I
104TH CONGRESS
1ST SESSION
H. R. 1345
To eliminate budget deficits and management inefficiencies in the government
of the District of Columbia through the establishment of the District
of Columbia Financial Responsibility and Management Assistance Au-
thority, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 29, 1995
Mr. DAVIS (for himself, Ms. NORTON, Mr. WALSH, Mr. DIXON, Mr. CLINGER,
Mrs. COLLINS
of Illinois, Mr. MCHUGH, Mr. GUTKNECHT, Mr.
LATOURETTE, Mr. FLANAGAN, Mr. FATTAH, Miss COLLINS of Michigan,
Mr. WOLF, Mr. MORAN, Mrs. MORELLA, and Mr. WYNN) introduced the
following bill; which was referred to the Committee on Government Re-
form and Oversight
A BILL
To eliminate budget deficits and management inefficiencies
in the government of the District of Columbia through
the establishment of the District of Columbia Financial
Responsibility and Management Assistance Authority,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘District of Columbia Financial Responsibility and Man-
agement Assistance Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings; purpose.
TITLE I—ESTABLISHMENT AND ORGANIZATION OF AUTHORITY
Sec. 101. District of Columbia Financial Responsibility and Management As-
sistance Authority.
Sec. 102. Executive director and staff of Authority.
Sec. 103. Powers of Authority.
Sec. 104. Exemption from liability for claims.
Sec. 105. Treatment of actions arising from act.
Sec. 106. Funding for operation of Authority.
Sec. 107. Suspension of activities.
Sec. 108. Application of laws of District of Columbia to Authority.
TITLE II—RESPONSIBILITIES OF AUTHORITY
Subtitle A—Establishment and Enforcement of Financial Plan
and Budget for District Government
Sec. 201. Development of financial plan and budget for District of Columbia.
Sec. 202. Process for submission and approval of financial plan and annual
District budget.
Sec. 203. Review of activities of District government to ensure compliance with
approved financial plan and budget.
Sec. 204. Restrictions on borrowing by District during control year.
‘‘Sec. 601. Transitional provision for short-term advances.
‘‘Sec. 602. Short-term advances for seasonal cash-flow management.
‘‘Sec. 603. Security for advances.
‘‘Sec. 604. Reimbursement to the Treasury.
‘‘Sec. 605. Definitions.
Sec. 205. Deposit of annual Federal payment with Authority.
Sec. 206. Effect of finding of non-compliance with financial plan and budget.
Sec. 207. Recommendations on financial stability and management responsibil-
ity.
Sec. 208. Special rules for fiscal year 1996.
Sec. 209. Control periods described.
Subtitle B—Issuance of Bonds
Sec. 211. Authority to issue bonds.
Sec. 212. Pledge of security interest in revenues of district government.
Sec. 213. Establishment of debt service reserve fund.
Sec. 214. Other requirements for issuance of bonds.
Sec. 215. No full faith and credit of the United States.
Subtitle C—Other Duties of Authority
Sec. 221. Duties of Authority during year other than control year.
Sec. 222. General assistance in achieving financial stability and management
efficiency.
Sec. 223. Obtaining reports.
Sec. 224. Reports and comments.
TITLE III—MISCELLANEOUS PROVISIONS
Sec. 301. Other District budget reforms.
Sec. 302. Establishment of Chief Financial Officer of District of Columbia.
Sec. 303. Revisions to powers and duties of Inspector General of District of Co-
lumbia.
Sec. 304. Council approval of certain contracts.
Sec. 305. Definitions.
SEC. 2. FINDINGS; PURPOSE.
(a) FINDINGS.—Congress finds the following:
(1) A combination of accumulated operating
deficits, cash shortages, management inefficiencies,
and deficit spending in the current fiscal year have
created a fiscal emergency in the District of Colum-
bia.
(2) As a result of its current financial problems
and management inefficiencies, the District of Co-
lumbia government fails to provide its citizens with
effective and efficient services in areas such as edu-
cation, health care, crime prevention, trash collec-
tion, drug abuse treatment and prevention, human
services delivery, and the supervision and training of
government personnel.
(3) The current financial and management
problems of the District government have already
adversely affected the long-term economic health of
the District of Columbia by causing the migration of
residents and business out of the District of Colum-
bia and the failure of new residents and businesses
to move to the District of Columbia.
(4) The fiscal and management problems in the
District of Columbia government are pervasive
across all segments of the government.
(5) A comprehensive approach to fiscal, man-
agement, and structural problems must be under-
taken which exempts no part of the District govern-
ment and which preserves home rule for the citizens
of the District of Columbia.
(6) The current deficit of the District of Colum-
bia must be resolved over a multi-year period, since
it cannot be effectively addressed in a single year.
(7) The ability of the District government to
obtain funds from capital markets in the future will
be severely diminished without Congressional action
to restore its financial stability.
(8) The failure to improve the financial situa-
tion of the District government will adversely affect
the long-term economic health of the entire National
Capital region.
(9) The efficient operation of the Federal Gov-
ernment may be adversely affected by the current
problems of the District of Columbia not only
through the services the District government pro-
vides directly to the Federal Government but
through services provided indirectly such as street
and traffic flow maintenance, public safety, and
services affecting tourism.
(b) PURPOSE.—The purposes of this Act are as
follows:
(1) To eliminate budget deficits and cash short-
ages of the District of Columbia through visionary
financial planning, sound budgeting, accurate reve-
nue forecasts, and careful spending.
(2) To ensure the most efficient and effective
delivery of services, including public safety services,
by the District government during a period of fiscal
emergency.
(3) To conduct necessary investigations and
studies to determine the fiscal status and oper-
ational efficiency of the District government.
(4) To assist the District government in—
(A) restructuring its organization and
workforce to ensure that the residents of the
District of Columbia are served by a local gov-
ernment that is efficient and effective;
(B) achieving an appropriate relationship
with the Federal Government;
(C) ensuring the appropriate and efficient
delivery of services; and
(D) modernizing its budget, accounting,
personnel, procurement, information technology,
and management systems to ensure the maxi-
mum financial and performance accountability
of the District government and its officers and
employees.
(5) To enhance the District government’s ac-
cess to the capital markets and to ensure the contin-
ued orderly payment of its debt service obligations.
(6) To ensure the long-term financial, fiscal,
and economic vitality and operational efficiency of
the District of Columbia.
(7) To examine the programmatic and struc-
tural relationship between the District government
and the Federal Government.
(8) To provide for the review of the financial
impact of activities of the District government before
such activities are implemented or submitted for
Congressional review.
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(c) RULES OF CONSTRUCTION.—Nothing in this Act
may be construed—
(1) to relieve any obligations existing as of the
date of the enactment of this Act of the District gov-
ernment to repay any individual or entity from
whom the District has borrowed funds, whether
through the issuance of bonds or otherwise; or
(2) to limit the authority of Congress to exer-
cise ultimate legislative authority over the District of
Columbia pursuant to Article I, section 8, clause 17
of the Constitution of the United States.
TITLE I—ESTABLISHMENT AND
ORGANIZATION OF AUTHORITY
SEC. 101. DISTRICT OF COLUMBIA FINANCIAL RESPON-
SIBILITY AND MANAGEMENT ASSISTANCE AU-
THORITY.
(a) ESTABLISHMENT.—Pursuant to Article I, section
8, clause 17 of the Constitution of the United States, there
is hereby established the District of Columbia Financial
Responsibility and Management Assistance Authority,
consisting of members appointed by the President in ac-
cordance with subsection (b). Subject to the conditions de-
scribed in section 108 and except as otherwise provided
in this Act, the Authority is established as an entity within
the government of the District of Columbia, and is not
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established as a department, agency, establishment, or in-
strumentality of the United States Government.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Authority shall consist
of 5 members appointed by the President who meet
the qualifications described in subsection (c), except
that the Authority may take any action under this
Act (or any amendments made by this Act) at any
time after the President has appointed 3 of its mem-
bers.
(2) CONSULTATION
WITH
CONGRESS.—The
President shall appoint the members of the Author-
ity after consulting with the Chair of the Committee
on Appropriations and the Chair of the Committee
on Government Reform and Oversight of the House
of Representatives, the Chair of the Committee on
Appropriations and the Chair of the Committee on
Governmental Affairs of the Senate, and the Dele-
gate to the House of Representatives from the Dis-
trict of Columbia.
(3) CHAIR.—The President shall designate one
of the members of the Authority as the Chair of the
Authority.
(4) SENSE
OF
CONGRESS
REGARDING
DEAD-
LINE FOR APPOINTMENT.—It is the sense of Con-
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gress that the President should appoint the members
of the Authority as soon as practicable after the
date of the enactment of this Act, but in no event
later than 25 days after the date of the enactment
of this Act.
(5) TERM OF SERVICE.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), each member of the Author-
ity shall be appointed for a term of 3 years.
(B) APPOINTMENT FOR TERM FOLLOWING
INITIAL TERM.—As designated by the President
at the time of appointment for the term imme-
diately following the initial term, of the mem-
bers appointed for the term immediately follow-
ing the initial term—
(i) 1 member shall be appointed for a
term of 1 year;
(ii) 2 members shall be appointed for
a term of 2 years; and
(iii) 2 members shall be appointed for
a term of 3 years.
(C) REMOVAL.—The President may re-
move any member of the Authority only for
cause.
Title I
(c) QUALIFICATIONS FOR MEMBERSHIP.—An indi-
vidual meets the qualifications for membership on the Au-
thority if the individual—
(1) has knowledge and expertise in finance,
management, and the organization or operation of
business or government;
(2) does not provide goods or services to the
District government (and is not the spouse, parent,
child, or sibling of an individual who provides goods
and services to the District government);
(3) is not an officer or employee of the District
government; and
(4) during the most recent taxable year prior to
appointment, paid personal income or business taxes
to the District government.
(d) NO COMPENSATION FOR SERVICE.—Members of
the Authority shall serve without pay, but may receive re-
imbursement for any reasonable and necessary expenses
incurred by reason of service on the Authority.
(e) ADOPTION OF BY-LAWS FOR CONDUCTING BUSI-
NESS OF AUTHORITY.—
(1) IN GENERAL.—As soon as practicable after
the appointment of its members, the Authority shall
adopt by-laws, rules, and procedures governing its
activities under this Act, including procedures for
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hiring experts and consultants. Such by-laws, rules,
and procedures shall be public documents, and shall
be submitted by the Authority upon adoption to the
Mayor, the Council, the President, and Congress.
(2) CERTAIN ACTIVITIES REQUIRING APPROVAL
OF
MAJORITY
OF
MEMBERS.—Under the by-laws
adopted pursuant to paragraph (1), the Authority
may conduct its operations under such procedures as
it considers appropriate, except that an affirmative
vote of a majority of the members the Authority
shall be required in order for the Authority to—
(A) approve or disapprove a financial plan
and budget under subtitle A of title II;
(B) implement recommendations on finan-
cial stability and management responsibility
under section 207;
(C) give consent to the appointment of the
Chief Financial Officer of the District of Co-
lumbia under section 424 of the District of Co-
lumbia Self-Government and Governmental Re-
organization Act (as added by section 302); and
(D) give consent to the appointment of the
Inspector General of the District of Columbia
under section 208(a) of the District of Colum-
Title I
bia Procurement Practices Act of 1985 (as
amended by section 303(a)).
(3) ADOPTION OF RULES AND REGULATIONS OF
DISTRICT OF COLUMBIA.—The Authority may incor-
porate in its by-laws, rules, and procedures under
this subsection such rules and regulations of the
District government as it considers appropriate to
enable it to carry out its activities under this Act
with the greatest degree of independence practicable.
SEC. 102. EXECUTIVE DIRECTOR AND STAFF OF AUTHOR-
ITY.
(a) EXECUTIVE DIRECTOR.—The Authority shall
have an Executive Director who shall be appointed by the
Chair with the consent of the Authority. The Executive
Director shall be paid at a rate determined by the Author-
ity, except that such rate may not exceed the rate of basic
pay payable for level IV of the Executive Schedule.
(b) STAFF.—With the approval of the Chair, the Ex-
ecutive Director may appoint and fix the pay of additional
personnel as the Executive Director considers appropriate,
except that no individual appointed by the Executive Di-
rector may be paid at a rate greater than the rate of pay
for the Executive Director.
(c) INAPPLICABILITY OF CERTAIN CIVIL SERVICE
LAWS.—The Executive Director and staff of the Authority
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may be appointed without regard to the provisions of title
5, United States Code, governing appointments in the
competitive service, and may be paid without regard to
the provisions of chapter 51 and subchapter III of chapter
53 of that title relating to classification and General
Schedule pay rates.
(d) STAFF OF FEDERAL AGENCIES.—Upon request
of the Chair, the head of any Federal department or agen-
cy may detail, on a reimbursable or non-reimbursable
basis, any of the personnel of that department or agency
to the Authority to assist it in carrying out its duties
under this Act.
(e) PRESERVATION OF RETIREMENT AND CERTAIN
OTHER RIGHTS OF FEDERAL EMPLOYEES WHO BECOME
EMPLOYED BY THE AUTHORITY.—
(1) IN
GENERAL.—A Federal employee who,
within 2 months after separating from the Federal
Government, becomes employed by the Authority—
(A) may elect, for purposes of the retire-
ment system in which that individual last par-
ticipated before so separating, to have such in-
dividual’s period of service with the Authority
treated in the same way as if performed in the
position within the Federal Government from
which separated, subject to the requisite em-
Title I
ployee deductions and agency contributions
being currently deposited in the appropriate
fund; and
(B) if, after serving with the Authority,
such employee becomes reemployed by the Fed-
eral Government, shall be entitled to credit, for
the full period of such individual’s service with
the Authority, for purposes of determining the
applicable leave accrual rate.
(2) RETIREMENT.—
(A) CONTRIBUTIONS.—For purposes of
subparagraph (A) of paragraph (1)—
(i) the employee deductions referred
to in such paragraph shall be made from
basic pay for service with the Authority,
and shall be computed using the same per-
centage as would then apply if the individ-
ual were instead serving in the position
within the Federal Government from which
separated; and
(ii) the agency contributions referred
to in such paragraph shall be made by the
Authority.
(B) 
DOUBLE
COVERAGE
NOT
PER-
MITTED.—An individual who makes an election
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under paragraph (1)(A) shall be ineligible, while
such election remains in effect, to participate in
any retirement system for employees of the gov-
ernment of the District of Columbia.
(3) REGULATIONS.—The Office of Personnel
Management shall prescribe such regulations as may
be necessary to carry out this subsection. Regula-
tions to carry out paragraph (1)(A) shall be pre-
scribed in consultation with the office or agency of
the government of the District of Columbia having
jurisdiction over any retirement system referred to
in paragraph (2)(B).
SEC. 103. POWERS OF AUTHORITY.
(a) HEARINGS AND SESSIONS.—The Authority may,
for the purpose of carrying out this Act, hold hearings,
sit and act at times and places, take testimony, and re-
ceive evidence as the Authority considers appropriate. The
Authority may administer oaths or affirmations to wit-
nesses appearing before it.
(b) POWERS OF MEMBERS AND AGENTS.—Any mem-
ber or agent of the Authority may, if authorized by the
Authority, take any action which the Authority is author-
ized to take by this section.
(c) OBTAINING OFFICIAL DATA.—
Title I
(1) FROM
FEDERAL
GOVERNMENT.—Notwith-
standing sections 552 (commonly known as the
Freedom of Information Act) and 552b (the Govern-
ment in the Sunshine Act) of title 5, United States
Code, the Authority may secure directly from any
department or agency of the United States informa-
tion necessary to enable it to carry out this Act,
with the approval of the head of that department or
agency.
(2) FROM
DISTRICT
GOVERNMENT.—Notwith-
standing any other provision of law, the Authority
shall have the right to secure copies of such records,
documents, information, or data from any entity of
the District government necessary to enable the Au-
thority to carry out its responsibilities under this
Act. At the request of the Authority, the Authority
shall be granted direct access to such information
systems, records, documents or information or data
as will enable the Authority to carry out its respon-
sibilities under this Act. The head of the entity of
the District government responsible shall provide the
Authority with such information and assistance (in-
cluding granting the Authority direct access to auto-
mated or other information systems) as the Author-
ity requires under this paragraph.
Title I
(d) GIFTS, BEQUESTS, AND DEVISES.—The Author-
ity may accept, use, and dispose of gifts, bequests, or de-
vises of services or property, both real and personal, for
the purpose of aiding or facilitating the work of the Au-
thority. Gifts, bequests, or devises of money and proceeds
from sales of other property received as gifts, bequests,
or devises shall be deposited in such account as the Au-
thority may establish and shall be available for disburse-
ment upon order of the Chair.
(e) SUBPOENA POWER.—
(1) IN
GENERAL.—The Authority may issue
subpoenas requiring the attendance and testimony of
witnesses and the production of any evidence relat-
ing to any matter under investigation by the Author-
ity. The attendance of witnesses and the production
of evidence may be required from any place within
the United States at any designated place of hearing
within the United States.
(2) FAILURE TO OBEY A SUBPOENA.—If a per-
son refuses to obey a subpoena issued under para-
graph (1), the Authority may apply to a United
States district court for an order requiring that per-
son to appear before the Authority to give testimony,
produce evidence, or both, relating to the matter
under investigation. The application may be made
Title I
within the judicial district where the hearing is con-
ducted or where that person is found, resides, or
transacts business. Any failure to obey the order of
the court may be punished by the court as civil
contempt.
(3) SERVICE OF SUBPOENAS.—The subpoenas
of the Authority shall be served in the manner pro-
vided for subpoenas issued by United States district
court under the Federal Rules of Civil Procedure for
the United States district courts.
(4) SERVICE OF PROCESS.—All process of any
court to which application is be made under para-
graph (2) may be served in the judicial district in
which the person required to be served resides or
may be found.
(f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the
request of the Authority, the Administrator of General
Services may provide to the Authority, on a reimbursable
basis, the administrative support services necessary for the
Authority to carry out its responsibilities under this Act.
(g) AUTHORITY TO ENTER INTO CONTRACTS.—The
Executive Director may enter into such contracts as the
Executive Director considers appropriate (subject to the
approval of the Chair) to carry out the Authority’s respon-
sibilities under this Act.
Title I
(h) CIVIL ACTIONS TO ENFORCE POWERS.—The Au-
thority may seek judicial enforcement of its authority to
carry out its responsibilities under this Act.
(i) PENALTIES.—
(1) ACTS
PROHIBITED.—Any officer or em-
ployee of the District government who—
(A) takes any action in violation of any
valid order of the Authority or fails or refuses
to take any action required by any such order;
or
(B) prepares, presents, or certifies any in-
formation (including any projections or esti-
mates) or report for the Board or any of its
agents that is false or misleading, or, upon
learning that any such information is false or
misleading, fails to immediately advise the
Board or its agents thereof in writing,
shall be guilty of a misdemeanor.
(2) ADMINISTRATIVE DISCIPLINE.—In addition
to any other applicable penalty, any officer or em-
ployee of the District government who knowingly
and willfully violates paragraph (1) shall be subject
to appropriate administrative discipline, including
(when appropriate) suspension from duty without
Title I
pay or removal from office by order of either the
Mayor or Authority.
(3) REPORT BY MAYOR ON DISCIPLINARY AC-
TIONS TAKEN.—In the case of a violation of para-
graph (1) by an officer or employee of the District
government, the Mayor shall immediately report to
the Board all pertinent facts together with a state-
ment of the action taken thereon.
SEC. 104. EXEMPTION FROM LIABILITY FOR CLAIMS.
The Authority and its members may not be liable for
any obligation of or claim against the District of Columbia
resulting from actions taken to carry out this Act.
SEC. 105. TREATMENT OF ACTIONS ARISING FROM ACT.
(a) JURISDICTION
ESTABLISHED
IN
DISTRICT
COURT FOR DISTRICT OF COLUMBIA.—Except as pro-
vided in section 103(e)(2) (relating to the issuance of an
order enforcing a subpoena), any action against the Au-
thority or any action otherwise arising out of this Act, in
whole or in part, shall be brought in the United States
District Court for the District of Columbia.
(b) PROMPT APPEAL.—
(1) COURT OF APPEALS.—Notwithstanding any
other provision of law, any order of the United
States District Court for the District of Columbia
which is issued pursuant to an action brought under