[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.