SEC. 2. TERMINATION OF FEDERAL MANDATES OVER 
LOCAL BUDGET PROCESS AND FINANCIAL 
MANAGEMENT OF DISTRICT OF COLUMBIA. 
(a) TERMINATION OF MANDATES.— 
(1) IN GENERAL.—Part D of title IV of the 
District of Columbia Home Rule Act (sec. 1–204.41 
et seq., D.C. Official Code) is amended by adding at 
the end the following new subpart: 
‘‘Subpart 3—Termination of Federal Mandates 
‘‘TERMINATION OF FEDERAL MANDATES 
‘‘SEC. 458. (a) BUDGET AND FINANCIAL MANAGE-
MENT GOVERNED UNDER DISTRICT LAW.—Effective with 
respect to fiscal year 2012 and each succeeding fiscal year 
which is not a control year— 
‘‘(1) the provisions of subpart 1 (other than 
section 451) and subpart 2 (other than section 455) 
shall not apply; and 
‘‘(2) the process by which the District of Co-
lumbia develops and enacts the budget for the Dis-
trict government for a fiscal year, and the activities 
carried out with respect to the financial management 
of the District government for a fiscal year, shall be 
established under such laws as may be enacted by 
the District. 
‘‘(b) NO EFFECT
ON EXISTING OBLIGATIONS.— 
Nothing in this section may be construed to relieve the 
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District of Columbia of any contractual or other financial 
obligations incurred by the District under a budget en-
acted for a fiscal year prior to fiscal year 2012.’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents of such Act is amended by adding at the end 
of the items relating to part D of title IV the fol-
lowing: 
‘‘Subpart 3—Termination of Federal Mandates 
‘‘Sec. 458. Termination of Federal mandates.’’. 
(b) ELIMINATION OF CONGRESSIONAL REVIEW PE-
RIOD FOR BUDGET ACTS.—Section 602(c) of such Act 
(sec. 1–206.02(c), D.C. Official Code) is amended— 
(1) in the second sentence of paragraph (1), by 
striking ‘‘paragraph (2)’’ and inserting ‘‘paragraphs 
(2) and (4)’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(4) In the case of any Act adopting the annual budg-
et for the District of Columbia government for fiscal year 
2012 or any succeeding fiscal year which is not a control 
year, such Act shall take effect upon the date prescribed 
by such Act.’’. 
SEC. 3. TERMINATION OF FEDERAL MANDATES OVER BOR-
ROWING OF MONEY. 
(a) TERMINATION OF MANDATES.— 
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(1) IN GENERAL.—Part E of title IV of the 
District of Columbia Home Rule Act (sec. 1–204.61 
et seq., D.C. Official Code) is amended by adding at 
the end the following new subpart: 
‘‘Subpart 6—Termination of Federal Mandates 
‘‘TERMINATION OF FEDERAL MANDATES 
‘‘SEC. 490A. (a) BORROWING GOVERNED UNDER 
DISTRICT LAW.—Except as provided in subsection (b), ef-
fective with respect to fiscal year 2012 and each suc-
ceeding fiscal year which is not a control year— 
‘‘(1) the provisions of subparts 1 through 5 
shall not apply; and 
‘‘(2) the process and rules by which the District 
of Columbia issues bonds or otherwise borrows 
money shall be established under such laws as may 
be enacted by the District. 
‘‘(b) EXCEPTION FOR CERTAIN PROVISIONS.—Sub-
section (a) does not apply with respect to the following 
sections: 
‘‘(1) Section 482 (relating to the full faith and 
credit of the District). 
‘‘(2) Section 484 (relating to the nonapplica-
bility of the full faith and credit of the United 
States). 
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‘‘(3) Section 485 (relating to the tax treatment 
of bonds and notes). 
‘‘(4) Section 486 (relating to legal investment 
in bonds and notes). 
‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed— 
‘‘(1) to relieve the District of Columbia of any 
obligation incurred with respect to bonds or other 
forms of borrowing issued prior to fiscal year 2012; 
or 
‘‘(2) to waive the application to the District of 
Columbia of any other Federal law governing the 
borrowing of funds by States or units of local gov-
ernment, including the Internal Revenue Code of 
1986.’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents of such Act is amended by adding at the end 
of the items relating to part E of title IV the fol-
lowing: 
‘‘Subpart 6—Termination of Federal Mandates 
‘‘Sec. 490A. Termination of Federal mandates.’’. 
(b) REPEAL OF CAP ON AMOUNT OF DISTRICT BOR-
ROWING.—Section 603(b) of such Act (sec. 1–206.03(b), 
D.C. Official Code) is amended by adding at the end the 
following new paragraph: 
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‘‘(4) Paragraphs (1) through (3) shall not apply with 
respect to fiscal year 2012 or any succeeding fiscal year 
which is not a control year.’’. 
SEC. 4. OTHER CONFORMING AMENDMENTS TO HOME 
RULE ACT RELATING TO CHANGES IN FED-
ERAL ROLE IN BUDGET PROCESS. 
(a) FEDERAL AUTHORITY OVER BUDGET-MAKING 
PROCESS.—Section 603(a) of the District of Columbia 
Home Rule Act (sec. 1–206.03, D.C. Official Code) is 
amended by inserting before the period at the end the fol-
lowing: ‘‘for a fiscal year which is a control year’’. 
(b) RESTRICTIONS APPLICABLE DURING CONTROL 
YEARS.—Section 603(d) of such Act (sec. 1–206.03(d), 
D.C. Official Code) is amended to read as follows: 
‘‘(d) In the case of a fiscal year which is a control 
year, the Council may not approve, and the Mayor may 
not forward to the President, any budget which is not con-
sistent with the financial plan and budget established for 
the fiscal year under subtitle A of title II of the District 
of Columbia Financial Responsibility and Management 
Assistance Act of 1995.’’. 
(c) DEFINITION.—Section 603(f) of such Act (sec. 1– 
206.03(f), D.C. Official Code) is amended to read as fol-
lows: 
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