[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1345 Engrossed in House (EH)]







104th CONGRESS

  1st Session

                               H. R. 1345

_______________________________________________________________________

                                 AN ACT

   To eliminate budget deficits and management inefficiencies in the 
government of the District of Columbia through the establishment of the 
District of Columbia Financial Responsibility and Management Assistance 
                   Authority, and for other purposes.






104th CONGRESS
  1st Session
                                H. R. 1345

_______________________________________________________________________

                                 AN ACT


 
   To eliminate budget deficits and management inefficiencies in the 
government of the District of Columbia through the establishment of the 
District of Columbia Financial Responsibility and Management Assistance 
                   Authority, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``District of 
Columbia Financial Responsibility and Management Assistance Act of 
1995''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; purpose.
          TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY

Sec. 101. District of Columbia Financial Responsibility and Management 
                            Assistance Authority.
Sec. 102. Executive director and staff of Authority.
Sec. 103. Powers of Authority.
Sec. 104. Exemption from liability for claims.
Sec. 105. Treatment of actions arising from act.
Sec. 106. Funding for operation of Authority.
Sec. 107. Suspension of activities.
Sec. 108. Application of laws of District of Columbia to Authority.
                TITLE II--RESPONSIBILITIES OF AUTHORITY

Subtitle A--Establishment and Enforcement of Financial Plan and Budget 
                        for District Government

Sec. 201. Development of financial plan and budget for District of 
                            Columbia.
Sec. 202. Process for submission and approval of financial plan and 
                            annual District budget.
Sec. 203. Review of activities of District government to ensure 
                            compliance with approved financial plan and 
                            budget.
Sec. 204. Restrictions on borrowing by District during control year.
        ``Sec. 601. Transitional provision for short-term advances.
        ``Sec. 602. Short-term advances for seasonal cash-flow 
                            management.
        ``Sec. 603. Security for advances.
        ``Sec. 604. Reimbursement to the Treasury.
        ``Sec. 605. Definitions.
Sec. 205. Deposit of annual Federal payment with Authority.
Sec. 206. Effect of finding of non-compliance with financial plan and 
                            budget.
Sec. 207. Recommendations on financial stability and management 
                            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.
Sec. 213. Establishment of debt service reserve fund.
Sec. 214. Other requirements for issuance of bonds.
Sec. 215. No full faith and credit of the United States.
                 Subtitle C--Other Duties of Authority

Sec. 221. Duties of Authority during year other than control year.
Sec. 222. General assistance in achieving financial stability and 
                            management efficiency.
Sec. 223. Obtaining reports.
Sec. 224. Reports and comments.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Other District budget reforms.
Sec. 302. Establishment of Chief Financial Officer of District of 
                            Columbia.
Sec. 303. Revisions to powers and duties of Inspector General of 
                            District of Columbia.
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 government 
        fails to provide its citizens with effective and efficient 
        services in areas such as education, health care, crime 
        prevention, 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 causing the 
        migration of residents and business 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 
        effectively addressed in a single year.
            (7) The ability of the District government to obtain funds 
        from capital markets in the future will be severely diminished 
        without Congressional action to restore its financial 
        stability.
            (8) The failure to improve the financial situation of the 
        District government will adversely affect the long-term 
economic health of the entire National Capital region.
            (9) The efficient operation of the Federal Government may 
        be adversely affected by the current problems of the District 
        of Columbia not only through the services the District 
        government 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:
            (1) To eliminate budget deficits and cash shortages of the 
        District of Columbia through visionary financial planning, 
        sound budgeting, accurate revenue forecasts, and careful 
        spending.
            (2) To ensure the most efficient and effective delivery of 
        services, including public safety services, by the District 
        government during a period of fiscal emergency.
            (3) To conduct necessary investigations and studies to 
        determine the fiscal status and 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 
                Federal Government;
                    (C) ensuring the appropriate and efficient delivery 
                of services; and
                    (D) modernizing its budget, accounting, personnel, 
                procurement, information technology, and management 
                systems to ensure the 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 relationship 
        between the District government and the Federal Government.
            (8) To provide for the review of the financial impact of 
        activities of the District government before such activities 
        are implemented or submitted for Congressional review.
    (c) Rules of Construction.--Nothing in this Act may be construed--
            (1) to relieve any obligations existing as of the date of 
        the enactment of this Act of the District government to repay 
        any individual or entity from whom the District has borrowed 
        funds, whether through the issuance of bonds or otherwise; or
            (2) to limit the authority of Congress to exercise ultimate 
        legislative authority over the District of Columbia pursuant to 
        Article I, section 8, clause 17 of the Constitution of the 
        United States.

          TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY

                                                                Title I

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 established 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 Governmental 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 
        members of the Authority as the Chair of the Authority.
            (4) Sense of congress regarding deadline for appointment.--
        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.
    (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 
        government (and is not the spouse, parent, child, or sibling of 
        an individual who provides goods and services to the District 
        government);
            (3) is not an officer or employee of the District 
        government; and
            (4) during the most recent taxable year prior to 
        appointment, paid personal income or business taxes to the 
        District government.
    (d) No Compensation for Service.--Members of the Authority shall 
serve without pay, but may receive 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 
        appointment 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, rules, and procedures shall be public documents, and 
        shall be submitted by the Authority upon adoption to the Mayor, 
        the Council, the President, and Congress.
            (2) Certain activities requiring approval of majority of 
        members.--Under the by-laws adopted pursuant to paragraph (1), 
        the Authority may conduct its operations under such procedures 
        as it considers appropriate, except that an affirmative vote of 
        a majority of the members 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 
                Financial Officer of the District of Columbia under 
                section 424 of the District of Columbia Self-Government 
                and Governmental 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 appropriate to 
        enable it to carry out its activities under this Act with the 
        greatest degree of independence practicable.

SEC. 102. EXECUTIVE DIRECTOR AND STAFF OF AUTHORITY.

    (a) Executive Director.--The Authority shall have an Executive 
Director who shall be appointed by the Chair with the consent of the 
Authority. The Executive Director shall be paid at a rate determined by 
the Authority, except that such rate may not exceed the rate of basic 
pay payable for level IV of the Executive Schedule.
    (b) Staff.--With the approval of the Chair, the Executive Director 
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 Civil Service Laws.--The Executive 
Director and staff of the Authority may be appointed without regard to 
the provisions of title 5, United States Code, governing appointments 
in the competitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates.
    (d) Staff of Federal Agencies.--Upon request of the Chair, the head 
of any Federal department or 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 carrying out its duties under 
this Act.
    (e) Preservation of Retirement and Certain Other Rights of Federal 
Employees Who Become Employed by the Authority.--
            (1) In general.--A Federal employee who, within 2 months 
        after separating from the Federal Government, becomes employed 
        by the Authority--
                    (A) may elect, for purposes of the retirement 
                system in which that individual last participated 
                before so separating, 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 Permitted.--An individual 
                who makes an election under paragraph (1)(A) shall 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 
        this 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 
        jurisdiction over any retirement system referred to in 
        paragraph (2)(B).

SEC. 103. POWERS OF AUTHORITY.

    (a) Hearings and Sessions.--The Authority may, for the purpose of 
carrying out this Act, hold hearings, sit and act at times and places, 
take testimony, and 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 sections 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 
        Authority 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 
        investigation 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.
            (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 requiring 
        that person to appear before the Authority to give testimony, 
        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 Authority 
        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 be 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 support services 
necessary for the Authority to carry out its responsibilities under 
this Act.
    (g) Authority To Enter Into Contracts.--The Executive Director may 
enter into such contracts as the Executive Director considers 
appropriate (subject to the approval of the Chair) to carry out the 
Authority's responsibilities under this Act.
    (h) Civil Actions To Enforce Powers.--The Authority may seek 
judicial enforcement of its authority to carry out its responsibilities 
under this Act.
    (i) Penalties.--
            (1) Acts prohibited.--Any officer or employee of the 
        District government who--
                    (A) takes any action in violation of any valid 
                order of the Authority or fails or refuses to take any 
                action required by any such order; or
                    (B) prepares, presents, or certifies any 
                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 immediately report 
        to the Board all pertinent facts together with a statement of 
        the action taken thereon.

SEC. 104. EXEMPTION FROM LIABILITY FOR CLAIMS.

    The Authority and its members may not be liable for any obligation 
of or claim against the District of Columbia resulting from actions 
taken to carry out this Act.

SEC. 105. TREATMENT OF ACTIONS ARISING FROM ACT.

    (a) Jurisdiction Established in District Court for District of 
Columbia.--Except as 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 provision 
        of law, any order of the United States District Court for the 
        District of Columbia which is issued pursuant to an action 
        brought under 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 declaratory 
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. 106. 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-
        Government 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.
            (3) Appropriations required.--No amount may be obligated 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 District 
        of Columbia Self-Government and Governmental Reorganization 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 Management 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 President--
            (1) a request for reprogramming of funds under subsection 
        (c)(1); and
            (2) a description of anticipated expenditures of the 
        Authority 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 appropriated 
        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 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 (secs. 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 authority.--
        Section 602(a) of the District of Columbia Self-Government and 
        Governmental Reorganization Act (sec. 1-233(a), D.C. 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 
        Management 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 Corporation 
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 Corporation Counsel of the District 
of Columbia.

                TITLE II--RESPONSIBILITIES OF AUTHORITY

Subtitle A--Establishment and Enforcement of Financial Plan and Budget 
                        for District Government

                                                   Title II, Subtitle A

SEC. 201. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR DISTRICT 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 
        estimates 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:
                    (A) In the case of the financial plan and budget 
                for fiscal year 1996, the expenditures of the District 
                government 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 
                District 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 statements 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 
                withdrawn 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 government.
            (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--
            (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 by 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 additional 
information it considers necessary and appropriate to carry out its 
duties under this subtitle.
    (c) Action Upon Approval of Mayor's Preliminary Financial 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 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.
                    (B) Deemed approval after 30 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 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 explanation 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 Reorganization Act, not later 
        than 30 days after receiving the financial plan and budget for 
        the fiscal year from the Mayor under paragraph (1)(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-Government and 
        Governmental Reorganization Act, as amended by subsection 
        (f)(2)), the Authority shall promptly review the financial plan 
        and budget. In conducting the review, the Authority 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 
                financial 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 District 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 paragraph (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 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 (A)(i) or a statement of 
                        disapproval under subparagraph (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 
                        paragraph (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 explanation 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 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 statement, 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 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 District of Columbia 
                        Self-Government 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 President, 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 Congress.
                            (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 section 446 of 
                        the District of Columbia Self-Government and 
                        Governmental 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 subparagraph (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 
                        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 Council, the President, and 
                        Congress with the notice certifying 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 explanation for its failure to 
                        provide the notice certifying approval or the 
                        statement of disapproval during the 15-day 
                        period described in such clause.
            (6) Deadline for transmission of financial plan and budget 
        by 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 certifying 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 determines 
        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 provide 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 disapproval 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 
                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 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 section 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 containing 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 Governmental 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 subparagraph (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 subparagraph (A), the Authority 
                        shall be deemed to have approved the revised 
                        financial plan and budget and to have provided 
                        the Mayor, the Council, the President, and 
                        Congress with the notice certifying 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 explanation 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.--
                Notwithstanding the first sentence of section 446 of 
                the District of Columbia Self-Government and 
                Governmental Reorganization 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) the financial plan and 
                budget recommended by the Authority 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 appropriations.--
        To the extent that a proposed revision to a financial plan and 
        budget adopted by the Council pursuant to this subsection 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 Requirements 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--
                    (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 
        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-Government and Governmental 
        Reorganization Act (sec. 1-227(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 Financial 
        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 Financial 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 
        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 Governmental 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 accompanying such Act required under section 
602(c)(3) of the District of Columbia Self-Government and Governmental 
Reorganization 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 Authority 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 financial plan and budget, the Authority 
                shall--
                            (i) notify the Council that of its finding;
                            (ii) provide the Council with an 
                        explanation of the reasons for its finding; and
                            (iii) to the extent the Authority considers 
                        appropriate, 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 
        Governmental 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 
        Authority, 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.
    (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 subparagraph.
            (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 government 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.
            (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 contract 
        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 affect 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 accordance with 
        paragraph (1).

SEC. 204. RESTRICTIONS ON BORROWING BY DISTRICT DURING CONTROL 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 permitted.--If 
        the Authority determines that the borrowing proposed 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-Government and 
        Governmental Reorganization Act, the exercise of authority to 
        obtain funds from the United States Treasury 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 fiscal year 
        1995.--
                    (A) No prior approval required during initial 
                period following appointment.--The District government 
                may requisition advances from the United States 
                Treasury under title VI of the District of Columbia 
                Revenue 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 
                fiscal 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 finds that--
                            (i) such borrowing is appropriate to meet 
                        the needs of the District government to reduce 
                        deficits and discharge 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 (beginning 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 conditions 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 inserting the following:

``SEC. 601. TRANSITIONAL PROVISION FOR SHORT-TERM ADVANCES.

    ``(a) Transitional Short-Term Advances Made Before October 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 
        government 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 
                Secretary--
                            ``(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 effectively unable to obtain 
                        credit in the public credit markets or 
                        elsewhere in sufficient amounts and on 
                        sufficiently reasonable terms to meet the 
                        District government'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 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, 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 Responsibility 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 subsection during the 30-day period which 
                        begins on the date of the first requisition 
                        made under this subsection may not exceed 33\1/
                        3\ percent of the fiscal year 1995 limit;
                            ``(ii) the total amount requisitioned under 
                        this subsection during the 60-day period which 
                        begins on the date of the first requisition 
                        made under this subsection may not exceed 66\2/
                        3\ percent of the fiscal year 1995 limit; and
                            ``(iii) the total amount requisitioned 
                        under this subsection 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 determines that 
                the amount designated in the Mayor's requisition 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 
                requirements 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 
                paragraph, the `fiscal year 1995 limit' means the 
                amount authorized 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 requisition for such advance.
                    ``(B) Latest permissible maturity date.--
                Notwithstanding 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 
        subsection 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 \1/8\ 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 Assistance Act of 1995) the Authority 
                delivers a letter requesting the Secretary to deposit 
                all advances made under this 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 Secretary'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 Management 
                                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 
                        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 satisfied, 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 
                        outstanding.--The sum of the anticipated 
                        principal and interest requirements of all 
                        advances made under this paragraph 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 
                paragraph, the `fiscal year 1996 limit' means the 
                amount authorized 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, 1996.
    ``(c) Transitional Short-Term Advances Made On 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';
                            ``(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 Secretary'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 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 satisfied, 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 
                        outstanding.--The sum of the anticipated 
                        principal and interest requirements of all 
                        advances made under this paragraph 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 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, 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 
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 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 
                submitted 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 Responsibility 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 compliance with 
                the financial plan and budget;
                    ``(D) both the receipt of funds from such advance 
                and the reimbursement of 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 effectively unable to obtain credit in the public 
        credit markets or elsewhere in sufficient amounts and on 
        sufficiently reasonable terms to meet the District government's 
        financing needs;
            ``(5) the Inspector General of the District of Columbia 
        certifies 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 
        Secretary 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 if--
                    ``(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 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 
                authorized under title V of the District of Columbia 
                Self-Government and Governmental Reorganization Act for 
                appropriation 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.--Notwithstanding 
        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 \1/8\ 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 Secretary into an escrow 
account held by the Authority.

``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 collected for 
        the support of the District government.
            ``(2) Exceptions for transitional advances.--
                    ``(A) Advances made before october 1, 1995.--
                            ``(i) Financial plan and budget approved.--
                        If the Authority approves a financial plan for 
                        the District government before October 1, 1995, 
                        the District government 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.--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).
    ``(b) Remedies for Failure To Reimburse.--If, on any date on which 
a reimbursement payment is due to the Treasury under the terms of any 
advance made under this title, the District government does not make 
such reimbursement payment, the Secretary shall take the actions listed 
in this subsection.
            ``(1) Withhold annual federal payment.--Notwithstanding 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 appropriated to the 
        District government for any fiscal year under title V of the 
        District of Columbia Self-Government and Governmental 
        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 payment, will be equal to 
        the amount needed to fully reimburse the Treasury for the 
        payment 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 
        reimbursement 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 
        Treasury 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
            ``(5) the term `Secretary' means the Secretary of the 
        Treasury.''.
    (d) Expenditure of Funds From Account in Accordance With Authority 
Instructions.--Any funds allocated by the Authority to the Mayor from 
the escrow account described in subsection (b)(1) may be 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 pursuant 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 payment to the District of 
        Columbia for the year authorized under title V of the District 
        of Columbia Self-Government and Governmental Reorganization 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 paragraph (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, expenditures, and cash flows with 
the most recent projections for these items.
    (b) Demand for Additional Information.--If the Authority 
determines, based on reports submitted by the Mayor under subsection 
(a), independent audits, or such other information as the Authority may 
obtain, that the revenues or expenditures of the District government 
during a control year are not consistent with the financial plan and 
budget for the year, the Authority shall require the Mayor to provide 
such additional information as the Authority determines to be necessary 
to explain the 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 Treasury, and Congress that the District government is at 
        variance with the financial plan and budget unless--
                    (A)(i) the additional information provides an 
                explanation for the inconsistency which the Authority 
                finds reasonable and appropriate, or
                    (ii) the District government adopts or implements 
                remedial action (including revising the financial plan 
                and budget pursuant to section 202(e)) to correct the 
                inconsistency which the Authority finds reasonable and 
                appropriate, taking into account the terms of the 
                financial plan and budget; 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 
                District 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 government 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 (including revising the financial plan 
                and budget pursuant to section 202(e)) to correct the 
                inconsistency which the Authority finds reasonable and 
                appropriate, taking into account the terms of the 
                financial plan and budget.
    (d) Effect of Certification.--If the Authority certifies to the 
Secretary of the Treasury that a variance exists--
            (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 government; 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 making 
        entitlement or benefit payments to individuals), in such 
        amounts and under such other conditions as the Authority may 
        specify.

SEC. 207. RECOMMENDATIONS ON FINANCIAL STABILITY AND MANAGEMENT 
              RESPONSIBILITY.

    (a) In General.--The Authority may at any time submit 
recommendations to the Mayor, the Council, the President, and Congress 
on actions the District 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 to--
            (1) the management of the District government's financial 
        affairs, including cash forecasting, information technology, 
        placing controls on expenditures for personnel, reducing 
        benefit costs, reforming procurement practices, and placing 
        other controls 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 employees;
            (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 
        training and performance of management and supervisory 
        personnel.
    (b) Response to Recommendations for Actions Within Authority of 
District Government.--
            (1) In general.--In the case of any 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 recommendations.
            (2) Implementation plan required for adopted 
        recommendations.--If the Mayor or the Council (whichever is 
        applicable) notifies the Authority and Congress under paragraph 
        (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 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 
        paragraph (1) that the District government will not adopt any 
        recommendation submitted under subsection (a) which the 
        District 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 Congress 
        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 Committee 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 Congress 
        under section 446 of the District of Columbia Self-Government 
        and Governmental Reorganization Act (taking into account any 
        items or provisions disapproved by the Mayor or disapproved by 
        the Mayor and reenacted by the Council under section 404(f) of 
        the District of Columbia Self-Government 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 
        Governmental Reorganization Act, and shall submit any 
        recommendations for modifications 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 
        recommendations of the Authority submitted under paragraph (1), 
        the Council (in consultation with the Mayor) shall promptly 
        adopt a revised budget for the fiscal year (in this section 
        referred to as the ``transition budget''), and shall submit the 
        transition budget to the Authority, the President, and 
        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 Governmental 
        Reorganization Act, as amended by section 202(f)(2)), and shall 
        include in the report such recommendations for revisions to the 
        transition budget as the Authority considers appropriate to 
        promote the financial stability of the District government 
        during the fiscal year.
    (b) Financial Plan and Budget.--
            (1) Deadline for submission.--For purposes of section 202, 
        the Mayor shall submit the financial plan and budget for fiscal 
        year 1996 as soon as practicable after the date of the 
        enactment of this Act (in accordance with guidelines 
        established by the Authority).
            (2) Adoption by council.--In accordance with the procedures 
        applicable under section 202 (including procedures providing 
        for review by the Authority)--
                    (A) the Council shall adopt the financial plan and 
                budget for the fiscal year (including the supplemental 
                budget incorporated in the 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 
                Council (and, in the case of a financial plan and 
                budget disapproved 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 supplemental budget request for fiscal 
                year 1996 (in accordance with section 446 of the 
                District of Columbia Self-Government and Governmental 
                Reorganization Act).
            (3) Transition budget as temporary financial plan and 
        budget.--Until the approval of the financial plan and budget 
        for fiscal year 1996 by the Authority under this subsection, 
        the transition budget established under subsection (a) (as 
        enacted by Congress) shall serve as the financial plan and 
        budget adopted under this subtitle for purposes of this Act 
        (and any provision of law amended by this Act) for fiscal year 
        1996.
    (c) Restrictions on Advances From Treasury.--
            (1) Monthly determination of progress toward financial 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 
        President and Congress with a certification if the Authority 
        finds that the District government is not making appropriate 
        progress in developing the financial plan and budget for a 
        month, and shall notify the President and Congress that the 
        certification is no longer in effect if the Authority finds 
        that the District government is making such progress after the 
        certification is provided.
            (3) Prohibition against allocation of advances if 
        certification in effect.--At any time during which a 
        certification under paragraph (2) is in effect, Authority may 
        not allocate any funds obtained through advances to the Mayor 
        under title VI of the District of Columbia Revenue Act of 1939 
        from the escrow account in which the funds are held.

SEC. 209. CONTROL PERIODS DESCRIBED.

    (a) Initiation.--For purposes of this Act, a ``control period'' is 
initiated upon the occurrence of any of the following events (as 
determined by the Authority based upon information obtained through the 
Mayor, the Inspector General of the District of Columbia, or such other 
sources as the Authority considers appropriate):
            (1) The requisitioning by the Mayor of 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 pursuant to such 
        authority.
            (2) The failure of the District government to provide 
        sufficient revenue to a debt service reserve fund of the 
        Authority under subtitle B.
            (3) The default by the District government with respect to 
        any loans, bonds, notes, or other form of borrowing.
            (4) The failure of the District government to meet its 
        payroll for any pay period.
            (5) The existence of a cash deficit of the 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 comprehensive annual 
financial report for the District of Columbia 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

                                                   Title II, Subtitle B

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 independent 
        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 Government.--The 
Authority shall require the Mayor--
            (1) to pledge or direct taxes or other revenues otherwise 
        payable to the District government (which are not otherwise 
        pledged or committed), including payments from the Federal 
        Government, to the Authority for purposes of securing repayment 
        of bonds, notes, or other obligations issued pursuant to this 
        subtitle; and
            (2) to transfer the proceeds of any tax levied for purposes 
        of securing such bonds, notes, or other obligations to the 
        Authority immediately upon collection.

SEC. 213. ESTABLISHMENT OF DEBT SERVICE RESERVE FUND.

    (a) In General.--As a condition for the issuance of bonds, notes, 
or other obligations pursuant to this 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 
        established 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 
                established for such fund in the resolution of the 
                Authority creating such fund, except for withdrawals 
                for the purpose of making payments when due of 
                principal, interest, redemption premiums and sinking 
                fund payments, if any, with respect to such bonds for 
                the payment of which other moneys of the Authority are 
                not available, and for the purpose of funding the 
                operations of the Authority for a fiscal year (in such 
                amounts and under such conditions as are established 
                under the budget of the Authority for the fiscal year 
                under section 106(a)).
                    (B) Use of excess funds.--Nothing in subparagraph 
                (A) may be construed to prohibit the Authority from 
                transferring any income or interest earned by, or 
                increments to, any debt service reserve fund due to the 
                investment thereof to other funds or accounts of the 
                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 purposes 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 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 
requirement established by the Authority at the time of the 
establishment of the fund.
    (b) Amounts Included in Aggregate Limit on District Borrowing.--Any 
amounts provided to the District government through the issuance of 
bonds, notes, or other obligations to borrow funds pursuant to this 
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 Governmental 
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

                                                   Title II, Subtitle C

SEC. 221. DUTIES OF AUTHORITY DURING YEAR OTHER THAN CONTROL YEAR.

    (a) In General.--During the period beginning upon the termination 
of a control period pursuant to section 209(b) and ending with the 
suspension of its activities pursuant to section 107(a), the Authority 
shall conduct the following activities:
            (1) The Authority shall review the budgets of the District 
        government adopted by the Council under section 446 of the 
        District of Columbia Self-Government and Governmental 
        Reorganization Act for each fiscal year occurring during such 
        period.
            (2) At such time prior to the enactment of such budget by 
        Congress as the Authority considers appropriate, the Authority 
        shall prepare a report analyzing the budget and submit the 
        report to the Mayor, the Council, the President, and Congress.
            (3) The Authority shall monitor the financial status of the 
        District government and shall submit reports to the Mayor, the 
        Council, the President, and Congress if the Authority 
        determines that a risk exists that a control period may be 
        initiated 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-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 efficiency, 
including--
            (1) assisting the District government in avoiding defaults, 
        eliminating and liquidating deficits, maintaining sound 
        budgetary 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 
        transmission 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 submitting copies of any 
reports regarding revenues, expenditures, budgets, costs, plans, 
operations, estimates, and other financial or budgetary matters of the 
District government.

SEC. 224. REPORTS AND COMMENTS.

    (a) Annual Reports to Congress.--Not later than 30 days after the 
last day of each fiscal year which is a control year, the Authority 
shall submit a report to Congress describing--
            (1) the progress made by the District government in meeting 
        the objectives of this Act during the fiscal year;
            (2) the assistance provided by the Authority to the 
        District government in meeting the purposes of this Act for the 
        fiscal year; and
            (3) any other activities of the Authority during the fiscal 
        year.
    (b) Review and Analysis of Performance and Financial Accountability 
Reports.--
            (1) In general.--The Authority shall review each report 
        prepared and submitted by the Mayor under section 456 of the 
        District of Columbia Self-Government and Governmental 
        Reorganization Act (as added by section 3(a) of the Federal 
        Payment Reauthorization Act of 1994), and shall submit a 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 
        Payment Reauthorization Act of 1994, is amended by adding at 
        the end the following new subsection:
    ``(e) Submission of Reports to District of Columbia Financial 
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 Responsibility and Management Assistance 
Act of 1995, the Mayor shall submit the report to the District of 
Columbia Financial Responsibility 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 Government.--At any 
time during a control year, the Authority may submit a report to 
Congress describing any action taken by the District government (or any 
failure to act by the District government) which the Authority 
determines will adversely affect the District government's ability to 
comply with an approved financial plan and 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

                                                              Title III

SEC. 301. OTHER DISTRICT BUDGET REFORMS.

    (a) Inclusion of All Funds of District in Budget of District 
Government.--
            (1) In general.--Section 103 of the District of Columbia 
        Self-Government and Governmental Reorganization Act (sec. 1-
        202, D.C. Code) is amended--
                    (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 payment 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, 
        enterprise or other revolving funds, and funds realized from 
        borrowing.''; and
                    (C) by amending paragraph (15) to read as follows:
            ``(15) The term `budget' means the entire request for 
        appropriations 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.''.
            (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, 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 reprogramming and the Council 
        approves the request, but only if any additional expenditures 
        provided under such request for an activity are offset by 
        reductions in 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-Government 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 
        Self-Government and Governmental Reorganization Act (sec. 1-
        233(c), D.C. Code) is amended by adding at the end the 
        following new paragraph:
    ``(3) The Council shall submit with each Act 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 Annual Federal Payment.--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 Reauthorization 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 DISTRICT OF 
              COLUMBIA.

    (a) In General.--Part B of title IV of the District of Columbia 
Self-Government 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 
        Columbia (hereafter referred to as the `Office'), which shall 
        be headed by the Chief Financial Officer of the District of 
        Columbia (hereafter referred to as the `Chief Financial 
        Officer').
            ``(2) Office of the treasurer.--The Office shall include 
        the Office of the Treasurer, which shall be headed by the 
        Treasurer of the District of 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 
        subsection (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 follows:
                            ``(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 recommendations for the appointment.
            ``(2) Removal.--
                    ``(A) Control year.--During a control year, the 
                Chief Financial Officer may be removed for cause by the 
                Authority or by the Mayor with the approval of the 
                Authority.
                    ``(B) Other years.--During a year other than a 
                control year, the Chief Financial Officer shall serve 
                at the pleasure of the Mayor, except 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 
        Assistance Act of 1995.
            ``(2) Preparing the budgets of the District of Columbia for 
        the year for the use of the Mayor for purposes of part D.
            ``(3) Assuring that all financial information 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 
        Officer's authority, to ensure that budget, accounting and 
        personnel control systems and structures are synchronized for 
        budgeting and control purposes on a continuing basis.
            ``(5) With the approval of the Authority, preparing and 
        submitting to the Mayor and the Council--
                    ``(A) annual estimates of all revenues of the 
                District of Columbia (without regard to the source of 
                such revenues), including proposed revenues, which 
                shall be binding on the Mayor and the Council for 
                purposes of preparing and submitting the budget of the 
                District 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 
                District of Columbia during the year.
            ``(6) Supervising and assuming responsibility for financial 
        transactions to ensure adequate control of revenues and 
        resources, and to ensure that appropriations are not exceeded.
            ``(7) Maintaining systems of accounting and internal 
        control designed to provide--
                    ``(A) full disclosure of the financial impact of 
                the activities of the District government;
                    ``(B) adequate financial information needed by the 
                District government for management purposes;
                    ``(C) effective control over, and accountability 
                for, all funds, property, and other assets of the 
                District of Columbia; and
                    ``(D) reliable accounting results to serve as the 
                basis for preparing and supporting agency budget 
                requests and controlling the execution of the budget.
            ``(8) Submitting to the Council a financial statement of 
        the District government, containing such details and at such 
        times as the Council may specify.
            ``(9) Supervising and assuming responsibility for the 
        assessment of all property subject to assessment and special 
        assessments 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 
        levying 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 
        depositing 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 safekeeping of all bonds and notes of the District 
        government and the receipt and delivery of District government 
        bonds and notes for transfer, registration, or exchange.
            ``(13) Apportioning the total of all 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 available for an indefinite period and all 
authorizations to create obligations by contract in advance of 
appropriations) apportioning 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, 
        payrolls, claims, demands, or charges.
            ``(17) In coordination with the Inspector General of the 
        District of Columbia, performing internal audits of accounts 
        and operations and records of the District government, 
        including 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.
    ``(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 
        appropriate and consistent with efficiency).
            ``(2) Administering all borrowing programs of the District 
        government for the issuance of long-term and short-term 
        indebtedness.
            ``(3) Administering the cash management program of the 
        District government, including the investment of surplus funds 
        in governmental and non-governmental interest-bearing 
        securities and accounts.
            ``(4) Administering the centralized District government 
        payroll 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.
            ``(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-
        Government and Governmental Reorganization Act.
    ``(e) Functions of Treasurer.--At all times, the Treasurer shall 
have the following duties:
            ``(1) Assisting the Chief Financial Officer in reporting 
        revenues 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 
                government for the preceding quarter or year, including 
                receipts, disbursements, net changes in cash inclusive 
                of the beginning 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.
                    ``(D) Monthly reports reflecting a detailed summary 
                analysis of all District of Columbia government 
                investments, including, but not limited to--
                            ``(i) the total of long-term and short-term 
                        investments;
                            ``(ii) a detailed summary analysis of 
                        investments by type and amount, including 
                        purchases, sales (maturities), 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 
                                District of Columbia government yield 
                                objectives; and
                                    ``(III) comparisons of estimated 
                                dollar return against actual dollar 
                                yield.
                    ``(E) Monthly reports reflecting a detailed summary 
                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-Government 
and Governmental Reorganization Act (sec. 1-242(6), D.C. Code) is 
amended by adding at the end the following: ``Nothing in the previous 
sentence may be construed to permit the Mayor 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 Governmental 
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 GENERAL 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. 1-1182.8(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 Financial Responsibility and 
Management Assistance Authority in a control 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 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.
    ``(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 demonstrated 
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.
    ``(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 payment for the 
        District of Columbia authorized under title V of the District 
        of Columbia Self-Government and Governmental Reorganization 
        Act, the Mayor shall deposit a portion of the payment (equal to 
        the estimate of necessary appropriations described in 
        subparagraph (A)) into a dedicated fund within the government 
        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 
        Columbia Procurement Practices Act of 1985 (sec. 1-
        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 
                subparagraphs:
            ``(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 
        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-Government and Governmental Reorganization Act; 
        and
            ``(I) Not later than 30 days before the beginning of each 
        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).''.
            (2) Limitation on contract with outside auditor.--Section 
        208(a) of such Act (sec. 1-1182.8(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 attorney 
        general.--Section 208 of such Act (sec. 1-1182.8, D.C. Code) is 
        amended by adding at the end the following new subsection:
    ``(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 reasonable 
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. 1-1182.8(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. 1-1182.8(c), D.C. Code), as amended by 
        subsection (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. 1-1182.8(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,''.
            (5) Making reports publicly available.--Section 208(d) of 
        such Act (sec. 1-1182.8(d), D.C. Code) is amended by adding at 
        the end the following new paragraph:
    ``(4) The Inspector General 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. 1-1182.8(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 
        General 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, 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 approval.--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 of the Council introduces a resolution approving 
                or disapproving 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 Governmental Reorganization Act is amended 
by amending the item relating to section 451 to read as follows:

        ``Sec. 451. 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 
        Columbia; any independent agency of the District of Columbia 
        established 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 
        District 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.
            (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.

            Passed the House of Representatives April 3, 1995.

            Attest:

                                                                 Clerk.

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