a fiscal year from the Mayor
under subsection (a), the Authority shall promptly review
the financial plan and budget. In conducting the review,
the Authority may request any additional information it
considers necessary and appropriate to carry out its duties
under this subtitle.
(c) ACTION UPON APPROVAL OF MAYOR’S PRELIMI-
NARY FINANCIAL PLAN AND BUDGET.—
(1) CERTIFICATION TO MAYOR.—
(A) IN GENERAL.—If the Authority deter-
mines that the financial plan and budget for the
fiscal year submitted by the Mayor under sub-
section (a) meets the requirements applicable
under section 201—
Title II, Subtitle A
(i) the Authority shall approve the fi-
nancial plan and budget and shall provide
the Mayor, the Council, the President, and
Congress with a notice certifying its ap-
proval; and
(ii) the Mayor shall promptly submit
the financial plan and budget to the Coun-
cil pursuant to section 442 of the District
of Columbia Self-Government and Govern-
mental 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 ap-
proval 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 Au-
thority receives the financial plan and
budget from the Mayor under subsection
(a), the Authority shall be deemed to have
approved the financial plan and budget
and to have provided the Mayor, the Coun-
cil, the President, and Congress with the
Title II, Subtitle A
notice certifying approval described in sub-
paragraph (A)(i).
(ii) EXPLANATION
OF
FAILURE
TO
RESPOND.—If clause (i) applies with re-
spect to a financial plan and budget, the
Authority shall provide the Mayor, the
Council, the President and Congress with
an explanation for its failure to provide the
notice certifying approval or the statement
of disapproval during the 30-day period de-
scribed in such clause.
(2) ADOPTION OF FINANCIAL PLAN AND BUDG-
ET BY COUNCIL AFTER RECEIPT OF APPROVED FI-
NANCIAL PLAN AND BUDGET.—Notwithstanding the
first sentence of section 446 of the District of Co-
lumbia Self-Government and Governmental Reorga-
nization 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 sub-
mit such financial plan and budget to the Mayor and
the Authority.
Title II, Subtitle A
(3) REVIEW OF COUNCIL FINANCIAL PLAN AND
BUDGET BY AUTHORITY.—Upon receipt of the finan-
cial plan and budget for a fiscal year from the Coun-
cil under paragraph (2) (taking into account any
items or provisions disapproved by the Mayor or dis-
approved by the Mayor and reenacted by the Council
under section 404(f) of the District of Columbia
Self-Government and Governmental Reorganization
Act, as amended by subsection (f)(2)), the Authority
shall promptly review the financial plan and budget.
In conducting the review, the Authority may request
any additional information it considers necessary
and appropriate to carry out its duties under this
subtitle.
(4) RESULTS OF AUTHORITY REVIEW OF COUN-
CIL’S INITIAL FINANCIAL PLAN AND BUDGET.—
(A) APPROVAL OF COUNCIL’S INITIAL FI-
NANCIAL PLAN AND BUDGET.—If the Authority
determines that the financial plan and budget
for the fiscal year submitted by the Council
under paragraph (2) meets the requirements
applicable under section 201—
(i) the Authority shall approve the fi-
nancial plan and budget and shall provide
the Mayor, the Council, the President, and
Title II, Subtitle A
Congress with a notice certifying its ap-
proval; and
(ii) the Council shall promptly submit
the financial plan and budget to the Mayor
for transmission to the President and Con-
gress under section 446 of the District of
Columbia Self-Government and Govern-
mental Reorganization Act.
(B) DISAPPROVAL OF COUNCIL’S INITIAL
BUDGET.—If the Authority determines that the
financial plan and budget for the fiscal year
submitted by the Council under paragraph (2)
does not meet the requirements applicable
under section 201, the Authority shall dis-
approve the financial plan and budget, and
shall provide the Mayor, the Council, the Presi-
dent, and Congress with a statement contain-
ing—
(i) the reasons for such disapproval;
(ii) the amount of any shortfall in the
budget or financial plan; and
(iii) any recommendations for revi-
sions to the budget the Authority considers
appropriate to ensure that the budget is
Title II, Subtitle A
consistent with the financial plan and
budget.
(C) DEEMED APPROVAL AFTER 15 DAYS.—
(i) IN
GENERAL.—If the Authority
has not provided the Mayor, the Council,
the President, and Congress with a notice
certifying approval under subparagraph
(A)(i) or a statement of disapproval under
subparagraph (B) upon the expiration of
the 15-day period which begins on the date
the Authority receives the financial plan
and budget from the Council under 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 de-
scribed in subparagraph (A)(i).
(ii) EXPLANATION
OF
FAILURE
TO
RESPOND.—If clause (i) applies with re-
spect to a financial plan and budget, the
Authority shall provide the Mayor, the
Council, the President and Congress with
an explanation for its failure to provide the
notice certifying approval or the statement
Title II, Subtitle A
of disapproval during the 15-day period de-
scribed in such clause.
(5) AUTHORITY REVIEW OF COUNCIL’S REVISED
FINANCIAL PLAN AND BUDGET.—
(A) SUBMISSION
OF
COUNCIL’S
REVISED
FINANCIAL PLAN AND BUDGET.—Not later than
15 days after receiving the statement from the
Authority under paragraph (4)(B), the Council
shall promptly by Act adopt a revised financial
plan and budget for the fiscal year which ad-
dresses the reasons for the Authority’s dis-
approval cited in the statement, and shall sub-
mit such financial plan and budget to the
Mayor and the Authority.
(B) APPROVAL OF COUNCIL’S REVISED FI-
NANCIAL PLAN AND BUDGET.—If, after review-
ing the revised financial plan and budget for a
fiscal year submitted by the Council under sub-
paragraph (A) in accordance with the proce-
dures described in this subsection, the Author-
ity determines that the revised financial plan
and budget meets the requirements applicable
under section 201—
(i) the Authority shall approve the fi-
nancial plan and budget and shall provide
Title II, Subtitle A
the Mayor, the Council, the President, and
Congress with a notice certifying its ap-
proval; and
(ii) the Council shall promptly submit
the financial plan and budget to the Mayor
for transmission to the President and Con-
gress under section 446 of the District of
Columbia Self-Government and Govern-
mental 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 fi-
nancial plan and budget does not meet the
applicable requirements under section 201,
the Authority shall—
(I) disapprove the financial plan
and budget;
(II) provide the Mayor, the
Council, the President, and Congress
with a statement containing the rea-
Title II, Subtitle A
sons for such disapproval and describ-
ing the amount of any shortfall in the
financial plan and budget; and
(III) approve and recommend a
financial plan and budget for the Dis-
trict government which meets the ap-
plicable requirements under section
201, and submit such financial plan
and budget to the Mayor, the Council,
the President, and Congress.
(ii) TRANSMISSION OF REJECTED FI-
NANCIAL PLAN AND BUDGET.—The Coun-
cil shall promptly submit the revised finan-
cial plan and budget disapproved by the
Authority under this subparagraph to the
Mayor for transmission to the President
and Congress under section 446 of the
District of Columbia Self-Government and
Governmental Reorganization Act.
(D) DEEMED APPROVAL AFTER 15 DAYS.—
(i) IN
GENERAL.—If the Authority
has not provided the Mayor, the Council,
the President, and Congress with a notice
certifying approval under subparagraph
(B)(i) or a statement of disapproval under
Title II, Subtitle A
subparagraph (C) upon the expiration of
the 15-day period which begins on the date
the Authority receives the revised financial
plan and budget submitted by the Council
under subparagraph (A), the Authority
shall be deemed to have approved the re-
vised financial plan and budget and to
have provided the Mayor, the Council, the
President, and Congress with the notice
certifying approval described in subpara-
graph (B)(i).
(ii) EXPLANATION
OF
FAILURE
TO
RESPOND.—If clause (i) applies with re-
spect to a financial plan and budget, the
Authority shall provide the Mayor, the
Council, the President and Congress with
an explanation for its failure to provide the
notice certifying approval or the statement
of disapproval during the 15-day period de-
scribed in such clause.
(6) DEADLINE FOR TRANSMISSION OF FINAN-
CIAL PLAN AND BUDGET BY AUTHORITY.—Notwith-
standing any other provision of this section, not
later than the June 15 preceding each fiscal year
which is a control year, the Authority shall—
Title II, Subtitle A
(A) provide Congress with a notice certify-
ing its approval of the Council’s initial financial
plan and budget for the fiscal year under para-
graph (4)(A);
(B) provide Congress with a notice certify-
ing its approval of the Council’s revised finan-
cial 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 PRE-
LIMINARY FINANCIAL PLAN AND BUDGET.—
(1) STATEMENT OF DISAPPROVAL.—If the Au-
thority determines that the financial plan and budg-
et for the fiscal year submitted by the Mayor under
subsection (a) does not meet the requirements appli-
cable under section 201, the Authority shall dis-
approve the financial plan and budget, and shall
provide the Mayor and the Council with a statement
containing—
(A) the reasons for such disapproval;
(B) the amount of any shortfall in the fi-
nancial plan and budget; and
Title II, Subtitle A
(C) any recommendations for revisions to
the financial plan and budget the Authority
considers appropriate to ensure that the finan-
cial 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 FI-
NANCIAL PLAN AND BUDGET.—Not later than
15 days after receiving the statement from the
Authority under paragraph (1), the Mayor shall
promptly submit to the Authority and the
Council a revised financial plan and budget for
the fiscal year which addresses the reasons for
the Authority’s disapproval cited in the state-
ment.
(B) APPROVAL OF MAYOR’S REVISED FI-
NANCIAL 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 re-
quirements applicable under section 201—
(i) the Authority shall approve the fi-
nancial plan and budget and shall provide
the Mayor, the Council, the President, and
Title II, Subtitle A
Congress with a notice certifying its ap-
proval; and
(ii) the Mayor shall promptly submit
the financial plan and budget to the Coun-
cil pursuant to section 442 of the District
of Columbia Self-Government and Govern-
mental Reorganization Act.
(C) DISAPPROVAL
OF
MAYOR’S
REVISED
FINANCIAL PLAN AND BUDGET.—
(i) IN GENERAL.—If the Authority de-
termines that the revised financial plan
and budget for the fiscal year submitted by
the Mayor under subparagraph (A) does
not meet the requirements applicable under
section 201, the Authority shall—
(I) disapprove the financial plan
and budget;
(II) shall provide the Mayor, the
Council, the President, and Congress
with a statement containing the rea-
sons for such disapproval; and
(III) recommend a financial plan
and budget for the District govern-
ment which meets the requirements
applicable under section 201 and sub-
Title II, Subtitle A
mit such financial plan and budget to
the Mayor and the Council.
(ii) SUBMISSION OF REJECTED FINAN-
CIAL
PLAN
AND
BUDGET.—The Mayor
shall promptly submit the revised financial
plan and budget disapproved by the Au-
thority under this subparagraph to the
Council pursuant to section 442 of the
District of Columbia Self-Government and
Governmental Reorganization Act.
(D) DEEMED APPROVAL AFTER 15 DAYS.—
(i) IN
GENERAL.—If the Authority
has not provided the Mayor, the Council,
the President, and Congress with a notice
certifying approval under subparagraph
(B)(i) or a statement of disapproval under
subparagraph (C) upon the expiration of
the 15-day period which begins on the date
the Authority receives the revised financial
plan and budget submitted by the Mayor
under subparagraph (A), the Authority
shall be deemed to have approved the re-
vised financial plan and budget and to
have provided the Mayor, the Council, the
President, and Congress with the notice
Title II, Subtitle A
certifying approval described in subpara-
graph (B)(i).
(ii) EXPLANATION
OF
FAILURE
TO
RESPOND.—If clause (i) applies with re-
spect to a financial plan and budget, the
Authority shall provide the Mayor, the
Council, the President and Congress with
an explanation for its failure to provide the
notice certifying approval or the statement
of disapproval during the 15-day period de-
scribed in such clause.
(3) ACTION BY COUNCIL.—
(A) ADOPTION OF FINANCIAL PLAN AND
BUDGET.—Notwithstanding the first sentence
of section 446 of the District of Columbia Self-
Government and Governmental Reorganization
Act, not later than 30 days after receiving the
Mayor’s approved revised financial plan and
budget for the fiscal year under paragraph
(2)(B) or (in the case of a financial plan and
budget disapproved by the Authority) the finan-
cial plan and budget recommended by the Au-
thority 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
Title II, Subtitle A
the adoption of the budgets of the District gov-
ernment 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 finan-
cial plan and budget submitted by the Council
under subparagraph (A) shall be subject to re-
view by the Authority and revision by the Coun-
cil 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
REVI-
SIONS.—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, DIS-
APPROVAL, AND COUNCIL ACTION.—Except as pro-
vided 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, ex-
Title II, Subtitle A
cept that subparagraph (B) of subsection (c)(1) (re-
lating to deemed approval by the Authority of a pre-
liminary 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 AFFECT-
ING APPROPRIATIONS.—To the extent that a pro-
posed revision to a financial plan and budget adopt-
ed by the Council pursuant to this subsection does
not increase the amount of spending with respect to
any account of the District government, the revision
shall become effective upon the Authority’s approval
of such revision (subject to review by Congress
under section 602(c) of the District of Columbia
Self-Government and Governmental Reorganization
Act).
(f) CONFORMING AMENDMENT TO BUDGET PROCESS
REQUIREMENTS UNDER HOME RULE ACT.—
(1) SUBMISSION OF UNBALANCED BUDGETS.—
Section 603 of the District of Columbia Self-Govern-
ment 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
Title II, Subtitle A
year which is a control year (as defined in section
305(4) of the District of Columbia Financial Re-
sponsibility and Management Assistance Act of
1995), this subsection shall apply as if the reference
in the second sentence to ‘ten-day period’ were a ref-
erence to ‘five-day period’ and the reference in the
third sentence to ‘thirty calendar days’ were a ref-
erence to ‘5 calendar days’.’’.
(g) PERMITTING MAYOR AND COUNCIL TO SPECIFY
EXPENDITURES UNDER SCHOOL BOARD BUDGET DUR-
ING 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 in-
serting the following: ‘‘, except that in the case of
a year which is a control year (as defined in section
305(4) of the District of Columbia Financial Re-
sponsibility 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.’’.
Title II, Subtitle A
(2) SPECIFICATION
OF
EXPENDITURES.—Sec-
tion 452 of the District of Columbia Self-Govern-
ment 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 sec-
tion 305(4) of the District of Columbia Financial
Responsibility and Management Assistance Act of
1995).’’.
(h) PERMITTING SEPARATION OF EMPLOYEES IN AC-
CORDANCE WITH FINANCIAL PLAN AND BUDGET.—The
fourth sentence of section 422(3) of the District of Colum-
bia Self-Government and Governmental Reorganization
Act (sec. 1–242(3), D.C. Code) is amended by striking
‘‘pursuant to procedures’’ and all that follows through
‘‘Act of 1991’’ and inserting the following: ‘‘in the imple-
mentation 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 Man-
agement Assistance Act of 1995’’.
SEC. 203. REVIEW OF ACTIVITIES OF DISTRICT GOVERN-
MENT TO ENSURE COMPLIANCE WITH AP-
PROVED FINANCIAL PLAN AND BUDGET.
(a) REVIEW OF COUNCIL ACTS.—
Title II, Subtitle A
(1) SUBMISSION OF ACTS TO AUTHORITY.—The
Council shall submit to the Authority each Act
passed by the Council and signed by the Mayor dur-
ing a control year or vetoed by the Mayor and re-
passed by two-thirds of the Council present and vot-
ing 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, to-
gether with the estimate of costs accompanying such
Act required under section 602(c)(3) of the District
of Columbia Self-Government and Governmental Re-
organization Act (as added by section 301(d)).
(2) PROMPT REVIEW BY AUTHORITY.—Upon re-
ceipt of an Act from the Council under paragraph
(1), the Authority shall promptly review the Act to
determine whether it is consistent with the applica-
ble 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 fi-
nancial plan and budget, the Authority shall no-
tify the Council that it approves the Act, and
Title II, Subtitle A
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 Author-
ity determines that an Act is significantly in-
consistent with the applicable financial plan and
budget, the Authority shall—
(i) notify the Council that of its find-
ing;
(ii) provide the Council with an expla-
nation of the reasons for its finding; and
(iii) to the extent the Authority con-
siders appropriate, provide the Council
with recommendations for modifications to
the Act.
(C) EXCEPTION FOR EMERGENCY ACTS.—
Subparagraphs (A) and (B) shall not apply
with respect to any act which the Council deter-
mines according to section 412(a) of the Dis-
trict of Columbia Self-Government and Govern-
mental Reorganization Act should take effect
immediately 
because 
of 
emergency 
cir-
cumstances.
Title II, Subtitle A
(4) EFFECT
OF
FINDING.—If the Authority
makes a finding with respect to an Act under para-
graph (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 dis-
approves 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 Au-
thority shall be deemed to have approved the Act in
accordance with paragraph (3)(A). At the option of
the Authority, the previous sentence shall be applied
as if the reference to ‘‘7-day period’’ were a ref-
erence to ‘‘14-day period’’ if during such 7-day pe-
riod 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 legis-
lation 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
Title II, Subtitle A
shall not be binding on the Authority in reviewing
any Act subsequently submitted under this sub-
section.
(b) EFFECT OF APPROVED FINANCIAL PLAN AND
BUDGET ON CONTRACTS AND LEASES.—
(1) MANDATORY
PRIOR
APPROVAL
FOR
CER-
TAIN CONTRACTS AND LEASES.—
(A) IN GENERAL.—In the case of a con-
tract or lease described in subparagraph (B)
which is proposed to be entered into by the Dis-
trict government during a control year, the
Mayor (or the appropriate officer or agent of
the District government) shall submit the pro-
posed 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 deter-
mines that the proposed contract or lease is
consistent with the financial plan and budget
for the fiscal year.
(B) 
CONTRACTS
AND
LEASES
DE-
SCRIBED.—A contract or lease described in this
subparagraph is—
Title II, Subtitle A
(i) a labor contract entered into
through collective bargaining; or
(ii) such other type of contract or
lease as the Authority may specify for pur-
poses of this subparagraph.
(2) AUTHORITY TO REVIEW OTHER CONTRACTS
AND LEASES AFTER EXECUTION.—
(A) IN GENERAL.—In addition to the prior
approval of certain contracts and leases under
paragraph (1), the Authority may require the
Mayor (or the appropriate officer or agent of
the District government) to submit to the Au-
thority any other contract (including a contract
to carry out a grant) or lease entered into by
the District government during a control year
which is executed after the Authority has ap-
proved 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 Author-
ity shall review each contract or lease submitted
under subparagraph (A) to determine if the
Title II, Subtitle A
contract or lease is consistent with the financial
plan and budget for the fiscal year. If the Au-
thority determines that the contract or lease is
not consistent with the financial plan and budg-
et, 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.
(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 Au-
thority under this subsection and which is subject to
approval by the Council under the laws of the Dis-
trict of Columbia, the Mayor shall submit such con-
Title II, Subtitle A
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 AUTHOR-
ITY.—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 affect of the proposed re-
programming 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 re-
programming during a fiscal year which is a control
year, and no officer or employee of the District gov-
ernment may carry out any reprogramming during
such a year, until the Authority has provided the
Council with an analysis of a request for the re-
programming in accordance with paragraph (1).
SEC. 204. RESTRICTIONS ON BORROWING BY DISTRICT
DURING CONTROL YEAR.
(a) PRIOR APPROVAL REQUIRED.—
Title II, Subtitle A
(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 bor-
rowing are consistent with the financial plan and
budget for the year.
(2) REVISIONS TO FINANCIAL PLAN AND BUDG-
ET PERMITTED.—If the Authority determines that
the borrowing proposed to be undertaken by the Dis-
trict government is not consistent with the financial
plan and budget, the Mayor may submit to the Au-
thority 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 under-
taken by the District government, including borrow-
ing through the issuance of bonds under part E of
title IV of the District of Columbia Self-Government
and Governmental Reorganization Act, the exercise
of authority to obtain funds from the United States
Treasury under title VI of the District of Columbia
Title II, Subtitle A
Revenue Act of 1939 (sec. 47–3401, D.C. Code), or
any other means.
(4) SPECIAL RULES FOR TREASURY BORROWING
DURING FISCAL YEAR 1995.—
(A) NO PRIOR APPROVAL REQUIRED DUR-
ING
INITIAL
PERIOD
FOLLOWING
APPOINT-
MENT.—The District government may requisi-
tion advances from the United States Treasury
under title VI of the District of Columbia Reve-
nue Act of 1939 (sec. 47–3401, D.C. Code)
without the prior approval of the Authority dur-
ing the 45-day period which begins on the date
of the appointment of the members of the Au-
thority (subject to the restrictions described in
such title, as amended by subsection (c)).
(B) CRITERIA FOR APPROVAL DURING RE-
MAINDER OF FISCAL YEAR.—The District gov-
ernment 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
Title II, Subtitle A
to reduce deficits and discharge payment
obligations; and
(ii) the District government is making
appropriate progress toward meeting its
responsibilities under this Act (and the
amendments made by this Act).
(b) DEPOSIT
OF
FUNDS
OBTAINED
THROUGH
TREASURY WITH AUTHORITY.—
(1) AUTOMATIC
DEPOSIT
DURING
CONTROL
YEAR.—If the Mayor requisitions funds from the
Secretary of the Treasury pursuant to title VI of the
District of Columbia Revenue Act of 1939 (sec. 47–
3401, D.C. Code) during a control year (beginning
with fiscal year 1996), such funds shall be deposited
by the Secretary into an escrow account held by the
Authority, to be used as follows:
(A) The Authority shall expend a portion
of the funds for its operations during the fiscal
year in which the funds are requisitioned, in
such amount and under such conditions as are
established under the budget of the Authority
for the fiscal year under section 106(a).
(B) The Authority shall allocate the re-
mainder of such funds to the Mayor at such in-
tervals and in accordance with such terms and
Title II, Subtitle A
conditions as it considers appropriate, consist-
ent 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 ap-
pointment of the members of the Authority, the
Secretary of the Treasury shall notify the Au-
thority, and at the request of the Authority
shall deposit such funds into an escrow account
held by the Authority in accordance with para-
graph (1).
(B) 
DURING
REMAINDER
OF
FISCAL
YEAR.—If the Mayor requisitions funds de-
scribed 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.
Title II, Subtitle A
(c) CONDITIONS
ON REQUISITIONS FROM TREAS-
URY.—Title VI of the District of Columbia Revenue Act
of 1939 (sec. 47–3401, D.C. Code) is amended by striking
all after the heading and inserting the following:
‘‘SEC. 601. TRANSITIONAL PROVISION FOR SHORT-TERM
ADVANCES.
‘‘(a) TRANSITIONAL SHORT-TERM ADVANCES MADE
BEFORE OCTOBER 1, 1995.—
‘‘(1) IN GENERAL.—If the conditions in para-
graph (2) are satisfied, the Secretary shall make an
advance of funds from time to time, out of any
money in the Treasury not otherwise appropriated,
for the purpose of assisting the District government
in meeting its general expenditures, as authorized by
Congress.
‘‘(2) CONDITIONS
TO
MAKING
ANY
TRANSI-
TIONAL SHORT-TERM ADVANCE BEFORE OCTOBER 1,
1995.—The Secretary shall make an advance under
this subsection if the following conditions are satis-
fied:
‘‘(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 Au-
thority has not approved a financial plan and
Title II, Subtitle A
budget for the District government as meeting
the requirements of the District of Columbia
Financial Responsibility and Management As-
sistance Act of 1995;
‘‘(C) the date on which the requisitioned
advance is to be made is not later than Septem-
ber 30, 1995;
‘‘(D) the District government has delivered
to the Secretary—
‘‘(i) a schedule setting forth the an-
ticipated timing and amounts of req-
uisitions for advances under this sub-
section; and
‘‘(ii) evidence demonstrating to the
satisfaction of the Secretary that the Dis-
trict government is effectively unable to ob-
tain credit in the public credit markets or
elsewhere in sufficient amounts and on suf-
ficiently reasonable terms to meet the Dis-
trict government’s financing needs;
‘‘(E) the Secretary determines that there is
reasonable assurance of reimbursement for the
advance from the amount authorized to be ap-
propriated as the annual Federal payment to
the District of Columbia under title V of the
Title II, Subtitle A
District of Columbia Self-Government and Gov-
ernmental Reorganization Act for the fiscal
year ending September 30, 1996; and
‘‘(F) except during the 45-day period be-
ginning 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 subsection during the 30-day
period which begins on the date of the first
requisition made under this subsection may
not exceed 331⁄3 percent of the fiscal year
1995 limit;
Title II, Subtitle A
‘‘(ii) the total amount requisitioned
under this subsection during the 60-day
period which begins on the date of the first
requisition made under this subsection may
not exceed 662⁄3 percent of the fiscal year
1995 limit; and
‘‘(iii) the total amount requisitioned
under this subsection after the expiration
of the 60-day period which begins on the
date of the first requisition made under
this subsection may not exceed 100 percent
of the fiscal year 1995 limit.
‘‘(B) CONDITIONS
APPLICABLE
TO
DES-
IGNATED AMOUNT.—Subparagraph (A) applies
if the Mayor determines that the amount des-
ignated in the Mayor’s requisition for such ad-
vance is needed to accomplish the purpose de-
scribed 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 OUT-
STANDING.—The sum of the anticipated prin-
cipal and interest requirements of all advances
Title II, Subtitle A
made under this subsection may not be greater
than the fiscal year 1995 limit.
‘‘(D) 
FISCAL
YEAR
1995
LIMIT
DE-
SCRIBED.—In this paragraph, the ‘fiscal year
1995 limit’ means the amount authorized to be
appropriated to the District of Columbia as the
annual Federal payment to the District of Co-
lumbia under title V of the District of Columbia
Self-Government and Governmental Reorga-
nization Act for the fiscal year ending Septem-
ber 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 des-
ignated by the Mayor in the Mayor’s requisition
for such advance.
‘‘(B) LATEST
PERMISSIBLE
MATURITY
DATE.—Notwithstanding subparagraph (A), the
maturity date for any advance made under this
subsection shall not be later than October 1,
1995.
‘‘(5) INTEREST
RATE.—Each advance made
under this subsection shall bear interest at an an-
Title II, Subtitle A
nual rate equal to the rate determined by the Sec-
retary at the time that the Secretary makes such ad-
vance taking into consideration the prevailing yield
on outstanding marketable obligations of the United
States with remaining periods to maturity com-
parable 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 sub-
paragraph (A), if (in accordance with section
204(b)(2) of the District of Columbia Financial
Responsibility and Management Assistance Act
of 1995) the Authority delivers a letter request-
ing the Secretary to deposit all advances made
under this subsection for the account of the
District government in an escrow account held
by the Authority, each advance made under this
subsection for the account of the District gov-
ernment after the date of such letter shall be
Title II, Subtitle A
deposited by the Secretary into the escrow ac-
count 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 para-
graph (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 de-
scribed 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
Title II, Subtitle A
making advances before October 1, 1995,
except that—
‘‘(I) subparagraph (C) (relating
to the last day on which advances may
be made) shall be applied as if the
reference to ‘September 30, 1995’
were a reference to ‘January 31,
1996’;
‘‘(II) subparagraph (E) (relating
to the Secretary’s determination of
reasonable assurance of reimburse-
ment from the annual Federal pay-
ment 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 sub-
section unless all advances made
under subsection (a) are fully reim-
bursed by withholding from the an-
nual Federal payment appropriated to
the District of Columbia for the fiscal
year ending September 30, 1996,
Title II, Subtitle A
under title V of the District of Colum-
bia Self-Government and Govern-
mental Reorganization Act, and apply-
ing 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 sub-
section unless the Authority has pro-
vided the Secretary with the prior cer-
tification 
described 
in 
section
204(a)(1) of the District of Columbia
Financial Responsibility and Manage-
ment Assistance Act of 1995.
‘‘(ii) NEW LATEST PERMISSIBLE MA-
TURITY
DATE.—The provisions of sub-
section (a)(4) shall apply with respect to
the maturity of advances made after Octo-
ber 1, 1995, in the same manner as such
provisions apply with respect to the matu-
rity of advances made before October 1,
1995, except that subparagraph (B) of
such subsection (relating to the latest per-
missible maturity date) shall apply as if
Title II, Subtitle A
the reference to ‘October 1, 1995’ were a
reference to ‘October 1, 1996’.
‘‘(C) NEW MAXIMUM AMOUNT OUTSTAND-
ING.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (iii), if the conditions de-
scribed in clause (ii) are satisfied, each ad-
vance made under this subsection shall be
in the amount designated by the Mayor in
the Mayor’s requisition for such advance.
‘‘(ii) CONDITIONS
APPLICABLE
TO
DESIGNATED AMOUNT.—Clause (i) applies
if the Mayor determines that the amount
designated in the Mayor’s requisition for
such advance is needed to accomplish the
purpose described in paragraph (1), and
the Authority approves such amount.
‘‘(iii) AGGREGATE MAXIMUM AMOUNT
OUTSTANDING.—The sum of the antici-
pated principal and interest requirements
of all advances made under this paragraph
may not be greater than 60 percent of the
fiscal year 1996 limit.
‘‘(D) DEPOSIT
OF
ADVANCES.—As pro-
vided in section 204(b) of the District of Co-
Title II, Subtitle A
lumbia Financial Responsibility and Manage-
ment 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
DE-
SCRIBED.—In this paragraph, the ‘fiscal year
1996 limit’ means the amount authorized to be
appropriated to the District of Columbia as the
annual Federal payment to the District of Co-
lumbia under title V of the District of Columbia
Self-Government and Governmental Reorga-
nization Act for the fiscal year ending Septem-
ber 30, 1996.
‘‘(c) TRANSITIONAL SHORT-TERM ADVANCES MADE
ON OR AFTER FEBRUARY 1, 1996, AND BEFORE OCTO-
BER 1, 1996.—
‘‘(1) IN GENERAL.—If the conditions in para-
graph (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.—
Title II, Subtitle A
‘‘(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 appli-
cable under subsection (b)(2) (other than para-
graph (2)(B) of subsection (a)) shall apply with
respect to making advances on or after Feb-
ruary 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 sub-
section (b)(2)(B)(i)(I)), the reference to
‘October 1, 1995’ shall be deemed to be a
reference to ‘September 30, 1996’;
‘‘(ii) subparagraph (C)(iii) of sub-
section (b)(2) shall apply as if the ref-
erence to ‘60 percent’ were a reference to
‘40 percent’; and
‘‘(iii) no advance may be made unless
the Secretary has been provided the certifi-
cations and information described in para-
graphs (3) through (6) of section 602(b).
Title II, Subtitle A
‘‘(d) TRANSITIONAL SHORT-TERM ADVANCES MADE
ON OR AFTER OCTOBER 1, 1996, AND BEFORE OCTOBER
1, 1997.—
‘‘(1) IN GENERAL.—If the conditions in para-
graph (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 de-
scribed 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 con-
ditions apply with respect to making ad-
vances before October 1, 1995, except
that—
Title II, Subtitle A
‘‘(I) subparagraph (C) (relating
to the last day on which advances may
be made) shall be applied as if the
reference to ‘September 30, 1995’
were a reference to ‘September 30,
1997’;
‘‘(II) subparagraph (E) (relating
to the Secretary’s determination of
reasonable assurance of reimburse-
ment from the annual Federal pay-
ment 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 sub-
section 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 fis-
cal year ending September 30, 1997,
under title V of the District of Colum-
bia Self-Government and Govern-
Title II, Subtitle A
mental Reorganization Act, and apply-
ing 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 sub-
section unless the Secretary has been
provided the certifications and infor-
mation described in paragraphs (3)
through (6) of section 602(b).
‘‘(ii) NEW LATEST PERMISSIBLE MA-
TURITY
DATE.—The provisions of sub-
section (a)(4) shall apply with respect to
the maturity of advances made under this
subsection, in the same manner as such
provisions apply with respect to the matu-
rity of advances made before October 1,
1995, except that subparagraph (B) of
such subsection (relating to the latest per-
missible maturity date) shall apply as if
the reference to ‘September 30, 1995’ were
a reference to ‘September 30, 1997’.
‘‘(C) NEW MAXIMUM AMOUNT OUTSTAND-
ING.—
Title II, Subtitle A
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (iii), if the conditions de-
scribed in clause (ii) are satisfied, each ad-
vance made under this subsection shall be
in the amount designated by the Mayor in
the Mayor’s requisition for such advance.
‘‘(ii) CONDITIONS
APPLICABLE
TO
DESIGNATED AMOUNT.— Clause (i) applies
if the Mayor determines that the amount
designated in the Mayor’s requisition for
such advance is needed to accomplish the
purpose described in paragraph (1), and
the Authority approves such amount.
‘‘(iii) AGGREGATE MAXIMUM AMOUNT
OUTSTANDING.—The sum of the antici-
pated principal and interest requirements
of all advances made under this paragraph
may not be greater than 100 percent of
the fiscal year 1997 limit.
‘‘(iv) FISCAL
YEAR
1997
LIMIT
DE-
SCRIBED.—In this subparagraph, the ‘fis-
cal year 1997 limit’ means the amount au-
thorized to be appropriated to the District
of Columbia as the annual Federal pay-
ment to the District of Columbia under
Title II, Subtitle A
title V of the District of Columbia Self-
Government and Governmental Reorga-
nization Act for the fiscal year ending Sep-
tember 30, 1997.
‘‘(D) DEPOSIT
OF
ADVANCES.—As pro-
vided in section 204(b) of the District of Co-
lumbia Financial Responsibility and Manage-
ment Assistance Act of 1995, each advance
made under this subsection for the account of
the District shall be deposited by the Secretary
into an escrow account held by the Authority.
‘‘SEC. 602. SHORT-TERM ADVANCES FOR SEASONAL CASH-
FLOW MANAGEMENT.
‘‘(a) IN GENERAL.—If the conditions in subsection
(b) are satisfied, the Secretary shall make an advance of
funds from time to time, out of any money in the Treasury
not otherwise appropriated, for the purpose of assisting
the District government in meeting its general expendi-
tures, as authorized by Congress, at times of seasonal
cash-flow deficiencies.
‘‘(b) CONDITIONS TO MAKING ANY SHORT-TERM AD-
VANCE.—The Secretary shall make an advance under this
section if—
‘‘(1) the Mayor delivers to the Secretary a req-
uisition for an advance under this section;
Title II, Subtitle A
‘‘(2) the date on which the requisitioned ad-
vance is to be made is in a control period;
‘‘(3) the Authority certifies to the Secretary
that—
‘‘(A) the District government has prepared
and submitted a financial plan and budget for
the District government;
‘‘(B) there is an approved financial plan
and budget in effect under the District of Co-
lumbia Financial Responsibility and Manage-
ment 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 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 govern-
ment;
‘‘(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
Title II, Subtitle A
obtain credit in the public credit markets or else-
where in sufficient amounts and on sufficiently rea-
sonable terms to meet the District government’s fi-
nancing needs;
‘‘(5) the Inspector General of the District of
Columbia certifies to the Secretary the information
described in paragraph (3) by providing the Sec-
retary with a certification conducted by an outside
auditor under a contract entered into pursuant to
section 208(a)(4) of the District of Columbia Pro-
curement Practices Act of 1985;
‘‘(6) the Secretary receives such additional cer-
tifications and opinions relating to the financial posi-
tion of the District government as the Secretary de-
termines to be appropriate from such other Federal
agencies and instrumentalities as the Secretary de-
termines to be appropriate; and
‘‘(7) the Secretary determines that there is rea-
sonable assurance of reimbursement for the advance
from the amount authorized to be appropriated as
the annual Federal payment to the District of Co-
lumbia 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.
Title II, Subtitle A
‘‘(c) AMOUNT OF ANY SHORT-TERM ADVANCE.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), if the conditions in paragraph (2) are sat-
isfied, each advance made under this section shall be
in the amount designated by the Mayor in the May-
or’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 deter-
mination under subparagraph (A); and
‘‘(ii) determines that the reimburse-
ment obligation of the District government
for an advance made under this section in
the amount designated in the Mayor’s req-
uisition is consistent with the financial
plan for the year.
‘‘(3) MAXIMUM AMOUNT OUTSTANDING.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), the unpaid principal balance of all
advances made under this section in any fiscal
Title II, Subtitle A
year of the District government shall not at any
time be greater than 100 percent of applicable
limit.
‘‘(B) SPECIAL
RULE
FOR
FISCAL
YEAR
1997.—The unpaid principal balance of all ad-
vances made under this section in fiscal year
1997 of the District government shall not at
any time be greater than the difference be-
tween—
‘‘(i) 150 percent of the applicable
limit for such fiscal year; and
‘‘(ii) the unpaid principal balance of
any advances made under section 601(d).
‘‘(C) APPLICABLE
LIMIT
DEFINED.—In
this paragraph, the ‘applicable limit’ for a fiscal
year is the amount authorized under title V of
the District of Columbia Self-Government and
Governmental Reorganization Act for appro-
priation as the Federal payment to the District
of Columbia for the fiscal year following the fis-
cal year in which the advance is made.
‘‘(d) MATURITY OF ANY SHORT-TERM ADVANCE.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), if the condition in paragraph (2) is satis-
fied, each advance made under this section shall ma-
Title II, Subtitle A
ture on the date designated by the Mayor in the
Mayor’s requisition for such advance.
‘‘(2) CONDITION APPLICABLE TO DESIGNATED
MATURITY.—Paragraph (1) applies if the Authority
determines that the reimbursement obligation of the
District government for an advance made under this
section having the maturity date designated in the
Mayor’s requisition is consistent with the financial
plan for the year.
‘‘(3) LATEST PERMISSIBLE MATURITY DATE.—
Notwithstanding paragraph (1), the maturity date
for any advance made under this section shall not be
later than 11 months after the date on which such
advance is made.
‘‘(e) INTEREST RATE.—Each advance made under
this section shall bear interest at an annual rate equal to
a rate determined by the Secretary at the time that the
Secretary makes such advance taking into consideration
the prevailing yield on outstanding marketable obligations
of the United States with remaining periods to maturity
comparable to the maturity of such advance, plus 1⁄8 of
1 percent.
‘‘(f) 10-BUSINESS-DAY ZERO BALANCE REQUIRE-
MENT.—After the expiration of the 12-month period be-
ginning on the date on which the first advance is made
Title II, Subtitle A
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 prin-
cipal 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 fol-
lowing such reduction.
‘‘(g) DEPOSIT OF ADVANCES.—As provided in section
204(b) of the District of Columbia Financial Responsibil-
ity and Management Assistance Act of 1995, advances
made under this section for the account of the District
government shall be deposited by the Secretary into an
escrow account held by the Authority.
‘‘SEC. 603. SECURITY FOR ADVANCES.
‘‘(a) IN GENERAL.—The Secretary shall require the
District government to provide such security for any ad-
vance made under this title as the Secretary determines
to be appropriate.
‘‘(b) AUTHORITY TO REQUIRE SPECIFIC SECU-
RITY.—As security for any advance made under this title,
the Secretary may require the District government to—
Title II, Subtitle A
‘‘(1) pledge to the Secretary specific taxes and
revenue of the District government, if such pledging
does not cause the District government to violate ex-
isting 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 para-
graph (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 reimburse-
ment payment out of taxes and revenue collected for
the support of the District government.
‘‘(2) EXCEPTIONS
FOR
TRANSITIONAL
AD-
VANCES.—
‘‘(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 gov-
ernment may use the proceeds of any ad-
vance made under section 602 to discharge
Title II, Subtitle A
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 appro-
priated 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 re-
imburse the Treasury for any advance
made under section 601(a).
‘‘(B) ADVANCES MADE ON OR AFTER OC-
TOBER 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 ad-
vance made under section 602 to discharge
its obligation to reimburse the Treasury
for any advance made under section
601(b).
Title II, Subtitle 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,
1996, the annual Federal payment appro-
priated 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 re-
imburse the Treasury for any advance
made under section 601(b).
‘‘(b) REMEDIES FOR FAILURE TO REIMBURSE.—If,
on any date on which a reimbursement payment is due
to the Treasury under the terms of any advance made
under this title, the District government does not make
such reimbursement payment, the Secretary shall take the
actions listed in this subsection.
‘‘(1) 
WITHHOLD
ANNUAL
FEDERAL
PAY-
MENT.—Notwithstanding any other law, before turn-
ing over to the Authority (on behalf of the District
government under section 205 of the District of Co-
lumbia Financial Responsibility and Management
Assistance Act of 1995) any annual Federal pay-
ment appropriated to the District government for
any fiscal year under title V of the District of Co-
Title II, Subtitle A
lumbia Self-Government and Governmental Reorga-
nization Act (if any), the Secretary shall withhold
from such annual Federal payment, and apply to-
ward reimbursement for the payment not made, an
amount equal to the amount needed to fully reim-
burse the Treasury for the payment not made.
‘‘(2) 
WITHHOLD
OTHER
FEDERAL
PAY-
MENTS.—If, after the Secretary takes the action de-
scribed 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
REVE-
NUES.—If, after the Secretary takes the actions de-
scribed 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
Title II, Subtitle A
reimbursement for the payment not made, an
amount equal to the amount needed to fully reim-
burse the Treasury for the payment not made.
‘‘(4) TAKE OTHER ACTIONS.—If, after the Sec-
retary takes the actions described in paragraphs (1)
through (3), the Treasury is not fully reimbursed,
the Secretary shall take any and all other actions
permitted by law to recover from the District gov-
ernment 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 Re-
sponsibility 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;
Title II, Subtitle A
‘‘(4) the term ‘financial plan and budget’ has
the meaning given such term under section 305(6)
of such Act; and
‘‘(5) the term ‘Secretary’ means the Secretary
of the Treasury.’’.
(d) EXPENDITURE OF FUNDS FROM ACCOUNT IN
ACCORDANCE WITH AUTHORITY INSTRUCTIONS.—Any
funds allocated by the Authority to the Mayor from the
escrow account described in subsection (b)(1) may be ex-
pended by the Mayor only in accordance with the terms
and conditions established by the Authority at the time
the funds are allocated.
(e) PROHIBITION AGAINST BORROWING WHILE SUIT
PENDING.—The Mayor may not requisition advances from
the Treasury pursuant to title VI of the District of Colum-
bia Revenue Act of 1939 if there is an action filed by the
Mayor or the Council which is pending against the Author-
ity 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 Sec-
retary of the Treasury shall deposit the annual Fed-
Title II, Subtitle A
eral payment to the District of Columbia for the
year authorized under title V of the District of Co-
lumbia Self-Government and Governmental Reorga-
nization Act into an escrow account held by the Au-
thority, which shall allocate the funds to the Mayor
at such intervals and in accordance with such terms
and conditions as it considers appropriate to imple-
ment 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 re-
spect to any portion of the Federal payment which
is withheld by the Secretary of the Treasury in ac-
cordance with section 604 of title VI of the District
of Columbia Revenue Act of 1939 (as added by sec-
tion 204(c)) to reimburse the Secretary for advances
made under title VI of such Act.
(b) EXPENDITURE OF FUNDS FROM ACCOUNT IN AC-
CORDANCE
WITH
AUTHORITY
INSTRUCTIONS.—Any
funds allocated by the Authority to the Mayor from the
escrow account described in paragraph (1) may be ex-
pended by the Mayor only in accordance with the terms
Title II, Subtitle A
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 reve-
nues obtained and expenditures made by the District gov-
ernment 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 subsection (a), independent audits, or
such other information as the Authority may obtain, that
the revenues or expenditures of the District government
during a control year are not consistent with the financial
plan and budget for the year, the Authority shall require
the Mayor to provide such additional information as the
Authority determines to be necessary to explain the incon-
sistency.
(c) CERTIFICATION OF VARIANCE.—
Title II, Subtitle A
(1) IN GENERAL.—After requiring the Mayor to
provide additional information under subsection (b),
the Authority shall certify to the Council, the Presi-
dent, the Secretary of the Treasury, and Congress
that the District government is at variance with the
financial plan and budget unless—
(A)(i) the additional information provides
an explanation for the inconsistency which the
Authority finds reasonable and appropriate, or
(ii) the District government adopts or im-
plements remedial action (including revising the
financial plan and budget pursuant to section
202(e)) to correct the inconsistency which the
Authority finds reasonable and appropriate,
taking into account the terms of the financial
plan and budget; and
(B) the Mayor agrees to submit the re-
ports described in subsection (a) on a monthly
basis for such period as the Authority may
require.
(2) SPECIAL RULE FOR INCONSISTENCIES AT-
TRIBUTABLE TO ACTS OF CONGRESS.—
(A) DETERMINATION BY AUTHORITY.—If
the Authority determines that the revenues or
expenditures of the District government during
Title II, Subtitle A
a control year are not consistent with the finan-
cial plan and budget for the year as approved
by the Authority under section 202 as a result
of the terms and conditions of the budget of
the District government for the year as enacted
by Congress or as a result of any other law en-
acted by Congress which affects the District of
Columbia, the Authority shall so notify the
Mayor.
(B) CERTIFICATION.—In the case of an in-
consistency described in subparagraph (A), the
Authority shall certify to the Council, the Presi-
dent, the Secretary of the Treasury, and Con-
gress that the District government is at vari-
ance with the financial plan and budget unless
the District government adopts or implements
remedial action (including revising the financial
plan and budget pursuant to section 202(e)) to
correct the inconsistency which the Authority
finds reasonable and appropriate, taking into
account the terms of the financial plan and
budget.
(d) EFFECT OF CERTIFICATION.—If the Authority
certifies to the Secretary of the Treasury that a variance
exists—
Title II, Subtitle A
(1) the Authority may withhold any funds de-
posited with the Authority under section 204(b) or
section 205(a) which would otherwise be expended
on behalf of the District government; and
(2) the Secretary shall withhold funds otherwise
payable to the District of Columbia under such Fed-
eral programs as the Authority may specify (other
than funds dedicated to making entitlement or bene-
fit payments to individuals), in such amounts and
under such other conditions as the Authority may
specify.
SEC. 207. RECOMMENDATIONS ON FINANCIAL STABILITY
AND MANAGEMENT RESPONSIBILITY.
(a) IN GENERAL.—The Authority may at any time
submit recommendations to the Mayor, the Council, the
President, and Congress on actions the District govern-
ment or the Federal Government may take to ensure com-
pliance 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 re-
lating to—
(1) the management of the District govern-
ment’s financial affairs, including cash forecasting,
information technology, placing controls on expendi-
Title II, Subtitle A
tures for personnel, reducing benefit costs, reforming
procurement practices, and placing other controls on
expenditures;
(2) the relationship between the District gov-
ernment and the Federal Government;
(3) the structural relationship of departments,
agencies, and independent agencies within the Dis-
trict government;
(4) the modification of existing revenue struc-
tures, or the establishment of additional revenue
structures;
(5) the establishment of alternatives for meet-
ing obligations to pay for the pensions of former
District government employees;
(6) modifications or transfers of the types of
services which are the responsibility of and are deliv-
ered by the District government;
(7) modifications of the types of services which
are delivered by entities other than the District gov-
ernment under alternative service delivery mecha-
nisms (including privatization and commercializa-
tion);
(8) the effects of District of Columbia laws and
court orders on the operations of the District gov-
ernment;
Title II, Subtitle A
(9) the establishment of a personnel system for
employees of the District government which is based
upon employee performance standards; and
(10) the improvement of personnel training and
proficiency, the adjustment of staffing levels, and
the improvement of training and performance of
management and supervisory personnel.
(b) RESPONSE TO RECOMMENDATIONS FOR ACTIONS
WITHIN AUTHORITY OF DISTRICT GOVERNMENT.—
(1) IN
GENERAL.—In the case of any rec-
ommendations submitted under subsection (a) dur-
ing 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 pro-
vides notice as to whether the District government
will adopt the recommendations.
(2) IMPLEMENTATION
PLAN
REQUIRED
FOR
ADOPTED RECOMMENDATIONS.—If the Mayor or the
Council (whichever is applicable) notifies the Author-
ity and Congress under paragraph (1) that the Dis-
trict government will adopt any of the recommenda-
tions submitted under subsection (a), the Mayor or
Title II, Subtitle A
the Council (whichever is applicable) shall include in
the statement a written plan to implement the rec-
ommendation which includes—
(A) specific performance measures to de-
termine the extent to which the District govern-
ment has adopted the recommendation; and
(B) a schedule for auditing the District
government’s compliance with the plan.
(3) 
EXPLANATIONS
REQUIRED
FOR
REC-
OMMENDATIONS
NOT
ADOPTED.—If the Mayor or
the Council (whichever is applicable) notifies the Au-
thority, the President, and Congress under para-
graph (1) that the District government will not
adopt any recommendation submitted under sub-
section (a) which the District government has au-
thority to adopt, the Mayor or the Council shall in-
clude in the statement explanations for the rejection
of the recommendations.
(c) IMPLEMENTATION OF REJECTED RECOMMENDA-
TIONS BY AUTHORITY.—
(1) IN GENERAL.—If the Mayor or the Council
(whichever is applicable) notifies the Authority, the
President, and Congress under subsection (b)(1)
that the District government will not adopt any rec-
ommendation submitted under subsection (a) which
100
Title II, Subtitle A
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 Com-
mittee on Government Reform and Oversight of the
House of Representatives and the Committee on
Governmental Affairs of the Senate.
(2) EFFECTIVE
DATE.—This subsection shall
apply with respect to recommendations of the Au-
thority made after the expiration of the 6-month pe-
riod which begins on the date of the enactment of
this Act.
SEC. 208. SPECIAL RULES FOR FISCAL YEAR 1996.
(a) ADOPTION OF TRANSITION BUDGET.—Notwith-
standing 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 appoint-
ment of its members, the Authority shall review the
proposed budget for the District of Columbia for
such fiscal year submitted to Congress under section
446 of the District of Columbia Self-Government
and Governmental Reorganization Act (taking into
account any items or provisions disapproved by the
Mayor or disapproved by the Mayor and reenacted
by the Council under section 404(f) of the District
101
Title II, Subtitle A
of Columbia Self-Government and Governmental Re-
organization 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 Reor-
ganization Act, and shall submit any recommenda-
tions for modifications to such financial plan and
budget to promote the financial stability of the Dis-
trict government to the Mayor, the Council, the
President, and Congress.
(2) Not later than 15 days after receiving the
recommendations of the Authority submitted under
paragraph (1), the Council (in consultation with the
Mayor) shall promptly adopt a revised budget for
the fiscal year (in this section referred to as the
‘‘transition budget’’), and shall submit the transition
budget to the Authority, the President, and Con-
gress.
(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 dis-
approved by the Mayor and reenacted by the Council
102
Title II, Subtitle A
under section 404(f) of the District of Columbia
Self-Government and Governmental Reorganization
Act, as amended by section 202(f)(2)), and shall in-
clude in the report such recommendations for revi-
sions to the transition budget as the Authority con-
siders appropriate to promote the financial stability
of the District government during the fiscal year.
(b) FINANCIAL PLAN AND BUDGET.—
(1) DEADLINE FOR SUBMISSION.—For purposes
of section 202, the Mayor shall submit the financial
plan and budget for fiscal year 1996 as soon as
practicable after the date of the enactment of this
Act (in accordance with guidelines established by the
Authority).
(2) ADOPTION
BY
COUNCIL.—In accordance
with the procedures applicable under section 202
(including procedures providing for review by the
Authority)—
(A) the Council shall adopt the financial
plan and budget for the fiscal year (including
the supplemental budget incorporated in the fi-
nancial plan and budget) prior to the submis-
sion by the Mayor of the financial plan and
budget for fiscal year 1997 under section
202(a); and
103
Title II, Subtitle A
(B) the financial plan and budget adopted
by the Council (and, in the case of a financial
plan and budget disapproved by the Authority,
together with the financial plan and budget ap-
proved and recommended by the Authority)
shall be submitted to Congress (in accordance
with the procedures applicable under such sec-
tion) as a supplemental budget request for fis-
cal year 1996 (in accordance with section 446
of the District of Columbia Self-Government
and Governmental Reorganization Act).
(3) TRANSITION
BUDGET
AS
TEMPORARY
FI-
NANCIAL 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 TREAS-
URY.—
(1) MONTHLY DETERMINATION OF PROGRESS
TOWARD
FINANCIAL
PLAN
AND
BUDGET.—During
each month of fiscal year 1996 prior to the adoption
104
Title II, Subtitle A
of the financial plan and budget, the Authority shall
determine whether the District government is mak-
ing appropriate progress in preparing and adopting
a financial plan and budget for the fiscal year under
this subtitle.
(2) CERTIFICATION.—The Authority shall pro-
vide the President and Congress with a certification
if the Authority finds that the District government
is not making appropriate progress in developing the
financial plan and budget for a month, and shall no-
tify the President and Congress that the certification
is no longer in effect if the Authority finds that the
District government is making such progress after
the certification is provided.
(3) PROHIBITION AGAINST ALLOCATION OF AD-
VANCES
IF
CERTIFICATION
IN
EFFECT.—At any
time during which a certification under paragraph
(2) is in effect, 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 fol-
lowing events (as determined by the Authority based upon
105
Title II, Subtitle A
information obtained through the Mayor, the Inspector
General of the District of Columbia, or such other sources
as the Authority considers appropriate):
(1) The requisitioning by the Mayor of ad-
vances 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 exist-
ence of any unreimbursed amounts obtained pursu-
ant to such authority.
(2) The failure of the District government to
provide sufficient revenue to a debt service reserve
fund of the Authority under subtitle B.
(3) The default by the District government with
respect to any loans, bonds, notes, or other form of
borrowing.
(4) The failure of the District government to
meet its payroll for any pay period.
(5) The existence of a cash deficit of the Dis-
trict government at the end of any quarter of the
fiscal year in excess of the difference between the es-
timated 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 re-
mainder of the fiscal year together with the first 6
106
Title II, Subtitle A
months of the succeeding fiscal year (as determined
by the Authority in consultation with the Chief Fi-
nancial 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 (occur-
ring after the date of the enactment of this Act)
the expenditures made by the District govern-
ment 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
107
Title II, Subtitle B
contained in the comprehensive annual financial
report for the District of Columbia under sec-
tion 448(a)(4) of the District of Columbia Self-
Government and Governmental Reorganization
Act).
(2) CONSULTATION
WITH
INSPECTOR
GEN-
ERAL.—In making the determination under this sub-
section, the Authority shall consult with the Inspec-
tor General of the District of Columbia.
(c) CONTROL PERIOD DEEMED TO EXIST UPON EN-
ACTMENT.—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 re-
quirements 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 Dis-
trict government, in such amounts and in such man-
ner as the Authority considers appropriate.
(2) SPECIAL
RULE
FOR
INSTRUMENTALITIES
WITH
INDEPENDENT
BORROWING
AUTHORITY.—In
the case of an agency or instrumentality of the Dis-
108
Title II, Subtitle B
trict 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 obliga-
tions 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 BOR-
ROWING 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, consist-
ent with the specified purposes of such funds and the ap-
plicable 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 Reorga-
nization Act and for any other purpose which the Author-
ity considers appropriate.
109
Title II, Subtitle B
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 enti-
ties purchasing bonds, notes, or other obligations issued
pursuant to this subtitle.
(b) DEDICATION OF REVENUE STREAM FROM DIS-
TRICT GOVERNMENT.—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 Au-
thority for purposes of securing repayment of bonds,
notes, or other obligations issued pursuant to this
subtitle; and
(2) to transfer the proceeds of any tax levied
for purposes of securing such bonds, notes, or other
obligations to the Authority immediately upon collec-
tion.
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 sub-
title, the Authority shall establish a debt service reserve
fund in accordance with this section.
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Title II, Subtitle B
(b) REQUIREMENTS FOR FUND.—
(1) FUND DESCRIBED.—A debt service reserve
fund established by the Authority pursuant to this
subsection shall consist of such funds as the Author-
ity 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 obliga-
tions are secured by such fund.
(2) USES OF FUNDS.—Amounts in a debt serv-
ice reserve fund may be used solely for the payment
of the principal of bonds secured in whole or in part
by such fund, the purchase or redemption of such
bonds, the payment of interest on such bonds, or the
payment of any redemption premium required to be
paid when such bonds and notes are redeemed prior
to maturity.
(3) RESTRICTIONS ON WITHDRAWALS.—
(A) IN
GENERAL.—Amounts in a debt
service reserve fund may not be withdrawn from
the fund at any time in an amount that would
reduce the amount of the fund to less than the
minimum reserve fund requirement established
for such fund in the resolution of the Authority
creating such fund, except for withdrawals for
the purpose of making payments when due of
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Title II, Subtitle B
principal, interest, redemption premiums and
sinking fund payments, if any, with respect to
such bonds for the payment of which other
moneys of the Authority are not available, and
for the purpose of funding the operations of the
Authority for a fiscal year (in such amounts
and under such conditions as are established
under the budget of the Authority for the fiscal
year under section 106(a)).
(B) USE OF EXCESS FUNDS.—Nothing in
subparagraph (A) may be construed to prohibit
the Authority from transferring any income or
interest earned by, or increments to, any debt
service reserve fund due to the investment
thereof to other funds or accounts of the Au-
thority (to the extent such transfer does not re-
duce the amount of the debt service reserve
fund below the minimum reserve fund require-
ment 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.
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Title II, Subtitle B
SEC. 214. OTHER REQUIREMENTS FOR ISSUANCE OF
BONDS.
(a) MINIMUM DEBT SERVICE RESERVE FUND RE-
QUIREMENT.—The Authority may not at any time issue
bonds, notes, or other obligations pursuant to this subtitle
which are secured in whole or in part by a debt service
reserve fund under section 213 if issuance of such bonds
would cause the amount in the debt reserve fund to fall
below the minimum reserve requirement for such fund, un-
less 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 ex-
ceed the minimum reserve fund requirement established
by the Authority at the time of the establishment of the
fund.
(b) AMOUNTS INCLUDED IN AGGREGATE LIMIT ON
DISTRICT BORROWING.—Any amounts provided to the
District government through the issuance of bonds, notes,
or other obligations to borrow funds pursuant to this sub-
title 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.
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Title II, Subtitle C
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 Au-
thority pursuant to this subtitle. The United States is not
responsible or liable for the payment of any principal of
or interest on any bond, note, or other obligation issued
by the Authority pursuant to this subtitle.
Subtitle C—Other Duties of
Authority
SEC. 221. DUTIES OF AUTHORITY DURING YEAR OTHER
THAN CONTROL YEAR.
(a) IN GENERAL.—During the period beginning upon
the termination of a control period pursuant to section
209(b) and ending with the suspension of its activities
pursuant to section 107(a), the Authority shall conduct
the following activities:
(1) The Authority shall review the budgets of
the District government adopted by the Council
under section 446 of the District of Columbia Self-
Government and Governmental Reorganization Act
for each fiscal year occurring during such period.
(2) At such time prior to the enactment of such
budget by Congress as the Authority considers ap-
propriate, the Authority shall prepare a report ana-
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Title II, Subtitle C
the District government in achieving financial stability
and management efficiency, including—
(1) assisting the District government in avoid-
ing defaults, eliminating and liquidating deficits,
maintaining sound budgetary practices, and avoiding
interruptions in the delivery of services;
(2) assisting the District government in improv-
ing the delivery of municipal services, the training
and effectiveness of personnel of the District govern-
ment, and the efficiency of management and super-
vision; and
(3) making recommendations to the President
for transmission to Congress on changes to this Act
or other Federal laws, or other actions of the Fed-
eral 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 Co-
lumbia, to prepare and submit such reports as the Author-
ity considers appropriate to assist it in carrying out its
responsibilities under this Act, including submitting copies
of any reports regarding revenues, expenditures, budgets,
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Title II, Subtitle C
costs, plans, operations, estimates, and other financial or
budgetary matters of the District government.
SEC. 224. REPORTS AND COMMENTS.
(a) ANNUAL REPORTS
TO CONGRESS.—Not later
than 30 days after the last day of each fiscal year which
is a control year, the Authority shall submit a report to
Congress describing—
(1) the progress made by the District govern-
ment in meeting the objectives of this Act during the
fiscal year;
(2) the assistance provided by the Authority to
the District government in meeting the purposes of
this Act for the fiscal year; and
(3) any other activities of the Authority during
the fiscal year.
(b) REVIEW AND ANALYSIS OF PERFORMANCE AND
FINANCIAL ACCOUNTABILITY REPORTS.—
(1) IN GENERAL.—The Authority shall review
each report prepared and submitted by the Mayor
under section 456 of the District of Columbia Self-
Government and Governmental Reorganization Act
(as added by section 3(a) of the Federal Payment
Reauthorization Act of 1994), and shall submit a re-
port to Congress analyzing the completeness and ac-
curacy of such reports.
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Title II, Subtitle C
(2) SUBMISSION OF REPORTS BY MAYOR.—Sec-
tion 456 of the District of Columbia Self-Govern-
ment and Governmental Reorganization Act, as
added by section 3(a) of the Federal Payment Reau-
thorization Act of 1994, is amended by adding at
the end the following new subsection:
‘‘(e) SUBMISSION OF REPORTS TO DISTRICT OF CO-
LUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT
ASSISTANCE AUTHORITY.—In the case of any report sub-
mitted by the Mayor under this section for a fiscal year
(or any quarter of a fiscal year) which is a control year
under the District of Columbia Financial Responsibility
and Management Assistance Act of 1995, the Mayor shall
submit the report to the District of Columbia Financial
Responsibility and Management Assistance Authority es-
tablished under section 101(a) of such Act in addition to
any other individual to whom the Mayor is required to
submit the report under this section.’’.
(c) COMMENTS REGARDING ACTIVITIES OF DISTRICT
GOVERNMENT.—At any time during a control year, the
Authority may submit a report to Congress describing any
action taken by the District government (or any failure
to act by the District government) which the Authority
determines will adversely affect the District government’s
ability to comply with an approved financial plan and
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Title III
budget under subtitle A or will otherwise have a signifi-
cant adverse impact on the best interests of the District
of Columbia.
(d) REPORTS ON EFFECT OF FEDERAL LAWS ON
DISTRICT GOVERNMENT.—At any time during any year,
the Authority may submit a report to the Mayor, the
Council, the President, and Congress on the effect of laws
enacted by Congress on the financial plan and budget for
the year and on the financial stability and management
efficiency of the District government in general.
(e) MAKING REPORTS PUBLICLY AVAILABLE.—The
Authority shall make any report submitted under this sec-
tion available to the public, except to the extent that the
Authority determines that the report contains confidential
material.
TITLE III—MISCELLANEOUS
PROVISIONS
SEC. 301. OTHER DISTRICT BUDGET REFORMS.
(a) INCLUSION
OF ALL FUNDS
OF DISTRICT
IN
BUDGET OF DISTRICT GOVERNMENT.—
(1) IN GENERAL.—Section 103 of the District
of Columbia Self-Government and Governmental
Reorganization Act (sec. 1–202, D.C. Code) is
amended—
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Title III
(A) by amending paragraph (10) to read
as follows:
‘‘(10) The term ‘District revenues’ means all
funds derived from taxes, fees, charges, miscellane-
ous receipts, the annual Federal payment to the Dis-
trict authorized under title V, grants and other
forms of financial assistance, or the sale of bonds,
notes, or other obligations, and any funds adminis-
tered by the District government under cost sharing
arrangements.’’;
(B) by amending paragraph (14) to read
as follows:
‘‘(14) The term ‘resources’ means revenues,
balances, enterprise or other revolving funds, and
funds realized from borrowing.’’; and
(C) by amending paragraph (15) to read
as follows:
‘‘(15) The term ‘budget’ means the entire re-
quest for appropriations or loan or spending author-
ity for all activities of all departments or agencies of
the District of Columbia financed from all existing,
proposed or anticipated resources, and shall include
both operating and capital expenditures.’’.
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall apply with respect to reve-
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Title III
nues, resources, and budgets of the District of Co-
lumbia for fiscal years beginning with fiscal year
1996.
(b) 
RESTRICTIONS
ON
REPROGRAMMING
OF
FUNDS.—
(1) IN
GENERAL.—Section 446 of such Act
(sec. 47–304, D.C. Code) is amended by adding at
the end the following: ‘‘After the adoption of the an-
nual budget for a fiscal year (beginning with the an-
nual budget for fiscal year 1995), no reprogramming
of amounts in the budget may occur unless the
Mayor submits to the Council a request for such re-
programming and the Council approves the request,
but only if any additional expenditures provided
under such request for an activity are offset by re-
ductions in expenditures for another activity.’’.
(2) CONFORMING AMENDMENT.—Section 5 of
D.C. Law 3–100 (sec. 47–364, D.C. Code) is hereby
repealed.
(c) PERMITTING COUNCIL TO REQUEST BUDGET
ADJUSTMENTS FROM MAYOR.—Section 442 of the Dis-
trict of Columbia Self-Government and Governmental Re-
organization Act (sec. 47–301, D.C. Code) is amended by
adding at the end the following new subsection:
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Title III
‘‘(3) the term ‘District government’ has the
meaning given such term under section 305(5) of
such Act.’’.
(e) DEADLINE FOR APPOINTMENT.—
(1) IN GENERAL.—Not later than 30 days after
its members are appointed, the Authority shall ap-
point the Inspector General of the District of Colum-
bia pursuant to section 208(a)(1) of the District of
Columbia Procurement Practices Act of 1985 (as
amended by subsection (a)).
(2) TRANSITION RULE.—The term of service of
the individual serving as the Inspector General
under section 208(a) of the District of Columbia
Procurement Practices Act of 1985 prior to the ap-
pointment of the Inspector General by the Authority
under section 208(a)(1) of such Act (as amended by
subsection (a)) shall expire upon the appointment of
the Inspector General by the Authority.
SEC. 304. COUNCIL APPROVAL OF CERTAIN CONTRACTS.
(a) IN GENERAL.—Section 451 of the District of Co-
lumbia Self-Government and Governmental Reorganiza-
tion Act (sec. 1–1130, D.C. Code) is amended—
(1) by amending the heading to read as follows:
‘‘SPECIAL RULES REGARDING CERTAIN CONTRACTS’’;