114
(c) ANNUAL REPORT AND AUDIT.—Section 306 of
such Act (DC Code, sec. 1–2706) is amended—
(1) in subsection (a)—
(A) by striking ‘‘Board of Trustees’’ and
inserting ‘‘Director’’, and
(B) by striking ‘‘and to the Mayor of the
District of Columbia’’ and inserting ‘‘to the Di-
rector of the District of Columbia Offender Su-
pervision, Defender and Courts Services Agen-
cy, and to the Office of Management and Budg-
et’’; and
(2) in subsection (b)—
(A) by striking ‘‘Board of Trustees’’ and
inserting ‘‘Director’’; and
(B) by striking ‘‘the Administrative Office
of the United States Courts’’ and inserting ‘‘the
Director of the District of Columbia Offender
Supervision, Defender and Courts Services
Agency’’.
(d) APPROPRIATIONS.—Section 307 of such Act (DC
Code, sec. 1–2707) is amended—
(1) by amending subsection (a) to read as fol-
lows:
‘‘(a) There are authorized to be appropriated through
the State Justice Institute in each fiscal year such sums
115
as may be necessary to carry out the provisions of this
chapter. Funds appropriated by Congress for the District
of Columbia Public Defender Service shall be received by
the Director of the District of Columbia Offender Super-
vision, Defender and Courts Services Agency, and shall
be disbursed by that Director to and on behalf of the Serv-
ice. The Service shall submit to the Director of the Dis-
trict of Columbia Offender Supervision, Defender and
Courts Services Agency, at the time and in the form pre-
scribed by that Director, reports of its activities and finan-
cial position and its proposed budget.’’; and
(2) in subsection (b), by striking ‘‘Upon ap-
proval of the Board of Trustees, the’’ and inserting
‘‘The’’ .
Subtitle F—Miscellaneous
Provisions
SEC. 381. TECHNICAL ASSISTANCE AND RESEARCH.
There are authorized to be appropriated to the Na-
tional Institute of Justice in each fiscal year (beginning
with fiscal year 1998) such sums as may be necessary for
the following activities:
(1) Research and demonstration projects, eval-
uations, and technical assistance to assess and ana-
lyze the crime problem in the District of Columbia,
and to improve the ability of the criminal justice and
116
other systems and entities in the District of Colum-
bia to prevent, solve, and punish crimes.
(2) The establishment of a locally-based cor-
poration or institute in the District of Columbia sup-
porting research and demonstration projects relating
to the prevention, solution, or punishment of crimes
in the District of Columbia, including the provision
of related technical assistance.
SEC. 382. EXEMPTION FROM PERSONNEL AND BUDGET
CEILINGS 
FOR 
TRUSTEES 
AND 
RELATED
AGENCIES.
The Trustees described in sections 301 and 335 of
this title, and the activities of the agencies over which the
Trustees exercise financial oversight pursuant to those
sections, shall not be subject to the personnel or budget
limitations which otherwise apply to the District of Colum-
bia or its agencies.
TITLE 
IV—PRIVATIZATION 
OF
TAX COLLECTION AND AD-
MINISTRATION
SEC. 401. FINDINGS.
Congress finds as follows:
(1) The District of Columbia government has
historically had a poor record of determining and
117
collecting all revenue it is due under its revenue
code.
(2) The impact on the District’s financial condi-
tion of poor administration and collection is signifi-
cant and has contributed both to the size of its accu-
mulated operating deficit and to the difficulty in bal-
ancing the budget going forward.
(3) More complete collection of taxes would not
only increase District of Columbia revenues, but
would give residents and businesses a sense of equity
and that all were paying their fair share.
(4) Once District tax processing and collection
is competently managed it will be possible for the
District government to accurately assess the true
value of its many taxes and determine that some
may be reduced or eliminated without a significant
negative impact on revenues.
(5) Any reduction or elimination of non-produc-
tive or counterproductive taxes or taxes which cost
more to administer than they produce in revenue
would significantly improve the negative atmosphere
surrounding the District of Columbia tax system and
its enforcement.
118
SEC. 402. AUTHORIZING CHIEF FINANCIAL OFFICER TO
PRIVATIZE TAX ADMINISTRATION AND COL-
LECTION.
The Chief Financial Officer of the District of Colum-
bia may enter into contracts with a private entity for the
administration and collection of taxes of the District of
Columbia.
TITLE V—FINANCING OF DIS-
TRICT OF COLUMBIA ACCU-
MULATED DEFICIT
SEC. 501. FINDINGS.
Congress finds as follows:
(1) The District of Columbia government sold
accumulated deficit financing bonds in 1991.
(2) Between 1991 and the end of fiscal year
1997 the District of Columbia government is ex-
pected to accumulate an operating deficit in excess
of $500,000,000.
(3) Requiring the District of Columbia budget
for fiscal year 1998 to be balanced will ensure that
no further addition is made to the accumulated oper-
ating deficit.
(4) In every other example of an American city
in financial crisis, a vital and necessary component
of recovery was to finance the accumulated operat-
ing deficit.
119
(5) Carrying forward an accumualted operating
deficit of more than $500,000,000 has a significant
negative impact on the District of Columbia’s cash
flow and financial condition and on its ability to im-
prove its credit rating.
(6) It is not feasible to carry forward such a
debt with an expectation of paying it off gradually
from future budget surpluses.
(7) Financing the accumulated deficit would
improve the District’s cash management position
and allow more normal cash management tech-
niques.
SEC. 502. AUTHORIZATION FOR INTERMEDIATE-TERM AD-
VANCES OF FUNDS BY THE SECRETARY OF
THE TREASURY TO LIQUIDATE THE ACCUMU-
LATED GENERAL FUND DEFICIT OF THE DIS-
TRICT OF COLUMBIA.
Title VI of the District of Columbia Revenue Act of
1939 (DC Code, sec. 47–3401 et seq.) is amended—
(1) by redesignating sections 602 through 605
as sections 603 through 606, respectively; and
(2) by inserting after section 601 the following:
120
‘‘SEC. 602. INTERMEDIATE-TERM ADVANCES FOR LIQUIDA-
TION OF DEFICIT.
‘‘(a) IN GENERAL.—If the conditions in subsection
(b) are satisfied, the Secretary shall make an advance of
funds from time to time, out of any money in the Treasury
not otherwise appropriated and to the extent provided in
advance in annual appropriations Acts, for the purpose of
assisting the District government in liquidating the out-
standing accumulated operating deficit of the general fund
of the District government existing as of September 30,
1997.
‘‘(b) CONDITIONS TO MAKING ANY INTERMEDIATE-
TERM ADVANCE.—The Secretary shall make an advance
under this section if—
‘‘(1) the Mayor delivers to the Secretary the fol-
lowing instruments, in form and substance satisfac-
tory to the Secretary—
‘‘(A) a financing agreement in which the
Mayor agrees to procedures for requisitioning
advances;
‘‘(B) a requisition for an advance under
this section; and
‘‘(C) a promissory note evidencing the Dis-
trict government’s obligation to reimburse the
Treasury for the requisitioned advance, which
note may be a general obligation bond issued
121
under section 461(a) of the District of Colum-
bia Self-Government and Governmental Reorga-
nization Act by the District government to the
Secretary if the Secretary determines that such
a bond is satisfactory;
‘‘(2) the date on which the requisitioned ad-
vance is requested to be made is not later than 3
years from the date of enactment of the National
Capital Revitalization and Self-Government Improve-
ment Act of 1997;
‘‘(3) the District government delivers to the
Secretary—
‘‘(A) evidence demonstrating to the satis-
faction of the Secretary that, at the time of the
Mayor’s requisition for an advance, the District
government is effectively unable to obtain credit
in the public credit markets or elsewhere in suf-
ficient amounts and on sufficiently reasonable
terms to meet the District government’s need
for financing to accomplish the purpose de-
scribed in subsection (a); and
‘‘(B) a schedule setting out the anticipated
timing and amounts of requisitions for advances
under this section;
122
‘‘(4) the Authority certifies to the Secretary
that—
‘‘(A) 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
in which the requisition is to be made;
‘‘(B) at the time that the Mayor’s requisi-
tion for an advance is delivered to the Sec-
retary, the District government is in compliance
with the approved financial plan and budget;
‘‘(C) both the receipt of funds from such
advance and the reimbursement of Treasury for
such advance are consistent with the approved
financial plan and budget for the year;
‘‘(D) such advance will not adversely affect
the financial stability of the District govern-
ment; and
‘‘(E) at the time that the Mayor’s requisi-
tion for an advance is delivered to the Sec-
retary, the District government is effectively
unable to obtain credit in the public credit mar-
kets or elsewhere in sufficient amounts and on
sufficiently reasonable terms to meet the Dis-
123
trict government’s need for financing to accom-
plish the purpose described in subsection (a);
‘‘(5) the Inspector General of the District of
Columbia certifies to the Secretary the information
described in subparagraphs (A) through (D) of para-
graph (4), and in making this certification, the In-
spector General may rely upon an audit conducted
by an outside auditor engaged by the Inspector Gen-
eral under section 208(a)(4) of the District of Co-
lumbia Procurement Practices Act of 1985 if, after
reasonable inquiry, the Inspector General concurs in
the findings of such audit;
‘‘(6) the Secretary determines that—
‘‘(A) there is reasonable assurance of reim-
bursement for the requisitioned advance; and
‘‘(B) the debt owed by the District govern-
ment to the Treasury on account of the
requisitioned advance will not be subordinate to
any other debt owed by the District or to any
other claims against the District; and
‘‘(7) the Secretary receives from such persons
as the Secretary determines to be appropriate such
additional certifications and opinions relating to
such matters as the Secretary determines to be ap-
propriate.
124
‘‘(c) AMOUNT
OF ANY INTERMEDIATE-TERM AD-
VANCE.—
‘‘(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 certifies that the amount
designated in the Mayor’s requisition for such
advance is needed to accomplish the purpose
described in subsection (a) within 30 days of
the time that the Mayor’s requisition is deliv-
ered to the Secretary; and
‘‘(B) the Authority concurs in the Mayor’s
certification under subparagraph (A).
‘‘(3) 
MAXIMUM
AMOUNT.—Notwithstanding
paragraph (1), the aggregate amount of all advances
made under this section shall not be greater than
$500,000,000.
‘‘(d) MATURITY OF ANY INTERMEDIATE-TERM AD-
VANCE.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), each advance made under this
125
section shall mature on the date designated by the
Mayor in the Mayor’s requisition for such advance.
‘‘(2) LATEST PERMISSIBLE MATURITY DATE.—
Notwithstanding paragraph (1), the maturity date
for any advance made under this section shall not be
later than 15 years from the date on which the first
advance under this section is made.
‘‘(4) SECRETARY’S RIGHT TO REQUIRE EARLY
REIMBURSEMENT.—Notwithstanding paragraph (1),
if the Secretary determines, at any time while any
advance made under this section has not been fully
reimbursed, that the District is able to obtain credit
in the public credit markets or elsewhere in suffi-
cient amounts and on sufficiently reasonable terms,
in the judgment of the Secretary, to refinance all or
a portion of the unpaid balance of such advance in
the public credit markets or elsewhere without ad-
versely affecting the financial stability of the District
government, the Secretary may require reimburse-
ment for all or a portion of the unpaid balance of
such advance at any time after the Secretary makes
the determination.
‘‘(e) INTEREST RATE.—Each advance made under
this section shall bear interest at an annual rate equal to
a rate determined by the Secretary at the time that the
126
Secretary makes such advance taking into consideration
the prevailing yield on outstanding marketable obligations
of the United States with remaining periods to maturity
comparable to the repayment schedule of such advance,
plus 1⁄8 of 1 percent.
‘‘(f) OTHER TERMS AND CONDITIONS.—Each ad-
vance made under this section shall be on such other terms
and conditions, including repayment schedule, as the Sec-
retary determines to be appropriate.
‘‘(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. 503. CONFORMING AMENDMENTS.
(a) AMENDMENT TO SECTION 601.—Section 601 of
the District of Columbia Revenue Act of 1939 (DC Code,
sec. 47–3401) is amended—
(1) in subsection (c)(2)(B)(i)(IV), by striking
‘‘602(b)’’ and inserting ‘‘603(b)’’; and
(2) in subsection (d)(2)(B)(iii), by striking
‘‘602(b)’’ and inserting ‘‘603(b)’’.
127
(b) AMENDMENT TO SECTION 604.—Section 604 of
the District of Columbia Revenue Act of 1939 (DC Code,
sec. 47–3401.3) is amended—
(1) in subsection (a)(2)(A)(i), by striking ‘‘602’’
and inserting ‘‘603’’; and
(2) in subsection (a)(2)(B)(i), by striking
‘‘602’’ and inserting ‘‘603’’.
SEC. 504. TECHNICAL CORRECTIONS.
Section 601 of the District of Columbia Revenue Act
of 1939 (DC Code, sec. 47–3401) is amended—
(1) in subsection (a)(3)(D), by striking ‘‘Sep-
tember 30, 1995’’ and inserting ‘‘September 30,
1996’’;
(2) in subsection (b)(2)(E), by striking ‘‘Sep-
tember 30, 1996’’ and inserting ‘‘September 30,
1997’’;
(3) in subsection (c)(2)(B)(i), by striking ‘‘Oc-
tober 1, 1995’’ and inserting ‘‘September 30, 1995’’;
(4) in subsection (d)(2)(B)(i)(II), by striking
‘‘September 30, 1997’’ and inserting ‘‘September
30, 1998’’;
(5) in subsection (d)(2)(B)(ii)—
(A) by striking ‘‘September 30, 1995’’ and
inserting ‘‘October 1, 1995’’; and
128
(B) by striking ‘‘September 30, 1997’’ and
inserting ‘‘October 1, 1997’’; and
(6) in subsection (d)(2)(C)(iv), by striking
‘‘September 30, 1997’’ and inserting ‘‘September
30, 1998’’.
SEC. 505. AUTHORIZATION FOR ISSUANCE OF GENERAL OB-
LIGATION BONDS BY THE DISTRICT OF CO-
LUMBIA TO FINANCE OR REFUND ITS ACCU-
MULATED GENERAL FUND DEFICIT.
Section 461(a) of the District of Columbia Self-Gov-
ernment and Governmental Reorganization Act (DC Code,
sec. 47–321(a)) is amended—
(1) in paragraph (1), by inserting ‘‘to finance
or refund the outstanding accumulated operating
deficit of the general fund of the District of
$500,000,000, existing as of September 30, 1997,’’
after ‘‘existing as of September 30, 1990,’’; and
(2) in paragraph (2), by inserting ‘‘existing as
of September 30, 1990’’ after ‘‘operating deficit’’.
TITLE VI—REVENUE BONDS
SEC. 601. SHORT TITLE; FINDINGS.
(a) SHORT TITLE.—This title may be cited as the
‘‘District of Columbia Revenue Bond Financing Authority
Improvements Act of 1997’’.
(b) FINDINGS.—Congress finds as follows:
129
(A) The District of Columbia revenue bond
authority was written in 1973 and contained
many restrictions not imposed on states or by
states on other local governments.
(B) The types and uses of revenue bonds
have changed significantly in states and local-
ities since 1973.
(C) The District of Columbia has never
been able to use all of its annual allocation of
revenue bond authority under its current re-
strictions.
(D) The District of Columbia has suffered
a lack of economic development due in part to
restrictions on its use of revenue bonds.
(E) The District of Columbia is at a com-
petitive disadvantage with its neighbors because
of the antiquated and restricted nature of its
revenue bond authority.
SEC. 602. AMENDMENTS TO HOME RULE CHARTER PROVI-
SION GOVERNING REVENUE BONDS.
(a) USES OF REVENUE BONDS.—The first sentence
of section 490(a)(1) of the District of Columbia Self-Gov-
ernment and Governmental Reorganization Act (DC Code,
sec. 47–334(a)(1)) is amended to read as follows: ‘‘The
Council may by act or by resolution authorize the issuance
130
of taxable and tax-exempt revenue bonds, notes, or other
obligations (including refunding bonds, notes, or other ob-
ligations) to borrow money on behalf of any qualified ap-
plicant to finance, refinance, or reimburse, or to assist in
the financing, refinancing, or reimbursing of or for, under-
takings in the areas of housing, health facilities, transit
and utility facilities, sports, convention, tourism hospi-
tality, and entertainment facilities, recreation facilities, fa-
cilities to house and equip operations of the District gov-
ernment or any District instrumentality, public infrastruc-
ture development and redevelopment, elementary, second-
ary, and college and university facilities, educational pro-
grams which provide loans for the payment of educational
expenses for and on behalf of students, facilities for gener-
ating, treating, and distributing water and disposing of
wastewater, pollution control facilities, solid and hazard-
ous waste facilities, parking facilities, manufacturing fa-
cilities, industrial and commercial development, any of the
capital expenditures that the District is authorized to
make, and any other property or project for the use of
others that will, as determined by the Council, contribute
to the health, education, safety, or welfare of, or the cre-
ation or the preservation of jobs for, residents of the Dis-
trict, or to economic development in the District, and any
facilities or property, real or personal, used in connection
131
with or supplementing any of the foregoing, and any costs
related to the issuance, carrying, security, or liquidity or
credit enhancement of or for such bonds, notes, or other
obligations, including capitalized interest and reserves,
and the costs of bond or loan insurance, letters of credit,
and guaranteed investment, forward purchase, remarket-
ing, auction, and swap agreements.’’.
(b) USES
OF
REVENUES
TO
PAY
OR
SECURE
BONDS.—The second sentence of section 490(a)(3) of the
District of Columbia Self-Government and Governmental
Reorganization Act (DC Code, sec. 47–334(a)(3)) is
amended to read as follows: ‘‘Subject to subsection (c),
any act or resolution of the Council authorizing the issu-
ance of revenue bonds, notes, or other obligations may
provide for (A) the payment of such bonds, notes, or other
obligations from any available revenues, including enter-
prise fund revenues, assets, or property ; and (B) the se-
curing of such bond, note, or other obligation by the mort-
gage of real property and the creation of a security inter-
est in available revenues, including enterprise fund reve-
nues, assets, or other property.’’.
(c) AUTHORIZATION TO DELEGATE AUTHORITY.—
(1) IN GENERAL.—Section 490(a) of the Dis-
trict of Columbia Self-Government and Govern-
mental Reorganization Act (DC Code, sec. 47–
132
334(a)) is amended by adding at the end the follow-
ing new paragraph:
‘‘(6)(A) The Council may by act delegate to any
duly created District instrumentality the authority of
the Council under this section to issue taxable or
tax-exempt revenue bonds, notes, or other obliga-
tions for the purposes specified in this section. For
purposes of this paragraph, the Council shall specify
for what undertakings revenue bonds, notes, or other
obligations may be issued under each delegation
made pursuant to this subsection. Any such District
instrumentality may exercise the authority and pow-
ers incident thereto delegated to it by the Council as
described in the first sentence of this paragraph
(whether such delegation is made before or after the
date of enactment of this subsection) only in accord-
ance with this subsection and shall be consistent
with this section and the terms of the delegation.
The enumeration of any power in this Act shall not
be construed as a limitation upon such general pow-
ers.
‘‘(B) Revenue bonds, notes, or other obligations
issued by any District instrumentality under a dele-
gation of authority described in subparagraph (A)
shall be issued by resolution of that instrumentality,
133
and any such resolution shall not be considered to
be an act of the Council.
‘‘(C) Nothing in this paragraph shall be con-
strued as restricting, impairing, or superseding the
authority otherwise vested by law in independent in-
strumentalities of the District government.’’.
(2) CONFORMING AMENDMENTS.—Section 490
of such Act (DC Code, sec. 47–334), as amended by
the District of Columbia Water and Sewer Authority
Act of 1996, is amended by striking subsections (g)
and (h).
(d) REVENUE BONDS EXCLUDED
FROM CERTAIN
LIMITATIONS.—Section 490(f) of the District of Columbia
Self-Government and Governmental Reorganization Act
(DC Code, sec. 47–334(f)) is amended to read as follows:
‘‘(f)(1) The fourth sentence of section 446 shall not
apply to—
‘‘(A) any amount (including the amount of
any accrued interest or premium) obligated or
expended from the proceeds of the sale of any
revenue bond, note, or other obligation issued
under this section;
‘‘(B) any amount obligated or expended for
the payment of the principal of, interest on, or
134
any premium for any revenue bond, note, or
other obligation issued under this section; and
‘‘(C) any amount obligated or expended to
secure any revenue bond, note, or other obliga-
tion issued under this section.
‘‘(2) The amount of any revenue bonds, notes,
or other obligations issued by the District or any
duly created and authorized District instrumentality
under this section shall not be taken into account in
determining whether the amount of funds borrowed
by the District during a fiscal year as general obliga-
tion bonds or Treasury capital project loans exceeds
the limitation on that amount provided in section
603(b).’’.
(e) DEFINITIONS.—Section 490 of the District of Co-
lumbia Self-Government and Governmental Reorganiza-
tion Act (DC Code, sec. 47–334), as amended by sub-
section (c)(2), is amended by adding at the end the follow-
ing new subsection:
‘‘(g) For purposes of this section:
‘‘(1) The term ‘revenue bonds, notes, or other
obligations’ means special fund bonds, notes, or
other obligations (including refunding bonds, notes,
or other obligations) issued by the District or by a
duly created and authorized District instrumentality
135
to borrow money on behalf of qualified applicants to
finance, refinance, or reimburse, or to assist in the
financing, refinancing, or reimbursing of or for, the
undertakings referred to in subsection (a)(1), the
principal of and interest, if any, on which are to be
paid and secured in the manner described in this
section, and which are special obligations and to
which the full faith and credit of the District of Co-
lumbia is not pledged.
‘‘(2) The term ‘District instrumentality’ means
any agency or instrumentality (including any inde-
pendent agency or instrumentality), authority, com-
mission, board, department, division, office, or body
of the District government established by it or by
the laws of the United States of America (whether
established before or after the date of enactment of
this subsection).
‘‘(3) The term ‘available revenues’ means gross
revenues and receipts, other than general fund tax
receipts, lawfully available for the purpose and not
otherwise exclusively committed to another purpose,
including enterprise funds, grants, subsidies, con-
tributions, and proceeds of revenue bonds, notes, or
other obligations issued under this section.
136
‘‘(4) The term ‘enterprise fund’ means a fund
or account for operations that are financed or oper-
ated in a manner similar to private business enter-
prises, or established so that separate determina-
tions may more readily be made periodically of reve-
nues earned, expenses incurred, or net income for
management control, accountability, capital mainte-
nance, public policy, or other purposes.’’.
SEC. 603. CLARIFICATION OF TREATMENT OF REVENUE
BONDS UNDER FINANCIAL RESPONSIBILITY
AND MANAGEMENT ASSISTANCE ACT.
Section 204 of the District of Columbia Financial Re-
sponsibility and Management Assistance Act of 1995 (DC
Code, sec. 47–392.4) is amended by adding at the end
the following new subsection:
‘‘(g) REVENUE BONDS NOT TREATED AS BORROW-
ING.—For purposes of this section, the issuance of any
revenue bond, note, or other obligation under section 490
of the District of Columbia Self-Government and Govern-
mental Reorganization Act shall not be considered to be
a borrowing of funds by the District.’’.
137
TITLE VII—DISTRICT OF COLUM-
BIA 
ECONOMIC 
DEVELOP-
MENT CORPORATION
Subtitle A—General Provisions
SEC. 701. SHORT TITLE.
This title may be cited as the ‘‘District of Columbia
Economic Development Corporation Act of 1997’’.
SEC. 702. FINDINGS.
Congress finds the following:
(1) There is a substantial need in the District
of Columbia for economic development to provide
and maintain employment and tax revenues, and the
District of Columbia faces unique barriers to accom-
plishing and realizing economic development from its
own resources.
(2) The District of Columbia has a unique sta-
tus under the Constitution in that it is the seat of
the Federal Government, but it is not a State or a
political subdivision of a State.
(3) The government of the District of Columbia
is uniquely disadvantaged, when compared to other
cities which are political subdivisions of a State, in
its ability to accomplish and realize economic devel-
opment because it does not have any State govern-
ment to perform the functions of coordinating, sup-
138
porting, and promoting economic development that
State governments commonly perform for other
cities.
(4) The government of the District of Columbia
is uniquely disadvantaged, when compared to other
cities, in its ability to finance economic development
from local tax revenues because Federal law pre-
vents the District of Columbia government from as-
sessing and collecting certain local taxes.
(5) No other jurisdiction has all these disadvan-
tages, the cumulative effect of which is greater than
the sum of the effects of the individual factors.
(6) The Federal Government is a beneficiary of
a substantial number of recurring and nonrecurring
unreimbursed services provided by the government
of the District of Columbia.
(7) It is in the national interest that the Fed-
eral government assist the District of Columbia in
maintaining itself as a safe, clean, and beautiful city
worthy of the seat of the Federal Government of a
Great Nation, a goal that will be realized only
through the development of a sound local economic
base in the District of Columbia.
SEC. 703. PURPOSES.
The purposes of this title are—
139
(1) to expand overall levels of economic output,
income, and employment in the District of Columbia;
(2) to improve employment and business oppor-
tunities in distressed neighborhoods and for low-in-
come residents throughout the District of Columbia;
(3) to enhance the capacity of public and pri-
vate organizations to facilitate the expansion of em-
ployment and business opportunities;
(4) to increase the rate of private sector invest-
ment in the District of Columbia;
(5) to develop comprehensive strategies for the
economic development of the District of Columbia as
a whole and for particular areas, neighborhoods,
transportation corridors, and economic sectors of the
District of Columbia, and to identify projects and
activities to fulfill the strategies;
(6) to assist the implementation of, or imple-
ment, projects throughout the District of Columbia
(including a new or expanded convention center and
infrastructure projects) that can yield substantial
economic benefits for its residents;
(7) to enhance the institutional capacity of the
government of the District of Columbia to accom-
plish and realize economic development; and
140
(8) to ameliorate the consequences of the lim-
ited tax base and taxing authority of the District of
Columbia, as described in section 702.
SEC. 704. DEFINITIONS.
For purposes of this title:
(1) APPOINTED
BOARD
MEMBER.—The term
‘‘appointed Board member’’ or ‘‘appointed Board
members’’ means a Board member or Board mem-
bers appointed under section 713(b)(1)(A).
(2) BOARD.—The term ‘‘Board’’ means the
board of directors of the Corporation.
(3) CHAIR.—The term ‘‘Chair’’ means the
chairperson of the Board.
(4) CORPORATION.—The term ‘‘Corporation’’
means the District of Columbia Economic Develop-
ment Corporation, including any subsidiary estab-
lished by the Corporation (other than for purposes
of subtitle B).
(5) DISTRESSED AREA.—The term ‘‘distressed
area’’ means any population census tract having a
poverty rate of at least 15 percent.
(6) DISTRICT GOVERNMENT.—The term ‘‘Dis-
trict government’’ means the government of the Dis-
trict of Columbia, including—
141
(A) any department, agency, or instrumen-
tality of the government of the District of Co-
lumbia;
(B) any independent agency of the District
of Columbia established under part F of title IV
of the District of Columbia Self-Government
and Governmental Reorganization Act;
(C) any other agency, board, or commis-
sion established by the Mayor or the Council;
(D) the courts of the District of Columbia;
(E) the Council; and
(F) any other agency, public authority, or
public benefit corporation that has the author-
ity to receive monies directly or indirectly from
the District of Columbia (other than monies re-
ceived from the sale of goods, the provision of
services, or the loaning of funds to the District
of Columbia),
except that such term does not include the Corpora-
tion.
(7) ECONOMIC DEVELOPMENT PROJECT.—The
term ‘‘economic development project’’ means any
project—
(A) that is to be used or occupied by any
person;
142
(B) that is located or is to be located with-
in the District of Columbia;
(C) that the Corporation determines will
tend to—
(i) create or retain jobs for residents
of the District of Columbia;
(ii) maintain or increase the tax base
of the economy of the District of Colum-
bia;
(iii) maintain, expand, or diversify in-
dustry in the District of Columbia;
(iv) promote the export of products or
services beyond the boundaries of the Dis-
trict of Columbia; or
(v) otherwise contribute to, support,
or enhance existing activities that are im-
portant to the economic base of the Dis-
trict of Columbia; and
(D)(i) that is unable to obtain conventional
financing in sufficient amounts and on suffi-
ciently reasonable terms in the sole judgment of
the Corporation; or
(ii) whose ability, in the judgment of the
Corporation, to start, continue to operate, ex-
pand, or maintain operations or relocate to the
143
District of Columbia is dependent upon finan-
cial assistance.
(8) EX OFFICIO BOARD MEMBER.—The term
‘‘ex officio Board member’’ or ‘‘ex officio Board
members’’ means the Board member or Board mem-
bers described in section 713(b)(1)(B).
(9) FINANCIAL ASSISTANCE.—The term ‘‘finan-
cial assistance’’ means any of the following provided
to persons for the purchase, acquisition, construc-
tion, expansion, continued operation, reconstruction,
rehabilitation, repair, or placing into operation of an
economic development project:
(A) Any loan, extension of credit, equity
investment, grant, fixed contribution to a loan
loss or debt service reserve fund, or any other
similar form of financing or refinancing, but ex-
cluding any loan guarantee, insurance of pay-
ment of principal and interest, and any other
similar form of credit support that provides re-
course to the Corporation.
(B) Any exchange, lease, or conveyance of
land;
(C) Any allocation of tax credits under sec-
tion 1400D of the Internal Revenue Code of
145
(B) any machinery, equipment, furniture,
fixture, or other personal property, and the land
on which it is located or to be located, or which
is reasonably necessary thereto.
(13) RETURN ON INVESTMENT.—The term ‘‘re-
turn on investment’’ means any and all forms of
principal or interest payments, dividends, stock dis-
tributions, equity participations, options, warrants,
debentures, and any and all other forms of remu-
neration to the Corporation in return for any finan-
cial assistance provided or offered.
(14) SUSPENSION DATE.—The term ‘‘suspen-
sion date’’ means September 30, 2007.
(15) TARGETED
DISTRICT
RESIDENT.—The
term ‘‘targeted resident’’ means any individual—
(A)(i) whose principal place of abode
(I) is the District of Columbia; and
(II) is within a population census
tract having a poverty rate of at least 15
percent; and
(ii) who has an annual income less than
$28,500 (adjusted in calendar years after 1997
as provided in section 1400A(d)(5) of the Inter-
nal Revenue Code of 1986); or
146
(B)(i) whose principal place of abode is the
District of Columbia; and
(ii) who is a member of a targeted group
described in section 51 of the Internal Revenue
Code of 1986.
(16) TERMINATION DATE.—The term ‘‘termi-
nation date’’ means September 30, 2010.
Subtitle B—District of Columbia
Economic 
Development 
Cor-
poration Charter
SEC. 711. ESTABLISHMENT.
Under Article I, section 8, clause 17 of the Constitu-
tion of the United States, there is established the District
of Columbia Economic Development Corporation (to be
known for purposes of the Revenue Reconciliation Act of
1997 as the ‘‘Economic Development Corporation’’).
SEC. 712. STATUS OF CORPORATION.
Except as otherwise provided in this title, the Cor-
poration is established as a corporate body and instrumen-
tality of the government of the District of Columbia, and
is not established as, and is not to be considered, a depart-
ment, agency, establishment or instrumentality of the
United States.
147
SEC. 713. BOARD OF DIRECTORS.
(a) IN GENERAL.—The powers of the Corporation
shall be vested in, and the Corporation shall be adminis-
tered by, the Board.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Board shall consist of 9
voting members as follows:
(A) APPOINTED BOARD MEMBERS.—
(i) PRESIDENTIAL APPOINTMENTS.—
Five members appointed by the President
from among individuals who meet the gen-
eral eligibility requirements described in
subparagraph (C)—
(I) 4 of whom shall be individuals
selected from organizations engaged
in for-profit business activity, such as
real estate development, retailing,
manufacturing, construction, or finan-
cial services; and
(II) 1 of whom shall be an indi-
vidual selected from a community-
based organization.
(ii) DISTRICT
APPOINTMENT.—One
member appointed by the Mayor, with the
approval of the Council—
148
(I) from among individuals who
meet the general eligibility require-
ments described in subparagraph (C);
and
(II) who shall be an individual
selected from either an organization
engaged in for-profit business activity
or a community-based organization.
(B) EX OFFICIO BOARD MEMBERS.—Three
ex officio Board members designated as follows:
(i) An officer or employee of the Fed-
eral government designated by the Presi-
dent from among the Office of Manage-
ment and Budget, the Department of the
Treasury, the Department of Commerce,
the Department of Housing and Urban
Development, the Department of Labor, or
the Small Business Administration.
(ii) The Mayor or an alternate des-
ignated by the Mayor from among senior
officers of the District government.
(iii) The Chairman of the Council or
an alternate designated by the Chairman
from among other members of the Council
149
or senior officers of the District govern-
ment.
(C) 
GENERAL
ELIGIBILITY
REQUIRE-
MENTS.—An individual is eligible to be ap-
pointed as a Board member under subpara-
graph (A) if that individual—
(i) has expertise in economic develop-
ment;
(ii) maintains a primary residence, or
has a primary place of business, in the
District of Columbia; and
(iii) is not an officer or employee of
the Federal Government or the District
government.
(2) CONSULTATION WITH CONGRESS.—In ap-
pointing the Board members under paragraph
(1)(A), the President shall consult with the Chair of
the Committee on Appropriations and the Chair of
the Committee on Governmental Reform and Over-
sight of the House of Representatives, the Chair of
the Committee on Appropriations and the Chair of
the Committee on Governmental Affairs of the Sen-
ate, and the Delegate to the House of Representa-
tives from the District of Columbia.
150
(3) SENSE OF THE CONGRESS REGARDING AP-
POINTMENTS.—It is the sense of the Congress that
the President should appoint the first 6 Board mem-
bers under paragraph (1)(A) as soon as practicable
after the date of enactment of this title.
(c) CHAIR.—The President shall designate 1 of the
Board members appointed by the President, at the time
of that individual’s appointment, to serve as the Chair of
the Board.
(d) TERMS OF APPOINTED BOARD MEMBERS.—
(1) TERM.—Each of the appointed Board mem-
bers shall be appointed to a term of 6 years.
(2) REMOVAL FOR CAUSE.—The President may
remove any appointed Board member for ineffi-
ciency, neglect of duty, or malfeasance in office.
(3) UNEXPIRED TERMS.—Any Board member
appointed to fill a vacancy occurring before the end
of the term to which the member’s predecessor was
appointed shall be appointed only for the remainder
of the term.
(4) CONTINUATION
OF
SERVICE.—Each ap-
pointed Board member may continue to serve after
the expiration of the term of office to which the
member was appointed until a successor has been
appointed and qualified.
151
(5) LIMITATION
ON
CONSECUTIVE
TERMS.—
The President may reappoint a Board member ap-
pointed under section 713(b)(1)(A), but no ap-
pointed Board member may consecutively serve more
than 2 terms.
(6) INITIAL
TERMS
STAGGERED.—Notwith-
standing paragraph (1)—
(A) of the first 5 Board members ap-
pointed under subsection (b)(1)(A)(i)—
(i) 2 shall be appointed for a term
that expires 6 years after the date of ap-
pointment,
(ii) 2 shall be appointed for a term
that expires 4 years after the date of ap-
pointment, and
(iii) 1 shall be appointed for a term
that expires 2 years after the date of ap-
pointment; and
(B) the first Board member appointed
under subsection (b)(1)(A)(ii) shall be ap-
pointed for a term that expires 2 years after
the date of appointment.
(e) TERMS OF EX OFFICIO BOARD MEMBERS.—Each
ex officio Board member shall serve at the pleasure of the
152
official who designated that member under subsection
(b)(1)(B).
(f) VACANCIES.—A vacancy on the Board shall be
filled in the same manner in which the original appoint-
ment was made.
(g) QUORUM.—Five Board members shall constitute
a quorum for the conduct of business.
(h) ADOPTION OF BYLAWS.—As soon as practicable
after appointment of its members, the Board shall adopt
bylaws, rules, and procedures for the governance of its af-
fairs and the conduct of its business.
(i) MEETINGS.—The Board shall meet—
(1) at the times specified in the bylaws, which
shall not be less than quarterly each year; and
(2) at other times at the call of the Chair.
(j) COMPENSATION.—
(1) NO
ADDITIONAL
COMPENSATION.—The
Board members shall serve without compensation for
their membership on the Board.
(2) REIMBURSEMENT FOR APPOINTED BOARD
MEMBERS.—The appointed Board members may re-
ceive travel, per diem, and other actual, reasonable,
and necessary expenses incurred in the performance
of their official duties as Board members to the
same extent as officers of the United States.
153
SEC. 714. OFFICERS AND EMPLOYEES.
(a) IN GENERAL.—
(1) ESTABLISHMENT OF PERSONNEL SYSTEM
REQUIRED.—The Board shall establish a personnel
system for the Corporation and adopt written rules
and procedures relating to employment matters such
as appointments, compensation, and adverse actions.
(2) INAPPLICABILITY
OF
CERTAIN
EMPLOY-
MENT LAWS.—
(A) CIVIL SERVICE LAWS.—Except as oth-
erwise provided in this title, the provisions of
title 5, United States Code, shall not apply to
the officers and employees of the Corporation.
(B) DISTRICT OF COLUMBIA EMPLOYMENT
LAWS.—Except as otherwise provided in this
title, the provisions of the District of Columbia
Code governing employment with the District
government shall not apply to the officers and
employees of the Corporation.
(b) CHIEF EXECUTIVE OFFICER.—The Board shall
appoint a Chief Executive Officer of the Corporation, who
shall direct and supervise the general management and ad-
ministrative affairs of the Corporation under terms and
conditions prescribed by the Board.
(c) OTHER OFFICERS AND EMPLOYEES.—The Chief
Executive Officer—
154
(1) shall, with the approval of the Board, ap-
point a Chief Financial Officer and a General Coun-
sel; and
(2) may appoint additional officers and employ-
ees as the Chief Executive Officer determines appro-
priate.
(d) COMPENSATION.—
(1) CHIEF OFFICERS.—The Board shall fix, ad-
just, and administer the compensation (including
benefits) for the Chief Executive Officer, the Chief
Financial Officer, and the General Counsel.
(2) OTHER OFFICERS AND EMPLOYEES.—The
Chief Executive Officer shall fix, adjust, and admin-
ister the compensation (including benefits, except as
provided in subsection (e)(2)) for all other officers
and employees of the Corporation.
(3) REPORT REQUIRED.—The annual report de-
scribed in section 716(a) shall describe the com-
pensation structure for officers and employees of the
Corporation.
(e) EMPLOYEE BENEFITS.—
(1) IN GENERAL.—The Corporation shall be au-
thorized to establish and administer its own employ-
ment benefits programs for individuals who become
155
employed by the Corporation other than individuals
who make an election under paragraph (2)(A)(i).
(2) FORMER
EMPLOYEES
OF
THE
FEDERAL
GOVERNMENT
AND
REST
OF
DISTRICT
GOVERN-
MENT.—
(A) IN
GENERAL.—Any employee of the
Federal Government or the District government
who becomes employed by the Corporation
(i) may elect
(I) if the individual is an em-
ployee of the Federal Government at
the time of the election, to be treated,
for the purposes of the programs list-
ed in subparagraph (B)(i), for as long
as that individual remains continu-
ously employed by the Corporation, as
if that individual had not separated
from service with the Federal Govern-
ment; and
(II) if the individual is an em-
ployee of the District government at
the time of the election, to be treated,
for the purposes of the programs re-
ferred to in subparagraph (B)(ii), for
as long as that individual remains
156
continuously employed by the Cor-
poration, as if that individual had not
separated from service with the Dis-
trict government; and
(ii) shall, if that individual subse-
quently becomes reemployed by the Fed-
eral Government or the District govern-
ment, as the case may be, be entitled to
have that individual’s service with the Cor-
poration treated, for purposes of determin-
ing the applicable leave accrual rate, as if
it had been service with the Federal gov-
ernment or the District government, as the
case may be.
(B) EFFECT OF ELECTION.—An election
made by an individual under subparagraph
(A)(i)
(i) if the individual is an employee of
the Federal Government at the time of the
election, shall qualify that individual and
survivors of that individual for the treat-
ment described in subparagraph (A)(i) for
purposes of
(I) chapter 83 or 84 of title 5,
United States Code (relating to retire-
157
ment), as appropriate, including the
Thrift Savings Plan;
(II) chapter 87 of title 5, United
States Code (relating to life insur-
ance); and
(III) chapter 89 of title 5 United
States Code (relating to health insur-
ance);
(ii) if the individual is an employee of
the District government at the time of the
election, shall qualify that individual and
survivors of that individual for the treat-
ment described in subparagraph (A)(i) for
purposes of the corresponding programs
offered by the District government; and
(iii) shall disqualify that individual,
while the election remains in effect, from
participating in any program offered by
the Corporation corresponding to the pro-
grams referred to in clause (i).
(C) CONDITIONS FOR ELECTION.—An elec-
tion made under subparagraph (A)(i) shall be
ineffective unless
(i) it is made before the individual
separates from service with the Federal
158
Government or the District government, as
the case may be; and
(ii) the individual’s service with the
Corporation commences within 3 days
after so separating (not counting any holi-
day observed by the government of the
District of Columbia).
(D) DEDUCTIONS
AND
EMPLOYER
CON-
TRIBUTIONS.—If an individual makes an elec-
tion under subparagraph (A)(i), the Corpora-
tion shall be responsible for making the same
deductions from pay and the same employer
contributions for
(i) the programs listed in subpara-
graph (B)(i) as would be required if the
Corporation were an agency of the Federal
government, if the individual is an em-
ployee of the Federal government at the
time of the election; and
(ii) the corresponding programs re-
ferred to in subparagraph (B)(ii) as would
be required if the Corporation were an
agency of the District government, if the
individual is an employee of the District
government at the time of the election.
159
(E) REGULATIONS.—Any regulations nec-
essary to carry out this subsection shall be pre-
scribed
(i) by the Director of the Office of
Personnel Management, to the extent that
any program administered by that office is
involved;
(ii) by the Executive Director of the
Thrift Savings Plan, to the extent that the
Thrift Savings Plan is involved; and
(iii) by the head of the corresponding
office or agency of the District govern-
ment, to the extent that any corresponding
program administered by that office or
agency is involved.
(F) DEFINITIONS.—
(i) 
CORRESPONDING
OFFICE
OR
AGENCY.—For purposes of this paragraph,
the term ‘‘corresponding office or agency
of the District government’’ means the of-
fice or agency in the District government
responsible for administering a correspond-
ing program.
(ii) CORRESPONDING PROGRAM.—For
purposes of this paragraph, the term ‘‘cor-
160
responding program’’ or ‘‘corresponding
programs’’ means any program or the pro-
grams offered by the District government
corresponding to any program or the pro-
grams referred to in subparagraph (B)(i).
(f) NO POLITICAL TEST OR QUALIFICATION.—No
political test or qualification shall be used in selecting, ap-
pointing, promoting, or taking other personnel actions
with respect to officers and employees of the Corporation.
(g) ASSISTANCE BY FEDERAL AGENCIES AND REST
OF THE DISTRICT GOVERNMENT.—
(1) IN GENERAL.—Upon request of the Chair,
the head of any department, agency, establishment,
or instrumentality of the Federal Government or the
District government may, to the extent practicable
and feasible, and in the sole discretion of the head
of the department, agency, establishment, or instru-
mentality, make any of the personnel and other re-
sources of that department, agency, establishment,
or instrumentality available to the Corporation on a
reimbursable or nonreimbursable basis.
(2) STATUS OF DETAILED PERSONNEL.—Any
personnel detailed to the Corporation under para-
graph (1) shall not be considered employees of the
161
Corporation, but rather shall remain employees of
the government that detailed them.
SEC. 715. POLITICAL ACTIVITY.
The Corporation may not expend any funds to influ-
ence legislation (other than in connection with testimony
by a Board member or an officer or employee of the Cor-
poration before a committee of the Congress or the Coun-
cil of the District of Columbia, or in responding to a writ-
ten request from a Member of Congress or the Council
or a committee of the Congress or the Council) or in con-
nection with any political campaign on behalf of or in op-
position to any candidate for public office.
SEC. 716. REPORTS, PLANS, AND EVALUATIONS.
(a) ANNUAL REPORT AND AUDIT.—
(1) ANNUAL
REPORTS
REQUIRED.—The Cor-
poration shall submit a report annually to the
Mayor, the Council, the Authority (if the activities
of the Authority are not suspended under section
109 of the District of Columbia Financial Respon-
sibility and Management Assistance Act of 1995),
the President, the Congress, and the public not later
than April 1 of each year concerning its operations
for the prior fiscal year.
162
(2) ANNUAL AUDITS REQUIRED.—The annual
report shall include a financial statement audited by
an independent auditor.
(b) ANNUAL PERFORMANCE PLAN.—
(1) 
ANNUAL
PERFORMANCE
PLANS
RE-
QUIRED.—The Corporation shall prepare annually a
performance plan for the operations of the Corpora-
tion during the 5-year period that begins on the date
of the plan.
(2) PLAN ELEMENTS.—Each performance plan
shall establish—
(A) performance goals for the Corporation;
(B) performance benchmarks to be used in
measuring or assessing the performance results
of the Corporation; and
(C) a methodology for comparing the per-
formance results of the Corporation with the es-
tablished performance goals.—
(3) REPORTS ON PERFORMANCE RESULTS RE-
QUIRED.—The annual report described in subsection
(a) shall include—
(A) a description of the performance plan
established by the Corporation for the fiscal
year being reported; and
163
(B) the performance results achieved by
the Corporation in the fiscal year being re-
ported compared with the performance goals es-
tablished in the performance plan for that year.
(c) EVALUATION
OF
CHANGES
MADE
TO
TAX
LAWS.—
(1) EVALUATIONS
REQUIRED.—The Corpora-
tion shall engage an independent consulting form to
perform, in the fiscal years ending September 30,
2001 and 2005, an evaluation of the efficacy of the
provisions of subchapter W of chapter 1 of the In-
ternal Revenue Code of 1986 as aids to the Corpora-
tion in carrying out the purposes of this title.
(2) REPORTS REQUIRED.—Not later than 30
days after the close of a fiscal year in which an eval-
uation is performed under paragraph (1), the Cor-
poration shall submit a report to the Mayor, the
Council, the Authority (if the activities of the Au-
thority are not suspended under section 109 of the
District of Columbia Financial Responsibility and
Management Assistance Act of 1995), the President,
and the Congress the conclusions of the evaluation.
164
SEC. 717. GIFTS; PROCUREMENT OF GOODS AND SERVICES;
AND DISPOSITION OF PROPERTY.
(a) ADOPTION OF RULES.—The Corporation shall
adopt written rules and procedures for
(1) the solicitation, acceptance, holding, admin-
istration, use, and disposition of gifts, grants, or
subsidies of money by the Corporation;
(2) the procurement of goods and services by
the Corporation; and
(3) the disposition of property by the Corpora-
tion.
(b) OBJECTIVE.—The rules and procedures adopted
under subsection (a) shall be designed to ensure that any
activity described in subsection (a)—
(1) will not reflect unfavorably upon the ability
of the Corporation, or of any officer or employee of
the Corporation, to carry out the functions and offi-
cial duties of the Corporation in a fair and objective
manner;
(2) will not compromise the integrity of the
Corporation or any officer or employee of the Cor-
poration; and
(3) in the case of any procurement of goods or
services or any disposition of property, will produce
the best value for the Corporation in the judgment
of the Corporation.
165
Subtitle C—Operations of the
Corporation
SEC. 721. GENERAL POWERS.
Notwithstanding any other provision of law, except
as provided in this title or as may be enacted by the Con-
gress expressly in limitation of the provisions of this para-
graph, the Corporation shall have power—
(1) to have succession until dissolved as pro-
vided in section 753;
(2) to sue and be sued, and to complain and de-
fend, in its own name;
(3) to adopt, amend, repeal, and enforce by-
laws, rules, regulations, and procedures as it deter-
mines appropriate for the governance of its affairs
and the conduct of its business;
(4) to adopt, alter, and use a corporate seal,
which shall be judicially noticed;
(5) to make and perform contracts, agreements,
and commitments with persons and governmental
entities;
(6) subject to section 714, to appoint and em-
ploy officers, attorneys, and employees as it deter-
mines appropriate, to define their duties, and to fix,
adjust, and administer their compensation (including
benefits) as it determines appropriate;
166
(7) to engage experts, advisers, consultants,
legal counsel, and agents (including fiscal agents) to
aid the Corporation in carrying out the purposes of
this title, and to fix and adjust their compensation;
(8) with the approval of the agency concerned,
to make use of services, facilities, and property of
any board, commission, independent establishment,
or executive department or agency of the Federal
government or the District government in carrying
out the purposes of this title, and to pay for such
use;
(9) to maintain an office at the place or places
in the District of Columbia as it determines appro-
priate;
(10) to determine its necessary expenditures
and the manner in which they shall be incurred, al-
lowed, and paid;
(11) to settle, adjust, and compromise, and with
or without consideration or benefit to the Corpora-
tion release or waive in whole or in part, in advance
or otherwise, any claim, demand, or right of, by, or
against the Corporation;
(12) to indemnify Board members and officers
of the Corporation as it determines appropriate;
167
(13) to purchase insurance or self-insure
against any loss in connection with its property and
other assets, in such amounts and from such insur-
ers as it determines appropriate;
(14) to solicit, apply for, accept, receive, hold,
administer, use, and dispose of gifts, bequests, dona-
tions, grants, or subsidies of money, services, or
property (real, personal, or mixed) from any source
to aid the Corporation in carrying out the purposes
of this title;
(15) to lease, purchase, or otherwise acquire,
own, hold, or otherwise manage, clear, repair, im-
prove, construct, or otherwise deal in and with any
property (real, personal, or mixed), or any interest
therein, wherever situated;
(16) to proceed with foreclosure action, to ac-
quire property instead of foreclosure, and to take as-
signments of leases and rentals;
(17) to sell (at a public or private sale, with or
without bidding), convey, mortgage, pledge, lease,
exchange, and otherwise dispose of its property and
assets, or any interest therein;
(18) subject to section 723, to make and per-
form contracts, agreements, and commitments for fi-
nancial assistance;
168
(19) in connection with any application re-
ceived, commitment made, or service provided in
connection with, financial assistance, to charge and
collect fees that the Corporation determines to be
appropriate;
(20) subject to section 723, to establish subsidi-
ary corporations consistent with the purposes of this
title;
(21) subject to section 723, to establish revolv-
ing funds consistent with the purposes of this title;
(22) to establish advisory committees to aid the
Corporation in carrying out the purposes of this
title;
(23) subject to section 724, to exercise, in the
name of the District of Columbia, the right of emi-
nent domain to aid in carrying out the purposes of
this title;
(24) subject to section 732, to issue project rev-
enue obligations;
(25) to provide assistance to the District gov-
ernment through the provision of information, ad-
vice, guidelines, and suggestions for implementing or
improving programs and services of the District gov-
ernment;
169
(26) to prepare, publish, and distribute, with or
without charge, studies, reports, bulletins, and other
materials as it determines appropriate;
(27) to exercise any other power usually pos-
sessed by public enterprises performing similar func-
tions or private corporations organized under the
business corporation law of the District of Columbia,
in either case to the extent that the exercise of that
power is not inconsistent with applicable Federal or
District of Columbia law; and
(28) to take all actions and do all things that
it determines necessary or convenient to carry out
the functions of the Corporation under this title that
are not inconsistent with applicable Federal or Dis-
trict of Columbia law.
SEC. 722. ECONOMIC DEVELOPMENT PLANS.
(a) EXISTING PLANS.—
(1) PRIORITY REVIEW.—The Corporation shall
give priority in its operations to reviewing and evalu-
ating existing economic development plans for the
District of Columbia, including a new or expanded
convention center and infrastructure projects.
(2) IMPLEMENTATION.—To the extent that the
Corporation determines that the implementation of
an existing economic development plan would carry
170
out the purposes of this title, the Corporation shall
give expedited consideration to the projects con-
templated by the plan when reviewing applications
for financial assistance under this title.
(b) STRATEGIC PLAN.—
(1) IN GENERAL.—When the Corporation has
completed reviewing and evaluating existing eco-
nomic development plans, the Corporation shall es-
tablish a comprehensive strategic plan for carrying
out the purposes of this title.
(2) DUTY
TO
CONSULT.—In establishing its
comprehensive strategic plan, the Corporation shall
consult with the executive and legislative branches of
the District government and, as to matters related
to transportation infrastructure, the Secretary of
Transportation to maximize the benefit to the Dis-
trict of Columbia and the region of projects assisted
by the Corporation or supported by the District gov-
ernment or the Secretary of Transportation.
SEC. 723. FINANCIAL ASSISTANCE.
(a) AUTHORITY TO PROVIDE ASSISTANCE.—
(1) IN GENERAL.—The Corporation may pro-
vide financial assistance for economic development
projects directly or in participation with any one or
more other financial institution, fund, person, or
171
other source of financing, private or public, includ-
ing any department, agency, establishment, or in-
strumentality of the District government, and may
enter into any contract, agreement, or commitment
it determines appropriate in connection with provid-
ing financial assistance.
(2) VOTING REQUIREMENT.—Any provision by
the Corporation of financial assistance for an eco-
nomic development project shall require the affirma-
tive vote of a majority of the Board members
present and voting.
(b) LIMITATIONS ON FINANCIAL ASSISTANCE.—
(1) TOTAL FINANCIAL ASSISTANCE.—Except as
provided in paragraph (3), the total amount of fi-
nancial assistance provided or committed under this
section shall not at any time exceed the total amount
of the capital of the Corporation and all of its sub-
sidiaries and the total value of the land of the Cor-
poration and all of its subsidiaries.
(2) INDIVIDUAL FINANCIAL ASSISTANCE.—
(A) IN GENERAL.—Except as provided in
paragraph (3), the total amount of financial as-
sistance provided or committed directly or indi-
rectly under this section—
172
(i) for any 1 economic development
project; or
(ii) to any 1 person, including the per-
son’s affiliates,
shall not at any time exceed 15 percent of the
total amount of the capital of the Corporation
and all of its subsidiaries and the total value of
the land of the Corporation and all of its sub-
sidiaries.
(B) WAIVER.—
(i) WAIVER
OF
LIMITATION
PER-
MITTED.—The Corporation, by a vote of
not less than 6 Board members, may waive
the limitation in subparagraph (A).
(ii) REPORT OF WAIVER REQUIRED.—
If the Corporation waives the limitation in
subparagraph (A), the Corporation shall
communicate promptly the reasons for
doing so to the Mayor, the Council, the
Authority (if the activities of the Authority
are not suspended under section 109 of the
District of Columbia Financial Responsibil-
ity and Management Assistance Act of
1995), the President, and the Congress.
173
(3) EXCEPTIONS.—The limitations in para-
graphs (1) and (2)(A) shall not apply to financial
assistance in the form of—
(A) any allocation of tax credits under sec-
tion 1400D of the Internal Revenue Code of
1986 for qualified loans and qualified equity in-
vestments;
(B) any loan made from the proceeds of an
issuance by the Corporation of private activity
bonds under section 1400F(b) of the Internal
Revenue Code of 1986 qualifying for tax-ex-
empt treatment under section 1400C of the In-
ternal Revenue Code of 1986; or
(C) any loan made from the proceeds of an
issuance by the Corporation of project revenue
obligations bonds under section 732.
(c) ESTABLISHMENT OF SUBSIDIARIES AND REVOLV-
ING FUNDS.—
(1) SUBSIDIARIES.—
(A) IN GENERAL.—In order to make the
most effective use its resources, the Corporation
may establish from time to time 1 or more for-
profit or not-for-profit corporate subsidiaries
for or in connection with providing the different
types of financial assistance authorized by this
174
title. The Corporation shall establish a subsidi-
ary pursuant to this paragraph for the purposes
of promoting the development of infrastructure
along the New York Avenue corridor, except
that such a subsidiary may not approve any
projects for purposes of subchapter W of chap-
ter 1 of the Internal Revenue Code of 1986,
and shall fund its activities through dedicated
infrastructure funds which are made available
to the subsidiary from a source other than the
Corporation.
(B) LIMITATION.—No subsidiary of the
Corporation shall have any power that the Cor-
poration does not have.
(C) BOARD APPROVAL FOR PROVISION OF
FINANCIAL
ASSISTANCE
BY
SUBSIDIARIES.—
Any provision by any subsidiary of the Corpora-
tion of financial assistance for an economic de-
velopment project shall require the approval of
the Board of the Corporation, in accordance
with the voting requirement described in sub-
section (a)(2).
(2) REVOLVING FUNDS.—
(A) IN GENERAL.—In order to make the
most effective use its resources, the Corporation
175
may establish from time to time 1 or more re-
volving funds for or in connection with provid-
ing the different types of financial assistance
authorized by this title.
(B) DEPOSITS.—
(i) RETURNS ON INVESTMENT.—Pay-
ments received by the Corporation as re-
turns on investment from financial assist-
ance provided by the Corporation from any
revolving fund may be deposited into the
revolving fund from which the financial as-
sistance was made or into any other revolv-
ing fund established by the Corporation as
the Corporation determines appropriate,
and may be transferred between revolving
funds as the Corporation determines ap-
propriate.
(ii) OTHER
RECEIPTS.—Funds re-
ceived by the Corporation from any other
source which are not required to be other-
wise disposed may be deposited into any
revolving fund established by the Corpora-
tion and transferred between revolving
funds as the Corporation determines ap-
propriate.
176
(C) USE OF FUNDS.—Funds deposited into
any revolving fund established by the Corpora-
tion shall be available to the Corporation for
providing financial assistance under this title
and to pay all expenses of the Corporation nec-
essary and incident to that purpose.
(d) CRITERIA FOR SELECTING TYPE OF FINANCIAL
ASSISTANCE.—
(1) IN GENERAL.—The Corporation shall estab-
lish written criteria for selecting the type of financial
assistance that is most appropriate for different
types of economic development projects.
(2) LEAST COMMITMENT OF CAPITAL.—The cri-
teria shall include a preference for the type of finan-
cial assistance that represents the least commitment
of the capital of the Corporation.
(3) STANDARDS
FOR
RETURN
ON
INVEST-
MENT.—The criteria shall set out standards for re-
turns on investment that the Corporation determines
appropriate to reflect the nature of the risk.
(e) PROCEDURES FOR REVIEW AND COMMENT BY
REST
OF DISTRICT GOVERNMENT.—The Corporation
shall adopt written procedures to provide the executive and
legislative branches of the District government a reason-
able opportunity to review and comment on economic de-
177
velopment projects for which the Corporation is consider-
ing providing financial assistance under this title.
(f) CRITERIA FOR FINANCIAL ASSISTANCE DETER-
MINATIONS.—
(1) IN GENERAL.—The Corporation shall estab-
lish written criteria for making its determinations—
(A) to approve, disapprove, or take no ac-
tion with respect to applications for financial
assistance under this title; and
(B) as to how much financial assistance to
provide under this title for an economic develop-
ment project.
(2) REQUIRED CRITERIA.—The criteria shall in-
clude—
(A) the status of the project as an eco-
nomic development project;
(B) the likelihood the project can be ex-
pected to create or retain private sector jobs in
the District of Columbia;
(C) the contribution of the project to the
economy of the District of Columbia;
(D) the significance of the financial assist-
ance in attracting an economic development
project to the District of Columbia or prevent-
ing a closing, partial closing, relocation out of
178
the District of Columbia of an economic devel-
opment project;
(E) the commitment to the District of Co-
lumbia of the owners, management, and em-
ployees of the project, and their willingness and
ability to operate the business and enhance its
competitive position in the District of Columbia;
(F) whether the project serves the interests
of the community where it is or will be located;
(G) whether the project is in a distressed
area or benefits the residents of a distressed
area;
(H) whether the project is consistent with
the comprehensive strategic plan developed by
the Corporation for carrying out the purposes
of this title;
(I) whether the project will benefit the
economy of the District of Columbia by improv-
ing links between the economy of the District of
Columbia and the economy of the greater
Washington, D.C. metropolitan region;
(J) whether financial assistance from the
Corporation will attract funds for the project
from sources other than the Corporation; and
179
(K) the appropriateness of the amount and
form of financial assistance and the level of risk
or investment for the Corporation, not only in
terms of the Corporation’s financial exposure,
but also in terms of the overall objectives of this
title.
(g) REQUIREMENTS FOR ECONOMIC DEVELOPMENT
PROJECTS.—The Corporation shall not approve any appli-
cation for financial assistance for any economic develop-
ment project unless—
(1) the Corporation determines, in its judg-
ment—
(A) that there is a strong probability that
the project would not be undertaken without fi-
nancial assistance from the Corporation;
(B) that the financial assistance from the
Corporation represents the least commitment of
the capital of the Corporation to make the
project feasible;
(C) that financial assistance from the Cor-
poration will not compete with or supplant
funds from sources other than the Corporation,
including the District government, which are
otherwise available for the project on reasonable
terms and conditions; and
180
(D) that the executive and legislative
branches of the District government have been
provided a reasonable opportunity to review and
comment on the project; and
(2) the project complies with applicable Federal
and District of Columbia law.
SEC. 724. EMINENT DOMAIN.
(a) AUTHORITY TO EXERCISE CONDEMNATION POW-
ERS.—
(1) IN GENERAL.—The Corporation shall have
the limited power to acquire and assemble land
through condemnation by eminent domain in the
name of the District of Columbia to aid in carrying
out the purposes of this title.
(2) PROHIBITING
DELEGATION
TO
SUBSIDI-
ARY.—The Corporation may not delegate its author-
ity under this section to any subsidiary.
(3) APPROVAL
REQUIRED
TO
EXERCISE
AU-
THORITY.—The Board may exercise its authority
under this section with respect to any property only
with the affirmative vote of at least 7 of its members
(or, if fewer than 9 members are present, with the
affirmative vote of a majority of the members
present and voting plus one).
181
(b) APPLICABLE PROCEDURES.—The provisions of
title 16, chapter 13, subchapter II, District of Columbia
Code (relating to condemnation proceedings by the Dis-
trict government), shall apply to the Corporation in its ex-
ercise of its authority under this section.
SEC. 725. REGULATORY RELIEF POWERS.
(a) REQUEST
PRIORITY
FOR
CORPORATION-AS-
SISTED PROJECTS.—The Corporation may request appro-
priate officers or employees of the appropriate regulatory
authority of the District government to give expedited con-
sideration to applications for District of Columbia regu-
latory licenses, permits, and approvals for economic devel-
opment projects that have been provided financial assist-
ance by the Corporation.
(b) REQUEST REMEDY OF, OR EXPLANATION FOR,
DELAY OR DENIAL.—If the Corporation determines that
an economic development project provided financial assist-
ance by the Corporation is experiencing delay in obtaining
necessary District of Columbia regulatory licenses, per-
mits, or approvals from, or where necessary District of
Columbia regulatory licenses, permits, or approvals have
been denied by, a regulatory authority of the District gov-
ernment, the Corporation may request the appropriate of-
ficers or employees of the appropriate regulatory authority
of the District government to issue the necessary permits,
182
licenses, or approvals, or to demonstrate good cause for
the delay or denial thereof, within 30 days of the request
of the Corporation.
Subtitle D—Capitalization and
Finance
SEC. 731. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated directly to the Corporation in the fiscal year end-
ing September 30, 1998, to be available without fiscal year
limitation, $50,000,000, to carry out the purposes of this
title and to pay all expenses of the Corporation necessary
and incident to that purpose.
(b) MINIMUM AMOUNT REQUIRED
FOR CERTAIN
USE.—
(1) IN GENERAL.—The Corporation shall pro-
vide financial assistance in an amount not less than
the lesser of $20,000,000 or 40 percent of the
amount appropriated under subsection (a)—
(A) directly to nonprofit organizations to
finance job training, placement, and related ac-
tivities for targeted District residents in those
organizations; or
(B) to nonprofit third-party intermediaries
to promote and finance job training, placement,
and related activities for targeted District resi-
183
dents in for-profit and not-for-profit organiza-
tions.
(2) WAIVER.—
(A) WAIVER
OF
REQUIREMENT
PER-
MITTED.—The Corporation, by a vote of not
less than 6 Board members, may waive the
minimum amount requirement in paragraph
(1).
(B) REPORT
OF
WAIVER
REQUIRED.—If
the Corporation waives the minimum amount
requirement in paragraph (1), the Corporation
shall communicate promptly the reasons for
doing so to the Mayor, the Council, the Author-
ity (if the activities of the Authority are not
suspended under section 109 of the District of
Columbia Financial Responsibility and Manage-
ment Assistance Act of 1995), the President,
and the Congress.
SEC. 732. PROJECT REVENUE OBLIGATIONS ISSUED BY
CORPORATION.
(a) AUTHORITIES.—
(1) IN GENERAL.—The Corporation, by resolu-
tion of the Board, may—
(A) authorize the issuance of taxable or
tax-exempt project revenue obligations from
184
time to time, including refunding project reve-
nue obligations at or before the maturity of the
outstanding project revenue obligations to be
refunded; and
(B) use the proceeds of issued project reve-
nue obligations to provide financial assistance
under this title for economic development
projects, including providing funds to be paid
into any reserve fund to secure project revenue
obligations.
(2) DUTY TO CONSULT.—In exercising its au-
thorities under this section, the Corporation shall
consult with the executive and legislative branches of
the District government so that the Corporation and
the District government together—
(A) make the most effective use of avail-
able resources and authorities;
(B) avoid to the extent practicable com-
petition or duplication of efforts; and
(C) maximize the benefit to the District of
Columbia.
(b) SPECIAL OBLIGATIONS; NEGOTIABLE INSTRU-
MENTS.—Project revenue obligations issued by the Cor-
poration under this section are—
185
(1) special obligations of the Corporation pay-
able solely from the revenues, assets, and property
of the economic development project for which finan-
cial assistance is provided, to the extent those reve-
nues, assets, and property are pledged therefor; and
(2) negotiable instruments, whether or not any
project revenue obligation is a security as defined in
section 28:8–102(1)(a), DC Code.
(c) AUTHORIZING BOARD RESOLUTIONS.—Any reso-
lution of the Board authorizing the issuance of project rev-
enue obligations may—
(1) prescribe the form, terms, provisions, man-
ner, and method of issuing and selling (including
sale by negotiation or by competitive bid) the project
revenue obligations;
(2) provide for rights or remedies of the holders
of the project revenue obligations upon default;
(3) prescribe any other details with respect to
the issuance, sale, or securing of the project revenue
obligations; and
(4) authorize the Chief Executive Officer to
take any actions in connection with the issuance,
sale, delivery, security, and payment of the project
revenue obligations, including the prescribing of any
186
terms or conditions not contained in the authorizing
resolution of the Board.
(d) AGREEMENTS RELATING
TO
AND SECURING
PROJECT REVENUE OBLIGATIONS.—
(1) IN GENERAL.—In authorizing the issuance
of any project revenue obligation under this section,
the Board may authorize the Chief Executive Officer
to enter into any agreement concerning the acquisi-
tion, use, or disposition of any funds or property.
(2) SECURITY
AGREEMENTS.—Any agreement
authorized under paragraph (1) may—
(A) create a security interest in any reve-
nues, assets, and property of an economic devel-
opment project;
(B) provide for the custody, collection, se-
curity, investment, and payment of any funds
(including any funds held in trust) for the pay-
ment of the project revenue obligations;
(C) mortgage any property of an economic
development project;
(D) provide for the acquisition, construc-
tion, maintenance, and disposition of the eco-
nomic development project for which financial
assistance is provided;
187
(E) provide for the doing of any act (or
the refraining from doing any act) which the
Corporation has the right to do in the absence
of such agreement; and
(F) be assigned for the benefit of, or made
a part of any contract with, any holder of the
project revenue obligations issued under this
section.
(3) SECURITY INTERESTS CREATED BY SECU-
RITY AGREEMENTS.—
(A) Notwithstanding article 9 of title 28,
District of Columbia Code, any security interest
created under an agreement entered into under
paragraph (1) shall be valid, binding, and per-
fected—
(i) from the time the security interest
is created, with or without the physical de-
livery of any funds or any other property
and with or without any further action;
(ii) whether or not any statement,
document, or instrument relating to the se-
curity interest is recorded or filed; and
(iii) with respect to any person having
claims against the Corporation, whether or
188
not the person has notice of the security
interest.
(e) RESERVE FUNDS.—
(1) ESTABLISHMENT.—The Corporation may
establish 1 or more special or reserve funds in fur-
therance of its authority under this section.
(2) MANAGEMENT.—Notwithstanding any other
provision of District of Columbia law and subject to
existing agreements with the holders of project reve-
nue obligations issued by the Corporation, the Cor-
poration may manage its special or reserve funds.
(f) PROJECT REVENUE OBLIGATIONS NOT OBLIGA-
TIONS OF DISTRICT OF COLUMBIA OR UNITED STATES.—
(1) IN GENERAL.—Project revenue obligations
issued by the Corporation under this section do not
constitute an obligation of the District of Columbia
or an obligation of the United States, but are pay-
able solely from the revenues, assets, and property
of the economic development project for which finan-
cial assistance is provided, to the extent those reve-
nues, assets, and property are pledged therefor.
(2) NO LIABILITY OF DISTRICT OF COLUMBIA
OR UNITED STATES.—Neither the District of Colum-
bia nor the United States is responsible or shall be
liable for the payment of any principal of, or the in-
189
terest or any premium on, any project revenue obli-
gation issued by the Corporation under this section.
(3) FULL FAITH AND CREDIT OF DISTRICT OF
COLUMBIA AND UNITED STATES NOT PLEDGED.—
Neither the faith and credit nor the taxing power of
the District of Columbia nor the full faith and credit
of the United States is pledged for the payment of
any principal of, or the interest or any premium on,
any project revenue obligation issued by the Cor-
poration under this section.
(4) STATEMENT REQUIRED.—Each project rev-
enue obligation issued by the Corporation under this
section and the offering documents relating to each
issue of project revenue obligations shall contain on
their face a statement that—
(A) the Corporation is not obligated to pay
the principal of, or the interest or any premium
on, the project revenue obligation except from
the revenues, assets, and property of the eco-
nomic development project for which financial
assistance is provided, to the extent those reve-
nues, assets, and property are pledged therefor;
(B) the project revenue obligation is not an
obligation of the District of Columbia nor an
obligation of the United States; and
190
(C) neither the faith and credit nor the
taxing power of the District of Columbia nor
the full faith and credit of the United States is
pledged to the payment of the principal of, or
the interest or any premium on, the project rev-
enue obligation.
(g) PROJECT REVENUE OBLIGATIONS EXCLUDED
FROM CERTAIN LIMITATIONS.—
(1) LIMITATION ON TOTAL BORROWING OF DIS-
TRICT GOVERNMENT.—The amount of any project
revenue obligations issued by the Corporation under
this section shall not be taken into account in deter-
mining whether the amount of funds borrowed by
the District of Columbia during a fiscal year as gen-
eral obligation bonds or Treasury capital project
loans exceeds the limitation on that amount provided
in section 603(b) of the District of Columbia Self-
Government and Governmental Reorganization Act.
(2) LIMITATION ON OBLIGATING OR EXPEND-
ING FUNDS OUTSIDE OF APPROPRIATIONS ACTS.—
The fourth sentence of section 446 of the District of
Columbia Self-Government and Governmental Reor-
ganization Act shall not apply to—
(A) any amount (including the amount of
any accrued interest or premium) obligated or
191
expended from the proceeds of the sale of any
project revenue obligation issued by the Cor-
poration under this section;
(B) any amount obligated or expended for
the payment of the principal of, interest on, or
any premium for any project revenue obligation
issued by the Corporation under this section; or
(C) any amount obligated or expended to
secure any project revenue obligation issued by
the Corporation under this section.
(3) LIMITATIONS ON ACTS OF COUNCIL.—A res-
olution of the Corporation authorizing the issuance
of project revenue obligations under this section
shall not be considered to be an act of the Council.
(4) LIMITATION ON BORROWING BY DISTRICT
GOVERNMENT
DURING
CONTROL
YEARS.—Section
204 of the District of Columbia Financial Respon-
sibility and Management Assistance Act of 1995
(DC Code, sec. 47–392.4), as amended by section
603, is further amended by adding at the end the
following new subsection:
‘‘(h) REVENUE BONDS NOT TREATED AS BORROW-
ING.—For purposes of this section, the issuance by the
District of Columbia Economic Development Corporation
under section 732 of the District of Columbia Economic
192
Development Corporation Act of 1997 of any project reve-
nue obligations payable solely from the revenues, assets,
and property of an economic development project shall not
be considered to be a borrowing of money by the Dis-
trict.’’.
SEC. 733. DEPOSIT AND INVESTMENT OF FUNDS.
All funds and revenues of the Corporation received
by the Corporation from any source that are not required
to be otherwise disposed shall be—
(1) held, administered, and invested by the Cor-
poration as the Corporation shall direct; or
(2) deposited with and invested by an institu-
tion, trustee, fiduciary, or other custodian des-
ignated by the Corporation and paid as the Corpora-
tion shall direct.
SEC. 734. NO TAXING POWER.
The Corporation shall not have any power to—
(1) impose, assess, levy, or collect any taxes; or
(2) pledge, encumber, or otherwise create any
lien on any revenues from taxes imposed, assessed,
levied, or collected by the District government.
193
Subtitle E—Miscellaneous
Provisions
SEC. 741. LEGAL ACTIONS INVOLVING CORPORATION.
(a) JURISDICTION.—Any action against the Corpora-
tion or any action otherwise arising out of or pertaining
to this title, in whole or in part, shall be brought in the
United States District Court for the District of Columbia.
(b) APPEALS.—Notwithstanding any other provision
of law, any order of the United States District Court for
the District of Columbia which is issued in an action
brought under subsection (a) shall be reviewable only
under a notice of appeal to the United States Court of
Appeals for the District of Columbia Circuit.
(c) RELIEF.—No order of any court granting declara-
tory or injunctive relief against the Corporation in an ac-
tion brought under subsection (a), including relief permit-
ting or requiring the obligation or expenditure of funds,
shall take effect during the pendency of the action before
the court, during the time appeal may be taken, or (if ap-
peal is taken) during the period before the court has en-
tered its final order disposing of the action.
(d) 
LEGAL
REPRESENTATION.—In 
any 
action
brought by or on behalf of the Corporation, or against the
Corporation, the Corporation shall be represented by the
counsel that it selects.
194
SEC. 742. JUDICIAL REVIEW OF FINANCIAL ASSISTANCE DE-
TERMINATIONS AND RULES.
(a) STATUTES OF LIMITATIONS ON JUDICIAL RE-
VIEW.—
(1) 
FINANCIAL
ASSISTANCE
DETERMINA-
TIONS.—Any action arising out of or pertaining to
any determination of the Corporation to approve,
disapprove, or take no action with respect to any re-
quest or application for financial assistance shall be
brought within 30 days after the date that notice of
the determination that is the subject of the action
appears in the District of Columbia Register.
(2) RULES
AND
PROCEDURES.—Any action
arising out of or pertaining to any rule, or procedure
adopted or prescribed by the Corporation under this
title with respect to providing financial assistance
shall be brought within 90 days after the date that
notice of the adoption or prescription of the rule or
procedure that is the subject of the action appears
in the District of Columbia Register.
(b) NO REVIEW OF RULES OR PROCEDURES IN AC-
TIONS ARISING OUT OF FINANCIAL ASSISTANCE DETER-
MINATIONS.—Any rule or procedure adopted or prescribed
by the Corporation under this title with respect to provid-
ing financial assistance shall not be the subject of review
in any action arising out of or pertaining to any deter-
195
mination of the Corporation to approve, disapprove, or
take no action with respect to a request or application for
financial assistance.
SEC. 743. RELATIONSHIP TO OTHER LAWS.
The following laws of the District of Columbia (as
in effect on the date of enactment of this title) shall not
apply to the Corporation, its activities, the Board mem-
bers, or the officers or employees of the Corporation:
(1) Section 742 of the District of Columbia
Self-Government and Governmental Reorganization
Act (relating to open meetings).
(2) The provisions of the District of Columbia
Code governing administrative procedure.
(3) The provisions of the District of Columbia
Code governing procurement.
(4) The provisions of the District of Columbia
Code governing dispositions of property.
(5) The provisions of the District of Columbia
Code taxing the income of corporations.
SEC. 744. RELATIONSHIP TO DISTRICT GOVERNMENT.
(a) INDEPENDENT INSTRUMENTALITY.—
(1) IN GENERAL.—The Corporation is an inde-
pendent instrumentality governed by the Board
within the government of the District of Columbia.
196
(2) NO CONTROL BY DISTRICT GOVERNMENT.—
Notwithstanding any other law, neither the Mayor,
the Council, the Chief Financial Officer of the Dis-
trict of Columbia, nor the Authority shall exercise
any control, supervision, oversight, or review over
the Corporation, its activities, the Board members
(other than the ex officio Board members appointed
by the Mayor and the Council), or the officers and
employees of the Corporation.
(3) PROHIBITION
AGAINST
LEGISLATION
AF-
FECTING CORPORATION.—Section 602(a) of the Dis-
trict of Columbia Self-Government and Govern-
mental Reorganization Act (DC Code, sec. 1–
233(a)) is amended—
(A) by striking ‘‘or’’ at the end of para-
graph (9);
(B) by striking the period at the end of
paragraph (10) and inserting ‘‘; or’’; and
(C) by adding at the end the following new
paragraph:
‘‘(11) enact any act, resolution, or rule with re-
spect to the District of Columbia Economic Develop-
ment Corporation established under section 711 of
National Capital Revitalization and Self-Government
Improvement Act of 1997.’’.
197
(4) PREROGATIVE
OF
BOARD.—Notwithstand-
ing any other law, the deposit of money received by
the Corporation and the obligation and expenditure
of money by the Corporation shall be sole preroga-
tive of the Board, consistent with this title.
(b) APPLICATION
OF REQUIREMENT RESPECTING
DEPOSIT OF RECEIPTS TO CORPORATION’S RECEIPTS.—
The third sentence of section 450 of the District of Colum-
bia Self-Government and Governmental Reorganization
Act shall apply to any money received by any officer or
employee of the Corporation without the requirement to
be paid promptly to the Mayor, and the appropriate fund
for deposit of any money received by any officer or em-
ployee of the Corporation shall be any revolving fund es-
tablished by the Corporation under section 723(c)(2).
(c) EXCLUSION FROM LIMITATION ON OBLIGATING
OR EXPENDING FUNDS OUTSIDE OF APPROPRIATIONS
ACTS.—The fourth sentence of section 446 of the District
of Columbia Self-Government and Governmental Reorga-
nization Act shall not apply to any amount obligated or
expended by any officer or employee of the Corporation
as financial assistance under this title or to pay all ex-
penses of the Corporation necessary and incident to that
purpose.
198
(d) EXCLUSION FROM PERSONNEL
AND BUDGET
LIMITATIONS APPLICABLE TO DISTRICT GOVERNMENT.—
The Corporation shall not be subject to any general per-
sonnel or budget limitations which otherwise apply to the
District government in any appropriations Act, and the
personnel of or the funds allocated or otherwise available
to the Corporation shall not be counted as part of the per-
sonnel or budget ceilings of the District government.
(e) OTHER ASSISTANCE FROM DISTRICT GOVERN-
MENT.—
(1) IN GENERAL.—At the request of the Cor-
poration, a department or agency of the executive
branch of the District government (as defined in
paragraph (2)) shall assist the Corporation in its ef-
forts to promote economic development projects, in-
cluding providing assistance relating to public safety
and public works affecting such projects.
(2) DEPARTMENT OR AGENCY OF EXECUTIVE
BRANCH DEFINED.—In paragraph (1), the term ‘‘de-
partment or agency of the executive branch of the
District government’’ includes—
(A) any independent agency of the District
of Columbia established under part F of title IV
of the District of Columbia Self-Government
and Governmental Reorganization Act; and
199
(B) any other agency, board, or commis-
sion established by the Mayor or the Council.
Subtitle F—Sunset Provisions
SEC. 751. SUSPENSION OF NEW FINANCIAL ASSISTANCE.
(a) IN GENERAL.—After the suspension date, the
Corporation may not—
(1) enter into any contract, agreement, or com-
mitment to provide new financial assistance under
section 723; or
(2) issue any new project revenue obligations
under section 732.
(b) EXISTING
FINANCIAL
ASSISTANCE
COMMIT-
MENTS.—Nothing in paragraph (1) shall affect the au-
thority of the Corporation to provide financial assistance
under contracts, agreements, or commitments entered into
under section 723 on or before the suspension date.
SEC. 752. TERMINATION OF AFFAIRS.
(a) IN GENERAL.—Beginning on the day after the
suspension date, the Board shall take and diligently pur-
sue all reasonable and practical actions to achieve an or-
derly termination of the affairs of the Corporation on or
before the termination date.
(b) DISPOSITION OF CORPORATION’S ASSETS.—
(1) LIQUIDATION.—
200
(A) IN
GENERAL.—Unless the Council
makes an election under paragraph (2), the
Board shall liquidate all of the assets (other
than moneys) of the Corporation.
(B) 
PUBLIC
NOTICE
REQUIRED.—The
Board shall provide public notice of all liquida-
tions of the assets of the Corporation.
(C) BOARD
TRANSFER
OF
PROCEEDS.—
Unless the Council makes an election under
paragraph (2), the Board shall transfer prompt-
ly the proceeds of all liquidations under sub-
paragraph (A) to the Mayor for deposit into the
accounts or funds of the District government as
the Mayor determines appropriate.
(2) COUNCIL ELECTIONS.—
(A) RELATING
TO
TRANSFER
OF
AS-
SETS.—
(i) IN
GENERAL.—The Council, by
act, may elect to have some or all of the
assets of the Corporation transferred to
any department, agency, establishment, or
instrumentality of the District government
rather than be liquidated.
(ii) CONTENTS OF COUNCIL’S ACT.—
The act of the Council shall identify—
201
(I) the assets of the Corporation
which the Council elects to have
transferred rather than liquidated;
and
(II) the department, agency, es-
tablishment, or instrumentality of the
District government to which the
Council elects to have assets of the
Corporation transferred.
(iii) BOARD TRANSFER OF ASSETS.—
If the Council makes an election under
clause (i), the Board shall transfer the as-
sets of the Corporation identified by the
Council in its act to the department, agen-
cy, establishment, or instrumentality of the
District government identified by the
Council in its act.
(B) RELATING TO TRANSFER OF LIQUIDA-
TION PROCEEDS.—
(i) IN
GENERAL.—The Council, by
act, may elect to have some or all of the
proceeds of the liquidation of the assets of
the Corporation deposited into one or more
accounts or funds of the District govern-
ment other than the accounts or funds of
202
the District government selected by the
Mayor under paragraph (1)(C).
(ii) CONTENTS OF COUNCIL’S ACT.—
The act of the Council shall identify—
(I) the amount of liquidation pro-
ceeds that the Council elects to have
deposited into one or more accounts
or funds of the District government
other than the accounts or funds of
the District government selected by
the Mayor under paragraph (1)(C);
and
(II) the accounts or funds of the
District government into which the
Council elects to have the moneys of
the Corporation deposited.
(iii) BOARD TRANSFER OF LIQUIDA-
TION PROCEEDS.—If the Council makes an
election under clause (i), the Board shall
deposit the amount of the liquidation pro-
ceeds identified by the Council in its act to
the department, agency, establishment, or
instrumentality of the District government
identified by the Council in its act.
203
SEC. 753. DISSOLUTION OF CORPORATION.
(a) IN GENERAL.—
(1) TERMINATION COMPLETE.—
(A) IN
GENERAL.—Unless the Council
makes an election under subparagraph (B), if
the Board completes the termination of the af-
fairs of the Corporation on or before the termi-
nation date, the Board shall
(i) transfer to the Mayor the moneys
of the Corporation that are reserved to ful-
fill the obligations of the Corporation to
provide financial assistance under con-
tracts, agreements, or commitments en-
tered into under section 723 on or before
the suspension date;
(ii) transfer to the Mayor the balance
of the moneys of the Corporation for de-
posit into the accounts or funds of the Dis-
trict government as the Mayor determines
appropriate; and
(iii) submit a final report on the Cor-
poration to the Council, the Authority (if
the activities of the Authority are not sus-
pended under section 109 of the District of
Columbia Financial Responsibility and
204
Management Assistance Act of 1995), the
President, and the Congress.
(B) COUNCIL
ELECTION
RELATING
TO
TRANSFER OF CORPORATION MONEYS.—
(i) IN
GENERAL.—The Council, by
act, may elect to have some or all of the
balance of the Corporation’s moneys depos-
ited into one or more accounts or funds of
the District government other than the ac-
counts or funds of the District government
selected by the Mayor under paragraph
(1)(A)(ii).
(ii) CONTENTS OF COUNCIL’S ACT.—
The act of the Council shall identify—
(I) the amount of the balance of
the Corporation’s moneys that the
Council elects to have deposited into
one or more accounts or funds of the
District government other than the
accounts or funds of the District gov-
ernment selected by the Mayor under
paragraph (1)(A)(ii); and
(II) the accounts or funds of the
District government into which the
205
Council elects to have the moneys of
the Corporation deposited.
(iii) BOARD TRANSFER OF BALANCE
OF CORPORATION’S MONEYS.—If the Coun-
cil makes an election under clause (i), the
Board shall—
(I) transfer to the Mayor the
moneys of the Corporation that are
reserved to fulfill the obligations of
the Corporation to provide financial
assistance under contracts, agree-
ments, or commitments entered into
under section 723 on or before the
suspension date;
(II) deposit the amount of the
balance of the moneys of the Corpora-
tion identified by the Council in its
act to the accounts or funds of the
District government identified by the
Council in its resolution; and
(III) submit a final report on the
Corporation to the Council, the Au-
thority (if the activities of the Author-
ity are not suspended under section
109 of the District of Columbia Fi-
206
nancial Responsibility and Manage-
ment Assistance Act of 1995), the
President, and the Congress.
(2) TERMINATION INCOMPLETE.—If the Board
has not completed the termination of the affairs of
the Corporation and the disposition of all of the as-
sets of the Corporation on or before the termination
date, the Mayor shall, on the day after the termi-
nation date, succeed to all of the powers, rights, as-
sets, duties, obligations, and liabilities of the Cor-
poration and the Board.
(b) DISPOSITION BY MAYOR.—If the Mayor succeeds
to the powers, rights, assets, duties, obligations, and liabil-
ities of the Corporation and the Board under subsection
(a)(2), the Mayor shall act as follows:
(1) If the Board has not completed the liquida-
tion of the assets of the Corporation, and unless the
Council has made an election under section
752(b)(2), the Mayor shall complete the liquidation
of those assets and deposit the proceeds of the liq-
uidations into the accounts or funds of the District
government as the Mayor determines appropriate.
(2) If the Council has made an election under
section 752(b)(2) and the Board has not completed
the transfer of the assets of the Corporation identi-
207
fied in the act of the Council to the department,
agency, establishment, or instrumentality of the Dis-
trict government identified in the resolution, the
Mayor shall complete the transfer promptly.
(3) If the Council has made an election under
section 752(b)(2) and the Board has not completed
the deposit of the amount of liquidation proceeds
identified by the Council in its act into the accounts
or funds of the District government identified by the
Council in its act, the Mayor shall complete the de-
posit promptly.
(4) Unless the Council has made an election
under subsection (a)(1)(B), when the Mayor com-
pletes the termination of the affairs of the Corpora-
tion and the disposition of all of the assets of the
Corporation, the Mayor shall deposit the balance of
the moneys of the Corporation into the accounts or
funds of the District government as the Mayor de-
termines appropriate.
(5) If the Council has made an election under
subsection (a)(1)(B), when the Mayor completes the
termination of the affairs of the Corporation and the
disposition of all of the assets of the Corporation,
the Mayor shall deposit the amount of the balance
of the moneys of the Corporation identified by the
208
Council in its act into the accounts or funds of the
District government identified by the Council in its
act.
(6) The Mayor shall submit a final report on
the Corporation to the Council, the Authority (if the
activities of the Authority are not suspended under
section 109 of the District of Columbia Financial
Responsibility and Management Assistance Act of
1995), the President, and the Congress.
(c) DISSOLUTION OF CORPORATION.—The Corpora-
tion shall be dissolved—
(1) if subsection (a)(1)(A) applies, on the latest
of the dates on which the Board completes the ac-
tions described in clauses (i), (ii), and (iii) thereof;
(2) if subsection (a)(1)(B) applies, on the latest
of the dates on which the Board completes the ac-
tions described in subclauses (I), (II), and (III) of
clause (iii) thereof; or
(3) if subsection (a)(2) applies, on the latest of
the dates on which the Mayor completes the actions
described in subsection (b).
(d) SUCCESSION.—
(1) IN GENERAL.—Upon dissolution of the Cor-
poration under subsection (c), the District govern-
209
ment shall succeed to all of the assets and liabilities
of the Corporation.
(2) DISTRICT GOVERNMENT SUCCESSOR ISSUER
OF PROJECT REVENUE OBLIGATIONS.—For purposes
of any outstanding project revenue obligation issued
by the Corporation under section 732 on or before
the suspension date, the District government shall
be deemed to be the issuer after the dissolution of
the Corporation.
(e) SAVINGS PROVISION.—Nothing in this section
shall affect
(1) the validity of any undischarged contract,
agreement, or commitment to provide financial as-
sistance entered into under section 723 on or before
the suspension date;
(2) the validity or maturity of any outstanding
project revenue obligation issued by the Corporation
under section 732 on or before the suspension date;
or
(3) any right or privilege accrued, any penalty
or liability incurred, any civil or criminal proceeding
commenced, or any authority conferred on or before
the termination date.
210
TITLE 
VIII—DISTRICT 
OF 
CO-
LUMBIA GOVERNMENT BUDG-
ET; EFFECTIVE DATE
SEC. 801. ELIMINATION OF THE ANNUAL FEDERAL PAY-
MENT TO THE DISTRICT OF COLUMBIA.
(a) ELIMINATION OF PAYMENT.—
(1) IN GENERAL.—Title V of the District of Co-
lumbia Self-Government and Governmental Reorga-
nization Act (DC Code, sec. 47–3406 et seq.) is
hereby repealed.
(2) CLERICAL AMENDMENT.—The table of con-
tents of such Act is amended by striking the items
relating to title V.
(b) CONFORMING AMENDMENTS.—
(1) HOME RULE ACT.—The District of Colum-
bia Self-Government and Governmental Reorganiza-
tion Act is amended as follows:
(A) In section 103(10) (DC Code, sec. 1–
202(10)), by striking ‘‘the annual Federal pay-
ment to the District authorized under title V,’’.
(B) In section 483 (DC Code, sec. 47–
331.2), by striking subsection (c).
(C) In section 603(c) (DC Code, sec. 47–
313(c)), by striking the fourth sentence.
211
(D) In section 603(f)(1) (DC Code, sec.
47–313(f)(1)), by striking ‘‘(other than the
fourth sentence)’’.
(2) FINANCIAL RESPONSIBILITY AND MANAGE-
MENT ASSISTANCE ACT.—The District of Columbia
Financial Responsibility and Management Assistance
Act of 1995 is amended—
(A) by striking section 205 (DC Code, sec.
47–392.5); and
(B) in the table of contents for such Act,
by striking the item relating to section 205.
(3) PROCUREMENT
PRACTICES
ACT.—Section
208(a)(2) of the District of Columbia Procurement
Practices 
Act 
of 
1985 
(DC 
Code, 
sec. 
1–
1182.8(a)(2)) is amended—
(1) by striking subparagraph (B);
(2) by redesignating subparagraph (C) as sub-
paragraph (B); and
(3) in subparagraph (B), as so redesignated, by
striking ‘‘Amounts deposited in the dedicated fund
described in subparagraph (B)’’ and inserting
‘‘Amounts appropriated for the Inspector General’’.
(4) DISTRICT OF COLUMBIA REVENUE ACT OF
1939.—The District of Columbia Revenue Act of
212
1939 (DC Code, sec. 47–3401 et seq.) is amended
as follows:
(A) In section 603(b) (as redesignated by
section 501)—
(i) in paragraph (5), by adding ‘‘and’’
at the end;
(ii) in paragraph (6), by striking ‘‘;
and’’ and inserting a period; and
(iii) by striking paragraph (7).
(B) In section 603(c) (as redesignated by
section 501), by striking paragraph (3).
(C) In section 605(b) (as redesignated by
section 501)—
(i) by striking paragraph (1) and re-
designating paragraphs (2) through (4) as
paragraphs (1) through (3);
(ii) in paragraph (1) (as so redesig-
nated), by striking ‘‘OTHER’’ in the head-
ing;
(iii) in paragraph (1) (as so redesig-
nated), by striking ‘‘If, after’’ and all that
follows through ‘‘the Secretary’’ and in-
serting ‘‘The Secretary’’;
214
quirements which are not imposed on other ju-
risdictions and many of which are not directly
reimbursed by the Federal government.
(E) As a result of these factors, the rel-
ative tax burden on District residents is consid-
erably greater than the burden on residents in
other jurisdictions in the Washington, D.C.
metropolitan area and in other cities of com-
parable size.
(2) FEDERAL
CONTRIBUTION.—There is au-
thorized to be appropriated a Federal contribution
towards the costs of the operation of the government
of the Nation’s capital—
(A) for fiscal year 1998, $140,000,000;
and
(B) for each subsequent fiscal year, such
amount as may be necessary for such contribu-
tion.
In determining the amount appropriated pursuant to
the authorization under this paragraph, Congress
shall take into account the findings described in
paragraph (1).
215
SEC. 802. REQUIREMENT THAT THE DISTRICT OF COLUM-
BIA BALANCE ITS BUDGET IN FY 1998.
(a) IN GENERAL.—Section 201(c)(1) of the District
of Columbia Financial Responsibility and Management
Assistance Act of 1995 is amended—
(1) in subparagraph (A), by striking ‘‘1999’’
and inserting ‘‘1998’’; and
(2) in subparagraph (B), by striking ‘‘1996,
1997, and 1998,’’ and inserting ‘‘1996 and 1997,’’.
(b) CONFORMING AMENDMENT.—Section 603(f) of
the District of Columbia Self-Government and Govern-
mental Reorganization Act (DC Code, sec. 47–313(f)) is
amended by striking ‘‘Act of 1995)—’’ and all that follows
through ‘‘(2) the Council’’ and inserting ‘‘Act of 1995),
the Council’’.
SEC. 803. PERMITTING EXPEDITED SUBMISSION AND AP-
PROVAL OF CONSENSUS BUDGET AND FINAN-
CIAL PLAN.
(a) FINDINGS.—Congress finds the following:
(1) The District of Columbia Financial Respon-
sibility and Management Assistance Act (hereafter
in this subsection referred to as the ‘‘Act’’) was
structured as to preserve the maximum prerogatives
of each branch of elected self-government consistent
with returning the District of Columbia to full finan-
cial stability and health.
216
(2) The Act was intended to eliminate unneces-
sary bureaucratic barriers and procedures through-
out the District government, including the budget
process.
(3) Preservation of home rule and self-govern-
ment are consistent with cooperation between elected
officials and the Authority in drawing the annual
budget and other matters affecting the District of
Columbia government, and are preferable to achieve
greater efficiency, communication among the parties,
and avoidance of conflict and delay.
(b) IN GENERAL.—Section 202 of the District of Co-
lumbia Financial Responsibility and Management Assist-
ance Act of 1995 is amended by adding at the end the
following new subsection:
‘‘(i) EXPEDITED SUBMISSION
AND APPROVAL
OF
CONSENSUS BUDGET AND FINANCIAL PLAN.—Notwith-
standing any other provision of this section, if the Mayor,
the Council, and the Authority jointly develop a financial
plan and budget for the fiscal year which meets the re-
quirements applicable under section 201 and which the
Mayor, Council, and Authority certify reflects a consensus
among them—
‘‘(1) such financial plan and budget shall serve
as the budget of the District government for the fis-
217
cal year adopted by the Council under section 446
of the District of Columbia Self-Government and
Governmental Reorganization Act; and
‘‘(2) the Mayor shall transmit the financial plan
and budget to the President and Congress under
such section.’’.
(c) EFFECTIVE DATE.—The amendment made by
subsection (b) shall apply with respect to fiscal years be-
ginning with fiscal year 1998.
SEC. 804. INCREASE IN MAXIMUM AMOUNT OF PERMITTED
DISTRICT BORROWING.
Section 603(b) of the District of Columbia Self-Gov-
ernment and Governmental Reorganization Act (DC Code,
sec. 47–313(b)) is amended by striking ‘‘14 per centum’’
each place it appears in paragraph (1) and paragraph (3)
and inserting ‘‘17 percent’’.
TITLE IX—MISCELLANEOUS
PROVISIONS
Subtitle A—Regulatory Reform in
the District of Columbia
SEC. 901. REVIEW AND REVISION OF REGULATIONS AND
PERMIT AND APPLICATION PROCESSES.
(a) REVIEW
OF CURRENT REGULATIONS
BY AU-
THORITY.—
218
(1) IN
GENERAL.—Not later than 6 months
after the date of the enactment of this Act, the Dis-
trict of Columbia Financial Responsibility and Man-
agement Assistance Authority shall complete a re-
view of regulations of the District of Columbia in ef-
fect as of the date of the enactment of this Act and
analyze the extent to which such regulations unnec-
essarily and inappropriately impair economic devel-
opment in the District of Columbia and the financial
stability and management efficiency of the District
of Columbia government. To the greatest extent pos-
sible, such review shall take into account the work
and recommendations of the Business Regulatory
Reform Commission pursuant to the Business Regu-
latory Reform Commission Act of 1994 (DC Code,
sec. 2–4101 et seq.) and other existing and ongoing
public and private regulatory reform efforts. The
Authority shall transmit the findings of its review to
the Mayor, Council, and Congress.
(2) REVISION.—Based on the review conducted
under paragraph (1) and taking into account actions
by the Council and the Executive Branch of the Dis-
trict of Columbia government, the Authority shall
take such additional actions as it considers appro-
priate to repeal or revise the regulations of the Dis-
219
trict of Columbia, in accordance with (and subject to
the terms and conditions described in) section 207
of the District of Columbia Financial Responsibility
and Management Assistance Act of 1995.
(b) SURVEY AND REVISION OF PERMIT AND APPLI-
CATION PROCESSES.—
(1) IN
GENERAL.—Not later than 6 months
after the date of the enactment of this Act, the Au-
thority shall complete a review of the current proc-
esses of the District of Columbia for obtaining per-
mits and applications of all types and analyze the
extent to which such processes and their completion
times vary from the processes applicable in other ju-
risdictions. To the greatest extent possible, such re-
view shall take into account the work and rec-
ommendations of the Business Regulatory Reform
Commission pursuant to the Business Regulatory
Reform Commission Act of 1994 (DC Code, sec. 2–
4101 et seq.) and other existing and ongoing public
and private regulatory reform efforts. The Authority
shall transmit the findings of its review to the
Mayor, Council, and Congress.
(2) REVISION.—Based on the review conducted
under paragraph (1) and taking into account actions
by the Council and the Executive Branch of the Dis-
220
trict of Columbia government, the Authority shall
take such additional actions as it considers appro-
priate to repeal or revise the permit and application
processes (and their completion times) of the Dis-
trict of Columbia, in accordance with (and subject to
the terms and conditions described in) section 207
of the District of Columbia Financial Responsibility
and Management Assistance Act of 1995. In carry-
ing out such repeals or revisions, the Authority shall
seek to ensure that the average time required to ob-
tain a permit or application from the District of Co-
lumbia is consistent with the average time for other
similar jurisdictions in the United States.
(c) REPORTS TO CONGRESS.—Upon the expiration of
the 6-month period which begins on the date of the enact-
ment of this Act and on a quarterly basis thereafter, the
Authority shall submit a report to Congress describing the
steps taken to carry out the requirements of this section
and the effectiveness of the regulatory, permit, and appli-
cation processes of the District of Columbia.
SEC. 902. REPEAL OF CLEAN AIR COMPLIANCE FEE ACT OF
1994.
(a) REPEAL.—
(1) IN GENERAL.—Effective March 21, 1995,
the Clean Air Compliance Fee Act of 1994 is hereby
221
repealed (DC Code, sec. 47–2731 et seq.), except as
provided in subsection (b).
(2) 
CONFORMING
AMENDMENT.—Section
2(b)(2) of the Stable and Reliable Source of Reve-
nues for WMATA Act of 1982 (DC Code, sec. 1–
2466(b)(2)) is amended by striking subparagraph
(H).
(b) EXCEPTION FOR PROVISIONS EXEMPTING DELIV-
ERY OF NEWSPAPERS FROM APPLICATION OF CERTAIN
TAXES.—Subsection (a) shall not apply to section 14 of
the Clean Air Compliance Fee Act of 1994.
SEC. 903. REPEAL OF FEDERAL CHARTER OF GROUP HOS-
PITALIZATION AND MEDICAL SERVICES, INC.
(a) REPEAL OF FEDERAL CHARTER.—
(1) IN GENERAL.—The Act entitled ‘‘An Act
providing for the incorporation of certain persons as
Group Hospitalization, Inc.’’, approved August 11,
1939 (53 Stat. 1412), is repealed.
(2) AUTHORIZATION TO FILE ARTICLES OF IN-
CORPORATION.—Group Hospitalization and Medical
Services, Inc. is hereby authorized to file articles of
incorporation under the District of Columbia Non-
profit Corporation Act.
(3) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall take effect upon the filing
222
and effectiveness of articles of incorporation of
Group Hospitalization and Medical Services, Inc.
under the District of Columbia Nonprofit Corpora-
tion Act.
(b) EFFECTS OF BECOMING A DISTRICT OF COLUM-
BIA NONPROFIT CORPORATION.—Effective upon the filing
and effectiveness of articles of incorporation of Group
Hospitalization and Medical Services, Inc. as authorized
in paragraph (2) of subsection (a), Group Hospitalization
and Medical Services, Inc.—
(1) shall be a District of Columbia nonprofit
corporation subject to the articles of incorporation;
(2) shall be deemed organized and existing
under the District of Columbia Nonprofit Corpora-
tion Act, notwithstanding any of the provisions of
section 4 of the District of Columbia Nonprofit Cor-
poration Act regarding organizations subject to any
of the provisions of the insurance laws of the Dis-
trict of Columbia;
(3) shall be legally domiciled in the District of
Columbia;
(4) shall be regulated by the Superintendent of
Insurance of the District of Columbia in accordance
with the laws and regulations of the District of Co-
lumbia;
223
(5) shall continue to exist; and
(6) shall continue to be authorized to transact
business—
(A) under existing certificates of authority
and licenses issued to Group Hospitalization
and Medical Services, Inc. before such filing
and effectiveness,
(B) under the name ‘‘Group Hospitaliza-
tion and Medical Services, Inc.’’, and
(C) under applicable laws and regulations.
(d) WAIVER OF CONGRESSIONAL REVIEW PERIOD.—
Notwithstanding section 602(c)(1) of the District of Co-
lumbia Self-Government and Governmental Reorganiza-
tion Act (sec. 1–233(c)(1), D.C. Code), the Hospital and
Medical Services Corporation Regulatory Act of 1996
(D.C. Act 11–505) shall take effect on the date of the
enactment of such Act or the date of the enactment of
this Act, whichever is later.
SEC. 904. EXEMPTION OF CERTAIN CONTRACTS FROM
COUNCIL REVIEW.
(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 by adding
at the end the following new subsection:
224
‘‘(d) EXEMPTION FOR CERTAIN CONTRACTS.—The
requirements of this section shall not apply with respect
to any of the following contracts:
‘‘(1) Any contract entered into by the Washing-
ton Convention Center Authority for preconstruction
activities, project management, design, or construc-
tion.
‘‘(2) Any contract entered into by the District
of Columbia Water and Sewer Authority established
pursuant to the Water and Sewer Authority Estab-
lishment and Department of Public Works Reorga-
nization Act of 1996, other than contracts for the
sale or lease of the Blue Plains Wastewater Treat-
ment Plant.
‘‘(3) At the option of the Council, any contract
for a highway improvement project carried out under
title 23, United States Code.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to contracts entered
into on or after the date of the enactment of this Act.
225
Subtitle B—Other Miscellaneous
Provisions
SEC. 911. REVISIONS TO FINANCIAL RESPONSIBILITY AND
MANAGEMENT ASSISTANCE ACT.
(a) USE OF INTEREST ON ACCOUNTS OF AUTHORITY
FOR BENEFIT OF DISTRICT.—Section 106 of the District
of Columbia Financial Responsibility and Management
Assistance Act of 1995 (DC Code, sec. 47–391.6) is
amended by adding at the end the following new sub-
section:
‘‘(d) USE OF INTEREST ON ACCOUNTS FOR DIS-
TRICT.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this Act, the Authority may transfer or
otherwise expend any amounts derived from interest
earned on accounts held by the Authority on behalf
of the District of Columbia for such purposes as it
considers appropriate to promote the economic sta-
bility and management efficiency of the District gov-
ernment.
‘‘(2) SPENDING NOT SUBJECT TO APPROPRIA-
TION
BY
CONGRESS.—Notwithstanding subsection
(a)(3), any amounts transferred or otherwise ex-
pended pursuant to paragraph (1) may be obligated
or expended without approval by Act of Congress.’’.
226
(b) APPOINTMENT OF INSPECTOR GENERAL.—Sec-
tion 303(e)(1) of such Act (DC Code, sec. 1–1182.8 note)
is amended by striking ‘‘the Authority’’ and inserting ‘‘the
Mayor’’.
SEC. 912. COOPERATIVE AGREEMENTS BETWEEN FEDERAL
AGENCIES AND METROPOLITAN POLICE DE-
PARTMENT.
(a) AGREEMENTS.—Each covered Federal law en-
forcement agency may enter into a cooperative agreement
with the Metropolitan Police Department of the District
of Columbia to assist the Department in carrying out
crime prevention and law enforcement activities in the
District of Columbia, including taking appropriate action
to enforce subsection (e) (except that nothing in such an
agreement may be construed to grant authority to the
United States to prosecute violations of subsection (e)).
(b) CONTENTS OF AGREEMENT.—An agreement en-
tered into between a covered Federal law enforcement
agency and the Metropolitan Police Department pursuant
to this Act may include agreements relating to—
(1) sending personnel of the agency on patrol in
areas of the District of Columbia which immediately
surround the area of the agency’s jurisdiction, and
granting personnel of the agency the power to arrest
in such areas;
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(2) sharing and donating equipment and sup-
plies with the Metropolitan Police Department;
(3) operating on shared radio frequencies with
the Metropolitan Police Department;
(4) permitting personnel of the agency to carry
out processing and papering of suspects they arrest
in the District of Columbia; and
(5) such other items as the agency and the
Metropolitan Police Department may agree to in-
clude in the agreement.
(c) COORDINATION BY U.S. ATTORNEY’S OFFICE.—
The United States Attorney for the District of Columbia
shall coordinate the agreements entered into pursuant to
this Act and shall provide technical assistance to covered
Federal law enforcement agencies in carrying out their re-
sponsibilities under this Act and under such agreements.
(d) COVERED FEDERAL LAW ENFORCEMENT AGEN-
CIES DESCRIBED.—In this section, the term ‘‘covered
Federal law enforcement agency’’ means any of the follow-
ing:
(1) United States Capitol Police.
(2) United States Marshals Service.
(3) Library of Congress Police.
(4) Bureau of Engraving and Printing Police
Force.
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(5) Supreme Court Police.
(6) Amtrak Police Department.
(7) Department of Protective Services, United
States Holocaust Museum.
(8) Government Printing Office Police.
(9) United States Park Police.
(10) Bureau of Alcohol, Tobacco, and Firearms.
(11) Drug Enforcement Administration.
(12) Federal Bureau of Investigation.
(13) Criminal Investigation Division, Internal
Revenue Service.
(14) Department of the Navy Police Division,
Naval District Washington.
(15) Naval Criminal Investigative Service.
(16) 11th Security Police Squadron, Bolling Air
Force Base.
(17) United States Army Military District of
Washington.
(18) United States Customs Service.
(19) Immigration and Naturalization Service.
(20) Postal Inspection Service, United States
Postal Service.
(21) Uniformed Division, United States Secret
Service.
(22) United States Secret Service.
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(23) National Zoological Park Police.
(24) Federal Protective Service, General Serv-
ices Administration, National Capital Region.
(25) Defense Protective Service, Department of
Defense Washington Headquarters Services.
(26) Office of Protective Services, Smithsonian
Institution.
(27) Office of Protective Services, National Gal-
lery of Art.
(28) United States Army Criminal Investigation
Command, Department of the Army Washington
District, 3rd Military Police Group.
(29) Marine Corps Law Enforcement.
(30) Department of State Diplomatic Security.
(31) United States Coast Guard.
(32) United States Postal Police.
(e) CERTAIN PROHIBITED ACTIVITY.—Effective with
respect to conduct occurring on or after the date of the
enactment of this Act, whoever in the District of Columbia
knowingly and willfully obstructs any bridge connecting
the District of Columbia and the Commonwealth of Vir-
ginia—
(1) shall be fined not less than $1,000 or not
more than $5,000, and in addition may be impris-
oned not more than 30 days; or
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(2) if applicable, shall be subject to prosecution
by the District of Columbia under the provisions of
District law and regulation amended by the Safe
Streets Anti-Prostitution Amendment Act of 1996
(D.C. Law 11–130).
SEC. 913. PERMITTING GARNISHMENT OF WAGES OF OFFI-
CERS AND EMPLOYEES OF DISTRICT OF CO-
LUMBIA GOVERNMENT.
Section 2 of D.C. Law 2–14 (DC Code, sec. 1–516)
is amended—
(1) by striking ‘‘After July 25’’ and inserting
‘‘(a) After July 25’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) After October 1, 1997, wages salaries, annuities,
retirement and disability benefits, and other remuneration
based upon employment, or other income owed by, due
from, and payable by the government of the District of
Columbia to any individual shall be subject to attachment,
garnishment, assignment, or withholding in accordance
with subchapter III of chapter 5 of title 16 of the District
of Columbia Code in the same manner and to the same
extent as if the government of the District of Columbia
were a private person.’’.
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SEC. 
914. 
PERMITTING 
EXCESS 
APPROPRIATIONS 
BY
WATER AND SEWER AUTHORITY FOR CAP-
ITAL PROJECTS.
(a) IN GENERAL.—Section 445A of the District of
Columbia Self-Government and Governmental Reorganiza-
tion Act (DC Code, sec. 43–1691), as added by section
4(a) of the District of Columbia Water and Sewer Author-
ity Act of 1996, is amended—
(1) by striking ‘‘The District’’ and inserting
‘‘(a) IN GENERAL.—The District’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) PERMITTING EXPENDITURE OF EXCESS REVE-
NUES FOR CAPITAL PROJECTS IN EXCESS OF BUDGET.—
Notwithstanding the amount appropriated for the District
of Columbia Water and Sewer Authority for capital
projects for a fiscal year, if the revenues of the Authority
for the year exceed the estimated revenues of the Author-
ity provided in the annual budget of the District of Colum-
bia for the fiscal year, the Authority may obligate or ex-
pend an additional amount for capital projects during the
year equal to the amount of such excess revenues.’’.
(b) CONFORMING AMENDMENT.—The fourth sen-
tence of section 446 of such Act (DC Code, sec. 47–304),
as amended by section 2(c)(2) of the District of Columbia
Water and Sewer Authority Act of 1996, is amended by
232
striking ‘‘in section 467(d)’’ and inserting ‘‘in section
445A(b), section 467(d)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to fiscal years begin-
ning on or after October 1, 1996.
SEC. 915. REQUIRING CERTAIN FEDERAL OFFICIALS TO
PROVIDE NOTICE BEFORE CARRYING OUT
ACTIVITIES AFFECTING REAL PROPERTY LO-
CATED IN DISTRICT OF COLUMBIA.
(a) HEADS OF FEDERAL AGENCIES.—
(1) IN GENERAL.—Except as provided in sub-
section (d), the head of any Federal agency may not
carry out any activity that affects real property lo-
cated in the District of Columbia unless—
(A) not later than 60 days before carrying
out such activity, the head of the agency pro-
vides a notice describing such activity and the
property affected to the Administrator of Gen-
eral Services and the Administrator of General
Services transmits such notice to the individuals
described in subsection (c); and
(B) the head of the agency provides the in-
dividuals described in subsection (c) with the
opportunity to present oral or written com-
ments on the activity to a representative of the
233
head of the agency before the head of the agen-
cy carries out the activity.
(2) FEDERAL AGENCY DEFINED.—In subsection
(a), the term ‘‘Federal agency’’ means an executive
department (as defined in section 101 of title 5,
United States Code).
(b) ARCHITECT OF THE CAPITOL.—Except as pro-
vided in subsection (d), the Architect of the Capitol may
not carry out any activity that affects real property located
in the District of Columbia unless—
(1) not later than 60 days before carrying out
such activity, the Architect provides a notice describ-
ing such activity and the property affected to the
Committee on Transportation and Infrastructure of
the House of Representatives and the Committee on
Environment and Public Works of the Senate and
such Committees transmit such notice to the individ-
uals described in subsection (c); and
(2) the Architect provides the individuals de-
scribed in subsection (c) with the opportunity to
present oral or written comments on the activity to
a representative of the Architect before the Architect
carries out the activity.
(c) INDIVIDUALS DESCRIBED.—The individuals de-
scribed in this paragraph (with respect to the activity and
234
the real property involved) are the Mayor of the District
of Columbia, the Chair of the Council of the District of
Columbia, and the Chair of the Advisory Neighborhood
Commission (as established pursuant to section 738 of the
District of Columbia Self-Government and Governmental
Reorganization Act) in whose neighborhood such property
is located.
(d) EXCEPTION FOR EMERGENCIES.—The head of a
Federal agency or the Architect of the Capitol may waive
the requirements of subsection (a) if the head of the agen-
cy or the Architect finds that compliance with the require-
ments would jeopardize the public safety or the national
security interests of the United States, but only if the head
of the agency or the Architect—
(1) certifies such finding and the reasons for
such finding to the individuals described in sub-
section (c) and to Congress; and
(2) at the earliest time practicable, provides
such individuals with the notice described in para-
graph (1) of subsection (a) or (b) (whichever is ap-
plicable) and the opportunity to present comments
described in paragraph (2) of subsection (a) or (b).
(e) EFFECTIVE DATE.—Section 1 shall apply to ac-
tivities carried out after the expiration of the 60-day pe-
riod that begins on the date of the enactment of this Act.
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SEC. 916. SHORT TITLE OF HOME RULE ACT.
(a) IN GENERAL.—Section 101 of the District of Co-
lumbia Self-Government and Governmental Reorganiza-
tion Act is amended by striking ‘‘District of Columbia
Self-Government and Governmental Reorganization Act’’
and inserting ‘‘District of Columbia Home Rule Act’’.
(b) REFERENCES IN LAW.—Any reference in law or
regulation to the District of Columbia Self-Government
and Governmental Reorganization Act shall be deemed to
be a reference to the District of Columbia Home Rule Act.
Subtitle C—Effective Date; General
Provisions
SEC. 921. EFFECTIVE DATE.
Except as otherwise provided in this Act, the provi-
sions of this Act shall take effect on the later of October
1, 1997, or the day the District of Columbia Financial
Responsibility and Management Assistance Authority cer-
tifies that the financial plan and budget for the District
government for fiscal year 1998 meet the requirements of
section 201(c)(1) of the District of Columbia Financial
Responsibility and Management Assistance Act of 1995,
as amended by this Act.
SEC. 922. TECHNICAL ASSISTANCE.
Any Federal agency (as defined in section 101 of title
31, United States Code) may provide, at the discretion
of the head of the agency, technical assistance to, and
236
training for, personnel of the Government of the District
of Columbia. Such assistance shall be limited to assistance
that does not interfere with the mission of the agency. The
authority provided by this section shall expire three years
from the date of enactment of this statute.
SEC. 923. LIABILITY.
The United States, its agencies, and personnel will
not incur any liability on the basis of the activities of the
District of Columbia, its agencies, or personnel as a result
of any acts or omissions in carrying out this Act or any
amendments made by this Act.
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