Title II, Subtitle A
‘‘(1) pledge to the Secretary specific taxes and
revenue of the District government, if such pledging
does not cause the District government to violate ex-
isting laws or contracts; and
‘‘(2) establish a debt service reserve fund
pledged to the Secretary.
‘‘SEC. 604. REIMBURSEMENT TO THE TREASURY.
‘‘(a) REIMBURSEMENT AMOUNT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), on any date on which a reimbursement
payment is due to the Treasury under the terms of
any advance made under this title, the District shall
pay to the Treasury the amount of such reimburse-
ment payment out of taxes and revenue collected for
the support of the District government.
‘‘(2) EXCEPTIONS
FOR
TRANSITIONAL
AD-
VANCES.—
‘‘(A) ADVANCES MADE BEFORE OCTOBER
1, 1995.—
‘‘(i) FINANCIAL
PLAN
AND
BUDGET
APPROVED.—If the Authority approves a
financial plan for the District government
before October 1, 1995, the District gov-
ernment may use the proceeds of any ad-
vance made under section 602 to discharge
Title II, Subtitle A
its obligation to reimburse the Treasury
for any advance made under section
601(a).
‘‘(ii) FINANCIAL PLAN AND BUDGET
NOT APPROVED.—If the Authority has not
approved a financial plan and budget for
the District government by October 1,
1995, the annual Federal payment appro-
priated to the District government for the
fiscal year ending September 30, 1996,
shall be withheld and applied to discharge
the District government’s obligation to re-
imburse the Treasury for any advance
made under section 601(a).
‘‘(B) ADVANCES MADE ON OR AFTER OC-
TOBER 1, 1995.—
‘‘(i) FINANCIAL
PLAN
AND
BUDGET
APPROVED.—If the Authority approves a
financial plan and budget for the District
government during fiscal year 1996, the
District may use the proceeds of any ad-
vance made under section 602 to discharge
its obligation to reimburse the Treasury
for any advance made under section
601(b).
Title II, Subtitle A
‘‘(ii) FINANCIAL PLAN AND BUDGET
NOT APPROVED.—If the Authority has not
approved a financial plan and budget for
the District government by October 1,
1996, the annual Federal payment appro-
priated to the District government for the
fiscal year ending September 30, 1997,
shall be withheld and applied to discharge
the District government’s obligation to re-
imburse the Treasury for any advance
made under section 601(b).
‘‘(b) REMEDIES FOR FAILURE TO REIMBURSE.—If,
on any date on which a reimbursement payment is due
to the Treasury under the terms of any advance made
under this title, the District government does not make
such reimbursement payment, the Secretary shall take the
actions listed in this subsection.
‘‘(1) 
WITHHOLD
ANNUAL
FEDERAL
PAY-
MENT.—Notwithstanding any other law, before turn-
ing over to the Authority (on behalf of the District
government under section 205 of the District of Co-
lumbia Financial Responsibility and Management
Assistance Act of 1995) any annual Federal pay-
ment appropriated to the District government for
any fiscal year under title V of the District of Co-
Title II, Subtitle A
lumbia Self-Government and Governmental Reorga-
nization Act (if any), the Secretary shall withhold
from such annual Federal payment, and apply to-
ward reimbursement for the payment not made, an
amount equal to the amount needed to fully reim-
burse the Treasury for the payment not made.
‘‘(2) 
WITHHOLD
OTHER
FEDERAL
PAY-
MENTS.—If, after the Secretary takes the action de-
scribed in paragraph (1), the Treasury is not fully
reimbursed, the Secretary shall withhold from each
grant, entitlement, loan, or other payment to the
District government by the Federal Government not
dedicated to making entitlement or benefit payments
to individuals, and apply toward reimbursement for
the payment not made, an amount that, when added
to the amount withheld from each other such grant,
entitlement, loan, or other payment, will be equal to
the amount needed to fully reimburse the Treasury
for the payment not made.
‘‘(3) ATTACH
AVAILABLE
DISTRICT
REVE-
NUES.—If, after the Secretary takes the actions de-
scribed in paragraphs (1) and (2), the Treasury is
not fully reimbursed, the Secretary shall attach any
and all revenues of the District government which
the Secretary may lawfully attach, and apply toward
Title II, Subtitle A
reimbursement for the payment not made, an
amount equal to the amount needed to fully reim-
burse the Treasury for the payment not made.
‘‘(4) TAKE OTHER ACTIONS.—If, after the Sec-
retary takes the actions described in paragraphs (1)
through (3), the Treasury is not fully reimbursed,
the Secretary shall take any and all other actions
permitted by law to recover from the District gov-
ernment the amount needed to fully reimburse the
Treasury for the payment not made.
‘‘SEC. 605. DEFINITIONS.
‘‘For purposes of this title—
‘‘(1) the term ‘Authority’ means the District of
Columbia Financial Responsibility and Management
Assistance Authority established under section
101(a) of the District of Columbia Financial Re-
sponsibility and Management Assistance Act of
1995;
‘‘(2) the term ‘control period’ has the meaning
given such term under section 305(4) of such Act;
‘‘(3) the term ‘District government’ has the
meaning given such term under section 305(5) of
such Act;
Title II, Subtitle A
‘‘(4) the term ‘financial plan and budget’ has
the meaning given such term under section 305(6)
of such Act; and
‘‘(5) the term ‘Secretary’ means the Secretary
of the Treasury.’’.
(d) EXPENDITURE OF FUNDS FROM ACCOUNT IN
ACCORDANCE WITH AUTHORITY INSTRUCTIONS.—Any
funds allocated by the Authority to the Mayor from the
escrow account described in subsection (b)(1) may be ex-
pended by the Mayor only in accordance with the terms
and conditions established by the Authority at the time
the funds are allocated.
(e) PROHIBITION AGAINST BORROWING WHILE SUIT
PENDING.—The Mayor may not requisition advances from
the Treasury pursuant to title VI of the District of Colum-
bia Revenue Act of 1939 if there is an action filed by the
Mayor or the Council which is pending against the Author-
ity challenging the establishment of or any action taken
by the Authority.
SEC. 205. DEPOSIT OF ANNUAL FEDERAL PAYMENT WITH
AUTHORITY.
(a) IN GENERAL.—
(1) DEPOSIT INTO ESCROW ACCOUNT.—In the
case of a fiscal year which is a control year, the Sec-
retary of the Treasury shall deposit the annual Fed-
Title II, Subtitle A
and conditions established by the Authority at the time
the funds are allocated.
SEC. 206. EFFECT OF FINDING OF NON-COMPLIANCE WITH
FINANCIAL PLAN AND BUDGET.
(a) SUBMISSION OF REPORTS.—Not later than 30
days after the expiration of each quarter of each fiscal
year (beginning with fiscal year 1996), the Mayor shall
submit reports to the Authority describing the actual reve-
nues obtained and expenditures made by the District gov-
ernment during the quarter with its cash flows during the
quarter, and comparing such actual revenues, expendi-
tures, and cash flows with the most recent projections for
these items.
(b) DEMAND FOR ADDITIONAL INFORMATION.—If
the Authority determines, based on reports submitted by
the Mayor under subsection (a), independent audits, or
such other information as the Authority may obtain, that
the revenues or expenditures of the District government
during a control year are not consistent with the financial
plan and budget for the year, the Authority shall require
the Mayor to provide such additional information as the
Authority determines to be necessary to explain the incon-
sistency.
(c) CERTIFICATION OF VARIANCE.—
Title II, Subtitle A
(1) IN GENERAL.—After requiring the Mayor to
provide additional information under subsection (b),
the Authority shall certify to the Council, the Presi-
dent, the Secretary of the Treasury, and Congress
that the District government is at variance with the
financial plan and budget unless—
(A)(i) the additional information provides
an explanation for the inconsistency which the
Authority finds reasonable and appropriate, or
(ii) the District government adopts or im-
plements remedial action (including revising the
financial plan and budget pursuant to section
202(e)) to correct the inconsistency which the
Authority finds reasonable and appropriate,
taking into account the terms of the financial
plan and budget; and
(B) the Mayor agrees to submit the re-
ports described in subsection (a) on a monthly
basis for such period as the Authority may
require.
(2) SPECIAL RULE FOR INCONSISTENCIES AT-
TRIBUTABLE TO ACTS OF CONGRESS.—
(A) DETERMINATION BY AUTHORITY.—If
the Authority determines that the revenues or
expenditures of the District government during
Title II, Subtitle A
a control year are not consistent with the finan-
cial plan and budget for the year as approved
by the Authority under section 202 as a result
of the terms and conditions of the budget of
the District government for the year as enacted
by Congress or as a result of any other law en-
acted by Congress which affects the District of
Columbia, the Authority shall so notify the
Mayor.
(B) CERTIFICATION.—In the case of an in-
consistency described in subparagraph (A), the
Authority shall certify to the Council, the Presi-
dent, the Secretary of the Treasury, and Con-
gress that the District government is at vari-
ance with the financial plan and budget unless
the District government adopts or implements
remedial action (including revising the financial
plan and budget pursuant to section 202(e)) to
correct the inconsistency which the Authority
finds reasonable and appropriate, taking into
account the terms of the financial plan and
budget.
(d) EFFECT OF CERTIFICATION.—If the Authority
certifies to the Secretary of the Treasury that a variance
exists—
Title II, Subtitle A
(1) the Authority may withhold any funds de-
posited with the Authority under section 204(b) or
section 205(a) which would otherwise be expended
on behalf of the District government; and
(2) the Secretary shall withhold funds otherwise
payable to the District of Columbia under such Fed-
eral programs as the Authority may specify (other
than funds dedicated to making entitlement or bene-
fit payments to individuals), in such amounts and
under such other conditions as the Authority may
specify.
SEC. 207. RECOMMENDATIONS ON FINANCIAL STABILITY
AND MANAGEMENT RESPONSIBILITY.
(a) IN GENERAL.—The Authority may at any time
submit recommendations to the Mayor, the Council, the
President, and Congress on actions the District govern-
ment or the Federal Government may take to ensure com-
pliance by the District government with a financial plan
and budget or to otherwise promote the financial stability,
management responsibility, and service delivery efficiency
of the District government, including recommendations re-
lating to—
(1) the management of the District govern-
ment’s financial affairs, including cash forecasting,
information technology, placing controls on expendi-
Title II, Subtitle A
tures for personnel, reducing benefit costs, reforming
procurement practices, and placing other controls on
expenditures;
(2) the relationship between the District gov-
ernment and the Federal Government;
(3) the structural relationship of departments,
agencies, and independent agencies within the Dis-
trict government;
(4) the modification of existing revenue struc-
tures, or the establishment of additional revenue
structures;
(5) the establishment of alternatives for meet-
ing obligations to pay for the pensions of former
District government employees;
(6) modifications or transfers of the types of
services which are the responsibility of and are deliv-
ered by the District government;
(7) modifications of the types of services which
are delivered by entities other than the District gov-
ernment under alternative service delivery mecha-
nisms (including privatization and commercializa-
tion);
(8) the effects of District of Columbia laws and
court orders on the operations of the District gov-
ernment;
Title II, Subtitle A
(9) the establishment of a personnel system for
employees of the District government which is based
upon employee performance standards; and
(10) the improvement of personnel training and
proficiency, the adjustment of staffing levels, and
the improvement of training and performance of
management and supervisory personnel.
(b) RESPONSE TO RECOMMENDATIONS FOR ACTIONS
WITHIN AUTHORITY OF DISTRICT GOVERNMENT.—
(1) IN
GENERAL.—In the case of any rec-
ommendations submitted under subsection (a) dur-
ing a control year which are within the authority of
the District government to adopt, not later than 90
days after receiving the recommendations, the Mayor
or the Council (whichever has the authority to adopt
the recommendation) shall submit a statement to the
Authority, the President, and Congress which pro-
vides notice as to whether the District government
will adopt the recommendations.
(2) IMPLEMENTATION
PLAN
REQUIRED
FOR
ADOPTED RECOMMENDATIONS.—If the Mayor or the
Council (whichever is applicable) notifies the Author-
ity and Congress under paragraph (1) that the Dis-
trict government will adopt any of the recommenda-
tions submitted under subsection (a), the Mayor or
Title II, Subtitle A
the Council (whichever is applicable) shall include in
the statement a written plan to implement the rec-
ommendation which includes—
(A) specific performance measures to de-
termine the extent to which the District govern-
ment has adopted the recommendation; and
(B) a schedule for auditing the District
government’s compliance with the plan.
(3) 
EXPLANATIONS
REQUIRED
FOR
REC-
OMMENDATIONS
NOT
ADOPTED.—If the Mayor or
the Council (whichever is applicable) notifies the Au-
thority, the President, and Congress under para-
graph (1) that the District government will not
adopt any recommendation submitted under sub-
section (a) which the District government has au-
thority to adopt, the Mayor or the Council shall in-
clude in the statement explanations for the rejection
of the recommendations.
(c) IMPLEMENTATION OF REJECTED RECOMMENDA-
TIONS BY AUTHORITY.—
(1) IN GENERAL.—If the Mayor or the Council
(whichever is applicable) notifies the Authority, the
President, and Congress under subsection (b)(1)
that the District government will not adopt any rec-
ommendation submitted under subsection (a) which
100
Title II, Subtitle A
the District government has authority to adopt, the
Authority may by a majority vote of its members
take such action concerning the recommendation as
it deems appropriate, after consulting with the Com-
mittee on Government Reform and Oversight of the
House of Representatives and the Committee on
Governmental Affairs of the Senate.
(2) EFFECTIVE
DATE.—This subsection shall
apply with respect to recommendations of the Au-
thority made after the expiration of the 6-month pe-
riod which begins on the date of the enactment of
this Act.
SEC. 208. SPECIAL RULES FOR FISCAL YEAR 1996.
(a) ADOPTION OF TRANSITION BUDGET.—Notwith-
standing any provision of section 202 to the contrary, in
the case of fiscal year 1996, the following rules shall apply:
(1) Not later than 45 days after the appoint-
ment of its members, the Authority shall review the
proposed budget for the District of Columbia for
such fiscal year submitted to Congress under section
446 of the District of Columbia Self-Government
and Governmental Reorganization Act (taking into
account any items or provisions disapproved by the
Mayor or disapproved by the Mayor and reenacted
by the Council under section 404(f) of the District
101
Title II, Subtitle A
of Columbia Self-Government and Governmental Re-
organization Act, as amended by section 202(f)(2))
and the multiyear plan for the District of Columbia
prepared pursuant to section 443 of the District of
Columbia Self-Government and Governmental Reor-
ganization Act, and shall submit any recommenda-
tions for modifications to such financial plan and
budget to promote the financial stability of the Dis-
trict government to the Mayor, the Council, the
President, and Congress.
(2) Not later than 15 days after receiving the
recommendations of the Authority submitted under
paragraph (1), the Council (in consultation with the
Mayor) shall promptly adopt a revised budget for
the fiscal year (in this section referred to as the
‘‘transition budget’’), and shall submit the transition
budget to the Authority, the President, and Con-
gress.
(3) Not later than 15 days after receiving the
transition budget from the Council under paragraph
(2), the Authority shall submit a report to the
Mayor, the Council, the President, and Congress
analyzing the budget (taking into account any items
or provisions disapproved by the Mayor or dis-
approved by the Mayor and reenacted by the Council
102
Title II, Subtitle A
under section 404(f) of the District of Columbia
Self-Government and Governmental Reorganization
Act, as amended by section 202(f)(2)), and shall in-
clude in the report such recommendations for revi-
sions to the transition budget as the Authority con-
siders appropriate to promote the financial stability
of the District government during the fiscal year.
(b) FINANCIAL PLAN AND BUDGET.—
(1) DEADLINE FOR SUBMISSION.—For purposes
of section 202, the Mayor shall submit the financial
plan and budget for fiscal year 1996 as soon as
practicable after the date of the enactment of this
Act (in accordance with guidelines established by the
Authority).
(2) ADOPTION
BY
COUNCIL.—In accordance
with the procedures applicable under section 202
(including procedures providing for review by the
Authority)—
(A) the Council shall adopt the financial
plan and budget for the fiscal year (including
the supplemental budget incorporated in the fi-
nancial plan and budget) prior to the submis-
sion by the Mayor of the financial plan and
budget for fiscal year 1997 under section
202(a); and
103
Title II, Subtitle A
(B) the financial plan and budget adopted
by the Council (and, in the case of a financial
plan and budget disapproved by the Authority,
together with the financial plan and budget ap-
proved and recommended by the Authority)
shall be submitted to Congress (in accordance
with the procedures applicable under such sec-
tion) as a supplemental budget request for fis-
cal year 1996 (in accordance with section 446
of the District of Columbia Self-Government
and Governmental Reorganization Act).
(3) TRANSITION
BUDGET
AS
TEMPORARY
FI-
NANCIAL PLAN AND BUDGET.—Until the approval of
the financial plan and budget for fiscal year 1996 by
the Authority under this subsection, the transition
budget established under subsection (a) (as enacted
by Congress) shall serve as the financial plan and
budget adopted under this subtitle for purposes of
this Act (and any provision of law amended by this
Act) for fiscal year 1996.
(c) RESTRICTIONS
ON ADVANCES FROM TREAS-
URY.—
(1) MONTHLY DETERMINATION OF PROGRESS
TOWARD
FINANCIAL
PLAN
AND
BUDGET.—During
each month of fiscal year 1996 prior to the adoption
104
Title II, Subtitle A
of the financial plan and budget, the Authority shall
determine whether the District government is mak-
ing appropriate progress in preparing and adopting
a financial plan and budget for the fiscal year under
this subtitle.
(2) CERTIFICATION.—The Authority shall pro-
vide the President and Congress with a certification
if the Authority finds that the District government
is not making appropriate progress in developing the
financial plan and budget for a month, and shall no-
tify the President and Congress that the certification
is no longer in effect if the Authority finds that the
District government is making such progress after
the certification is provided.
(3) PROHIBITION AGAINST ALLOCATION OF AD-
VANCES
IF
CERTIFICATION
IN
EFFECT.—At any
time during which a certification under paragraph
(2) is in effect, Authority may not allocate any funds
obtained through advances to the Mayor under title
VI of the District of Columbia Revenue Act of 1939
from the escrow account in which the funds are held.
SEC. 209. CONTROL PERIODS DESCRIBED.
(a) INITIATION.—For purposes of this Act, a ‘‘control
period’’ is initiated upon the occurrence of any of the fol-
lowing events (as determined by the Authority based upon
105
Title II, Subtitle A
information obtained through the Mayor, the Inspector
General of the District of Columbia, or such other sources
as the Authority considers appropriate):
(1) The requisitioning by the Mayor of ad-
vances from the Treasury of the United States
under title VI of the District of Columbia Revenue
Act of 1939 (sec. 47–3401, D.C. Code), or the exist-
ence of any unreimbursed amounts obtained pursu-
ant to such authority.
(2) The failure of the District government to
provide sufficient revenue to a debt service reserve
fund of the Authority under subtitle B.
(3) The default by the District government with
respect to any loans, bonds, notes, or other form of
borrowing.
(4) The failure of the District government to
meet its payroll for any pay period.
(5) The existence of a cash deficit of the Dis-
trict government at the end of any quarter of the
fiscal year in excess of the difference between the es-
timated revenues of the District government and the
estimated expenditures of the District government
(including repayments of temporary borrowings)
during the remainder of the fiscal year or the re-
mainder of the fiscal year together with the first 6
106
Title II, Subtitle A
months of the succeeding fiscal year (as determined
by the Authority in consultation with the Chief Fi-
nancial Officer of the District of Columbia).
(6) The failure of the District government to
make required payments relating to pensions and
benefits for current and former employees of the
District government.
(7) The failure of the District government to
make required payments to any entity established
under an interstate compact to which the District of
Columbia is a signatory.
(b) TERMINATION.—
(1) IN GENERAL.—A control period terminates
upon the certification by the Authority that—
(A) the District government has adequate
access to both short-term and long-term credit
markets at reasonable interest rates to meet its
borrowing needs; and
(B) for 4 consecutive fiscal years (occur-
ring after the date of the enactment of this Act)
the expenditures made by the District govern-
ment during each of the years did not exceed
the revenues of the District government during
such years (as determined in accordance with
generally accepted accounting principles, as
107
Title II, Subtitle B
contained in the comprehensive annual financial
report for the District of Columbia under sec-
tion 448(a)(4) of the District of Columbia Self-
Government and Governmental Reorganization
Act).
(2) CONSULTATION
WITH
INSPECTOR
GEN-
ERAL.—In making the determination under this sub-
section, the Authority shall consult with the Inspec-
tor General of the District of Columbia.
(c) CONTROL PERIOD DEEMED TO EXIST UPON EN-
ACTMENT.—For purposes of this subtitle, a control period
is deemed to exist upon the enactment of this Act.
Subtitle B—Issuance of Bonds
SEC. 211. AUTHORITY TO ISSUE BONDS.
(a) IN GENERAL.—
(1) REQUEST OF MAYOR.—Subject to the re-
quirements of this subtitle, the Authority may at the
request of the Mayor pursuant to an Act of the
Council issue bonds, notes, or other obligations to
borrow funds to obtain funds for the use of the Dis-
trict government, in such amounts and in such man-
ner as the Authority considers appropriate.
(2) SPECIAL
RULE
FOR
INSTRUMENTALITIES
WITH
INDEPENDENT
BORROWING
AUTHORITY.—In
the case of an agency or instrumentality of the Dis-
108
Title II, Subtitle B
trict government which under law has the authority
to issue bonds, notes, or obligations to borrow funds
without the enactment of an Act of the Council, the
Authority may issue bonds, notes, or other obliga-
tions to borrow funds for the use or functions of
such agency or instrumentality at the request of the
head of the agency or instrumentality.
(b) DEPOSIT OF FUNDS OBTAINED THROUGH BOR-
ROWING WITH AUTHORITY.—Any funds obtained by the
District government through borrowing by the Authority
pursuant to this subtitle shall be deposited into an escrow
account held by the Authority, which shall allocate such
funds to the District government in such amounts and at
such times as the Authority considers appropriate, consist-
ent with the specified purposes of such funds and the ap-
plicable financial plan and budget under subtitle A.
(c) USES OF FUNDS OBTAINED THROUGH BONDS.—
Any funds obtained through the issuance of bonds, notes,
or other obligations pursuant to this subtitle may be used
for any purpose (consistent with the applicable financial
plan and budget) under subtitle A for which the District
government may use borrowed funds under the District
of Columbia Self-Government and Governmental Reorga-
nization Act and for any other purpose which the Author-
ity considers appropriate.
109
Title II, Subtitle B
SEC. 212. PLEDGE OF SECURITY INTEREST IN REVENUES
OF DISTRICT GOVERNMENT.
(a) IN GENERAL.—The Authority may pledge or
grant a security interest in revenues to individuals or enti-
ties purchasing bonds, notes, or other obligations issued
pursuant to this subtitle.
(b) DEDICATION OF REVENUE STREAM FROM DIS-
TRICT GOVERNMENT.—The Authority shall require the
Mayor—
(1) to pledge or direct taxes or other revenues
otherwise payable to the District government (which
are not otherwise pledged or committed), including
payments from the Federal Government, to the Au-
thority for purposes of securing repayment of bonds,
notes, or other obligations issued pursuant to this
subtitle; and
(2) to transfer the proceeds of any tax levied
for purposes of securing such bonds, notes, or other
obligations to the Authority immediately upon collec-
tion.
SEC. 213. ESTABLISHMENT OF DEBT SERVICE RESERVE
FUND.
(a) IN GENERAL.—As a condition for the issuance
of bonds, notes, or other obligations pursuant to this sub-
title, the Authority shall establish a debt service reserve
fund in accordance with this section.
110
Title II, Subtitle B
(b) REQUIREMENTS FOR FUND.—
(1) FUND DESCRIBED.—A debt service reserve
fund established by the Authority pursuant to this
subsection shall consist of such funds as the Author-
ity may make available, and shall be a trust fund
held for the benefit and security of the obligees of
the Authority whose bonds, notes, or other obliga-
tions are secured by such fund.
(2) USES OF FUNDS.—Amounts in a debt serv-
ice reserve fund may be used solely for the payment
of the principal of bonds secured in whole or in part
by such fund, the purchase or redemption of such
bonds, the payment of interest on such bonds, or the
payment of any redemption premium required to be
paid when such bonds and notes are redeemed prior
to maturity.
(3) RESTRICTIONS ON WITHDRAWALS.—
(A) IN
GENERAL.—Amounts in a debt
service reserve fund may not be withdrawn from
the fund at any time in an amount that would
reduce the amount of the fund to less than the
minimum reserve fund requirement established
for such fund in the resolution of the Authority
creating such fund, except for withdrawals for
the purpose of making payments when due of
111
Title II, Subtitle B
principal, interest, redemption premiums and
sinking fund payments, if any, with respect to
such bonds for the payment of which other
moneys of the Authority are not available, and
for the purpose of funding the operations of the
Authority for a fiscal year (in such amounts
and under such conditions as are established
under the budget of the Authority for the fiscal
year under section 106(a)).
(B) USE OF EXCESS FUNDS.—Nothing in
subparagraph (A) may be construed to prohibit
the Authority from transferring any income or
interest earned by, or increments to, any debt
service reserve fund due to the investment
thereof to other funds or accounts of the Au-
thority (to the extent such transfer does not re-
duce the amount of the debt service reserve
fund below the minimum reserve fund require-
ment established for such fund) for such pur-
poses as the Authority considers appropriate to
promote the financial stability and management
efficiency of the District government.
112
Title II, Subtitle B
SEC. 214. OTHER REQUIREMENTS FOR ISSUANCE OF
BONDS.
(a) MINIMUM DEBT SERVICE RESERVE FUND RE-
QUIREMENT.—The Authority may not at any time issue
bonds, notes, or other obligations pursuant to this subtitle
which are secured in whole or in part by a debt service
reserve fund under section 213 if issuance of such bonds
would cause the amount in the debt reserve fund to fall
below the minimum reserve requirement for such fund, un-
less the Authority at the time of issuance of such bonds
shall deposit in the fund an amount (from the proceeds
of the bonds to be issued or from other sources) which
when added to the amount already in such fund will cause
the total amount on deposit in such fund to equal or ex-
ceed the minimum reserve fund requirement established
by the Authority at the time of the establishment of the
fund.
(b) AMOUNTS INCLUDED IN AGGREGATE LIMIT ON
DISTRICT BORROWING.—Any amounts provided to the
District government through the issuance of bonds, notes,
or other obligations to borrow funds pursuant to this sub-
title shall be taken into account in determining whether
the amount of funds borrowed by the District of Columbia
during a fiscal year exceeds the limitation on such amount
provided under section 603(b) of the District of Columbia
Self-Government and Governmental Reorganization Act.
113
Title II, Subtitle C
SEC. 215. NO FULL FAITH AND CREDIT OF THE UNITED
STATES.
The full faith and credit of the United States is not
pledged for the payment of any principal of or interest
on any bond, note, or other obligation issued by the Au-
thority pursuant to this subtitle. The United States is not
responsible or liable for the payment of any principal of
or interest on any bond, note, or other obligation issued
by the Authority pursuant to this subtitle.
Subtitle C—Other Duties of
Authority
SEC. 221. DUTIES OF AUTHORITY DURING YEAR OTHER
THAN CONTROL YEAR.
(a) IN GENERAL.—During the period beginning upon
the termination of a control period pursuant to section
209(b) and ending with the suspension of its activities
pursuant to section 107(a), the Authority shall conduct
the following activities:
(1) The Authority shall review the budgets of
the District government adopted by the Council
under section 446 of the District of Columbia Self-
Government and Governmental Reorganization Act
for each fiscal year occurring during such period.
(2) At such time prior to the enactment of such
budget by Congress as the Authority considers ap-
propriate, the Authority shall prepare a report ana-
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Title II, Subtitle C
lyzing the budget and submit the report to the
Mayor, the Council, the President, and Congress.
(3) The Authority shall monitor the financial
status of the District government and shall submit
reports to the Mayor, the Council, the President,
and Congress if the Authority determines that a risk
exists that a control period may be initiated pursu-
ant to section 209(a).
(4) The Authority shall carry out activities
under subtitle B with respect to bonds, notes, or
other obligations of the Authority outstanding dur-
ing such period.
(b) REQUIRING MAYOR TO SUBMIT BUDGETS TO AU-
THORITY.—With respect to the budget for each fiscal year
occurring during the period described in subsection (a),
at the time the Mayor submits the budget of the District
government adopted by the Council to the President under
section 446 of the District of Columbia Self-Government
and Governmental Reorganization Act, the Mayor shall
submit such budget to the Authority.
SEC. 222. GENERAL ASSISTANCE IN ACHIEVING FINANCIAL
STABILITY AND MANAGEMENT EFFICIENCY.
In addition to any other actions described in this title,
the Authority may undertake cooperative efforts to assist
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Title II, Subtitle C
the District government in achieving financial stability
and management efficiency, including—
(1) assisting the District government in avoid-
ing defaults, eliminating and liquidating deficits,
maintaining sound budgetary practices, and avoiding
interruptions in the delivery of services;
(2) assisting the District government in improv-
ing the delivery of municipal services, the training
and effectiveness of personnel of the District govern-
ment, and the efficiency of management and super-
vision; and
(3) making recommendations to the President
for transmission to Congress on changes to this Act
or other Federal laws, or other actions of the Fed-
eral Government, which would assist the District
government in complying with an approved financial
plan and budget under subtitle A.
SEC. 223. OBTAINING REPORTS.
The Authority may require the Mayor, the Chair of
the Council, the Chief Financial Officer of the District of
Columbia, and the Inspector General of the District of Co-
lumbia, to prepare and submit such reports as the Author-
ity considers appropriate to assist it in carrying out its
responsibilities under this Act, including submitting copies
of any reports regarding revenues, expenditures, budgets,
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Title II, Subtitle C
costs, plans, operations, estimates, and other financial or
budgetary matters of the District government.
SEC. 224. REPORTS AND COMMENTS.
(a) ANNUAL REPORTS
TO CONGRESS.—Not later
than 30 days after the last day of each fiscal year which
is a control year, the Authority shall submit a report to
Congress describing—
(1) the progress made by the District govern-
ment in meeting the objectives of this Act during the
fiscal year;
(2) the assistance provided by the Authority to
the District government in meeting the purposes of
this Act for the fiscal year; and
(3) any other activities of the Authority during
the fiscal year.
(b) REVIEW AND ANALYSIS OF PERFORMANCE AND
FINANCIAL ACCOUNTABILITY REPORTS.—
(1) IN GENERAL.—The Authority shall review
each report prepared and submitted by the Mayor
under section 456 of the District of Columbia Self-
Government and Governmental Reorganization Act
(as added by section 3(a) of the Federal Payment
Reauthorization Act of 1994), and shall submit a re-
port to Congress analyzing the completeness and ac-
curacy of such reports.
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Title II, Subtitle C
(2) SUBMISSION OF REPORTS BY MAYOR.—Sec-
tion 456 of the District of Columbia Self-Govern-
ment and Governmental Reorganization Act, as
added by section 3(a) of the Federal Payment Reau-
thorization Act of 1994, is amended by adding at
the end the following new subsection:
‘‘(e) SUBMISSION OF REPORTS TO DISTRICT OF CO-
LUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT
ASSISTANCE AUTHORITY.—In the case of any report sub-
mitted by the Mayor under this section for a fiscal year
(or any quarter of a fiscal year) which is a control year
under the District of Columbia Financial Responsibility
and Management Assistance Act of 1995, the Mayor shall
submit the report to the District of Columbia Financial
Responsibility and Management Assistance Authority es-
tablished under section 101(a) of such Act in addition to
any other individual to whom the Mayor is required to
submit the report under this section.’’.
(c) COMMENTS REGARDING ACTIVITIES OF DISTRICT
GOVERNMENT.—At any time during a control year, the
Authority may submit a report to Congress describing any
action taken by the District government (or any failure
to act by the District government) which the Authority
determines will adversely affect the District government’s
ability to comply with an approved financial plan and
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budget under subtitle A or will otherwise have a signifi-
cant adverse impact on the best interests of the District
of Columbia.
(d) REPORTS ON EFFECT OF FEDERAL LAWS ON
DISTRICT GOVERNMENT.—At any time during any year,
the Authority may submit a report to the Mayor, the
Council, the President, and Congress on the effect of laws
enacted by Congress on the financial plan and budget for
the year and on the financial stability and management
efficiency of the District government in general.
(e) MAKING REPORTS PUBLICLY AVAILABLE.—The
Authority shall make any report submitted under this sec-
tion available to the public, except to the extent that the
Authority determines that the report contains confidential
material.
TITLE III—MISCELLANEOUS
PROVISIONS
SEC. 301. OTHER DISTRICT BUDGET REFORMS.
(a) INCLUSION
OF ALL FUNDS
OF DISTRICT
IN
BUDGET OF DISTRICT GOVERNMENT.—
(1) IN GENERAL.—Section 103 of the District
of Columbia Self-Government and Governmental
Reorganization Act (sec. 1–202, D.C. Code) is
amended—
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Title III
(A) by amending paragraph (10) to read
as follows:
‘‘(10) The term ‘District revenues’ means all
funds derived from taxes, fees, charges, miscellane-
ous receipts, the annual Federal payment to the Dis-
trict authorized under title V, grants and other
forms of financial assistance, or the sale of bonds,
notes, or other obligations, and any funds adminis-
tered by the District government under cost sharing
arrangements.’’;
(B) by amending paragraph (14) to read
as follows:
‘‘(14) The term ‘resources’ means revenues,
balances, enterprise or other revolving funds, and
funds realized from borrowing.’’; and
(C) by amending paragraph (15) to read
as follows:
‘‘(15) The term ‘budget’ means the entire re-
quest for appropriations or loan or spending author-
ity for all activities of all departments or agencies of
the District of Columbia financed from all existing,
proposed or anticipated resources, and shall include
both operating and capital expenditures.’’.
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall apply with respect to reve-
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nues, resources, and budgets of the District of Co-
lumbia for fiscal years beginning with fiscal year
1996.
(b) 
RESTRICTIONS
ON
REPROGRAMMING
OF
FUNDS.—
(1) IN
GENERAL.—Section 446 of such Act
(sec. 47–304, D.C. Code) is amended by adding at
the end the following: ‘‘After the adoption of the an-
nual budget for a fiscal year (beginning with the an-
nual budget for fiscal year 1995), no reprogramming
of amounts in the budget may occur unless the
Mayor submits to the Council a request for such
reprogramming and the Council approves the re-
quest, but only if any additional expenditures pro-
vided under such request for an activity are offset
by reductions in expenditures for another activity.’’.
(2) CONFORMING AMENDMENT.—Section 5 of
D.C. Law 3–100 (sec. 47–364, D.C. Code) is hereby
repealed.
(c) PERMITTING COUNCIL TO REQUEST BUDGET
ADJUSTMENTS FROM MAYOR.—Section 442 of the Dis-
trict of Columbia Self-Government and Governmental Re-
organization Act (sec. 47–301, D.C. Code) is amended by
adding at the end the following new subsection:
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Title III
‘‘(d) The Mayor shall prepare and submit to the
Council a proposed supplemental or deficiency budget rec-
ommendation under subsection (c) if the Council by reso-
lution requests the Mayor to submit such a recommenda-
tion.’’.
(d) REQUIRING BUDGETARY IMPACT STATEMENTS
TO ACCOMPANY ACTS OF COUNCIL.—
(1) IN GENERAL.—Section 602(c) of the Dis-
trict of Columbia Self-Government and Govern-
mental Reorganization Act (sec. 1–233(c), D.C.
Code) is amended by adding at the end the following
new paragraph:
‘‘(3) The Council shall submit with each Act trans-
mitted under this subsection an estimate of the costs
which will be incurred by the District of Columbia as a
result of the enactment of the Act in each of the first 4
fiscal years for which the Act is in effect, together with
a statement of the basis for such estimate.’’.
(2) EFFECTIVE DATE.—The amendment made
by paragraph (1) shall apply to Acts of the Council
transmitted on or after October 1, 1995.
(e) EXTENSION
OF AUTHORIZATION
OF ANNUAL
FEDERAL PAYMENT.—Section 503(c) of the District of
Columbia Self-Government and Governmental Reorganiza-
tion Act (sec. 47–3406.1(c), D.C. Code), as added by sec-
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Title III
tion 2 of the Federal Payment Reauthorization Act of
1994, is amended by striking ‘‘fiscal year 1996’’ and in-
serting ‘‘each of the fiscal years 1996, 1997, 1998, and
1999’’.
SEC. 302. ESTABLISHMENT OF CHIEF FINANCIAL OFFICER
OF DISTRICT OF COLUMBIA.
(a) IN GENERAL.—Part B of title IV of the District
of Columbia Self-Government and Governmental Reorga-
nization Act is amended by adding at the end the following
new section:
‘‘CHIEF FINANCIAL OFFICER OF THE DISTRICT OF
COLUMBIA
‘‘SEC. 424. (a) ESTABLISHMENT OF OFFICE.—
‘‘(1) IN GENERAL.—There is hereby established
within the executive branch of the government of the
District of Columbia an Office of the Chief Financial
Officer of the District of Columbia (hereafter re-
ferred to as the ‘Office’), which shall be headed by
the Chief Financial Officer of the District of Colum-
bia (hereafter referred to as the ‘Chief Financial
Officer’).
‘‘(2) OFFICE OF THE TREASURER.—The Office
shall include the Office of the Treasurer, which shall
be headed by the Treasurer of the District of Colum-
bia, who shall be appointed by the Chief Financial
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Officer and subject to the Chief Financial Officer’s
direction and control.
‘‘(3) TRANSFER OF OTHER OFFICES.—Effective
with the appointment of the first Chief Financial Of-
ficer under subsection (b), the functions and person-
nel of the following offices are transferred to the
Office:
‘‘(A) The Controller of the District of
Columbia.
‘‘(B) The Office of the Budget.
‘‘(C) The Office of Financial Information
Services.
‘‘(D) The Department of Finance and
Revenue.
‘‘(4) SERVICE OF HEADS OF OTHER OFFICES.—
‘‘(A) 
OFFICE
HEADS
APPOINTED
BY
MAYOR.—With respect to the head of the Office
of the Budget and the head of the Department
of Finance and Revenue—
‘‘(i) the Mayor shall appoint such in-
dividuals with the advice and consent of
the Council, subject to the approval of the
Authority during a control year; and
‘‘(ii) during a control year, the Au-
thority may remove such individuals from
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Title III
office for cause, after consultation with the
Mayor.
‘‘(B) OFFICE HEADS APPOINTED BY CHIEF
FINANCIAL
OFFICER.—With respect to the
Controller of the District of Columbia and the
head of the Office of Financial Information
Services—
‘‘(i) the Chief Financial Officer shall
appoint such individuals subject to the ap-
proval of the Mayor; and
‘‘(ii) the Chief Financial Officer may
remove such individuals from office for
cause, after consultation with the Mayor.
‘‘(b) APPOINTMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) CONTROL
YEAR.—During a control
year, the Chief Financial Officer shall be ap-
pointed by the Mayor as follows:
‘‘(i) Prior to the appointment of the
Chief Financial Officer, the Authority may
submit recommendations for the appoint-
ment to the Mayor.
‘‘(ii) In consultation with the Author-
ity and the Council, the Mayor shall nomi-
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Title III
nate an individual for appointment and no-
tify the Council of the nomination.
‘‘(iii) After the expiration of the 7-day
period which begins on the date the Mayor
notifies the Council of the nomination
under clause (ii), the Mayor shall notify
the Authority of the nomination.
‘‘(iv) The nomination shall be effective
subject to approval by a majority vote of
the Authority.
‘‘(B) OTHER YEARS.—During a year other
than a control year, the Chief Financial Officer
shall be appointed by the Mayor with the advice
and consent of the Council. Prior to appoint-
ment, the Authority may submit recommenda-
tions for the appointment.
‘‘(2) REMOVAL.—
‘‘(A) CONTROL
YEAR.—During a control
year, the Chief Financial Officer may be re-
moved for cause by the Authority or by the
Mayor with the approval of the Authority.
‘‘(B) OTHER YEARS.—During a year other
than a control year, the Chief Financial Officer
shall serve at the pleasure of the Mayor, except
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that the Chief Financial Officer may only be re-
moved for cause.
‘‘(3) SALARY.—The Chief Financial Officer
shall be paid at an annual rate determined by the
Mayor, except that such rate may not exceed the
rate of basic pay payable for level IV of the Execu-
tive Schedule.
‘‘(c) FUNCTIONS DURING CONTROL YEAR.—During
a control year, the Chief Financial Officer shall have the
following duties:
‘‘(1) Preparing the financial plan and budget
for the use of the Mayor for purposes of subtitle A
of title II of the District of Columbia Financial Re-
sponsibility and Management Assistance Act of
1995.
‘‘(2) Preparing the budgets of the District of
Columbia for the year for the use of the Mayor for
purposes of part D.
‘‘(3) Assuring that all financial information pre-
sented by the Mayor is presented in a manner, and
is otherwise consistent with, the requirements of the
District of Columbia Financial Responsibility and
Management Assistance Act of 1995.
‘‘(4) Implementing appropriate procedures and
instituting such programs, systems, and personnel
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Title III
policies within the Officer’s authority, to ensure that
budget, accounting and personnel control systems
and structures are synchronized for budgeting and
control purposes on a continuing basis.
‘‘(5) With the approval of the Authority,
preparing and submitting to the Mayor and the
Council—
‘‘(A) annual estimates of all revenues of
the District of Columbia (without regard to the
source of such revenues), including proposed
revenues, which shall be binding on the Mayor
and the Council for purposes of preparing and
submitting the budget of the District govern-
ment for the year under part D, except that the
Mayor and the Council may prepare the budget
based on estimates of revenues which are lower
than those prepared by the Chief Financial
Officer; and
‘‘(B) quarterly re-estimates of the revenues
of the District of Columbia during the year.
‘‘(6) Supervising and assuming responsibility
for financial transactions to ensure adequate control
of revenues and resources, and to ensure that appro-
priations are not exceeded.
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Title III
‘‘(7) Maintaining systems of accounting and in-
ternal control designed to provide—
‘‘(A) full disclosure of the financial impact
of the activities of the District government;
‘‘(B) adequate financial information need-
ed by the District government for management
purposes;
‘‘(C) effective control over, and account-
ability for, all funds, property, and other assets
of the District of Columbia; and
‘‘(D) reliable accounting results to serve as
the basis for preparing and supporting agency
budget requests and controlling the execution of
the budget.
‘‘(8) Submitting to the Council a financial
statement of the District government, containing
such details and at such times as the Council may
specify.
‘‘(9) Supervising and assuming responsibility
for the assessment of all property subject to assess-
ment and special assessments within the corporate
limits of the District of Columbia for taxation, pre-
paring tax maps, and providing such notice of taxes
and special assessments (as may be required by
law).
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Title III
‘‘(10) Supervising and assuming responsibility
for the levying and collection of all taxes, special as-
sessments, licensing fees, and other revenues of the
District of Columbia (as may be required by law),
and receiving all amounts paid to the District of Co-
lumbia from any source (including the Authority).
‘‘(11) Maintaining custody of all public funds
belonging to or under the control of the District gov-
ernment (or any department or agency of the Dis-
trict government), and depositing all amounts paid
in such depositories and under such terms and con-
ditions as may be designated by the Council or the
Authority.
‘‘(12) Maintaining custody of all investment
and invested funds of the District government or in
possession of the District government in a fiduciary
capacity, and maintaining the safekeeping of all
bonds and notes of the District government and the
receipt and delivery of District government bonds
and notes for transfer, registration, or exchange.
‘‘(13) Apportioning the total of all appropria-
tions and funds made available during the year for
obligation so as to prevent obligation or expenditure
in a manner which would result in a deficiency or a
need for supplemental appropriations during the
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Title III
year, and (with respect to appropriations and funds
available for an indefinite period and all authoriza-
tions to create obligations by contract in advance of
appropriations) apportioning the total of such appro-
priations, funds, or authorizations in the most effec-
tive and economical manner.
‘‘(14) Certifying all contracts (whether directly
or through delegation) prior to execution as to the
availability of funds to meet the obligations expected
to be incurred by the District government under
such contracts during the year.
‘‘(15) Prescribing the forms of receipts, vouch-
ers, bills, and claims to be used by all agencies, of-
fices, and instrumentalities of the District govern-
ment.
‘‘(16) Certifying and approving prior to pay-
ment all bills, invoices, payrolls, and other evidences
of claims, demands, or charges against the District
government, and determining the regularity, legality,
and correctness of such bills, invoices, payrolls,
claims, demands, or charges.
‘‘(17) In coordination with the Inspector Gen-
eral of the District of Columbia, performing internal
audits of accounts and operations and records of the
District government, including the examination of