I
107TH CONGRESS
1ST SESSION
H. R. 2995
To make technical and conforming changes to provide for the enactment
of the Independence of the Chief Financial Officer Establishment Act
of 2001, to establish a reporting event notification system to assist
Congress and the District of Columbia in maintaining the financial
stability of the District government and avoiding the initiation of a
control period, to provide the District of Columbia with autonomy over
its budgets, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 2, 2001
Mrs. MORELLA (for herself, Ms. NORTON, Ms. WATSON of California, and Mr.
FATTAH) introduced the following bill; which was referred to the Com-
mittee on Government Reform
A BILL
To make technical and conforming changes to provide for
the enactment of the Independence of the Chief Financial
Officer Establishment Act of 2001, to establish a report-
ing event notification system to assist Congress and the
District of Columbia in maintaining the financial stability
of the District government and avoiding the initiation
of a control period, to provide the District of Columbia
with autonomy over its budgets, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘District of Columbia Fiscal Integrity Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—CHIEF FINANCIAL OFFICER OF THE DISTRICT OF
COLUMBIA
Sec. 101. Technical and conforming changes providing for enactment of Inde-
pendence of the Chief Financial Officer Establishment Act of
2001.
Sec. 102. Special interim rule regarding personnel authority.
Sec. 103. Special interim rule regarding procurement authority.
Sec. 104. Special interim rule regarding preparation and submission of budget
for Chief Financial Officer and Inspector General.
Sec. 105. Effective date.
TITLE II—COUNCIL OF THE DISTRICT OF COLUMBIA
Sec. 201. Procedures for reprogramming of amounts during non-control years.
Sec. 202. Repeal of requirement for Council approval of contracts exceeding
$1,000,000 during one-year period.
TITLE III—REPORTING EVENT NOTIFICATION SYSTEM
Sec. 301. Reporting event notification system.
TITLE IV—DISTRICT OF COLUMBIA BUDGET AUTONOMY
Sec. 401. Enactment of District of Columbia budget without further Congres-
sional approval.
Sec. 402. Action by Council of District of Columbia on budget acts.
Sec. 403. Permitting employees to be hired if position authorized by act of the
Council.
Sec. 404. Amendments to limitations on borrowing and spending by the District
to reflect changes in budget process.
Sec. 405. Effective date.
TITLE I—CHIEF FINANCIAL OF-
FICER OF THE DISTRICT OF
COLUMBIA
SEC. 101. TECHNICAL AND CONFORMING CHANGES PRO-
VIDING FOR ENACTMENT OF INDEPENDENCE
OF THE CHIEF FINANCIAL OFFICER ESTAB-
LISHMENT ACT OF 2001.
(a) IN GENERAL.—Part B of title IV of the District
of Columbia Home Rule Act is amended by striking sec-
tion 424 (sec. 1–204.24a et seq., D.C. Official Code).
(b) CLARIFICATION OF DUTIES OF CHIEF FINANCIAL
OFFICER AND MAYOR.—
(1) RELATION
TO
FINANCIAL
DUTIES
OF
MAYOR.—Section 448(a) of such Act (sec. 1–
204.48(a), D.C. Official Code) is amended by strik-
ing ‘‘section 603,’’ and inserting ‘‘section 603 and
except to the extent provided under section 6 of the
Independence of the Chief Financial Officer Estab-
lishment Act of 2001,’’.
(2) RELATION TO MAYOR’S DUTIES REGARDING
ACCOUNTING SUPERVISION AND CONTROL.—Section
449 of such Act (sec. 1–204.49, D.C. Official Code)
is amended by striking ‘‘The Mayor’’ and inserting
‘‘Except to the extent provided under section 6 of
the Independence of the Chief Financial Officer Es-
tablishment Act of 2001, the Mayor’’.
(c) CONFORMING AMENDMENT.—Section 422(6) of
such Act (sec. 1–204.22(6), D.C. Official Code) is amend-
ed by striking the second sentence.
(d) CLERICAL AMENDMENT.—The table of contents
for the District of Columbia Home Rule Act is amended
by striking the item relating to section 424.
SEC. 102. SPECIAL INTERIM RULE REGARDING PERSONNEL
AUTHORITY.
(a) AUTHORITY OVER PERSONNEL OF OFFICE AND
OTHER FINANCIAL PERSONNEL.—
(1) IN GENERAL.—Notwithstanding any provi-
sion of the Independence of the Chief Financial Offi-
cer Establishment Act of 2001 or any other provi-
sion of law or regulation (including any law or regu-
lation providing for collective bargaining or the en-
forcement of any collective bargaining agreement),
during the period of applicability referred to in sub-
section (b) the following personnel shall be appointed
by, shall serve at the pleasure of, and shall act
under the direction and control of the Chief Finan-
cial Officer of the District of Columbia, and shall be
considered at-will employees not covered by the Dis-
trict of Columbia Government Comprehensive Merit
Personnel Act of 1978:
(A) The counsel to the Office of the Chief
Financial Officer of the District of Columbia
and other attorneys employed by the Office.
(B) Personnel of the Office not described
in subparagraph (A).
(C) The heads and all personnel of the of-
fices described in paragraph (2), together with
all other District of Columbia accounting, budg-
et, and financial management personnel (includ-
ing personnel of independent agencies but not
including personnel of the legislative or judicial
branches of the District government).
(2) OFFICES DESCRIBED.—The offices referred
to in this subparagraph are as follows:
(A) The Office of the Treasurer (or any
successor office).
(B) The Controller of the District of Co-
lumbia (or any successor office).
(C) The Office of the Budget (or any suc-
cessor office).
(D) The Office of Financial Information
Services (or any successor office).
(E) The Department of Finance and Rev-
enue (or any successor office).
(F) The District of Columbia Lottery and
Charitable Games Control Board.
(b) PERIOD OF APPLICABILITY.—The period of appli-
cability referred to in this subsection is the 2-year period
which begins on the effective date described in section 105.
SEC. 103. SPECIAL INTERIM RULE REGARDING PROCURE-
MENT AUTHORITY.
(a) EXCLUSION FROM PROCUREMENT CONTRACTING
AUTHORITY OF MAYOR.—Notwithstanding any provision
of the Independence of the Chief Financial Officer Estab-
lishment Act of 2001 or any other provision of law, during
the period of applicability described in subsection (b)—
(1) the Mayor of the District of Columbia may
not enter into any contract, or issue any order, rule,
or regulation, with respect to the procurement of
goods and services by or on behalf of the Chief Fi-
nancial Officer of the District of Columbia;
(2) the Chief Financial Officer may waive the
application of any provision of the District of Co-
lumbia Procurement Practices Act of 1986 with re-
spect to any contract entered into by the Chief Fi-
nancial Officer for the procurement of goods and
(2) SUBMISSION TO COUNCIL.—In addition to
the items relating to the Office of the Chief Finan-
cial Officer and the Office of the Inspector General
which are included in the annual budget submitted
by the Mayor to the Council of the District of Co-
lumbia under section 442 of the District of Colum-
bia Home Rule Act, the Mayor shall forward to the
Council without revision (at the time the Mayor sub-
mits the budget) the estimates prepared under para-
graph (1).
(3) PROVIDING
INDEPENDENT
INFORMATION
TO COUNCIL.—The Chief Financial Officer and the
Inspector General may provide independent testi-
mony and other information to the Council regard-
ing the estimates forwarded under paragraph (2).
(b) PERIOD OF APPLICABILITY.—This section shall
apply with respect to the first 2 fiscal years which begin
after the effective date described in section 105.
SEC. 105. EFFECTIVE DATE.
Except as otherwise provided, this title and the
amendments made by this title shall take effect upon the
approval by the Mayor of the District of Columbia of the
Independence of the Chief Financial Officer Establish-
ment Act of 2001 (or, in the event of a veto of such Act
by the Mayor, upon action by the Council of the District
of Columbia to override the veto).
TITLE II—COUNCIL OF THE
DISTRICT OF COLUMBIA
SEC. 
201. 
PROCEDURES 
FOR 
REPROGRAMMING 
OF
AMOUNTS DURING NON-CONTROL YEARS.
(a) IN GENERAL.—Subpart 1 of part D of title IV
of the District of Columbia Home Rule Act is amended
by inserting after section 446 the following new section:
‘‘REPROGRAMMING OF AMOUNTS IN BUDGET AFTER
ADOPTION
‘‘SEC. 446A. (a) YEARS OTHER THAN CONTROL
YEARS.—
‘‘(1) IN GENERAL.—After the adoption of the
annual budget for a fiscal year which is not a con-
trol year, no reprogramming of amounts in the
budget may occur unless—
‘‘(A) the Mayor submits a request for such
reprogramming to the Chief Financial Officer
of the District of Columbia;
‘‘(B) the Chief Financial Officer transmits
to the Council a statement approving the re-
quest and containing an analysis of the effect of
the proposed reprogramming on the financial
plan and budget for the fiscal year; and
‘‘(C) the Council approves the request
after receiving the statement described in sub-
paragraph (B) from the Chief Financial Officer.
‘‘(2) DEEMED
APPROVAL
BY
CFO
AFTER
DAYS.—If the Chief Financial Officer does not
transmit to the Council a statement described in
paragraph (1)(B) (or a statement disapproving the
request for reprogramming) during the 10-day pe-
riod which begins on the date the Chief Financial
Officer receives the request for reprogramming from
the Mayor, the Chief Financial Officer shall be
deemed to have approved the request and to have
transmitted a statement approving the request to
the Council.
‘‘(b) CONTROL YEARS.—After the adoption of the an-
nual budget for a fiscal year which is a control year (be-
ginning with the annual budget for fiscal year 1995), no
reprogramming of amounts in the budget may occur un-
less the Mayor submits to the Council a request for such
reprogramming and the Council approves the request, but
only if any additional expenditures provided under such
request for an activity are offset by reductions in expendi-
tures for another activity.
‘‘(c) CONTROL YEAR DEFINED.—In this section, the
term ‘control year’ has the meaning given such term in
section 305(4) of the District of Columbia Financial Re-
sponsibility and Management Assistance Act of 1995.’’.
(b) CONFORMING
AMENDMENT.—Section 446 of
such Act (sec. 1–204.46, D.C. Official Code) is amended
by striking the last sentence.
(c) CLERICAL AMENDMENT.—The table of sections
for subpart 1 of part D of title IV of the District of Co-
lumbia Home Rule Act is amended by inserting after the
item relating to section 446 the following new item:
‘‘Sec. 446A. Reprogramming of amounts in budget after adoption.’’.
SEC. 202. REPEAL OF REQUIREMENT FOR COUNCIL AP-
PROVAL 
OF 
CONTRACTS 
EXCEEDING
$1,000,000 DURING ONE-YEAR PERIOD.
Section 451 of the District of Columbia Home Rule
Act (sec. 1–204.51, D.C. Official Code) is amended—
(1) by striking subsection (b); and
(2) by redesignating subsections (c) and (d) as
subsections (b) and (c).
TITLE III—REPORTING EVENT
NOTIFICATION SYSTEM
SEC. 301. REPORTING EVENT NOTIFICATION SYSTEM.
(a) IN GENERAL.—Subtitle A of title II of the Dis-
trict of Columbia Financial Responsibility and Manage-
ment Assistance Act of 1995 (sec. 47–392.01 et seq., D.C.
Official Code) is amended by adding at the end the fol-
lowing new section:
‘‘SEC. 210. REPORTING EVENT NOTIFICATION SYSTEM.
‘‘(a) ESTABLISHMENT OF SYSTEM.—
‘‘(1) IN
GENERAL.—Not later than 30 days
after the date of the enactment of the District of
Columbia Fiscal Integrity Act of 2001, the Chief Fi-
nancial Officer of the District of Columbia shall de-
velop a reporting event notification system under
which the Chief Financial Officer shall, on an ongo-
ing basis—
‘‘(A) monitor the financial performance of
the District government, economic trends in the
Washington metropolitan area, and other fac-
tors affecting the financial stability of the Dis-
trict of Columbia;
‘‘(B) on the basis of such factors, deter-
mine whether an event is likely to occur which
will result in the initiation of a control period
(as provided in section 209(a)) if the District of
Columbia does not take prompt and sufficient
steps to respond to the event; and
‘‘(C) notify the Mayor and Congress upon
making a determination described in subpara-
graph (B).
‘‘(2) CONSULTATION.—The Chief Financial Of-
ficer shall develop the reporting event notification
system. In developing the system, the Chief Finan-
cial Officer shall consult with the Mayor, the Coun-
cil, the Inspector General of the District of Colum-
bia, the Comptroller General, and the Director of
the Office of Management and Budget.
‘‘(3) SUBMISSION TO CONGRESS.—The report-
ing event notification system developed under this
subsection shall take effect upon the expiration of
the 30-day period which begins on the date the Chief
Financial Officer submits a detailed description of
the system to the Committees on Appropriations of
the House of Representatives and Senate, the Com-
mittee on Government Reform of the House of Rep-
resentatives, and the Committee on Governmental
Affairs of the Senate.
‘‘(b) RESPONSE BY MAYOR.—
‘‘(1) IN GENERAL.—If the Mayor receives a no-
tification from the Chief Financial Officer under
subsection (a)(1)(C), the Mayor shall develop an ac-
tion plan to respond to the event which is the sub-
ject of the notification, and shall include in the
plan—
‘‘(A) a description of the event and the
causes of the event;
‘‘(B) an assessment of the risk to the fi-
nancial stability of the District government
caused by the event; and
‘‘(C) a list of actions the District will take
to respond to the event, including—
‘‘(i) who is responsible for each action;
‘‘(ii) the timeframe for each action;
and
‘‘(iii) performance measures to assess
progress with regard to each action.
‘‘(2) DEADLINE.—The Mayor shall develop the
action plan required under paragraph (1) as soon as
practicable after receiving the notification from the
Chief Financial Officer, but in no event later than
15 days after receiving the notification.
‘‘(3) SUBMISSION.—The Mayor shall submit
each action plan developed under this subsection to
the President, the Council, the Committees on Ap-
propriations of the House of Representatives and
Senate, the Committee on Government Reform of
the House of Representatives, and the Committee on
Governmental Affairs of the Senate.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subtitle A of title II of such Act is amended by adding
at the end the following new item:
‘‘Sec. 210. Reporting event notification system.’’.
TITLE IV—DISTRICT OF
COLUMBIA BUDGET AUTONOMY
SEC. 401. ENACTMENT OF DISTRICT OF COLUMBIA BUDGET
WITHOUT 
FURTHER 
CONGRESSIONAL 
AP-
PROVAL.
(a) IN GENERAL.—Section 446 of the District of Co-
lumbia Home Rule Act (sec. 1–204.46, D.C. Official Code)
is amended by striking the third, fourth, and fifth sen-
tences and inserting the following: ‘‘Any such act by the
Council adopting the annual budget or any supplements
thereto shall take effect upon the transmittal of the act
by the Council to the Congress. Except as provided in sec-
tion 445A(b), section 467(d), section 471(c), section
472(d), section 475(e), section 483(d), and subsections
(f), (g), (h)(3), and (i)(3) of section 490, no amount may
be obligated or expended by any officer or employee of the
District of Columbia government unless such amount has
been approved by an act of the Council (and then only
in accordance with such authorization) and a copy of such
act has been transmitted by the Chairman to the Con-
gress.’’.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
412(a) of such Act (sec. 1–204.12(a), D.C. Official Code)
is amended by striking ‘‘(other than an act to which sec-
tion 446 applies)’’.
(2) Section 602(c)(1) of such Act (sec. 1–
206.02(c)(1), D.C. Official Code) is amended in the first
sentence by striking ‘‘section 462(c) and section
472(d)(1)’’ and inserting ‘‘sections 446, 462(c), and
472(d)(1)’’.
(c) CLERICAL AMENDMENTS.—(1) The heading of
section 446 of such Act is amended to read as follows:
‘‘ENACTMENT OF BUDGET BY THE COUNCIL’’
(2) The item relating to section 446 in the table of
contents of such Act is amended to read as follows:
‘‘Sec. 446. Enactment of budget by the Council.’’.
SEC. 402. ACTION BY COUNCIL OF DISTRICT OF COLUMBIA
ON BUDGET ACTS.
Section 404(f) of the District of Columbia Home Rule
Act (sec. 1–204.4(f), D.C. Official Code) is amended by
striking ‘‘transmitted by the Chairman to the President
of the United States’’ both places it appears and inserting
‘‘incorporated in such Act’’.
SEC. 403. PERMITTING EMPLOYEES TO BE HIRED IF POSI-
TION AUTHORIZED BY ACT OF THE COUNCIL.
Section 447 of the District of Columbia Home Rule
Act (sec. 1–204.47, D.C. Official Code) is amended—
(1) by striking ‘‘Act of Congress’’ and inserting
‘‘act of the Council’’ both places it appears; and
(2) by striking ‘‘Acts of Congress’’ and insert-
ing ‘‘acts of the Council’’.
SEC. 404. AMENDMENTS TO LIMITATIONS ON BORROWING
AND SPENDING BY THE DISTRICT TO RE-
FLECT CHANGES IN BUDGET PROCESS.
(a) FEDERAL AUTHORITY OVER BUDGET-MAKING
PROCESS.—Section 603 of the District of Columbia Home
Rule Act (sec. 1–206.03, D.C. Official Code) is
amended—
(1) by striking subsections (a) and (d); and
(2) by redesignating subsections (b), (c), and
(e) as subsections (a), (b), and (c).
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
443(8) of such Act (sec. 1–204.43(8), D.C. Official Code)
is amended by striking ‘‘section 603(b)’’ and inserting
‘‘section 603(a)’’.
(2) Section 445 of such Act (sec. 1–204.46, D.C. Of-
ficial Code) is amended by striking ‘‘603(c)’’ and inserting
‘‘603(b)’’.
(3) Section 445A of such Act (sec. 1–204.45a, D.C.
Official Code) is amended by striking ‘‘603(c)’’ and insert-
ing ‘‘603(b)’’.
(4) Section 461(a)(1) of such Act (sec. 1–
204.61(a)(1), D.C. Official Code) is amended by striking
‘‘section 603(b)’’ and inserting ‘‘section 603(a)’’.
(5) Section 475(b) of such Act (sec. 1–204.75(b),
D.C. Official Code) is amended by striking ‘‘section
603(b)’’ and inserting ‘‘section 603(a)’’.
(6) Section 487(a) of such Act (sec. 1–204.87(a),
D.C. Official Code) is amended by striking ‘‘section
603(b)’’ and inserting ‘‘section 603(a)’’.
(7) Section 490(i) of such Act (sec. 1–204.90(i), D.C.
Official Code) is amended by striking ‘‘section 603(b)’’
and inserting ‘‘section 603(a)’’.
SEC. 405. EFFECTIVE DATE.
The amendments made by this title shall apply to
budgets of the District of Columbia for fiscal years begin-
ning on or after October 1, 2003.
Æ