[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1345 Enrolled Bill (ENR)]
H.R.1345
One Hundred Fourth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the fourth day of January, one thousand nine hundred and ninety-five
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 businesses out of the District of
Columbia and the failure of new residents and businesses to move to
the District of Columbia.
(4) The fiscal and management problems in the District of
Columbia government are pervasive across all segments of the
government.
(5) A comprehensive approach to fiscal, management, and
structural problems must be undertaken which exempts no part of the
District government and which preserves home rule for the citizens
of the District of Columbia.
(6) The current deficit of the District of Columbia must be
resolved over a multi-year period, since it cannot be 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 affectthe 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;
(2) to limit the authority of Congress to exercise ultimate
legislative authority over the District of Columbia pursuant to
Article I, section 8, clause 17 of the Constitution of the United
States;
(3) to amend, supersede, or alter the provisions of title 11 of
the District of Columbia Code, or sections 431 through 434, 445,
and 602(a)(4) of the District of Columbia Self-Government and
Governmental Reorganization Act (pertaining to the organization,
powers, and jurisdiction of the District of Columbia courts); or
(4) to authorize the application of section 103(e) or 303(b)(3)
of this Act (relating to issuance of subpoenas) to judicial
officers or employees of the District of Columbia courts.
TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY
SEC. 101. DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT
ASSISTANCE AUTHORITY.
(a) Establishment.--Pursuant to Article I, section 8, clause 17 of
the Constitution of the United States, there is hereby 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) maintains a primary residence in the District of Columbia
or has a primary place of business in the District of Columbia.
(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 Employment and Procurement Laws.--
(1) 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 paid without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of that title relating
to classification and General Schedule pay rates.
(2) District employment and procurement laws.--The Executive
Director and staff of the Authority may be appointed and paid
without regard to the provisions of the District of Columbia Code
governing appointments and salaries. The provisions of the District
of Columbia Code governing procurement shall not apply to the
Authority.
(d) Staff of Federal Agencies.--Upon request of the Chair, the head
of any Federal department or agency may detail, on a reimbursable or
non-reimbursable basis, any of the personnel of that department or
agency to the Authority to assist it in 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 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
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 forthe 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 planand 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
Districtof 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 Actpassed 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 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 effect of
the proposed reprogramming on the financial plan and budget for the
fiscal year and submit its analysis to the Council not later than
15 days after receiving the request.
(2) No action permitted until analysis received.--The Council
may not adopt a reprogramming during a fiscal year which is a
control year, and no officer or employee of the District government
may carry out any reprogramming during such a year, until the
Authority has provided the Council with an analysis of a request
for the reprogramming in 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 ColumbiaRevenue 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
andbudget 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
tomaking 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 the Treasury for such advance are consistent
with the financial plan and budget for the year; and
``(E) such advance will not adversely affect the financial
stability of the District government;
``(4) the Authority certifies to the Secretary, at the time of
the Mayor's requisition for an advance, that the District
government is 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 duringa 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 orthe 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, the Authority may not allocate any
funds obtained through advances to the Mayor under title VI of the
District of Columbia Revenue Act of 1939 from the escrow account in
which the funds are held.
SEC. 209. CONTROL PERIODS DESCRIBED.
(a) Initiation.--For purposes of this Act, a ``control period'' is
initiated upon the occurrence of any of the following events (as
determined by the Authority based upon information obtained through the
Mayor, the Inspector General of the District of 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, ascontained 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
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
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
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, exceptthat 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
theyear, 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 byan 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 anamount 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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.