District of Columbia Financial Responsibility and Management Assistance Act of 1995
PL 104-8 (H.R.1345), enacted 04/17/1995

PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 97 
Public Law 104^8 
104th Congress 
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 
Apr. 17, 1995 
Financial Responsibility and Management Assistance Authority, and for other 
[HR 1345] 
purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled. 
District of 
Columbia 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
Financial 
(a) SHORT TITLE.—This Act may be cited as the "District of 
^ d C S e n t 
Columbia Financial Responsibility and Management Assistance Act Assistance Act of 
of 1995". 
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 Coliunbia Financial Responsibility and Management Assist-
ance Authority. 
Sec. 102. Executive director and staff of Authority. 
Sec. 103. Powers of Authority. 
Sec. 104. Exemption from liabiUty 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 ensxu"e compliance with ap-
proved 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 responsibility. 
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 
109 STAT. 98 
PUBLIC LAW 104^-8—APR. 17, 1995 
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 effi-
ciency. 
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 Colum-
bia. 
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 Columbia. 
(2) As a result of its current financial problems and 
management inefficiencies, the District of Columbia govern-
ment fails to provide its citizens with effective and efficient 
services in areas such as education, health care, crime preven-
tion, trash collection, 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 caus-
ing the migration of residents and businesses out of the District 
of Columbia 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, management, and 
structural problems must be undertaken which exempts no 
part of the District government and which preserves home 
rule for the citizens of the District of Columbia. 
(6) The current deficit of the District of Columbia must 
be resolved over a multi-year period, since it cannot be effec-
tively 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 situation of the 
District government will adversely affiect the long-term eco-
nomic health of the entire National Capital region. 
(9) The efficient operation of the Federal Government may 
be adversely affected by the current problems of the District 
of Columbia not only through the services the District govern-
ment provides 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: 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 99 
(1) To eliminate budget deficits and cash shortages of the 
District of Columbia through visionary financial planning, 
sound budgeting, accurate revenue forecasts, and careful spend-
ing. 
(2) To ensure the most efficient and effective delivery of 
services, including public safety services, by the District govern-
ment during a period of fiscal emergency. 
(3) To conduct necessary investigations and studies to 
determine the fiscal status and operational 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 government that is efficient and effective; 
(B) achieving an appropriate relationship with the Fed-
eral 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 maximum financial and performance 
accountability of the District government and its officers 
and employees. 
(5) To enhance the District government's access to the 
capital markets and to ensure the continued 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 structural relation-
ship between the District government and the Federal Govern-
ment. 
(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 government to repay 
any individual or entity from whom the District has borrowed 
funds, whether through the issuance of bonds or otherwise; 
(2) to limit the authority of Congress to exercise ultimate 
legislative authority over the District of Columbia pursuant 
to Article I, section 8, clause 17 of the Constitution of the 
United States; 
(3) to amend, supersede, or alter the provisions of title 
11 of the District of Columbia Code, or sections 431 through 
434, 445, and 602(a)(4) of the District of Columbia Self-Govern-
ment and Governmental Reorganization Act (pertaining to the 
organization, powers, and jurisdiction of the District of Colum-
bia courts); or 
(4) to authorize the application of section 103(e) or 303(b)(3) 
of this Act (relating to issuance of subpoenas) to judicial officers 
or employees of the District of Columbia courts. 
109 STAT. 100 
PUBLIC LAW 104-8—APR. 17, 1995 
TITLE I—ESTABLISHMENT AND 
ORGANIZATION OF AUTHORITY 
SEC. 101. DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND 
MANAGEMENT ASSISTANCE AUTHORITY. 
(a) ESTABLISHMENT.—Pursuant to Article I, section 8, clause 
17 of the Constitution of the United States, there is hereby estab-
lished the District of Columbia Financial Responsibility and 
Management Assistance Authority, consisting of members appointed 
by the President in accordance with subsection (b). Subject to the 
conditions described 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 established 
as a department, agency, establishment, or instrumentality 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 
members. 
(2) CONSULTATION WITH CONGRESS.—^The President shall 
appoint the members of the Authority 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 Govern-
mental Affairs of the Senate, and the Delegate to the House 
of Representatives from the District of Columbia. 
(3) CHAIR.—^The President shall designate one of the mem-
bers of the Authority as the Chair of the Authority. 
(4) SENSE OF CONGRESS REGARDING DEADLINE FOR APPOINT-
MENT.—It is the sense of Congress 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 Authority 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 immediately following the initial 
term, of the members appointed for the term immediately 
following 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 remove any member 
of the Authority only for cause. 
infonnation. 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 101 
(c) QUALIFICATIONS FOR MEMBERSHIP.—An individual meets the 
qualifications for membership on the Authority 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 govern-
ment (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 emploj'ee of the District government; 
and 
(4) maintains a primary residence in the District of Colum-
bia or has a primary place of business in the District of Colum-
bia. 
(d) No COMPENSATION FOR SERVICE.—Members of the Authority 
shall serve without pay, but may receive reimbursement for any 
reasonable and necessary expenses incurred by reason of service 
on the Authority. 
(e) 
ADOPTION OF BY-LAWS FOR CONDUCTING BUSINESS OF 
AUTHORITY.— 
(1) IN GENERAL.—AS soon as practicable after the appoint-
ment of its members, the Authority shall adopt by-laws, rules, 
and procedures governing its activities under this Act, including 
procedures for hiring experts and consultants. Such by-laws. Records, 
rules, and procedures shall be public documents, and shall V^^^^ 
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 para-
graph (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 of 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 financial stability 
and management responsibility under section 207; 
(C) give consent to the appointment of the Chief Finan-
cial Officer of the District of Columbia under section 424 
of the District of Columbia Self-Grovernment and Grovern-
mental Reorganization 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 Columbia Procurement Practices Act of 
1985 (as amended by section 303(a)). 
(3) ADOPTION OF RULES AND REGULATIONS OF DISTRICT OF 
COLUMBIA.—^The Authority may incorporate in its by-laws, 
rules, and procedures under this subsection such rules and 
regulations of the District government as it considers appro-
priate 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 AUTHORITY. 
(a) EXECUTIVE DIRECTOR.—The Authority shall have an Execu-
tive 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 Authority, except that such rate may not exceed 
the rate of basic pay payable for level IV of the Executive Schedule. 
109 STAT. 102 
PUBLIC LAW 104-8—APR. 17, 1995 
(b) STAFF.—^With the approval of the Chair, the Executive Direc-
tor may appoint and fix the pay of additional personnel as the 
Executive Director considers appropriate, except that no individual 
appointed by the Executive Director may be paid at a rate greater 
than the rate of pay for the Executive Director. 
(c) INAPPLICABILITY OF CERTAIN EMPLOYMENT AND PROCURE-
MENT LAWS.— 
(1) CIVIL SERVICE LAWS.— The Executive Director and staff 
of the Authority may be appointed without regard to the provi-
sions of title 5, United States Code, governing appointments 
in the competitive service, and 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. 
(2) DISTRICT EMPLOYMENT AND PROCUREMENT LAWS.—The 
Executive Director and staff of the Authority may be appointed 
and paid without regard to the provisions of the District of 
Columbia Code governing appointments and salaries. The provi-
sions of the District of Columbia Code governing procurement 
shall not apply to the Authority. 
(d) STAFF OF FEDERAL AGENCIES.—^Upon request of the Chair, 
the head of any Federal department or agency 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 carrjdng 
out its duties under this Act. 
(e) PRESERVATION OF RETIREMENT AND CERTAIN OTHER RIGHTS 
OF FEDERAL EMPLOYEES WHO BECOME EMPLOYED BY THE AUTHOR-
ITY.— 
(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 retirement system 
in which that individual last participated before so separat-
ing, to have such individual'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 employee 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 Federal 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 percentage as would then apply if the individual 
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 PERMirrED.^An individ-
ual who makes an election under paragraph (1)(A) shall 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 103 
be ineligible, while such election remains in effect, to 
participate in any retirement system for employees of the 
government of the District of Columbia. 
(3) REGULATIONS.—The Office of Personnel Management 
shall prescribe such regulations as may be necessary to carry 
out tWs subsection. Regulations to carry out paragraph (1)(A) 
shall be prescribed in consultation with the office or agency 
of the government of the District of Columbia having jurisdic-
tion over any retirement system referred to in paragraph (2)(B). 
SEC. 103. POWERS OF AUTHORITY. 
(a) HEARINGS AND SESSIONS.—^The Authority may, for the pur-
pose of carrying out this Act, hold hearings, sit and act at times 
and places, take testimony, and receive evidence as the Authority 
considers appropriate. The Authority may administer oaths or 
affirmations to witnesses appearing before it. 
(b) POWERS OF MEMBERS AND AGENTS.—Any member or agent 
of the Authority may, if authorized by the Authority, take any 
action which the Authority is authorized to take by this section. 
(c) OBTAINING OFFICIAL DATA.— 
(1) FROM FEDERAL GOVERNMENT.—^Notwithstanding sec-
tions 552 (commonly known as the Freedom of Information 
Act) and 552b (the Government in the Sunshine Act) of title 
5, United States Code, the Authority may secure directly from 
any department or agency of the United States information 
necessary to enable it to carry out this Act, with the approval 
of the head of that department or agency. 
(2) FROM DISTRICT GOVERNMENT.—^Notwithstanding 
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 Authority 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 responsibilities under this Act. The head of the entity 
of the District government responsible shall provide the Author-
ity with such information and assistance (including granting 
the Authority direct access to automated or other information 
systems) as the Authority requires under this paragraph. 
(d) GIFTS, BEQUESTS, AND DEVISES.—The Authority may accept, 
use, and dispose of gifts, bequests, or devises of services or property, 
both real and personal, for the purpose of aiding or facilitating 
the work of the Authority. 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 Authority 
may establish and shall be available for disbursement 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 relating to any matter under inves-
tigation by the Authority. 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. 
109 STAT. 104 
PUBLIC LAW 104-8—APR. 17, 1995 
(2) FAILURE TO OBEY A SUBPOENA.—If a person refuses 
to obey a subpoena issued under paragraph (1), the Authority 
may apply to a United States district court for an order requir-
ing that person to appear before the Authority to give testi-
mony, produce evidence, or both, relating to the matter under 
investigation. The application may be made within the judicial 
district where the hearing is conducted 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 Author-
ity shall be served in the manner provided 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 made under paragraph (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 sup-
port services necessary for the Authority to carry out its responsibil-
ities 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 responsibilities under this Act. 
(h) CIVIL ACTIONS TO ENFORCE POWERS.—^The Authority may 
seek judicial enforcement of its authority to carry out its responsibil-
ities under this Act. 
(i) PENALTIES.— 
(1) ACTS PROHIBITED.—^Any officer or employee of the Dis-
trict 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 information 
(including any projections or estimates) 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 employee 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 
pay or removal from office by order of either the Mayor or 
Authority. 
(3) REPORT BY MAYOR ON DISCIPLINARY ACTIONS TAKEN.— 
In the case of a violation of paragraph (1) by an officer or 
employee of the District government, the Mayor shall imme-
diately report to the Board all pertinent facts together with 
a statement of the action taken thereon. 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 105 
SEC. 104. EXEMPTION FROM LIABIUTY 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 provided in section 103(e)(2) (relating 
to the issuance of an order enforcing a subpoena), any action against 
the Authority 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 provi-
sion of law, any order of the United States District Court 
for the District of Columbia which is issued pursuant to an 
action brought under subsection (a) shall be reviewable only 
pursuant to a notice of appeal to the United States Court 
of Appeals for the District of Columbia Circuit. 
(2) SUPREME COURT.—^Notwithstanding any other provision 
of law, review by the Supreme Court of the United States 
of a decision of the Court of Appeals which is issued pursuant 
to paragraph (1) may be had only if the petition for such 
review is filed within 10 days after the entry of such decision. 
(c) TIMING OF RELIEF.—^No order of any court granting declara-
tory or injunctive relief against the Authority, including relief 
permitting or requiring the obligation, borrowing, or expenditure 
of funds, shall take effect during the pendency of the action before 
such court, during the time appeal may be taken, or (if appeal 
is taken) during the period before the court has entered its final 
order disposing of such action. 
(d) EXPEDITED CONSIDERATION.—It shall be the duty of the 
United States District Court for the District of Columbia, the United 
States Court of Appeals for the District of Columbia Circuit, and 
the Supreme Court of the United States to advance on the docket 
and to expedite to the greatest possible extent the disposition of 
any matter brought under subsection (a). 
SEC. 
1
0
6
. 
FUNDING 
FOR 
OPERATION 
OF 
AUTHORITY. 
(a) ANNUAL BUDGETING PROCESS.— 
(1) SUBMISSION OF BUDGET,—^The Authority shall submit 
a proposed budget for each fiscal year to the President for 
inclusion in the annual budget for the District of Columbia 
under part D of title IV of the District of Columbia Self-
Govemment and Governmental Reorganization Act not later 
than the May 1 prior to the first day of the fiscal year. In 
the case of the budget for fiscal year 1996, the Authority 
shall submit its proposed budget not later than July 15, 1995. 
(2) CONTENTS OF BUDGET,—The budget shall describe— 
(A) expenditures of the Authority by each object class, 
including expenditures for staff of the Authority; 
(B) services of personnel and other services provided 
by or on behalf of the Authority for which the Authority 
made no reimbursement; and 
(C) any gifts or bequests made to the authority during 
the previous fiscal year. 
109 STAT. 106 
PUBLIC LAW 104-8—APR. 17, 1995 
(3) APPROPRIATIONS REQUIRED.—No amount may be obli-
gated or expended by the Authority for a fiscal year (beginning 
with fiscal year 1996) unless such amount has been approved 
by Act of Congress, and then only according to such Act. 
(4) CONFORMING AMENDMENT.—Section 453(c) of the Dis-
trict of Columbia Self-Government and Governmental Reorga-
105 Stat. 539. 
nization Act (sec. 47-304.1(c), D.C. Code) is amended by striking 
the period at the end and inserting the following: ", or to 
the District of Columbia Financial Responsibility and Manage-
ment Assistance Authority established under section 101(a) 
of the District of Columbia Financial Responsibility and 
Management Assistance Act of 1995.". 
(b) SPECIAL RULE FOR FUNDING OF OPERATIONS DURING FISCAL 
YEAR 1995.—^As soon as practicable after the appointment of its 
members, the Authority shall submit to the Mayor and the Presi-
dent— 
(1) a request for reprogramming of funds under subsection 
(c)(1); and 
(2) a description of anticipated expenditures of the Author-
ity for fiscal year 1995 (which shall be transmitted to Congress). 
(c) SOURCES OF FUNDS.— 
(1) USE OF PREVIOUSLY APPROPRIATED FUNDS IN DISTRICT 
BUDGET.—^The Mayor shall transfer funds previously appro-
priated to the District government for a fiscal year for auditing 
and consulting services to the Authority (in such amounts as 
are provided in the budget request of the Authority under 
subsection (a) or, with respect to fiscal year 1995, the request 
submitted under subsection (b)(1)) for the purpose of carrying 
out the Authority's activities during the fiscal year. 
(2) OTHER SOURCES OF FUNDS.—For provisions describing 
the sources of funds available for the operations of the Authority 
during a fiscal year (in addition to any interest earned on 
accounts of the Authority during the year), see section 
204(b)(1)(A) (relating to the set-aside of amounts requisitioned 
from the Treasury by the Mayor) and section 213(b)(3) (relating 
to the use of interest accrued from amounts in a debt service 
reserve fund of the Authority). 
SEC. 107. SUSPENSION OF ACTIVITIES. 
(a) SUSPENSION UPON PAYMENT OF AUTHORITY OBLIGATIONS.— 
(1) IN GENERAL.—Upon the expiration of the 12-month 
period which begins on the date that the Authority certifies 
that all obligations arising from the issuance by the Authority 
of bonds, notes, or other obligations pursuant to subtitle B 
of title II have been discharged, and that all borrowings by 
or on behalf of the District of Columbia pursuant to title VI 
of the District of Columbia Revenue Act of 1939 (sec. 47-
3401, D.C. Code) have been repaid, the Authority shall suspend 
any activities carried out under this Act and the terms of 
the members of the Authority shall expire. 
(2) No SUSPENSION DURING CONTROL YEAR.—^The Authority 
may not suspend its activities pursuant to paragraph (1) at 
any time during a control year. 
(b) REACTIVATION UPON INITIATION OF CONTROL PERIOD.—Upon 
receiving notice from the Chairs of the Appropriations Committees 
of the House of Representatives and the Senate that a control 
period has been initiated (as described in section 209) at any time 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 107 
after the Authority suspends its activities under subsection (a), 
the President shall appoint members of the Authority, and the 
Authority shall carry out activities under this Act, in the same 
manner as the President appointed members and the Authority 
carried out activities prior to such suspension. 
SEC. 
108. APPLICATION OF LAWS OF DISTRICT OF COLUMBIA TO 
AUTHORITY. 
(a) IN GENERAL.—^The following laws of the District of Columbia 
(as in effect on the date of the enactment of this Act) shall apply 
to the members and activities of the Authority: 
(1) Section 742 of the District of Columbia Self-Government 
and Governmental Reorganization Act (sec. 1-1504, D.C. Code). 
(2) Sections 201 through 206 of the District of Columbia 
Freedom of Information Act (sees. 1-1521 through 1-1526, D.C. 
Code). 
(3) Section 601 of the District of Columbia Campaign 
Finance Reform and Conflict of Interest Act (sec. 1-1461, D.C. 
Code). 
(b) No 
CONTROL, SUPERVISION, OVERSIGHT, OR REVIEW BY 
MAYOR OR COUNCIL.— 
(1) IN GENERAL.—Neither the Mayor nor the Council may 
exercise any control, supervision, oversight, or review over the 
Authority or its activities. 
(2) PROHIBITION AGAINST LEGISLATION AFFECTING AUTHOR-
ITY.—Section 602(a) of the District of Columbia Self-Govern-
ment and Governmental Reorganization Act (sec. l-233(a), D.C. 
87 Stat. 813. 
Code) is amended— 
(A) by striking "or" at the end of paragraph (8); 
(B) by striking the period at the end of paragraph 
(9) and inserting "; or"; and 
(C) by adding at the end the following new paragraph: 
"(10) enact any act, resolution, or rule with respect to 
the District of Columbia Financial Responsibility and Manage-
ment Assistance Authority established under section 101(a) 
of the District of Columbia Financial Responsibility and 
Management Assistance Act of 1995.". 
(c) AUTHORITY NOT SUBJECT TO REPRESENTATION BY CORPORA-
TION COUNSEL.—In any action brought by or on behalf of the 
Authority, and in any action brought against the Authority, the 
Authority shall be represented by such counsel as it may select, 
but in no instance may the Authority be represented by the Corpora-
tion Counsel of the District of Columbia. 
109 STAT. 108 
PUBLIC LAW 104-8—APR. 17, 1995 
TITLE II—RESPONSIBILITIES OF 
AUTHORITY 
Subtitle A—Establishment and Enforce-
ment of Financial Plan and Budget for 
District Government 
SEC. 201. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR DIS-
TRICT OF COLUMBIA. 
(a) DEVELOPMENT OF FINANCIAL PLAN AND BUDGET.—^For each 
fiscal year for which the District government is in a control period, 
the Mayor shall develop and submit to the Authority a financial 
plan and budget for the District of Columbia in accordance with 
this section. 
(b) CONTENTS OF FINANCIAL PLAN AND BUDGET.—^A financial 
plan and budget for the District of Columbia for a fiscal year 
shall specify the budgets for the District government under part 
D of title IV of the District of Columbia Self-Government and 
Governmental Reorganization Act for the applicable fiscal year and 
the next 3 fiscal years (including the projected revenues and 
expenditures of each fund of the District government for such 
years), in accordance with the following requirements: 
(1) The financial plan and budget shall meet the standards 
described in subsection (c) to promote the financial stability 
of the District government. 
(2) The financial plan and budget shall provide for esti-
mates of revenues and expenditures on a modified accrual 
basis. 
(3) The financial plan and budget shall— 
(A) describe lump sum expenditures by department 
by object class; 
(B) describe capital expenditures (together with a 
schedule of projected capital commitments of the District 
government and proposed sources of funding); 
(C) contain estimates of short-term and long-term debt 
(both outstanding and anticipated to be issued); and 
(D) contain cash flow forecasts for each fund of the 
District government at such intervals as the Authority 
may require. 
(4) The financial plan and budget shall include a statement 
describing methods of estimations and significant assumptions. 
(5) The financial plan and budget shall include any other 
provisions and shall meet such other criteria as the Authority 
considers appropriate to meet the purposes of this Act, including 
provisions for changes in personnel policies and levels for each 
department or agency of the District government, changes in 
the structure and organization of the District government, and 
management initiatives to promote productivity, improvement 
in the delivery of services, or cost savings. 
(c) STANDARDS TO PROMOTE FINANCIAL STABILITY DESCRIBED.— 
(1) IN GENERAL.—^The standards to promote the financial 
stability of the District government applicable to the financial 
plan and budget for a fiscal year are as follows: 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 109 
(A) In the case of the financial plan and budget for 
fiscal year 1996, the expenditures of the District govern-
ment for each fiscal year (beginning with fiscal year 1999) 
may not exceed the revenues of the District government 
for each such fiscal year. 
(B) During fiscal years 1996, 1997, and 1998, the Dis-
trict government 
shall 
make continuous, 
substantial 
progress towards equalizing the expenditures and revenues 
of the District government for such fiscal years (in equal 
annual installments to the greatest extent possible). 
(C) The District government shall provide for the 
orderly liquidation of the cumulative fund balance deficit 
of the District government, as evidenced by financial state-
ments prepared in accordance with generally accepted 
accounting principles. 
(D) If funds in accounts of the District government 
which are dedicated for specific purposes have been with-
drawn from such accounts for other purposes, the District 
government shall fully restore the funds to such accounts. 
(E) The financial plan and budget shall assure the 
continuing long-term financial stability of the District 
government, as indicated by factors including access to 
short-term and long-term capital markets, the efficient 
management of the District government's workforce, and 
the effective provision of services by the District govern-
ment. 
(2) 
APPLICATION OF SOUND BUDGETARY PRACTICES.—In 
meeting the standards described in paragraph (1) with respect 
to a financial plan and budget for a fiscal year, the District 
government shall apply sound budgetary practices, including 
reducing costs and other expenditures, improving productivity, 
increasing revenues, or combinations of such practices. 
(3) ASSUMPTIONS BASED ON CURRENT LAW.—In meeting the 
standards described in paragraph (1) with respect to a financial 
plan and budget for a fiscal year, the District government 
shall base estimates of revenues and expenditures on Federal 
law as in effect at the time of the preparation of the financial 
plan and budget. 
(d) REPEAL OF OFFSETS AGAINST FEDERAL PAYMENT AND OTHER 
DISTRICT REVENUES.—Section 138 of the District of Columbia 
Appropriations Act, 1995, is amended— 
108 Stat. 2590. 
(1) by striking subsection (c); and 
(2) by redesignating subsections (d) and (e) as subsections 
(c) and (d). 
SEC. 202. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL 
PLAN AND ANNUAL DISTRICT BUDGET. 
(a) SUBMISSION OF PRELIMINARY FINANCIAL PLAN AND BUDGET 
B
Y MAYOR.—Not later than the February 1 preceding a fiscal year 
for which the District government is in a control period, the Mayor 
shall submit to the Authority and the Council a financial plan 
and budget for the fiscal year which meets the requirements of 
section 201. 
(b) REVIEW BY AUTHORITY.—Upon receipt of the financial plan 
and budget for a fiscal year from the Mayor under subsection 
(a), the Authority shall promptly review the financial plan and 
budget. In conducting the review, the Authority may request any 
109 STAT. 110 
PUBLIC LAW 104-8—APR, 17, 1995 
additional information it considers necessary and appropriate to 
carry out its duties under this subtitle. 
(c) ACTION UPON APPROVAL OF MAYOR'S PRELIMINARY FINAN-
CIAL PLAN AND BUDGET.— 
(1) CERTIFICATION TO MAYOR.— 
(A) IN GENERAL.—If the Authority determines that the 
financial plan and budget for the fiscal year submitted 
by the Mayor under subsection (a) meets the requirements 
applicable under section 201— 
(i) the Authority shall approve the financial plan 
and budget and shall provide the Mayor, the Council, 
the President, and Congress with a notice certifjdng 
its approval; and 
(ii) the Mayor shall promptly submit the financial 
plan and budget to the Council pursuant to section 
442 of the District of Columbia Self-Government and 
Governmental Reorganization Act. 
(B) DEEMED APPROVAL AFTER 3O DAYS.— 
(i) IN GENERAL.—If the Authority has not provided 
the Mayor, the Council, and Congress with a notice 
certifying approval under subparagraph (A)(i) or a 
statement of disapproval under subsection (d)(1) upon 
the expiration of the 30-day period which begins on 
the date the Authority receives the financial plan and 
budget from the Mayor under subsection (a), the 
Authority shall be deemed to have approved the finan-
cial plan and budget and to have provided the Mayor, 
the Council, the President, and Congress with the 
notice certifying approval described in subparagraph 
(A)(i). 
(ii) 
EXPLANATION OF FAILURE TO RESPOND.—If 
clause (i) applies with respect to a financial plan and 
budget, the Authority shall provide the Mayor, the 
Council, the President and Congress with an expla-
nation for its failure to provide the notice certifying 
approval or the statement of disapproval during the 
30-day period described in such clause. 
(2) ADOPTION OF FINANCIAL PLAN AND BUDGET BY COUNCIL 
AFTER RECEIPT OF APPROVED FINANCIAL PLAN AND BUDGET.— 
Notwithstanding the first sentence of section 446 of the District 
of Columbia Self-Government and Governmental Reorganiza-
tion Act, not later than 30 days after receiving the financial 
plan and budget for the fiscal year from the Mayor under 
paragraph (l)(A)(ii), the Council shall by Act adopt a financial 
plan and budget for the fiscal year which shall serve as the 
adoption of the budgets of the District government for the 
fiscal year under such section, and shall submit such financial 
plan and budget to the Mayor and the Authority. 
(3) REVIEW OF COUNCIL FINANCIAL PLAN AND BUDGET BY 
AUTHORITY.—^Upon receipt of the financial plan and budget 
for a fiscal year from the Council under paragraph (2) (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 of Columbia Self-Govern-
ment and Governmental Reorganization Act, as amended by 
subsection (f)(2)), the Authority shall promptly review the finan-
cial plan and budget. In conducting the review, the Authority 
~4iiii*-ifZ' 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. I l l 
may request any additional information it considers necessary 
and appropriate to carry out its duties under this subtitle. 
(4) RESULTS OF AUTHORITY REVIEW OF COUNCIL'S INITIAL 
FINANCIAL PLAN AND BUDGET.— 
(A) APPROVAL OF COUNCIL'S INITIAL FINANCIAL PLAN 
AND BUDGET.—If the Authority determines that the finan-
cial plan and budget for the fiscal year submitted by the 
Council under paragraph (2) meets the requirements 
applicable under section 201— 
(i) the Authority shall approve the financial plan 
and budget and shall provide the Mayor, the Council, 
the President, and Congress with a notice certifying 
its approval; and 
(ii) the Council shall promptly submit the financial 
plan and budget to the Mayor for transmission to the 
President and Congress under section 446 of the Dis-
trict of Columbia Self-Government and Governmental 
Reorganization Act. 
(B) DISAPPROVAL OF COUNCIL'S INITIAL BUDGET.—If the 
Authority determines that the financial plan and budget 
for the fiscal year submitted by the Council under para-
graph (2) does not meet the requirements applicable under 
section 201, the Authority shall disapprove the financial 
plan and budget, and shall provide the Mayor, the Council, 
the President, and Congress with a statement containing— 
(i) the reasons for such disapproval; 
(ii) the amount of any shortfall in the budget or 
financial plan; and 
(iii) any recommendations for revisions to the 
budget the Authority considers appropriate to ensure 
that the budget is consistent with the financial plan 
and budget. 
(C) DEEMED APPROVAL AFTER IS DAYS.— 
(i) IN GENERAL.—If the Authority has not provided 
the Mayor, the Council, the President, and Congress 
with a notice certifying approval under subparagraph 
(A)(i) or a statement of disapproval under subpara-
graph (B) upon the expiration of the 15-day period 
which begins on the date the Authority receives the 
financial plan and budget from the Council under para-
graph (2), the Authority shall be deemed to have 
approved the financial plan and budget and to have 
provided the Mayor, the Council, the President, and 
Congress with the notice certifying approval described 
in subparagraph (A)(i). 
(ii) 
EXPLANATION OF FAILURE TO RESPOND.—If 
clause (i) applies with respect to a financial plan and 
budget, the Authority shall provide the Mayor, the 
Council, the President and Congress with an expla-
nation for its failure to provide the notice certifying 
approval or the statement of disapproval during the 
15-day period described in such clause. 
(5) AUTHORITY REVIEW OF COUNCIL'S REVISED FINANCIAL 
PLAN AND BUDGET.— 
(A) SUBMISSION OF COUNCIL'S REVISED FINANCIAL PLAN 
AND BUDGET.—^Not later than 15 days after receiving the 
statement from the Authority under paragraph (4)(B), the 
109 STAT. 112 
PUBLIC LAW 104-8—APR. 17, 1995 
Council shall promptly by Act adopt a revised financial 
plan and budget for the fiscal year which addresses the 
reasons for the Authority's disapproval cited in the state-
ment, and shall submit such financial plan and budget 
to the Mayor and the Authority. 
(B) APPROVAL OF COUNCIL'S REVISED FINANCIAL PLAN 
AND BUDGET.—If, after reviewing the revised financial plan 
and budget for a fiscal year submitted by the Council 
under subparagraph (A) in accordance with the procedures 
described in this subsection, the Authority determines that 
the revised financial plan and budget meets the require-
ments applicable under section 201— 
(i) the Authority shall approve the financial plan 
and budget and shall provide the Mayor, the Council, 
the President, and Congress with a notice certifying 
its approval; and 
(ii) the Council shall promptly submit the financial 
plan and budget to the Mayor for transmission to the 
President and Congress under section 446 of the Dis-
trict of Columbia Self-Govemment and Governmental 
Reorganization Act. 
(C) 
DISAPPROVAL OF COUNCIL'S REVISED FINANCIAL 
PLAN AND BUDGET.— 
(i) IN GENERAL.—If, after reviewing the revised 
financial plan and budget for a fiscal year submitted 
by the Council under subparagraph (A) in accordance 
with the procedures described in this subsection, the 
Authority determines that the revised financial plan 
and budget does not meet the applicable requirements 
under section 201, the Authority shall— 
(I) disapprove the financial plan and budget; 
(II) provide the Mayor, the Council, the Presi-
dent, and Congress with a statement containing 
the reasons for such disapproval and describing 
the amount of any shortfall in the financial plan 
and budget; and 
(III) approve and recommend a financial plan 
and budget for the District government which 
meets the applicable requirements under section 
201, and submit such financial plan and budget 
to the Mayor, the Council, the President, and Con-
gress. 
, 
(ii) TRANSMISSION OF REJECTED FINANCIAL PLAN 
AND BUDGET.—^The Council shall promptly submit the 
revised financial plan and budget disapproved by the 
Authority under this subparagraph to the Mayor for 
transmission to the President and Congress under sec-
tion 446 of the District of Columbia Self-Government 
and Governmental Reorganization Act. 
(D) DEEMED APPROVAL AFTER I5 DAYS.— 
(i) IN GENERAL.—If the Authority has not provided 
the Mayor, the Council, the President, and Congress 
with a notice certifying approval under subparagraph 
(B)(i) or a statement of disapproval under subpara-
graph (C) upon the expiration of the 15-day period 
which begins on the date the Authority receives the 
revised financial plan and budget submitted by the 
-•if^y^." 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 113 
Council under subparagraph (A), the Authority shall 
be deemed to have approved the revised financial plan 
and budget and to have provided the Mayor, the Coun-
cil, the President, and Congress with the notice certify-
ing approval described in subparagraph (B)(i). 
(ii) EXI'LANATION OF FAILURE TO RESPOND.—If 
clause (i) applies with respect to a financial plan and 
budget, the Authority shall provide the Mayor, the 
Council, the President and Congress with an expla-
nation for its failure to provide the notice certifying 
approval or the statement of disapproval during the 
15-day period described in such clause. 
(6) DEADLI^fE FOR TRANSMISSION OF FINANCIAL PLAN AND 
BUDGET B
Y AUTHORITY.—Notwithstanding any other provision 
of this section, not later than the June 15 preceding each 
fiscal year which is a control year, the Authority shall— 
(A) provide Congress with a notice certifying its 
approval of the Council's initial financial plan and budget 
for the fiscal year under paragraph (4)(A); 
(B) provide Congress with a notice certifjdng its 
approval of the Council's revised financial plan and budget 
for the fiscal year under paragraph (5)(B); or 
(C) submit to Congress an approved and recommended 
financial plan and budget of the Authority for the District 
government for the fiscal year under paragraph (5)(C). 
(d) 
ACTION UPON 
DISAPPROVAL OF MAYOR'S PRELIMINARY 
FINANCIAL PLAN AND BUDGET.— 
(1) STATEMENT OF DISAPPROVAL.—If the Authority deter-
mines that the financial plan and budget for the fiscal year 
submitted by the Mayor under subsection (a) does not meet 
the requirements applicable under section 201, the Authority 
shall disapprove the financial plan and budget, and shall pro-
vide the Mayor and the Council with a statement containing— 
(A) the reasons for such disapproval; 
(B) the amount of any shortfall in the financial plan 
and budget; and 
(C) any recommendations for revisions to the financial 
plan and budget the Authority considers appropriate to 
ensure that the financial plan and budget meets the 
requirements applicable under section 201. 
(2) AUTHORITY REVIEW OF MAYOR'S REVISED FINANCIAL PLAN 
AND BUDGET.— 
(A) SUBMISSION OF MAYOR'S REVISED FINANCIAL PLAN 
AND BUDGET.—^Not later than 15 days after receiving the 
statement from the Authority under paragraph (1), the 
Mayor shall promptly submit to the Authority and the 
Council a revised financial plan and budget for the fiscal 
year which addresses the reasons for the Authority's dis-
approval cited in the statement. 
(B) APPROVAL OF MAYOR'S REVISED FINANCIAL PLAN 
AND BUDGET.—If the Authority determines that the revised 
financial plan and budget for the fiscal year submitted 
by the Mayor under subparagraph (A) meets the require-
ments applicable under section 201— 
(i) the Authority shall approve the financial plan 
and budget and shall provide the Mayor, the Council, 
99-194 O - 95 - 5 : QL 3 Part I 
109 STAT. 114 
PUBLIC LAW 104-8—APR. 17, 1995 
the President, and Congress with a notice certifying 
its approval; and 
(ii) the Mayor shall promptly submit the financial 
plan and budget to the Council pursuant to section 
442 of the District of Columbia Self-Government and 
Governmental Reorganization Act. 
(C) DISAPPROVAL OF MAYOR'S REVISED FINANCIAL PLAN 
AND BUDGET.— 
(i) IN GENERAL.—If the Authority determines that 
the revised financial plan and budget for the fiscal 
year submitted by the Mayor under subparagraph (A) 
does not meet the requirements applicable under sec-
tion 201, the Authority shall— 
(I) disapprove the financial plan and budget; 
(II) shall provide the Mayor, the Council, the 
President, and Congress with a statement contain-
ing the reasons for such disapproval; and 
(III) recommend a financial plan and budget 
for the District government which meets the 
requirements applicable under section 201 and 
submit such financial plan and budget to the 
Mayor and the Council. 
(ii) SUBMISSION OF REJECTED FINANCIAL PLAN AND 
BUDGET.—^The Mayor 
shall promptly 
submit 
the 
revised financial plan and budget disapproved by the 
Authority under this subparagraph to the Council 
pursuant to section 442 of the District of Columbia 
Self-Government and Grovernmental Reorganization 
Act. 
(D) DEEMED APPROVAL AFTER 15 DAYS.— 
(i) IN GENERAL.—If the Authority has not provided 
the Mayor, the Council, the President, and Congress 
with a notice certifying approval under subparagraph 
(B)(i) or a statement of disapproval under subpara-
graph (C) upon the expiration of the 15-day period 
which begins on the date the Authority receives the 
revised financial plan and budget submitted by the 
Mayor under sul>paragraph (A), the Authority shall 
be deemed to have approved the revised financial plan 
and budget and to have provided the Mayor, the Coun-
cil, the President, and Congress with the notice certify-
ing approval described in subparagraph (B)(i). 
(ii) 
EXPLANATION OF FAILURE TO RESPOND.—^If 
clause (i) applies with respect to a financial plan and 
budget, the Authority shall provide the Mayor, the 
Council, the President and Congress with an expla-
nation for its failure to provide the notice certifying 
approval or the statement of disapproval during the 
15-day period described in such clause. 
(3) ACTION BY COUNCIL.— 
(A) ADOPTION OF FINANCIAL PLAN AND BUDGET.—^Not-
withstanding the first sentence of section 446 of the District 
of Columbia Self-Government and Grovernmental Reorga-
nization Act, not later than 30 days after receiving the 
Mayor's approved revised financial plan and budget for 
the fiscal year under paragraph (2)(B) or (in the case of 
a financial plan and budget disapproved by the Authority) 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 115 
the financial plan and budget recommended by the Author-
ity under paragraph (2)(C)(i)(III), the Council shall by Act 
adopt a financial plan and budget for the fiscal year which 
shall serve as the adoption of the budgets of the District 
government for the fiscal year under such section, and 
shall submit the financial plan and budget to the Mayor 
and the Authority. 
(B) REVIEW BY AUTHORITY.—The financial plan and 
budget submitted by the Council under subparagraph (A) 
shall be subject to review by the Authority and revision 
by the Council in the same manner as the financial plan 
and budget submitted by the Council after an approved 
preliminary financial plan and budget of the Mayor under 
paragraphs (3), (4), (5), and (6) of subsection (c). 
(e) REVISIONS TO FINANCIAL PLAN AND BUDGET.— 
(1) PERMITTING MAYOR TO SUBMIT REVISIONS.—The Mayor 
may submit proposed revisions to the financial plan and budget 
for a control year to the Authority at any time during the 
year. 
(2) 
PROCESS FOR REVIEW, APPROVAL, DISAPPROVAL, AND 
COUNCIL ACTION.—Except as provided in paragraph (3), the 
procedures described in subsections (b), (c), and (d) shall apply 
with respect to a proposed revision to a financial plan and 
budget in the same manner as such procedures apply with 
respect to the original financial plan and budget, except that 
subparagraph (B) of subsection (c)(1) (relating to deemed 
approval by the Authority of a preliminary financial plan and 
budget of the Mayor) shall be applied as if the reference to 
the term "30-day period" were a reference to "20-day period". 
(3) EXCEPTION FOR REVISIONS NOT AFFECTING APPROPRIA-
TIONS.—^To the extent that a proposed revision to a financial 
plan and budget adopted by the Council pursuant to this sub-
section does not increase the amount of spending with respect 
to any account of the District government, the revision shall 
become effective upon the Authority's approval of such revision 
(subject to review by Congress under section 602(c) of the 
District of Columbia Self-Government and 
Governmental 
Reorganization Act). 
(f) CONFORMING AMENDMENT TO BUDGET PROCESS REQUIRE-
MENTS UNDER HOME RULE ACT.— 
(1) SUBMISSION OF UNBALANCED BUDGETS.—Section 603 
of 
the District of Columbia Self-Government and Governmental 
Reorganization Act (sec. 47-313, D.C. Code) is amended— 
87 Stat. 814. 
(A) in subsection (c), by striking "The Council" the 
first place it appears and inserting "Except as provided 
in subsection (f), the Council"; 
(B) in subsection (d), by striking "The Mayor" and 
inserting "Except as provided in subsection (f), the Mayor"; 
and 
(C) by adding at the end the following new subsection: 
"(f) In the case of a fiscal year which is a control year (as 
defined in section 305(4) of the District of Columbia Financial 
Responsibility and Management Assistance Act of 1995)— 
"(1) subsection (c) (other than the fourth sentence) and 
subsection (d) shall not apply; and 
"(2) the Council may not approve, and the Mayor may 
not forward to the President, any budget which is not consistent 
109 STAT. 116 
PUBLIC LAW 104-8—APR. 17, 1995 
with the financial plan and budget established for the fiscal 
year under subtitle A of title II of such Act.". 
(2) EXPEDITED PROCEDURES FOR DISAPPROVAL OF ITEMS AND 
PROVISIONS OF COUNCIL BUDGET BY MAYOR.—Section 404(f) of 
the District of Columbia Self-Govemment and Governmental 
87 Stat. 788. 
Reorganization Act (sec. l-227(f), D.C. Code) is amended by 
adding at the end the following new sentence: "In the case 
of any budget act for a fiscal year which is a control year 
(as defined in section 305(4) of the District of Columbia Finan-
cial Responsibility and Management Assistance Act of 1995), 
this subsection shall apply as if the reference in the second 
sentence to 'ten-day period' were a reference to 'five-day period' 
and the reference in the third sentence to 'thirty calendar 
days' were a reference to '5 calendar days'.", 
(g) PERMITTING MAYOR AND COUNCIL TO SPECIFY EXPENDITURES 
UNDER SCHOOL BOARD BUDGET DURING CONTROL YEAR.— 
(1) MAYOR'S ESTIMATE INCLUDED IN ANNUAL FINANCIAL PLAN 
AND BUDGET.—Section 2(h) of the Act entitled "An Act to fix 
and regulate the salaries of teachers, school officers, and other 
employees of the board of education of the District of Columbia", 
approved June 20, 1906 (sec. 31-103, D.C. Code) is amended 
by striking the period at the end and inserting the following: 
", except that in the case of a year which is a control year 
(as defined in section 305(4) of the District of Columbia Finan-
cial Responsibility and Management Assistance Act of 1995), 
the Mayor shall transmit the same together with the Mayor's 
own request for the amount of money required for the public 
schools for the year.". 
(2) SPECIFICATION OF EXPENDITURES.—Section 452 of 
the 
District of Columbia Self-Government and 
Governmental 
87 Stat. 803. 
Reorganization Act (sec. 31-104, D.C. Code) is amended by 
adding at the end the following new sentence: "This section 
shall not apply with respect to the annual budget for any 
fiscal year which is a control year (as defined in section 305(4) 
of the District of Columbia Financial Responsibility and 
Management Assistance Act of 1995).". 
(h) PERMITTING SEPARATION OF EMPLOYEES IN ACCORDANCE 
WITH FINANCIAL PLAN AND BUDGET.—^The fourth sentence of section 
422(3) of the District of Columbia Self-Government and Govern-
105 Stat. 540. 
mental Reorganization Act (sec. 1-242(3), D.C. Code) is amended 
by striking "pursuant to procedures" and all that follows through 
"Act of 1991" and inserting the following: "in the implementation 
of a financial plan and budget for the District government approved 
under subtitle A of title II of the District of Columbia Financial 
Responsibility and Management Assistance Act of 1995". 
SEC. 203. REVIEW OF ACTIVITIES OF DISTRICT GOVERNMENT TO 
ENSURE COMPLIANCE WITH APPROVED FINANCIAL PLAN 
AND BUDGET. 
(a) REVIEW OF COUNCIL ACTS.— 
(1) SUBMISSION OF ACTS TO AUTHORITY.—^The Council shall 
submit to the Authority each Act passed by the Council and 
signed by the Mayor during a control year or vetoed by the 
Mayor and repassed by two-thirds of the Council present and 
voting during a control year, and each Act passed by the Council 
and allowed to become effective without the Mayor's signature 
during a control year, together with the estimate of costs accom-
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 117 
panying such Act required under section 602(c)(3) of the District 
of Columbia Self-Government and (governmental Reorganiza-
tion Act (as added by section 301(d)). 
(2) PROMPT REVIEW BY AUTHORITY.—Upon receipt of an 
Act from the Council under paragraph (1), the Authority shall 
promptly review the Act to determine whether it is consistent 
with the applicable financial plan and budget approved under 
this subtitle and with the estimate of costs accompanying the 
Act (described in paragraph (1)). 
(3) ACTIONS BY AUTHORITY.— 
(A) APPROVAL.—^Except as provided in subparagraph 
(C), if the Authority determines that an Act is consistent 
with the applicable financial plan and budget, the Author-
ity shall notify the Council that it approves the Act, and 
the Council shall submit the Act to Congress for review 
in accordance with section 602(c) of the District of Columbia 
Self-Government and Governmental Reorganization Act. 
(B) FINDING OF INCONSISTENCY.—Except as provided 
in subparagraph (C), if the Authority determines that an 
Act is significantly inconsistent with the applicable finan-
cial plan and budget, the Authority shall— 
(i) notify the Council of its finding; 
(ii) provide the Council with an explanation of 
the reasons for its finding; and 
(iii) to the extent the Authority considers appro-
priate, provide the Council with recommendations for 
modifications to the Act. 
(C) EXCEPTION FOR EMERGENCY ACTS.—Subparagraphs 
(A) and (B) shall not apply with respect to any act which 
the Council determines according to section 412(a) of the 
District of Columbia Self-Government and Governmental 
Reorganization Act should take effect immediately because 
of emergency circumstances. 
(4) EFFECT OF FINDING.—If the Authority makes a finding 
with respect to an Act under paragraph (3)(B), the Council 
may not submit the Act to Congress for review in accordance 
with section 602(c) of the District of Columbia Self-Government 
and Gk)vernmental Reorganization Act. 
(5) DEEMED APPROVAL.—If the Authority does not notify 
the Council that it approves or disapproves an Act submitted 
under this subsection during the 7-day period which begins 
on the date the Council submits the Act to the Authority, 
the Authority shall be deemed to have approved the Act in 
accordance with paragraph (3)(A). At the option of the Author-
ity, the previous sentence shall be applied as if the reference 
to "7-day period" were a reference to "14-day period" if during 
such 7-day period the Authority so notifies the Council and 
the Mayor. 
(6) PRELIMINARY 
REVIEW OF PROPOSED ACTS.—^At the 
request of the Council, the Authority may conduct a preliminary 
review of proposed legislation before the Council to determine 
whether the legislation as proposed would be consistent with 
the applicable financial plan and budget approved under this 
subtitle, except that any such preliminary review shall not 
be binding on the Authority in reviewing any Act subsequently 
submitted under this subsection. 
109 STAT. 118 
PUBLIC LAW 104-8—APR. 17, 1995 
(b) EFFECT OF APPROVED FINANCIAL PLAN AND BUDGET ON 
CONTRACTS AND LEASES.— 
(1) MANDATORY PRIOR APPROVAL FOR CERTAIN CONTRACTS 
AND LEASES.— 
(A) IN GENERAL.—In the case of a contract or lease 
described in subparagraph (B) which is proposed to be 
entered into by the District government during a control 
year, the Mayor (or the appropriate officer or agent of 
the District government) shall submit the proposed contract 
or lease to the Authority. The Authority shall review each 
contract or lease submitted under this subparagraph, and 
the Mayor (or the appropriate officer or agent of the District 
government) may not enter into the contract or lease unless 
the Authority determines that the proposed contract or 
lease is consistent with the financial plan and budget for 
the fiscal year. 
(B) CONTRACTS AND LEASES DESCRIBED.—^A contract 
or lease described in this subparagraph is— 
(i) a labor contract entered into through collective 
bargaining; or 
(ii) such other type of contract or lease as the 
Authority may specify for purposes of this subpara-
graph. 
(2) AUTHORITY TO REVIEW OTHER CONTRACTS AND LEASES 
AFTER EXECUTION.— 
(A) IN GENERAL.—In addition to the prior approval 
of certain contracts and leases under paragraph (1), the 
Authority may require the Mayor (or the appropriate officer 
or agent of the District government) to submit to the 
Authority any other contract (including a contract to carry 
out a grant) or lease entered into by the District govern-
ment during a control year which is executed after the 
Authority has approved the financial plan and budget for 
the year under section 202(c) or 202(d), or any proposal 
of the District government to renew, extend, or modify 
a contract or lease during a control year which is made 
after the Authority has approved such financial plan and 
budget. 
(B) REVIEW BY AUTHORITY.—^The Authority shall review 
each contract or lease submitted under subparagraph (A) 
to determine if the contract or lease is consistent with 
the financial plan and budget for the fiscal year. If the 
Authority determines that the contract or lease is not 
consistent with the financial plan and budget, the Mayor 
shall take such actions as are within the Mayor's powers 
to revise the contract or lease, or shall submit a proposed 
revision to the financial plan and budget in accordance 
with section 202(e), so that the contract or lease will be 
consistent with the financial plan and budget. 
(3) SPECIAL RULE FOR FISCAL YEAR 1995.—^The Authority 
may require the Mayor to submit to the Authority any proposal 
to renew, extend, or modify a contract or lease in effect during 
fiscal year 1995 to determine if the renewal, extension, or 
modification is consistent with the budget for the District of 
Columbia under the District of Columbia Appropriations Act, 
1995. 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 119 
(4) 
SPECIAL RULE FOR CONTRACTS SUBJECT TO COUNCIL 
APPROVAL.—In the case of a contract or lease which is required 
to be submitted to the Authority under this subsection and 
which is subject to approval by the Council under the laws 
of the District of Columbia, the Mayor shall submit such con-
tract or lease to the Authority only after the Council has 
approved the contract or lease. 
/ 
(c) RESTRICTIONS ON REPROGRAMMING OF AMOUNTS IN BUDGET 
DURING CONTROL YEARS.— 
(1) SUBMISSIONS OF REQUESTS TO AUTHORITY.—If the Mayor 
submits a request to the Council for the reprogramming of 
any amounts provided in a budget for a fiscal year which 
is a control year after the budget is adopted by the Council, 
the Mayor shall submit such request to the Authority, which 
shall analyze the effect of the proposed reprogramming on 
the financial plan and budget for the fiscal year and submit 
its analysis to the Council not later than 15 days after receiving 
the request. 
(2) No ACTION PERMITTED UNTIL ANALYSIS RECEIVED.—The 
Council may not adopt a reprogramming during a fiscal year 
which is a control year, and no officer or employee of the 
District government may carry out any reprogramming during 
such a year, until the Authority has provided the Council 
with an analysis of a request for the reprogramming in accord-
ance with paragraph (1). 
SEC. 204. RESTRICTIONS ON BORROWING BY DISTRICT DURING CON-
TROL YEAR. 
(a) PRIOR APPROVAL REQUIRED.— 
(1) IN GENERAL.—^The District government may not borrow 
money during a control year unless the Authority provides 
prior certification that both the receipt of funds through such 
borrowing and the repayment of obligations incurred through 
such borrowing are consistent with the financial plan and 
budget for the year. 
(2) 
REVISIONS TO FINANCIAL PLAN AND BUDGET PER-
MITTED.—If the Authority determines that the borrowing pro-
posed to be undertaken by the District government is not 
consistent with the financial plan and budget, the Mayor may 
submit to the Authority a proposed revision to the financial 
plan and budget in accordance with section 202(e) so that 
the borrowing will be consistent with the financial plan and 
budget as so revised. 
(3) BORROWING DESCRIBED.—This subsection shall apply 
with respect to any borrowing undertaken by the District 
government, including borrowing through the issuance of bonds 
under part E of title IV of the District of Columbia Self-
Grovernment and Governmental Reorganization Act, the exer-
cise of authority to obtain funds from the United States Treas-
ury under title VI of the District of Columbia Revenue Act 
of 1939 (sec. 47-3401, D.C. Code), or any other means. 
(4) SPECIAL RULES FOR TREASURY BORROWING DURING FIS-
CAL YEAR 1995.— 
(A) No PRIOR APPROVAL REQUIRED DURING INITIAL 
PERIOD FOLLOWING APPOINTMENT.—^The District govern-
ment may requisition advances from the United States 
Treasury under title VI of the District of Columbia Revenue 
109 STAT. 120 
PUBLIC LAW 104-8—APR. 17, 1995 
Act of 1939 (sec. 47-3401, D.C. Code) without the prior 
approval of the Authority during the 45-day period which 
begins on the date of the appointment of the members 
of the Authority (subject to the restrictions described in 
such title, as amended by subsection (c)). 
(B) CRITERIA FOR APPROVAL DURING REMAINDER OF FIS-
CAL YEAR.—^The District government may 
requisition 
advances described in subparagraph (A) during the portion 
of fiscal year 1995 occurring after the expiration of the 
45-day period described in such subparagraph if the 
Authority fmds that— 
(i) such borrowing is appropriate to meet the needs 
of the District government to reduce deficits and dis-
charge payment obligations; and 
(ii) the District government is making appropriate 
progress toward meeting its responsibilities under this 
Act (and the amendments made by this Act). 
(b) DEPOSIT OF FUNDS OBTAINED THROUGH TREASURY WITH 
AUTHORITY.— 
(1) AUTOMATIC DEPOSIT DURING CONTROL YEAR.—If 
the 
Mayor requisitions funds from the Secretary of the Treasury 
pursuant to title VI of the District of Columbia Revenue Act 
of 1939 (sec. 47-3401, D.C. Code) during a control year (begin-
ning with fiscal year 1996), such funds shall be deposited 
by the Secretary into an escrow account held by the Authority, 
to be used as follows: 
(A) The Authority shall expend a portion of the funds 
for its operations during the fiscal year in which the funds 
are requisitioned, in such amount and under such condi-
tions as are established under the budget of the Authority 
for the fiscal year under section 106(a). 
(B) The Authority shall allocate the remainder of such 
funds to the Mayor at such intervals and in accordance 
with such terms and conditions as it considers appropriate, 
consistent with the financial plan and budget for the year 
and with any other withholding of funds by the Authority 
pursuant to this Act. 
(2) OPTIONAL DEPOSIT DURING FISCAL YEAR 1995.— 
(A) DURING INITIAL PERIOD FOLLOWING APPOINTMENT.— 
If the Mayor requisitions funds described in paragraph 
(1) during the 45-day period which begins on the date 
of the appointment of the members of the Authority, the 
Secretary of the Treasury shall notify the Authority, and 
at the request of the Authority shall deposit such funds 
into an escrow account held by the Authority in accordance 
with paragraph (1). 
(B) DURING REMAINDER OF FISCAL YEAR.—If the Mayor 
requisitions funds described in paragraph (1) during the 
portion of fiscal year 1995 occurring after the expiration 
of the 45-day period described in subparagraph (A), the 
Secretary of the Treasury shall deposit such funds into 
an escrow account held by the Authority in accordance 
with paragraph (1) at the request of the Authority. 
(c) CONDITIONS ON REQUISITIONS FROM TREASURY.—^Title VI 
of the District of Columbia Revenue Act of 1939 (sec. 47-3401, 
D.C. Code) is amended by striking all after the heading and insert-
ing the following: 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 121 
"SEC. 601. TRANSITIONAI. PROVISION FOR SHORT-TERM ADVANCES. 
"(a) TRANSITIONAL SHORT-TERM ADVANCES MADE BEFORE OCTO-
BER 1, 1995.— 
"(1) IN GENERAL.—If the conditions in paragraph (2) are 
satisfied, the Secretary shall make an advance of funds from 
time to time, out of any money in the Treasury not otherwise 
appropriated, for the purpose of assisting the District govern-
ment in meeting its general expenditures, as authorized by 
Congress. 
"(2) CONDITIONS TO MAKING ANY TRANSITIONAL SHORT-TERM 
ADVANCE BEFORE OCTOBER 1, 1995.—^The Secretary shall make 
an advance under this subsection if the following conditions 
are satisfied: 
"(A) the Mayor delivers to the Secretary a requisition 
for an advance under this section; 
"(B) as of the date on which the requisitioned advance 
is to be made, the Authority has not approved a financial 
plan and budget for the District government as meeting 
the requirements of the District of Columbia Financial 
Responsibility and Management Assistance Act of 1995; 
"(C) the date on which the requisitioned advance is 
to be made is not later than September 30, 1995; 
"(D) the District government has delivered to the Sec-
retary— 
"(i) a schedule setting forth the anticipated timing 
and amounts of requisitions for advances under this 
subsection; and 
"(ii) evidence demonstrating to the satisfaction of 
the Secretary that the District government is effec-
tively unable to obtain credit in the public credit mar-
kets or elsewhere in sufficient amounts and on suffi-
ciently reasonable terms to meet the District govern-
ment's financing needs; 
"(E) the Secretary determines that there is reasonable 
assurance of reimbursement for the advance from the 
amount authorized to be appropriated as the annual Fed-
eral payment to the District of Columbia under title V 
of the District of Columbia Self-Government and Govern-
mental Reorganization Act for the fiscal year ending 
September 30, 1996; and 
"(F) except during the 45-day period beginning on the 
date of the appointment of the members of the Authority, 
the Authority makes the findings described in section 
204(a)(4)(B) of the District of Columbia Financial Respon-
sibility and Management Assistance Act of 1995. 
"(3) AMOUNT OF ANY TRANSITIONAL SHORT-TERM ADVANCE 
MADE BEFORE OCTOBER 1, 1995.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(C), if the conditions described in subparagraph (B) are 
satisfied, each advance made under this subsection shall 
be in the amount designated by the Mayor in the Mayor's 
requisition for such advance, except that— 
"(i) the total amount requisitioned under this sub-
section during the 30-day period which begins on the 
date of the first requisition made under this subsection 
may not exceed 33 V
a percent of the fiscal year 1995 
limit; 
109 STAT. 122 
PUBLIC LAW 104-8—APR. 17, 1995 
"(ii) the total amount requisitioned under this sub-
section during the 60-day period which begins on the 
date of the first requisition made under this subsection 
may not exceed 66% percent of the fiscal year 1995 
limit; and 
"(iii) the total amount requisitioned under this sub-
section after the expiration of the 60-day period which 
begins on the date of the first requisition made under 
this subsection may not exceed 100 percent of the 
fiscal year 1995 limit. 
"(B) 
CONDITIONS 
APPLICABLE 
TO 
DESIGNATED 
AMOUNT.—Subparagraph (A) applies if the Mayor deter-
mines that the amount designated in the Mayor^s requisi-
tion for such advance is needed to accomplish the purpose 
described in paragraph (1), and (except during the 45-
day period beginning on the date of the appointment of 
the members of the Authority) the Authority approves such 
amount. 
"(C) AGGREGATE MAXIMUM AMOUNT OUTSTANDING.— 
The sum of the anticipated principal and interest require-
ments of all advances made under this subsection may 
not be greater than the fiscal year 1995 limit. 
"(D) FISCAL YEAR 1995 LIMIT DESCRIBED.—In this para-
graph, the 'fiscal year 1995 limit' means the amount author-
ized to be appropriated to the District of Columbia as 
the annual Federal payment to the District of Columbia 
under title V of the District of Columbia Self-Government 
and Governmental Reorganization Act for the fiscal year 
ending September 30, 1995, 
"(4) MATURITY OF ANY TRANSITIONAL SHORT-TERM ADVANCE 
MADE BEFORE OCTOBER 1, 1995.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), each advance made under this subsection shall mature 
on the date designated by the Mayor in the Mayor's requisi-
tion for such advance. 
"(B) LATEST PERMISSIBLE MATURITY DATE.—^Notwith-
standing subparagraph (A), the maturity date for any 
advance made under this subsection shall not be later 
than October 1, 1995. 
"(5) INTEREST RATE.—^Each advance made under this sub-
section shall bear interest at an annual rate equal to the 
rate determined by the Secretary at the time that the Secretary 
makes such advance taking into consideration the prevailing 
yield on outstanding marketable obligations of the United 
States with remaining periods to maturity comparable to the 
maturity of such advance, plus Vs of 1 percent. 
"(6) DEPOSIT OF ADVANCES.— 
"(A) IN GENERAL.—^Except as provided in subparagraph 
(B), each advance made under this subsection for the 
account of the District government shall be deposited by 
the Secretary into such account as is designated by the 
Mayor in the Mayor's requisition for such advance. 
"(B) EXCEPTION.—^Notwithstanding subparagraph (A), 
if (in accordance with section 204(b)(2) of the District of 
Columbia Financial Responsibility and Management Assist-
ance Act of 1995) the Authority delivers a letter requesting 
the Secretary to deposit all advances made under this 
PUBLIC I^W 104-8—APR. 17, 1995 
109 STAT. 123 
subsection for the account of the District government in 
an escrow account held by the Authority, each advance 
made under this subsection for the account of the District 
government after the date of such letter shall be deposited 
by the Secretary into the escrow account specified by the 
Authority in such letter. 
"(b) TRANSITIONAL SHORT-TERM ADVANCES MADE ON OR AFTER 
OCTOBER 1,1995 AND BEFORE FEBRUARY 1,1996.— 
"(1) IN GENERAL.—If the conditions in paragraph (2) are 
satisfied, the Secretary shall make an advance of funds from 
time to time, out of any money in the Treasury not otherwise 
appropriated, for the same purpose as advances are made under 
subsection (a). 
"(2) TERMS AND CONDITIONS.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), paragraphs (2), (4), and (5) of subsection (a) (other 
than subparagraph (F) of paragraph (2)) shall apply to 
any advance made under this subsection. 
"(B) EXCEPTIONS.— 
"(i) 
NEW 
CONDITIONS 
PRECEDENT TO 
MAKING 
ADVANCES.—^The conditions described in subsection 
(a)(2) shall apply with respect to making advances 
on or after October 1, 1995, in the same manner as 
such conditions apply with respect to making advances 
before October 1, 1995, except that— 
"(I) subparagraph (C) (relating to the last day 
on which advances may be made) shall be applied 
as if the reference to 'September 30, 1995' were 
a reference to 'January 31, 1996'; 
"(II) subparagraph (E) (relating to the Sec-
retary's determination of reasonable assurance of 
reimbursement from the annual Federal payment 
appropriated to the District of Columbia) shall be 
applied as if the reference to 'September 30, 1996' 
were a reference to 'September 30, 1997'; 
"(III) the Secretary may not make an advance 
under this subsection unless all advances made 
under subsection (a) are fully reimbursed by 
withholding from the annual Federal payment 
appropriated to the District of Columbia for the 
fiscal year ending September 30, 1996, under title 
V of the District of Columbia Self-Government and 
Governmental Reorganization Act, and applying 
toward reimbursement for such advances 
an 
amount equal to the amount needed to fully 
reimburse the Treasury for such advances; and 
"(IV) the Secretary may not make an advance 
under this subsection unless the Authority has 
provided the Secretary with the prior certification 
described in section 204(a)(1) of the District of 
Columbia Financial Responsibility and Manage-
ment Assistance Act of 1995. 
"(ii) NEW LATEST PERMISSIBLE MATURITY DATE.— 
The provisions of subsection (a)(4) shall apply with 
respect to the maturity of advances made after October 
1, 1995, in the same manner as such provisions apply 
with respect to the maturity of advances made before 
109 STAT. 124 
PUBLIC LAW 104-8—APR. 17, 1995 
October 1, 1995, except that subparagraph (B) of such 
subsection (relating to the latest permissible maturity 
date) shall apply as if the reference to 'October 1, 
1995' were a reference to 'October 1, 1996'. 
"(C) NEW MAXIMUM AMOUNT OUTSTANDING.— 
"(i) IN GENERAL.—Except as provided in clause 
(iii), if the conditions described in clause (ii) are satis-
fied, each advance made under this subsection shall 
be in the amount designated by the Mayor in the 
Mayor's requisition for such advance. 
"(ii) 
CONDITIONS 
APPLICABLE 
TO 
DESIGNATED 
AMOUNT.—Clause (i) applies if the Mayor determines 
that the amount designated in the Mayor's requisition 
for such advance is needed to accomplish the purpose 
described in paragraph (1), and the Authority approves 
such amount. 
"(iii) AGGREGATE MAXIMUM AMOUNT OUTSTAND-
ING.—^The sum of the anticipated principal and interest 
requirements of all advances made under this para-
graph may not be greater than 60 percent of the fiscal 
year 1996 limit. 
"(D) DEPOSIT OF ADVANCES.—As provided in section 
204(b) of the District of Columbia Financial Responsibility 
and Management Assistance Act of 1995, each advance 
made under this subsection for the account of the District 
shall be deposited by the Secretary into an escrow account 
held by the Authority. 
"(E) FISCAL YEAR 1996 LIMIT DESCRIBED.—In this para-
graph, the 'fiscal year 1996 limit' means the amount author-
ized to be appropriated to the District of Columbia as 
the annual Federal pa3anent to the District of Columbia 
under title V of the District of Columbia Self-Government 
and Governmental Reorganization Act for the fiscal year 
ending September 30, 1996. 
"(c) TRANSITIONAL SHORT-TERM ADVANCES MADE O N OR AFTER 
FEBRUARY 1,1996, AND BEFORE OCTOBER 1,1996.— 
"(1) IN GENERAL.—If the conditions in paragraph (2) are 
satisfied, the Secretary shall make an advance of funds from 
time to time, out of any money in the Treasury not otherwise 
appropriated, for the same purpose as advances are made under 
subsection (a). 
"(2) TERMS AND CONDITIONS.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), subsection (b)(2) shall apply to any advance made 
under this subsection. 
"(B) EXCEPTIONS.—^The conditions applicable under 
subsection (b)(2) (other than paragraph (2)(B) of subsection 
(a)) shall apply with respect to making advances on or 
after February 1, 1996, and before October 1, 1996, in 
the same manner as such conditions apply to making 
advances under such subsection, except that— 
"(i) in applying subparagraph (C) of subsection 
(a)(2) (as described in subsection (b)(2)(B)(i)(I)), the 
reference to 'October 1, 1995' shall be deemed to be 
a reference to 'September 30, 1996'; 
PUBLIC l A W 104-8—APR. 17, 1995 
109 STAT. 125 
"(ii) subparagraph (C)(iii) of subsection (b)(2) shall 
apply as if the reference to '60 percent' were a reference 
to '40 percent'; and 
"(iii) no advance may be made unless the Secretary 
has been provided the certifications and information 
described in paragraphs (3) through (6) of section 
602(b). 
"(d) TRANSITIONAL SHORT-TERM ADVANCES MADE ON OR AFTER 
OCTOBER 1,1996, AND BEFORE OCTOBER 1,1997.— 
"(1) IN GENERAL.—If the conditions in paragraph (2) are 
satisfied, the Secretary shall make an advance of funds from 
time to time, out of any money in the Treasury not otherwise 
appropriated, for the same purpose as advances are made under 
subsection (a). 
"(2) TERMS AND CONDITIONS.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), paragraphs (2), (4), and (5) of subsection (a) (other 
than subparagraphs (B) and (F) of paragraph (2)) shall 
apply to any advance made under this subsection, 
"(B) EXCEPTIONS.— 
"(i) 
NEW CONDITIONS PRECEDENT TO MAKING 
ADVANCES.—^The conditions described in subsection 
(a)(2) shall apply with respect to making advances 
on or after October 1, 1996, and before October 1, 
1997, in the same manner as such conditions apply 
with respect to making advances before October 1, 
1995, except that— 
"(I) subparagraph (C) (relating to the last day 
on which advances may be made) shall be applied 
as if the reference to 'September 30, 1995' were 
a reference to 'September 30, 1997'; 
"(II) subparagraph (E) (relating to the Sec-
retary's determination of reasonable assurance of 
reimbursement from the annual Federal payment 
appropriated to the District of Columbia) shall be 
applied as if the reference to 'September 30, 1996' 
were a reference to 'September 30, 1997'; 
"(III) the Secretary may not make an advance 
under this subsection unless all advances made 
under subsections (b) and (c) are fully reimbursed 
by withholding from the annual Federal payment 
appropriated to the District of Columbia for the 
fiscal year ending September 30, 1997, under title 
V of the District of Columbia Self-Government and 
Governmental Reorganization Act, and applying 
toward reimbursement for such advances an 
amount equal to the amount needed to fully 
reimburse the Treasury for such advances; and 
"(IV) the Secretary may not make an advance 
under this subsection unless the Secretary has 
been provided the certifications and information 
described in paragraphs (3) through (6) of section 
602(b). 
"(ii) NEW LATEST PERMISSIBLE MATURITY DATE.— 
The provisions of subsection (a)(4) shall apply with 
respect to the maturity of advances made under this 
subsection, in the same manner as such provisions 
109 STAT. 126 
PUBLIC LAW 104-8—APR. 17, 1995 
apply with respect to the maturity of advances made 
before October 1, 1995, except that subparagraph (B) 
of such subsection (relating to the latest permissible 
maturity date) shall apply as if the reference to 
'September 30, 1995' were a reference to 'September 
30, 1997'. 
"(C) NEW MAXIMUM AMOUNT OUTSTANDING.— 
"(i) IN GENERAL.—Except as provided in clause 
(iii), if the conditions described in clause (ii) are satis-
fied, each advance made under this subsection shall 
be in the amount designated by the Mayor in the 
Mayor's requisition for such advance. 
"(ii) 
CONDITIONS 
APPLICABLE 
TO DESIGNATED 
AMOUNT.— Clause (i) applies if the Mayor determines 
that the amount designated in the Mayor's requisition 
for such advance is needed to accomplish the purpose 
described in paragraph (1), and the >.vUthority approves 
such amount. 
"(iii) AGGREGATE MAXIMUM AIIOUNT OUTSTAND-
ING.—The sum of the anticipated principal and interest 
requirements of all advances made under this para-
graph may not be greater than 100 percent of the 
fiscal year 1997 limit. 
"(iv) FISCAL YEAR 1997 LIMIT DESCRIBED.—In this 
subparagraph, the 'fiscal year 1997 limit' means the 
amount authorized to be appropriated to the District 
of Columbia as the annual Federal pajmnent to the 
District of Columbia under title V of the District of 
Columbia Self-Government and Governmental Reorga-
nization Act for the fiscal year ending September 30, 
1997. 
"(D) DEPOSIT OF ADVANCES.—^As provided in section 
204(b) of the District of Columbia Financial Responsibility 
and Management Assistance Act of 1995, each advance 
made under this subsection for the account of the District 
shall be deposited by the Secretary into an escrow account 
held by the Authority. 
"SEC. 
602. SHORT-TERM ADVANCES FOR SEASONAL CASH-FLOW 
MANAGEMENT. 
"(a) IN GENERAL.—^If the conditions in subsection (b) are satis-
fied, the Secretary shall make an advance of funds from time 
to time, out of any money in the Treasury not otherwise appro-
priated, for the purpose of assisting the District government in 
meeting its general expenditures, as authorized by Congress, at 
times of seasonal cash-flow deficiencies. 
"(b) CONDITIONS TO MAKING ANY SHORT-TERM ADVANCE.—^The 
Secretary shall make an advance under this section if— 
"(1) the Mayor delivers to the Secretary a requisition for 
an advance under this section; 
"(2) the date on which the requisitioned advance is to 
be made is in a control period; 
"(3) the Authority certifies to the Secretary that— 
"(A) the District government has prepared and submit-
ted a financial plan and budget for the District government; 
"(B) there is an approved financial plan and budget 
in effect under the District of Columbia Financial Respon-
PUBLIC I ^ W 104^8—APR. 17, 1995 
109 STAT. 127 
sibility and Management Assistance Act of 1995 for the 
fiscal year for which the requisition is to be made; 
"(C) at the time of the Mayor's requisition for an 
advance, the District government is in compHance with 
the financial plan and budget; 
"(D) both the receipt of funds from such advance and 
the reimbursement of the Treasury for such advance are 
consistent with the financial plan and budget for the year; 
and 
"(E) such advance will not adversely affect the financial 
stability of the District government; 
"(4) the Authority certifies to the Secretary, at the time 
of the Mayor's requisition for an advance, that the District 
government is eflfectively unable to obtain credit in the public 
credit markets or elsewhere in sufficient amounts and on suffi-
ciently reasonable terms to meet the District government's 
financing needs; 
"(5) the Inspector General of the District of Columbia cer-
tifies to the Secretary the information described in paragraph 
(3) by providing the Secretary with a certification conducted 
by an outside auditor under a contract entered into pursuant 
to section 208(a)(4) of the District of Columbia Procurement 
Practices Act of 1985; 
"(6) the Secretary receives such additional certifications 
and opinions relating to the financial position of the District 
government as the Secretary determines to be appropriate from 
such other Federal agencies and instrumentalities as the Sec-
retary determines to be appropriate; and 
"(7) the Secretary determines that there is reasonable 
assurance of reimbursement for the advance from the amount 
authorized to be appropriated as the annual Federal payment 
to the District of Columbia under title V of the District of 
Columbia Self-Government and Governmental Reorganization 
Act for the fiscal year following the fiscal year in which such 
advance is made. 
"(c) AMOUNT OF ANY SHORT-TERM ADVANCE.— 
"(1) IN GENERAL.—Except as provided in paragraph (3), 
if the conditions in paragraph (2) are satisfied, each advance 
made under this section shall be in the amount designated 
by the Mayor in the Mayor's requisition for such advance. 
"(2) 
CONDITIONS APPLICABLE TO DESIGNATED AMOUNT.— 
Paragraph (1) applies i
f
— 
"(A) the Mayor determines that the amount designated 
in the Mayor's requisition for such advance is needed to 
accomplish the purpose described in subsection (a); and 
"(B) the Authority— 
"(i) concurs in the Mayor's determination under 
subparagraph (A); and 
"(ii) determines that the reimbursement obligation 
of the District government for an advance made under 
this section in the amount designated in the Mayor's 
requisition is consistent with the financial plan for 
the year. 
"(3) MAXIMUM AMOUNT OUTSTANDING.— 
"(A) IN GENERAL.—^Notwithstanding paragraph (1), the 
unpaid principal balance of all advances made under this 
section in any fiscal year of the District government shall 
109 STAT. 128 
PUBLIC LAW 104-8—APR. 17, 1995 
not at any time be greater than 100 percent of applicable 
limit. 
"(B) SPECIAL RULE FOR FISCAL YEAR 1997.—^The unpaid 
principal balance of all advances made under this section 
in fiscal year 1997 of the District government shall not 
at any time be greater than the difference between— 
"(i) 150 percent of the applicable limit for such 
fiscal year; and 
"(ii) the unpaid principal balance of any advances 
made under section 601(d). 
"(C) APPLICABLE LIMIT DEFINED.—In this paragraph, 
the 'applicable limit' for a fiscal year is the amount author-
ized under title V of the District of Columbia Self-Govern-
ment and Governmental Reorganization Act for appropria-
tion as the Federal payment to the District of Columbia 
for the fiscal year following the fiscal year in which the 
advance is made. 
"(d) MATURITY OF ANY SHORT-TERM ADVANCE.— 
"(1) IN GENERAL.—Except as provided in paragraph (3), 
if the condition in paragraph (2) is satisfied, each advance 
made under this section shall mature on the date designated 
by the Mayor in the Mayor's requisition for such advance. 
"(2) CONDITION APPLICABLE TO DESIGNATED MATURITY.— 
Paragraph (1) applies if the Authority determines that the 
reimbursement obligation of the District government for an 
advance made under this section having the maturity date 
designated in the Mayor's requisition is consistent with the 
financial plan for the year. 
"(3) LATEST PERMISSIBLE MATURITY DATE.—^Notwithstand-
ing paragraph (1), the maturity date for any advance made 
under this section shall not be later than 11 months after 
the date on which such advance is made. 
"(e) INTEREST RATE.—Each advance made under this section 
shall bear interest at an annual rate equal to a rate determined 
by the Secretary at the time that the Secretary makes such advance 
taking into consideration the prevailing yield on outstanding 
marketable obligations of the United States with remaining periods 
to maturity comparable to the maturity of such advance, plus Vs 
of 1 percent. 
"(f) 10-BUSINESS-DAY ZERO BALANCE REQUIREMENT.—^After the 
expiration of the 12-month period beginning on the date on which 
the first advance is made under this section, the Secretary shall 
not make any new advance under this section unless the District 
government has— 
"(1) reduced to zero at the same time the principal balance 
of all advances made under this section at least once during 
the previous 12-month period; and 
"(2) not requisitioned any advance to be made under this 
section in any of the 10 business days following such reduction. 
"(g) DEPOSIT OF ADVANCES.—^As provided in section 204(b) of 
the District of Columbia Financial Responsibility and Management 
Assistance Act of 1995, advances made under this section for the 
account of the District government shall be deposited by the Sec-
retary into an escrow account held by the Authority. 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 129 
"SEC. 603. SECURITY FOR ADVANCES. 
"(a) IN GENERAL.—^The Secretary shall require the District 
government to provide such security for any advance made under 
this title as the Secretary determines to be appropriate. 
"(b) AUTHORITY TO REQUIRE SPECIFIC SECURITY.—AS security 
for any advance made under this title, the Secretary may require 
the District government to— 
"(1) pledge to the Secretary specific taxes and revenue 
of the District government, if such pledging does not cause 
the District government to violate existing 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 paragraph (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 reimbursement payment out of taxes and revenue col-
lected for the support of the District government. 
"(2) EXCEPTIONS FOR TRANSITIONAL ADVANCES.— 
"(A) ADVANCES MADE BEFORE OCTOBER i, 1995.— 
"(i) FINANCIAL PLAN AND BUDGET APPROVED.—If 
the Authority approves a financial plan for the District 
government before October 1, 1995, the District govern-
ment may use the proceeds of any advance made under 
section 602 to discharge 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 appropriated 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 
reimburse the Treasury for any advance made under 
section 601(a). 
"(B) ADVANCES MADE ON OR AFTER OCTOBER 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 advance made 
under section 602 to discharge its obligation to 
reimburse the Treasury for any advance made under 
section 601(b). 
"(ii) FINANCIAL PLAN AND BUDGET NOT APPROVED.— 
•I 
If the Authority has not approved a financial plan 
and budget for the District government by October 
1, 1996, the annual Federal payment appropriated 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 
reimburse the Treasury for any advance made under 
section 601(b). 
109 STAT. 130 
PUBLIC LAW 104-8—APR. 17, 1995 
"(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 govern-
ment does not make such reimbursement pa3nnent, the Secretary 
shall take the actions listed in this subsection. 
"(1) WITHHOLD ANNUAL FEDERAL PAYMENT.—^Notwithstand-
ing any other law, before turning over to the Authority (on 
behalf of the District government under section 205 of the 
District of Columbia Financial Responsibility and Management 
Assistance Act of 1995) any annual Federal payment appro-
priated to the District government for any fiscal year under 
title V of the District of Columbia Self-Government and Govern-
mental Reorganization Act (if any), the Secretary shall withhold 
from 
such annual 
Federal 
payment, and apply 
toward 
reimbursement for the payment not made, an amount equal 
to the amount needed to fully reimburse the Treasury for 
the payment not made. 
"(2) WITHHOLD OTHER FEDERAL PAYMENTS.—If, after the 
Secretary takes the action described 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 pa3anent, will 
be equal to the amount needed to fully reimburse the Treasury 
for the pa3anent not made. 
"(3) ATTACH AVAILABLE DISTRICT REVENUES.—If, after the 
Secretary takes the actions described 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 reimburse-
ment for the payment not made, an amount equal to the amount 
needed to fully reimburse the Treasury for the payment not 
made. 
"(4) TAKE OTHER ACTIONS.—If, after the Secretary takes 
the actions described in paragraphs (1) through (3), the Treas-
ury is not fully reimbursed, the Secretary shall take any and 
all other actions permitted by law to recover from the District 
government 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 Responsibility 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; 
"(4) the term 'financial plan and budget' has the meaning 
given such term under section 305(6) of such Act; and 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 131 
"(5) the term 'Secretary' means the Secretary of the Treas-
ury.". 
(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 sub-
section (b)(1) may be expended 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 pursu-
ant to title VI of the District of Columbia Revenue Act of 1939 
if there is an action filed by the Mayor or the Council which 
is pending against the Authority 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 Secretary of the Treasury 
shall deposit the annual Federal pajmient to the District of 
Columbia for the year authorized under title V of the District 
of Columbia Self-Government and Governmental Reorganiza-
tion Act into an escrow account held by the Authority, which 
shall allocate the funds to the Mayor at such intervals and 
in accordance with such terms and conditions as it considers 
appropriate to implement the financial plan for the year. In 
establishing such terms and conditions, the Authority shall 
give priority to using the Federal payment for cash flow 
management and the payment of outstanding bills owed by 
the District government. 
(2) EXCEPTION FOR AMOUNTS WITHHELD FOR ADVANCES.— 
Paragraph (1) shall not apply with respect to any portion of 
the Federal payment which is withheld by the Secretary of 
the Treasury in accordance with section 604 of title VI of 
the District of Columbia Revenue Act of 1939 (as added by 
section 204(c)) to reimburse the Secretary for advances made 
under title VI of such Act. 
(b) 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 para-
graph (1) may be expended by the Mayor only in accordance with 
the terms 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 revenues obtained and expenditures made 
by the District government 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 sub-
section (a), independent audits, or such other information as the 
Authority may obtain, that the revenues or expenditures of the 
109 STAT. 132 
PUBLIC LAW 104-8—APR. 17, 1995 
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 inconsistency. 
(c) CERTIFICATION OF VARIANCE.— 
(1) IN GENERAL.—^After requiring the Mayor to provide 
additional information under subsection (b), the Authority shall 
certify to the Council, the President, the Secretary of the Treas-
ury, and Congress that the District government is at variance 
with the financial plan and budget unless— 
(A)(i) the additional information provides an expla-
nation for the inconsistency which the Authority finds 
reasonable and appropriate, or 
(ii) the District government adopts or implements 
remedial action (including revising the financial plan and 
budget pursuant to section 202(e)) to correct the inconsist-
ency 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 reports described 
in subsection (a) on a monthly basis for such period as 
the Authority may require. 
(2) SPECIAL RULE FOR INCONSISTENCIES ATTRIBUTABLE TO 
ACTS OF CONGRESS.— 
(A) DETERMINATION BY AUTHORITY.—If the Authority 
determines that the revenues or expenditures of the Dis-
trict government during a control year are not consistent 
with the financial 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 govern-
ment for the year as enacted by Congress or as a result 
of any other law enacted by Congress which affects the 
District of Columbia, the Authority shall so notify the 
Mayor. 
(B) CERTIFICATION.—In the case of an inconsistency 
described in subparagraph (A), the Authority shall certify 
to the Council, the President, the Secretary of the Treasury, 
and Congress that the District government is at variance 
with the financial plan and budget unless the District 
government adopts or implements remedial action (includ-
ing 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— 
(1) the Authority may withhold any funds deposited with 
the Authority under section 204(b) or section 205(a) which 
would otherwise be expended on behalf of the District govern-
ment; and 
(2) the Secretary shall withhold funds otherwise payable 
to the District of Columbia under such Federal programs as 
the Authority may specify (other than funds dedicated to mak-
ing entitlement or benefit payments to individuals), in such 
amounts and under such other conditions as the Authority 
may specify. 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 133 
SEC. 
207. RECOMMENDATIONS ON FINANCIAL STABILITY AND 
MANAGEMENT RESPONSIBILITY. 
(a) IN GENERAL.—^The Authority may at any time submit rec-
ommendations to the Mayor, the Council, the President, and Con-
gress on actions the District government or the Federal Government 
may take to ensure compliance 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 relating 
t o -
ll) the management of the District government's financial 
affairs, including cash forecasting, information technology, plac-
ing controls on expenditures for personnel, reducing benefit 
costs, reforming procurement practices, and placing other con-
trols on expenditures; 
(2) the relationship between the District government and 
the Federal Government; 
(3) the structural relationship of departments, agencies, 
and independent agencies within the District government; 
(4) the modification of existing revenue structures, or the 
establishment of additional revenue structures; 
(5) the establishment of alternatives for meeting obligations 
to pay for the pensions of former District government employ-
ees; 
(6) modifications or transfers of the types of services which 
are the responsibility of and are delivered by the District 
government; 
(7) modifications of the types of services which are delivered 
by entities other than the District government under alternative 
service delivery mechanisms (including privatization 
and 
commercialization); 
(8) the effects of District of Columbia laws and court orders 
on the operations of the District government; 
(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 train-
ing 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 recommendations 
submitted under subsection (a) during 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 provides notice 
as to whether the District government will adopt the rec-
ommendations 
. 
(2) IMPLEMENTATION PLAN REQUIRED FOR ADOPTED REC-
OMMENDATIONS.—If the Mayor or the Council (whichever is 
applicable) notifies the Authority and Congress under para-
graph (1) that the District government will adopt any of the 
recommendations submitted under subsection (a), the Mayor 
or the Council (whichever is applicable) shall include in the 
109 STAT. 134 
PUBLIC LAW 104-8—APR. 17, 1995 
statement a written plan to implement the recommendation 
which includes— 
(A) specific performance measures to determine the 
extent to which the District government has adopted the 
recommendation; and 
(B) a schedule for auditing the District government's 
compliance with the plan. 
(3) EXPLANATIONS REQUIRED FOR RECOMMENDATIONS NOT 
ADOPTED.—If the Mayor or the Council (whichever is applicable) 
notifies the Authority, the President, and Congress under para-
graph (1) that the District government will not adopt any 
recommendation submitted under subsection (a) which the Dis-
trict government has authority to adopt, the Mayor or the 
Council shall include in the statement explanations for the 
rejection of the recommendations. 
(c) 
IMPLEMENTATION 
OF REJECTED 
RECOMMENDATIONS BY 
AUTHORITY.— 
(1) IN GENERAL.—If the Mayor or the Council (whichever 
is applicable) notifies the Authority, the President, and Con-
gress under subsection (b)(1) that the District government will 
not adopt any recommendation submitted under subsection (a) 
which 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 Committee on Government Reform 
and Oversight of the House of Representatives and the Commit-
tee on Governmental Affairs of the Senate. 
(2) EFFECTIVE DATE.—^This subsection shall apply with 
respect to recommendations of the Authority made after the 
expiration of the 6-month period which begins on the date 
of the enactment of this Act. 
SEC. 208. SPECIAL RULES FOR FISCAL YEAR 1996. 
(a) ADOPTION OF TRANSITION BUDGET.—Notwithstanding 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 appointment of its 
members, the Authority shall review the proposed budget for 
the District of Columbia for such fiscal year submitted to Con-
gress under section 446 of the District of Columbia Self-Govern-
ment 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 of Columbia Self-Govem-
ment and Governmental Reorganization 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 Grovernmental Reorganiza-
tion Act, and shall submit any recommendations for modifica-
tions to such financial plan and budget to promote the financial 
stability of the District government to the Mayor, the Council, 
the President, and Congress. 
(2) Not later than 15 days after receiving the recommenda-
tions of the Authority submitted under paragraph (1), the Coun-
cil (in consultation with the Mayor) shall promptly adopt a 
revised budget for the fiscal year (in this section referred to 
tS^*-C 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 135 
as the "transition budget"), and shall submit the transition 
budget to the Authority, the President, and Congress. 
(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 disapproved 
by the Mayor and reenacted by the Council under section 
404(f) of the District of Columbia Self-Government and Govern-
mental Reorganization Act, as amended by section 202(f)(2)), 
and shall include in the report such recommendations for revi-
sions to the transition budget as the Authority considers appro-
priate to promote the financial stability of the District govern-
ment 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 estab-
lished by the Authority). 
(2) ADOPTION BY COUNCIL.—In accordance with the proce-
dures 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 financial plan and budget) prior 
to the submission by the Mayor of the financial plan and 
budget for fiscal year 1997 under section 202(a); and 
(B) the financial plan and budget adopted by the Coun-
cil (and, in the case of a financial plan and budget dis-
approved by the Authority, together with the financial plan 
and budget approved and recommended by the Authority) 
shall be submitted to Congress (in accordance with the 
procedures applicable under such section) as a supple-
mental budget request for fiscal year 1996 (in accordance 
with section 446 of the District of Columbia Self-Govern-
ment and Governmental Reorganization Act). 
(3) TRANSITION BUDGET AS TEMPORARY FINANCIAL PLAN AIMD 
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 TREASURY.— 
(1) MONTHLY DETERMINATION OF PROGRESS TOWARD FINAN-
CIAL PLAN AND BUDGET.—During each month of fiscal year 
1996 prior to the adoption of the financial plan and budget, 
the Authority shall determine whether the District government 
is making appropriate progress in preparing and adopting a 
financial plan and budget for the fiscal year under this subtitle. 
(2) CERTIFICATION.—The Authority shall provide the Presi-
dent 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 notify the President and Congress that the 
109 STAT. 136 
PUBLIC LAW 104-8—APR. 17, 1995 
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 ADVANCES IF CER-
TIFICATION IN EFFECT.—^At any time during which a certification 
under paragraph (2) is in effect, the 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 following events 
(as determined by the Authority based upon information obtained 
through the Mayor, the Inspector General of the District of Colum-
bia, or such other sources as the Authority considers appropriate): 
(1) The requisitioning by the Mayor of advances 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 existence of any unreimbursed amounts obtained pursu-
ant to such authority. 
(2) The failure of the District government to provide suffi-
cient 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 District government 
at the end of any quarter of the fiscal year in excess of the 
difference between the estimated 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 remainder of 
the fiscal year together with the first 6 months of the succeeding 
fiscal year (as determined by the Authority in consultation 
with the Chief Financial 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 (occurring after the 
date of the enactment of this Act) the expenditures made 
by the District government 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 contained in the com-
prehensive annual financial report for the District of Co-
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 137 
lumbia under section 448(a)(4) of the District of Columbia 
Self-Government and Governmental Reorganization Act). 
(2) CONSULTATION WITH INSPECTOR GENERAL.—In making 
the determination under this subsection, the Authority shall 
consult with the Inspector General of the District of Columbia. 
(c) CONTROL PERIOD DEEMED TO EXIST UPON ENACTMENT.— 
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 requirements 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 District government, in such amounts and in such manner 
as the Authority considers appropriate. 
(2) SPECIAL RULE FOR INSTRUMENTALITIES WITH INDEPEND-
ENT BORROWING AUTHORITY.—In the case of an agency or 
instrumentality of the District 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 obligations 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 BORROWING 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, 
consistent with the specified purposes of such funds and the 
applicable 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 
Reorganization Act and for any other purpose which the Authority 
considers appropriate. 
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 entities purchasing bonds, 
notes, or other obligations issued pursuant to this subtitle. 
(b) DEDICATION OF REVENUE STREAM FROM DISTRICT GOVERN-
MENT.—^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 
Gk)vernment, to the Authority for purposes of securing repay-
109 STAT. 138 
PUBLIC LAW 104-8—APR. 17, 1995 
merit 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 Author-
ity immediately upon collection. 
SEC. 
2
1
3
. 
ESTABLISHMENT 
OF 
DEBT 
SERVICE 
RESERVE 
FUND. 
(a) IN GENERAL.—^As a condition for the issuance of bonds, 
notes, or other obligations pursuant to this subtitle, the Authority 
shall establish a debt service reserve fund in accordance with this 
section. 
(b) REQUIREMENTS FOR FUND.— 
(1) FUND DESCRIBED.—^A debt service reserve fund estab-
lished by the Authority pursuant to this subsection shall consist 
of such funds as the Authority 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 obligations are 
secured by such fund. 
(2) USES OF FUNDS.—^Amounts in a debt service 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 estab-
lished for such fund in the resolution of the Authority 
creating such fund, except for withdrawals for the purpose 
of making payments when due of 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 incre-
ments to, any debt service reserve fund due to the invest-
ment thereof to other funds or accounts of the Authority 
(to the extent such transfer does not reduce the amount 
of the debt service reserve fund below the minimum reserve 
fund requirement 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. 
SEC. 214. OTHER REQUIREMENTS FOR ISSUANCE OF BONDS. 
(a) MINIMUM DEBT SERVICE RESERVE FUND REQUIREMENT.— 
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 
PUBLIC lAW 104-8—APR. 17, 1995 
109 STAT. 139 
fund to fall below the minimum reserve requirement for such fund, 
unless 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 exceed the minimum reserve fund require-
ment 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 subtitle 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 Grovernmental Reorganization Act. 
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 Authority 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 
CON-
TROL 
YEAR, 
(a) IN GENERAL.—During the period beginning upon the termi-
nation 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 appropriate, the Author-
ity shall prepare a report analyzing the budget and submit 
the report to the Mayor, the Council, the President, and Con-
gress. 
(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 deter-
mines that a risk exists that a control period may be initiated 
pursuant 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 during such period. 
(b) REQUIRING MAYOR TO SUBMIT BUDGETS TO AUTHORITY.— 
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-
109 STAT. 140 
PUBLIC LAW 104-8—APR. 17, 1995 
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 the District 
government in achieving financial stability and management effi-
ciency, including— 
(1) assisting the District government in avoiding defaults, 
eliminating and liquidating deficits, maintaining sound budg-
etary practices, and avoiding interruptions in the delivery of 
services; 
(2) assisting the District government in improving the 
delivery of municipal services, the training and effectiveness 
of personnel of the District government, and the efficiency 
of management and supervision; and 
(3) making recommendations to the President for trans-
mission to Congress on changes to this Act or other Federal 
laws, or other actions of the Federal 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 Columbia, to prepare and submit 
such reports as the Authority considers appropriate to assist it 
in carrying out its responsibilities under this Act, including submit-
ting copies of any reports regarding revenues, expenditures, budg-
ets, costs, plans, operations, estimates, and other financial or budg-
etary 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 government in meet-
ing 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 
report to Congress analyzing the completeness and accuracy 
of such reports. 
(2) SUBMISSION OF REPORTS BY MAYOR.—Section 456 
of 
the District of Columbia Self-Government and Governmental 
Reorganization Act, as added by section 3(a) of the Federal 
108 Stat. 3488. 
Payment Reauthorization Act of 1994, is amended by adding 
at the end the following new subsection: 
PUBLIC l A W 104-8—APR. 17, 1995 
109 STAT. 141 
"(e) SUBMISSION OF REPORTS TO DISTRICT OF COLUMBIA FINAN-
CIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY.— 
In the case of any report submitted 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 Respon-
sibility and Management Assistance Act of 1995, the Mayor shall 
submit the report to the District of Columbia Financial Responsibil-
ity and Management Assistance Authority established 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 GOVERN-
MENT.—^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 govern-
ment) which the Authority determines will adversely affect the 
District government's ability to comply with an approved financial 
plan and budget under subtitle A or will otherwise have a significant 
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 section available to 
the public, except to the extent that the Authority determines 
that the report contains confidential material. 
TITLE III—MISCELLANEOUS 
PROVISIONS 
SE^. 301. OTHER DISTRICT BUDGET REFORMS. 
(a) INCLUSION OF ALL FUNDS OF DISTRICT IN BUDGET OP DIS-
TRICT GOVERNMENT.— 
(1) IN GENERAL.—Section 103 of the District of Columbia 
Self-Government and Governmental Reorganization Act (sec. 87 Stat. 777. 
1-202, D.C. Code) is amended— 
(A) by amending paragraph (10) to read as follows: 
"(10) The term 'District revenues' means all funds derived 
from taxes, fees, charges, miscellaneous receipts, the annual 
Federal pa3niient to the District authorized under title V, grants 
and other forms of financial assistance, or the sale of bonds, 
notes, or other obligations, and any funds administered by 
the District government under cost sharing arrangements."; 
(B) by amending paragraph (14) to read as follows: 
"(14) The term 'resources' means revenues, balances, enter-
prise or other revolving funds, and funds realized from borrow-
ing."; and 
(C) by amending paragraph (15) to read as follows: 
"(15) The term 'budget' means the entire request for appro-
priations or loan or spending authority 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.". 
109 STAT. 142 
PUBLIC LAW 104-8—APR. 17, 1995 
(2) EFFECTIVE DATE.—^The amendments made by paragraph 
(1) shall apply with respect to revenues, resources, and budgets 
of the District of Columbia 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, 
87 Stat. 801. 
D.C. Code) is amended by adding at the end the following: 
"After the adoption of the annual budget for a fiscal year 
(beginning with the annual 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 reprogram-
ming and the Council approves the request, but only if any 
additional expenditures provided under such request for an 
activity are off'set 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 District of Columbia Self-Govern-
87 Stat. 798. 
ment and Governmental Reorganization Act (sec. 47-301, D.C. 
Code) is amended by adding at the end the following new subsection: 
"(d) The Mayor shall prepare and submit to the Council a 
proposed supplemental or deficiency budget recommendation under 
subsection (c) if the Council by resolution requests the Mayor to 
submit such a recommendation.". 
(d) REQUIRING BUDGETARY IMPACT STATEMENTS TO ACCOMPANY 
ACTS OF COUNCIL.— 
(1) IN GENERAL.—Section 602(c) of the District of Columbia 
87 Stat. 814. 
Self-Govemment and Governmental Reorganization Act (sec. 
l-233(c), D.C. Code) is amended by adding at the end the 
following new paragraph: 
"(3) The Council shall submit with each Act transmitted 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 ASTNUAL FEDERAL PAY-
MENT.—Section 503(c) of the District of Columbia Self-Government 
and Governmental Reorganization Act (sec. 47-3406.1(c), D.C. 
Code), as added by section 2 of the Federal Payment Reauthoriza-
108 Stat. 3488. 
tion Act of 1994, is amended by striking "fiscal year 1996" and 
inserting "each of the fiscal years 1996, 1997, 1998, and 1999". 
SEC. 302. ESTABLISHMENT OF CHIEF FINANCIAL OFFICER OF DIS-
TRICT OF COLUMBIA. 
(a) IN GENERAL.—Part B of title IV of the District of Columbia 
87 Stat. 789. 
Self-Govemment and Governmental Reorganization 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 Colum-
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 143 
bia (hereafter referred to as the 'Office'), which shall be headed 
by the Chief Financial Officer of the District of Columbia (here-
after 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 Columbia, who shall be appointed 
by the Chief Financial 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 Officer under sub-
section (b), the functions and personnel 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 individuals 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 Authority may 
remove such individuals from 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 approval 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 appointed by the Mayor as fol-
lows: 
"(i) Prior to the appointment of the Chief Financial 
Officer, the Authority may submit recommendations 
for the appointment to the Mayor. 
"(ii) In consultation with the Authority and the 
Council, the Mayor shall nominate an individual for 
appointment and notify 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 appointment, the Authority may submit rec-
ommendations for the appointment. 
109 STAT. 144 
PUBLIC LAW 104-8—APR. 17, 1995 
"(2) REMOVAL.— 
"(A) CONTROL YEAR.—During a control year, the Chief 
Financial Officer may be removed for cause by the Author-
ity 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 that the Chief Financial Officer may 
only be removed 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 Executive 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 Responsibility and Management Assist-
ance 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 presented 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 policies within the Offi-
cer'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 reve-
nues), including proposed revenues, which shall be binding 
on the Mayor and the Council for purposes of preparing 
and submitting the budget of the District government 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 Dis-
trict 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 appropriations are not exceeded. 
"(7) Maintaining systems of accounting and internal control 
designed to provide— 
"(A) full disclosure of the financial impact of the activi-
ties of the District government; 
"(B) adequate financial information needed by the Dis-
trict government for management purposes; 
"(C) effective control over, and accountability for, all 
funds, property, and other assets of the District of Colum-
bia; and 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 145 
"(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 assess-
ment of all property subject to assessment and special assess-
ments within the corporate limits of the District of Columbia 
for taxation, preparing tax maps, and providing such notice 
of taxes and special assessments (as may be required by law), 
"(10) Supervising and assuming responsibility for the levy-
ing and collection of all taxes, special assessments, 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 Columbia from any source (including the Authority). 
"(11) Maintaining custody of all public funds belonging 
to or under the control of the District government (or any 
department or agency of the District government), and deposit-
ing all amounts paid in such depositories and under such 
terms and conditions 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 safe-
keeping 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 appropriations 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 year, and (with respect to appropriations and funds avail-
able for an indefinite period and all authorizations to create 
obligations by contract in advance of appropriations) apportion-
ing the total of such appropriations, funds, or authorizations 
in the most effective 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, vouchers, bills, and 
claims to be used by all agencies, offices, and instrumentalities 
of the District government. 
"(16) Certifying and approving prior to payment 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, pay-
rolls, claims, demands, or charges. 
"(17) In coordination with the Inspector CJeneral of the 
District of Columbia, performing internal audits of accounts 
and operations and records of the District government, includ-
ing the examination of any accounts or records of financial 
transactions, giving due consideration to the effectiveness of 
accounting systems, internal control, and related administrative 
practices of the departments and agencies of the District 
government. 
99-194 O - 95 - 6 : QL 3 Part 1 
109 STAT. 146 
PUBLIC LAW 104-8—APR. 17, 1995 
"(d) FUNCTIONS DURING ALL YEARS.—At all times, the Chief 
Financial Officer shall have the following duties: 
"(1) Exercising responsibility for the administration and 
supervision of the District of Columbia Treasurer (except that 
the Chief Financial Officer may delegate any portion of such 
responsibility as the Chief Financial Officer considers appro-
priate and consistent with efficiency). 
"(2) Administering all borrowing programs of the District 
government for the issuance of long-term and short-term indebt-
edness. 
"(3) Administering the cash management program of the 
District government, including the investment of surplus funds 
in governmental and non-governmental interest-bearing securi-
ties and accounts. 
"(4) Administering the centralized District government pay-
roll and retirement systems. 
"(5) Governing the 
accounting policies and 
systems 
applicable to the District government. 
"(6) Preparing appropriate annual, quarterly, and monthly 
financial reports of the accounting and financial operations 
of the District government. 
Reports. 
"(7) Not later than 120 days after the end of each fiscal 
year (beginning with fiscal year 1995), preparing the complete 
financial statement and report on the activities of the District 
government for such fiscal year, for the use of the Mayor 
under section 448(a)(4) of the District of Columbia Self-Govem-
ment and Governmental Reorganization Act. 
"(e) FUNCTIONS OF TREASURER.—^At all times, the Treasurer 
shall have the following duties: 
Reports. 
"(1) Assisting the Chief Financial Officer in reporting reve-
nues received by the District government, including submitting 
annual and quarterly reports concerning the cash position of 
the District government not later than 60 days after the last 
day of the quarter (or year) involved. Such reports shall include: 
"(A) Comparative reports of revenue and other receipts 
by source, including tax, nontax, and Federal revenues, 
grants and reimbursements, capital program loans, and 
advances. Each source shall be broken down into specific 
components. 
"(B) Statements of the cash flow of the District govern-
ment for the preceding quarter or year, including receipts, 
disbursements, net changes in cash inclusive of the begin-
ning balance, cash and investment, and the ending balance, 
inclusive of cash and investment. Such statements shall 
reflect the actual, planned, better or worse dollar amounts 
and the percentage change with respect to the current 
quarter, year-to-date, and fiscal year. 
"(C) Quarterly cash flow forecast for the quarter or 
year involved, reflecting receipts, disbursements, 
net 
change in cash inclusive of the beginning balance, cash 
and investment, and the ending balance, inclusive of cash 
and investment with respect to the actual dollar amounts 
for the quarter or year, and projected dollar amounts for 
each of the 3 succeeding quarters. 
Reports. 
"(D) Monthly reports reflecting a detailed summary 
analysis of all District of Columbia government invest-
ments, including, but not limited to— 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 147 
"(i) the total of long-term and short-term invest-
ments; 
"(ii) a detailed summary analysis of investments 
by type and amount, including purchases, sales (matu-
rities), and interest; 
"(iii) an analysis of investment portfolio mix by 
type and amount, including liquidity, quality/risk of 
each security, and similar information; 
"(iv) an analysis of investment strategy, including 
near-term strategic plans and projects of investment 
activity, as well as forecasts of future investment 
strategies based on anticipated market conditions, and 
similar information; 
"(v) an analysis of cash utilization, including— 
"(I) comparisons of budgeted percentages of 
total cash to be invested with actual percentages 
of cash invested and the dollar amounts; 
"(II) comparisons of the next return on 
invested cash expressed in percentages (yield) with 
comparable market indicators and established Dis-
trict of Columbia government yield objectives; and 
"(III) comparisons of estimated dollar return 
against actual dollar yield. 
"(E) Monthly reports reflecting a detailed summary Reports, 
analysis of long-term and short-term borrowings inclusive 
of debt as authorized by section 603, in the current fiscal 
year and the amount of debt for each succeeding fiscal 
year not to exceed 5 years. All such reports shall reflect— 
"(i) the amount of debt outstanding by type of 
instrument; 
"(ii) the amount of authorized and unissued debt, 
including availability of short-term lines of credit, 
United 
States Treasury 
borrowings, and 
similar 
information; 
"(iii) a maturity schedule of the debt; 
"(iv) the rate of interest payable upon the debt; 
and 
"(v) the amount of debt service requirements and 
related debt service reserves. 
"(2) Such other functions assigned to the Chief Financial 
Officer under subsection (c) or subsection (d) as the Chief 
Financial Officer may delegate. 
"(f) DEFINITIONS.—In this section— 
"(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 Responsibility and Management Assistance Act of 
1995; 
"(2) the term 'control year' has the meaning given such 
term under section 305(4) of such Act; and 
"(3) the term 'District government' has the meaning given 
such term under section 305(5) of such Act.". 
(b) PROHIBITING DELEGATION OF CHIEF FINANCIAL OFFICER'S 
AUTHORITY.—Section 422(6) of the District of Columbia Self-Govern-
ment and Grovemmental Reorganization Act (sec. 1-242(6), D.C. 
87 Stat. 791. 
Code) is amended by adding at the end the following: "Nothing 
in the previous sentence may be construed to permit the Mayor 
109 STAT. 148 
PUBLIC LAW 104-8—APR. 17, 1995 
Repeal. 
Establishment. 
to delegate any functions assigned to the Chief Financial Officer 
of the District of Columbia under section 424, without regard to 
whether such functions are assigned to the Chief Financial Officer 
under such section during a control year (as defined in section 
305(4) of the District of Columbia Financial Responsibility and 
Management Assistance Act of 1995) or during any other year.". 
(c) CONFORMING AMENDMENT.—Effective upon the appointment 
of the Chief Financial Officer of the District of Columbia under 
section 424(b) of the District of Columbia Self-Government and 
Governmental Reorganization Act (as added by subsection (a)), D.C. 
Law 3-138 (sec. 47-314 et seq., D.C. Code) is repealed. 
(d) CLERICAL AMENDMENT.—^The table of contents of part B 
of title IV of the District of Columbia Self-Government and Govern-
mental Reorganization Act is amended by adding at the end the 
following new item: 
"Sec. 424. Chief Financial Officer of the District of Columbia.". 
SEC. 303. REVISIONS TO POWERS AND DUTIES OF INSPECTOR GEN-
ERAL OF DISTRICT OF COLUMBIA. 
(a) APPOINTMENT AND TERM OF SERVICE; INDEPENDENCE OF 
BUDGET.—Section 208(a) of the District of Columbia Procurement 
Practices Act of 1985 (sec. l-1182.8(a), D.C. Code) is amended 
by striking paragraphs (1) and (2) and inserting the following: 
"(1)(A) There is created within the executive branch of the 
government of the District of Columbia the Office of the Inspector 
General. The Office shall be headed by an Inspector General 
appointed pursuant to subparagraph (B), who shall serve for a 
term of 6 years and shall be subject to removal only for cause 
by the Mayor (with the approval of the District of Columbia Finan-
cial Responsibility and Management Assistance Authority in a con-
trol year) or (in the case of a control year) by the Authority. 
The Inspector General may be reappointed for additional terms. 
"(B) During a control year, the Inspector General shall be 
appointed by the Mayor as follows: 
"(i) Prior to the appointment of the Inspector General, 
the Authority may submit recommendations for the appoint-
ment to the Mayor. 
"(ii) In consultation with the Authority and the Council, 
the Mayor shall nominate an individual for appointment and 
notify 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. 
"(C) During a year which is not a control year, the Inspector 
General shall be appointed by the Mayor with the advice and 
consent of the Council. Prior to appointment, the Authority may 
submit recommendations for the appointment. 
"(D) The Inspector General shall be appointed without regard 
to party affiliation and solely on the basis of integrity and dem-
onstrated ability in accounting, auditing, financial management 
analysis, public administration, or investigations. 
"(E) The Inspector General 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 Executive Schedule. 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 149 
"(2) The annual budget for the Office shall be adopted as 
follows: 
"(A) The Inspector General shall prepare and submit to 
the Mayor, for inclusion in the annual budget of the District 
of Columbia under part D of title IV of the District of Columbia 
Self-Government and Governmental Reorganization Act for the 
year, annual estimates of the expenditures and appropriations 
necessary for the operation of the Office for the year. All such 
estimates shall be forwarded by the Mayor to the Council 
of the District of Columbia for its action pursuant to sections 
446 and 603(c) of such Act, without revision but subject to 
recommendations. Notwithstanding any other provision of such 
Act, the Council may comment or make recommendations 
concerning such estimates, but shall have no authority to revise 
such estimates. 
"(B) Upon receipt of the annual Federal pa3niient for the 
District of Columbia authorized under title V of the District 
of Columbia Self-Government and Governmental Reorganiza-
tion Act, the Mayor shall deposit a portion of the pa5rment 
(equal to the estimate of necessary appropriations described 
in subparagraph (A)) into a dedicated fund within the govern-
ment of the District of Columbia. 
"(C) Amounts deposited in the dedicated fund described 
in subparagraph (B) shall be available solely for the operation 
of the Office, and shall be paid to the Inspector General by 
the Mayor (acting through the Chief Financial Officer of the 
District of Columbia) in such installments and at such times 
as the Inspector General requires.". 
(b) ADDITIONAL POWERS AND DUTIES.— 
(1) IN GENERAL.—Section 208(a)(3) of the District of Colum-
bia Procurement Practices Act of 1985 (sec. l-1182.8(a)(3), D.C. 
Code) is amended— 
(A) by striking "and" at the end of subparagraph (E); 
(B) by striking the period at the end of subparagraph 
(F) and inserting a semicolon; and 
(C) by adding at the end the following new subpara-
graphs: 
"(G) Pursuant to a contract described in paragraph (4), 
provide certifications under section 602(b)(5) of title VI of the 
District of Columbia Revenue Act of 1939; 
"(H) Pursuant to a contract described in paragraph (4), 
audit the complete financial statement and report on the activi-
ties of the District government for such fiscal year, for the 
use of the Mayor imder section 448(a)(4) of the District of 
Columbia Self-Government and Governmental Reorganization 
Act; and 
"(I) Not later than 30 days before the beginning of each Audits, 
fiscal year (beginning with fiscal year 1996) and in consultation 
with the Mayor, the Council, and the Authority, establish an 
annual plan for audits to be conducted under this paragraph 
during the fiscal year under which the Inspector General shall 
report only those variances which are in an amount equal 
to or greater than $1,000,000 or 1 percent of the applicable 
annual budget for the program in which the variance is found 
(whichever is lesser).". 
109 STAT. 150 
PUBLIC LAW 104-8—APR. 17, 1995 
(2) LIMITATION ON CONTRACT WITH OUTSIDE AUDITOR.—Sec-
tion 208(a) of such Act (sec. l-1182.8(a), D.C. Code) is amended 
by adding at the end the following new paragraph: 
"(4) The Inspector (General shall enter into a contract with 
an auditor who is not an officer or employee of the Office to— 
"(A) audit the financial statement and report described 
in paragraph (3)(H) for a fiscal year, except that the financial 
statement and report may not be audited by the same auditor 
(or an auditor employed by or affiliated with the same auditor) 
for more than 3 consecutive fiscal years; and 
"(B) audit the certification described in paragraph (3)(G).". 
(3) SUBPOENA POWER.—Section 208(c) of such Act (sec. 1-
1182.8(c), D.C. Code) is amended— 
(A) by striking "(c)" and inserting "(c)(1)"; and 
(B) by adding at the end the following new paragraph: 
"(2)(A) The Inspector General may issue subpoenas requiring 
the attendance and testimony of witnesses and the production of 
any evidence relating to any matter under investigation by the 
Inspector General. 
"(B) If a person refuses to obey a subpoena issued under 
subparagraph (A), the Inspector General may apply to the Superior 
Court of the District of Columbia for an order requiring that person 
to appear before the Inspector General to give testimony, produce 
evidence, or both, relating to the matter under investigation. Any 
failure to obey the order of the court may be punished by the 
Superior Court as civil contempt.". 
(4) REFERRAL OF FINDINGS OF CRIMINAL ACTIVITY TO ATTOR-
NEY GENERAL.—Section 208 of such Act (sec. 1-1182.8, D.C. 
Code) is amended by adding at the end the following new 
subsection: 
Reports. 
"(f) In carrying out the duties and responsibilities established 
under this section, the Inspector General shall report expeditiously 
to the Attorney General whenever the Inspector General has reason-
able grounds to believe there has been a violation of Federal or 
District criminal law.". 
(c) REVISION OF CURRENT POWERS AND DUTIES.— 
(1) LIAISON REPRESENTATIVE FOR ALL EXTERNAL AUDITS OF 
DISTRICT GOVERNMENT.—Section 208(a)(3)(B) of such Act (sec. 
1-1182.8(a)(3)(B), D.C. Code) is amended by striking "executive 
branch". 
(2) 
APPLICATION OF GENERALLY ACCEPTED ACCOUNTING 
PRINCIPLES.—Section 208(b) of such Act (sec. l-1182.8(b), D.C. 
Code) is amended 
by inserting "accounting 
and" 
after 
"accepted". 
(3) ACCESS TO ALL NECESSARY RECORDS.—Section 208(c)(1) 
of such Act (sec. l-1182.8(c), D.C. Code), as amended by sub-
section (b)(3), is amended by striking "relating to contracts 
and procurement". 
(4) SUBMISSION OF REPORTS TO AUTHORITY DURING CONTROL 
YEAR.—Section 208(d) of such Act (sec. l-1182.8(d), D.C. Code) 
is amended— 
(A) in paragraph (1), by striking "the Mayor and the 
Council" and inserting "the Authority (or, with respect 
to a fiscal year which is not a control year, the Mayor 
and the Council)"; and 
(B) in paragraph (2), by striking "the Mayor" and 
inserting "the Authority, the Mayor,". 
-•^^*-i>%-
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 151 
(5) MAKING REPORTS PUBLICLY AVAILABLE.—Section 208(d) 
of such Act (sec. l-1182.8(d), D.C. Code) is amended by adding 
at the end the following new paragraph: 
"(4) The Inspector GJeneral shall make each report submitted 
under this subsection available to the public, except to the extent 
that the report contains information determined by the Inspector 
General to be privileged.". 
(6) RESPONDING TO REQUESTS OF AUTHORITY.—Section 
208(e) of such Act (sec. l-1182.8(e), D.C. Code) is amended 
by striking "the Director" and inserting "the Authority. 
(d) DEFINITIONS.—Section 208 of such Act (sec. 1-1182.8, D.C. 
Code), as amended by subsection (b)(4), is amended by adding 
at the end the following new subsection: 
"(g) In this section— 
"(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 Responsibility and Management Assistance Act of 
1995; 
"(2) the term 'control year' has the meaning given such 
term under section 305(4) of such Act; and 
"(3) the term 'District government' has the meaning given 
such term under section 305(5) of such Act.". 
(e) DEADLINE FOR APPOINTMENT.— 
(1) IN GENERAL.—^Not later than 30 days after its members 
are appointed, the Authority shall appoint the Inspector Gen-
eral of the District of Columbia pursuant to section 208(a)(1) 
of the District of Columbia Procurement Practices Act of 1985 
(as amended by subsection (a)). 
(2) TRANSITION RULE.—^The term of service of the individual 
serving as the Inspector General under section 208(a) of the 
District of Columbia Procurement Practices Act of 1985 prior 
to the appointment of the Inspector General by the Authority 
under section 208(a)(1) of such Act (as amended by subsection 
(a)) shall expire upon the appointment of the Inspector General 
by the Authority. 
SEC. 304. COUNCIL APPROVAL OF CERTAIN CONTRACTS. 
(a) IN GENERAL.—Section 451 of the District of Columbia Self-
Government and Governmental Reorganization Act (sec. 1-1130, 87 Stat. 803. 
D.C. Code) is amended— 
(1) by amending the heading to read as follows: "SPECIAL 
RULES REGARDING CERTAIN CONTRACTS"; 
(2) by striking "No contract" and inserting "(a) CONTRACTS 
EXTENDING BEYOND ONE YEAR.—No contract"; and 
(3) by adding at the end the following new subsection: 
"(b) CONTRACTS EXCEEDING CERTAIN AMOUNT.— 
"(1) IN GENERAL.—^No contract involving expenditures in 
excess of $1,000,000 during a 12-month period may be made 
unless the Mayor submits the contract to the Council for its 
approval and the Council approves the contract (in accordance 
with criteria established by act of the Council). 
"(2) DEEMED AI'PROVAL.—For purposes of paragraph (1), 
the Council shall be deemed to approve a contract if— 
"(A) during the 10-day period beginning on the date 
the Mayor submits the contract to the Council, no member 
109 STAT. 152 
PUBLIC LAW 104-8—APR. 17, 1995 
of the Council introduces a resolution approving or dis-
approving the contract; or 
"(B) during the 45-calendar day period beginning on 
the date the Mayor submits the contract to the Council, 
the Council does not disapprove the contract.". 
(b) CLERICAL AMENDMENT.—^The table of contents of the District 
of Columbia Self-Government and Grovernmental Reorganization 
87 Stat. 775. 
Act is amended by amending the item relating to section 451 
to read as follows: 
"Sec. 45 L Special rules regarding certain contracts.". 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to contracts made on or after the date of the enactment 
of this Act. 
SEC. 305. DEFINITIONS. 
In this Act, the following definitions apply: 
(1) The term "Authority" means the District of Columbia 
Financial Responsibility and Management Assistance Authority 
established under section 101(a). 
(2) The term "Council" means the Council of the District 
of Columbia. 
(3) The term "control period" has the meaning given such 
term in section 209. 
(4) The term "control year" means any fiscal year for which 
a financial plan and budget approved by the Authority under 
section 202(b) is in effect, and includes fiscal year 1996. 
(5) The term "District government" means the government 
of the District of Columbia, including any department, agency 
or instrumentality of the government of the District of Colum-
bia; any independent agency of the District of Columbia estab-
lished under part F of title IV of the District of Columbia 
Self-Government and Governmental Reorganization Act or any 
other agency, board, or commission established by the Mayor 
or the Council; the courts of the District of Columbia; the 
Council of the District of Columbia; and any other agency, 
public authority, or public benefit corporation which has the 
authority to receive monies directly or indirectly from the Dis-
trict of Columbia (other than monies received from the sale 
of goods, the provision of services, or the loaning of funds 
to the District of Columbia), except that such term does not 
include the Authority. 
PUBLIC LAW 104-8—APR. 17, 1995 
109 STAT. 153 
(6) The term "financial plan and budget" means a financial 
plan and budget described in subtitle A of title II, and includes 
the budgets of the District government for the fiscal years 
which are subject to the financial plan and budget (as described 
in section 201(b)). 
(7) The term "Mayor" means the Mayor of the District 
of Columbia. 
Approved April 17, 1995. 
LEGISLATIVE HISTORY—H.R. 1345: 
HOUSE REPORTS: No. 104-96 (Comm. on Government Reform and Oversight). 
CONGRESSIONAL RECORD, Vol. 141 (1995): 
Apr. 3, considered and passed Hoiise. 
Apr. 6, considered and passed Senate, amended. 
Apr. 7, House conciorred in Senate amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 31 (1995): 
Apr. 17, Presidential remarks.