104TH CONGRESS
1ST SESSION
H. R. 1345
AN ACT
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.
(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